TIDMBMN
RNS Number : 8060U
Bushveld Minerals Limited
27 October 2017
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
27 October 2017
Bushveld Minerals Ltd
("Bushveld" or the "Company")
Operational Update - Updated CPR and Mineral Resources at the
Mokopane Tin Project
Bushveld Minerals Limited (AIM: BMN), a mineral development
company with a portfolio of vanadium and titanium-bearing iron ore,
tin and coal assets in Southern Africa, is pleased to announce the
release of an updated Competent Persons Report ("CPR") for the
Mokopane Tin Project. The CPR is an update of previously issued
reports and includes a revised cut-off grade for the Zaaiplaats
Deposit.
Highlights:
In anticipation of the demerger of Bushveld's tin assets to form
AfriTin Mining Limited, a newly formed company established for the
purpose of listing on AIM shortly, the Company is required to
update the CPR for the Mokopane Tin Project. The updated CPR was
prepared by The MSA Group and includes a Mineral Resource Estimate
("MRE") for the Groenfontein Deposit (prepared by Mr Dexter
Ferreira of Independent Resource Estimations) and an MRE for the
Zaaiplaats Deposit (prepared by Mr Alan Page and Dr Hennie Theart
of SRK Consulting and reviewed by Mr Jeremy Witley of the MSA
Group).
The following points are noted:
-- The MRE for the Groenfontein Deposit remains unchanged from
previous estimates, as reported in the original technical report
(26 September 2011, re-reported 4 June 2013).
-- The cut-off grade for the MRE at the Zaaiplaats deposit has
been revised from 0.07% Sn (as reported in the SRK MRE of 26
September 2013) to 0.1% Sn, in order to bring this cut-off grade
into alignment with the 0.1% cut-off for the Groenfontein
deposit.
-- The MRE for the Zaaiplaats Deposit (re-stated at a 0.1% Sn
cut-off) is 6.216 million tonnes at a grade of 0.124% in the
Inferred category and 0.017 million tonnes at 0.136% in the
Indicated category. This gives total Mineral Resources of 6.233
million tonnes at 0.124% Sn, with a total tin content of 7,753
tonnes.
-- While the reported total tonnage of contained tin at the
Zaaiplaats Deposit has been revised from 12,452 tonnes to 7,753
tonnes as a result of the higher cut-off grade, none of the other
parameters of the MRE have been changed, and the reported Mineral
Resources for the Zaaiplaats Deposits reflect the original MRE
prepared by SRK Consulting.
The unchanged MRE for the Groenfontein Deposit (stated at a 0.1%
cut-off) is shown below. Note that the Mineral Resources for the
Groenfontein Deposit have been re-reported in accordance with JORC
(2012), and details of Sampling Techniques and Data, Reporting of
Exploration Results and Estimation and Reporting of Mineral
Resources are reported as Appendix 1 in the form of JORC (2012)
Table 1.
Mineral Resources for the Groenfontein Deposit
as at July 2011 at a 0.1% Sn Cut Off
----------------------------------------------------------
Category Tonnes (millions) Sn Grade (%) Sn Tonnes
----------- ------------------ ------------- ----------
Measured 1.177 0.179 2,107
----------- ------------------ ------------- ----------
Indicated 1.918 0.140 2,685
----------- ------------------ ------------- ----------
Inferred 0.898 0.134 1,203
----------- ------------------ ------------- ----------
Total 3.993 0.150 5,995
----------- ------------------ ------------- ----------
The amended MRE for the Zaaiplaats Deposit (stated at a revised
0.1% cut-off) is shown below:
Zaaiplaats Mineral Resource as at 31 August
2013 (re-stated at 0.10 % Sn Cut Off).
----------------------------------------------------------
Category Tonnes (millions) Sn Grade (%) Sn Tonnes
----------- ------------------ ------------- ----------
Indicated 0.017 0.136 23
----------- ------------------ ------------- ----------
Inferred 6.216 0.124 7,730
----------- ------------------ ------------- ----------
Total 6.233 0.124 7,753
----------- ------------------ ------------- ----------
The Company is in the process of preparing an updated CPR on its
Uis Tin Project in Namibia. It is intended that AfriTin Mining
Limited will acquire the Uis Tin Project as a result of the
demerger from Bushveld. An announcement will be released upon
completion of the updated CPR.
Fortune Mojapelo, CEO of Bushveld Minerals, said:
"The re-reporting the Mineral Resource Estimates for the
Groenfontein and Zaaiplaats Deposits as part of an updated
Competent Persons Report for the Mokopane Tin Project is an
important step in the demerger of Bushveld Minerals to form AfriTin
Limited, which we feel will unlock shareholder value for the tin
assets currently within Bushveld."
Details of Sampling Techniques and Data, Reporting of
Exploration Results and Estimation and Reporting of Mineral
Resources for both the Groenfontein and Zaaiplaats Deposits are
outlined in Appendix 1 and Appendix 2 below.
Competent Persons Statement
References in this announcement to exploration results, Mineral
Resources, interpretations and prospects have been approved for
release by Mr Michael Cronwright, Mr Jeremy Witley and Mr Dexter
Ferreira.
The information in this announcement that relates to Mineral
Resources is based on information compiled by Mr Jeremy Witley of
The MSA Group, Johannesburg South Africa and Mr Dexter S. Ferreira.
Mr Witley is registered as Professional Scientist with the South
African Council for Professional Natural Scientific Professions
(SACNASP) which is a Recognised Professional Organisation (RPO). Mr
Witley is employed by MSA and has sufficient experience which is
relevant to the styles of mineralisation and types 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 Mineral Resources. Mr Witley
consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
Mr Ferreira is registered as Professional Scientist with the
South African Council for Professional Natural Scientific
Professions (SACNASP) which is a Recognised Professional
Organisation (RPO). Mr Ferreira is employed by Independent Resource
Estimations (IRES) and has sufficient experience which is relevant
to the styles of mineralisation and types 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 Mineral Resources. Mr Ferreira
consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
The information in this announcement that relates to Exploration
Results, is based on information compiled by Mr Michael Cronwright
of The MSA Group, Johannesburg, South Africa. Mr Cronwright has
sufficient experience relevant to the style of mineralisation and
type of deposit under consideration and to the activity 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 Cronwright
consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
APPIX 1: JORC (2012) TABLE 1 - GROENFONTEIN
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
============ =========================================================== ============================================================
Sampling
techniques * Nature and quality of sampling (e.g. cut channels, * At Groenfontein the samples were taken from 53 HQ
random chips, or specific specialised industry diameter (63.5mm) diamond core boreholes drilled.
standard measurement tools appropriate to the
minerals under investigation, such as down hole gamma
sondes, or handheld XRF instruments, etc.). These * The recovery logs of the core and a quick-geological
examples should not be taken as limiting the broad log was done on site.
meaning of sampling.
* The metre marking, detailed geological logging and
* Include reference to measures taken to ensure sample sample mark-up and reference/cut line was done at the
representivity and the appropriate calibration of any core yard.
measurement tools or systems used.
* The objective of core sampling was to provide
* Aspects of the determination of mineralisation that suitable samples for laboratory analyses of the
are Material to the Public Report. selected mineralised zones identified during logging.
* In cases where 'industry standard' work has been done * Core was split in half by a diamond saw at the core
this would be relatively simple (e.g. 'reverse yard facility. Half was submitted for assay and half
circulation drilling was used to obtain 1 m samples retained for reference purposes.
from which 3 kg was pulverised to produce a 30 g
charge for fire assay'). In other cases more
explanation may be required, such as where there is * Sample lengths were standardised to 1 m intervals.
coarse gold that has inherent sampling problems. However, sample lengths in well-mineralised zones or
Unusual commodities or mineralisation types (e.g. zones with variable mineralisation were matched
submarine nodules) may warrant disclosure of detailed accordingly and these normally varied between 0.15 m
information. to 1.0 m. Sample intervals were chosen at the
supervising geologist's discretion.
* Certified reference materials (produced by AMIS),
blanks and field duplicates were inserted by the lab
into each batch at a frequency of
* The CRMs used were AMIS0020 and AMIS0021
============ =========================================================== ============================================================
Drilling
techniques * Drill type (e.g. core, reverse circulation, open-hole * A total of 53 cored boreholes were drilled vertically,
hammer, rotary air blast, auger, Bangka, sonic, etc.) HQ in size (63.5 mm internal diameter) with a PQ size
and details (e.g. core diameter, triple or standard (85 mm internal diameter) within the weathered zone;
tube, depth of diamond tails, face-sampling bit or core were not orientated.
other type, whether core is oriented and if so, by
what method, etc.).
============ =========================================================== ============================================================
Drill
sample * Method of recording and assessing core and chip * Recovery logs were prepared for each drill run at the
recovery sample recoveries and results assessed. drill rig in order to monitor the core recovery.
* Measures taken to maximise sample recovery and ensure * Core recovery was expected to be >90% and this was
representative nature of the samples. achieved in all cases.
* Whether a relationship exists between sample recovery
and grade and whether sample bias may have occurred
due to preferential loss/gain of fine/coarse
material.
============ =========================================================== ============================================================
Logging
* Whether core and chip samples have been geologically * A preliminary quick geological log was prepared at
and geotechnically logged to a level of detail to the drill rig
support appropriate Mineral Resource estimation,
mining studies and metallurgical studies.
* Detailed geological logging including lithological
logging, geotechnical
* Whether logging is qualitative or quantitative in
nature. Core (or costean, channel, etc.) photography.
* Geological logging only commenced once the core was
washed, cleaned, photographed, geotechnically logged
* The total length and percentage of the relevant and split.
intersections logged.
* The following procedures were applied during
geological logging:
* Core was sprayed with water in order to assist with
the identification and description of lithology,
mineralisation, alteration, colour and texture.
* Different colours were used in the log sheets to
indicate different information on the core:
* Yellow - Comments on the lithology, colour,
alteration, veins, mineralogy etc.
* Red - Utilised to mark ore minerals such as
sulphides. Cassiterite is mostly disseminated
throughout the core.
* Blue - Indicated cutting marks, specifically for
sampling.
* The core logging process was facilitated by the use
of a geological log sheet designed according to
standard look-up tables and formats, to guide the
geologist through a standard set of logging
requirements.
* See CPR sections 9.2.3 and 9.2.5
* The work is undertaken according the logging
standards developed by Greenhills, which are in line
with international best practice.
* The CP considers that the level of detail and quality
of the work is appropriate to support the current
mineral resource estimation.
============ =========================================================== ============================================================
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * The objective of core sampling was to provide
and sample half or all core taken. suitable samples for laboratory analyses of the
preparation selected mineralised zones identified during logging.
* If non-core, whether riffled, tube sampled, rotary
split, etc. and whether sampled wet or dry. * Sample lengths were standardised to 1 m intervals.
However, sample lengths in well-mineralised zones or
zones with variable mineralisation were matched
* For all sample types, the nature, quality and accordingly and these normally varied between 0.15 m
appropriateness of the sample preparation technique. to 1.0 m. Sample intervals were chosen at the
supervising geologist's discretion.
* Quality control procedures adopted for all
sub-sampling stages to maximise representivity of * The half core samples were crushed and milled at Set
samples. Point Laboratories in Mokopane - See CPR Section
9.2.8.1
* Measures taken to ensure that the sampling is
representative of the in situ material collected, * Pulp duplicates, blanks and standard material
including for instance results for field (produced by AMIS) were inserted in identical packets
duplicate/second-half sampling. to the samples, one per 20 normal samples for each of
the blanks, standards and lab duplicates. This was
done under the supervision of a qualified geologist
* Whether sample sizes are appropriate to the grain or experienced geotechnician from VMIC.
size of the material being sampled.
============ =========================================================== ============================================================
Quality All samples were analysed
of assay * The nature, quality and appropriateness of the by using XRF - pressed
data and assaying and laboratory procedures used and whether pellets and with fusions
laboratory the technique is considered partial or total. done for samples with
tests values of >0.5% Sn.
* Specific Gravity determinations were also performed
* For geophysical tools, spectrometers, handheld XRF on the pulps by Set Point using gas pycnometry.
instruments, etc., the parameters used in determining
the analysis including instrument make and model,
reading times, calibrations factors applied and their * No independent QA/QC procedures were implemented by
derivation, etc. Greenhills for the Groenfontein exploration
programme.
* Nature of quality control procedures adopted (e.g.
standards, blanks, duplicates, external laboratory * SPL's QA/QC procedures and a summary of an audit of
checks) and whether acceptable levels of accuracy (ie the results is provided in CPR Section 9.4.1.2
lack of bias) and precision have been established.
* The following internal QA/QC procedure was followed:
o QA/QC samples inserted
(every twenty samples
submitted contain one
blank and one standard,
inserted at random positions)
o the blank material
used is commercially
sourced (AMIS 0108),
which contains no detectable
Sn;
o the Certified Reference
Material ("CRM") used
was commercially sourced
AMIS 0021 which has
0.270% +/-0.026% Sn
with a SG of 2.74 +/-0.22
g/cc and AMIS 0020 with
0.69% +/-0.04% Sn;
o field duplicates-
one out of the 20 samples,
are sent in with the
next sample batch;
o in addition one in
twenty original samples
and duplicate pulp samples
were also submitted
to an umpire laboratory;
and
o the samples are submitted
to SPL in Isando Johannesburg
for analysis for Sn,
Cu and W by XRF.
============ =========================================================== ============================================================
Verification
of sampling * The verification of significant intersections by * All logging and sampling was managed by a Senior
and assaying either independent or alternative company personnel. Geologist from Greenhills and independent checks by a
geologist from The MSA Group.
* The use of twinned holes.
* All hardcopies have been retained and stored at the
coreshed in Mokopane
* Documentation of primary data, data entry procedures,
data verification, data storage (physical and
electronic) protocols. * Electronic copies reside in XLS/Access format and
backups kept at the Greenhills head office in Illovo,
Johannesburg....
* Discuss any adjustment to assay data.
* The exploration programme entailed the drilling and
sampling of 53 drill holes (22 twinned with historic
drill holes) during 2011.
* Analytical data obtained from the 22 twinned drill
holes were compared to the historical drill hole
assay data in order to justify the incorporation of
the historical data into the Mineral Resource
estimation exercise. Twinning of drill holes followed
by the application of comparative and correlative
statistics by Independent Resource Estimations (IRES)
determined that the old data is "useable".
Statistical analysis between the previous drilling
results and the 22 twin drill holes from the current
programme indicate a very good correlation.
============ =========================================================== ============================================================
Location
of data * Accuracy and quality of surveys used to locate drill * All drill holes were drilled vertically and no
points holes (collar and down-hole surveys), trenches, mine orientation of the core was carried out.
workings and other locations used in Mineral Resource
estimation.
* Downhole surveys were not routinely done as initial
downhole surveys indicated little or no material
* Specification of the grid system used. deviation of the drill holes
* Quality and adequacy of topographic control. * Drill holes drilled during this project, as well as
visible historical drill holes, visible old mine
workings and shafts were surveyed by Exact Survey
Services using a real time differential GPS.
* All existing historic drill hole data was transformed
from the Cape System LO29/Clarke to LO29/WGS and
visible historic drill holes were also re-surveyed.
* All the drill holes were surveyed on the edge of the
casing and the elevation determined on the top of the
concrete cover.
* The survey was conducted using a single control
beacon (located on the farm Solomon's Tempel)
approximately 1.5 km from the drilling site.
============ =========================================================== ============================================================
Data spacing
and * Data spacing for reporting of Exploration Results. * The deposit is well drilled in the near surface
distribution mineralised areas on a grid spacing of approximately
30 m. In the less well drilled areas holes are spaced
* Whether the data spacing and distribution is approximately 100 m apart.
sufficient to establish the degree of geological and
grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedure(s) and * Drilling to 30 m is sufficient to establish grade
classifications applied. continuity consistent with that expected in a
Measured Mineral Resource. The less well drilled
areas are sufficiently drilled to establish
* Whether sample compositing has been applied. continuity consistent with that expected in an
Indicated or Inferred Mineral Resource.
============ =========================================================== ============================================================
Orientation
of data * Whether the orientation of sampling achieves unbiased * At Groenfontein the mineralisation occurs as
in relation sampling of possible structures and the extent to lenticular ore bodies occur in the Lease Granite
to which this is known, considering the deposit type. immediately below the pegmatite zone and appear to be
geological the product of "bubbles" of tin bearing fluids which
structure were trapped beneath the impermeable pegmatite. The
* If the relationship between the drilling orientation mineralisation is broadly stratabound in Lease
and the orientation of key mineralised structures is Granites which dips to the west and southwest on the
considered to have introduced a sampling bias, this property (see section 6)
should be assessed and reported if material.
* The drill hole grid (current and historically) were
drilled along a NW-SE trend parallel to the strike of
the granites and geochemical anomaly identified in
the 1970's (see section 8.3.1) and is considered
appropriate.
============ =========================================================== ============================================================
Sample * See section 9.2.7
security * The measures taken to ensure sample security.
============ =========================================================== ============================================================
Audits
or reviews * The results of any audits or reviews of sampling * The CP, Mr Michael Cronwright (Exploration Results)
techniques and data. of The MSA Group, has reviewed the sampling, logging
practices. Mineral Resource estimation method was
reviewed by Mr Jeremy Witley of the MSA Group.
* At the time of the exploration in 2011 the work was
reviewed by the CP, Dr L. Liebenberg
============ =========================================================== ============================================================
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this
section.)
Criteria JORC Code explanation Commentary
============== =============================================================== ===========================================================
Mineral
tenement * Type, reference name/number, location and ownership * The Prospecting Right, LP2206 PR was granted to
and land including agreements or material issues with third Greenhills on 14 July 2017 for a period of 5 years
tenure parties such as joint ventures, partnerships, ending on 13 July 20156, and ceded to Renetype (Pty)
status overriding royalties, native title interests, Ltd in terms of Section 11(1) of the MPRDA on 1
historical sites, wilderness or national park and December 2011.
environmental settings.
* Acknowledgement of renewal of the Prospecting Right
* The security of the tenure held at the time of by the DMR was received on 17 July 2015 and approval
reporting along with any known impediments to thereof for an additional 3 years is still pending
obtaining a licence to operate in the area.
* See CPR Section 4
============== =============================================================== ===========================================================
Exploration
done by * Acknowledgment and appraisal of exploration by other * Historical exploration has been carried out as
other parties. detailed in the CPR Section 8
parties
============== =============================================================== ===========================================================
Geology
* Deposit type, geological setting and style of * Included in theCPR in Sections 6 and 7
mineralisation.
============== =============================================================== ===========================================================
Drill
hole * A summary of all information material to the * Included in the CPR in Appendix 3 and 4
Information understanding of the exploration results including a
tabulation of the following information for all
Material drill holes:
o easting and northing
of the drill hole collar
o elevation or RL (Reduced
Level - elevation above
sea level in metres)
of the drill hole collar
o dip and azimuth of
the hole
o down hole length
and interception depth
o hole length.
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
============== =============================================================== ===========================================================
Data
aggregation * In reporting Exploration Results, weighting averaging * Drill hole intersections were reported using downhole
methods techniques, maximum and/or minimum grade truncations length weighted averaging methods.
(e.g. cutting of high grades) and cut-off grades are
usually Material and should be stated.
* A cut-off grade of 0.1 % Sn was applied and an upper
limit of 0.7 % Sn (see CPR Table 11--5, Sections 9.2
* Where aggregate intercepts incorporate short lengths and 11.1.10)
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 in detail.
* The assumptions used for any reporting of metal
equivalent values should be clearly stated.
============== =============================================================== ===========================================================
Relationship
between * These relationships are particularly important in the * Downhole lengths are reported and the true length.
mineralisation reporting of Exploration Results.
widths
and intercept
lengths * If the geometry of the mineralisation with respect to
the drill hole angle is known, its nature should be
reported.
* If it is not known and only the down hole lengths are
reported, there should be a clear statement to this
effect (e.g. 'down hole length, true width not
known').
============== =============================================================== ===========================================================
Diagrams
* Appropriate maps and sections (with scales) and * Maps and cross sections are attached in the body of
tabulations of intercepts should be included for any the report
significant discovery being reported These should
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional
views.
============== =============================================================== ===========================================================
Balanced
reporting * Where comprehensive reporting of all Exploration * The Company states that all results have been
Results is not practicable, representative reporting reported and comply with balanced reporting.
of both low and high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
============== =============================================================== ===========================================================
Other
substantive * Other exploration data, if meaningful and material, * Not material to this report.
exploration should be reported including (but not limited to):
data geological observations; geophysical survey results;
geochemical survey results; bulk samples - size and
method of treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
============== =============================================================== ===========================================================
Further * See CPR Section 15.3
work * The nature and scale of planned further work (e.g.
tests for lateral extensions or depth extensions or
large-scale step-out drilling).
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
============== =============================================================== ===========================================================
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2,
also apply to this section.)
Criteria JORC Code explanation Commentary
============== =========================================================== =================================================================
Database The following data verification
integrity * Measures taken to ensure that data has not been was carried out:
corrupted by, for example, transcription or keying * checking whether any gaps or overlaps occurred with
errors, between its initial collection and its use the sample positions in the database;
for Mineral Resource estimation purposes.
* the assay data were interrogated for zero grades and
* Data validation procedures used. other obviously erroneous data such as negative
grades;
* drill hole collar names were checked in order to
ensure no duplication of hole ID;
* The location of each surface drill hole was checked
and verified by site staff as well as the
lithological and assay tagging within those drill
holes;
* Survey points denoting the locations of the holes
were received and plotted in three dimensions using
Datamine alongside images obtained from the mine site
in order to assess whether or not the drill hole
collars were in the correct place.
============== =========================================================== =================================================================
Site visits
* Comment on any site visits undertaken by the * A site visit was made on 11 April 2011 to the
Competent Person and the outcome of those visits. Mokopane Tin Project by Dr Leon Liebenberg DSc MSc
Pr.Sci.Nat, a 'Competent Person' as that term is
defined in the JORC Code, and Mr Mike Lynn MSc of MSA,
* If no site visits have been undertaken indicate why accompanied by Professors Morris and Richard Viljoen,
this is the case. representatives of Greenhills, and also 'Competent
Persons'. A visit was made to the historical marked
drill locations and current verification drilling
activities on the property, and to the core store
situated in the nearby town of Mokopane.
* A site visit was carried out by Michael Cronwright of
MSA on 13 June 2017.
============== =========================================================== =================================================================
Geological
interpretation * Confidence in (or conversely, the uncertainty of) the * The overall geological interpretation is simplistic
geological interpretation of the mineral deposit. and local controls on grade distribution are not well
understood.
* Nature of the data used and of any assumptions made.
* Drilling data was used to interpret the geology
together with knowledge gained during historical
* The effect, if any, of alternative interpretations on mining in various reports.
Mineral Resource estimation.
* The mineralisation occurs within a single rock type
* The use of geology in guiding and controlling Mineral and was not constrained.
Resource estimation.
* A number of mineralised intersections along the
* The factors affecting continuity both of grade and western flank of the project area occur near the
geology. contact of the pegmatitic granite with the Lease
Granite were constrained using a digital terrain
model ("DTM"). This allowed for the separation of
mineralisation populations and prevented smearing of
the contact mineralisation with the disseminated
mineralisation.
* A more constrained interpretation could impact on the
grade and tonnage of the deposit, potentially with a
lower tonnage at higher grade.
============== =========================================================== =================================================================
Dimensions
* The extent and variability of the Mineral Resource * The mineralisation dips gently to the southwest, from
expressed as length (along strike or otherwise), plan flat to 10deg.
width, and depth below surface to the upper and lower
limits of the Mineral Resource.
* The Mineral Resource has been modelled as several
sheets of mineralisation between 2 m and 20 m thick.
* The Mineral Resource above the reported cut-off grade
occurs over a strike length of approximately 1 km and
between 250 m and 380 m on dip.
* The Mineral Resource occurs from surface to less than
60 m below surface.
============== =========================================================== =================================================================
Estimation
and modelling * The nature and appropriateness of the estimation * Datamine software was used to construct the
techniques technique(s) applied and key assumptions, including geological model and wireframe and GSLIB was used to
treatment of extreme grade values, domaining, estimate metal grades and estimate the Mineral
interpolation parameters and maximum distance of Resource.
extrapolation from data points. If a computer
assisted estimation method was chosen include a
description of computer software and parameters used. * The grades were estimated using Ordinary Kriging of
tin grades of 1 m composites into a three dimensional
block model.
* The availability of check estimates, previous
estimates and/or mine production records and whether
the Mineral Resource estimate takes appropriate * The block model cell size is 10 mX by 10 mY by 2 mZ.
account of such data.
* Distances between drill holes are typically between
* The assumptions made regarding recovery of approximately 20 m and 40 m.
by-products.
* Samples were selected for estimation using a search
* Estimation of deleterious elements or other non-grade ellipse orientated in the plane of mineralisation
variables of economic significance (e.g. sulphur for with the major direction being 140deg in the
acid mine drainage characterisation). horizontal plane, the semi-major being 50 degin the
horizontal plane and the shortest direction being
vertical.
* In the case of block model interpolation, the block
size in relation to the average sample spacing and
the search employed. * The estimate was carried out in three passes
* Any assumptions behind modelling of selective mining * Pass 1 - minimum of three and a maximum of ten
units. composites were required to be selected within the
flat search ellipse of 50 m by 25 m by 1 m. Maximum
of two composites per drill hole.
* Any assumptions about correlation between variables.
* Pass 2- minimum of three and a maximum of ten
* Description of how the geological interpretation was composites were required to be selected within the
used to control the resource estimates. flat search ellipse of 120 m by 60 m by 2 m. Maximum
of two composites per drill hole.
* Discussion of basis for using or not using grade
cutting or capping. * Pass 3 - minimum of three and a maximum of ten
composites were required to be selected within the
flat search ellipse of 200 m by 90 m by 3 m. Maximum
* The process of validation, the checking process used, of two composites per drill hole.
the comparison of model data to drill hole data, and
use of reconciliation data if available.
* A top-cut of 0.70% Sn was applied to the 1 m
composite data. 38 out of 4866 samples were affected
by the top-cut. A number of statistical charts were
examined for outlier data in order to derive the
top-cut value.
* The Mineral Resource generally occurs within the
variable spaced drilled area and the extents are
limited in areas by barren drill holes. Extrapolation
to less than 100 m away from drill holes occurs in
some areas, depending on the number of samples
available to satisfy the search criteria.
* Selective Mining Units were not estimated.
* No deleterious elements or bi-products were estimated
* The model was validated by trend analysis ("Swath
Plots") that compare the model with the input data
along a number of corridors through the model and
cross validation, which interrogates the difference
between the samples in the block with the block
estimate.
============== =========================================================== =================================================================
Moisture
* Whether the tonnages are estimated on a dry basis or * Tonnages were estimated on a dry basis
with natural moisture, and the method of
determination of the moisture content.
============== =========================================================== =================================================================
Cut-off
parameters * The basis of the adopted cut-off grade(s) or quality * A preferred cut-off grade of 0.1% tin has been
parameters applied. applied by benchmarking the project against other
projects worldwide, and by applying an average cash
buyer (London Metal Exchange) tin value over the past
three years (USD 18,000).
============== =========================================================== =================================================================
Mining
factors * Assumptions made regarding possible mining methods, * Portions of the deposit could be mined by open-pit
or assumptions minimum mining dimensions and internal (or, if methods. The deposit is wide and occurs close to
applicable, external) mining dilution. It is always surface.
necessary as part of the 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 explanation of the basis
of the mining assumptions made.
============== =========================================================== =================================================================
Metallurgical
factors * The basis for assumptions or predictions regarding * Cassiterite is amenable to gravity concentration
or assumptions metallurgical amenability. It is always necessary as methods
part of the process of determining reasonable
prospects for eventual economic extraction to
consider potential metallurgical methods, but the
assumptions regarding metallurgical treatment
processes and parameters made when reporting Mineral
Resources may not always be rigorous. Where this is
the case, this should be reported with an explanation
of the basis of the metallurgical assumptions made.
============== =========================================================== =================================================================
Environmental
factors * Assumptions made regarding possible waste and process * It is assumed that tailings and waste-rock dumps
or assumptions residue disposal options. It is always necessary as would be constructed on site as both deposits have
part of the process of determining reasonable experienced previous mining and are disturbed
prospects for eventual economic extraction to
consider the potential environmental impacts of the
mining and processing operation. While at this stage
the determination of potential environmental impacts,
particularly for a greenfields project, may not
always be well advanced, the status of early
consideration of these potential environmental
impacts should be reported. Where these aspects have
not been considered this should be reported with an
explanation of the environmental assumptions made.
============== =========================================================== =================================================================
Bulk density
* Whether assumed or determined. If assumed, the basis * A specific gravity value of 2.65 was applied to the
for the assumptions. If determined, the method used, model in order to convert block volumes into
whether wet or dry, the frequency of the measurements tonnages. This figure is an average value based on
, the gas pycnometry data derived from the sample
the nature, size and representativeness of the pulps.
samples.
* The bulk density for bulk material must have been
measured by methods that adequately account for void
spaces (vugs, porosity, etc.), moisture and
differences between rock and alteration zones within
the deposit.
* Discuss assumptions for bulk density estimates used
in the evaluation process of the different materials.
============== =========================================================== =================================================================
Classification
* The basis for the classification of the Mineral * Block estimates estimated within the first variogram
Resources into varying confidence categories. range of the double structure spherical models were
classified as being within the Measured Mineral
Resource category. The principle range of 50 m
* Whether appropriate account has been taken of all approximately represents two thirds of the total
relevant factors (ie relative confidence in variance. Visual inspection of these blocks will
tonnage/grade estimations, reliability of input data, reveal that they are quite contiguous along strike
confidence in continuity of geology and metal values, throughout the deposit, and not prevalent in isolated
quality, quantity and distribution of the data). clusters.
* Whether the result appropriately reflects the * Mineral Resources estimated via the second structure
Competent Person's view of the deposit. of the double spherical model were classified as
Indicated
* Mineral Resources estimated at about one and half
times the longest variogram ranges were classified as
Inferred.
============== =========================================================== =================================================================
Audits
or reviews * The results of any audits or reviews of Mineral * No audits of the estimate have been carried out.
Resource estimates.
============== =========================================================== =================================================================
Discussion
of relative * Where appropriate a statement of the relative * The estimates are of a global nature, recoverable
accuracy/ accuracy and confidence level in the Mineral Resource resource estimation having not been carried out.
confidence estimate using an approach or procedure deemed
appropriate by the Competent Person. For example, the
application of statistical or geostatistical
procedures to quantify the relative 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 to
global or local estimates, and, if local, state 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 confidence
of the estimate should be compared with production
data, where available.
============== =========================================================== =================================================================
APPIX 2: JORC (2012) TABLE 1 - ZAAIPLAATS
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
============ =========================================================== ================================================================
Sampling
techniques * Nature and quality of sampling (e.g. cut channels, * 15 channels were sampled by Greenhills by chip
random chips, or specific specialised industry sampling underground and a further 15 from open pit
standard measurement tools appropriate to the workings. Samples were taken over 1 m intervals.
minerals under investigation, such as down hole gamma
sondes, or handheld XRF instruments, etc.). These
examples should not be taken as limiting the broad * 43 BQ size diamond drill holes (36.5 mm core
meaning of sampling. diameter) were completed by Greenhills on a grid of
approximately 50 m by 50 m. The holes range in depth
from 19.95 m to 141.11 m and a total of 2,067.26 m
* Include reference to measures taken to ensure sample were drilled in 2012 and 2013. The drill holes were
representivity and the appropriate calibration of any samples at 1 m intervals, although the length varies
measurement tools or systems used. in order to account for mineralisation intensity and
lithological changes. The cores were cut
longitudinally in half.
* Aspects of the determination of mineralisation that
are Material to the Public Report.
* The half core samples were prepared at Set Point
Laboratory's (SPL) preparation facility in Mokopane
* In cases where 'industry standard' work has been done where they were crushed to 80%
this would be relatively simple (e.g. 'reverse
circulation drilling was used to obtain 1 m samples
from which 3 kg was pulverised to produce a 30 g * The chip sample pulps were prepared at SPL in
charge for fire assay'). In other cases more Mokopane and assayed using a handheld Niton XRF.
explanation may be required, such as where there is
coarse gold that has inherent sampling problems.
Unusual commodities or mineralisation types (e.g.
submarine nodules) may warrant disclosure of detailed
information.
============ =========================================================== ================================================================
Drilling
techniques * Drill type (e.g. core, reverse circulation, open-hole * 15 channels were sampled by Greenhills by chip
hammer, rotary air blast, auger, Bangka, sonic, etc.) sampling underground and a further 15 from open pit
and details (e.g. core diameter, triple or standard workings.
tube, depth of diamond tails, face-sampling bit or
other type, whether core is oriented and if so, by
what method, etc.). * 43 BQ size diamond drill holes (36.5 mm core
diameter) were completed by Greenhills on a grid of
approximately 50 m by 50 m. The holes range in depth
from 19.95 m to 141.11 m and a total of 2,067.26 m
were drilled in 2012 and 2013. Core were not
oriented.
============ =========================================================== ================================================================
Drill
sample * Method of recording and assessing core and chip * No vugs or enriched veins were sampled by the channel
recovery sample recoveries and results assessed. samples in order to ensure that the samples were
representative of the disseminated mineralisation.
Sample sections were re-sampled if the faces were not
* Measures taken to maximise sample recovery and ensure accurate enough and some were extended to cover the
representative nature of the samples. full extent of the mineralisation. SRK examined a
number of channel sample sections.
* Whether a relationship exists between sample recovery
and grade and whether sample bias may have occurred * The core recoveries for the drilling were in excess
due to preferential loss/gain of fine/coarse of 98%. Some holes had excellent recoveries of close
material. to 100%. The core observed by SRK was competent, and
relatively un-fractured, supporting the good core
recoveries reported.
============ =========================================================== ================================================================
Logging
* Whether core and chip samples have been geologically * All cores were geologically logged. The geologist
and geotechnically logged to a level of detail to noted lithology, colour, grain size, veins,
support appropriate Mineral Resource estimation, alteration, the percentages and sizes of mafic
mining studies and metallurgical studies. minerals, and ore minerals such as cassiterite and
sulphides, according to standard look-up tables and
formats.
* Whether logging is qualitative or quantitative in
nature. Core (or costean, channel, etc.) photography.
* Fracture angles, core lengths, core recoveries,
percentages of solid core, and Rock Quality
* The total length and percentage of the relevant Designation ("RQD") were recorded according to a
intersections logged. fixed procedure and by making use of a pro-forma
geotechnical log sheet.
* Cores were photographed once marked up and cleaned.
============ =========================================================== ================================================================
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * The BQ size cores were cut longitudinally in half and
and sample half or all core taken. one half taken as the sample. Nominal 1 m sample
preparation length intervals were taken continuously through the
mineralised zones for both core and chip channel
* If non-core, whether riffled, tube sampled, rotary samples. Lengths were shortened where a change in
split, etc. and whether sampled wet or dry. geology or mineralisation intensity was observed.
* For all sample types, the nature, quality and * The half core samples and chip samples were prepared
appropriateness of the sample preparation technique. at Set Point Laboratory's (SPL) preparation facility
in Mokopane where they were crushed to 80%
* Quality control procedures adopted for all
sub-sampling stages to maximise representivity of * The sampling techniques and sizes used are considered
samples. appropriate for the fine grained cassiterite
mineralisation.
* Measures taken to ensure that the sampling is
representative of the in situ material collected, * No field duplicates (half core / adjacent twin
including for instance results for field channels) were done.
duplicate/second-half sampling.
* Whether sample sizes are appropriate to the grain
size of the material being sampled.
============ =========================================================== ================================================================
Quality
of assay * The nature, quality and appropriateness of the * All samples were first crushed and milled at Set
data assaying and laboratory procedures used and whether Point's sample prep lab in Mokopane and then the
and the technique is considered partial or total. pulps were assayed using a Nition XL3d handheld XRF,
laboratory and samples with values >0.01% Sn (100 ppm) were sent
tests to Set Point (Johannesburg) for assay.
* For geophysical tools, spectrometers, handheld XRF
instruments, etc., the parameters used in determining
the analysis including instrument make and model, * At the time of assaying Set Point was ISO17025
reading times, calibrations factors applied and their accredited for the sample preparation done, the
derivation, etc. analytical method used and the elements analysed for,
apart from Sn and W.
* Nature of quality control procedures adopted (e.g.
standards, blanks, duplicates, external laboratory * All samples were analysed by using XRF - pressed
checks) and whether acceptable levels of accuracy (ie pellets for samples with
lack of bias) and precision have been established.
* For XRF using pressed pellets, an aliquot (1.3 g) and
wax binder (11.7 g) are milled together. The
resulting mixture is put into an aluminium cup and
pressed for 15 seconds at 20 metric tons pressure for
15 seconds in a pellet press. The pressed pellet is
read on an XRF spectrometer.
* For XRF using fused disks an ignited sample mass of
1.1g is fused with 9.9g flux (lithium-tetra-borate)
and fused in a clean platinum dish. The fusion melt
is poured into a clean platinum mould and allowed to
solidify. The solidified disc is analysed by
calibrated XRF spectrometer using the "silicate"
program provided by the manufacturer of the
equipment.
* The laboratory's QA/QC programme consisted of
* For pressed pellet XRF, insertion of a CRM sample
every 30 to 40(th) field sample and one in-house
standard per 100 samples. One blank sample per 100
field samples. Three pulp duplicates per 100 field
samples.
* For fused disk XRF, a 75G Canadian CRM is used for
sample preparation quality control. A fused disc of
this material is inserted for every 30 to 40 samples
analysed. At least one duplicate is selected for
every batch or job analysed. Instrument control discs
are read together with all jobs to confirm the
calibration of the instrument at similar
concentration levels as that of the samples.
Additional repeats on the samples are also done by
SPL.
* For determination of SG using gas pycnometry two
samples with certified SGs of 4.15 and 2.66 are
tested daily and random duplicate samples are taken
from each batch.
* After assessing the results of SPLs QA/QC samples, it
was concluded that the assays carried out by SPL are
accurate and precise and free from significant
contamination.
* The company geologists routinely carried out its own
QA/QC checks external to the laboratory, consisting
of the insertion of CRM, blank and duplicate samples.
* After assessing the results of the external QA/QC
samples, it was concluded that the assays carried out
by SPL are accurate and precise and free from
significant contamination.
* The handheld Niton XRF assays that were completed on
the chip samples were verified by laboratory XRF
assaying of 25 samples by SPL. The handheld XRF
consistently under-reported the tin grade relative to
the laboratory assay and an overall bias of 19% was
noted. No corrections were applied to the data to
account for the bias as the absolute bias was
inconsistent.
============ =========================================================== ================================================================
Verification
of sampling * The verification of significant intersections by * No independent verification sampling was completed.
and assaying either independent or alternative company personnel.
* No twin-hole drilling was performed.
* The use of twinned holes.
* The logging was carried out by handwritten recording
* Documentation of primary data, data entry procedures, of observations on a standard template and later
data verification, data storage (physical and captured digitally in Microsoft Excel spreadsheets.
electronic) protocols. The data were transferred from site to the company
server on a weekly basis. The company server has a
back-up system.
* Discuss any adjustment to assay data.
* No adjustments to assay data were made.
============ =========================================================== ================================================================
Location
of data * Accuracy and quality of surveys used to locate drill * A contract surveyor (Exact Survey Services) located
points holes (collar and down-hole surveys), trenches, mine the final collar coordinates using a real time
workings and other locations used in Mineral Resource differential Trimble GPS.
estimation.
* The drill holes were not surveyed down-the-hole. The
* Specification of the grid system used. holes are short (40-100 m in length) and little
deviation is expected in the competent granite.
* Quality and adequacy of topographic control.
* The grid system used is WGS84 LO29.
* Bushveld Minerals commissioned Badger Mining and
Consulting (Pty) Ltd to conduct a detailed survey of
the old working of the Zaaiplaats Mine. This survey
included two open pits (a smaller western pit and a
larger eastern pit), and underground workings which
connect these two pits.
* The topographic surface was derived from SRTM data
that was modified using the surveyed collar locations
for an accurate fit with the collars.
* Topographic control, is adequate for the purpose of
Mineral Resource estimation but a higher resolution
survey will be required as the project progresses.
============ =========================================================== ================================================================
Data
spacing * Data spacing for reporting of Exploration Results. * The drill holes are drilled at an approximate spacing
and of 50 m over the deposit with more closely spaced
distribution channel sampling in the mine exposures.
* Whether the data spacing and distribution is
sufficient to establish the degree of geological and
grade continuity appropriate for the Mineral Resource * The data spacing and distribution are sufficient to
and Ore Reserve estimation procedure(s) and establish grade continuity consistent with that
classifications applied. expected in an Inferred Mineral Resource and an
Indicated Mineral Resource in places.
* Whether sample compositing has been applied.
* For the Exploration results reported in this document
the samples were composited over the mineralised
lengths for the chipped channel samples. Exploration
results not reported for drilling, these being
superseded by the Mineral Resource estimate for which
3 m composites were used.
============ =========================================================== ================================================================
Orientation
of data * Whether the orientation of sampling achieves unbiased * Drill holes were drilled vertically through
in relation sampling of possible structures and the extent to mineralisation that is interpreted to be gently
to which this is known, considering the deposit type. dipping (5deg to 20deg). Channel samples were chipped
geological in vertical sections.
structure
* If the relationship between the drilling orientation
and the orientation of key mineralised structures is * No bias was considered to have been introduced by the
considered to have introduced a sampling bias, this sampling orientation.
should be assessed and reported if material.
============ =========================================================== ================================================================
Sample
security * The measures taken to ensure sample security. * There is a documented chain of custody from the
drilling rigs to the core-yard and to SPL.
* Sample crushing and milling is carried out at an
independent commercial laboratory.
============ =========================================================== ================================================================
Audits
or reviews * The results of any audits or reviews of sampling * SRK examined the sampling that was carried out and
techniques and data. considered it acceptable.
============ =========================================================== ================================================================
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this
section.)
Criteria JORC Code explanation Commentary
============== =============================================================== ===========================================================
Mineral
tenement * Type, reference name/number, location and ownership * Prospecting Right (PR) LP 2205 PR with protocol
and land including agreements or material issues with third reference 47/2010, issued by the Department of
tenure parties such as joint ventures, partnerships, Minerals and Energy (DME) (now the Department on
status overriding royalties, native title interests, Mineral Resources (DMR) on 14 July 2010 in the name
historical sites, wilderness or national park and of VM Investment Company (Pty) Ltd (VMIC). Valid for
environmental settings. five years, from 14 July 2010 to 13 July 2015, grants
exclusive prospecting rights to the holder. The PR
gives VMIC the right to explore for tin, rare earth
* The security of the tenure held at the time of metals, fluorspar, molybdenum, gold, arsenic, uranium
reporting along with any known impediments to ,
obtaining a licence to operate in the area. zirconium, iron ore and zinc.
* On 1 December 2011 consent in terms Section 11(1) of
the MPRDA for the cession of the Prospecting Right to
Renetype (Pty) Ltd was granted.
* Acknowledgement of the renewal application was
received from the DMR on 17 July 2015 and is still
pending approval. Renewal will be for another 3
years.
* The acknowledgement states that the licence remains
in place until such time as a final decision is made
to either grant or reject the renewal application.
The renewal was still pending as at the effective
date of this report.
============== =============================================================== ===========================================================
Exploration
done * Acknowledgment and appraisal of exploration by other * Cassiterite was discovered in 1905 by prospectors on
by other parties. the farms Roodepoort 222KR, Groenfontein 227 KR and
parties Zaaiplaats 223KR.
* The Zaaiplaats Tin Mining Company produced
cassiterite concentrate and tin metal continuously
from its inception to its closure in 1989. 17,300
Tonnes of tin metal were produced from the farm
Zaaiplaats. 223KR
============== =============================================================== ===========================================================
Geology
* Deposit type, geological setting and style of * Tin mineralisation at the project is found in the
mineralisation. Lebowa Granite Suite, a voluminous suite of granitic
rocks found above the layered mafic rocks of the
Bushveld Complex.
* Tin mineralisation is restricted to the Lease and
Bobbejaankop Granites where it occurs in pipe-like
bodies, sub-horizontal lenticular bodies and as a
sub-horizontal disseminated low grade bodies within
both granites. All tin mineralisation is in the form
of cassiterite (SnO2) and is of endogenic and
syngenetic origin within the granites.
* The mineralisation for within the Mineral Resource is
disseminated and occurs in five sheets within the
Bobbejaankop Granite. The higher grade pipe and vein
style mineralisation have been out with the more
voluminous disseminated style of mineralisation
remaining.
============== =============================================================== ===========================================================
Drill
hole * A summary of all information material to the * Detailed drill hole information is not material to
Information understanding of the exploration results including a this report, the exploration results having been
tabulation of the following information for all superseded by the Mineral Resource estimate.
Material drill holes:
o easting and northing
of the drill hole
collar
o elevation or RL
(Reduced Level - elevation
above sea level in
metres) of the drill
hole collar
o dip and azimuth
of the hole
o down hole length
and interception depth
o hole length.
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
============== =============================================================== ===========================================================
Data
aggregation * In reporting Exploration Results, weighting averaging * Detailed drill hole information is not material to
methods techniques, maximum and/or minimum grade truncations this report, the exploration results having been
(e.g. cutting of high grades) and cut-off grades are superseded by the Mineral Resource estimate.
usually Material and should be stated.
* Where aggregate intercepts incorporate short 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 in detail.
* The assumptions used for any reporting of metal
equivalent values should be clearly stated.
============== =============================================================== ===========================================================
Relationship
between * These relationships are particularly important in the * Detailed drill hole information is not material to
mineralisation reporting of Exploration Results. this report, the exploration results having been
widths superseded by the Mineral Resource estimate.
and intercept
lengths * If the geometry of the mineralisation with respect to
the drill hole angle is known, its nature should be
reported.
* If it is not known and only the down hole lengths are
reported, there should be a clear statement to this
effect (e.g. 'down hole length, true width not
known').
============== =============================================================== ===========================================================
Diagrams
* Appropriate maps and sections (with scales) and * Detailed drill hole information is not material to
tabulations of intercepts should be included for any this report, the exploration results having been
significant discovery being reported These should superseded by the Mineral Resource estimate.
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional
views.
============== =============================================================== ===========================================================
Balanced * Not applicable
reporting * Where comprehensive reporting of all 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
substantive * Other exploration data, if meaningful and material, * Not material to this report.
exploration should be reported including (but not limited to):
data geological observations; geophysical survey results;
geochemical survey results; bulk samples - size and
method of treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
============== =============================================================== ===========================================================
Further
work * The nature and scale of planned further work (e.g. * No further exploration work is planned at this stage.
tests for lateral extensions or depth extensions or
large-scale step-out drilling).
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
============== =============================================================== ===========================================================
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2,
also apply to this section.)
Criteria JORC Code explanation Commentary
============== =========================================================== ================================================================
Database
integrity * Measures taken to ensure that data has not been * SRK audited the database and was satisfied that the
corrupted by, for example, transcription or keying data are reliable.
errors, between its initial collection and its use
for Mineral Resource estimation purposes.
* The drill hole data were validated for gaps and
missing intervals, unusual collar coordinates and
* Data validation procedures used. consistency of drill hole names.
* Below detection limit samples were assigned a value
of half the detection limit.
============== =========================================================== ================================================================
Site
visits * Comment on any site visits undertaken by the * A site visit was undertaken by Mr A.S. Page of SRK on
Competent Person and the outcome of those visits. the 6th of March 2013 to the Zaaiplaats exploration
site, exploration core storage facility in Mokopane
and the Set Point sample preparation facility in
* If no site visits have been undertaken indicate why Mokopane. The Set Point Laboratories in Isando,
this is the case. Johannesburg, were also visited by Mr A.S Page and Dr
H. F. J. Theart on the 10th of May 2013.
* A site visit was carried out by Michael Cronwright of
MSA on 13 June 2017.
============== =========================================================== ================================================================
Geological
interpretation * Confidence in (or conversely, the uncertainty of) the * Confidence in the models is good.
geological interpretation of the mineral deposit.
* The geological model was constructed based on surface
* Nature of the data used and of any assumptions made. drilling and a small amount of underground and open
pit chip sampling. Reverse Circulation (RC) and
Diamond Drilling (DD) exploration drilling have
* The effect, if any, of alternative interpretations on historically been undertaken.
Mineral Resource estimation.
* In addition to the drilling database, used surveyed
* The use of geology in guiding and controlling Mineral contours of the two open pits and the underground
Resource estimation. workings. The latest surface topography contours were
obtained for the surface topography from the Chief
Directorate Surveys and Mapping ("CDSM") South Africa
* The factors affecting continuity both of grade and for the area covering the Zaaiplaats project and its
geology. surrounds.
* The wireframe models were constructed by linking
strings generated on dip and strike sections
interpreted by the company geologists that depict the
geology and sample grade distribution. The
mineralisation was defined using a tin grade
threshold of 0.01%.
* The five planer mineralised zones were interpreted
interrupted by an east west striking fault with a
throw of between 10 m and 20 m with scissor
displacement.
* No alternative interpretations were considered.
============== =========================================================== ================================================================
Dimensions
* The extent and variability of the Mineral Resource * The Mineral Resource Extends from surface to
expressed as length (along strike or otherwise), plan approximately 190 m below surface. The maximum extent
width, and depth below surface to the upper and lower on the dip plane is approximately 380 m and the
limits of the Mineral Resource. maximum strike length is 600 m.
* The mineralisation is open at depth.
* The mineralised zones are between approximately 5 m
and 20 m thick.
* The tabular mineralised zones generally dip between
5deg and 15deg to the northwest, with the steeper
dipping areas being to the southwest.
============== =========================================================== ================================================================
Estimation
and modelling * The nature and appropriateness of the estimation * Datamine Studio 3 (Datamine; Version 3.21) was used
techniques technique(s) applied and key assumptions, including to construct the geological solids, prepare assay
treatment of extreme grade values, domaining, data for geostatistical analysis, and construct the
interpolation parameters and maximum distance of block model. Datamine was used to estimate metal
extrapolation from data points. If a computer grades and estimate the Mineral Resources using
assisted estimation method was chosen include a Ordinary Kriging (OK). Isatis software was used for
description of computer software and parameters used. geostatistical analysis and variography.
* The availability of check estimates, previous * The estimation was carried out by ordinary kriging
estimates and/or mine production records and whether (OK) of the tin grades of 3 m composite sample data
the Mineral Resource estimate takes appropriate into block models. The individual M Zones were
account of such data. treated as individual domains whereby samples from
one domain were not allowed to influence another.
* The assumptions made regarding recovery of
by-products. * Parent cell size of 20 mX by 20 mY by 3 mZ. Diamond
core drilling was on 50 m spaced sections and
additional sample data were used from chip channel
* Estimation of deleterious elements or other non-grade sections. The cell size is 2/5 of the diamond
variables of economic significance (e.g. sulphur for drilling section spacing and the Z cell size equals
acid mine drainage characterisation). the estimation composite length.
* In the case of block model interpolation, the block * The composite data from each of the five zones was
size in relation to the average sample spacing and investigated for outliers and top-cuts were applied
the search employed. to the individual zones.
* Any assumptions behind modelling of selective mining * M0 - 2100 ppm, 3/42 capped, metal reduction 42.4%
units.
* M1 - 3140 ppm, 8/137 capped, metal reduction, 6.7%
* Any assumptions about correlation between variables.
* M2 - 3270 ppm, 6/126 capped, metal reduction, 5.7%
* Description of how the geological interpretation was
used to control the resource estimates.
* M3 - 2175 ppm, 5/97 capped, metal reduction, 13.4%
* Discussion of basis for using or not using grade
cutting or capping. * M4 - None
* The process of validation, the checking process used, The large metal reduction
the comparison of model data to drill hole data, and in M0 was due to an
use of reconciliation data if available. extreme value of 19,285.8
ppm Sn).
* A minimum of 5 composites and a maximum of 12 were
used to estimate a block. The search ellipsoid for
estimation was orientated in the plane of
mineralisation with a dip and strike search distance
of 54 m and 6 m down dip as indicated by the results
of the variography.
* The Mineral Resource was extrapolated between 50 m
and 150 m from the drill holes.
* Copper and Tungsten were estimated as potential
bi-products
* No deleterious elements were estimated.
* A recoverable estimate was not carried out.
* No production data were available for reconciliation.
* The models were validated by visual validations of
the estimates on a section by section basis, global
statistical comparisons of the data on a zone by zone
basis, as well as swath analyses which compare the
model estimates in slices with the data within the
slice. The results were acceptable.
============== =========================================================== ================================================================
Moisture
* Whether the tonnages are estimated on a dry basis or * Tonnages were estimated on a dry basis
with natural moisture, and the method of
determination of the moisture content.
============== =========================================================== ================================================================
Cut-off
parameters * The basis of the adopted cut-off grade(s) or quality * In Situ Cut-Off-Grade 0.1 % (1000 grams per tonne
parameters applied.
============== =========================================================== ================================================================
Mining
factors * Assumptions made regarding possible mining methods, * Portions of the deposit could be mined by open-pit
or assumptions minimum mining dimensions and internal (or, if methods. The deposit is wide and occurs close to
applicable, external) mining dilution. It is always surface.
necessary as part of the 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 explanation of the basis
of the mining assumptions made.
============== =========================================================== ================================================================
Metallurgical
factors * The basis for assumptions or predictions regarding * Cassiterite is amenable to gravity concentration
or assumptions metallurgical amenability. It is always necessary as methods.
part of the process of determining reasonable
prospects for eventual economic extraction to
consider potential metallurgical methods, but the
assumptions regarding metallurgical treatment
processes and parameters made when reporting Mineral
Resources may not always be rigorous. Where this is
the case, this should be reported with an explanation
of the basis of the metallurgical assumptions made.
============== =========================================================== ================================================================
Environmental
factors * Assumptions made regarding possible waste and process * It is assumed that waste-rock and tailings facilities
or assumptions residue disposal options. It is always necessary as would be constructed on site. The site has
part of the process of determining reasonable experienced mining and is environmentally disturbed
prospects for eventual economic extraction to
consider the potential environmental impacts of the
mining and processing operation. While at this stage
the determination of potential environmental impacts,
particularly for a greenfields project, may not
always be well advanced, the status of early
consideration of these potential environmental
impacts should be reported. Where these aspects have
not been considered this should be reported with an
explanation of the environmental assumptions made.
============== =========================================================== ================================================================
Bulk
density * Whether assumed or determined. If assumed, the basis * SG was determined at Set Point Laboratories using a
for the assumptions. If determined, the method used, gas pycnometer on pulverised samples. A total of
whether wet or dry, the frequency of the measurements 1,486 measurements were taken in the mineralised
, zones and none outside of them.
the nature, size and representativeness of the
samples.
* The average SG of the samples for each M Zone is as
follows:
* The bulk density for bulk material must have been
measured by methods that adequately account for void
spaces (vugs, porosity, etc.), moisture and * M0 2.70
differences between rock and alteration zones within
the deposit.
* M1 2.69
* Discuss assumptions for bulk density estimates used
in the evaluation process of the different materials. * M2 2.70
* M3 2.69
* M4 2.69
============== =========================================================== ================================================================
Classification
* The basis for the classification of the Mineral * Measured: The blocks must have been estimated by OK
Resources into varying confidence categories. and be within the modelled orebody wireframes. At
least 6 composite samples must have been used to
estimate the block and the sample points used to
* Whether appropriate account has been taken of all estimate the block grade should be within the first
relevant factors (ie relative confidence in search volume. The slope of regression should be
tonnage/grade estimations, reliability of input data, above 0.9 and the area should be continuous between
confidence in continuity of geology and metal values, drill holes and not isolated around single drill
quality, quantity and distribution of the data). holes.
* Whether the result appropriately reflects the * Indicated: The blocks must have been estimated by OK
Competent Person's view of the deposit. and be within the modelled orebody wireframes. At
least 5 composite samples must have been used to
estimate the block and the sample points used to
estimate the block grade should be within the second
search volume. The slope of regression should be
above 0.5 and the area should be continuous between
drill holes and not isolated around single drill
holes.
* Inferred: The blocks must have been estimated by OK
and be within the modelled orebody wireframes. At
least 5 composite samples must have been used to
estimate the block and the sample points used to
estimate the block grade should be within the third
search volume. The slope of regression should be
between 0 and 0.5.
* SRK is satisfied that the geological modelling
honours the current geological information and
knowledge. The location of the samples and the assay
data are sufficiently reliable to support resource
evaluation. The sampling information was acquired
primarily by core drilling on sections spaced at 50
metres along strike on average. Together with these
diamond drill holes there were chip sample sections
taken from the old open pit faces and in underground
workings in areas where the mineralisation was
exposed.
============== =========================================================== ================================================================
Audits
or reviews * The results of any audits or reviews of Mineral * No audits or external reviews have been completed.
Resource estimates. The estimate was subject to SRK's internal review
process.
============== =========================================================== ================================================================
Discussion
of relative * Where appropriate a statement of the relative * No statistical or geostatistical procedures were used
accuracy/ accuracy and confidence level in the Mineral Resource to quantify the relative accuracy of the resource.
confidence estimate using an approach or procedure deemed
appropriate by the Competent Person. For example, the
application of statistical or geostatistical * SRK considers that the blocks classified in the
procedures to quantify the relative accuracy of the Indicated category, have a level of confidence that
resource within stated confidence limits, or, if such is sufficient to allow the appropriate application of
an approach is not deemed appropriate, a qualitative technical and economic parameters to support mine
discussion of the factors that could affect the planning and to allow evaluation of the economic
relative accuracy and confidence of the estimate. viability of the deposit. Conversely, those
classified in the Inferred category, have
insufficient confidence in the estimate to allow for
* The statement should specify whether it relates to the meaningful application of technical and economic
global or local estimates, and, if local, state the parameters or to enable an evaluation of economic
relevant tonnages, which should be relevant to viability.
technical and economic evaluation. Documentation
should include assumptions made and the procedures
used. * No production data was available to compare with the
estimate, historical mining was focussed on the high
grade pipes.
* These statements of relative accuracy and confidence
of the estimate should be compared with production
data, where available.
============== =========================================================== ================================================================
Technical Glossary
Blanks Samples known to contain
no mineralisation which
are submitted to the laboratory
to check for contamination
These form part of the
QA/QC.
--------------------------- -----------------------------------
Cassiterite The principal tin-bearing
mineral, tin oxide (SnO(2)
). Contains 78.7% Sn
--------------------------- -----------------------------------
DMR The Department of Mineral
Resources (South Africa)
--------------------------- -----------------------------------
Field duplicates Samples which have been
relabelled and resubmitted
for assay at the original
laboratory in order to
check the accuracy and
precision of the original
analysis. Also serves as
a check on the appropriateness
of the sample size and
subsampling methodology.
These form part of the
QA/QC.
--------------------------- -----------------------------------
Fault A fracture or fracture
zone, along which displacement
of opposing sides has occurred.
--------------------------- -----------------------------------
Geotechnical Relating to the engineering
behaviour (rocks strength,
fractures etc.) of the
rock
--------------------------- -----------------------------------
Granite A generic term for coarse
grained igneous rock composed
primarily of quartz and
feldspar.
--------------------------- -----------------------------------
Inferred Mineral Resource Defined by the JORC (2012)
code that part of a mineral
resource for which tonnage,
grade and mineral content
can be estimated with a
low level of confidence.
It is inferred from geological
evidence and assumed, but
not verified, geological
and/or grade continuity.
It is based on information
gathered through appropriate
techniques from locations
such as outcrops, trenches,
pits, workings and drill
holes which may be limited
or of uncertain quality
and reliability
--------------------------- -----------------------------------
Indicated Mineral Resource that part of a mineral
resource for which tonnage,
densities, shape, physical
characteristics, grade
and mineral content can
be estimated with a reasonable
level of confidence. It
is based on exploration,
sampling and testing information
gathered through appropriate
techniques from locations
such as outcrops, trenches,
pits, workings and drill
holes. The locations are
too widely or inappropriately
spaced to confirm geological
and/or grade continuity
but are spaced closely
enough for continuity to
be assumed
--------------------------- -----------------------------------
JORC (2012) the Australasian Code for
Reporting of Exploration
Results, Mineral Resources
and Ore Reserves (2012
edition), published by
The Joint Ore Reserves
Committee of the Australasian
Institute of Mining and
Metallurgy, Australian
Institute of Geoscientists
and Minerals Council
of Australia ("JORC")
--------------------------- -----------------------------------
Lease Granite A fine-grained pink-red
granite found at the Groenfontein
and Zaaiplaats deposits
--------------------------- -----------------------------------
Lenticular Lens-shaped
--------------------------- -----------------------------------
Lithological logging, Recording of information
relating to the lithology
(rock type) of the drill
core
--------------------------- -----------------------------------
Ma Million years.
--------------------------- -----------------------------------
Measured Mineral Resource that part of a mineral
resource for which tonnage,
densities, shape, physical
characteristics, grade
and mineral content can
be estimated with a high
level of confidence. It
is based on detailed and
reliable exploration, sampling
and testing information
gathered through appropriate
techniques from locations
such as outcrops, trenches,
pits, workings and drill
holes. The locations are
spaced closely enough to
confirm geological and
grade continuity
--------------------------- -----------------------------------
Mineralisation commonly taken to be cassiterite
--------------------------- -----------------------------------
Mineralised zones Zones with elevated amounts
of cassiterite
--------------------------- -----------------------------------
The MSA Group A provider of exploration,
geology, mineral resource
and reserve estimation,
mining and environmental
consulting services to
the mining industry.
--------------------------- -----------------------------------
Ordinary Kriging A method used to interpolate
spatial data of where the
error variance is minimized.
--------------------------- -----------------------------------
Pegmatite Extremely coarse-grained
granite
--------------------------- -----------------------------------
Pulp samples Samples that have been
crushed and milled (pulverised)
to a fine powder.
--------------------------- -----------------------------------
QA/QC Quality Assurance and Quality
Control. These are measures
put in place to assess
the accuracy and quality
of the assay data reported.
--------------------------- -----------------------------------
Sn Chemical symbol for tin
--------------------------- -----------------------------------
SPL Set Point Laboratories,
a laboratory in Johannesburg
--------------------------- -----------------------------------
SRK Consulting A consulting practise providing
advice and solutions to
the earth and water resource
industries
--------------------------- -----------------------------------
Standard A sample with with known
value of tin (or other
element of interest) that
is submitted to the laboratory
with regular samples in
order to check for accuracy
and precision as part of
the QA/QC
--------------------------- -----------------------------------
Stratabound Bounded or contained within
a geological or lithological
unit
--------------------------- -----------------------------------
Tailings the waste materials (residue)
produced by the processing
plant after extraction
of valuable minerals
--------------------------- -----------------------------------
Uis Tin Project A tin project in Namibia
in which the Company owns
a stake
--------------------------- -----------------------------------
Vugs Hollow zones within the
rock, that may often contain
mineralisation
--------------------------- -----------------------------------
XRF X-Ray Fluorescence Spectrometry.
--------------------------- -----------------------------------
Enquiries: info@bushveldminerals.com
Bushveld Minerals +27 (0) 11 268 6555
Fortune Mojapelo
SP Angel Corporate Finance
LLP +44 (0) 20 3470 0470
Nominated Adviser & Joint
Broker
Ewan Leggat
Beaufort Securities +44 (0) 20 7382 8300
Joint Broker
Jon Belliss
Blytheweigh
Financial PR
Tim Blythe / Camilla
Horsfall +44 (0) 20 7920 3150
Gabriella von Ille +27 (0) 711 121 907
Notes to editors
Bushveld Minerals is a diversified AIM listed mineral
development company with a portfolio of vanadium, iron ore, tin and
coal greenfield assets in Southern Africa and Madagascar. The
Company's flagship platform, the vanadium platform, includes the
Mokopane Vanadium Project, the Brits Vanadium Project, and the
Bushveld Iron Ore & Titanium Project. The tin platform
comprises the Mokopane Tin Project whereas the Imaloto Coal
Project, which is being developed as one of Madagascar's leading
independent power producers, makes up the Company's coal
platform.
The Company's vision is to become the largest low cost
integrated primary vanadium producer through owned low-cost
high-grade assets. This incorporates development and promotion of
the role of vanadium in the growing global energy storage market
through Bushveld Energy, the Company's energy storage solutions
provider. Whilst the demand for vanadium remains largely anchored
in a slow growing steel industry, Bushveld Minerals believes there
is a strong potential for imminent significant global vanadium
demand surge from the fast-growing energy storage market,
particularly through the use and adoption of Vanadium Redox Flow
Batteries.
Bushveld Minerals' approach to project development recognises
that whilst attractive project economics are imperative, they are
insufficient to secure capital to bring them to account. A clear
path to production with a visible timeframe, low capex requirements
and scalability are important factors in retaining an attractive
exit option. This philosophy is core to the Company's strategy in
developing projects.
Detailed information on the Company and progress to date can be
accessed on the website: www.bushveldminerals.com
- ENDS -
This information is provided by RNS
The company news service from the London Stock Exchange
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