TIDMMTL
RNS Number : 5072B
Metals Exploration PLC
14 February 2022
METALS EXPLORATION PLC
Updated Mineral Resource and Ore Reserve Estimate
Metals Exploration plc (AIM: MTL) ("Metals Exploration", the
"Company" or the "Group"), a gold producer in the Philippines,
today provides an updated Mineral Resource Estimate and Ore
Reserves Statement at its Runruno gold project ("Runruno" or the
"Project") in the Philippines.
Summary of Report
In association with the Company's review of its mining plan for
the remaining life of mine ("LOM"), the Company commissioned Robin
Rankin of GeoRes Consulting to verify the Company's updated JORC
compliant Mineral Resource Estimate (the "MRE") for the Runruno
project. The last MRE was independently compiled in 2011 by Mining
Associates.
At present, mining rates estimated in the new MRE indicates a
mine life of at least five years with possible extensions through
further drilling.
Orebody domains and wireframes have been updated using
information obtained from 49 new diamond drill holes and the
compilation of a new structural geology model. Using updated
univariate statistics and variography, a new Ordinary Kriged
estimate was used to generate a 10 metres x 10 metres x 5 metres
Block Model of the Mineral Resource. Table 1 below shows the
breakdown of the 2021 MRE by resource category.
Table 1: Updated 2021 Total Mineral Resource Estimate
Main Runruno Ore Gold Sulphur
Resource Category Mt g/t Moz % Mt
----- ----- ----- ----- -----
Measured 12.1 1.66 0.65 1.48 0.18
----- ----- ----- ----- -----
Indicated 9.3 1.44 0.43 1.16 0.11
Inferred 5.1 1.14 0.19 1.03 0.05
----- ----- ----- ----- -----
Total 26.5 1.48 1.27 1.29 0.34
----- ----- ----- ----- -----
The new drilling generally intercepted lower grades on the
Western extensions of the Runruno ore body, which is in line with
the actual mining outcomes experienced. Shorter ranges were used in
the variograms which better reflect the style of mineralisation.
The block size used in this model was reduced to 10 metres x 10
metres x 5 metres in order to better define the thinner lode
structures and reduce waste dilution within the model.
Table 2 below compares the 2021 MRE to the previous official MRE
release in 2011.
Table 2 - Comparison of the 2011 and 2021 Mineral Resource
Estimates
Main Runruno Ore Gold
Resource Category Mt g/t Moz
----- ----- -----
2011 Resource Measured 11.2 1.88 0.68
----------- ----- ----- -----
Indicated 7 1.64 0.37
--------------------------- ----- ----- -----
Inferred 7.5 1.44 0.35
--------------------------- ----- ----- -----
Total 25.7 1.69 1.39
--------------------------- ----- ----- -----
2021 Resource Measured 12.1 1.66 0.65
----------- ----- ----- -----
Indicated 9.3 1.44 0.43
--------------------------- ----- ----- -----
Inferred 5.1 1.14 0.19
--------------------------- ----- ----- -----
Total 26.5 1.48 1.27
--------------------------- ----- ----- -----
Variance Measured 8% -12% -4%
----------- ----- ----- -----
Indicated 33% -12% 16%
--------------------------- ----- ----- -----
Inferred -32% -21% -46%
--------------------------- ----- ----- -----
Total 3% -12% -9%
--------------------------- ----- ----- -----
The new resource model shows an increase in tonnage but at a
lower grade. The net result is an overall increase of 30,000
Measured and Indicated Resource ounces.
Updated Ore Reserve Estimate
The updated 2021 MRE was used by the Company to re-optimize the
open pit and calculate a new Ore Reserves Estimate for its Runruno
project. This work was carried out in-house and independently
verified by Xenith Consulting, compilers of the 2020 Ore Reserve
estimate. Set out below are several matters that should be
considered in conjunction with the Updated Ore Reserve
Estimate:
-- Updated structural geology and geotechnical models were used in the pit optimisation;
-- Pit optimisation was based on an average 80% recovery and US$1,750/oz gold price;
-- The higher gold price drove a lower economic cut-off grade of
0.53 g/t gold vs 0.56 g/t in 2020;
-- Pit designs were updated based on the optimisation results to
include ramps and other accesses;
-- Both in-pit and ex-pit waste dumps were redesigned and optimised;
-- A new life of mine schedule was developed based on the updated pit designs;
-- Updated mine economics were based on the Company's internal
budgets and economic models; and
-- A substantial amount of mineral resource remains uneconomic
due to grade, depth and/or terrain restrictions, or a combination
of these factors.
The remaining estimated ore Reserves as verified by Xenith
Consulting as at February 2022 are set out in Table 3 below:
Table 3: 2022 Ore Reserve Estimate
Reserve Ore Gold
Category Mt g/t M Oz
----- ----- -----
Proved - - -
----- ----- -----
Probable 9.94 1.35 0.43
----- ----- -----
Total 9.94 1.35 0.43
----- ----- -----
Inferred included in LOM model pit
Inferred material 0.69 1.11 0.02
----- ----- -----
-- Mining grade dilution reduced to 20% based on model reconciliations.
-- Unchanged mining recovery of 85% inclusive of a 5% mining loss.
-- Measured and Indicated Resource - converted to 9.94Mt of Probable Reserve.
-- 0.69Mt of Inferred resource represents 6% of the total reserve.
-- LOM pit design remains economic with Inferred material included at zero grade.
Reconciliation to 2020 Ore Reserve estimate
The 2020 Ore Reserves estimate, prepared by Xenith Consulting in
April 2020, is shown in Table 4 below.
Table 4: 2020 Ore Reserve Estimate
Reserve Ore Gold
Category Mt g/t M Oz
----- ----- -----
Proved Nil nil nil
----- ----- -----
Probable 11.7 1.38 0.50
----- ----- -----
Total 11.7 1.38 0.50
----- ----- -----
Inferred included in LOM model pit
Inferred material 2.7 1.21 0.10
----- ----- -----
While overall tonnes of ore have been depleted at a rate
consistent with the available tonnes as estimated in the 2020 Ore
Reserve Estimate, the updated estimated grade is lower reflecting
both new drill results and mining history.
The Company has an ongoing resource drilling programme that will
provide the basis for the next updated project Ore Reserve Estimate
and an exploration program to develop extensions to the existing
pit and available Ore Reserves.
Darren Bowden, CEO of Metals Exploration commented:
"The results released today demonstrate a life of mine of at
least five years which, given the work that we have carried out and
are undertaking we are confident can be extended.
This report shows we have an excellent project and that we have
built a solid foundation from which to grow."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014, which forms part of United
Kingdom domestic law by virtue of the European (Withdrawal) Act
2018. Upon the publication of this announcement, this inside
information is now considered to be in the public domain.
- -
Glossary of Key Terms
Cut-off grade the lowest grade value that is included in a resource
statement
g/t grams per tonne, equivalent to parts per million
--------------------------------------------------------------
grade relative quantity or the percentage of ore mineral
or metal content in an ore body
--------------------------------------------------------------
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
--------------------------------------------------------------
Inferred resource that part of a Mineral Resource for which tonnage,
grade and mineral content can be estimated with
a low level of confidence
--------------------------------------------------------------
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
--------------------------------------------------------------
Kriging A method of interpolation which predicts unknown
values from data observed at known locations. It
uses the variogram to express spatial variation,
and minimises the error of predicted values that
are estimated by spatial distribution of the predicted
values
--------------------------------------------------------------
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.
--------------------------------------------------------------
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
--------------------------------------------------------------
Mt million tonnes
--------------------------------------------------------------
oz troy ounce (= 31.103477 grams)
--------------------------------------------------------------
Probable Reserve the economically mineable part of an indicated,
and in some circumstances, a Measured Mineral Resource
. The confidence in the Modifying Factors applying
to a Probable Mineral Reserve is lower than that
applying to a Proven Mineral Reserve
--------------------------------------------------------------
Proven Reserve is the highest confidence level of the economically
mineable part of a Measured Mineral Resource
--------------------------------------------------------------
Reserve the economically mineable part of a Measured and/or
Indicated Mineral Resource
--------------------------------------------------------------
For further information please visit or contact:
Metals Exploration PLC
Via Tavistock Communications
Limited +44 (0) 207 920 3150
-------------------------
Nominated & Financial STRAND HANSON LIMITED
Adviser:
-------------------------
James Spinney, James
Dance, Rob Patrick +44 (0) 207 409 3494
-------------------------
Financial Adviser & Broker: HANNAM & PARTNERS
-------------------------
Matt Hasson, Franck Nganou +44 (0) 207 907 8500
-------------------------
Public Relations: TAVISTOCK COMMUNICATIONS
LIMITED
-------------------------
Jos Simson, Nick Elwes,
Oliver Lamb +44 (0) 207 920 3150
-------------------------
Web: www.metalsexploration.com
Twitter: @MTLexploration
LinkedIn: Metals Exploration
Competent Person's Statement
The information contained in this release that relates to the
2021 gold Mineral Resource Estimate is based on information
compiled by Mr Vyron Leal of Metals Exploration and reviewed by Mr
Robin Rankin, who is a Member of The Australasian Institute of
Mining and Metallurgy and the Australian Institute of
Geoscientists. Mr Rankin is a full-time employee of GeoRes
Consulting. Mr Rankin has sufficient experience that is relevant to
the style of mineralisation and type of deposit described in the
release to qualify as a Competent Person as defined by the JORC
Code, 2012 Edition. Mr Rankin consents to the inclusion of this
information in the form and context in which it appears in this
release.
The Ore Reserve Statement was compiled by Paola Tuyor of Metals
Exploration and reviewed and verified by Grant Walker of Xenith
Consulting. Mr Walker is a Member of The Australasian Institute of
Mining and Metallurgy and is a Competent Person as defined by the
JORC Code, 2012 Edition, having five years' experience that is
relevant to the style of mineralisation and type of deposit
described in the Report.
Mr Darren Bowden, a director of the Company, a Member of the
Australasian Institute of Mining and Metallurgy and who has been
involved in the mining industry for more than 25 years, has
compiled, read and approved the technical disclosure in this
regulatory announcement in accordance with the AIM Rules - Note for
Mining and Oil & Gas Companies.
Forward Looking Statements
Certain statements relating to the estimated or expected future
production, operating results, cash flows and costs and financial
condition of Metals Explorations, planned work at the Company's
projects and the expected results of such work contained herein are
forward-looking statements which are based on current expectations,
estimates and projections about the potential returns of the Group,
industry and markets in which the Group operates in, the Directors'
beliefs and assumptions made by the Directors . Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by words such as the
following: "expects", "plans", "anticipates", "forecasts",
"believes", "intends", "estimates", "projects", "assumes",
"potential" or variations of such words and similar expressions.
Forward-looking statements also include reference to events or
conditions that will, would, may, could or should occur.
Information concerning exploration results and mineral reserve and
resource estimates may also be deemed to be forward-looking
statements, as it constitutes a prediction of what might be found
to be present when and if a project is actually developed.
These statements are not guarantees of future performance or the
ability to identify and consummate investments and involve certain
risks, uncertainties and assumptions that are difficult to predict,
qualify or quantify. Among the factors that could cause actual
results or projections to differ materially include, without
limitation: uncertainties related to raising sufficient financing
to fund the planned work in a timely manner and on acceptable
terms; changes in planned work resulting from logistical, technical
or other factors; the possibility that results of work will not
fulfil projections/expectations and realize the perceived potential
of the Company's projects; uncertainties involved in the
interpretation of drilling results and other tests and the
estimation of gold reserves and resources; risk of accidents,
equipment breakdowns and labour disputes or other unanticipated
difficulties or interruptions; the possibility of environmental
issues at the Company's projects; the possibility of cost overruns
or unanticipated expenses in work programs; the need to obtain
permits and comply with environmental laws and regulations and
other government requirements; fluctuations in the price of gold
and other risks and uncertainties.
The Company expressly disclaims any obligation or undertaking to
disseminate any updates or revisions to any forward looking
statements contained herein to reflect any change in the Group's
expectations with regard thereto or any change in events,
conditions or circumstances on which any such statements are based
unless required to do so by applicable law or the AIM Rules.
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