TIDMFCR
RNS Number : 7987O
Ferrum Crescent Ltd
10 November 2016
10 November 2016
Ferrum Crescent Limited
("Ferrum Crescent", the "Company" or the "Group")(ASX, AIM, JSE:
FCR)
Commencement of Toral Lead-Zinc Exploration Project Work
Programme
Ferrum Crescent, the ASX, AIM and JSE quoted metals project
developer, announces that further to its acquisition on 23
September 2016 of GoldQuest Iberica, S.L. ("GoldQuest"), which owns
100% of the Toral lead-zinc exploration project located in the
province of León in Spain ("Toral Project"), it has now commenced a
simple, cost-effective and highly-focussed work programme. This
programme includes re-interpretation of significant foreign and
historic geological and exploration data available in respect of
the Toral Project, including data contained in a NI 43-101
Technical Report prepared by Micon International Co. Limited in
respect of the Toral Project on 14 April 2011 and amended on 30
April 2012 (the "NI 43-101 Report").
In the period since completion of the acquisition, the Company
has had the opportunity to further consider the NI 43-101 Report
and has further developed and refined its planned work programme
for 2016 and 2017. The 2016/2017 work programme includes:
-- structured reinterpretation and analysis of the original
foreign and historic geological and exploration data;
-- re-mapping of the main Toral Project area applying
re-interpreted geological understanding of the regional controls on
mineralisation;
-- in-fill surveys over the main prospect area where detailed
soil geochemistry has not previously been conducted and extensions
of the grid where the fringes of the existing survey data continued
to display anomalous values;
-- structural mapping of the existing adits, outcrop and the
nearby mineralisation occurrences in order to gauge the balance
between local (not fully tested) and regional (well documented)
controls on mineralisation;
-- re-logging of historical drill-core and re-assaying of areas
where incomplete assays were taken previously in order to seek to
identify potential new shallow high grade targets;
-- creation of a revised geological model incorporating existing
and new geological data (geochemistry, structural interpretation,
assays, logs, maps); and
-- generation of a highly targeted drill plan, focused on
high-grade near-surface ore shoots linking known surface
occurrences and known high-grade mineralisation at depth, for
testing in 2017.
The drill plan design will also test:
- a number of cross-cutting and intersecting fault zones that
are apparent in geological maps and geochemical surveys; and
- the main mineralised zone for the possibility of structural
repetition and the potential for multiple sub-parallel zones of
mineralisation.
The work programme is being undertaken by the Company with a
view to defining the economic and geological characteristics of the
project including the definition of a JORC compliant resource
estimate in respect of the Toral Project.
Justin Tooth, Executive Chairman of Ferrum Crescent,
commented:
"The Toral Project represents an exciting low-cost acquisition
in a mining-friendly jurisdiction which has the potential to become
a significant asset for Ferrum Crescent and I look forward to
updating the market in due course on the progress of our work
programme."
Additional information on the Toral Project
The Toral Project has been extensively explored by its previous
owners Portex Minerals Inc. and Lundin Mining S.L. and the 2,024ha
of mineral right contains extensive zinc mineralisation. Located in
north-west Spain, approximately 400km north-west of Madrid, the
project's licence area hosts road, rail and power infrastructure
and is situated in a known historic mining jurisdiction.
Foreign Estimate of Mineral Resources
As noted above, there is an existing NI 43-101 Report that has
been prepared in respect of the Toral Project which estimated that
the project has a NI 43-101 compliant Inferred and Indicated
foreign resource estimate of 8.71Mt at an economic cut-off grade of
7% Pb + Zn (the "Foreign Estimate", please refer to Table 1).
Micon International Co. Limited was commissioned by GoldQuest
Mining Corporation on 14 April 2011 to prepare an independent
Technical Report on the Toral Project suitable for reporting
purposes under the standards of Canada's National Instrument
43-101. The Technical Report was reissued at the request of Portex
Minerals Inc. on 30 April 2012. The Foreign Estimate was prepared
in compliance with the Canadian Institute of Mining, Metallurgy,
and Petroleum Standards on Mineral Resources and Reserves ("CIM
Standards") and utilised data from diamond drilling completed by
Lundin Mining S.L. in 2007 and 2008, and assay data from older
Peñarroya/Adaro diamond drill holes. Surpac mining software was
used for mineral resources modelling. Mineral resources were
reported based upon their potential for economic extraction.
Table 1: Foreign Estimate of Mineral Resources as at 1 February
2011, Cut-Off Grade of 7% Pb + Zn
(NI 43-101 Mineral Resources Estimate)
Indicated Inferred
------------------------------------------------------- ---------------------------------------------------
Mt Pb Zn Cu Ag (Pb Mt Pb Zn Cu Ag (Pb
(%) (%) (%) (g/t) + Zn) (%) (%) (%) (g/t) + Zn)
(%) (%)
-------- ---------- ------- ----- ------- -------- -------- ------- ----- ------ ------- --------
4.04 5.30 6.50 0.11 41 11.8 4.67 4.44 5.40 0.14 32 9.8
-------- ---------- ------- ----- ------- -------- -------- ------- ----- ------ ------- --------
Indicated Inferred
------------------------------------------------------- ---------------------------------------------------
Pb Zn Cu Ag (Pb Pb (t) Zn Cu Ag (Pb
(t) (t) (t) (t) + Zn) t) (t) (t) + Zn)
(t) (t)
---------- ---------- ------------ ------- -------- ---------- ------------ ------ ------- --------
214,416 262,562 4,285 165 476,978 207,316 252,348 6,447 149 459,664
---------- ---------- ------------ ------- -------- ---------- ------------ ------ ------- --------
Source: Toral Zinc-Lead Silver Project, Mineral Resource
Estimate NI 43-101 Technical Report prepared by Micon International
Co Limited, 30 April 2012
The mineral resources presented in Table 1 above are not mineral
reserves as they have not been subject to adequate economic studies
to demonstrate their economic viability.
Pursuant to the requirements of ASX Listing Rule 5.12.9, Ferrum
Crescent provides the following cautionary statement:
The Foreign Estimate of mineralisation reported by Micon
International Co. Limited and included in this announcement is not
compliant with the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (2012 JORC Code) and is
a 'Foreign Estimate' for the purposes of the ASX Listing Rules.
A Competent Person (as defined under the ASX Listing Rules) has
not yet carried out sufficient work to classify the Foreign
Estimate as a Mineral Resource or Ore Reserve in accordance with
the 2012 JORC Code and it is uncertain that following evaluation
and/or further exploration work that the Foreign Estimate will be
able to be reported as mineral resources in accordance with the
2012 JORC Code.
Please refer to the information provided in Appendix A to this
announcement in accordance with ASX Listing Rule 5.12.
For further information on the Company, please visit
www.ferrumcrescent.com or contact:
Ferrum Crescent Limited
Justin Tooth, Executive Chairman
Grant Button, Director and Company Secretary T: +61 8 9474 2995
UK enquiries:
Laurence Read (UK representative) T: +44 7557 672 432
Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler T: +44 (0)20 7409 3494
Beaufort Securities Limited (Broker)
Elliot Hance T: +44 (0)20 7382 8300
Bravura Capital (Pty) Ltd (JSE Sponsor)
Doné Hattingh T (direct): +27 11 459 5037
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ('MAR').
Extract: NI 43-101 Technical Report in respect of the Toral
Project
The following information has been selectively extracted from
the NI 43-101 Technical Report prepared in respect of the Toral
Project to enable an understanding of the reliability of the
Foreign Estimate set out above.
1. Description of the Project
The Toral zinc-lead-silver permit is located near Ponferrada in
the west of the province of León, Autonomous Community of Castile
and León, Spain approximately 400 km northwest of Madrid.
2. Historic Work
-- Between 1975 and 1985, the Adaro/Peñarroya joint venture
carried out exploration on the four separate licences which now
correspond, approximately, to the Toral permit area. Over a period
of nine years, a topographical survey, geological mapping, a
hydrogeological study and more than 40,000m of diamond drilling (62
holes and 41 wedges) were carried out.
-- Lundin Mining S.L. (Lundin) acquired the Toral investigation
permit no. 15.199 in 2007 and commenced exploration in April 2007.
Lundin compiled the information collected by the previous licence
holders including:
o a review of the available geological maps, plans, sections and
assays;
o surveying old workings, old drill pads, and drill hole
locations; and,
o a study of the existing Peñarroya/Adaro drill holes,
description, photography.
In addition, samples of drill core were sent to ALS Chemex in
Canada in order to validate the reliability of the existing assays
and exploration information was digitised. The results of Lundin's
preliminary work confirmed the mineral potential of the Toral area.
However, it was apparent that the continuity and the thickness of
the mineralisation were insufficiently detailed.
Consequently, an exploration programme was designed to add
information to the data set for a better understanding of the
deposit. In 2007 to 2009, seven diamond holes for a total of
4,523.7m were drilled for the purpose of confirming the continuity
of the mineralisation in the San Jose area of the Toral permit and
also to test the possibility of an extension of the mineralisation
in depth (see section 6 below).
-- GoldQuest acquired Lundin, including the Toral permit, in
January 2010. During 2011 and 2012, GoldQuest conducted systematic
geological mapping and soil sampling.
3. Geology
The Toral permit is located in the West Asturian Leonese Zone
(WALZ), one of the tectonostratigraphic units in the Variscan (or
Hercynian) Orogen of the north-western portion of the Iberian
Peninsula. Within the WALZ, the permit area is located in the
domain of the Mondoñedo Mantle.
The most significant mineralisation is found in the upper
carbonate layers of the Vegadeo Formation, at the contact between
the Vegadeo Formation and the younger Los Cabos Series. The
mineralisation comprises sulphides interbedded in limestones and
dolomites, within a silicified facies, and in chloritic breccias.
The mineralisation is epigenetic and formed during a metamorphic
episode within the Hercynian Orogeny. The sulphide mineral
assemblage comprises sphalerite, galena, pyrite and
chalcopyrite.
The Toral deposit is steeply-dipping and has a sheet-like
structure. Zinc and lead occur in coarse-grained sulphide minerals
although the pyrite content is relatively low.
4. Mineralisation
The stratabound mineralisation of the Upper Vegadeo Formation
(the Middle and Upper Members) occurs along the contact between the
massive limestone and the overlying shale and minor sandstone of
the Cabos Series. Although three types of mineralisation have been
identified (Tornos et al., 1996), "silica", "carbonate" and
"chloritic breccias", the silica type, associated with
silicification, is volumetrically more important.
The upper contact of the Vegadeo Formation with the overlying
Los Cabos Series at Toral is marked by discontinuous zinc-lead
sulphide mineralisation. The main metallic minerals are sphalerite,
galena, pyrite and chalcopyrite. Gangue minerals consist of quartz,
calcite, dolomite, muscovite and chlorite. Chemical analyses show
that this area is characterised by high concentration of zinc, lead
and silver and low concentrations of copper and gold.
The sulphide minerals occur in a variety of settings:
-- as clots within silicified limestone;
-- lining drusy quartz cavities in silicified limestone/dolomite;
-- cements within brittle breccias; and,
-- along stylolites in milky quartz veins.
The first two types of occurrence are interpreted as original
(diagenetic), whereas the brittle breccias and tylolites are later.
Stylolites are typical of low grade metamorphism and commonly
contain accumulations of graphitic material.
Upper Member Mineralisation
This type of mineralisation is spread over a strike length of
more than 40km in the Vegadeo Formation and occurs on both flanks
of the Caurel-Toral anticline and related fold structures (Tornos
et al., 1996). Its common stratigraphic position is within the
upper metres of the dolomitised layers of the middle and Upper
Members of the Vegadeo limestone units. Four styles of
mineralisation have been identified based on morphology, internal
structure, the mineralogy or the alteration type of the host
rock:
-- Silica mineralisation: replacement of the carbonates by
epigenetic silicification, sharp contact between the Vegadeo
Formation and Los Cabos Series, and abrupt contact, irregular
towards the base;
-- Chloritic breccia: limestone fragments cemented with calcite,
chlorite and sulphide minerals, within the Vegadeo/Los Cabos
units;
-- Carbonate mineralisation: fragments of shale and carbonate
rocks, cemented by carbonate or sulphide disseminations with
dolomite; and,
-- Late remobilisation: vein or breccia morphology, superposed
on the previous fractures or associated with discordant
fractures.
It is suggested that the mineralisation of the Upper Vegadeo
Formation, is late-Hercynian, originating from the movement of
fluids of deep origin mobilised by the compression induced during
the Hercynian Orogeny. Fluid inclusions are formed by reaction with
carbonate aqueous fluid, at a temperature of 200 C, with low
salinity, flowing preferentially along the contact between
carbonates of the Vegadeo Formation and pelite of the Los Cabos
Series. Sulphur isotope analysis suggests a predominant source of
mineralisation in the limestones. The imbalance of the fluids with
the carbonates leads to a replacement with silica and precipitation
of sulphides. Carbonate mineralisation represents an intermediate
stage of this process, while the chloritic breccia could be related
to the generation of overpressure zones during the latter stages of
the Hercynian Orogeny.
The diagenetic mineralisation of the Lower Member of the Vegadeo
Formation pre-dates the Hercynian mineralisation. Pelitic rocks may
have been the source of zinc and lead.
5. Deposit Types
The Vegadeo Formation hosts abundant zinc-lead mineralisation.
The principal zone of mineralisation occurs in the Upper Member as
stratabound deposits and discordant replacement associated with
pervasive epigenetic silicification and minor hydrothermal
breccias. Mineralisation is interpreted to have formed by reaction
of the host carbonates with low salinity fluids circulating along
major lithological contacts or extensional faults.
Mineralisation in the Upper Member is associated with the
contact between the Vegadeo limestone and the lowest units of the
Los Cabos Series. In general, it appears that the earliest
mineralisation phase is relatively enriched with sphalerite, while
the galena and chalcopyrite characterise the later phases. The
associated silicification occurs along stratification and
lamination planes, or in favour of fractures. A dolomitisation
process also appears to have accompanied the silicification. Minor
stratiform showings occur in the sub-tidal limestones of the Lower
Member and are interpreted to be related to diagenetic processes
for which the sulphur was provided from the reduction of
interbedded sulphates. The genesis is similar to the Mississippi
Valley-Type (MVT).
While, generally, the carbonate-hosted zinc-lead deposits of the
WALZ share some of the characteristics of Mississippi Valley-Type
(MVT) deposits, they differ from the majority in being situated
within an orogenic belt (Tornos et al., 1996) and, also, in having
characteristics associated with sedimentary exhalative (SEDEX)
deposits.
6. 2010/2011 Exploration
During 2010 and 2011, GoldQuest conducted systematic geological
mapping and soil sampling in two separate zones across the permit
area, Zone 1 and Zone 2. The latest geological map produced by
GoldQuest is displayed in Figure 1.
Zone 1 of Toral was investigated with a geochemistry grid of
100m by 25m on 17 lines. For Zone 2 a grid of 200m by 25m on 14
lines was used, with an additional grid of 100m by 25m of 8 lines
along the anomalous zones in the area of the MF1 fault zone. The
total number of soil and rock samples collected was 2,686. The soil
samples were analysed by ALS-Chemex by ICP-41 for 35 elements
including Pb, Zn, Cu, Ag, Hg, As, Cd, Ba, Co, S, Ca, Fe, Mg and
Mn.
There is a secondary anomaly parallel to the main anomaly,
located higher in elevation. This secondary anomaly is related to a
reverse fault, which appeared in the old surface drill holes of the
1970's, and warrants further study. The geological mapping
identified the reverse fault as a thrust, which could be
responsible for the repetition of the mineralised horizon (for
example in lines 18 and 19 in Zone 2). The shear zone (S-1) shifts
the mineralised horizon that appears at surface (lines 5 and 6) and
in outcrops between lines 1 and 4.
The other faults oriented N60E (SJF, SJF2 and SJF3), which cut
the shear zone (S-1) and the mineralised zone, delimit the area
where the major anomaly is widest, both for soil and rock samples,
and for all major elements analysed. The distance between these
faults is 550m. The rest of the anomalies are related to faults and
tectonic contacts. Notably an additional anomalous area was
discovered in Zone 2 where line 24 intersects with fault SJF5
(Figure 1, Figure 2 (Map B) and Figure 3 (Map B)).
7. Drilling
During 2007 and 2008 Lundin undertook a drilling programme at
Toral. Seven holes were drilled by Lundin to confirm the continuity
of the mineralisation in the San Jose area and also to test the
possibility of an extension of the mineralisation at depth.
The samples were prepared in a Lundin laboratory in Sweden and
were then sent to the ALS Chemex laboratory in Vancouver, Canada
for analysis. The samples were analysed for 47 elements by ICP,
including Pb, Zn, Cu and Ag. The laboratory is ISO17025
compliant.
The programme was designed to confirm the widths and grades of
mineralisation in the previously compiled database and to obtain
confirmatory data to allow the preparation of a CIM
Standards-compliant mineral resource estimate.
The sulphide zones returned zinc and lead mineralisation as
anticipated and appear to be consistent with the grade indicated by
the historic drilling. The significant intersections are summarised
in Table 2. There were insufficient holes or data to draw firm
conclusions as to the validity of the historic drilling and no
holes were twinned. However, the grades and thicknesses reported
are consistent with those anticipated from the historic data. The
Lundin drilling also demonstrated that the deposit extends to
depth.
Table 2: Visual Mineralised Intervals from 2007 to 2008
Drilling
Hole Visual Mineralisation Mineralised
ID Mineralised Interval Description
Interval
------- ---------------- ------------------------------------------ ----------------------
From To Thickness True Thickness Zn Pb
(m) Estimate (%) (%)
(m)
------- ------- ------- ---------- --------------- ------ ----- ----------------------
Gray limestone,
TOR sphalerite
7001 711.6 713.3 0.5 0.1 13.95 6.64 and galena
------- ------- ------- ---------- --------------- ------ ----- ----------------------
Gray silicified
limestone,
TOR galena sphalerite,
7002 485.3 487.8 1.25 0.68 1.00 0.88 pyrite
------- ------- ------- ---------- --------------- ------ ----- ----------------------
Silicified
limestone,
sphalerite
and galena
TOR in quartz
7003 370 372.1 1.62 1.43 1.60 1.18 vein
------- ------- ------- ---------- --------------- ------ ----- ----------------------
Gray limestone,
TOR sphalerite
7004 410.25 411.25 0.77 0.51 4.84 0.48 and galena
------- ------- ------- ---------- --------------- ------ ----- ----------------------
Silicified
limestone,
galena, sphalerite
and chalcopyrite
425.25 427.55 2.23 1.46 5.19 4.95 traces
------- ------- ------- ---------- --------------- ------ ----- ----------------------
Silicified
limestone,
TOR sphalerite
7005 391.4 395.9 0.87 0.83 8.29 6.12 and galena
------- ------- ------- ---------- --------------- ------ ----- ----------------------
Light gray
and white
dolomite,
sphalerite
and galena
TOR Dolomitic
7006 924.4 929.05 0.82 0.50 4.00 0.59 breccia
------- ------- ------- ---------- --------------- ------ ----- ----------------------
0.87 0.54 3.4 1.57
------- ------- ------- ---------- --------------- ------ ----- ----------------------
Source: Toral Zinc-Lead Silver Project, Mineral Resource
Estimate NI 43-101 Technical Report prepared by Micon International
Co Limited, 30 April 2012
From the analysis of the information obtained during this
campaign, and comparison with the previous data in sections and in
three dimensions; as well as the comparison with other sites,
principally the Antonina and Rubiales mines, it was concluded that
the mineralisation is structurally controlled. Although the contact
between Los Cabos Series and Vegadeo Formation is always more or
less mineralised, the major concentrations occur in areas between
the faults of the "Sil" and "San Jose" types.
8. Sample Preparation and Analysis
Peñarroya/Adaro Exploration Work
During the 1975-1985 exploration campaigns, the samples were
analysed by Peñarroya. Since Lundin did not have complete
information on the sample preparation and analysis of the
exploration samples, and because some of the assay data were
missing, the majority of the Peñarroya/Adaro core samples stored in
the IGME facility in Cordoba have been sent in 2006 to Chemex
laboratory in Canada for multi-elements analysis.
Lundin Exploration Work
During the 2007 campaign, the selected samples were processed in
Villalba, Provincia de Lugo, where the mining and metallurgical
company Outokumpu operated a sample preparation facility.
The half-core was sampled and crushed to 0.35 cm using a jaw
crusher. If the sample was wet, it was oven-dried for two hours.
The sample was crushed again to a size of 0.15 cm, using a cylinder
crusher. A maximum of 2 kg of the crushed sample was then reduced
to 400 microns in a vibration mill. A 100-g sample was sent for
analysis.
The prepared samples were sent to ALS Minerals, ALS Chemex
Canada Ltd. laboratory in Vancouver, Canada for analysis. The
samples were analysed for 47 elements by ICP, including Pb, Zn, Cu
and Ag.
The ALS Minerals, ALS Canada Ltd. laboratory is independent of
GoldQuest and Portex, and is ISO17025 compliant.
It is Micon's opinion that the sample preparation procedures and
analytical procedures used by GoldQuest are appropriate for
assessing the mineralisation of the Toral deposit.
9. Data Verification
Drilling and Analysis Procedure Verification
A site visit was made to the project by Stanley C. Bartlett,
M.Sc., PGeo. in June 2010. During the site visit Micon inspected
outcrops, the soil sampling grid, some old adits and a number of
drilling sites. Micon reviewed all aspects geological mapping and
soil and rock chip sampling with the local geologists responsible
for the work. No drilling was underway at the time of its site
visit and, therefore, Micon was unable to observe drilling
procedures whilst on-site.
At the facilities of Sondeos y Perforaciones Industriales del
Bierzo, S. A., located at San Román de Bembibre, where the drill
core is stored, drill core was reviewed and logging and sampling
methods were discussed with geologists and technicians responsible
for the work. Micon's examination of the core indicates that it has
been stored appropriately with basic procedures for box
identification and core marking correctly observed.
Following the 2010 site visit, a programme of further
exploration was agreed. The work included additional geological
mapping and interpretation of the geology, particularly focusing on
the structural interpretation. Micon communicated with GoldQuest
geologists prior to the commencement of the work and at the
conclusion of the work and reviewed GoldQuest's interpretation of
the data. Micon accepted the GoldQuest data and incorporated it
into the mineral resource estimate. GoldQuest also provided Micon
with copies of assay certificates for the 2006 re-assay of the
Peñarroya/Adaro cores and for the 2007 to 2008 assays on core
drilled by Lundin.
Micon concluded that all aspects of the exploration activities
and data collection were to a high standard with one exception: the
lack of independent certified standards for assay quality
control.
Verification of the Peñarroya/Adaro core analysis
The pulp rejects of mineralised Peñarroya/Adaro core samples
stored at the IGME facility in Cordoba were sent by Lundin in 2006
to the ALS Chemex laboratory in Vancouver, Canada, for
multi-element analysis.
The GoldQuest database contains assay results for a total of 806
samples: 742 Peñarroya/Adaro samples and 64 Lundin samples. Among
these are 112 samples which were not re-assayed by Lundin and all
but three have been retained in the assay database. Out of these
109 samples with old assays, 80 have a Ag assay, 108 have a Zn
assay, 108 have a Pb assay and 30 have a Cu assay.
In order to validate the 109 old samples that remain in the
assay database but which were not re-assayed by Lundin, a
comparison of the historical and verification assay results for Zn,
Pb, Ag and Cu has been undertaken by Micon. These 109 samples
represent 13.6% of the assay database [109/(806-3)=13.57]. A total
of 113 samples have been compared for Cu, 415 for Zn, 422 for Pb
and 210 for Ag. These samples cover the grade range of the 109
samples for these elements. The statistics on the data are
summarised in Table 3.
Table 3: Statistics of the Peñarroya/Adaro Assay
and ALX Chemex Re-assay for Zn, Pb, CU and Ag
---------------------------------------------------------------------------------------------------------------------
Parameter Grade (% Zn) Grade (% Grade (% Grade (%
Pb) Cu) Ag)
------------------------ ------------------------- -------------------- -------------------- --------------------
Historical Chemex Historical Chemex Historical Chemex Historical Chemex
Laboratory Laboratory Laboratory Laboratory
---------- ----------- ----------- ------------ ----------- ------- ----------- ------- ----------- -------
Mean 2.11 1.99 1.84 1.71 0.126 0.122 24.20 22.90
------------------------ ----------- ------------ ----------- ------- ----------- ------- ----------- -------
Standard
Deviation 4.51 4.18 4.25 3.95 0.31 0.30 38.00 37.00
------------------------ ----------- ------------ ----------- ------- ----------- ------- ----------- -------
Correlation
Coefficient 0.97 0.98 0.99 0.92
------------------------ ------------------------- -------------------- -------------------- --------------------
Number of
Samples 415 422 113 210
------------------------ ------------------------- -------------------- -------------------- --------------------
No.
of Positive
Pairs* variance 188 (45.3%) 167 (39.6%) 43 (38.1%) 62 (29.5%)
---------- ------------ ------------------------- -------------------- -------------------- --------------------
Negative
variance 209 (50.4%) 238 (56.4%) 57 (50.4%) 107 (51.0%)
------------ ------------------------- -------------------- -------------------- --------------------
No variance 18 (4.3%) 17 (4.0%) 13 (11.5%) 41 (19.5%)
------------ ------------------------- -------------------- -------------------- --------------------
Bias** 2.8% 3.6% 1.8% 2.7%
------------------------ ----------- ------------ ----------- ------- ----------- ------- ----------- -------
*Positive variance: number of pairs with Chemex laboratory
assay higher than Peñarroya laboratory assay;
negative variance: number of pairs with Chemex laboratory
assay lower than Peñarroya laboratory assay;
no variance: number of pairs with identical assays
for the two laboratories**Bias of Peñarroya
Laboratory against the average of the two laboratories
---------------------------------------------------------------------------------------------------------------------
Source: Toral Zinc-Lead Silver Project, Mineral Resource
Estimate NI 43-101 Technical Report prepared by Micon
International Co Limited, 30 April 2012
Table 4: Repartition of the
Samples in Error Categories
----------------------------------------------------------------
Element Error Category
------------------------ --------------------------------------
< 10% < < 50% > 50%
20%
---------- ----------- ----------- ---- ------ -----------
Pb (%) < 0.1 20% 35% 76% 24%
----------- ----------- ----------- ---- ------ -----------
>= 0.1 71% 85% 92% 8%
---------------------- ----------- ---- ------ -----------
All 53% 67% 86% 14%
---------------------- ----------- ---- ------ -----------
Zn (%) < 0.1 24% 38% 65% 35%
----------- ----------- ----------- ---- ------ -----------
>= 0.1 69% 85% 93% 7%
---------------------- ----------- ---- ------ -----------
All 52% 67% 83% 17%
---------------------- ----------- ---- ------ -----------
Cu (%) < 0.03 20% 24% 62% 38%
----------- ----------- ----------- ---- ------ -----------
>= 0.03 70% 92% 97% 3%
---------------------- ----------- ---- ------ -----------
All 36% 46% 73% 27%
---------------------- ----------- ---- ------ -----------
Ag (g/t) < 5 41% 41% 51% 31%
----------- ----------- ----------- ---- ------ -----------
>= 5 38% 61% 82% 18%
---------------------- ----------- ---- ------ -----------
All 39% 54% 72% 22%
---------------------- ----------- ---- ------ -----------
All
Elements < cut-off 26% 35% 64% 32%
----------- ----------- ----------- ---- ------ -----------
>= cut-off 62% 80% 91% 9%
---------------------- ----------- ---- ------ -----------
All 45% 59% 79% 20%
---------------------- ----------- ---- ------ -----------
Source: Toral Zinc-Lead Silver
Project, Mineral Resource
Estimate NI 43-101 Technical
Report prepared by Micon International
Co Limited, 30 April 2012
Correlation plots were generated to assess the correlation
between the original assay and the repeat assay result. The
analysis shows that there is a slight positive bias between the
historical assays and the average of the two sets of results. As
the bias is very low (between and 1.8% and 3.6%), and the
proportion of positive and negative pairs is not strongly out of
balance, Micon considers this bias to be insignificant. There is a
good correlation between the sets of data for the four elements, as
shown by high correlation coefficients between 0.92 and 0.99. For
all elements, only 59% of the pairs have a difference that is less
than 20% of the original value. As would be expected, the higher
relative differences between assays are found in low grade samples
since the precision of analysis is generally lower as it approaches
the detection limit. Of the samples with original assays greater
than the selected cut-off grades (0.1% Pb, 0.1% Zn, 0.03 Cu and 5
g/t Ag), the proportion of pairs with a difference that is less
than 20% reaches 80%. Most of the samples fall within the
acceptable error range of 20%.
Micon has concluded that the results of the comparison between
historical assays and reassays are satisfactory and, therefore, the
109 historical samples that have not been reassayed can be used in
the database for mineral resource estimation.
10. Mineral Resources Estimate
The Toral mineral resource estimate was prepared in compliance
with the CIM Standards. The mineral resource estimate utilised
assay data from diamond drilling completed by Lundin in 2007-2008,
and mainly assay data from older Peñarroya/Adaro diamond drill
holes. Surpac mining software was used for mineral resource
modelling.
Database
The database used to estimate the mineral resources of the Toral
deposit contains 86 diamond drilling holes, including 79 holes
(45,951.0m) drilled by Peñarroya/Adaro and 7 holes (9,727.60m)
drilled by Lundin, and 23 trenches (560m). The database contains
geological logging for the trenches but no assay information.
Specific Gravity
The average specific gravity used for resource calculation is
3.0 g/cm3.
Mineralised Wireframes
GoldQuest geological model of Zone 1 of the Toral deposit
(sections III to XVIII) was sent to Micon in January 2011,
including a model of the mineralisation and some of the faults used
in the interpretation of the mineralisation, built in Recmin
software.
GoldQuest's interpretation is based on geological mapping
achieved by Peñarroya/Adaro and GoldQuest and on the
Peñarroya/Adaro and Lundin drill holes. The interpretation work
continued in 2011 for the areas around Zones 1 and 2.
The model of the mineralisation sent by GoldQuest was not a
valid triangulation file (it contained an important number of
self-intersection triangles) and did not include the samples, as
the sections were not snapped on the drill holes.
Micon created a three-dimensional wireframe solid model for the
mineralised zone, following the interpretation and the parameters
of GoldQuest (cut-off grade of 1 % [Pb/2+Zn] and a minimum vein
width of 1m) but including the mineralised intervals and extended
on both sides of Zone 1 towards west (sections I and II) and east
(from section XVIII).
The frequency distributions of lead, zinc, copper and silver
sample populations were examined to identify the presence of
extreme high-grade outlier populations. Outlier values may result
from sampling errors and can exert an undue influence during block
grade interpolation. They can result in over-estimation of block
grades and lead to poor reconciliation of expected and actual metal
production. The methodology employed for establishing the outlier
limit was to examine the distribution of the sample population.
The selection of outlier values was based on the deviation of
the grade distribution from a straight line in the probability
plot. There were no outliers identified by Micon for lead, zinc and
copper. Based on the plot and the above analyses, Micon identified
silver samples above 200 g/t Ag, as outliers. There are four silver
assays greater than the specified outlier values. Those grades were
reduced to the respective top-cutting value in the assay
database.
Within the wireframes, the sample length is variable with a
minimum of 0.1m and a maximum of 2.9m. Considering the distribution
of the sample length, Micon decided to composite all samples to
1m.
The composites were made using a best-fit algorithm that allowed
the composite length to be varied within a given tolerance of 0.2m,
in order to minimise the loss of data but maintain a consistent
composite length. The total length of the raw samples is 291.3m,
and the total length of the composite samples is 286m, which
corresponds to an acceptable loss of 1.8%. The length-weighted
average grade of the top-cut samples and the average of the
composite samples for each element are the same or very close for
the samples and the composites, which confirms that there is no
change in average grade due to compositing.
Toral Block Model
The Toral block model utilised regular-shaped blocks measuring
(X) 50m by (Y) 5m by (Z) 50m. This block size was the most
appropriate considering the morphology of the mineralisation and
the distribution of sample information. To better estimate the
volume within the mineralisation, a partial percentage within the
wireframe was calculated for each block.
A three pass estimation procedure was used for the
interpolation. The first pass used a spherical ellipse with a 100 m
radius to provide an accurate local grade estimate for the blocks
that are closest to the sample data. A minimum requirement of 5
informing samples was applied. The second estimation pass used a
200 m radius. A minimum requirement of 4 informing samples was
applied for the second pass. The third estimation pass was used to
estimate a grade for all blocks that did not receive a grade from
the first two estimation passes as they lie too far from the sample
data. A large ellipse with a 400m radius was used with a minimum of
one informing sample. For silver since there are fewer informing
samples, a larger ellipse of 450m radius was used. A maximum of 12
informing samples was used for all estimation passes. All blocks
were flagged in the block model according to the passes to be
considered separately during classification.
Grade interpolation for lead, zinc, copper and silver was
performed using Inverse Distance cubed (ID3).
All the composite samples were declustered to a volume
equivalent to the block size of the mineral resource model. Average
composite grades were imported into the block model to allow a
direct comparison of composite grade and estimated grade. This
provides insight into the accuracy of local estimates. The scatter
plots show an overall good correlation between the composite sample
data and the estimated grade. The high correlation coefficients of
0.90 for Lead and 0.78 for zinc confirm the good correlation.
Mineral Resources Estimate
Mineral resources were estimated in accordance with the
definitions contained in the CIM Standards on Mineral Resources and
Reserves Definitions and Guidelines that were prepared by the CIM
Standing Committee on Reserve Definitions and adopted by the CIM
Council on 27 November 2010. Micon classified resource blocks in
the block model based largely upon the drilling density and the
distance of the block centre from the nearest sample data. Resource
blocks estimated during the first pass were assigned to the
Indicated category and resource blocks estimated during the second
pass were assigned to the Inferred category. The resource blocks
estimated during the third pass were not assigned to any category,
because they are located too far from informing data.
Mineral resources were reported based upon their potential for
economic extraction. An economic cut-off grade of 7 % Pb + Zn was
used to define the Foreign Estimate, comprising Foreign Indicated
Mineral Resources estimated at 4.04 Mt at 11.8 Pb + Zn (%) and
Foreign Inferred Mineral Resources estimated at 4.67 Mt at 9.8 Pb+
Zn (%) (see Table 1). It was Micon's opinion that there were no
known environmental, permitting, legal, title, taxation,
socio-economic, marketing or political issues exist that would
adversely affect the mineral resources presented above.
Figure 1: 2010 Geological Map produced by GoldQuest
Figure 2: Geochemical Map of Zone 1 and 2 Displaying
Zinc Isolines - Map A
Figure 2: Geochemical Map of Zone 1 and 2 Displaying
Zinc Isolines - Map B
Figure 3: Geochemical Map of Zone 1 and 2 Displaying
Lead Isolines - Map A
Figure 3: Geochemical Map of Zone 1 and 2 Displaying
Lead Isolines - Map B
Source: Toral Zinc-Lead Silver Project, Mineral Resource
Estimate NI 43-101 Technical Report prepared by Micon International
Co Limited, 30 April 2012
http://www.rns-pdf.londonstockexchange.com/rns/7987O_-2016-11-9.pdf
Competent Person's Statements
The information in this announcement that relates to
"exploration results" and "foreign estimates" for the Toral Project
is based on information reviewed by Mr Juki Laurikko. Mr Laurikko
is a member of the European Federation of Geologists which is a
Recognised Professional Organisation for the purposes of the 2012
JORC Code. Mr Laurikko has sufficient experience that is relevant
to the style of mineralisation and type of deposits under
consideration and to the activity which he is undertaking to
qualify as a Competent Person under the ASX Listing Rules and
qualified person under the AIM Rules for Companies. Mr Laurikko is
an employee of Ferrum Crescent Limited and consents to the
inclusion in this announcement of the exploration results and
"foreign estimates" for the Toral Project in the form and context
in which it appears. Mr Laurikko confirms that the information
contained in this announcement that relates to the reporting of
foreign exploration results and estimates of mineralisation
(including the information in Appendix A) is an accurate
representation of the available data and studies for the Toral
Project and confirms that he is not aware of any new information or
data that materially affects the "exploration results" and "foreign
estimates" contained in the NI 43-101 Report and that all material
assumptions and technical parameters underpinning the estimates in
the NI 43-101 Report.
The Competent Person who prepared the NI 43-101 in respect of
the Toral Project was an employee of Micon International Co.
Limited who was not engaged by Ferrum Crescent Limited and,
therefore, was not available to Ferrum Crescent Limited to provide
a competent person sign-off in respect of this announcement.
Forward Looking Statements
This announcement contains 'forward-looking information' that is
based on the Company's expectations, estimates and projections as
of the date on which the statements were made. This forward-looking
information includes, among other things, statements with respect
to pre-feasibility and definitive feasibility studies, the
Company's business strategy, plans, development, objectives,
performance, outlook, growth, cash flow, projections, targets and
expectations, mineral reserves and resources, results of
exploration and related expenses. Generally, this forward-looking
information can be identified by the use of forward-looking
terminology such as 'outlook', 'anticipate', 'project', 'target',
'likely', 'anticipate', 'believe', 'estimate', 'expect', 'intend',
'may', 'would', 'could', 'should', 'scheduled', 'will', 'plan',
'forecast', 'evolve' and similar expressions. Persons reading this
news announcement are cautioned that such statements are only
predictions, and that the Company's actual future results or
performance may be materially different.
Forward-looking information is subject to known and unknown
risks, uncertainties and other factors that may cause the Company's
actual results, level of activity, performance or achievements to
be materially different from those expressed or implied by such
forward-looking information. Forward-looking information is
developed based on assumptions about such risks, uncertainties and
other factors set out herein.
Readers should not place undue reliance on such forward-looking
information. The Company disclaims any intent or obligations to
update or revise any forward-looking statements whether as a result
of new information, estimates or options, future events or results
or otherwise, unless required to do so by law.
APPIX A: Foreign Estimate of Mineralisation
Pursuant to ASX Listing Rule 5.12, an entity reporting foreign
estimates in relation to a material mining project must include all
relevant information in a market announcement.
The Company's responses to each of the requirements under ASX
Listing Rule 5.12 are as follows:
ASX Listing ASX Listing Rule Company Response
Rule Requirement
Reference
------------ --------------------------- ----------------------------------------
5.12.1 The source and The source of the Foreign
date of the historical Estimate is the Toral Zinc-Lead-Silver
estimates or foreign Project, Mineral Resource
estimates. Estimate, NI 43-101 Technical
Report prepared by Micon
International Co. Limited
(Micon) on behalf of GoldQuest
Mining Corporation on 14
April 2011 and subsequently
amended and reissued on behalf
of Portex Minerals Inc. on
30 April 2012 (the Technical
Report). The Technical Report
was made available on SEDAR
by both GoldQuest Mining
Corporation in 2011 and Portex
Minerals in 2012.
------------ --------------------------- ----------------------------------------
5.12.2 Whether the historical Micon prepared the Technical
estimates or foreign Report in accordance with
estimates use the requirements of Canadian
categories of National Instrument (NI)
mineralisation 43-101. This Technical Report
other than those and the Foreign Estimate
defined in Appendix contained therein were prepared
5A (JORC Code) for the Toral deposit under
and if so, an the Canadian Institute of
explanation of Mining, Metallurgy and Petroleum
the differences. Standards on Mineral Resources
and Reserves (CIM Standards).
It is the opinion of the
Competent Person identified
in this release there are
no material differences in
resource classification categories
between NI 43-101 (including
CIM Standards) and the JORC
Code.
------------ --------------------------- ----------------------------------------
5.12.3 The relevance The Foreign Estimate demonstrates
and materiality the presence of an extensive
of the historical body of zinc mineralisation
estimates or foreign at Toral.
estimates to the The project is a material
entity. mining project for Ferrum
Crescent and therefore the
reporting of the Foreign
Estimate is relevant in the
absence of a current Mineral
Resource estimate under the
JORC Code.
------------ --------------------------- ----------------------------------------
5.12.4 The reliability Our review of the sampling
of the historical methods applied and the assay
estimates or foreign protocols utilised indicate
estimates, including a systematic approach with
by reference to acceptable quality control
any of the criteria and quality assurance protocols
in Table 1 of being applied and provide
Appendix 5A (JORC confidence as to the reliability
Code) which are of the data. Please see sections
relevant to understanding 6, 7, 8 and 9 of the extract
the reliability from the Technical Report.
of the historical
estimates or foreign
estimates.
------------ --------------------------- ----------------------------------------
5.12.5 To the extent The three-dimensional geological
known, a summary model is based mainly on
of the work programmes the historical geological
on which the historical property database compiled
estimates or foreign by the previous owners of
estimates are the Toral property, Peñarroya
based and a summary España S.A (Peñarroya)
of the key assumptions, and Empresa Nacional ADARO
mining and processing de Investigaciones Mineras,
parameters and S.A, (Adaro), and which includes
methods used to more than 40,000m of diamond
prepare the historical drilling. In addition, the
estimates or foreign database includes the results
estimates. of drilling carried out by
Lundin Mining S.L. (Lundin)
in the period 2007 to 2008.
Exploration on the property
commenced in 1975, on four
licences, San José,
Santa Bárbara, Carmina
Segunda and Berciana the
area of which corresponds
approximately to the permit
held by Ferrum Crescent.
As noted above, Adaro and
Peñarroya, through a
joint venture, conducted
a 40,000-m exploration drilling
campaign over a 9-year period.
A feasibility study was conducted
in 1985, but unfavourable
market conditions stalled
the project.
In 2006, Lundin acquired
the Toral investigation permit
No. 15.199 in 2007. The permit
allowed for exploration for
lead, zinc, silver and limestone,
over a period of three years.
On 15 January 2010, GoldQuest
completed the acquisition
of all issued and outstanding
shares of Lundin, including
the Toral property, from
its parent company Lundin
Mining Corporation.
The Foreign Estimate was
prepared in compliance with
the CIM Standards. The Foreign
Estimate utilised assay data
from diamond drilling completed
by Lundin in 2007-2008, and
mainly assay data from older
Peñarroya/Adaro diamond
drill holes. Surpac mining
software was used for mineral
resource modelling.
The database used to calculate
the Foreign Estimate in respect
of the Toral deposit contains
86 diamond drilling holes,
including 79 holes (45,951.0m)
drilled by Peñarroya/Adaro
and 7 holes (9727.60m) drilled
by Lundin, and 23 trenches
(560m). The database contains
geological logging for the
trenches but no assay information.
The average specific gravity
used for resource calculation
is 3.0 g/cm3.
Outlier values based on deviation
of the grade distribution
form a straight line in the
probability plot were not
identified by Micon for lead,
zinc or copper. However,
four silver assays returned
statistically high values
and these have been but to
200g/t Au as outliers. Within
the wire frames, Micon decided
to composite tall samples
to 1m.
The Toral block model utilised
regular-shaped blocks measuring
(X) 50m by (Y) 5m by (Z)
50m. This block size was
the most appropriate considering
the morphology of the mineralisation
and the distribution of sample
information.
------------ --------------------------- ----------------------------------------
5.12.6 Any more recent To the best of Ferrum Crescent's
estimates or data knowledge, no additional
relevant to the recent estimates to the reported
reported mineralisation mineralisation exist.
available to the
entity.
------------ --------------------------- ----------------------------------------
5.12.7 The evaluation Upon acquisition of the Toral
and/or exploration Project, Ferrum Crescent
work that needs was provided with the current
to be completed Project database. The database
to verify the is considered to be of sufficient
historical estimates quality to carry out project
or foreign estimates assessments.
as mineral resources No further exploration work
or ore reserves is considered necessary to
in accordance verify the Foreign Estimate,
with Appendix however Ferrum Crescent intends
5A (2012 JORC to undertake evaluation of
Code). the existing data and limited
structural, geological and
metallurgical studies prior
to preparing any mineral
resource estimate in respect
of the Toral Project in accordance
with the 2012 JORC Code.
------------ --------------------------- ----------------------------------------
5.12.8 The proposed timing Ferrum Crescent anticipates
of any evaluation completing the evaluation
and/or exploration and additional exploration
work that the work of the Toral Project
entity intends during 2017.
to undertake and The work programme will be
a comment on how funded from existing cash
the entity intends resources and future equity
to fund that work. capital raisings.
------------ --------------------------- ----------------------------------------
5.12.10 A statement by Please refer to the statement
a named competent by Mr Juki Laurikko contained
person or persons in this release.
that the information
in the market
announcement provided
under rules 5.12.2
to 5.12.7 is an
accurate representation
of the available
data and studies
for the material
mining project.
The statement
must include the
information referred
to in rule 5.22(b)
and (c).
------------ --------------------------- ----------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLUKOBRNNAARAA
(END) Dow Jones Newswires
November 10, 2016 02:00 ET (07:00 GMT)
Europa Metals (LSE:EUZ)
Historical Stock Chart
From Apr 2024 to May 2024
Europa Metals (LSE:EUZ)
Historical Stock Chart
From May 2023 to May 2024