TAWANA RESOURCES NL - Mineral Resource Update for Bald Hill Lithium and Tantalum ProjectRelease Date: 11/10/2017 09:06:00 Code(s): TAW PDF(s):
Mineral Resource Update for Bald Hill Lithium and Tantalum Project
Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
JSE ISIN: AU0000TAWDA9
Share code on the Australian Securities Exchange Limited: TAW
ASX ISIN: AU000000TAW7
(“the Company” or “Tawana”)
Mineral Resource Update for Bald Hill Lithium and Tantalum Project
PLEASE NOTE: ALL GRAPHICSHAVE BEEN REMOVED FOR SENS PURPOSES. PLEASE REFER TO TAWANA
WEBSITE FOR THE COMPLETE ANNOUNCEMENT.
Tawana Resources NL (Tawana) (ASX:TAW) is pleased to announce an updated Indicated and Inferred
lithium Mineral Resource for the Bald Hill Lithium and Tantalum Project, located in the Eastern Goldfields
region of Western Australia.
- Total Inferred and Indicated lithium and tantalum resources above 0.5% Li2O or 200pm Ta2O5 total
25.3 million tonnes (Mt), and comprises:
o High-grade lithium resources of 18.9Mt at 1.18% Li2O and 149ppm Ta205 at a 0.5% Li20
o Additional tantalum resources of 6.4Mt at 330ppm Ta2O5 at a 200ppm Ta2O5 cut-off.
- The Resource update represents a 47% increase in total contained lithium.
- The 66% increase in contained lithium within Indicated resources is expected to result in a Reserve
upgrade later in the year.
- The updated Resource covers only 25% of the known southern swarm of lithium pegmatites.
- The lithium processing facility is currently in construction, first lithium shipment targeted for Q1
Tawana Resources Managing Director Mark Calderwood stated: “The 25Mt of combined high-grade lithium
and tantalum resources represents a solid uplift from about five months of additional drilling. The additional
Indicated Resources are likely to result in additional Reserves based on scoping level pit optimisations
completed in June to focus the resource conversion drilling. Infill drilling is continuing and we expect to
deliver another upgrade to Indicated Resources later this year.
Due to the fact the resource remains open in several areas I look forward to further step out drilling planned
for the new year. Additionally, the recently discovered high grade lithium and tantalum pegmatite located
below the starter pit (refer announcement dated 2 August 2017), has not been included in the resource due
to insufficient drilling.”
Mineral Resource Estimate
CSA Global Pty Ltd (“CSA Global”) was commissioned by Tawana to update the lithium and tantalum Mineral
Resource estimate for the Bald Hill Project.
The Bald Hill Pegmatite Mineral Resource comprises one large, main, sub horizontal pegmatite body,
striking north-south, with a strike length of 1,230 metres, and a width at its widest point of 1,080 metres.
This main body is surrounded by several smaller discrete pegmatite bodies, sub-parallel to the main, which
result in a total strike length for the whole resource of 2,045 metres, and a total width of 1,800 metres. The
Mineral Resource has a total vertical depth of 245 metres, beginning 20 metres below the natural surface
and plunging gently to the south along its entire strike length.
The Mineral Resource has been classified as Indicated and Inferred in accordance with the JORC Code, 2012
Edition on a qualitative basis; taking into consideration numerous factors including drill holes spacing,
estimation quality statistics (kriging slope of regression), number of informing samples, average distance to
informing samples in comparison to the semi-variogram model ranges, and overall coherence and
continuity of the modelled mineralisation wireframes. All factors that have been considered have been
included in Section 1 and Section 3 of Appendix A.
Table 1 | Bald Hill Project, Resources above 0.5% Li2O cut-off
Grade Contained Grade Contained
Li2O Li2O Ta2O5 Ta205
% Tonnes ppm (,000) Lbs
Indicated 8.0 1.18 95,000 190 2,800
Inferred 10.9 1.18 128,300 118 2,300
Total 18.9 1.18 223,300 149 5,100
Table 2 | Bald Hill Project, Resources above 0.5% Li2O and 200ppm Ta2O5 cut-offs
Resource Tonnes Grade Contained Grade Contained
Category (Mt) Li2O Li2O Ta2O5 Ta205
% Tonnes ppm (,000) Lbs
Indicated 2.5 1.20 33,300 315 1,900
Inferred 1.2 1.18 14,500 296 800
Total 4.0 1.20 47,800 309 2,700
1) The tantalum resources form part of the lithium/tantalum resources reported in Table 1.
Table 3 | Bald Hill Project, Resources below 0.5% Li2O and above 200ppm Ta2O5 cut-offs
Resource Tonnes Grade Contained
Category (Mt) Ta2O5 Ta205
ppm (,000) Lbs
Indicated 3.9 342 1,700
Inferred 2.5 313 2,950
Total 6.4 330 4,650
1) The tantalum resources reported in Table 3 are additional to those reported in Tables 1 and 2.
About the Bald Hill Project
The Bald Hill Lithium and Tantalum Mine (Bald Hill Mine or the Project) is owned by Singapore Exchange-
listed Alliance Mineral Assets Limited (AMAL), with ASX-listed Tawana Resources NL (Tawana) holding 50%
of the lithium rights. The project is subject to a 50% earn-in to existing infrastructure and tantalum rights
by Tawana through the expenditure of A$12.5m on development costs. Following the 50% earn-in by
Tawana, a new Joint Venture will become effective and the Work Program and Budget for remaining project
expenditure in excess of the A$12.5m will be subject to Joint Venture approval.
A Pre-Feasibility Study (PFS) finalised in July 2017 confirmed the technical and financial viability of a low
capital cost 1.2Mtpa lithium Dense Media Separation circuit (DMS) adjacent to the existing tantalum
processing facility (TPF) at Bald Hill.
The first shipment of lithium concentrate is scheduled for March 2018.
EPC Group Primero mobilised to the Bald Hill Mine in July 2017 and construction work commenced, with
foundations completed and steel work being erected.
Each of Tawana and AMAL executed an offtake agreement in April 2017 for the supply of lithium
concentrate from Bald Hill over a five-year term with pricing for 2018 and 2019 of US$880/t (FOB
Esperance) for 6% Li2O. The prepayments from the aforesaid offtake agreement will be used towards the
capital costs of the Project. AMAL had on 2 October 2017 entered into a Binding Term Sheet to inter alia,
vary certain terms of its offtake agreement entered into in April 2017.
The Project is located 50km south east of Kambalda in the Eastern Goldfields of Western Australia. It is
located approximately 75km south east of the Mt Marion Lithium project.
The Project comprises four mining leases, one mining lease application, twelve exploration licenses, eight
prospecting licenses and one general purpose lease totalling 790.1km.
Prior Indicated and Inferred lithium Mineral Resources were 12.8 million tonnes at 1.18% Li2O, and 158ppm
Ta205 at a 0.5% Li2O cut-off for the Project and Reserves currently stand at 4.3Mt at 1.18% Li2O and 208ppm
Ta205, representing a 94% conversion of the June 2017 Indicated Resources above 0.5% Li2O cut-off1. The
Project remains significantly underexplored as highlighted by significant exploration drill results post the
June resource statement.
ASX Listing Rule 5.8.1 Compliance
Geology and Geological Interpretation
The Bald Hill area is underlain by generally north-striking, steeply dipping Archaean metasediments (schists
and greywackes) and granitoids. Felsic porphyries and pegmatite sheets and veins have intruded the
Archaean rocks. Generally, the pegmatites cross cut the regional foliation, occurring as gently dipping
sheets and as steeply dipping veins.
The pegmatites vary in width and are generally comprised quartz-albite- muscovite-spodumene in varying
amounts. Late-stage albitisation in the central part of the main outcrop area has resulted in fine- grained,
banded, sugary pegmatites with visible fine-grained, disseminated tantalite. A thin hornfels characterised
by needle hornblende crystals is often observed in adjacent country rocks to the pegmatite intrusives.
Tantalite generally occurs as fine disseminated crystals commonly associated with fine-grained albite zones,
or as coarse crystals associated with cleavelandite.
The geological model developed is based on lithological logging of pegmatites within a metasedimentary
host, with occasional hypabyssal intrusions of dioritic composition.
The pegmatites on which this Mineral Resource was defined were domained internally on the basis of a
7,500ppm Li2O cut-off, which itself was determined from exploratory data analysis as a point of inflection
within the Li2O grade distribution. This resulted in a high-grade core of Li2O mineralisation surrounded by
lower grade pegmatite, and is an interpretation supported by the petrogenetic model for the formation of
Li2O bearing pegmatites.
Drilling supporting the Mineral Resource is predominately Reverse Circulation (RC) with minor diamond
core drilling (DD) and RC with diamond core tails (RCD). The Bald Hill deposit database includes 902 drill
holes for 92,217.49m of drilling, made up of 873 RC holes (87,193.2m), 17 RCD holes (3,773.85m) and 12
DD holes (1,250.44m). The Mineral Resource is based on assay data from 475 RC holes, 17 RCD holes and
12 DD holes.
All historical holes drilled by Haddington Resources Limited (Haddington) were removed from the estimated
as they were only assayed for tantalum. Some recent drilling undertaken by Tawana has been excluded
where collar and/or down hole surveys have not been completed, and where final assay results have not
Drilling has been angled to achieve the most representative intersections through mineralisation. All
diamond drill holes and approx. 98% of RC drill holes are angled. The remaining holes have been drilled
vertically. Drilling has been conducted on a 40m by 40m grid extending to 80m by 80m on the peripheries
of the deposit, with a 140m by 80m area in the northern portion of the deposit drilled out at 20m by 20m.
RC cuttings were continuously sampled at 1m intervals from the collar to the end of each drill hole using a
riffle or cone splitter on-site to produce a subsample less than 5kg.
DD core was typically continuously sampled at 2m intervals from the collar to the end of hole. Where
required by changes in lithology, mineralisation or alteration, core samples may be shorter or longer than
the typical 2m. Core was cut into half with one half sent for analysis and the other half stored in the core
library at the project site.
Sample Analysis Method
Drill samples were jaw crushed and riffle split to 2-2.5kg for pulverizing to 80% passing 75 microns. Prepared
samples are fused with sodium peroxide and digested in dilute hydrochloric acid. The resultant solution is
analysed by ICP, by Nagrom Laboratory in Perth.
The assay technique is considered to be robust as the method used offers total dissolution of the sample
and is useful for mineral matrices that may resist acid digestions.
Standards and duplicates were submitted in varying frequency throughout the exploration campaign and
internal laboratory standards, duplicates and replicates are used for verification.
The Bald Hill MRE uses a Surpac block model dimensions with parent cells of 10m by 10m by 5m (XYZ) sub-
celled to 2.5 by 2.5 by 1.25m for resolution of volumes at lithological boundaries. This compares to an
average drillhole spacing of 20m within the more densely informed areas of the deposit. Kriging
Neighbourhood Analysis (KNA) was conducted within the SupervisorTM software package to test a variety
of block sizes across the deposit.
Samples were composited to 1m intervals based on assessment of the raw drill hole sample intervals.
Various high grade cuts were used for both Li2O and Ta2O5 based on statistical review of each object.
Li2O and Ta2O5 grades for the main mineralised zones were interpolated using ordinary kriging. High and
low grade domains were estimated independently with hard boundaries assumed between domains. A two
search pass strategy was employed, with successive searches using more relaxed parameters for selection
of input composite data, and a greater search radius. Blocks not informed for any given variable after two
passes were assigned the Sichel Mean of the input data from that particular domain.
In situ bulk densities for the Bald Hill Mineral Resource have been assigned on a lithological basis for both
mineralisation and waste, based 69 cores samples and values taken from those used in similar deposits and
lithologies. Fixed density values assigned into the block model included waste back-fill to 1.8t/m3,
transitional pegmatite to 2.5t/m3, fresh metasediment waste to 2.74t/m3, fresh diorite dykes to 2.8t/m3
and fresh pegmatite to 2.65t/m3. Additional bulk density analysis is being undertaken utilising DD core.
The resource model was validated both visually and statistically prior to final reporting.
The Bald Hill MRE pegmatite wireframes were generated using logged pegmatite lithologies and a minimum
down hole width of 3m, while the internal ‘high grade’ lithium wireframes were generated using a nominal
7,500ppm cut-off grade and a minimum down hole width of 3m determined from exploratory data analysis
as a point of inflection within the Li2O grade distribution.
The Mineral Resource is reported above a 0.5% Li2O cut-off (Table 1), which approximates cut-off grade to
be applied to run-of-mine ore as determined from the preliminary feasibility study.
Mineral Resource Classification
The Mineral Resource has been classified in the Indicated and Inferred categories, taking into consideration
numerous factors including drillholes spacing, estimation quality statistics (kriging slope of regression),
number of informing samples, average distance to informing samples in comparison to the semivariogram
model ranges, and overall coherence and continuity of the modelled mineralisation wireframes.
Eventual Economic Extraction
The Bald Hill pegmatite deposit has previously been mined for minerals of tantalum pentoxide (Ta2O5),
however no account for lithium minerals (Li2O) was undertaken. A positive pre-feasibility study undertaken
by Tawana reported that the deposit could be mined economically for lithium via open pit methods. The
lithium plant is currently in construction, with first production expected in the first quarter of 2018.
Competent Persons Statement
The information in this news release that relates to Exploration Results is based on and fairly represents information and supporting
documentation compiled by Mr Mark Calderwood and Mr Gareth Reynolds, both employees of Tawana Resources NL (“Tawana”). Mr
Calderwood is a member of The Australasian Institute of Mining and Metallurgy and Mr Reynolds is a member of the Australian Institute
of Geoscientists. Mr Calderwood and Mr Reynolds have sufficient experience relevant to the style of mineralisation under consideration
and to the activity which they are 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”. Mr Calderwood and Mr Reynolds consent to the inclusion in
this report of the matters based on their information in the form and context in which it appears.
Mr Calderwood is a significant shareholder in Tawana. Mr Calderwood and Tawana do not consider these to constitute a potential conflict
of interest to his role as Competent Person. Mr Calderwood is not aware of any other relationship with Tawana which could constitute a
potential for a conflict of interest.
Mr Reynolds is an employee of Tawana. Mr Reynolds is not aware of any other relationship with Tawana which could constitute a potential
for a conflict of interest.
The information in this news release that relates to Resource Estimates (excluding prior estimates) is based on and fairly represents
information and supporting documentation compiled by Dr Matthew Cobb and Mr Ralph Porter, both employees of CSA Global Pty Ltd.
Dr Cobb is a member of both The Australasian Institute of Mining and Metallurgy and Australian Institute of Geoscientists, and Mr Porter
is a member of the Australian Institute of Geoscientists. Both Dr Cobb and Mr Porter have sufficient experience relevant to the style of
mineralisation under consideration and to the activity which they are 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”. Dr Cobb and Mr Porter
consent to the inclusion in this report of the matters based on their information in the form and context in which it appears.
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 as representation or warranty,
express or implied, of Tawana Resources NL. 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 Tawana Resources NL nor 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 Tawana Resources NL, 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 announcement or
for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this announcement.
1. Refer to ASX announcement on 14 June 2017.
11 October 2017
PricewaterhouseCoopers Corporate Finance (Pty) Limited
Section 1 Sampling Techniques and Data
Criteria JORC Code Explanation Commentary
Sampling Nature and quality of sampling (e.g. cut channels, Drilling consists of ~99% reverse circulation (RC), RC with
techniques random chips, or specific specialised industry diamond core tails (RCD) and diamond drilling (DD) for a
standard measurement tools appropriate to the total 902 holes for 92,217.49m of drilling in the Bald Hill
minerals under investigation, such as down hole project database. The Bald Hill Mineral Resource is based
gamma sondes, or handheld XRF instruments, on assay data from 475 RC holes, 17 RCD holes and 12 DD
etc.). These examples should not be taken as holes.
limiting the broad meaning of sampling.
RC cuttings were continuously sampled at 1m intervals
through all pegmatite intercepts including 2m of waste
above and below each intercept.
DD core is typically continuously sampled at 2m intervals
through pegmatite intercepts. Where required by changes
in lithology, mineralization, or alteration, core samples may
be shorter or longer than the typical 2m.
Include reference to measures taken to ensure The majority of drill hole collars are accurately surveyed
sample representivity and the appropriate using RTK DGPS equipment.
calibration of any measurement tools or systems
Drill samples are logged for lithology, weathering, structure
(diamond core), mineralogy, mineralisation, colour and
Half diamond core was collected and placed in marked
plastic sacks, and shipped to the assay laboratory.
RC samples were collected and placed in marked plastic
bags which were placed in sacks and then shipped to the
Aspects of the determination of mineralisation Drill samples were jaw crushed and riffle split to 2-2.5kg for
that are Material to the Public Report. In cases pulverizing to 80% passing 75 microns. Prepared samples
where ‘industry standard’ work has been done are fused with sodium peroxide and digested in dilute
this would be relatively simple (e.g. ‘reverse hydrochloric acid. The resultant solution is analysed by ICP,
circulation drilling was used to obtain 1 m samples by Nagrom Laboratory in Perth.
from which 3 kg was pulverised to produce a 30 g
The assay technique is considered to be robust as the
charge for fire assay’). In other cases more
method used offers total dissolution of the sample and is
explanation may be required, such as where there
useful for mineral matrices that may resist acid digestions.
is coarse gold that has inherent sampling
problems. Unusual commodities or
mineralisation types (e.g. submarine nodules)
may warrant disclosure of detailed information.
Drilling Drill type (e.g. core, reverse circulation, open-hole RC was drilled using 4.5-inch (140 mm) rods with a nominal
techniques hammer, rotary air blast, auger, Bangka, sonic, 5.9-inch (150 mm) diameter hole. Diamond core used either
etc.) and details (e.g. core diameter, triple or PQ, NQ2 or HQ3 diameter core. Core was oriented where
standard tube, depth of diamond tails, face- possible.
sampling bit or other type, whether core is
All DD holes and ~98% of RC drill holes are angled; the
oriented and if so, by what method, etc.).
remainder were drilled vertically.
Criteria JORC Code Explanation Commentary
Drill sample Method of recording and assessing core and chip Chip recovery or weights for RC drilling were not recorded.
recovery sample recoveries and results assessed. Core recovery is very good through the mineralised zones
and estimated to be greater than 90%.
Measures taken to maximise sample recovery and RC drilling generally utilised an external booster to keep
ensure representative nature of the samples. samples dry and maximising recoveries. The majority of RC
holes are shallow (<150m) with very few wet samples
Whether a relationship exists between sample No relationship between grade and recovery has been
recovery and grade and whether sample bias may identified.
have occurred due to preferential loss/gain of
Logging Whether core and chip samples have been Geological logs exist for all drill holes with lithological codes
geologically and geotechnically logged to a level via an established reference legend.
of detail to support appropriate Mineral Resource
Drill samples were logged for lithology, weathering,
estimation, mining studies and metallurgical
structure (diamond core), mineralogy, mineralisation,
colour and other features. Logging and sampling has been
carried out to “industry norms” to a level sufficient to
support the Mineral Resource estimate.
Whether logging is qualitative or quantitative in Drill holes have been geologically logged in their entirety.
nature. Core (or costean, channel, etc.) Where logging was detailed, the subjective indications of
photography. spodumene content were estimated and recorded.
The total length and percentage of the relevant All drill holes are logged in full, from start to finish of the
intersections logged. hole.
Sub-sampling If core, whether cut or sawn and whether quarter, Where sampled, core is cut in half onsite using an industry
techniques half or all core taken. standard core saw, to produce two identical halves.
If non-core, whether riffled, tube sampled, rotary Dry RC samples were collected at 1m intervals and riffle or
split, etc. and whether sampled wet or dry. cone split on-site to produce a subsample less than 5kg.
For all sample types, the nature, quality and Sample preparation is according to industry standard,
appropriateness of the sample preparation including oven drying, coarse crush, and pulverisation to
technique. 80% passing 75 microns.
Quality control procedures adopted for all sub- Subsampling is performed during the preparation stage
sampling stages to maximise representivity of according to the assay laboratories’ internal protocol.
Measures taken to ensure that the sampling is Field duplicates, laboratory standards and laboratory
representative of the in situ material collected, repeats are used to monitor analyses.
including for instance results for field
Whether sample sizes are appropriate to the grain Sample sizes are considered to be appropriate and correctly
size of the material being sampled. represent the style and type of mineralisation.
Quality of The nature, quality and appropriateness of the The assay technique is considered to be robust as the
assay data and assaying and laboratory procedures used and method used offers total dissolution of the sample and is
laboratory whether the technique is considered partial or useful for mineral matrices that may resist acid digestions.
Criteria JORC Code Explanation Commentary
For geophysical tools, spectrometers, handheld None were used.
XRF 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 Standards and duplicates were submitted in varying
(e.g. standards, blanks, duplicates, external frequency throughout the exploration campaign and
laboratory checks) and whether acceptable levels internal laboratory standards, duplicates and replicates are
of accuracy (i.e. lack of bias) and precision have used for verification.
Verification of The verification of significant intersections by Significant intersections have been verified by alternative
sampling and either independent or alternative company TAW personnel and by CSA Global Competent Persons
assaying personnel. (Ralph Porter and Matthew Cobb).
The Ta and Li assays show a marked correlation with the
pegmatite intersections via elevated downhole grades.
The use of twinned holes. Twinning of holes undertaken to date show reasonable
continuity and representivity of the mineralised intervals.
Documentation of primary data, data entry Drill logs exist for all holes as electronic files and/or
procedures, data verification, data storage hardcopy (all 2017 logging has been input directly to field
(physical and electronic) protocols. logging computers).
Digital log sheets have been created with inbuilt validations
to reduce potential for data entry errors.
All drilling data has been loaded to a database and validated
prior to use.
Discuss any adjustment to assay data. For the Mineral Resource estimate, adjustments were
made to a number of down hole surveys. These
adjustments were made where angled holes were blocked
well before the end of hole, or where down hole surveys
had not yet been undertaken but surveys had been
completed for nearby holes.
Where the drill hole was blocked, the last survey was copied
to the end of hole depth. Where no down hole survey was
completed or the hole was blocked at surface, the down
hole surveys from a nearby hole, drilled by the same rig (and
preferably same driller), was copied and applied to the hole.
Some of these holes may need to be re-entered, cleaned
and surveyed in the future. All changes were marked as
‘nominal’ in the database.
In all cases, corrections to down hole surveys were
reviewed against surrounding drill holes and pegmatite
intervals to ensure error was minimised.
Location of Accuracy and quality of surveys used to locate Prior to drilling, collar coordinates are situated using hand
data points drill holes (collar and down-hole surveys), held GPS (considered accurate to within 4m). Following
trenches, mine workings and other locations used drilling, accurate surveying using RTK DGPS is undertaken
in Mineral Resource estimation. by trained site personnel.
Criteria JORC Code Explanation Commentary
Hole collars are preserved until completion of down hole
surveying. A significant portion of holes are surveyed down
hole digital instruments dominated by gyro tools.
Specification of the grid system used. Grid used is MGA 94 Zone 51.
Quality and adequacy of topographic control. Topographical survey is generated from detailed airborne
survey with points generated on a 1m by 1m grid. Areas
mined have been defined by final mine surveys.
Data spacing Data spacing for reporting of Exploration Results. Drilling has been conducted on a 40m by 40m grid
and extending to 80m by 80m on the peripheries of the deposit,
distribution with a 140m by 80m area in the northern portion of the
deposit drilled out at 20m by 20m.
Whether the data spacing and distribution is The spacing of holes is considered of sufficient density to
sufficient to establish the degree of geological and provide an ‘Indicated’ or ‘Inferred’ Mineral Resource
grade continuity appropriate for the Mineral estimation and classification under JORC (2012).
Resource and Ore Reserve estimation
procedure(s) and classifications applied.
Whether sample compositing has been applied. There has been no sample compositing.
Orientation of Whether the orientation of sampling achieves Drilling has been angled to achieve the most representative
data in unbiased sampling of possible structures and the intersections through mineralisation.
relation to extent to which this is known, considering the
The majority of drilling is angled. Some vertical holes have
geological deposit type.
been drilled in areas where access is limited or the
pegmatites are interpreted to be flat lying.
If the relationship between the drilling The lithium tantalite-bearing pegmatites are generally flat
orientation and the orientation of key mineralised to shallowly dipping in nature. The true width of pegmatites
structures is considered to have introduced a is generally considered 80-95% of the intercept width, with
sampling bias, this should be assessed and minimal opportunity for sample bias.
reported if material.
Sample The measures taken to ensure sample security. The drill samples are taken from the rig by experienced
security personnel, stored securely and transported to the
laboratory by a registered courier and handed over by
Audits or The results of any audits or reviews of sampling No audits have been undertaken to date.
reviews techniques and data.
Section 2 Reporting of Exploration Results
Criteria Explanation Commentary
Mineral Type, reference name/number, location and The Bald Hill Resource is situated on Mining leases
tenement and ownership including agreements or material M15/400, R15/01 and E15/1212 comprising 4,339Ha. The
land tenure issues with third parties such as joint ventures, tenements are 100% owned by Australian incorporated,
status partnerships, overriding royalties, native title Singapore Exchange listed Alliance Mineral Assets Limited
interests, historical sites, wilderness or national (AMAL).
park and environmental settings.
The Mining lease are subject to an earn-in agreement
between AMAL and Tawana Resources Limited.
There are no other third-party interests or royalties.
Government royalties are 5% for Lithium or Tantalum
The security of the tenure held at the time of The portfolio of mineral tenements, comprising mining
reporting along with any known impediments to leases, exploration licences, prospecting licences,
obtaining a licence to operate in the area. miscellaneous licences, a general-purpose lease, and a
retention lease are in good standing.
Exploration Acknowledgment and appraisal of exploration by Alluvial tantalite has been mined periodically from the early
done by other other parties. 1970s.
Gwalia Consolidated Limited undertook exploration for
tantalite-bearing pegmatites from 1983-1998. Work
included mapping, costeaning, and several phases of drilling
using RAB, RC, and diamond methods. The work identified
mineral resources that were considered uneconomic at the
Haddington Resources Limited (Haddington) entered
agreement to develop the resource and mining
- commenced in 2001 and continued until 2005.
- Haddington continued with exploration until
Living Waters acquired the project in 2009 and continued
with limited exploration to the north of the main pit area.
Geology Deposit type, geological setting and style of The Bald Hill area is underlain by generally north-striking,
mineralisation. steeply dipping Archaean metasediments (schists and
greywackes) and granitoids.
Felsic porphyries and pegmatite sheets and veins have
intruded the Archaean rocks. Generally, the pegmatites
cross cut the regional foliation, occurring as gently dipping
sheets and as steeply dipping veins.
The pegmatites vary in width and are generally comprised
quartz-albite- muscovite-spodumene in varying amounts.
Late-stage albitisation in the central part of the main
outcrop area has resulted in fine- grained, banded, sugary
pegmatites with visible fine-grained, disseminated
tantalite. A thin hornfels characterised by needle
hornblende crystals is often observed in adjacent country
rocks to the pegmatite intrusives. Tantalite generally occurs
as fine disseminated crystals commonly associated with
Criteria Explanation Commentary
fine-grained albite zones, or as coarse crystals associated
Weathering of the pegmatites yields secondary mineralised
accumulations in alluvial/elluvial deposits.
Drill hole A summary of all information material to the Not Applicable – Not reporting exploration results.
Information understanding of the exploration results including
a tabulation of the following information for all
Material drill holes:
• easting and northing of the drill hole
• 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 Not Applicable – Not reporting exploration results.
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, weighting Not Applicable – Not reporting exploration results.
aggregation averaging techniques, maximum and/or
methods minimum grade truncations (e.g. cutting of high
grades) and cut-off grades are usually Material
and should be stated.
Where aggregate intercepts incorporate short Not Applicable – Not reporting exploration results.
lengths of high grade results and longer lengths of
low grade results, the procedure used for such
aggregation should be stated and some typical
examples of such aggregations should be shown
The assumptions used for any reporting of metal Not Applicable – Not reporting exploration results.
equivalent values should be clearly stated.
Relationship These relationships are particularly important in Not Applicable – Not reporting exploration results.
between the reporting of Exploration Results.
If the geometry of the mineralisation with respect The majority of drilling is angled. Some vertical holes have
to the drill hole angle is known, its nature should been drilled in areas where access is limited or the
be reported. pegmatites are interpreted to be flat lying.
The lithium tantalite-bearing pegmatites are generally flat
to shallowly dipping in nature. The true width of pegmatites
are generally considered 85-95% of the intercept width,
with minimal opportunity for sample bias.
If it is not known and only the down hole lengths Not Applicable – Not reporting exploration results.
are reported, there should be a clear statement to
this effect (e.g. ‘down hole length, true width not
Criteria Explanation Commentary
Diagrams Appropriate maps and sections (with scales) and Not Applicable – Not reporting exploration results
tabulations of intercepts should be included for
any significant discovery being reported These
should include, but not be limited to a plan view
of drill hole collar locations and appropriate
Balanced Where comprehensive reporting of all Not Applicable – Not reporting exploration results
reporting Exploration Results is not practicable,
representative reporting of both low and high
grades and/or widths should be practiced to avoid
misleading reporting of Exploration Results.
Other Other exploration data, if meaningful and The metallurgical test work for spodumene referred to in
substantive material, should be reported including (but not the release was undertaken by Nagrom. Nagrom has
exploration limited to): geological observations; geophysical extensive experience with tantalum and lithium extraction
data survey results; geochemical survey results; bulk testwork and has ISO9001:2008 accreditation. Results
samples – size and method of treatment; have been reported without interpretation.
metallurgical test results; bulk density,
groundwater, geotechnical and rock
characteristics; potential deleterious or
Further work The nature and scale of planned further work (e.g. Further RC and diamond drilling is warranted at the deposit
tests for lateral extensions or depth extensions or to explore for additional resources and improve the
large-scale step-out drilling). understanding of the current resources prior to mining.
Diagrams clearly highlighting the areas of possible Diagrams have been included in the body of this report.
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
Section 3 Estimation and Reporting of Mineral Resources (Criteria listed in the preceding section
also apply to this section).
Criteria Explanation Commentary
Database Measures taken to ensure that data has not Logging is completed onto templates using standard logging
integrity been corrupted by, for example, transcription or codes into Toughbook laptops. Analytical results are
keying errors, between its initial collection and imported directly into the database by a database
its use for Mineral Resource estimation specialist.
The central database, from which the extract used for
Mineral Resource estimation was taken, is managed by
Tawana. Upon receipt of the extract, CSA Global validated
the database for internal integrity as part of the import
process for modelling in Surpac.
Data validation procedures used. Data were validated for internal database integrity as part
of the import process for use in Surpac. This includes logical
integrity checks for data beyond the hole depth maximum,
and overlapping from-to errors within interval data. Visual
validation checks were also made for obviously spurious
collar or downhole survey values, collars which were not
assigned a proper RL value, and collars which may lack
substantial downhole survey data.
Site visits Comment on any site visits undertaken by the CSA Global Principal Consultants; Ralph Porter and
Competent Person and the outcome of those Matthew Cobb have visited site and reviewed the drilling,
visits. sample collection, and logging data collection procedures,
along with conducting a review of the site geology.
The outcome of the site visits (broadly) were that data has
been collected in a manner that supports reporting a
Mineral Resource estimate in accordance with the JORC
Code, and controls to the mineralisation are well-
If no site visits have been undertaken indicate Not Applicable.
why this is the case.
Geological Confidence in (or conversely, the uncertainty of The geological model developed is based on lithological
interpretation ) the geological interpretation of the mineral logging of pegmatites within a metasedimentary host, with
deposit. occasional hypabyssal intrusions of dioritic composition.
The deposit geology is very well understood based on
previous mining history and open pit exposures, and this is
reflected in the generally high confidence in both the
mineralisation and geological interpretations.
Nature of the data used and of any assumptions The input data used for geological modelling has been
made. derived from the qualitative and quantitative logging of
lithology, alteration, geochemical composition of samples
returned from RC and DD drilling.
The effect, if any, of alternative interpretations The geological model developed has a solid lithological
on Mineral Resource estimation. basis, and is controlled by the presence of visually distinct
pegmatite within drillholes. Pegmatite structures have
been modelled as predominantly low angle / sub-horizontal
structures on the basis of a high density of input drillhole
Criteria Explanation Commentary
data and confirmation of the interpretation on the basis of
mapping. The data do not readily lend themselves to
alternative interpretations, and it is unlikely that such
alternatives would yield a more geologically reasonable
The use of geology in guiding and controlling The model developed for mineralisation is geologically
Mineral Resource estimation. driven; controlled by the presence or absence of pegmatite.
The factors affecting continuity both of grade Geological continuity is controlled by the preference for
and geology. fractionated pegmatitic fluids to follow preferential
structural pathways through the host rocks (an intercalated
pile of metasediments and metavolcanics. Grade within this
pegmatite is controlled by numerous factors such as fluid
residence time, degree of fluid fractionation and pegmatite
Dimensions The extent and variability of the Mineral The Bald Hill Mineral Resource comprises one large, main,
Resource expressed as length (along strike or sub horizontal pegmatite body, striking north-south, with a
otherwise), plan width, and depth below surface strike length of 1,230m, and a width at its widest point of
to the upper and lower limits of the Mineral 1,080m. This main body is surrounded by several smaller
Resource. discrete pegmatite bodies, sub-parallel to the main, which
result in a total strike length for the whole resource of
2,045m, and a total width of 1,800m. The Mineral Resource
has a total vertical depth of 245m, beginning 20m below the
natural surface and plunging gently to the south along its
entire strike length.
Estimation and The nature and appropriateness of the The Bald Hill Mineral Resource has been estimated using
modelling estimation technique(s) applied and key ordinary Kriging in a Surpac block model. The variables Li2O
techniques assumptions, including treatment of extreme ppm and Ta2O5ppm were estimated independently in a
grade values, domaining, interpolation univariate sense. The pegmatites on which this Mineral
parameters and maximum distance of Resource was defined was domained internally on the basis
extrapolation from data points. If a computer of a 7,500ppm Li2O cut-off, which itself was determined
assisted estimation method was chosen include from exploratory data analysis as a point of inflection within
a description of computer software and the Li2O grade distribution. This resulted in a high-grade
parameters used. core of Li2O mineralisation surrounded by lower grade
pegmatite, and is an interpretation supported by the
petrogenetic model for the formation of Li2O bearing
Samples were composited to 1m intervals based on
assessment of the raw drill hole sample intervals. Various
high-grade cuts were used for both Li2O (ranging from
10,000ppm to 60,000ppm) and Ta2O5 (ranging from
300ppm to 4,000ppm) based on statistical review of each
object. Composites for some objects remained uncut
depending on the statistical review.
High and low-grade domains were estimated
independently with hard boundaries assumed between
domains. Parameters for estimation and search ellipsoids
were determined from quantitative kriging analysis
performed within the SupervisorTM software package,
Criteria Explanation Commentary
which was also used to define semivariogram models for
each variable. The parameters defined for the largest, most
populated domains (main mineralised body and its high-
grade core) were used to inform all smaller subsidiary
domains during estimation.
A two search pass strategy was employed, with successive
searches using more relaxed parameters for selection of
input composite data, and a greater search radius. Blocks
not informed for any given variable after two passes were
assigned the Sichel Mean of the input data from that
All geological modelling and grade estimation was
completed using Surpac software.
The availability of check estimates, previous This Mineral Resource estimate is an update of the
estimates and/or mine production records and previously reported Mineral Resource estimate released in
whether the Mineral Resource estimate takes Q2 2017. The current estimate represents an incremental
appropriate account of such data. update based on additional drilling, and is comparable to its
predecessor in terms of average grades, with the expected
increase in tonnage from extensional drilling. Historic
estimates for the Bald Hill deposit focussed on Ta2O5 only,
and as such are not directly comparable to the current
estimate for which Li2O is the primary target variable.
The assumptions made regarding recovery of The only significant by-product to be considered is Ta2O5
by-products. which has been estimated within the domains defined by
Estimation of deleterious elements or other No deleterious elements have been identified or estimated.
non-grade variables of economic significance
(eg. sulphur for acid mine drainage
In the case of block model interpolation, the Block model dimensions used for the Bald Hill Mineral
block size in relation to the average sample Resource estimate were 10 by 10 by 5m (XYZ) sub-celled to
spacing and the search employed. 2.5 by 2.5 by 1.25m for resolution of volumes at lithological
boundaries. This compares to an average drillhole spacing
of 20m within the more densely informed areas of the
deposit. This 20m spacing increases to up to 80m between
drillholes in less well informed portions of the deposit.
Kriging Neighbourhood Analysis (KNA) was conducted
within the SupervisorTM software package to test a variety
of block sizes in both well and poorly informed areas of the
deposit. The chosen block size represents the smallest block
size that yields a robust set of estimation statistics, which
are comparable to the results also yielded from larger
Any assumptions behind modelling of selective No assumptions were made regarding selective mining
mining units. units.
Criteria Explanation Commentary
Any assumptions about correlation between The two variables under consideration; Li2O and Ta2O5 are
variables. uncorrelated within both the pegmatite as a whole, and
within the high-grade domain (correlation coefficient of -
0.04). Consequently, no correlation between variables was
considered. Both variables were treated in a univariate
Description of how the geological interpretation The nature of the mineralised body is such that the
was used to control the resource estimates. definition of the pegmatite host also defines the
mineralisation. Within that, and based on a combination of
petrogenetic process and statistical appraisal, an internal
high-grade Li2O domain was defined.
Discussion of basis for using or not using grade Domained data for both variables were assessed using
cutting or capping. histogram and log probability plots to define potential top
cuts to data. Where the Competent Person observed likely
breaks in the continuity of the grade distributions, a top cut
was chosen and applied. This was conducted on a per-
The process of validation, the checking process The results of estimation into the block model for the Bald
used, the comparison of model data to drill hole Hill Mineral resource were validated visually and
data, and use of reconciliation data if available. statistically. Estimated block grades were compared visually
in section against the corresponding input data values.
Additionally, trend plots of input data and block estimates
were compared for swaths generated in each of the three
principal geometric orientations (northing, easting and
Moisture Whether the tonnages are estimated on a dry Tonnages are reported on a dry basis.
basis or with natural moisture, and the method
of determination of the moisture content.
Cut-off The basis of the adopted cut-off grade(s) or Modelling of mineralisation for the resource was based on
parameters quality parameters applied. a combination of pegmatite lithological logging. Within this
mineralisation shape, a higher grade core was defined on
the basis of a 7,500 ppm Li2O cut-off.
The Mineral Resource is reported using both a 0.5% Li2O
cut-off, which approximates a reasonable economic cut-off
grade used for potential open pit mining as determined
from pit optimisation studies.
Mining factors Assumptions made regarding possible mining The methods used to design and populate the Bald Hill
or assumptions methods, minimum mining dimensions and Mineral Resource block model were defined under the
internal (or, if applicable, external) mining assumption that the deposit is likely to be mined via open
dilution. It is always necessary as part of the pit methods.
process of determining 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
Criteria Explanation Commentary
explanation of the basis of the mining
Metallurgical The basis for assumptions or predictions The material targeted for extraction predominantly
factors or regarding metallurgical amenability. It is always comprises the mineral spodumene, for which metallurgical
assumptions necessary as part of the process of determining processing methods are well established. No specific detail
reasonable prospects for eventual economic regarding metallurgical assumptions have been applied in
extraction to consider potential metallurgical the estimation the current Mineral Resource, however at
methods, but the assumptions regarding the current level of detail available, the Competent Person
metallurgical treatment processes and believes with sufficient confidence that metallurgical
parameters made when reporting Mineral concerns will not pose any significant impediment to
Resources may not always be rigorous. Where eventual economic extraction.
this is the case, this should be reported with an
explanation of the basis of the metallurgical
Environmental Assumptions made regarding possible waste No assumptions have been made regarding waste products,
factors or and process residue disposal options. It is always however the Mineral Resource has previously been mined
assumptions necessary as part of the process of determining by open pit methods with a processing facility, stacked
reasonable prospects for eventual economic waste dumps and tailings storage facilities on site. It is
extraction to consider the potential reasonable to assume that in the presence of this
environmental impacts of the mining and infrastructure, the creation and storage of waste products
processing operation. While at this stage the on site will not be of concern for future mining activities.
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, In situ bulk densities for the Bald Hill Mineral Resource have
the basis for the assumptions. If determined, the been assigned on a lithological basis for both mineralisation
method used, whether wet or dry, the and waste, based on historical values derived from mining
frequency of the measurements, the nature, and values taken from those used in similar deposits and
size and representativeness of the samples. lithologies.
The Competent Person considers the values chosen to be
The bulk density for bulk material must have Densities have been assigned on a lithological basis based
been measured by methods that adequately on a total of 44 metasediment and 25 pegmatite core
account for void spaces (vugs, porosity, etc), samples measured at the Nagrom laboratory and values
moisture and differences between rock and derived from surrounding deposits and rock types.
alteration zones within the deposit.
Discuss assumptions for bulk density estimates Bulk densities have been applied on a lithological unit basis.
used in the evaluation process of the different Values assigned were as follows:
materials. - Fresh pegmatite mineralisation 2.65 t/m3
- Transitional pegmatite 2.5t/m3
- Fresh diorite 2.8t/m3
- Transitional diorite 2.6t/m3
- Fresh metasediments 2.74t/m3
- Transitional metasediments 2.6t/m3
Criteria Explanation Commentary
- Oxide metasediments 2.2t/m3
- Waste fill 1.8t/m3
additional bulk density testwork utilising drill core across
the mineralised zones and less common waste units is
recommended for future estimates.
Classification The basis for the classification of the Mineral The Mineral Resource has been classified as Indicated and
Resources into varying confidence categories. Inferred on a qualitative basis; taking into consideration
numerous factors such as drillhole spacing, estimation
quality statistics (kriging slope of regression), number of
informing samples used in the estimate, average distance
to informing samples in comparison to the semivariogram
model ranges, and overall coherence and continuity of the
modelled mineralisation wireframes.
Whether appropriate account has been taken of The classification reflects areas of lower and higher
all relevant factors (ie relative confidence in geological confidence in mineralised lithological domain
tonnage/grade estimations, reliability of input continuity based on the intersecting drill sample data
data, confidence in continuity of geology and numbers, spacing and orientation. Overall mineralisation
metal values, quality, quantity and distribution trends are reasonably consistent within the various
of the data). lithology types over numerous drill sections.
Whether the result appropriately reflects the The Mineral Resource estimate appropriately reflects the
Competent Person’s view of the deposit. Competent Person’s views of the deposit.
Audits or The results of any audits or reviews of Mineral Internal audits were completed by CSA Global which
reviews Resource estimates. verified the technical inputs, methodology, parameters and
results of the estimate.
The current model has not been audited by an independent
Discussion of Where appropriate a statement of the relative The Mineral Resource accuracy is communicated through
relative accuracy and confidence level in the Mineral the classification assigned to the deposit. The Mineral
accuracy/ Resource estimate using an approach or procedure Resource estimate has been classified in accordance with
confidence deemed appropriate by the Competent Person. the JORC Code, 2012 Edition using a qualitative approach.
For example, the application of statistical or All factors that have been considered have been adequately
geostatistical procedures to quantify the relative communicated in Section 1 and Section 3 of this Table.
accuracy of the resource within stated confidence
limits, or, if such an approach is not deemed
appropriate, a qualitative discussion of the factors
that could affect the relative accuracy and
confidence of the estimate.
The statement should specify whether it relates The Mineral Resource statement relates to a global
to global or local estimates, and, if local, state estimate of in-situ tonnes and grade.
the relevant tonnages, which should be relevant
to technical and economic evaluation.
Documentation should include assumptions
made and the procedures used.
These statements of relative accuracy and The deposit has been historically mined for tantalum
confidence of the estimate should be compared (Ta2O5), however no accounting for Li2O had been
with production data, where available. undertaken, and therefore no production records are
available for comparison to the current estimate.
Date: 11/10/2017 09:06:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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