TIDMCGH
RNS Number : 0683G
Chaarat Gold Holdings Ltd
11 November 2022
11 November 2022
Chaarat Gold Holdings Limited
("Chaarat" or "the Company")
Kapan Mineral Resource Update
Chaarat (AIM:CGH), the AIM-quoted gold mining Company with an
operating mine in Armenia, and assets at various stages of
development in the Kyrgyz Republic is pleased to announce the
updated JORC Compliant Mineral Resource Estimate ("MRE") for its
Kapan polymetallic mine in the Republic of Armenia. The full MRE
report will be published on Chaarat`s website.
Highlights
-- The 2022 constrained MRE contains 722 thousand gold
equivalent ounces ("koz AuEq")(1) in the Measured & Indicated
("M&I") categories. This compares to 584 koz AuEq M&I MRE
reported in June 2021, reflecting a 25% increase in MRE.
-- M&I tonnes increased by 30% from 1.955 Mt to 2.602 Mt
while grade dropped by 5% from 9.1 g/t AuEq to 8.6 g/t AuEq.
-- Mined Shape Optimization ("MSO") was performed on the mineral
inventory to apply constraining factors to the Mineral
Resource.
The updated MRE will be used as the basis for the updated 2022
Ore Reserves Estimate ("ORE"). As in prior years, Chaarat will
employ the services of AMC Consulting to review the 2022 MRE and
develop a revised 2022 ORE.
(1) Gold equivalent ounces for the 2022 MRE is defined in Note 1
of Table 1.
Michael Fraser, Chief Executive Officer, commented:
"I am pleased to report the results of the 2022 Mineral Resource
Estimate. The new MRE shows a 25% increase in Measured and
Indicated ounces compared to 2021. New drilling converted
mineralization to M&I to replace depletion during the period,
and the improvements to the mining methods employed at Kapan have
enabled an increase to the resource."
UPDATED MRE STATEMENT
The following table summarizes the latest constrained 2022
MRE:
Class Mt AuEq (g/t) AuEq Metal (koz)
Measured 0.341 12.1 132
----- ---------- ----------------
Indicated 2.261 8.1 590
----- ---------- ----------------
M & I 2.602 8.6 722
----- ---------- ----------------
Inferred 1.864 6.5 389
----- ---------- ----------------
Table 1 Constrained Mineral Resources Estimate Sept 1,2022
Note 1:
-- The effective date of the resource is 1st September 2022. The
Mineral Resources that are not Mineral Reserve do not demonstrate
economic viability. Numbers may not sum due to rounding.
-- The gold equivalency (AuEq) formula is based on the following
metal prices: Au 1750 USD/oz; Ag 21.8 USD/oz; Cu 8300 USD/t; Zn
2950 USD/t
-- The AuEq formula used is as follows: AuEq= Au+Ag*21.8/1750+Cu*8300/1750*31.1035*100+Zn*2950/1750*31.1035*100
-- Grade interpolation is done by Ordinary Kriging method.
-- The applied MSO assumes a COG = 2.1g/t AuEq and minimum
mining widths of: 2.2m for the veins dipping < 70deg; 1.8m for
veins dipping 70deg - 80deg and 1.2m for veins dipping
80deg-90deg
-- Mineral Resources are with applied depletion and inclusive of Ore Reserves.
-- The resource estimate and classification are according the
JORC Code (2012) reporting code.
The previously reported June 2021 constrained MRE is shown below
:
Class Mt AuEq (g/t) AuEq (koz)
Measured 0.238 12.3 94
----- ---------- ----------
Indicated 1.757 8.7 490
----- ---------- ----------
M & I 1.995 9.1 584
----- ---------- ----------
Inferred 3.497 6.9 775
----- ---------- ----------
Table 2 Constrained Mineral Resources Estimate June 1, 2021
Notes:
-- The effective date of the resource is 1st June 2021. The
Mineral Resources that are not Mineral reserve do not demonstrate
economic viability. Numbers may not sum due to rounding.
-- The gold equivalency formula is Au Eq = Au + (Ag g/t * ($25 /
$1,700) + (Cu % * ($8,000 * 31.1035 / $1,700) / 100) + (Zn % *
($2,500 * 31.1035 / $1,700) / 100
-- MSO applied assuming minimum width 2.2m; COG 2.0g/t Au Eq
-- Mineral Resources are with applied depletion and inclusive of Ore Reserves.
-- The resource estimate and classification are according the
JORC Code (2012) reporting code.
Mining depletion from June 1, 2021 to September 1, 2002, being
the period between the 2021 MRE and the 2022 MRE, was 0.232Mt
containing 81 koz AuEq. The results from the infill drilling
program during 2021 and 2022 replaced depletion and added
additional ounces to the MRE.
Modifying factors
Starting in 2021, Chaarat's MRE is reported on a constrained
basis by applying modifying factors. Each vein in the resource
model is run through MSO software to determine the reasonable
prospects for eventual economic extraction on a vein-by-vein
basis.
Table 3 below shows the main modifying factors applied to the
model via the use of the MSO software.
COG_AuEq_ppm 2.1 ppm
Metal prices See Notes 1
Ore body dip Minimum mining width (MSO)
80(o) -90(o) 1.2m
70(o) -80(o) 1.8m
< 70(o) 2.2m
--------------------------
Development overbreak 0%
Production Stope overbreak:
First mining sublevel 5%
Middle sublevel 10%
Bottom sublevel 15%
--------------------------
Table 3 MSO's COG, Minimal mining width and working over breaks
percentage
Resource Estimation Assumptions and Methods
The MRE was constrained over the polymetallic veins of the
deposit, using wireframe solid models. The resource depletion zones
were also encoded into the resource model. Grade estimates are
based on 1.0m composited assay data, with applied top capping for
all elements of interest. The interpolation of the metal grades was
undertaken via Datamine software using ordinary kriging at parent
blocks of 4x4x4m and minimal sub blocking of 0.1m. MSO software was
used to determine the reasonable prospects for eventual economic
extraction. The elements of interest interpolated in the resource
model include gold, silver, copper, zinc, lead and sulphur. Density
estimation is based on a sulphur regression formula. Full details
can be found in the 2022 MRE report which will be available on the
Company's website.
Quality Assurance/Quality Control Procedures: Sampling
Methodology and Quality Control
Sampling comprises historical surface diamond and RC drilling,
historical and recent underground diamond drilling, and channel
sampling. Core drill holes were drilled along the full
mineralization intersection, as normal to the mineralization strike
and dip as possible, predominantly at NQ diameter. The maximum
sampling interval was 1 metre, the minimum was 0.2 metres. In the
recent drilling campaigns entire core was collected as regular core
samples. Underground channel samples were chipped along the marked
face with a pneumatic hammer.
The samples were pre-processed and analysed at the on-site mine
laboratory. The laboratory conducts Fire Assay with atomic
adsorption spectrometer ("AAS") for gold (0.2 g/t-1000g/t), and
atomic AAS for Ag (0.2 g/t -20000g/t), Cu (0.005%-9.9%), Pb
(0.005%-19.9%) and Zn (0.005%-29.9%). The laboratory is accredited
according to GOST ISO/IEC 17025-2019 standard. GOST refers to a set
of international technical standards maintained by the Euro-Asian
Council for Standardization, Metrology and Certification ("EASC"),
a regional standards organization operating under the auspices of
the Commonwealth of Independent States ("CIS"). Internal quality
assurance and quality control ("QA/QC") scheme includes certified
reference materials ("CRM") and blank material. Approximately 5% of
the samples were sent to an accredited laboratory as a part of
mandatory Armenian state control. Kapan's on-site laboratory shows
an acceptable level of sample precision and accuracy for both
diamond drilling and channel sampling.
Geological Modelling Procedures
Ore wireframing is done via LeapFrog(TM) software, using all
available drill hole and channel data at 1.5 g/t AuEq as a base
cut-off grade. The maximum width of barren intervals, included in
ore solid, is 2.0m and the minimal interval width is 0.2m. Hard
boundaries of the veins were used to outline the ore bodies. In
case of available barren contouring hole, the wireframe was
extrapolated on a half distance between the mineralized and barren
holes, with reducing the width accordingly.
In case the closest barren intercept has reasonable zone of
increased grades, these intercepts are used in the extrapolation
process. In case of lack of contouring barren drill hole, the ore
wireframe is extrapolated in a half distance between the last two
holes, but not further than the half of the average exploration
drilling grid (grade control drilling is within average grid of
20x20m).
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014 (which forms part of
domestic UK law pursuant to the European Union (Withdrawal) Act
2018).
Enquiries
+44 (0)20 7499
Chaarat Gold Holdings Limited 2612
Mike Fraser, Chief Executive Officer IR@chaarat.com
Canaccord Genuity Limited (NOMAD and +44 (0)20 7523
Joint Broker) 8000
Henry Fitzgerald-O'Connor
James Asensio
+44 (0)20 7220
finnCap Limited (Joint Broker) 0500
Christopher Raggett
Panmure Gordon (UK) Limited (Joint +44 (0)20 7886
Broker) 2500
John Prior
Hugh Rich
About Chaarat
Chaarat is a gold mining company which owns the Kapan operating
mine in Armenia as well as Tulkubash and Kyzyltash Gold Projects in
the Kyrgyz Republic. The Company has a clear strategy to build a
leading emerging markets gold company through organic growth and
selective M&A.
Chaarat aims to create value for its shareholders, employees and
communities from its high-quality gold and mineral deposits by
building relationships based on trust and operating to the best
environmental, social and employment standards. Further information
is available at www.chaarat.com/ .
Competent Person- Mineral Resource Estimate
The information in this announcement that relates to exploration
results is based on and fairly represents information and
supporting documentation prepared by Dimitar Dimitrov, P. Geo, AIG
member and a Competent Person as defined in the 2012 edition of the
JORC Code 'Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves' and is a Qualified Person under
the AIM Rules . Mr. Dimitar Dimitrov is a full-time employee of the
company. Mr. Dimitrov consents to the publication of this new
release dated November 11(th) , 2022 by Chaarat. Mr. Dimitrov
certified that this news release fairly and accurately represents
the information for which he is responsible.
Glossary of Technical Terms
"Ag" chemical symbol for silver
"Au" chemical symbol for gold
"AuEq" the value of a tonne of mineralised material
calculated by summing the value of each contained
payable metal and expressing it as an equivalent
gold content at a given set of metals prices
"Cu"
the chemical symbol for copper
"cut-off" the lowest grade value that is included in a
Resource statement. It must comply with JORC
requirement 19: "reasonable prospects for eventual
economic extraction" the lowest grade, or quality,
of mineralised material that qualifies as economically
mineable and available in a given deposit. It
may be defined on the basis of economic evaluation,
or on physical or chemical attributes that define
an acceptable product specification
"g/t" grammes per tonne, equivalent to parts per million
"Inferred Resource" 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 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" The Australasian Joint Ore Reserves Committee
Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves 2012 (the "JORC Code"
or "the Code"). The Code sets out minimum standards,
recommendations and guidelines for Public Reporting
in Australasia of Exploration Results, Mineral
Resources and Ore Reserves
"koz" thousand troy ounces of gold
"Measured 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
"Mineral Resource" a concentration or occurrence of material of
intrinsic economic interest in or on the Earth's
crust in such form, quality and quantity that
there are reasonable prospects for eventual economic
extraction. The location, quantity, grade, geological
characteristics and continuity of a Mineral Resource
are known, estimated or interpreted from specific
geological evidence and knowledge. Mineral Resources
are sub-divided, in order of increasing geological
confidence, into Inferred, Indicated and Measured
categories when reporting under JORC
"Mt" million tonnes
"oz" troy ounce (= 31.103477 grammes)
"Pb" the chemical symbol for lead
"t" tonne (= 1 million grammes)
"Zn" the chemical symbol for zinc
12.0 JORC Code, 2012 Edition - Table 1 report
Section 1 Sampling Techniques and Data
Criteria JORC Commentary
Code
explanation
Sampling Nature and quality of sampling (e.g., cut Sampling comprises historical surface drilling,
techniques channels, random chips, or specific specialized historical and current underground drilling,
industry standard measurement tools appropriate and channel sampling.
to the minerals under investigation, such as Predominantly diamond drilling, and channel
down hole gamma sondes, or handheld XRF cut from the face, with a chisel saw, according
instruments, to a marked channel boundary.
etc.). These examples should not be taken as Core was drilled along the full mineralization
limiting the broad meaning of sampling. intersection, as normal to the mineralization
Include reference to measures taken to ensure strike as possible.
sample representativity and the appropriate Channel rock chips are providing representative
calibration of any measurement tools or systems data collection of the sampled face.
used. All sampling practices are meeting the industry
Aspects of the determination of mineralization standards.
that are Material to the Public Report.
In cases where 'industry standard' work has
been done this would be relatively simple
(e.g.,
'reverse circulation drilling was used to
obtain
1 m samples from which 3 kg was pulverized
to produce a 30 g charge for fire assay').
In other cases, more explanation may be
required,
such as where there is coarse gold that has
inherent sampling problems. Unusual commodities
or mineralization types (eg submarine nodules)
may warrant disclosure of detailed information.
================================================
Drilling Drill type (e.g., core, reverse circulation, DH sampling: approximately 717 000 samples
techniques open-hole hammer, rotary air blast, auger, (1024km).
Bangka, sonic, etc.) and details (e.g., core Channel sampling: approx. 122 000 samples
diameter, triple or standard tube, depth of (123.1
diamond tails, face-sampling bit, or other km).
type, whether core is oriented and if so, by Total sampling: approx. 840 000 samples
what method, etc.) (1147km).
Core is predominantly HQ and NQ diameter, singe
barrel drilled.
Channel samples are chipped along the marked
face with a pneumatic hammer and collected
by the sampler in one-meter intervals. All
channel samples are taken from south to north,
in a horizontal fashion, rather than
perpendicular
to the mineralized dip angle. The results from
the channel sampling are used for grade
control,
modelling, mine design, resource estimation,
and for mine reconciliation data.
The samples are contoured along all major
lithological
breaks.
Drill sample Method of recording and assessing core and The core recovery is assessed by regular
recovery chip sample recoveries and results assessed. measurements
Measures taken to maximize sample recovery of each drill run and generally excess 95 %.
and ensure representative nature of the Core recovery is based on recovered core length
samples. vs drill run length, and RC material is
Whether a relationship exists between sample assessed
recovery and grade and whether sample bias by the recovered weights.
may have occurred due to preferential loss/gain There does not appear to be a relationship
of fine/coarse material. bias between grade and length, or sample weight
or recovery.
The average grade of the channel samples is
higher compared to the drilling. This is
primarily
attributed to the frequency of channel samples
in high grade open areas of the mine, compared
to drilling
================================================
Logging Whether core and chip samples have been Once the hole is finished, the core is
geologically transported
and geotechnically logged to a level of detail to the core storage area for logging. The core
to support appropriate Mineral Resource trays are plastic, and are covered with a
estimation, plastic
mining studies and metallurgical studies. cover as well, to prevent core losses or extra
Whether logging is qualitative or quantitative moving.
in nature. Core (or costean, channel, etc) The key procedures are including core recovery
photography. measuring; sample interval marking; geological
The total length and percentage of the relevant and geotechnical logging; photo documentation;
intersections logged . sampling and later destruction of
non-mineralized
part.
Core logging is including lithology;
alteration;
mineralization; structures; obtaining
geotechnical
data for assess RMR and Q-index.
Sampling is primarily based on the visible
mineralization, and minimum 2 meters are taken
from either side of the sampled interval.
The maximum sampling interval is 1 meter, the
minimum is 0.2m
Once the sampling intervals are outlined,
currently
a full core diameter is used for assaying.
Areas with non-visible mineralization, outside
of the expected mineralization zone are not
sampled.
In absence of visible mineralization, but in
areas where mineralization interception is
expected the material is sampled depending
on the field geologist's decision, considering
all the available information.
The collection of geological data is meeting
the industrial standards.
The core logging protocol keeps a high
standard,
and the involved geologists have sufficient
knowledge for Shahumyan mineralization system.
Sub-sampling If core, whether cut or sawn and whether Prior to July 2017 core was halved with a
techniques quarter, diamond
and sample half or all core taken. saw and half was sent for analysis and the
preparation If non-core, whether riffled, tube sampled, other half was retained. Since then, the whole
rotary split, etc and whether sampled wet or core is processed and only the pulps are
dry. retained
For all sample types, the nature, quality, for future analysis.
and appropriateness of the sample preparation The laboratory prepares samples according to
technique. industry standard of drying crushing,
Quality control procedures adopted for all pulverizing,
sub-sampling stages to maximise splitting and analysis.
representativity All samples are analysed in the local Kapan's
of samples. mine laboratory
Measures taken to ensure that the sampling The laboratory is providing Fire Assay with
is representative of the in situ material AAS for gold ( 0.2 g/t-1000g/t) , and AAS for
collected, Ag ( 0.2 g/t -20000g/t ), Cu ( 0.005%-9.9%
including for instance results for field ), Pb ( 0.005%-19.9% ) and Zn ( 0.005%-29.9%
duplicate/second-half ).
sampling.
Whether sample sizes are appropriate to the
grain size of the material being sampled.
================================================
Quality The nature, quality and appropriateness of The assaying is meeting the industry standards
of assay the assaying and laboratory procedures used and it is suitable to support Mineral Resource
data and and whether the technique is considered partial estimate.
laboratory or total. The current QA/QC scheme is including blank
tests For geophysical tools, spectrometers, handheld samples and certified reference material (CRM).
XRF instruments, etc, the parameters used in As core is no longer halved, no field
determining the analysis including instrument duplicates
make and model, reading times, calibrations are assessed, and historically these results
factors applied and their derivation, etc. were no good due to highly variable nature
Nature of quality control procedures adopted of mineralization.
(eg standards, blanks, duplicates, external QA/QC achieves acceptable levels of accuracy
laboratory checks) and whether acceptable and precision.
levels
of accuracy (ie lack of bias) and precision
have been established.
Verification The verification of significant intersections Yearly, in each quarter, between 3 and 5
of sampling by either independent or alternative company percent
and assaying personnel. of the pulps are sent to Yerevan state
The use of twinned holes. laboratory
Documentation of primary data, data entry for reference the results.
procedures, data verification, data storage A twin analysis has been conducted during
(physical and electronic) protocols. 2017-2018
Discuss any adjustment to assay data. by local geology team for channel and diamond
drilling (DD) holes and shows potential bias
that could be attributed to highly variable
nature of mineralization
================================================
Location Accuracy and quality of surveys used to locate Grid system is Pulkovo 1942 / Gauss -Kruger
of data drill holes (collar and down-hole surveys), zone 8 , ( with reduced first 2 digits in the
points trenches, mine workings and other locations BM and wireframes encoding).
used in Mineral Resource estimation. Survey is completed underground, with high
Specification of the grid system used. precision tools which meets the industrial
Quality and adequacy of topographic control. standards: Leica TS16 (3" accuracy), Ranger
Explorer II R2231, IMMN_32A.
The available digital elevation model of the
area topography is used in the Mineral Resource
estimation process (surveyed via GPS by
expatriate
and local surveyors in 2013)
Data spacing Data spacing for reporting of Exploration Along the drive advancing, a channel sampling
and distribution Results. is taken every blast.
Whether the data spacing, and distribution Typically, the space between two blasts is
is sufficient to establish the degree of 4 -6m
geological The grade control drilling net is 20 X 20 m,
and grade continuity appropriate for the adjusted to denser grid, where required
Mineral The geostatistical analysis and trial blast
Resource and Ore Reserve estimation unit drilling data have shown that thicker
procedure(s) data spacing, and distribution do not add any
and classifications applied. sufficient value in accuracy of geological
Whether sample compositing has been applied. and grade continuity.
As majority of samples have 1m in length, the
1m composite is being applied.
================================================
Orientation Whether the orientation of sampling achieves Geometry is derived and interpreted from
of data unbiased sampling of possible structures and underground
in relation the extent to which this is known, considering mapping and sampling. True thickness is
to geological the deposit type. calculated
structure If the relationship between the drilling from apparent thickness, during the
orientation interpretation.
and the orientation of key mineralised No bias has been introduced through the
structures geometry
is considered to have introduced a sampling of the sampling and subsequent geological
bias, this should be assessed and reported interpretation
if material.
Sample The measures taken to ensure sample security. The mine process plant and laboratory are
security sufficiently
secured, with security guards and entry,
requiring
personal ID cards
================================================
Audits The results of any audits or reviews of Independent reviews have considered the
or reviews sampling sampling
techniques and data. process to meet industry best practices: NI
43-101 Technical Report in 2014 (Galen White
- QP, Julian Bennett- QP, Simon Meik - QP)
and Global Report (Galen White - QP) in 2018
by CSA, report by AMC (Alan Turner, Bryan
Pullman)
in 2019. At 2021 AMC consulting completed a
high-level review of MRE 21.
================== ================================================ ================================================
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 Commentary
Code
explanation
Database Measures taken to Data is logged and digitized by trained geologists.
integrity ensure that data has The used software is providing several stages
not of cross validation, initial through the logging
been corrupted by, for process, second when the logging data is imported
example, transcription to main database platform (acQuire) and one
or keying errors, more time prior the Mineral Resource estimation.
between its initial
collection
and its use for Mineral
Resource estimation
purposes.
Data validation
procedures used.
Site visits Comment on any site The last site visit of competent person (Dimitar
visits undertaken by Dimitrov) for the Mineral Resource was from
the Competent Person 17th to 28th of May 2022
and the outcome of Mr.Dimitar Dimitrov P. Geo, AIG member and
those a Competent Person as defined in the 2012 edition
visits. of the JORC Code 'Australasian Code for Reporting
If no site visits have of Exploration Results, Mineral Resources and
been undertaken Ore Reserves', is a SVP -Exploration of Chaarat
indicate Gold Holdings, and full-time employee of the
why this is the case. company.
Geological Confidence in (or Based on lithological evidence (drill core
interpretation conversely, the logging and underground mapping data) the veins
uncertainty and veinlets are being interpreted.
of) the geological The Mineral Resource is controlled by hard
interpretation of the boundaries of the interpreted geological structures,
mineral deposit. including faults and post mineralization barren
Nature of the data used dykes.
and of any assumptions The geological continuity is reasonable, but
made. grade variability is high, often within the
The effect, if any, of mineralized structure.
alternative
interpretations
on Mineral Resource
estimation.
The use of geology in
guiding and controlling
Mineral Resource
estimation.
The factors affecting
continuity both of
grade and geology.
Dimensions The extent and The Resource includes a series of E-W striking
variability of the orebodies (veins), dipping from 45(o) to 90(o)
Mineral (mainly in South direction). Vein strike lengths
Resource expressed as reach up to 0.5km, and the true thickness ranges
length (along strike from several cm to 2m.
or otherwise), plan The Resources goes near the surface (950masl)
width, and depth below to average of 500 - 600 m asl deep.
surface to the upper Further mineralization potential exists below
and lower limits of 600msal, and to the flanks of current Resource,
the Mineral Resource. explored historically.
Estimation The nature and The Mineral Resource estimation was completed
and modelling appropriateness of the in Datamine Studio by Kapan's geological department
techniques estimation The wireframes were prepared in Leapfrog Geo
technique(s) applied The grades were interpolated by Ordinary Kriging
and key assumptions, Top-cuts were applied for each vein (based
including treatment of on statistical analysis).
extreme grade values, The search radii were defined by variogram
domaining, modelling of veins
interpolation The estimate was constrained into the hard
parameters and maximum boundary of the mineralization interpretation
distance of Parent cell dimensions are 4m*4m*4m, with minimum
extrapolation from data sub-celling dimensions 0.1m*0.1m*0.1m
points. The composite length is 1m
If a computer assisted The validation methods currently show high
estimation method level of correspondence between resource model
was chosen include a and the actual data, and are done via visual
description of computer inspection, preparation of Q-Q and swath plots.
software and parameters Comparison with previous Mineral Resource estimates
used. Reconciliation that includes comparing forecasted
The availability of data and measurements in different phases of
check estimates, mining process
previous
estimates and/or mine
production records Mineral Inventory (depleted) up to 09-2022
and whether the Mineral : Class Mt SG (g/cm(3) AuEq (g/t) AuEq (koz)
Resource estimate )
takes appropriate Meas 0.646 2.75 8.9 185
account of such data. ------- ------------ ----------- -----------
The assumptions made Ind 5.627 2.76 5.3 958
regarding recovery ------- ------------ ----------- -----------
of by-products. M &
Estimation of I 6.273 2.76 5.7 1 143
deleterious elements or ------- ------------ ----------- -----------
other Inf 6.790 2.78 4.5 975
non-grade variables of ------- ------------ ----------- -----------
economic significance Total 13.063 2.77 5.0 2 118
(eg sulphur for acid ------- ------------ ----------- -----------
mine drainage
characterisation).
In the case of block AuEq=AU+AG*21.8/1750+CU*8300*31.1035/175000+ZN*2950*31.1035/17500
model interpolation,
the block size in
relation to the average
sample spacing and the
search employed.
Any assumptions behind
modelling of selective
mining units.
Any assumptions about
correlation between
variables.
Description of how the
geological
interpretation
was used to control the
resource estimates.
Discussion of basis for
using or not using
grade cutting or
capping.
The process of
validation, the
checking
process used, the
comparison of model
data
to drill hole data, and
use of reconciliation
data if available.
Moisture Whether the tonnages Tonnage is reported on dry basis
are estimated on a
dry basis or with
natural moisture, and
the
method of determination
of the moisture
content.
Cut-off The basis of the
parameters adopted cut-off The Reasonable Prospects for Eventual Economic
grade(s) Extraction of the Mineral Inventory was conducted
or quality parameters via Mine Shape Optimization (MSO) run. Cut-off
applied. grade of 2.1 g/t AuEq was applied.
Mining factors Assumptions made The Resource model is based on geology.
or assumptions regarding possible The reasonable prospects for eventual economic
mining extraction were achieved by running Mineable
methods, minimum mining Stope Optimization (MSO) and reported is Resource
dimensions and internal is constrained by the MSO. The MSO parameters
(or, if applicable, are in accordance with the selective mining
external) mining method planned to be implemented.
dilution.
It is always necessary COG_AuEq_ppm 2.1 ppm
as part of the process Used AuEq_formula AUEQV=AU+AG/80+CU/0.6779+ZN/1.9072
of determining -----------------------------------
reasonable prospects Ore body dip MMU (MSO)
for eventual 80(o) -90(o) 1.2m
economic extraction to 70(o) -80(o) 1.8m
consider potential < 70(o) 2.2m
mining methods, but the -----------------------------------
assumptions made Development overbreak 0%
regarding mining Production Stope
methods and parameters overbreak:
when First mining sublevel 5%
estimating Mineral Middle sublevel 10%
Resources may not Bottom sublevel 15%
always -----------------------------------
be rigorous. Where this
is the case, this
should be reported with Kapan's 2022 Mineral Resource is:
an explanation of SG (g/cm3
the basis of the mining Class Mt ) AuEq (g/t) AuEq (koz)
assumptions made. Meas 0.341 2.76 12.1 132
------ ---------- ----------- -----------
Ind 2.261 2.77 8.1 590
------ ---------- ----------- -----------
M & I 2.602 2.77 8.6 722
------ ---------- ----------- -----------
Inf 1.864 2.77 6.5 389
------ ---------- ----------- -----------
AuEq=AU+AG*21.8/1750+CU*8300*31.1035/175000+ZN*2950*31.1035/17500
Metallurgical The basis for The metal recovery data is as follows: Process recovery Units 2017 2018 2019 2020 2021
factors or assumptions or Au recovery
assumptions predictions (all con) % 83.6 76.2 79.7 73.1 75.5
regarding metallurgical ------- ----- ----- ----- ----- -----
amenability. It is Ag recovery
always necessary as (all con) % 83 80.9 82.4 82.2 82.5
part of the process of ------- ----- ----- ----- ----- -----
determining reasonable Cu recovery
prospects for eventual (Cu con) % 86.4 83.6 86.4 87 85.2
economic extraction to ------- ----- ----- ----- ----- -----
consider potential Zn recovery
metallurgical methods, (Zn con) % 81.9 77.4 80.2 76.4 71.1
but the assumptions ------- ----- ----- ----- ----- -----
regarding metallurgical
treatment processes Extraction of Au
and parameters made at refining % 91
when reporting Mineral Extraction of Ag
Resources may not at refining % 84
always be rigorous. ---
Where Extraction of Cu
this is the case, this at refining % 94
should be reported ---
with an explanation of Extraction of Zn
the basis of the at refining % 85
metallurgical ------------------ ---
assumptions made.
Metal recovery is not directly applied in the
reported Resource.
Environmental Assumptions made There are no known factors which may inhibit
factors or regarding possible the extraction of the Resource
assumptions waste
and process residue
disposal options. It
is always necessary as
part of the process
of determining
reasonable 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 Currently the density estimation is using polynomial
determined. If assumed, regression model based on modelled sulphur
the basis for the grade:
assumptions. If If S >= 19.8 %, Density == exp [0.2587x + 0.4835],
determined, for x = ln (S grades)
the method used, If S > 1 and S <19.8%, Density == exp [0.0114169x6
whether wet or dry, the - 0.0891652x5 + 0.26951043x4 + 0.38060004x3
frequency of the + 0.23832052x2 + 0.0052027x + 0.9070334], for
measurements, the x = ln (S grades)
nature, If S<1, Density = 2.65 g/cm3
size and In dykes Density = 2.65 g/cm3
representativeness of This approach is considered as slightly conservative
the samples. scenario for density assessment.
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 The model is classified according to the quantity
classification of the and quality of the data.
Mineral Resources into The Measured Mineral Resource category was
varying confidence assigned to portions of the ore bodies in the
categories. following cases:
Whether appropriate In the areas of current mine development workings,
account has been taken informed by both channel sampling data and
of all relevant factors drilling data and where the data spacing is
(ie relative confidence less than 20x20 m.
in tonnage/grade
estimations, The Indicated category was assigned to the
reliability portions of the ore bodies in the following
of input data, cases:
confidence in - In the areas with the exploration grid spacing
continuity of up to 20×20 m, provided there was enough
geology and metal confidence in the continuity of the ore body
values, quality, mineralization between the drill holes.
quantity - In the areas of extrapolation to up to 30
and distribution of the m distance from the last sublevel drift in
data). down-dip/up-dip direction of the ore body,
Whether the result provided there was enough confidence in the
appropriately reflects continuity of its mineralization. The intersections
the Competent Person's of extrapolation areas by exploration drill
view of the deposit. holes are not required in this case.
- In the areas of extrapolation to up to 30
m distance from the last sublevel drift in
the downdip /up-dip direction of the ore body.
In case of any doubts in continuity of this
ore body mineralization, the exploration grid
spacing of not more than 20-30 m is required
to classify the mineralization as an Indicated
Mineral Resource.
The Inferred category was assigned to the portions
of the ore bodies if they could not be classified
as an Indicated Mineral Resource.
Audits or The results of any No external audits or reviews were conducted
reviews audits or reviews of for MRE 2022
Mineral Resource
estimates.
Discussion Where appropriate a The effective date of the Resource is 01.09.2022
of relative statement of the Model estimates were checked by QQ plots, swath
accuracy/ relative plots, and by comparing the volumes of the
confidence accuracy and confidence wireframes and the block model, statistically
level in the Mineral and visually.
Resource 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.
=============== ======================== =====================================================================================================
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