TAWANA RESOURCES NL - Lithium Ore Reserve Increase of 105% at Bald HillRelease Date: 06/06/2018 09:12:00 Code(s): TAW PDF(s):
Lithium Ore Reserve Increase of 105% at Bald Hill
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”)
Lithium Ore Reserve Increase of 105% at Bald Hill
PLEASE NOTE: ALL GRAPHICS HAVE BEEN REMOVED FOR SENS PURPOSES. PLEASE REFER TO TAWANA WEBSITE FOR
THE COMPLETE ANNOUNCEMENT
Joint venture partners Tawana Resources NL (TAW:ASX) (Tawana) and Alliance Mineral Assets Limited
(SGX:40F) (AMAL) (together the JV partners) are pleased to announce a 105% Reserve upgrade for the
Bald Hill Lithium-Tantalum Mine (Bald Hill or Mine or Project), located in the eastern goldfields of
Western Australia. The Reserve upgrade reflects pit design changes resulting from increases to Indicated
Resources following infill drilling completed in the second half of 2017. Infill drilling at Bald Hill is
Bald Hill Resource/Reserve Upgrade Highlights
- Total lithium Resources of 26.5Mt at 1.0% Li2O (using 0.3% Li2O cut off).
- Project lithium Indicated Resources of 14.4Mt at 1.02% Li2O an increase of 55% in contained lithium
from October 20171.
- Lithium Ore Reserve of 11.3Mt at 1.0% Li2O and 160 ppm Ta2O5 – representing an increase of 105% in
contained lithium from the July 2017 reserve estimate2.
- Tantalum Ore Reserve of 2.0Mt at 313ppm Ta2O5 – an increase of 43% from the July 2017 reserve
Upgraded Reserves now support a mine life of 9 years at the current processing rate of 1.2Mtpa. However,
given the large quantity of Inferred Resources awaiting infill drilling, strong market demand and superior
economics of increased throughput rates, the JV partners are actively reviewing options for significant
expansion in processing capacity and concentrate production.
Bald Hill Production Update
- Lithium and tantalum concentrate production commenced at Bald Hill as announced on 14 March
- Stage 1 DMS circuit achieved 50% of nameplate throughput for month 1 and 75% for month 2 of ramp-
up, producing a premium high-quality lithium concentrate.
- Tantalum pre-concentrate recoveries from lithium circuit are exceeding initial expectations.
- Mining is averaging approximately 30,000Bm3 per day.
- Logistics, including power, fuel management, concentrate haulage and ship loading are functioning as
- Two shipments were completed in May and the next shipment is anticipated in late June/early July
2018 with the exact shipment date and quantity still to be determined.
Opportunities for Growth
- Approximately 8.8Mt of additional Inferred Resources reported to the preferred Indicated + Inferred
Whittle (optimization) shell providing focus areas infill drilling. Exploration drilling in recent months has
intersected significant mineralisation outside the current resource. Refer to Appendix A.
- There are numerous untested, drill-ready targets which the JV partners expect to start testing within the
next six months.
- A further Resource/Reserve update is planned for later in 2018.\
Tawana Managing Director Mark Calderwood said: “The increased Reserves along with the potential for
additional Reserves resulting from infill drilling of Inferred material, provide strong support for
significantly increasing processing throughput rates. We are actively reviewing the options to best
increase throughput in the existing plant and/or add an additional DMS circuit and fines circuit. There has
been strong interest from a number of parties to obtain concentrate supply from Bald Hill.”
About the Bald Hill Project
The Bald Hill Mine is in the southeast of the Goldfields-Esperance Region of Western Australia, approximately 105km
south-southeast of Kalgoorlie. Kalgoorlie is the main hub in the region providing access to the Project which can be
accessed from Perth by air, rail and road.
The principal road access to the Project is via the (sealed) Coolgardie-Esperance Highway (National Highway 94), and
then the Binneringie Road from Widgiemooltha, a distance of 65km of unsealed shire road. The Project is
approximately 350km by road from the Port of Esperance.
The Mine currently consists of an open pit, a Dense Media Separation and Spiral Circuits, waste rock dumps, stores, a
camp (including administrative and living quarters) and associated infrastructure. Lithium concentrate is hauled via
Binneringie Road to the Port of Esperance. Tantalum concentrates will be packed into 205L drums and/or bulka-bags and
exported via Fremantle in standard shipping containers.
Each of Tawana and AMAL executed separate offtake agreements in April 2017 (and subsequent variations thereto)
for the supply of lithium concentrate from Bald Hill over a five-year term with pricing for 2018 and 2019 of US$880/t
(A$1,173) (FOB Esperance) for 6% Li2O concentrates. The offtake agreement provides for an attractive fixed price in
US dollars per dry metric tonne for the first 2 years of production, and shipping costs are borne by the offtake party.
Refer to ASX announcement of 26 April 2017 and SGX announcement of 4 May 2017.
Geology / Resources
The JV partners commissioned CSA Global Pty Ltd (CSA Global) to update the Mineral Resource estimate for the Bald
The Bald Hill Pegmatite Mineral Resource comprises one large, main, sub horizontal pegmatite body, striking north-
south, with a strike length of 1,070 metres, and a width at its widest point of 775 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 1,245 metres, and a total width of 990 metres. The Mineral Resource has a total vertical depth of
195 metres, beginning 20 metres below the natural surface and plunging gently to the south along its entire strike
The Mineral Resource was classified as Indicated and Inferred in accordance with the JORC Code (2012 Edition) on a
qualitative basis; 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.
The resource has been cut to the current mine survey as at 30 April 2018; ore and concentrate stockpiles have been
excluded from totals.
Table 1 | Bald Hill Project, Resources above 0.3% Li2O cut-off
Grade Contained Grade Contained
Li2O Li2O Ta2O5 Ta205
% Tonnes ppm (,000) Lbs
Indicated 14.4 1.02 147,200 168 5,300
Inferred 12.1 0.90 108,000 123 3,300
Total 26.5 0.96 255,200 149 8,600
Table 2 |Bald Hill Project, Tantalum Resources below 0.3% Li2O and above 200ppm Ta2O5 cut-offs
Resource Tonnes Grade Contained Grade Contained
Category (Mt) Li2O Li2O Ta2O5 Ta205
% Tonnes ppm (,000) Lbs
Indicated 3.0 0.16 4,700 333 2,200
Inferred 1.4 0.15 2,200 339 1,100
Total 4.4 0.16 6,900 336 3,300
Note: The tantalum resources reported in Table 2 are additional to those reported in Table 1.
Compared to the prior estimate (refer ASX announcement 11 October 2017 and SGX announcement of 12 October
2017), the revised Mineral Resource estimate above 0.5% Li2O is essentially the same total size but Indicated
resources have increased by 67% as a result of infill drilling and lowering the cut-off due to plant performance. The
latest Mineral Resource estimate includes a low-grade component grading between 0.3 and 0.5% Li2O due to the
metallurgical performance of low-grade or feed ore to the Stage 1 DMS.
Mining / Reserves
SMS Innovative Mining Solutions Pty Ltd is undertaking contract open-pit mining of the lithium and tantalite ore. The
mining of staged open pits uses a conventional truck/excavator mining method.
Current key mining equipment on site includes 1 x 360t Excavator, 1 X 200t excavator, 1 x 120t Excavator, a fleet of
Cat785/777 trucks and ancillary equipment including dozers, graders, loaders and water carts. Drill and blast is being
undertaken under sub-contract by JSW Australia using a combination of top hammer and down hole hammer drill rigs.
To minimise ore loss and dilution, ore is being mined in blocks of shallow bench height of 2.5m with drill and blast
limited to 5m depth is areas containing ore. Bulk waste is mined utilising 5m to 10m benches, with bulk waste drill
and blast targeting 10m benches.
The mining sequence provides advance dewatering, grade control drilling and modelling, followed by drill and blast,
survey control and load and haul operations, with strong visual controls during ore mining.
To establish revised mineable quantities and grades, a number of optimisations were completed on the Resource
model completed by CSA Global using Whittle Four-X pit optimisation software (Whittle). These results were then
analysed with a set of current price and costs to determine their respective value and an optimal shell was selected
for the study based on both value and risk.
An ultimate pit was designed using a conservative optimal pit shell derived from JORC Mineral Resource Indicated
material only. All Inferred Mineral Resources within the pit design are reported as waste during the Reserve
Pit shells created from Whittle optimisations inclusive of Inferred Mineral Resources were about 60% larger than those
used for the pit design, these shells are only used as a guide to infill drilling.
Pit shells were used as stage designs and from these a mine production schedule was completed for the life of the
mine. The mine schedule was completed using Minesched scheduling software using a cut-off grade of 0.30% Li2O for
Indicated material only and iterations of the mining schedule were run based on the capabilities of the mining
equipment on site and to meet a minimum ore mining rate of 110,000t/month.
Table 3: Bald Hill Mine - Reserves above 0.3% Li2O
Reserve Tonnes Grade Contained Grade Contained
Category (Mt) Li2O Li2O Ta2O5 Ta205
% Tonnes ppm (,000) Lbs
Proven - - - - -
Probable 11.3 1.01 114,100 160 4,000
Total 11.3 1.01 114,100 160 4,000
Notes: 1) Allows for mining ore loss of 7.5% and dilution of 7.5% at 0% Li2O and 0ppm Ta2O5
2) Reserves have been cut to the April 2018 end of month mine survey
Table 4: Bald Hill Project - Reserves below 0.3% Li2O and above 200ppm Ta2O5 cut-offs, April 2018
Reserve Tonnes Grade Contained
Category (Mt) Ta2O5 Ta205
ppm (,000) Lbs
Proven - - -
Probable 2.0 313 1,400
Total 2.0 313 1,400
Notes: 1) Allows for mining ore loss of 7.5% and dilution of 7.5%
2) Reserves contained in Table 4 are additional to those reported in Table 3.
3) Reserves have been cut to the April 2018 end of month mine survey; ore stockpiles and concentrates are
The Bald Hill Mine commenced lithium concentrate production effective 14 March 2018. The Mine is
currently in ramp-up with the Stage 1 DMS plant performing at about nameplate capacity with utilisation
rates exceeding expectations. The Stage 1 DMS includes a spirals circuit for -1mm lithium fines which is
producing tantalum pre-concentrates.
Table 5: Staged DMS throughput rates
Period Budget (t) Actual (t) Average tph Operating
Throughput Throughput hours
14 March – 13 April 22,509 50,042 148.2 337.6
14 April – 13 May 45,015 75,612 157.0 481.7
14-May – 3 June (21 58,740(1) 63,077 174.4 362.7(2)
1) Based on full month target of 85033t
2) Operating hours affected by crusher circuit modifications and downtime
The successful Stage 1 DMS plant was constructed on time and on budget by Primero Group (Primero). The
JV partners and Primero are undertaking a review of the Stage 1 DMS circuit performance and proposed -
1mm fines circuit design, with the aim of identifying minor design improvements for a possible Stage 2 DMS
circuit which will advance the Stage 1 DMS design. The proposed fines circuit and existing slimes thickening
facility would be common to both modules.
More immediate process improvements currently under consideration are to increase mass yield and plant
throughput by crushing to a coarser size. Plant performance to date on the -10mm +1mm size range has been
exceptional and plans are in place to increase the crush size and possibly reduce the bottom size.
Crushing services are provided by Cape Crushing and Earthmoving Contractors Pty Ltd on a fixed and
variable fee structure. The current arrangement provides for 1.55Mtpa crushing rate and the modular circuit
can be modified or expanded with relative ease.
The Bald Hill Mine produces high lithium, low iron and low mica, concentrates. The first
shipment of spodumene concentrate in early May 2018 averaged 6.37% Li 2O and 0.5% Fe2O3
and contained less than 0.4% mica, and the second shipment of spodumene concentrate in
late May 2018 also averaged +6% Li2O and less than 0.6% Fe2O3. To date, the quality of concentrate
and overall recovery is not highly sensitive to feed grade and this has allowed a reduction in the reserve cut
off from 0.39% Li2O to 0.3% Li2O.
Tantalum will be recovered from three streams:
Primary tantalum ore which will be processed through the existing 320,000tpa Tantalum Processing Facility
(TPF or T1) once it has been refurbished. The TPF comprises a screening and crushing circuit feeding a three-
stage spiral circuit. The TPF is expected to come on line in early 2019.
Tantalum in -1mm fines from the lithium plant is currently being recovered in a separate spiral plant (T2)
which was commissioned just after the main lithium plant. Concentrates containing 2-6 % Ta2O5 are being
stored for later processing over tables which will be installed by July 2018. This table concentrate will be
further upgraded by toll treatment at Nagrom in the interim.
Gravity pre-concentrates produced from the TPF will be combined with tantalum pre-concentrates from T2
and sent to a concentrate upgrade shed for further upgrading by tabling and magnetic separation.
The final spodumene concentrate can also contain significant quantities of tantalite, depending on the type
of ore being processed. The first shipment contained around 0.8kg/t. Plans are currently being finalised to
install a relatively low cost stand-alone jigging circuit (T3) to recover the majority of this tantalite before
concentrates are shipped.
The DMS circuit was commissioned on low grade semi-oxidised ore which had a head grade of 0.3% to 0.9%
Li2O. The -1mm fines content was higher than design but this was anticipated. Despite this and the low grade,
concentrate yields of 4-8% have been achieved at grades in excess of 6% Li2O.
Pit development has advanced to a stage where this semi-oxidised ore is almost depleted and the yield of
concentrate is expected to improve significantly once fresh ore with a grade of 1% Li 2O or better, is processed
from late May onwards.
Overall, operational metallurgical performance of the DMS circuit during ramp-up has been consistent with
the original test work with high grade concentrates being produced and high recoveries to primary
concentrates and middlings being achieved. The plant has already achieved feed rates of up to 210tph
compared to the design feed rate of 161 tph and opportunities for increasing the throughput by increasing
the crush size to 14mm and lowering the bottom cut-off size to 0.8mm are currently being planned.
Tantalum pentoxide recovery into pre-concentrate from the T2 spirals has exceeded expectation and is
estimated to have averaged about 0.36kg/t of fines feed for the month of April.
For further details of metallurgical test work, please refer to the following:
ASX and SGX announcements 6 September 2017
ASX announcement 11 July 2017, SGX announcement 8 August 2018
ASX announcement 16 March 2017, SGX announcement 15 March 2017
ASX announcement 13 February 2017, SGX announcement 12 February 2017
The Company has a binding offtake agreement for the supply of lithium concentrate from the Bald Hill Project in
Western Australia over an approximate initial five-year term.
The key terms of the offtake agreement are as follows:
- A fixed price for all production for 2018 and 2019 of US$880/t (FOB Esperance) for 6% Li2O with price
adjustment increment/decrement of US$15/t based on grade variation of 0.1%.
- From 2020 to 2023, the sales price and volumes are to be negotiated and agreed based upon prevailing
market conditions at the time.
For the purpose of cash flow modelling US$800/t (6% Li2O FOB Esperance) has been assumed for calendar year 2020
and calendar year 2021 and US$750 (6% Li 2O FOB Esperance) from calendar year 2022 to calendar year 2025. These
prices assume Bald Hill quality concentrates which are relatively high in Li, low in Fe and low in mica.Tantalum
Historic Bald Hill tantalum concentrates have a reputation for low levels of deleterious elements and a non-binding
term sheet has been signed with HC Starck for the supply of a minimum 600,000 pounds of contained tantalum
pentoxide to December 2020 (refer ASX and SGX announcements of 25 January 2018 and 29 January 2018). Tawana,
AMAL are still in the process of negotiating the terms of a binding definitive agreement.
Excess production may be sold to HC Starck or other companies that have expressed interest for Bald Hill tantalum
The pricing assumption used for tantalum pentoxide is based on a price of US$70/lb (FOB Fremantle) for +25% Ta 2O5
from 2018-2020 and US$60 thereafter.
Tenure & Approvals
All current mining and processing activities are contained on granted Mining Lease M15/400 owned by the JV partners
and part of a larger tenement package. M15/400 was granted in 1988 and its second extension of term will expire 7
September 2030. It pre-dates Native Title and has been the subject of prior mining and production. Apart from state
government royalties, M15/400 is not subject to royalties.
Two additional mining leases are expected to be required within three to five years: an application is currently
underway for one of these licences; and an application for the second licence will be made in the coming months.
Both areas are currently under tenure owned by the JV partners.
The Bald Hill site is an operating mine site with all required permits. Ongoing variations and additional permitting will
be required from the Department of Water and Environmental Regulation (DWER) and Department of Mines, Industry
Regulation and Safety (DMIRS), for additional clearing, mining pits or pit extensions, waste dumps, tailing facilities,
and water. There are no known impediments to extending the currently permitted active mining area and associated
Opportunities for Resource Growth
There are several opportunities for increasing production rates and the mine life.
- Approximately 8.8Mt to 12.2Mt of additional Inferred Resources reported to the Indicated + Inferred Whittle
shells, highlighting potential for Reserve growth with the completion of the current infill drilling program.
- Limited exploration drilling in recent months has been successful in intersecting significant mineralisation
outside the current Resource. Intercepts include:
- 21m at 1.50% Li2O from 169m from a 22m wide pegmatite in an isolated water exploration drill hole
(LRC0707), 600m north of the current pit. A second water exploration drill hole, LRC0708 drilled 400m to
the west, also intercepted a 6m wide pegmatite from 41m and a 17m wide pegmatite from 128m which
included 9m at 0.33% Li2O. A third water exploration drill hole (LRC0706) located 1.2km south of LRC0708
intercepted a 13m wide pegmatite from 23m and an 8m wide pegmatite from 43m and included 6m at
0.68% Li2O from 24m and 4m at 1.0% Li2O from 45m, (Appendix A).
- 33m at 1.33% Li2O from 228m incl. 20m at 1.78% Li2O;
- 24m at 1.51% Li2O from 200m;
- 29m at 1.31% Li2O from 174m;
- 28m at 1.28% Li2O from 179m incl. 11m at 1.73% Li2O;
Details of the intercepts are set out in Appendix A
- Initial mine development has slowed exploration at Bald Hill, with about 12 months of lithium
exploration drilling completed in the past 18 months. There are numerous untested, drill-ready targets
which the JV partners expect to start testing within the next six months. Please refer to ASX and SGX
announcements of 6 December 2017.
Competent Persons Statement
The information in this announcement that relates to Exploration Results is based on and fairly represents
information and supporting documentation compiled by Mr Gareth Reynolds, who is an employee of Tawana. Mr
Reynolds is a member of The Australasian Institute of Geoscientists. Mr Reynolds has sufficient experience
relevant to the style of mineralisation 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”. Mr Reynolds consents to the inclusion in this report of the matters based
on his information in the form and context in which it appears. Mr Reynolds meets the requirements to act as a
Qualified Person (as defined in the SGX Catalist rules).
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 announcement that relates to Mineral Resources is based on and fairly represents information and
supporting documentation compiled by Dr Matthew Morgan Cobb, a Competent Person who is a is a member of both The
Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Dr Cobb is a full-time employee
of CSA Global Pty Ltd. Dr Cobb has sufficient experience that is relevant to the 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”. Dr Cobb consents to the inclusion in this
report of the matters based on his information in the form and context in which it appears. Dr Cobb meets the
requirements to act as a Qualified Person (as defined in the SGX Catalist rules).
Dr Cobb is not an employee of Tawana or AMAL. Dr Cobb is not aware of any other relationship with Tawana which could
constitute a potential for a conflict of interest.
The information in this announcement that relates to Ore Reserves is based on and fairly represents information and
supporting documentation compiled by Mr Karl van Olden a Competent Person who is a is a Fellow of the Australasian
Institute of Mining and Metallurgy. Mr van Olden is a full-time employee of CSA Global Pty Ltd.
Mr van Olden has sufficient experience that is relevant to the 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”. Mr van Olden consents to the inclusion in this report of the
matters based on his information in the form and context in which it appears.
Mr van Olden not is an employee of Tawana or AMAL. Mr van Olden is not aware of any other relationship with Tawana
which could constitute a potential for a conflict of interest.
The information in this release that relates to metallurgy and metallurgical test work has been reviewed by Mr Noel O’Brien,
FAusIMM, MBA, B. Met Eng. Mr O’Brien is a part time employee of the company. Mr O’Brien is a Fellow of the Australasian
Institute of Mining and Metallurgy, and he has sufficient experience with the style of processing response and type of deposit
under consideration, and to the activities undertaken, to qualify as a competent person as defined in the 2012 edition of the
“Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr O’Brien consents to the
inclusion in this report of the contained technical information in the form and context as it appears.
Forward Looking Statements
This announcement may contain certain forward looking statements and projections including regarding estimated
resources and reserves, production and operating costs profiles, capital requirements and 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 and/or AMAL. 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 and/or AMAL. The forward looking statements/projections are inherently uncertain and may therefore differ
materially from results ultimately achieved.
While the information contained in this announcement has been prepared in good faith, neither Tawana nor AMAL, nor any
of their respective directors, officers, agents, employees or advisors make any representation or give any warranty, express
or implied, as to the fairness, accuracy, completeness or correctness of the information, forward looking statement, opinions
and conclusions contained in this announcement. Accordingly, to the maximum extent permitted by law, none of Tawana
and AMAL, nor any of their respective directors, officers, employees, agents or advisers, nor any other person accepts any
liability whether direct or indirect, express or limited, contractual, tortious, 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. Tawana and AMAL disclaim any
obligation to update or revise any forward looking statements based on new information, future events or otherwise except
to the extent required by applicable laws.
Neither Tawana nor AMAL provide any financial or investment 'advice' as that term is defined in the South African Financial
Advisory and Intermediary Services Act, 37 of 2002.
Investors should exercise caution when dealing in the securities of Tawana and AMAL. In the case of any doubt, they should
seek their own professional advice and consult with their own bank manager, stockbroker, solicitor, accountant, tax adviser
or other professional adviser.
All figures throughout this presentation regarding the Project are, unless expressly stated otherwise, presented on a 100%
of Project basis. Tawana and AMAL each have a 50% interest in the Project comprising the Bald Hill tenements, the
processing plant and infrastructure at Bald Hill, and all minerals from the Bald Hill tenements under the terms of the Bald
Hill Joint Venture Agreement. Refer to SGX and ASX announcements of 24 October 2017.
Figures are in AUD unless otherwise indicated.
Table A-1 | Drill Summary, Exploration Drill Holes with Pegmatite Intercepts
Eastin Widt Pegmatit
Northing RL Depth From To
Hole ID g Azm Dec. Type h e
m m m m m m m Type
6511520 272.2 102 23
5 8 0 -90 RC 79 102 Li, Ta
6 7 6512199 279.2 0 -90 RC 23 36 Li, Ta
43 51 8 Li, Ta
7 5 6513402 285.4 0 -90 RC 46 53 Li
169 191 22 Li
8 7 6513401 286.8 0 -90 RC 41 47 Ta
128 145 17 Li
90 90 -60 3
1 8 6512721 300.3 RC 72 75 Ta
150 -90 3
2 9 6512640 301.6 0 RC 57 60 Ta
63 65 2 Ta
105 109 4 Ta
121 133 12 Li, Ta
6514599 300.9 222 18
2 0 0 -90 RC 87 105 barren
112 118 6 barren
156 184 28 barren
209 215 6 barren
6517198 323.1 198 12
3 7 0 -90 RC 162 174 Li
4 4 6517198 315.1 0 -90 RC 70 72 barren
150 154 4 barren
320 0 -90 47
9 7 6512198 279.3 RC 225 272 Li
266 0 -90 2
0 1 6512158 279.0 RC 165 167 Ta
200 236 36 Li, Ta
6512121 278.1 303 0 12
1 7 -90 RC 274 286 Li, Ta
356 0 22
4 1 6512081 277.7 -90 RC 286 308 Li, Ta
316 356 40 Li
6512039 278.5 248 0 1
5 6 -90 RC 181 182 Li
192 210 18 Li, Ta
6512122 278.7 234 0 1
4 9 -90 RC 0 1 Ta
178 210 32 Li, Ta
6512081 278.3 242 0 3
5 0 -90 RC 95 98 Ta
174 206 32 Li
1) The true width of pegmatites are generally considered 80-95% of the intercept width.
2) Only pegmatite intercepts of 1m or more in width are included.
3) Resource infill drill holes excluded
Table A-2 | Significant Infill Drill Intercepts from Water Exploration Drill Holes
Hole ID From To Interval Li2O Ta2O5 Nb2O5 SnO2
(m) (m) (m) % ppm ppm ppm
LRC0705 80 94 14 1.20 80 87 74
incl 83 89 6 1.62 48 90 55
Hole ID From To Interval Li2O Ta2O5 Nb2O5 SnO2
(m) (m) (m) % ppm ppm ppm
90 91 1 0.21 211 129 52
101 102 1 0.71 43 57 33
LRC0706 23 24 1 0.07 372 79 112
24 30 6 0.68 99 49 79
incl 27 30 3 1.04 74 50 85
45 49 4 1.00 175 140 95
LRC0707 47 49 2 0.98 52 58 145
169 190 21 1.50 41 76 114
incl 170 172 2 2.17 40 93 163
and 178 188 10 1.96 39 84 115
LRC0708 42 44 2 0.05 216 54 127
132 141 9 0.33 56 91 263
144 145 1 0.31 2 14 19
LRC0713 165 169 4 1.70 56 84 99
Note: Only intercepts of greater than 0.3% Li2O or 200 ppm Ta2O5 included.
Table A-3| Significant Infill Drill Intercepts Extensional Exploration Drilling
From To Interval Li2O Ta2O5 Nb2O5 SnO2
(m) (m) (m) % ppm ppm ppm
LRC0751 73 75 2 0.19 255 40 132
LRC0752 57 59 2 0.12 331 79 167
63 65 2 0.13 459 93 246
105 106 1 0.14 171 100 70
123 126 3 0.08 416 95 240
126 128 2 0.71 105 90 91
LRC0729 226 227 1 0.18 190 165 42
228 261 33 1.33 59 85 49
incl 230 250 20 1.78 55 84 48
261 262 1 0.08 210 129 55
270 271 1 0.38 50 64 166
LRC0730 165 166 1 0.17 215 43 250
200 224 24 1.51 81 94 46
LRC0731 274 285 11 0.63 67 89 63
incl 280 281 1 2.12 29 50 44
LRC0734 286 302 16 0.65 92 114 52
302 304 2 0.18 481 151 124
318 344 26 0.72 51 109 52
incl 324 329 5 1.46 42 156 51
346 347 1 0.61 42 107 51
351 356 5 1.08 43 97 48
LRC0735 181 182 1 0.40 61 36 144
200 210 10 0.77 117 101 60
incl 200 206 6 1.15 63 98 50
and 208 209 1 0.04 595 250 151
LRC0754 179 207 28 1.28 69 98 49
incl 180 191 11 1.73 72 105 46
LRC0755 96 97 1 0.05 190 43 239
174 203 29 1.31 63 93 50
203 204 1 0.26 184 86 95
Note: Only intercepts of greater than 0.3% Li2O or 200 ppm Ta2O5 included.
Section 1 – Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling techniques Nature and quality of sampling (e.g. cut Drilling consists of ~99% reverse
channels, random chips, or specific circulation (RC), RC with diamond
specialised industry standard core tails (RCD) and diamond
measurement tools appropriate to the drilling (DD) for a total 1,128
minerals under investigation, such as holes for 104,465.89 m of drilling
downhole gamma sondes, or handheld in the Bald Hill project database.
XRF instruments, etc.). These examples The Bald Hill Mineral Resource is
should not be taken as limiting the based on assay data from 699 RC
broad meaning of sampling. holes, 17 RCD holes and 12 DD
RC cuttings were continuously
sampled at 1 m intervals through
all pegmatite intercepts including
2 m of waste above and below
DD core is typically continuously
sampled at 2 m intervals through
pegmatite intercepts. Where
required by changes in lithology,
mineralisation, or alteration, core
samples may be shorter or longer
than the typical 2 m.
Include reference to measures taken to The majority of drillhole collars
ensure sample representivity and the are accurately surveyed using
appropriate calibration of any RTK DGPS equipment.
measurement tools or systems used. Drill samples are logged for
lithology, weathering, structure
(diamond core), mineralogy,
mineralisation, colour and other
Half diamond core was collected
and placed in marked plastic
sacks, and shipped to the assay
RC samples were collected and
placed in marked plastic bags
which were placed in sacks and
then shipped to the assay
Aspects of the determination of Drill samples were jaw crushed
mineralisation that are Material to the and riffle split to 2–2.5 kg for
Public Report. In cases where ‘industry pulverizing to 80% passing 75
standard’ work has been done this microns. Prepared samples are
would be relatively simple (e.g. ‘reverse fused with sodium peroxide and
circulation drilling was used to obtain 1 digested in dilute hydrochloric
m samples from which 3 kg was acid. The resultant solution is
pulverised to produce a 30 g charge for analysed by ICP by Nagrom
fire assay’). In other cases, more Laboratory in Perth.
explanation may be required, such as The assay technique is considered
where there is coarse gold that has to be robust as the method used
inherent sampling problems. Unusual offers total dissolution of the
commodities or mineralisation types sample and is useful for mineral
(e.g. submarine nodules) may warrant matrices that may resist acid
disclosure of detailed information. digestions.
Drilling techniques Drill type (e.g. core, reverse circulation, RC was drilled using 4.5-inch
open-hole hammer, rotary air blast, (140 mm) rods with a nominal
auger, Bangka, sonic, etc.) and details 5.9-inch (150 mm) diameter hole.
(e.g. core diameter, triple or standard Diamond core used either PQ,
tube, depth of diamond tails, face- NQ2 or HQ3 diameter core. Core
sampling bit or other type, whether core was oriented where possible.
is oriented and if so, by what method,
Criteria JORC Code explanation Commentary
All DD holes and ~98% of RC
drillholes are angled; the
remainder were drilled vertically.
Drill sample recovery Method of recording and assessing core Chip recovery or weights for RC
and chip sample recoveries and results drilling were not recorded. Core
assessed. recovery is very good through the
mineralised zones and estimated
to be greater than 90%.
Measures taken to maximise sample RC drilling generally utilised an
recovery and ensure representative external booster to keep samples
nature of the samples. dry and maximising recoveries.
The majority of RC holes are
shallow (<150 m) with very few
wet samples encountered.
Whether a relationship exists between No relationship between grade
sample recovery and grade and whether and recovery has been identified.
sample bias may have occurred due to
preferential loss/gain of fine/coarse
Logging Whether core and chip samples have Geological logs exist for all
been geologically and geotechnically drillholes with lithological codes
logged to a level of detail to support via an established reference
appropriate Mineral Resource legend.
estimation, mining studies and Drill samples were logged for
metallurgical studies. lithology, weathering, structure
(diamond core), mineralogy,
mineralisation, colour and other
features. Logging and sampling
has been carried out to “industry
standards” to a level sufficient to
support the Mineral Resource
Whether logging is qualitative or Drillholes have been geologically
quantitative in nature. Core (or costean, logged in their entirety. Where
channel, etc.) photography. logging was detailed, the
subjective indications of
spodumene content were
estimated and recorded.
The total length and percentage of the All drillholes are logged in full,
relevant intersections logged. from start to finish of the hole.
Subsampling techniques and If core, whether cut or sawn and Where sampled, core is cut in half
sample preparation whether quarter, half or all core taken. onsite using a core saw, to
produce two identical halves.
If non-core, whether riffled, tube Dry RC samples were collected at
sampled, rotary split, etc. and whether 1 m intervals and riffle or cone
sampled wet or dry. split on-site to produce a
subsample less than 5 kg.
For all sample types, the nature, quality Sample preparation is according
and appropriateness of the sample to industry standard, including
preparation technique. oven drying, coarse crush, and
pulverisation to 80% passing 75
Quality control procedures adopted for Subsampling is performed during
all sub-sampling stages to maximise the preparation stage according
representivity of samples. to the assay laboratories’ internal
Measures taken to ensure that the Field duplicates, laboratory
sampling is representative of the in-situ standards and laboratory repeats
material collected, including for are used to monitor analyses.
instance results for field
Whether sample sizes are appropriate Sample sizes are considered to be
to the grain size of the material being appropriate and correctly
Criteria JORC Code explanation Commentary
represent the style and type of
Quality of assay data and The nature, quality and appropriateness The assay technique is considered
laboratory tests of the assaying and laboratory to be robust as the method used
procedures used and whether the offers total dissolution of the
technique is considered partial or total. sample and is useful for mineral
matrices that may resist acid
For geophysical tools, spectrometers, None were used.
handheld XRF instruments, etc., the
parameters used in determining the
analysis including instrument make and
model, reading times, calibrations
factors applied and their derivation, etc.
Nature of quality control procedures Standards and duplicates were
adopted (e.g. standards, blanks, submitted in varying frequency
duplicates, external laboratory checks) throughout the exploration
and whether acceptable levels of campaign and internal laboratory
accuracy (i.e. lack of bias) and precision standards, duplicates and
have been established. replicates are used for
Verification of sampling and The verification of significant Significant intersections have
assaying intersections by either independent or been verified by alternative
alternative company personnel. Tawana Resources NL personnel
and by CSA Global Pty Ltd
Competent Person 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
Documentation of primary data, data Drill logs exist for all holes as
entry procedures, data verification, data electronic files and/or hardcopy
storage (physical and electronic) (all 2017 logging has been input
protocols. directly to field logging
Digital log sheets have been
created with inbuilt validations to
reduce potential for data entry
All drilling data has been loaded
to a database and validated prior
Discuss any adjustment to assay data. For the Mineral Resource
estimate, adjustments were made
to a number of downhole surveys.
These adjustments were made
where angled holes were blocked
well before the end of hole, or
where downhole surveys had not
yet been undertaken but surveys
had been completed for nearby
Where the drillhole 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 downhole surveys
from a nearby hole, drilled by the
same rig (and preferably same
driller), was copied and applied to
Criteria JORC Code explanation Commentary
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
downhole surveys were reviewed
against surrounding drillholes
and pegmatite intervals to ensure
error was minimised.
Location of data points Accuracy and quality of surveys used to Prior to drilling, collar
locate drill holes (collar and downhole coordinates are situated using
surveys), trenches, mine workings and handheld GPS (considered
other locations used in Mineral Resource accurate to within 4 m). Following
estimation. drilling, accurate surveying using
RTK DGPS is undertaken by
trained site personnel.
Hole collars are preserved until
completion of downhole
surveying. A significant portion of
holes are surveyed using
downhole digital instruments
dominated by gyroscopic tools.
Specification of the grid system used. Grid used is MGA 94 Zone 51.
Quality and adequacy of topographic Topographical survey is
control. generated from detailed airborne
survey with points generated on a
1 m x 1 m grid. Areas mined have
been defined by final mine
Data spacing and Data spacing for reporting of Drilling has been conducted on a
distribution Exploration Results. 40 m x 40 m grid extending to
80 m x 80 m on the peripheries of
the deposit, with a 140 m x 80 m
area in the northern portion of
the deposit drilled out at 20 m x
Whether the data spacing and The spacing of holes is considered
distribution is sufficient to establish the of sufficient density to classify the
degree of geological and grade Mineral Resource as “Indicated”
continuity appropriate for the Mineral or “Inferred” in accordance with
Resource and Ore Reserve estimation the JORC Code.
procedure(s) and classifications applied.
Whether sample compositing has been There has been no sample
Orientation of data in Whether the orientation of sampling Drilling has been angled to
relation to geological achieves unbiased sampling of possible achieve the most representative
structure structures and the extent to which this is intersections through
known, considering the deposit type. mineralisation.
The majority of drilling is angled.
Some vertical holes have 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
orientation and the orientation of key pegmatites are generally flat to
mineralised structures is considered to shallowly dipping in nature. The
have introduced a sampling bias, this true width of pegmatites is
should be assessed and reported if generally considered 80–95% of
material. the intercept width, with minimal
opportunity for sample bias.
Sample security The measures taken to ensure sample The drill samples are taken from
security. the rig by experienced personnel,
stored securely and transported
to the laboratory by a registered
Criteria JORC Code explanation Commentary
courier and handed over by
Audits or reviews The results of any audits or reviews of No audits have been undertaken
sampling techniques and data. to date.
Section 2 – Reporting of Exploration results
Criteria Explanation Commentary
Mineral Type, reference name/number, location and The Bald Hill Resource is situated on
tenement ownership including agreements or material Mining Lease M15/400 comprising 501
and land issues with third parties such as joint ventures, hectares. M15/400 is beneficially owned
tenure partnerships, overriding royalties, native title 50% by AMAL and 50% by Lithco No.2 Pty
status interests, historical sites, wilderness or national Ltd (Lithco), a wholly owned subsidiary of
park and environmental settings. Tawana. AMAL holds legal title to 100%
pending transfer of 50% of legal title to
Lithco pursuant to the joint venture
agreement between AMAL and Lithco.
There are no other third-party interests or
royalties. Government royalties are 5% for
lithium or tantalum mineral concentrates.
The security of the tenure held at the time of The portfolio of mineral tenements,
reporting along with any known impediments to comprising mining leases, exploration
obtaining a licence to operate in the area. licences, prospecting licences,
miscellaneous licences, a general-purpose
lease, and a retention lease are in good
Exploration Acknowledgment and appraisal of exploration Alluvial tantalite has been mined
done by by other parties. periodically from the early 1970s.
other parties Gwalia Consolidated Limited undertook
exploration for tantalite-bearing
pegmatites from 1983–1998. Work
included mapping, costeaning, and several
phases of drilling using rotary air blast
(RAB), RC, and DD methods. The work
identified Mineral Resources that were
considered uneconomic at the time.
Haddington Resources Limited
(Haddington) entered an agreement to
develop the resource and mining
commenced in 2001 and continued until
2005. Haddington continued with
exploration until 2009.
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
mineralisation. north-striking, steeply dipping Archaean
metasediments (schists and greywackes)
Felsic porphyries and pegmatite sheets and
veins have intruded the Archaean rocks.
Generally, the pegmatites crosscut the
regional foliation, occurring as gently
dipping sheets and as steeply dipping
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
Criteria Explanation Commentary
intrusives. Tantalite generally occurs as
fine disseminated crystals commonly
associated with fine-grained albite zones,
or as coarse crystals associated with
Weathering of the pegmatites yields
secondary mineralised accumulations in
Drillhole A summary of all information material to the Not applicable – not reporting exploration
information understanding of the exploration results results.
including a tabulation of the following
information for all Material drillholes:
• easting and northing of the drillhole collar
• elevation or RL (Reduced Level – elevation
above sea level in metres) of the drillhole
• dip and azimuth of the hole
• downhole length and interception depth
• hole length.
If the exclusion of this information is justified on Not applicable – not reporting exploration
the basis that the information is not Material results.
and this exclusion does not detract from the
understanding of the report, the Competent
Person should clearly explain why this is the
Data In reporting Exploration Results, weighting Not applicable – not reporting exploration
aggregation averaging techniques, maximum and/or results.
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
lengths of high grade results and longer lengths results.
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
equivalent values should be clearly stated. results.
Relationship These relationships are particularly important Not applicable – not reporting exploration
between in the reporting of Exploration Results. results.
mineralisati If the geometry of the mineralisation with The majority of drilling is angled. Some
on widths respect to the drill hole angle is known, its vertical holes have been drilled in areas
and nature should be reported. where access is limited or the pegmatites
intercept are interpreted to be flat lying.
The lithium tantalite-bearing pegmatites
are generally flat to shallowly dipping in
nature. The true width of pegmatites is
generally 85–95% of the intercept width,
with minimal opportunity for sample bias.
If it is not known and only the downhole lengths Not applicable – not reporting exploration
are reported, there should be a clear statement results.
to this effect (e.g. ‘downhole length, true width
Diagrams Appropriate maps and sections (with scales) and Not applicable – not reporting exploration
tabulations of intercepts should be included for results.
any significant discovery being reported These
should include, but not be limited to a plan view
of drillhole collar locations and appropriate
Balanced Where comprehensive reporting of all Not applicable – not reporting exploration
reporting Exploration Results is not practicable, results.
representative reporting of both low and high
grades and/or widths should be practiced to
Criteria Explanation Commentary
avoid misleading reporting of Exploration
Other Other exploration data, if meaningful and Metallurgical testwork has been conducted
substantive material, should be reported including (but not by the analytical laboratory Nagrom.
exploration limited to): geological observations; geophysical Nagrom has extensive experience with
data survey results; geochemical survey results; bulk tantalum and lithium extraction testwork
samples – size and method of treatment; and has ISO9001:2008 accreditation.
metallurgical test results; bulk density, Results have demonstrated that the Bald
groundwater, geotechnical and rock Hill pegmatite is amenable to the
characteristics; potential deleterious or production of Li and Ta concentrates.
Further The nature and scale of planned further work Further RC and diamond drilling is
work (e.g. tests for lateral extensions or depth warranted at the deposit to explore for
extensions or large-scale step-out drilling). additional resources and improve the
understanding of the current resources
prior to mining.
Diagrams clearly highlighting the areas of Diagrams have been included in the body of
possible extensions, including the main this report.
geological interpretations and future drilling
areas, provided this information is not
Section 3 - Estimation and Reporting of Mineral Resources
(Criteria listed in the preceding section also apply to this section)
Criteria Explanation Commentary
Logging is completed onto templates using
standard logging codes into Toughbook
laptops. Analytical results are imported
directly into the database by a database
Measures taken to ensure that data has not been
corrupted by, for example, transcription or
The central database, from which the
keying errors, between its initial collection and its
extract used for Mineral Resource
use for Mineral Resource estimation purposes.
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
Database modelling in Surpac.
integrity 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
Data validation procedures used.
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
CSA Global Competent Person; Matthew
Cobb, has visited site and reviewed the
drilling, sample collection, and logging data
collection procedures, along with
Comment on any site visits undertaken by the
conducting a review of the site geology.
Competent Person and the outcome of those
The outcome of the site visit was that data
Site visits 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
why this is the case.
Confidence in (or conversely, the uncertainty of) The geological model developed is based
the geological interpretation of the mineral on lithological logging of pegmatites within
deposit. a metasedimentary host, with 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
The input data used for geological
modelling has been derived from the
Nature of the data used and of any assumptions
qualitative and quantitative logging of
lithology, alteration, geochemical
composition of samples returned from RC
and DD drilling.
The geological model developed has a solid
lithological 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
The effect, if any, of alternative interpretations on
basis of a high density of input drillhole
Mineral Resource estimation.
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 result.
The use of geology in guiding and controlling The model developed for mineralisation is
Mineral Resource estimation. geologically driven; controlled by the
presence or absence of pegmatite.
Geological continuity is controlled by the
preference for fractionated pegmatitic
fluids to follow preferential structural
pathways through the host rocks (an
The factors affecting continuity both of grade and
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 thickness.
The Bald Hill Mineral Resource comprises
one large, main, sub horizontal pegmatite
body, striking north-south, with a strike
length of 1,070m, and a width at its widest
point of 775m. This main body is
The extent and variability of the Mineral
surrounded by several smaller discrete
Resource expressed as length (along strike or
pegmatite bodies, sub-parallel to the main,
Dimensions otherwise), plan width, and depth below surface
which result in a total strike length for the
to the upper and lower limits of the Mineral
whole resource of 1,245m, and a total width
of 990m. The Mineral Resource has a total
vertical depth of 195m, beginning 20m
below the natural surface and plunging
gently to the south along its entire strike
The nature and appropriateness of the
The Bald Hill Mineral Resource has been
estimation technique(s) applied and key
estimated using ordinary kriging in a
assumptions, including treatment of extreme
Surpac block model. The variables Li2O
grade values, domaining, interpolation
ppm and Ta2O5ppm were estimated
parameters and maximum distance of
independently in a univariate sense. The
extrapolation from data points. If a computer
pegmatites on which this Mineral Resource
assisted estimation method was chosen include a
Estimation was defined was domained internally on
description of computer software and
and the basis of a 7,500ppm Li2O cut-off, which
modelling itself was determined from exploratory
techniques 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.
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 50,000ppm) and Ta2O5
(ranging from 300mm 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,
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
This Mineral Resource estimate is an
incremental update from previous recent
estimates, and compares well, with only
The availability of check estimates, previous
the expected minor incremental changes to
estimates and/or mine production records and
grades and tonnages. Historic estimates for
whether the Mineral Resource estimate takes
the Bald Hill deposit focussed on Ta2O5
appropriate account of such data.
only, and as such are not directly
comparable to the current estimate for
which Li2O is the primary target variable.
The only significant by-product to be
The assumptions made regarding recovery of by- considered is Ta2O5 which has been
products. estimated within the domains defined by
Estimation of deleterious elements or other non-
No deleterious elements have been
grade variables of economic significance (eg.
identified or estimated.
sulphur for acid mine drainage characterisation).
Block model dimensions used for the Bald
Hill Mineral Resource estimate were 10 by
10 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. This 20m spacing increases to up
In the case of block model interpolation, the block
to 80m between drillholes in less well-
size in relation to the average sample spacing
informed portions of the deposit.
and the search employed.
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 blocks sizes.
Any assumptions behind modelling of selective No assumptions were made regarding
mining units. selective mining units.
The two variables under consideration;
Li2O and Ta2O5 are uncorrelated within
both the pegmatite as a whole, and within
Any assumptions about correlation between the high-grade domain (correlation
variables. coefficient of -0.04). Consequently, no
correlation between variables was
considered. Both variables were treated in
a univariate sense.
The nature of the mineralised body is such
that the definition of the pegmatite host
Description of how the geological interpretation also defines the mineralisation. Within
was used to control the resource estimates. that, and based on a combination of
petrogenetic process and statistical
appraisal, an internal high-grade Li2O
domain was defined.
Domained data for both variables were
assessed using histogram and log
probability plots to define potential top
Discussion of basis for using or not using grade cuts to data. Where the Competent Person
cutting or capping. observed likely breaks in the continuity of
the grade distributions, a top cut was
chosen and applied. This was conducted on
a per-domain basis.
The results of estimation into the block
model for the Bald Hill Mineral resource
were validated visually and statistically.
Estimated block grades were compared
The process of validation, the checking process visually in section against the
used, the comparison of model data to drill hole corresponding input data values.
data, and use of reconciliation data if available. Additionally, trend plots of input data and
block estimates were compared for swaths
generated in each of the three principal
geometric orientations (northing, easting
Whether the tonnages are estimated on a dry
Moisture basis or with natural moisture, and the method of Tonnages are reported on a dry basis.
determination of the moisture content.
Modelling of mineralisation for the
resource was based on a combination of
pegmatite lithological logging. Within this
mineralisation shape, a higher-grade core
was defined on the basis of a 7,500 ppm
Cut-off The basis of the adopted cut-off grade(s) or
parameters quality parameters applied.
The Mineral Resource is reported using a
0.5% Li2O cut-off which approximates a
conservative cut-off grade used for
potential open pit mining as determined
from preliminary pit optimisations.
Assumptions made regarding possible mining
methods, minimum mining dimensions and
internal (or, if applicable, external) mining
dilution. It is always necessary as part of the
The methods used to design and populate
process of determining reasonable prospects for
Mining the Bald Hill Mineral Resource block model
eventual economic extraction to consider
factors or were defined under the assumption that
potential mining methods, but the assumptions
assumptions the deposit will be mined via open pit
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.
The material targeted for extraction
The basis for assumptions or predictions
predominantly comprises the mineral
regarding metallurgical amenability. It is always
spodumene, for which metallurgical
necessary as part of the process of determining
processing methods are well established.
reasonable prospects for eventual economic
No specific detail regarding metallurgical
extraction to consider potential metallurgical
Metallurgical assumptions have been applied in the
methods, but the assumptions regarding
factors or estimation the current Mineral Resource,
metallurgical treatment processes and
assumptions however at the current level of detail
parameters made when reporting Mineral
available, the Competent Person believes
Resources may not always be rigorous. Where
with sufficient confidence that
this is the case, this should be reported with an
metallurgical concerns will not pose any
explanation of the basis of the metallurgical
significant impediment to eventual
Assumptions made regarding possible waste and
process residue disposal options. It is always
necessary as part of the process of determining
No assumptions have been made regarding
reasonable prospects for eventual economic
waste products, however the Mineral
extraction to consider the potential
Resource has previously been mined by
environmental impacts of the mining and
open pit methods with a processing
Environment processing operation. While at this stage the
facility, stacked waste dumps and tailings
al factors or determination of potential environmental
storage facilities on site. It is reasonable to
assumptions impacts, particularly for a greenfields project,
assume that in the presence of this
may not always be well advanced, the status of
infrastructure, the creation and storage of
early consideration of these potential
waste products on site will not be of
environmental impacts should be reported.
concern for future mining activities.
Where these aspects have not been considered
this should be reported with an explanation of the
environmental assumptions made.
In situ bulk densities for the Bald Hill
Mineral Resource have been assigned on a
Whether assumed or determined. If assumed, the lithological basis for both mineralisation
basis for the assumptions. If determined, the and waste, based on historical values
method used, whether wet or dry, the frequency derived from mining and values taken from
of the measurements, the nature, size and those used in similar deposits and
representativeness of the samples. lithologies.
The Competent Person considers the
values chosen to be suitably
Densities have been assigned on a
The bulk density for bulk material must have
lithological basis based on a total of 44
been measured by methods that adequately
metasediment and 25 pegmatite core
account for void spaces (vugs, porosity, etc),
samples measured at the Nagrom
moisture and differences between rock and
laboratory and values derived from
alteration zones within the deposit.
Bulk density surrounding deposits and rock types.
Bulk densities have been applied on a
lithological unit basis. Values assigned
were as follows:
Fresh pegmatite mineralisation 2.65 t/m3
Transitional pegmatite 2.5t/m3
Fresh diorite 2.8t/m3
Discuss assumptions for bulk density estimates Transitional diorite 2.6t/m3
used in the evaluation process of the different Fresh metasediments 2.74t/m3
materials. Transitional metasediments 2.6t/m3
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.
The Mineral Resource has been classified
as Indicated and Inferred on a qualitative
basis; taking into consideration numerous
factors such as drillhole spacing,
The basis for the classification of the Mineral
estimation quality statistics (kriging slope
Classification Resources into varying confidence categories.
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
The classification reflects areas of lower
Whether appropriate account has been taken of and higher geological confidence in
all relevant factors (ie relative confidence in mineralised lithological domain continuity
tonnage/grade estimations, reliability of input based on the intersecting drill sample data
data, confidence in continuity of geology and numbers, spacing and orientation. Overall
metal values, quality, quantity and distribution of mineralisation trends are reasonably
the data). consistent within the various lithology
types over numerous drill sections.
The Mineral Resource estimate
Whether the result appropriately reflects the
appropriately reflects the Competent
Competent Person’s view of the deposit.
Person’s views of the deposit.
Internal audits were completed by CSA
Global which verified the technical inputs,
Audits or The results of any audits or reviews of Mineral methodology, parameters and results of
reviews Resource estimates. the estimate.
The current model has not been audited by
an independent third party.
Where appropriate a statement of the relative
The Mineral Resource accuracy is
accuracy and confidence level in the Mineral
communicated through the classification
Resource estimate using an approach or
assigned to the deposit. The Mineral
procedure deemed appropriate by the Competent
Resource estimate has been classified in
Person. For example, the application of statistical
accordance with the JORC Code, 2012
or geostatistical procedures to quantify the
Edition using a qualitative approach. All
relative accuracy of the resource within stated
factors that have been considered have
confidence limits, or, if such an approach is not
been adequately communicated in Section
deemed appropriate, a qualitative discussion of
1 and Section 3 of this Table.
the factors that could affect the relative accuracy
Discussion of and confidence of the estimate.
The statement should specify whether it relates to
global or local estimates, and, if local, state the The Mineral Resource statement relates to
relevant tonnages, which should be relevant to a global estimate of in-situ tonnes and
technical and economic evaluation. grade.
Documentation should include assumptions
made and the procedures used.
The deposit has been historically mined for
tantalum (Ta2O5), however no accounting
These statements of relative accuracy and
for Li2O had been undertaken, and
confidence of the estimate should be compared
therefore no production records are
with production data, where available.
available for comparison to the current
Section 4 - Ore Reserve Modifying Factors, JORC 2012 Modifying Factors
Criteria JORC Code explanation Commentary
Mineral Resource - Description of the Mineral Resource estimate used as a - The Mineral Resource estimate was compiled by Dr Matthew Cobb of CSA
estimate for basis for the conversion to an Ore Reserve. Global Pty Ltd in R148.2018 Bald Hill Mineral Resource Update February
conversion to - Clear statement as to whether the Mineral Resources are 2018.The Mineral Resource estimate was depleted by Dr Matthew Cobb
Ore Reserves reported additional to, or inclusive of, the Ore Reserves. in R276.2018 Bald Hill Mineral Resource Estimate – April 2018 Depletion.
- The Mineral Resource estimate is reported inclusive of the Ore Reserve
Site visits - Comment on any site visits undertaken by the Competent - Mr Karl van Olden of CSA Global Pty Ltd (CSA Global) visited the Bald Hill
Person and the outcome of those visits. Project in May 2018 and inspected the locations of the open pit, waste
- If no site visits have been undertaken indicate why this is dumps, transport corridors, and processing plants.
Study status - The type and level of study undertaken to enable Mineral - A Prefeasibility Study (PFS) has been prepared and released in July 2017
Resources to be converted to Ore Reserves. by Tawana Resources NL (Tawana Resources) for a 1.2 Mtpa lithium
- The Code requires that a study to at least Prefeasibility Dense Media Separation (DMS) circuit adjacent to the existing tantalum
Study level has been undertaken to convert Mineral processing facility. The FS addressed mining and processing costs,
Resources to Ore Reserves. Such studies will have been geotechnical parameters and placement of waste material. Additional
carried out and will have determined a mine plan that is studies, and project construction and commissioning have produced
technically achievable and economically viable, and that more recent mining and processing costs and first indication of plant
material Modifying Factors have been considered. performance. An optimization study and pit design was completed in
December 2017 by CSA Global. Tawana Resources completed a detailed
mining schedule and cost model in May 2018. An updated geotechnical
analysis was completed by Dempers and Seymour Pty Ltd (Dempers and
Seymour) in April 2018.
- The work undertaken to date has addressed all material Modifying
Factors required for the conversion of a Mineral Resources estimate into
an Ore Reserve estimate and has shown that the mine plan is technically
feasible and economically viable.
Cut-off - The basis of the cut-off grade(s) or quality parameters - The economic cut-off grade has been estimated as 3,000 ppm for Li2O
parameters applied. and 200 ppm for Ta2O5 based on relevant processing costs and
metallurgical recoveries, a fixed 6% Li2O concentrate price of AUD$1,170
and Ta2O5 price of AUD$87/lb.
Mining factors or - The method and assumptions used as reported in the Pre- - Input parameters for pit optimisations were; mining costs based on
assumptions Feasibility or Feasibility Study to convert the Mineral mining contract rates; mineral processing costs and recoveries both from
Resource to an Ore Reserve (i.e. either by application of site and the Primero Group Limited (Primero) Prefeasibility Study (PFS);
appropriate factors by optimisation or by preliminary or commodity prices of AUD$1,170 for a 6% Li2O concentrate price and a
detailed design). AUD$87/lb Ta2O5 price. These input parameters were reviewed by CSA
- The choice, nature and appropriateness of the selected Global. They are considered appropriate for the current lithium and
mining method(s) and other mining parameters including tantalum world markets. An updated Resource Block Model for the Bald
associated design issues such as pre-strip, access, etc. Hill deposit was optimised using WhittleTM software. The current pit
- The assumptions made regarding geotechnical design is considered suitable for Ore Reserve estimation.
parameters (eg pit slopes, stope sizes, etc), grade control - Geotechnical analysis has been undertaken by Dempers and Seymour
and pre-production drilling. after the initial design was completed. Some areas of the design require
- The major assumptions made and Mineral Resource minor adjustment to align with the latest geotechnical recommendations.
model used for pit and stope optimisation (if appropriate). These changes will not impact on the value of the pit or the Ore Reserve
- The mining dilution factors used. estimate. The proposed pit slopes are considered likely to be stable for
- The mining recovery factors used. the current pit designs.
- Any minimum mining widths used. - The Mineral Resource model was estimated by CSA Global. The Resource
- The manner in which Inferred Mineral Resources are Block Model was used for optimization and mine planning after inclusion
utilised in mining studies and the sensitivity of the of additional attributes. The Block Model has block sizes of 10 m x 10 m x
outcome to their inclusion. 5 m for the pit designs which is considered suitable for the proposed
- The infrastructure requirements of the selected mining mining method and equipment. All pit designs have catch berms every 20
methods. vertical meters and are appropriate for a 5 m bench height.
- Fixed values for mining dilution and recovery of 7.5% and 92.5% were
adopted for both the optimisation and determination of Ore Reserves. A
grade of 0% Li2O and 0% Ta2O5 was assumed for dilution material. These
levels are considered suitable for the deposit geometry, mining method,
and size of mining equipment.
- A minimum mining width of 30m was used in the pit design.
- Inferred Mineral Resources have not been included in the pit design or
Ore Reserves. Inferred material has been included in the mining schedule
and treated as waste, Inferred mined material does not make a material
impact on the Bald Hill Project’s overall financial viability.
- Mine infrastructure is mostly in place and the project is in operation.
Metallurgical - The metallurgical process proposed and the - For lithium ore the economic analysis has only considered Phase one
factors or appropriateness of that process to the style of processing, comprising dense media gravity separation (DMS) of the 1
assumptions mineralisation. mm to 10 mm fraction after P100 crushing to 10 mm. This process is
considered the lowest risk methodology for the coarse grained,
- Whether the metallurgical process is well-tested spodumene pegmatite of the Bald Hill Project. To further reduce
technology or novel in nature. processing risk the DMS circuit will treat 1-5.6 mm and 5.6-10 mm
- The nature, amount and representativeness of separately, with partial mica removal from the 1-5.6 mm fraction using a
metallurgical test work undertaken, the nature of the reflux classifier (RFC). -1 mm material (lithium fines) along with low grade
metallurgical domaining applied and the corresponding DMS concentrates (middlings) will be treated at a later date through a
metallurgical recovery factors applied. lithium fines circuit (LFS). For tantalum ore the PFS has only considered
- Any assumptions or allowances made for deleterious tantalum recovery from direct ore feed to the existing tantalum spiral
elements. plant and from additional spirals to remove a portion of the tantalum
- The existence of any bulk sample or pilot scale test work from the lithium fines prior to stockpiling for future treatment through
and the degree to which such samples are considered the LFS. Test work has shown additional tantalum concentrate recovery
representative of the orebody as a whole. can be obtained from treatment of DMS concentrate through jigs,
- For minerals that are defined by a specification, has the however this has not been considered by the PFS.
ore reserve estimation been based on the appropriate - All technologies proposed are proven and well tested with easily sourced
mineralogy to meet the specifications? components. The Lithium processing plant is commissioned and
producing within design specifications.
- Samples used for metallurgical test work were sourced from existing
open pits and 10 diamond core holes distributed across the Indicated
Resource area. Variability test work and mineralogy was undertaken, and
a composite drill core sample was used for design purposes. A bulk
sample collected from open pit material was processed to obtain
approximately 1.5 tonnes of spodumene concentrates averaging 6.23%
Li2O for down-stream test work by lithium converters. The variability,
composite and bulk samples all show the same metallurgical
characteristics with no apparent variation or domaining across the
deposit. About 99% of the Resources are fresh rock and the remaining 1%
is transitional to fresh rock.
- For lithium concentrates, potential deleterious elements have been
observed at low concentrations in concentrates or are non-existent. Key
deleterious minerals and elements are; lepidolite and petalite, not
present in test work; iron, concentrates to date contain less than the
0.8% total Fe and 8% moisture content, being the key contractual
requirements; mica, concentrates to date contain less than 3% mica and
The Port of Esperance allows a limit of 5% mica. Detailed mineral product
quality and safety chemical and micro mineral analysis undertaken on
concentrates for the Port of Esperance returned favourable results.
- A bulk sample was processed through a DMS250 at Nagrom. A total 3,887
kg of material was treated through the DMS after removal of fines and
partial mica for recovery of 1,490 kg of combined concentrates averaging
6.23% Li2O at a recovery of 95.9% of contained lithium in the DMS feed
or net recover of 84.9% after taking into account lithium contained in
fines and RFC rejects. The iron content of the combined concentrate was
0.21%. This is a significantly better result than the Composite test work
used for engineering mass balance and PFS recoveries. The exceptionally
high recoveries were due in part to the higher than expected head grade
of the bulk sample feed resulting in middlings being able to be blended
with primary concentrates and grades in excess of 6% being maintained.
- The Ore Reserve has been based on being able to produce concentrates
of at between 5.5% and 7.0% Li2O.
Environmental - The status of studies of potential environmental impacts - The site is a ‘Brown Fields’ site with existing workings and infrastructure.
of the mining and processing operation. Details of waste The mine has Environmental approvals for the pre-existing open pit,
rock characterisation and the consideration of potential waste rock dumps, and tailings facility. The Bald Hill Project has formal
sites, status of design options considered and, where Department of Mines, Industry Regulation and Safety (DMIRS) approval
applicable, the status of approvals for process residue for the addition of spodumene production. The Department of Water and
storage and waste dumps should be reported. Environmental Regulation (DWER) has approved a license to take water,
the 1.5 Mt/a production capacity, power station, fuel storage, and in pit
tailings disposal. Additional approvals for the larger open pit, waste rock
dumps, and the long-term tailings facility are still under assessment.
Studies have shown that there are no significant additional
environmental impacts for the lithium circuit or extensions to the existing
Infrastructure - The existence of appropriate infrastructure: availability of - The Bald Hill Project is located in the Goldfields region of Western
land for plant development, power, water, transportation Australia where suitable infrastructure is available for mining projects. A
(particularly for bulk commodities), labour, sealed highway and unsealed public road with RAV-7 approval provides
accommodation; or the ease with which the infrastructure access from the port of Esperance to within 1.8 km of the plant site
can be provided, or accessed. where an existing private access road has been upgraded for the
increased traffic load. Process water requirements are available from
water resources within the mine area, as per the existing water Permits.
Potable water is transported to site until the new mine camp is
constructed. Power is produced on site using diesel generators. Product
will be shipped via the port of Esperance located approximately 360 km
south of Bald Hill via road. The site will operate on a fly-in fly-out basis to
Kalgoorlie with a village constructed to house operations personnel whilst
on site. During construction and operations, a combination of the existing
village and a leased neighboring village will be used.
Costs - The derivation of, or assumptions made, regarding - Remaining project capital expenditure was derived using actual site data
projected capital costs in the study. where available or from the Primero PFS. The Primero PFS was based on
- The methodology used to estimate operating costs. budget pricing and Primero’s database of recent project costs. Tawana
- Allowances made for the content of deleterious elements. provided the Owner’s costs and has been reviewed by CSA Global.
- The derivation of assumptions made of metal or - Updated mine operating costs have been based on actual site data.
commodity price(s), for the principal minerals and co- Processing costs are a combination of site data where available and the
- The source of exchange rates used in the study. - Due to the low concentration of Fe and mica in the concentrates, no
- Derivation of transportation charges. allowance has been made for deleterious elements.
- The basis for forecasting or source of treatment and - Exchange rates were applied based on external sources and at current
refining charges, penalties for failure to meet levels.
specification, etc. - Transport and port charges were derived from quotations by reputable
- The allowances made for royalties payable, both contractors and includes storage and re-handling costs.
Government and private. - Based on the off-take agreement, concentrates must contain 5.5% Li2O.
- Allowances were made for State Government royalties. No other
royalties are payable for production from M15/400.
Revenue factors - The derivation of, or assumptions made regarding - Exchange rate of 0.75 AUD:USD. Transportation and port loading charges
revenue factors including head grade, metal or have been allowed for. Spodumene revenue factors were: variable head
commodity price(s) exchange rates, transportation and grade averaging 1.04% Li2O; processing recoveries applied at 65% for the
treatment charges, penalties, net smelter returns, etc. first year and then 80%. Tantalum revenue factors were: direct tantalum
- The derivation of assumptions made of metal or feed averaging 327 ppm Ta2O5 with a recovery of 65% to saleable
commodity price(s), for the principal metals, minerals and concentrates. Secondary production of 39,000 kg of Ta2O5 from the
co-products. lithium circuit fines.
- Tawana has a binding offtake agreement for the supply of lithium
concentrate from the Bald Hill Project in Western Australia over an
approximate initial five-year term. The commodity pricing for spodumene
concentrates is based on a price of US$880/t (FOB Esperance) for 6%
Li2O. The key terms of the agreement are: a fixed price for all production
for 2018 and 2019 of US$880/t (FOB Esperance) for 6% Li2O with price
adjustment increment/decrement of US$/15t based on grade variation of
0.1%; from 2020 to 2023 the sales price and volumes are to be negotiated
and agreed based on prevailing market conditions at the time. For the
purposes of the estimate, reference prices of US$800/t for 2020,
US$800/t for 2021 and US$750/t for 2022 and beyond at 6% Li2O
- The commodity price for tantalum is based on a price of US$60/lb (FOB
Esperance) for +25% Ta2O5. The assumed spot price is US$70/lb for 2018
to 2020, then US$60/lb from 2021 to 2023 and a premium (based on
historic sales from Bald Hill) of US$5/lb has been assumed due to the low
radiation and past sales history from the Bald Hill Mine.
Market - The demand, supply and stock situation for the particular - Medium and long-term supply and demand modeling for spodumene
assessment commodity, consumption trends and factors likely to concentrates is difficult to predict due to the rapid growth in demand and
affect supply and demand into the future. promise of supply. Tawana has signed a binding offtake agreement for
- A customer and competitor analysis along with the 100% production for the first two years which includes substantial
identification of likely market windows for the product. prepayments.
- Price and volume forecasts and the basis for these - Lithium demand growth will likely be driven by demand for electric cars
forecasts. and energy storage systems. There are several large Lithium projects that
- For industrial minerals the customer specification, testing are expected to come into production in late 2018 and 2019. These may
and acceptance requirements prior to a supply contract. result in a period of oversupply from 2020. However, based on history,
supply has significantly lagged in analysts’ predictions.
- The commodity pricing for spodumene concentrates is based on a price
of US$880/t (FOB Esperance) for 6% Li2O
- Concentrates produced during bulk metallurgical test work are within the
contractually acceptable limits of grade and impurities.
Economic - The inputs to the economic analysis to produce the net - The economic analysis is based on cash flows driven by the production
present value (NPV) in the study, the source and schedule. The cash flow projections include: initial and sustaining capital
confidence of these economic inputs including estimated estimates; mining, processing and concentrate logistics costs to the
inflation, discount rate, etc. customer based on FOB pricing; revenue estimates based on concentrate
- NPV ranges and sensitivity to variations in the significant pricing adjusted for fees, charges and royalties; and a 10% discount
assumptions and inputs. factor.
- Sensitivity analyses were generated by varying the salient economic
variables. The project is most sensitive to grade, recovery of lithium and
exchange rate. The Bald Hill Project is robust against a 20% negative
change to recovery, grade, metal pricing, foreign exchange rates, capital
or operating costs.
Social - The status of agreements with key stakeholders and - The site is a Brown Fields operation however over time the larger project
matters leading to social licence to operate. footprint will have a marginal impact on pastoral leases. Tawana is
working with the lessee to mitigate impacts. The License pre-dates Native
Title however Tawana has been in dialog with the Ngadju Native Title
Group on neighbouring tenements.
Other - To the extent relevant, the impact of the following on the - No material naturally occurring risks have been identified.
project and/or on the estimation and classification of the - Tawana has a binding offtake agreement for the supply of lithium
Ore Reserves: concentrate from the Bald Hill Project Apart from the Bald Hill JV
- Any identified material naturally occurring risks. agreements that govern the Bald Hill Project there are no other relevant
- The status of material legal agreements and marketing material legal agreements.
arrangements. - There are no apparent impediments to obtaining all government
- The status of governmental agreements and approvals approvals required for the Bald Hill Project.
critical to the viability of the project, such as mineral
tenement status, and government and statutory
approvals. There must be reasonable grounds to expect
that all necessary Government approvals will be received
within the timeframes anticipated in the Pre-Feasibility or
Feasibility study. Highlight and discuss the materiality of
any unresolved matter that is dependent on a third party
on which extraction of the reserve is contingent.
Classification - The basis for the classification of the Ore Reserves into - Probable Ore Reserves were determined from Indicated Resources as per
varying confidence categories. the JORC (2012) guidelines. The Bald Hill Project has no Measured
- Whether the result appropriately reflects the Competent Resource, therefore there are no Proved Ore Reserves.
Person’s view of the deposit. - Mr Karl van Olden, the Competent Person for this Ore Reserve estimation
- The proportion of Probable Ore Reserves that have been has reviewed the work undertaken to date and considers that it is
derived from Measured Mineral Resources (if any). sufficiently detailed and relevant to the deposit to allow those Ore
Reserves derived from Indicated Mineral Resources to be classified as
- Zero (0) % of Probably Ore Reserves have been based on Measured
Audits or reviews - The results of any audits or reviews of Ore Reserve - The Primero capital costs and operating estimate, and scope of work was
estimates. externally reviewed. Ore Reserve estimates have been reviewed
internally. Mine design, scheduling, and financial model has been
reviewed by CSA Global. No material flaws have been identified and the
Ore Reserve is considered appropriate for a PFS level of study.
Discussion of - Where appropriate a statement of the relative accuracy - This Ore Reserve estimation is supported by the PFS and the current
relative and confidence level in the Ore Reserve estimate using an operational plans, that have taken into account geological, metallurgical,
accuracy/ approach or procedure deemed appropriate by the geotechnical, process engineering and mining engineering considerations.
confidence Competent Person. For example, the application of It has a nominal accuracy of within 25%.
statistical or geostatistical procedures to quantify the - The Bald Hill Project has an IRR and NPV which makes it robust in terms
relative accuracy of the reserve within stated confidence of cost variations. The Project is most sensitive to price variations for
limits, or, if such an approach is not deemed appropriate, spodumene concentrates.
a qualitative discussion of the factors which could affect - All estimates are based on local costs in Australia dollars. Standard
the relative accuracy and confidence of the estimate. industry practices have been used in the estimation process. The Bald Hill
- The statement should specify whether it relates to global Project is currently in the commissioning and early operations phase and
or local estimates, and, if local, state the relevant therefore recent and relevant costs have been utilized where available.
tonnages, which should be relevant to technical and - Capital expenditure estimates are considered to be within -5/+10%
economic evaluation. Documentation should include accuracy and a substantial amount of the original project capital
assumptions made and the procedures used. expenditure has been completed. Operating expenditure estimates are
- Accuracy and confidence discussions should extend to considered to be within 25% accuracy.
specific discussions of any applied Modifying Factors that - There has been limited lithium production via DMS to date so no
may have a material impact on Ore Reserve viability, or comprehensive comparison or reconciliation of data has been made.
for which there are remaining areas of uncertainty at the Current initial performance of the process aligns with expectations. There
current study stage. are significant historic tantalum recovery records and these have been
- It is recognised that this may not be possible or used as a basis for estimating future recovery.
appropriate in all circumstances. These statements of
relative accuracy and confidence of the estimate should
be compared with production data, where available.
06 June 2018
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
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