TIDMSHG
RNS Number : 3125G
Shanta Gold Limited
29 March 2022
29 March 2022
Shanta Gold Limited
("Shanta Gold", "Shanta" or the "Company")
West Kenya Project Resource Increases to 1.55 Moz Gold
including
221% Increase in Indicated Ounces
Shanta Gold (AIM: SHG), the East Africa-focused gold producer,
developer and explorer, is pleased to announce an upgraded mineral
resource estimate for the West Kenya Project ("West Kenya") in
Kenya to 1.55 Moz gold, including a 221% increase in Indicated
Resource to 378 koz gold grading 11.70 g/t.
Highlights in 2021:
-- Total resources at Isulu, Bushiangala, and Ramula deposits increase by 31% to 1.55 Moz;
-- Resources of 1.12 Moz grading 10.80 g/t at Isulu and
Bushiangala, of which 34% have been upgraded to Indicated category
up from Nil at the start of 2021;
-- 221% increase in Indicated ounces ("oz") to 377,840 grading
11.70 g/t, exceeding internal expectations for 2021;
Summary (1) Indicated Inferred Total
=================== =================== ===================
Deposit Grade Ounces Grade Ounces Grade Ounces
(Au g/t) (k) (Au g/t) (k) (Au g/t) (k)
---------- ------- ---------- ------- ---------- -------
Bushiangala 7.86 109 6.59 134 7.10 243
==================== ========== ======= ========== ======= ========== =======
Isulu 14.59 269 11.92 605 12.63 874
==================== ========== ======= ========== ======= ========== =======
Liranda Region 11.70 378 10.39 739 10.80 1,117
==================== ========== ======= ========== ======= ========== =======
Ramula (2) - - 2.08 434 2.08 434
==================== ========== ======= ========== ======= ========== =======
West Kenya Project 11.70 378 5.36 1,173 6.18 1,551
---------- ------- ---------- ------- ---------- -------
1. Tonnages reported in the detailed Mineral Resource Estimate
table below
2. The Ramula Region, located 35 km from the Liranda Region,
currently hosts 7 targets including the Ramula deposit
Table above excludes the Bumbo polymetallic JORC compliant
resource in the Liranda Region
-- Current oxides in the Indicated category contain 67,070 oz
grading 15.84 g/t, providing potential excellent high margin cash
flow during future construction ramp-up;
-- Approximately 700,000 oz of additional Inferred resources
being targeted during 2022 for potential conversion to Indicated
category; and
-- A JORC 2012 compliant Mineral Resource Estimate at the Bumbo
deposit within the Liranda Region is now declared totaling 2.49 Mt
at 2.7% Zn, 1.21% Cu, 32.12g/t Ag, 0.28% Pb, and 0.76 g/t Au.
Eric Zurrin, Chief Executive Officer, commented:
"We are delighted to announce that the Mineral Resource Estimate
(MRE) at the West Kenya Project has increased by 31% to 1.55 Moz
and Indicated Resources have increased by 221% to 378 Koz grading
11.70 g/t at the end of 2021. The increase in the MRE is further
confirmation that the West Kenya Project is itself hugely exciting,
with our geologists confident that up to an additional 700 Koz of
Inferred Resources can be converted to Indicated in 2022. In
addition, new early-stage targets will be explored this year with
the aim of converting them to the Inferred resource stages. Our
West Kenya Project is located in the high-potential and
underexplored greenstone belt within the Lake Victoria Goldfields,
which already hosts world class gold mines owned by Barrick and
AngloGold Ashanti.
We now have compliant resources at four separate deposits --
Isulu, Bushiangala, Ramula, and the re-introduction of the historic
Bumbo deposit -- confirming the widespread geological prospectivity
of the West Kenya project. Future exploration of many additional
highly prospective targets has the potential to lead to a
multi-million ounce gold region.
We currently have three drill rigs operational and Feasibility
Study work begins in May 2022. Excellent visual intersections have
been observed in drilling results since the start of 2022 with
multiple occurrences of visible gold. Assay results from these
holes are due in April/May."
Analyst conference call and presentation
Shanta Gold will host an analyst conference call and
presentation today, 29 March 2022, at 09:30 BST. Participants can
access the call by dialling one of the following numbers below
approximately 10 minutes prior to the start of the call or by
clicking on the link below.
UK Toll-Free Number: +44 (0) 800 279 6894
UK Toll Number: +44 (0) 330 165 3641
PIN: 551724
https://events.globalmeet.com/Public/ClickToJoin/ZW5jPUtkL3lpYy9sQ0RiVTVWUUtFZ0hUUTlzaHl1NW5jVGVodEtGUTJ0WFZJNjRyNDRwczBGeVNwQT09
Participant Passcode: 551724
The presentation will be available for download from the
Company's website: www.shantagold.com . A recording of the
conference call will subsequently be available on the Company's
website.
Investor Presentation
Shanta Gold Limited is pleased to announce that Eric Zurrin will
provide a live presentation relating to West Kenya Resource Update
via the Investor Meet Company platform on 29th Mar 2022 at 12:30pm
BST.
The presentation is open to all existing and potential
shareholders. Questions can be submitted pre-event via your
Investor Meet Company dashboard up until 9am the day before the
meeting or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add
to meet Shanta Gold Limited via:
https://www.investormeetcompany.com/shanta-gold-limited/register-investor
Investors who already follow Shanta Gold on the Investor Meet
Company platform will automatically be invited.
West Kenya Project Resource Update - 2021
The West Kenya Project covers 1,162 km(2) of the highly
prospective and underexplored greenstone Archaean Busia-Kakamega
Gold Belt in western Kenya. Ongoing drilling at the Isulu and
Bushiangala deposits is aimed at upgrading ounces from the Inferred
Mineral Resource Estimate into the Indicated Resource category down
to a depth of 800 meters by means of three drilling campaigns. All
work carried out and reporting of the resource has been completed
in accordance with Canadian NI 43-101 standards, unless otherwise
noted.
This infill drilling is aimed at verifying the extent and
geometry of the known mineralised zones developed for the current
resource model. Shanta had completed 37% of total planned drilling
at West Kenya by the end of 2021.
Gold mineralisation at the Isulu and Bushiangala deposits is
hosted by sheared pillowed to massive basalts, bounded between
ultramafic volcanics and polymictic conglomerates on one side and
carbonaceous mudstones and sandstones on the other side. The
deposits occur within the Liranda Corridor area, a 12 km structural
trend located on the eastern limb of a broad synclinal structure
intruded in the center by granitoids and diorites, termed the
Kakamega Dome. Mineralisation is associated with quartz and
quartz-carbonate veinlets ranging from 0.5 m to 10 m in true width,
which lie within the mineralised shear zones. The mineralisation
style is classified as orogenic, shear-zone-hosted quartz-carbonate
vein subtype. The strike lengths of the steeply-dipping zones range
from 100 m to 300 m. Average drill intersection spacing is 40 m at
Isulu and 30 m at Bushiangala.
Resources have been stated using a 1 g/t Au cut-off grade value
for the oxidised rock and 3 g/t Au for fresh rock. The effective
date of this resource is 15 February 2022.
Table 1 - Updated Isulu and Bushiangala Resource by Oxide vs
Fresh Rock(1, 2)
Indicated Inferred Total
============================ ================================ ==================================
Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces
(Au (Au g/t) (Au g/t)
g/t)
------- ---------- ------ -------- ---------- ---------- -------- ---------- ---------- ----------
Oxide 131,700 15.84 67,070 353,800 6.97 79,290 485,500 9.38 146,360
======= ========== ====== ======== ========== ========== ======== ========== ========== ==========
Fresh
Rock 872,800 11.08 310,770 1,858,100 11.05 659,880 2,730,900 11.06 970,650
======= ========== ====== ======== ========== ========== ======== ========== ========== ==========
Total 1,004,500 11.70 377,840 2,211,900 10.39 739,160 3,216,400 10.80 1,117,010
------- ---------- ------ -------- ---------- ---------- -------- ---------- ---------- ----------
(1) Figures may not total exactly due to rounding
(2) Oxidised rock cut-off grade (COG) at 1.0 Au g/t. Fresh Rock
cut-off grade at 3.0 Au g/t
Table 2 - Updated Resource by Deposit (1)
Mineral Resource Prospect Tonnes Grade (Au Ounces
Category g/t)
------------- ---------- ---------- ----------
Indicated Isulu 573,400 14.59 268,960
------------------ ------------- ---------- ---------- ----------
Bushiangala 431,000 7.86 108,880
-------------------------------- ---------- ---------- ----------
Total 1,004,400 11.70 377,840
-------------------------------- ---------- ---------- ----------
Inferred Isulu 1,579,600 11.92 605,170
------------------ ------------- ---------- ---------- ----------
Bushiangala 632,300 6.59 133,990
-------------------------------- ---------- ---------- ----------
Total 2,211,900 10.39 739,160
-------------------------------- ---------- ---------- ----------
Total Isulu 2,153,000 12.63 874,130
------------- ---------- ---------- ----------
Bushiangala 1,063,400 7.10 242,880
-------------------------------- ---------- ---------- ----------
Total 3,216,400 10.80 1,117,010
-------------------------------- ---------- ---------- ----------
(1) Oxidised rock cut-off grade (COG) at 1.0 Au g/t. Fresh Rock
cut-off grade at 3.0 Au g/t
In total, Isulu and Bushiangala contain 377,840 ounces grading
11.70 g/t Indicated category with cut-off grades applied of 1.0 Au
g/t for oxidised rock and 3.0 Au g/t for fresh rock. The total
resource currently stands at 1,117,010 ounces grading an average of
10.80 g/t.
Approximately 400,000 oz of Inferred resource is being targeted
in 2022 for potential conversion to Indicated for Bushiangala and
Isulu.
Table 3 - Isulu and Bushiangala deposits: mineral resource
sensitivity to cut-off grades
FRESH ROCK
Cut-off Mean Grade
Grade Tonnes Au g/t Ounces
----------- ----------- ---------
1,018,8
0 3,599, 700 8.80 50
----------- ----------- ---------
3,450,0 1,017,57
1 00 9.17 0
----------- ----------- ---------
3,106,1 1,001,1
2 00 10.03 70
----------- ----------- ---------
3 2,730, 900 11.06 970,6 50
----------- ----------- ---------
4 2,377, 300 12.18 930,6 70
----------- ----------- ---------
2,046,1
5 00 13.42 882,9 70
----------- ----------- ---------
6 1,816, 900 14.42 842,3 70
----------- ----------- ---------
1,585,9
7 00 15.58 794,26 0
----------- ----------- ---------
OXIDE
Cut-off Mean Grade
Grade Tonnes Au g/t Ounces
----------- ----------- ---------
0 531, 200 8.58 146,580
----------- ----------- ---------
1 485, 500 9.38 146,3 60
----------- ----------- ---------
2 440,6 00 10.17 144,06 0
----------- ----------- ---------
3 37 4 , 000 11.55 138, 900
----------- ----------- ---------
4 320, 200 12.91 132,8 70
----------- ----------- ---------
5 237, 800 15.80 120,82 0
----------- ----------- ---------
6 205, 600 17.42 115,15 0
----------- ----------- ---------
7 176, 100 19.26 109,03 0
----------- ----------- ---------
Source: Cath Pitman, P. Geo - Adiuvare Geology & Engineering
(March 2022)
Resource classifications have been assigned according to the
continuity of mineralisation, known geological controls and drill
spacing. Each zone is divided into oxidised and fresh rock and a
cut-off value supplied by Shanta (and accepted by the Independent
Competent Person) has been applied. Mineralisation is well
constrained withing the mineralised shears (as seen in Table 3),
resulting in potentially increasing the number of resource ounces
by lowering the cut-off while not significantly reducing the
average gold grade.
Table 4 - Consolidated West Kenya Mineral Resource Estimate(1,
2, 3)
Indicated Inferred Total
========================= ========================= =========================
Deposit Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces
(kt) (Au (k) (kt) (Au (k) (kt) (Au (k)
g/t) g/t) g/t)
------------- -------- ------ ------- -------- ------ ------- -------- ------ -------
Bushiangala 431.0 7.86 109 632.3 6.59 134 1,063.4 7.10 243
============= ======== ====== ======= ======== ====== ======= ======== ====== =======
Isulu 573.4 14.59 269 1,579.6 11.92 605 2,153.0 12.63 874
============= ======== ====== ======= ======== ====== ======= ======== ====== =======
Liranda
Region 1,004.5 11.70 378 2,211.9 10.39 739 3,216,3 10.80 1,117
============= ======== ====== ======= ======== ====== ======= ======== ====== =======
Ramula
(1) - - - 4,591.2 2.08 434 4,591.2 2.08 434
============= ======== ====== ======= ======== ====== ======= ======== ====== =======
West Kenya
Project 1,004.5 11.70 378 6,803.1 5.36 1,173 7,807.5 6.18 1,551
------------- -------- ------ ------- -------- ------ ------- -------- ------ -------
1. The Ramula Region, located 35 km from the Liranda Region,
currently hosts 7 targets including the Ramula deposit
Table above excludes the Bumbo polymetallic JORC compliant
resource
Approximately 300,000 oz of Inferred resource is being targeted
in 2022 for potential conversion to Indicated for Ramula.
For a map showing the West Kenya Project Licence Area including
Isulu, Bushiangala, and Bumbo deposits in the Liranda Region and
Ramula deposit in the Ramula Region, and a Long Section of the
Bushiangala and Isulu deposit please see the following link Shanta
Gold - Exploration
Bumbo Deposit
The Bumbo polymetallic VMS deposit (Zn, Cu, Pb, Au, Ag) is
situated 20km to the east of Isulu-Bushiangala.
It was re-modelled, including the relogging of the drillholes,
and a compliant resource was estimated resulting in a new Mineral
Resource Estimate of 2.06 million tonnes grading 1.44% Cu and 3.26%
Zn in a base metal dominant zone, and 0.43Mt at 2.29 g/t Au in a
separate gold dominant zone, all classified as Inferred using JORC
2012 guidelines. The mineralisation comprises lensoidal
pyrrhotite-sphalerite-chalcopyrite massive sulphide and is
characterised by a central core of massive sulphides with
immediately adjacent more disseminated and inter-layered
sulphides.
The Bumbo Prospect Mineral Resource estimate is a total of 2.49
Mt at 2.7% Zn, 1.21% Cu, 32.12g/t Ag, 0.28% Pb, and 0.76 g/t Au.
This update provides options for Shanta to pursue exploration for
high-grade base-metal (plus Au), mineralisation within 20
kilometres of our Isulu-Bushiangala gold resource.
The gold zone is estimated to have 0.43 Mt at 2.29 g/t Au and
46.41 g/t Ag, for 32koz of contained gold and 643koz of contained
silver, reporting at 0.5 g/t Au cut-off.
The base metal zone is estimated to have 2.06 Mt at 3.26% Zn,
1.44% Cu, 0.28% Pb, 29.12 g/t Ag, and 0.44 g/t Au for 67Kt of
contained zinc metal, 6Kt of contained Pb metal, 30Kt of contained
copper metal, 1.9Moz of contained silver metal, and 29koz of
contained gold metal, reporting at 0.6% Zn Equivalent cut-off.
The mineralisation is broadly conformable with the host
metamorphosed sedimentary lithologies, and has been interpreted as
a volcanogenic massive sulphide (VMS) style of mineralisation with
an orogenic Au overprint. The deposit is subdivided into two main
lenses, each striking approximately east-west, and dipping steeply
to the north. The strike extent of the mineralised system is over
500m.
The exploration history at Bumbo is extensive, with historic
exploration targeting both gold and base metal mineralisation. Two
phases of drilling were carried out by BRGM, in 1990 (12 holes for
a total of 1917m) and in 1993 (22 holes for a total of 3580m).
Aviva drilled 16 diamond holes for 2324m and 5 RC holes for 410m
between 2010 and 2012.
Aviva also carried out downhole EM on selected cased holes. In
2010 Aviva conducted a regional airborne VTEM (Versatile Time
Domain Electromagnetic), radiometric and magnetic surveys over the
Bumbo deposit area to search for additional sulphide deposits. Many
of the anomalies from this geophysical work remain to be followed
up.
Two main identified lenses of massive to disseminated sulphides
were explored only up to 180m from surface and interpreted to be
open down dip.
Table 5 - Bumbo Mineral Resource Estimate(1, 2, 3)
Mineral Tonne Au Ag Zn Pb Cu Au
Classific-ation Zone Volume (Mt) Zn% Pb% Cu% g/t g/t Tonnes Tonnes Tonnes Oz Ag Oz
Inferred MS 299,000 1.05 5.99 0.32 2.51 0.56 45.02 63,000 3,000 26,000 19,000 1,514,000
--------- -------- ------ ----- ----- ----- ----- ------ ------- ------- ------- ------- ----------
Inferred STR 354,000 1.01 0.44 0.23 0.33 0.32 12.65 4,000 2,000 3,000 10,000 410,000
--------- -------- ------ ----- ----- ----- ----- ------ ------- ------- ------- ------- ----------
Sub-Total 653,000 2.06 3.26 0.28 1.44 0.44 29.12 67,000 6,000 30,000 29,000 1,924,000
-------- ------ ----- ----- ----- ----- ------ ------- ------- ------- ------- ----------
Inferred GOLD 154,000 0.43 0.05 0.33 0.08 2.29 46.41 - 1,000 - 32,000 643,000
Total 807,000 2.49 2.70 0.28 1.21 0.76 32.12 67,000 7,000 30,000 61,000 2,567,000
(1) Various domains reported at Zn equivalent cut-off of
0.6%
(2) Gold domain reported at 0.5 g/t Au
(3) Zn equivalent was calculated using conversion factors of
0.65 for lead, 2.64 for copper, 1.64 for gold and 0.02 for silver
and recoveries of 90% for all metals. Metal prices were $ 3566/t
for zinc, $ 1822/oz for gold, $ 2326/t for lead, $ 4/lb. for copper
and $ 23.1/oz for silver. The applied formula was Zn
Eq=Zn+(0.65Pb)+(2.64Cu)+(1.64Au)+(0.02Ag). All metals included in
the metal equivalent equation have a reasonable potential to be
recovered and sold.
Shanta Gold Limited
Eric Zurrin (CEO) +44 (0) 14 8173 2153
Luke Leslie (CFO)
Nominated Adviser and Joint Broker
Liberum Capital Limited
Scott Mathieson / Ed Thomas / Nikhil Varghese +44 (0) 20 3100 2000
Joint Broker
Tamesis Partners LLP
Charlie Bendon / Richard Greenfield +44 (0) 20 3882 2868
Public Relations
FTI Consulting
Sara Powell / Nick Hennis / Jourdan Webb +44 (0) 20 3727 1426
About Shanta Gold
Shanta Gold is an East Africa-focused responsible gold producer,
developer and explorer. The company has an established operational
track record, with defined ore resources on the New Luika and
Singida projects in Tanzania, with reserves of 645 koz grading 3.04
g/t, and exploration licences covering approximately 900 km(2) in
the country. Alongside New Luika and Singida, Shanta also owns the
high-grade West Kenya Project in Kenya and licences with resources
of 1.6 million ounces including 378 koz Indicated grading 11.70
g/t. With a strong balance sheet, a growing diversified portfolio
and a maiden dividend paid in 2021, Shanta offers a resilient
investment opportunity for the near and long-term. Shanta is quoted
on London's AIM market (AIM: SHG) and has approximately 1,048
million shares in issue.
Competent Person Statement
The Mineral Resource Model in this report for Isulu, Bushiangala
and Ramula was independently verified and the resource was
estimated by Adiuvare GE (Cath Pitman P. Geo, ON and NL) Reporting
of the resource has been completed in accordance with Canadian NI
43-101 standards,.
Mineral Resource Model in this report at Bumbo is based on
information compiled by Steve Rose, a Competent Person who is a
Fellow of The Australasian Institute of Mining and Metallurgy.
Steve Rose is a full-time consultant with Rose and Associates,
Mining Geology Consultants and is compliant with the JORC 2021
reporting standards.
The technical information contained in this announcement was
reviewed by Yuri Dobrotin, P.Geo. Membership No.0702 (Shanta's
Group Exploration Manager), who is a practicing member of the
Association of Professional Geoscientists of Ontario, Canada
(PGO).
Mr Dobrotin has sufficient experience that is relevant to the
style of mineralization and type of deposit under consideration and
to the activity being undertaken to qualify as a Competent Person
as defined for the purposes of the AIM Guidance Note on Mining and
Oil & Gas Companies dated June 2009, and Canadian National
Instrument 43-101 ("NI 43-101").
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 as amended by The
Market Abuse (Amendment) (EU Exit) Regulations 2019.
Glossary
Glossary of Technical Terms
"Au" chemical symbol for gold
"cut off grade" the lowest grade value that is included in a resource
(COG) 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 that part of a Mineral Resource for which tonnage,
Resource" 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 that part of a Mineral Resource for which tonnage,
Resource" 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 that part of a Mineral Resource for which tonnage,
Resource" 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)
"Reserve" the economically mineable part of a Measured and/or
Indicated Mineral Resource
"t" tonne (= 1 million grammes)
APPIX 1 - ISULU AND BUSHIANGALA
Section 1: Sampling Techniques and Data
Sampling
techniques * Nature and quality of sampling (eg cut channels, * Drill core (half) sampled and assayed at 1m with max.
random chips, or specific specialised industry 1.5m and min. 0.5m intervals based on visually
standard measurement tools appropriate to the observed geology and mineralisation.
minerals under investigation, such as down hole gamma
sondes, or handheld XRF instruments, etc). These
examples should not be taken as limiting the broad * Reverse circulation (RC) samples of 1 m drill length
meaning of sampling. taken at cyclone and riffle split to achieve a
representative sub-sample of approximately 2-3kg
analysis.
* Include reference to measures taken to ensure sample
representivity and the appropriate calibration of any
measurement tools or systems used. * Core and RC samples are processed using industry
standard practices of drying, crushing, splitting and
* Aspects of the determination of mineralisation that
are Material to the Public Report. Pulverization,
then
50g
* In cases where 'industry standard' work has been done fire
this would be relatively simple (eg 'reverse assayed
circulation drilling was used to obtain 1 m samples with
from which 3 kg was pulverised to produce a 30 g AAS
charge for fire assay'). In other cases more finish
explanation may be required, such as where there is for
coarse gold that has inherent sampling problems. gold
Unusual commodities or mineralisation types (eg at
submarine nodules) may warrant disclosure of detailed the
information. SGS
Mwanza
(Tanzania)
and
SGS
Johannesburg
(South
Africa).
Drilling
techniques * Drill type (eg core, reverse circulation, open-hole * Diamond core drilling; All holes are collared using
hammer, rotary air blast, auger, Bangka, sonic, etc)
and details (eg core diameter, triple or standard
tube, depth of diamond tails, face-sampling bit or HQ
other type, whether core is oriented and if so, by and
what method, etc). lately
triple
tube
is
used
to
maximise
core
recovery
in
the
weathered
zone,
drill
hole
diameter
is
usually
reduced
to
NQ
when
the
hole
enters
fresh
rock.
NQ
core
routinely
oriented
by
Reflex
core
orientation
tools.
* Reverse circulation (RC) using a 5.5 inch face
sampling hammer
Drill
sample * Method of recording and assessing core and chip * Core recovery is recorded as a measure of the drill
recovery sample recoveries and results assessed. run against the actual core in tray, and stored in an
acQuire
* Measures taken to maximise sample recovery and ensure
representative nature of the samples. software
database.
Triple
* Whether a relationship exists between sample recovery tube
and grade and whether sample bias may have occurred is
due to preferential loss/gain of fine/coarse used
material. to
maximise
core
recovery
in
the
weathered
zone.
The
average
core
recovery
equates
to
approximately
97%.
* RC drill chip samples of 1m were weighted and weight
recorded to determine weight was within a
satisfactory range.
Logging
* Whether core and chip samples have been geologically * The geologist logs the diamond drill core for
and geotechnically logged to a level of detail to lithology, alteration, structure, mineralisation and
support appropriate Mineral Resource estimation, geotechnical parameters. All core is logged and
mining studies and metallurgical studies. photographed after marking up metre intervals and
prior to cutting and sampling. Logging data are
entered into the acQuire database via a Panasonic
* Whether logging is qualitative or quantitative in Toughbook laptop computer on site.
nature. Core (or costean, channel, etc) photography.
* RC drill chips were logged for lithology, alteration
* The total length and percentage of the relevant and mineralization type and a small sample kept from
intersections logged. each metre in plastic chip trays as a logging record.
* All of diamond drill and RC holes are geologically
logged in entirety.
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * Core samples are half core and sawn. Split line in
and half or all core taken. consistent orientation with respect to orientation
sample marks.
preparation
* If non-core, whether riffled, tube sampled, rotary
split, etc and whether sampled wet or dry. * Dry RC samples are riffled and sub-sampled, while wet
are tube sampled.
* For all sample types, the nature, quality and
appropriateness of the sample preparation technique. * Sample preparation (drying, crushing, splitting and
pulverising) is carried out by SGS Mwanza and SGS
Jo'burg using industry standard protocols:
* Quality control procedures adopted for all
sub-sampling stages to maximise representivity of
samples. o
Kiln
dried
* Measures taken to ensure that the sampling is at
representative of the in situ material collected, 95
including for instance results for field deg
duplicate/second-half sampling. C.
o
Entire
* Whether sample sizes are appropriate to the grain sample
size of the material being sampled. crushed
to
sub
2mm
to
minimize
bias.
o
Riffle
split
800g
to
1kg
sub-sample.
o
Sub-sample
pulverised
to
90%
passing
75um,
monitored
by
sieving.
o
Aliquot
selection
from
pulp
packet.
* Aggregated half core; Entire 2-3kg sample pulverized
at laboratory prior to fire assay in order to
minimize bias.
* Drilling planned orthogonal to the strike of
structures / lithologies in order to maximize
representativity.
* Quality Control (QC) samples are inserted at a rate
of 1 in 20. All standards used are Certified
Reference Materials (CRM). The insertion of QC (CRM,
blanks and duplicates) is under the control of the
geologist after logging.
* The sampling protocols are adequate to ensure
representativity of orogenic, shear-zone-hosted
quartz-carbonate vein subtype mineralisation.
Quality
of * The nature, quality and appropriateness of the * All diamond core and RC samples are assayed for gold
assay assaying and laboratory procedures used and whether by 50g Fire Assay with AAS finish.
data the technique is considered partial or total.
and
laboratory * Core and chip samples were shipped for preparation
tests * For geophysical tools, spectrometers, handheld XRF and analysis at SGS Mwanza and SGS Johannesburg SA
instruments, etc, the parameters used in determining (between April and Oct 2017). The documentation
the analysis including instrument make and model, regarding sample analyses is well documented.
reading times, calibrations factors applied and their
derivation, etc.
* Given the occurrence of coarse gold, Screen Fire
Assays (SFA) or Gravimetric checks are routinely
* Nature of quality control procedures adopted (eg undertaken.
standards, blanks, duplicates, external laboratory
checks) and whether acceptable levels of accuracy (ie
lack of bias) and precision have been established. * The QA/QC with CRMs, blanks, quartz flush checks and
grind checks routinely monitored. The coarse
duplicates from crush residue, and pulp duplicates
from pulp residues were regularly monitored to test
the quality of sub sampling stages. Blank and CRM
results are reviewed on receiving assays and any
failure triggers investigations. Regular
communication was had with analytical Laboratories.
* Umpire analyses were undertaken at ALS Johannesburg
Laboratories for approximately 10% of samples
selected from the total. Results show a reasonable
correlation with the original samples.
* The QAQC procedures and results show acceptable
levels of accuracy and precision, hence the sample
data was used for the Mineral Resource Estimate.
Verification
of * The verification of significant intersections by * There are strong visual indicators at West Kenya
sampling either independent or alternative company personnel. Project for high grade mineralisation observed in
and drill core and significant intersections are visually
assaying validated against drill core, check calculated by
* The use of twinned holes. alternative company personnel.
* Documentation of primary data, data entry procedures, * To date no holes have been twinned.
data verification, data storage (physical and
electronic) protocols.
* All assay data is stored in the acQuire database in
an as received basis with no adjustment made to the
* Discuss any adjustment to assay data. returned data.
Location
of * Accuracy and quality of surveys used to locate drill * Drill collars have been surveyed in by differential
data holes (collar and down-hole surveys), trenches, mine GPS (Leica GNSS receivers) by a registered survey
points workings and other locations used in Mineral Resource contractor except for holes after LCD0323 that are
estimation. recent or in progress holes that are estimates by
handheld GPS only.
* Specification of the grid system used.
* Down hole surveys are recorded at 12m intervals by
using a Reflex digital downhole survey camera tool,
* Quality and adequacy of topographic control. holes drilled between 2016 and 2017 were gyroscope
surveyed.
* Drillholes surveyed in UTM Coordinates System Arc
1960.
* Surface topography in the West Kenya Project is based
on a combination of DGPS surveyed ground pick-ups and
DEM data from air surveys. DEM data is levelled by
ground surveyed points.
Data
spacing * Data spacing for reporting of Exploration Results. * Drillhole spacing was generally at 20-30m at
and Bushiangala and 30 to 50m at Isulu deposits.
distribution
* Whether the data spacing and distribution is
sufficient to establish the degree of geological and * The data spacing is sufficient to establish the
grade continuity appropriate for the Mineral Resource degree of geological and grade continuity appropriate
and Ore Reserve estimation procedure(s) and for Indicated Mineral Resource classification .
classifications applied.
* All samples were composited to 1m length, with a
* Whether sample compositing has been applied. minimum allowable length of 0.5m.
Orientation
of * Whether the orientation of sampling achieves unbiased * Drill holes are designed to intersect known
data sampling of possible structures and the extent to mineralised features in a nominally perpendicular
in which this is known, considering the deposit type. orientation as much as is practicable given the
relation availability of drilling platforms. All drill core is
to oriented to assist with interpretation of
geological * If the relationship between the drilling orientation mineralisation and structure.
structure and the orientation of key mineralised structures is
considered to have introduced a sampling bias, this
should be assessed and reported if material. * There does not appear to be any bias between drilling
orientation and assay results.
Sample
security * The measures taken to ensure sample security. * Samples are transported from drill site to the core
shed by company personnel. On completion of cutting
the core, the samples are dispatched by hired truck
to the SGS Laboratory in Mwanza, Tanzania or by
courier to SGS in South Africa Sample dispatches are
reconciled against Laboratory samples received and
discrepancies reconciled by geology staff.
Audits
or * The results of any audits or reviews of sampling * No audits or reviews of sampling techniques and data
reviews techniques and data. have been performed.
============= ============================================================ =======================================================================
Section 2: Reporting of Exploration Results
Mineral
tenement * Type, reference name/number, location and ownership * The Western Kenya Project area is located in the
and including agreements or material issues with third County of Kakamega in western Kenya. The Isulu and
land parties such as joint ventures, partnerships, Bushiangala prospects lie within the Liranda Corridor
tenure overriding royalties, native title interests, approximately 48 km north northwest of Kisumu City
status historical sites, wilderness or national park and (Kenya's third largest City) and 30 km southwest of
environmental settings. Kakamega town.
* The security of the tenure held at the time of * Isulu and Bushiangala deposits are situated within
reporting along with any known impediments to PL/2019/0225, granted 1(st) Aug 2019 and covering
obtaining a licence to operate in the area. 314.57 sq km. is wholly owned by Shanta Gold Kenya
Ltd.
* There are no material issues affecting the tenements.
Exploration
done * Acknowledgment and appraisal of exploration by other * Gold prospecting and small-scale mining commenced in
by parties. the area by 1920s, as part of the Kakamega Gold Rush.
other The focus was on eluvial and alluvial gold and narrow
parties high-grade veins. Most of this activity ceased in the
1950s. Between 1982-2000, the Bureau de Recherches
Géologiques et Minières (BRGM) carried out
gold and base metals exploration.
In
2003,
AfriOre
Ltd
took
up
exploration
licences,
which
included
the
Liranda
Corridor.
Their
exploration
focused
on
investigating
known
gold
occurrences
rather
than
following
a
grassroots
approach.
In
2007
Lonmin
Plc
took
over
AfriOre
Ltd,
but
exploration
work
was
restricted
to
regional
soil
surveys
in
areas
outside
the
Liranda
Corridor
area.
Aviva
Mining
Ltd
(Aviva)
entered
into
a
Joint
Venture
agreement
with
AfriOre
in
2010.
Aviva
collected
and
collated
all
existing
data
into
a
single
data
set.
They
acquired
regional
airborne
magnetics
and
radiometrics
and
combined
them
with
existing
BRGM
data
to
create
a
seamless
geophysical
dataset.
Regional
mapping
and
prospect
scale
mapping
was
done
and
used
together
with
historical
data
to
reinterpret
the
geology.
Extension
and
infill
of
existing
soil
grids
was
completed
followed
up
by
shallow
diamond
and
RC
drilling.
In
late
2012
African
Barrick
Gold
(now
Acacia
Mining
Ltd)
purchased
Aviva
Mining
Ltd
and
commenced
exploration
activities
and
declared
a
maiden
resource
at
Isulu
and
Bushiangala
in
2017.
Shanta
Gold
took
over
the
project
in
August
2020.
Geology The
* Deposit type, geological setting and style of Liranda
mineralisation. Corridor
is
located
on
the
eastern
most
margin
of
the
Busia-Kakamega
Belt.
Here
rocks
form
a
broad
synclinal
structure
intruded
in
the
centre
by
granitoids
and
dioritoids,
informally
termed
the
Kakamega
Dome.
The
Liranda
Corridor
is
situated
on
the
eastern
limb
of
this
synclinal
structure
within
a
12
km
structural
zone
known
informally
as
the
Liranda
Corridor
.
Lithologies
of
the
Isulu
and
Bushiangala
prospects
include
sediments,
iron-rich
basalts,
ultramafic
volcanic
rocks,
gabbros,
dolerites
and
small
felsic
intrusions.
The
mafic
volcanic
unit
also
includes
thin
layers
of
sulphidic
carbonaceous
interflow
mudstone.
The
Isulu
and
Bushiangala
prospects
mineralisation
are
classified
as
orogenic,
shear-zone-hosted
quartz-carbonate
vein
subtype.
Mineralisation
of
this
sub-type
consists
of
quartz-carbonate
veins
and
veinlet
arrays
associated
with
Mg-Fe
carbonate
alteration
and
sulphidation,
which
are
developed
within
shear
zones
and
their
splays,
within
competent
rock
units.
Mineralisation
is
concentrated
in
zones
of
enhanced
fluid
flow,
such
as
jogs
or
changes
in
strike
along
the
larger-scale
fault
zones.
Drill
hole * A summary of all information material to the * No exploration results are reported in this release.
Information understanding of the exploration results including a
tabulation of the following information for all
Material drill holes: * The treatment of drill data has been articulated in
Section 1.
o
easting
and
northing
of
the
drill
hole
collar
o
elevation
or
RL
(Reduced
Level
-
elevation
above
sea
level
in
metres)
of
the
drill
hole
collar
o
dip
and
azimuth
of
the
hole
o
down
hole
length
and
interception
depth
o
hole
length.
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
Data
aggregation * In reporting Exploration Results, weighting averaging * The assay high grades used for this estimate were cut
methods techniques, maximum and/or minimum grade truncations to 80 g/t for the mineralised veins and 3 g/t for the
(eg cutting of high grades) and cut-off grades are background mineralization at Isulu and 55 g/t for the
usually Material and should be stated. mineralised veins and 2.5 g/t for the background
mineralization at Isulu
* Where aggregate intercepts incorporate short lengths
of high grade results and longer lengths of low grade * Cut-off grades were applied after compositing of the
results, the procedure used for such aggregation raw assay data into 1m lengths.
should be stated and some typical examples of such
aggregations should be shown in detail.
* Blank intervals contained within the mineralisation
were treated as zero. Due to selective sampling of
* The assumptions used for any reporting of metal the core, blank intervals lying outside of the veins
equivalent values should be clearly stated. had a grade of 0.001 g/t Au applied to them.
Relationship
between * These relationships are particularly important in the * The holes drilled varied between -44 and -80 degrees
mineralisation reporting of Exploration Results. from surface, with the mineralisation being
widths sub-vertical. It is estimated that the true widths of
and the mineralized zones are approximately 60-70% of the
intercept * If the geometry of the mineralisation with respect to widths intersected in the drill holes.
lengths the drill hole angle is known, its nature should be
reported.
* If it is not known and only the down hole lengths are
reported, there should be a clear statement to this
effect (eg 'down hole length, true width not known').
Diagrams
* Appropriate maps and sections (with scales) and * No exploration results are reported in this release.
tabulations of intercepts should be included for any
significant discovery being reported These should
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional
views.
Balanced
reporting * Where comprehensive reporting of all Exploration * No exploration results are reported in this release.
Results is not practicable, representative reporting
of both low and high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
Other
substantive * Other exploration data, if meaningful and material, * No exploration results are reported in this release.
exploration should be reported including (but not limited to):
data geological observations; geophysical survey results;
geochemical survey results; bulk samples - size and
method of treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
Further
work * The nature and scale of planned further work (eg * Approximately 95 holes for 40,000m planned infill
tests for lateral extensions or depth extensions or drilling for conversion to mineable resources and
large-scale step-out drilling). expansion drilling across the Liranda Region has been
budgeted for in 2022.
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
=============== =============================================================== =======================================================================
Section 3: Estimation and Reporting of Mineral Resources
Database
integrity * Measures taken to ensure that data has not been * Data are stored in an SQL acQuire database. Assay and
corrupted by, for example, transcription or keying geological data are electronically loaded into
errors, between its initial collection and its use acQuire and a validation process run. Regular reviews
for Mineral Resource estimation purposes. of data quality are conducted by site and management
teams prior to resource estimation.
* Data validation procedures used.
Site
visits * Comment on any site visits undertaken by the * Site visits to the West Kenya Project were undertaken
Competent Person and the outcome of those visits. by the independent consultant Catherine Pitman of
Adiuvare GE (Competent Person for the Mineral
Resource estimate) in 2016, 2018 and 2019.
* If no site visits have been undertaken indicate why
this is the case.
Geological
interpretation * Confidence in (or conversely, the uncertainty of ) * The level of confidence in the interpretations of the
the geological interpretation of the mineral deposit. mineralised zones is reflected by the Mineral
Resource classification.
* Nature of the data used and of any assumptions made.
* Geological data from core and RC drilling provides
the information for the deposits. The main
* The effect, if any, of alternative interpretations on mineralisation
Mineral Resource estimation.
zone
* The use of geology in guiding and controlling Mineral s
Resource estimation. were
defined
by
* The factors affecting continuity both of grade and the
geology. presence
of
gold
values
at
cut-off
of
0.5
g/t
Au
,
as
well
as
the
presence
of
other
indicators
such
as
shear
intensity,
brecciation,
sulphide
content
and
alteration.
The
interpretations
were
completed
along
sections
typically
at
spacings
of
2
0m
at
Bushiangala
and
40m
at
Isulu
.
The
i
nterpretations
were
triangulated
to
form
3D
solids
(mineralised
zone
s)
using
Leapfrog
software
.
* There are no alternative detailed interpretations of
geology
using
the
current
data.
* The geology has guided the resource estimation,
particularly the lithological and structural control.
* Grade and geological continuity have been established
by the existing 3D data. The continuity is well
understood at Isulu, especially in relation to
structural effects, while at Bushiangala, part of the
deposit requires more data to be better understood.
Dimensions
* The extent and variability of the Mineral Resource * The main zone s of mineralisation at Isulu extend up
expressed as length (along strike or otherwise), plan to 240m along strike. The resource estimate (Phase 1)
width, and depth below surface to the upper and lower generally includes mineralisation down to 25 0m
limits of the Mineral Resource. depth.
* At Bushiangala the mineralisation extends over 27 0m
along strike in the NNW-SSE trend and 150m along
strike in the E-W trend. T he resource estimate
extends to a maximum depth of 25 0m.
* Both deposits remain open along strike and at depth.
Estimation Grade
and * The nature and appropriateness of the estimation estimation
modelling technique(s) applied and key assumptions, including for
techniques treatment of extreme grade values, domaining, each
interpolation parameters and maximum distance of of
extrapolation from data points. If a computer the
assisted estimation method was chosen include a two
description of computer software and parameters used. prospects
carried
out
* The availability of check estimates, previous using
estimates and/or mine production records and whether Micromine
the Mineral Resource estimate takes appropriate software
account of such data. to
generate
a
* The assumptions made regarding recovery of block
by-products. model;
with
the
* Estimation of deleterious elements or other non-grade individual
variables of economic significance (eg sulphur for zones
acid mine drainage characterisation). separated
out
for
* In the case of block model interpolation, the block grade
size in relation to the average sample spacing and interpolation
the search employed. within
each
area.
* Any assumptions behind modelling of selective mining For
units. each
prospect,
the
* Any assumptions about correlation between variables. following
process
was
* Description of how the geological interpretation was followed.
used to control the resource estimates. * All the individual mineralisation zone wireframe
solids were verified using Micromine(R) software
* Discussion of basis for using or not using grade
cutting or capping. * Drill data was de-surveyed and assessed for overlaps
and outlier values
* The process of validation, the checking process used,
the comparison of model data to drill hole data, and * Individual assay samples were selected from within
use of reconciliation data if available. each zone
* The selected samples were composited to 1m intervals
* Statistical analysis was carried out to define
capping levels
* Gold values were adjusted for true absent or zero
values
* The block model used dimensions of:
o
X
=
10
m
o
Y
=
10
m
o
Z
=
10
m
* Each individual zone was filled with blocks using
sub-cells down to 0.5 m in the east and north
directions and 1 m in the vertical direction
* Block grades and density values were estimated into
each parent block within individual zones
* Blocks falling within the modelled intrusives at
Isulu had their grades set to zero
* A default specific gravity using the mean value of
2.75 for Isulu and Bushiangala was used for fresh
rock blocks that may not have been estimated.
* At Bushiangala a default specific gravity value of
1.9 was applied to oxide rock due to a lack of SG
data, with the same applied as a default for Isulu
All
samples
were
composited
to
1m
length,
with
a
minimum
allowable
length
of
0.5m.
Capping
of
the
composites
was
carried
out
by
zone
for
both
Isulu
and
Bushiangala.
The
capping
levels
were
assigned
using
log
probability
plots
for
the
grade.
The
Table
below
shows
the
value
applied
to
each
zone.
Prospect Number Capping
of samples value
(Au g/t)
Isulu Veins 552 80
------------ ----------
Isulu Background 106,061 3
------------ ----------
Bushiangala
Veins 850 55
------------ ----------
Bushiangala
Background 32,198 2.5
------------ ----------
Estimation
at
Isulu
and
Bushiangala
was
carried
out
using
Inverse
Distance
to
the
power
of
2.
For
Isulu
the
search
ellipses
were
orientated
with
the
primary
axis
along
an
azimuth
of
060
with
a
plunge
of
700
from
horizontal
for
the
mineralisation.
The
search
ellipse
radii
were
X=100
m;
Y=40
m
and
Z=80
m.
The
search
range
factors
were
0.5
for
the
first
pass;
1
for
the
second
pass
and
2
for
the
third
pass.
Each
vein
was
estimated
independently.
For
Bushiangala
the
primary
search
axis
was
orientated
along
an
azimuth
of
090,
with
a
plunge
of
700
from
horizontal
for
the
mineralisation.
The
search
ellipse
radii
were
X=100
m;
Y=20
m
and
Z=75
m.
The
search
range
factors
were
0.5
for
the
first
pass;
1
for
the
second
pass
and
2
for
the
third
pass.
Each
vein
was
estimated
independently..
Resource
classification
was
assigned
according
to
the
continuity
of
the
mineralization,
known
geological
controls
and
drill
spacing.
In
order
to
categorise
the
blocks
into
Indicated,
Inferred
and
unclassified
the
following
steps
were
completed:
* All blocks outside of the modelled wireframes for
both deposits were coded as unclassified;
* Blocks that were estimated with an average distance
of less than 40 m to the samples were coded as
Indicated;
* The models were visually inspected and both outlier
and inlier values were adjusted so that the Indicated
blocks were large continuous areas;
* All the veins were statistically analysed for the
percentage by tonnes that were classified and any
vein which contained greater than 80% of one category
was immediately classified as completely that
category.
Each
zone
was
divided
into
Oxide
and
Fresh
rock
using
the
Top
of
Fresh
Rock
surface..
Moisture
* Whether the tonnages are estimated on a dry basis or * Tonnages are reported on a dry basis.
with natural moisture, and the method of
determination of the moisture content.
Cut-off
parameters * The basis of the adopted cut-off grade(s) or quality * The Mineral Resource reported cut-off grades of 1 g/t
parameters applied. Au for the oxidised rock and 3 g/t Au for the fresh
rock to r eflect current commodity prices geometry of
mineralised zones and comparison with the analogous
operations.
* Additional cut-off values have been included in order
to assess the sensitivity of output ounces to change
in the cut-off value .
Mining
factors * Assumptions made regarding possible mining methods, * Based on the currently identified mineralization,
or minimum mining dimensions and internal (or, if probable extraction is by various underground mining.
assumptions applicable, external) mining dilution. It is always
necessary as part of the process of determining
reasonable prospects for eventual economic extraction * Mining factors such as dilution a nd ore loss have
to consider potential mining methods, but the not been applied.
assumptions made regarding mining methods and
parameters when estimating Mineral Resources may not
always be rigorous. Where this is the case, this
should be reported with an explanation of the basis
of the mining assumptions made.
Metallurgical
factors * The basis for assumptions or predictions regarding * No metallurgical assumptions have been built into the
or metallurgical amenability. It is always necessary as resource models .
assumptions part of the process of determining reasonable
prospects for eventual economic extraction to
consider potential metallurgical methods, but the
assumptions regarding metallurgical treatment
processes and parameters made when reporting Mineral
Resources may not always be rigorous. Where this is
the case, this should be reported with an explanation
of the basis of the metallurgical assumptions made.
Environmental
factors * Assumptions made regarding possible waste and process * The Isulu and Bushiangala deposits are at an early
or residue disposal options. It is always necessary as stage of evaluation a nd environmental studies have
assumptions part of the process of determining reasonable not yet been undertaken.
prospects for eventual economic extraction to
consider the potential environmental impacts of the
mining and processing operation. While at this stage
the determination of potential environmental impacts,
particularly for a greenfields project, may not
always be well advanced, the status of early
consideration of these potential environmental
impacts should be reported. Where these aspects have
not been considered this should be reported with an
explanation of the environmental assumptions made.
Bulk
density * Whether assumed or determined. If assumed, the basis * Specific gravity sampling has continued through the
for the assumptions. If determined, the method used, life of the project, the measurements are carried out
whether wet or dry, the frequency of the measurements in accordance with site standard procedures for
, Specific Gravity. Intervals for bulk density
the nature, size and representativeness of the determination are selected according to lithology/
samples. alteration/mineralization type to best represent
certain intervals as defined by the geologist. The
measurements are performed on site by geologists or
* The bulk density for bulk material must have been geological assistants as part of the logging process.
measured by methods that adequately account for void Measurements are generally after every 20 metres or a
spaces (vugs, porosity, etc), moisture and change in lithology within the 20 metres and 1-metres
differences between rock and alteration zones within interval for mineralized zones.
the deposit.
* Discuss assumptions for bulk density estimates used
in the evaluation process of the different materials.
Classification
* The basis for the classification of the Mineral * Classification for the Isulu and Bushiangala Mineral
Resources into varying confidence categories. Resources is b ased upon the continuity of geology,
mineralisation and grade, using d rillhole data
spacing and quality and estimation statistics .
* Whether appropriate account has been taken of all
relevant factors (ie relative confidence in
tonnage/grade estimations, reliability of input data,
confidence in continuity of geology and metal values, * The Mineral Resources are classified as Indicated and
quality, quantity and distribution of the data). Inferred.
* Whether the result appropriately reflects the
Competent Person's view of the deposit. * The classification considers all available data and
quality of the estimate a nd reflects the Competent
Person's view of the deposit.
Audits
or * The results of any audits or reviews of Mineral * The resource estimate (Inferred Category) has been
reviews Resource estimates. reviewed by the Shanta staff Tanzanian Operations.
Discussion
of * Where appropriate a statement of the relative * The assigned classification of Indicated and Inferred
relative accuracy and confidence level in the Mineral Resource reflects the Competent Person's a ssessment of the
accuracy/ estimate using an approach or procedure deemed accuracy and confidence levels in the global Mineral
confidence appropriate by the Competent Person. For example, the Resource estimate .
application of statistical or geostatistical
procedures to quantify the relative accuracy of the
resource within stated confidence limits, or, if such
an approach is not deemed appropriate, a qualitative
discussion of the factors that could affect the
relative accuracy and confidence of the estimate.
* The statement should specify whether it relates to
global or local estimates, and, if local, state the
relevant tonnages, which should be relevant to
technical and economic evaluation. Documentation
should include assumptions made and the procedures
used.
* These statements of relative accuracy and confidence
of the estimate should be compared with production
data, where available.
=============== ============================================================ =======================================================================
APPIX 2 - BUMBO
Section 1: Sampling Techniques and Data
Criteria JORC Code explanation Commentary
--------------------------------------- ---------------------------------------
Sampling Nature and quality of sampling Diamond drilling with HQ core
techniques (e.g. cut channels, random size, which provides a high-quality
chips, or specific specialised sample, and was used for geological
industry standard measurement interpretation and grade estimation,
tools appropriate to the minerals with minor RC drilling.
under investigation, such as
down hole gamma sondes, or
handheld XRF instruments, etc.).
These examples should not be
taken as limiting the broad
meaning of sampling.
----------------- --------------------------------------- ---------------------------------------
Include reference to measures All drillholes were drilled
taken to ensure sample representivity close to perpendicular to the
and the appropriate calibration vein boundaries. Holes were
of any measurement tools or logged and comments made about
systems used. core recovery.
----------------- --------------------------------------- ---------------------------------------
Aspects of the determination Diamond drilling with HQ core
of mineralisation that are size was used predominantly.
Material to the Public Report. All holes were logged geologically.
In cases where 'industry standard' Sampling was by cutting half
work has been done this would core, with breaks at geological
be relatively simple (e.g. boundaries. The most common
'reverse circulation drilling sample length was 0.5 and 1
was used to obtain 1 m samples m. Half core samples were crushed
from which 3 kg was pulverised and pulverized and then assayed
to produce a 30 g charge for by a full suite of elements.
fire assay'). In other cases, RC drilling was carried out
more explanation may be required, for 5 holes, with samples collected
such as where there is coarse every 1 m. All holes were logged
gold that has inherent sampling geologically.
problems. Unusual commodities
or mineralisation types (e.g.
submarine nodules) may warrant
disclosure of detailed information.
----------------- --------------------------------------- ---------------------------------------
Drilling Drill type (e.g. core, reverse HQ diamond core drilling using
techniques circulation, open-hole hammer, wireline with a standard tube.
rotary air blast, auger, Bangka, The older core drilled by BRGM
sonic, etc.) and details (e.g. was not orientate; holes drilled
core diameter, triple or standard by AVIVA were orientated.
tube, depth of diamond tails, RC drilling was 51/4inch size
face-sampling bit or other with face hammer.
type, whether core is oriented
and if so, by what method,
etc.).
----------------- --------------------------------------- ---------------------------------------
Drill sample Method of recording and assessing Core/sample recoveries were
recovery core and chip sample recoveries not recorded specifically in
and results assessed. the drillhole database, however
(Optiro Pty Ltd, 2012) state
that AVIVA recovery was on
average 85%, and close to 100%
for the BRGM holes
----------------- --------------------------------------- ---------------------------------------
Measures taken to maximise Core recovery averages better
sample recovery and ensure than 85%, which shows that
representative nature of the conventional good diamond drilling
samples. practices were sufficient to
ensure satisfactory recovery.
----------------- --------------------------------------- ---------------------------------------
Relationship between sample No analysis of recovery against
recovery and grade/sample bias. grade has been carried out,
since recovery data is not
recorded in the drillhole database.
----------------- --------------------------------------- ---------------------------------------
Logging Whether core and chip samples All core and samples are geologically
have been geologically and logged for lithology, alteration
geotechnically logged to a and structure. The standard
level of detail to support is sufficient to support Mineral
appropriate Mineral Resource Resource estimation, mining
estimation, mining studies studies and metallurgical studies.
and metallurgical studies.
----------------- --------------------------------------- ---------------------------------------
Whether logging is qualitative Logging was qualitative; however,
or quantitative in nature. the geologists also record
Core (or costean, channel, visual quantitative mineral
etc) photography. percentage ranges for the sulphide
minerals present.
Whilst it was reported that
core is photographed, photos
were not part of the dataset
used for this MRE.
----------------- --------------------------------------- ---------------------------------------
The total length and percentage All holes and intersections
of the relevant intersections have been logged.
logged.
----------------- --------------------------------------- ---------------------------------------
Subsampling If core, whether cut or sawn Core samples were taken from
techniques and whether quarter, half or half core, cut using a diamond
and sample all core taken. core saw. The remainder of
preparation the core was retained in core
trays tagged with a hole number
and metre mark. They are stored
in a shed on site.
----------------- --------------------------------------- ---------------------------------------
If non-core, whether riffled, RC samples were riffle split
tube sampled, rotary split, to give a sample of about 3kg.
etc and whether sampled wet RC drilling had sufficient
or dry. air to keep the sample dry.
----------------- --------------------------------------- ---------------------------------------
For all sample types, the nature, Half core samples are sent
quality and appropriateness to the assay laboratory for
of the sample preparation technique sample preparation which comprises
crushing, splitting and then
pulverizing to give a pulp.
RC samples were completely
pulverised. The assay method
is not described, but is a
full suite element method.
The range of minimum values
was reviewed and showed that
the methods were adequate for
MRE.
--------------------------------------- ---------------------------------------
Quality control procedures Cut lines are marked on diamond
adopted for all subsampling drill core to ensure that the
stages to maximise representivity core to minimise bias when
of samples. cutting.
When the half core has been
crushed, the crushed sample
is split using a riffle splitter
down to 1kg splits. The 1kg
split is then totally pulverized.
--------------------------------------- ---------------------------------------
Measures taken to ensure that Cut lines are marked on diamond
the sampling is representative drill core to ensure that the
of the in situ material collected, core to minimise bias when
including for instance results cutting.
for field duplicate/second-half (Optiro Pty Ltd, 2012) state
sampling. that QAQC is adequate to support
MRE.
--------------------------------------- ---------------------------------------
Whether sample sizes are appropriate The sample sizes were appropriate
to the grain size of the material for the type, style and consistency
being sampled. of mineralisation encountered
during this phase of exploration.
----------------- --------------------------------------- ---------------------------------------
Quality The nature, quality and appropriateness The assay method and laboratory
of assay of the assaying and laboratory procedures were appropriate
data and procedures used and whether for this style of mineralisation.
laboratory the technique is considered The fire assay technique was
tests partial or total. designed to measure total gold
in the sample.
----------------- --------------------------------------- ---------------------------------------
For geophysical tools, spectrometers, No geophysical tools, spectrometers
handheld XRF instruments, etc, were used.
the parameters used in determining
the analysis including instrument
make and model, reading times,
calibrations factors applied
and their derivation, etc.
----------------- --------------------------------------- ---------------------------------------
Nature of quality control procedures No QAQC data was available
adopted and whether acceptable for the BRGM holes. The AVIVA
levels of accuracy (i.e. lack holes had adequate QAQC, and
of bias) and precision have twinned some of the BRGM holes.
been established. (Optiro Pty Ltd, 2012) carried
out a review, and showed that
the QAQC is adequate to support
MRE.
----------------- --------------------------------------- ---------------------------------------
Verification The verification of significant The data is historic.
of sampling intersections by either independent
and assaying or alternative company personnel.
----------------- --------------------------------------- ---------------------------------------
The use of twinned holes. Twinned holes have not been
drilled at this stage. The
prospect is currently drilled
at a relatively wide spacing.
Twinning is recommended as
part of the next stage infill
program.
----------------- --------------------------------------- ---------------------------------------
Documentation of primary data, There is no documentation of
data entry procedures, data data entry procedures. SHG
verification, data storage took over the project in 2020,
(physical and electronic) protocols. and has not carried out any
diamond drilling since then.
All drilling was carried out
by previous explorers.
Original logging was on paper
logs, and then entered into
Excel sheets. The drillhole
database is an Access database.
--------------------------------------- ---------------------------------------
Discuss any adjustment to assay No adjustments have been made
data. to assay data.
----------------- --------------------------------------- ---------------------------------------
Location Accuracy and quality of surveys Drill collars were surveyed
of data used to locate drillholes (collar after completion presumably
points and downhole surveys), trenches, by GPS, but no details are
mine workings and other locations provided in the dataset.
used in Mineral Resource estimation. There is no downhole survey
data for BRGM holes. AVIVA
drillhole have been surveyed
at 15 m intervals using multishot
relative to magnetic north.
----------------- --------------------------------------- ---------------------------------------
Specification of the grid system All coordinates and bearings
used. use the WGS84_UTM36N grid.
----------------- --------------------------------------- ---------------------------------------
Quality and adequacy of topographic No topographic information
control. was provided. SHG should carry
out a survey to generate an
accurate DEM.
----------------- --------------------------------------- ---------------------------------------
Data spacing Data spacing for reporting The data spacing is irregular,
and distribution of Exploration Results. with a clustering in the main
part of the deposit, but average
spacings are approximately
100 m.
----------------- --------------------------------------- ---------------------------------------
Whether the data spacing and The CP believes that the mineralised
distribution is sufficient domains have sufficient geological
to establish the degree of and grade continuity to support
geological and grade continuity the classification applied
appropriate for the Mineral to the Mineral Resource given
Resource and Ore Reserve estimation the current drill pattern.
procedure(s) and classifications Mineral Resource estimation
applied. procedures are also considered
appropriate give the quantity
of data available and style
of mineralisation under consideration.
----------------- --------------------------------------- ---------------------------------------
Sample compositing. Sample composites have not
been used.
----------------- --------------------------------------- ---------------------------------------
Orientation Whether the orientation of Drilling was designed based
of data sampling achieves unbiased on known geological models,
in relation sampling of possible structures field mapping, and cross-sectional
to geological and the extent to which this interpretation.
structure is known, considering the deposit Drillholes oriented at right
type. angles to strike of deposit,
with dip optimised for drill
capabilities and the dip of
the orebody.
----------------- --------------------------------------- ---------------------------------------
If the relationship between This is not considered to be
the drilling orientation and a material factor because of
the orientation of key mineralised the style of mineralisation.
structures is considered to
have introduced a sampling
bias, this should be assessed
and reported if material.
----------------- --------------------------------------- ---------------------------------------
Sample The measures taken to ensure No information was provided
security sample security. on sample security.
The CP recommends that this
facet is better documented
in future.
----------------- --------------------------------------- ---------------------------------------
Audits The results of any audits or None were considered for this
or reviews reviews of sampling techniques MRE.
and data.
----------------- --------------------------------------- ---------------------------------------
Section 2: Reporting of Exploration Results
Criteria JORC Code explanation Commentary
----------------------------------------------------------- ------------------------------------
Mineral Type, reference name/number, Bumbo lies on SL213 Siaya Licence.
tenement location and ownership including No checks were carried out
and land agreements or material issues to determine its standing.
tenure with third parties such as
status joint ventures, partnerships,
overriding royalties, native
title interests, historical
sites, wilderness or national
park and environmental settings.
----------------- ----------------------------------------------------------- ------------------------------------
The security of the tenure No checks were carried out
held at the time of reporting to determine its standing,
along with any known impediments other than assurance from SHG.
to obtaining a licence to operate
in the area.
----------------- ----------------------------------------------------------- ------------------------------------
Exploration Acknowledgment and appraisal All drilling was carried out
done by of exploration by other parties. prior to SHG taking up the
other parties EL. Initial drilling work was
carried out by BRGM in 1987
through to 1998. A second phase
of drilling was carried out
by Aviva between 2010 and 2012.
----------------- ----------------------------------------------------------- ------------------------------------
Geology Deposit type, geological setting Bumbo is situated within the
and style of mineralisation. Kenyan Ndori Greenstone belt
which forms part of the Tanzanian
Archaean Craton. Bumbo is located
within the Kavirondian sequence
of volcano sedimentary lithologies.
Deposit Mineralisation
Bumbo is a polymetallic deposit
(Zn-Cu, Au-Ag) which occurs
as two sulphide lenses less
than 100 m apart. Each lens
has a strike length of about
250 m and extend to at least
150 m below surface and have
an average width of about 8
m. The lenses dip steeply to
the north.
It is considered a VMS deposit
style.
----------------- ----------------------------------------------------------- ------------------------------------
Drillhole A summary of all information Exploration results are not
information material to the understanding being reported.
of the exploration results
including a tabulation of the
following information for all
Material drillholes:
* easting and northing of the drillhole collar;
* elevation or RL (Reduced Level - elevation above sea
level in metres) of the drillhole collar;
* dip and azimuth of the hole;
* downhole length and interception depth;
* hole length.
----------------- ----------------------------------------------------------- ------------------------------------
If the exclusion of this information Exploration results are not
is justified on the basis that being reported.
the information is not Material
and this exclusion does not
detract from the understanding
of the report, the Competent
Person should clearly explain
why this is the case.
----------------- ----------------------------------------------------------- ------------------------------------
Data aggregation In reporting Exploration Results, Exploration results are not
methods weighting averaging techniques, being reported.
maximum and/or minimum grade
truncations (e.g. cutting of
high grades) and cut-off grades
are usually Material and should
be stated.
----------------- ----------------------------------------------------------- ------------------------------------
Where aggregate intercepts Exploration results are not
incorporate short lengths of being reported.
high grade results and longer
lengths of low grade results,
the procedure used for such
aggregation should be stated
and some typical examples of
such aggregations should be
shown in detail.
----------------- ----------------------------------------------------------- ------------------------------------
The assumptions used for any Exploration results are not
reporting of metal equivalent being reported.
values should be clearly stated.
----------------- ----------------------------------------------------------- ------------------------------------
Relationship These relationships are particularly Exploration results are not
between important in the reporting being reported.
mineralisation of Exploration Results.
widths
and intercept
lengths
----------------- ----------------------------------------------------------- ------------------------------------
If the geometry of the mineralisation Holes were drilled orthogonal
with respect to the drillhole to mineralisation as much as
angle is known, its nature possible; however, the exact
should be reported. relationship between intercept
width and true width cannot
be estimated exactly in all
cases.
----------------- ----------------------------------------------------------- ------------------------------------
If it is not known and only Exploration results are not
the downhole lengths are reported, being reported.
there should be a clear statement
to this effect (e.g. 'downhole
length, true width not known').
----------------- ----------------------------------------------------------- ------------------------------------
Diagrams Appropriate maps and sections Exploration results are not
(with scales) and tabulations being reported.
of intercepts should be included
for any significant discovery
being reported These should
include, but not be limited
to a plan view of drillhole
collar locations and appropriate
sectional views.
----------------- ----------------------------------------------------------- ------------------------------------
Balanced Where comprehensive reporting Exploration results are not
reporting of all Exploration Results being reported.
is not practicable, representative
reporting of both low and high
grades and/or widths should
be practiced to avoid misleading
reporting of Exploration Results.
----------------- ----------------------------------------------------------- ------------------------------------
Other substantive Other exploration data, if No substantive exploration
exploration meaningful and material, should data not already mentioned
data be reported including (but in this table has been used
not limited to): geological in the preparation of this
observations; geophysical survey MRE.
results; geochemical survey
results; bulk samples - size
and method of treatment; metallurgical
test results; bulk density,
groundwater, geotechnical and
rock characteristics; potential
deleterious or contaminating
substances.
----------------- ----------------------------------------------------------- ------------------------------------
Further The nature and scale of planned Further work will be focused
work further work (e.g. tests for on infilling mineralisation
lateral extensions or depth to upgrade to a higher Mineral
extensions or large-scale step-out Resource classification and
drilling). testing for dip extensions
and strike extensions.
----------------- ----------------------------------------------------------- ------------------------------------
Diagrams clearly highlighting Exploration results are not
the areas of possible extensions, being reported.
including the main geological
interpretations and future
drilling areas, provided this
information is not commercially
sensitive.
----------------- ----------------------------------------------------------- ------------------------------------
Section 3: Estimation and Reporting of Mineral Resources
Criteria JORC Code explanation Commentary
------------------------------------ ------------------------------------------------------------
Database Measures taken to ensure Original assay certificates were
integrity that data has not been corrupted not available for this MRE. There
by, for example, transcription is no information about data entry.
or keying errors, between However, this is not considered
its initial collection and material for this MRE.
its use for Mineral Resource
estimation purposes.
--------------- ------------------------------------ ------------------------------------------------------------
Data validation procedures No procedures were available to
used. be reviewed. The data is considered
adequate for this MRE.
--------------- ------------------------------------ ------------------------------------------------------------
Site visits Comment on any site visits Steve Rose is the Competent Person.
undertaken by the Competent No site visit has been carried
Person and the outcome of out at this time, due to the difficulty
those visits. in travelling from Australia to
Kenya because of COVID-19. The
area was reviewed using Google
Earth, and it seems reasonable
to accept the data at face value.
--------------- ------------------------------------ ------------------------------------------------------------
If no site visits have been No site visit has been carried
undertaken indicate why out at this time, due to the difficulty
this is the case. in travelling from Australia to
Kenya because of COVID-19. The
area was reviewed using Google
Earth, and it seems reasonable
to accept the data at face value.
--------------- ------------------------------------ ------------------------------------------------------------
Geological Confidence in (or conversely, There is a reasonable level of
interpretation the uncertainty of) the confidence in the geological interpretation
geological interpretation of the mineralisation that is
of the mineral deposit. traceable over numerous drillholes.
--------------- ------------------------------------ ------------------------------------------------------------
Nature of the data used Drillhole intercept logging, assay
and of any assumptions made. results and detailed geological
logging have formed basis for
the geological interpretation.
--------------- ------------------------------------ ------------------------------------------------------------
The effect, if any, of alternative Geological continuity is implied
interpretations on Mineral between drillholes and conforms
Resource estimation. well to the anticipated geological
model based on the interpretation
of regional and local geology,
and its association with mineralisation.
The data does not readily offer
alternative interpretations. In
places, the precise limits and
geometry cannot be absolutely
defined due to the limitations
of the current drill coverage
and the structural complexity.
Further work is required to better
define the geometry and limits
of the mineralised zones, but
no significant downside changes
to the interpreted mineralised
volume are anticipated.
------------------------------------ ------------------------------------------------------------
The use of geology in guiding The grade and lithological interpretation
and controlling Mineral form the basis for the modelling.
Resource estimation.
------------------------------------ ------------------------------------------------------------
The factors affecting continuity Mineralisation is hosted in massive
both of grade and geology. sulphide and sulphide stringer
zones. The mineralisation is emplaced
into steep east-west structures.
--------------- ------------------------------------ ------------------------------------------------------------
Dimensions The extent and variability The Mineral Resource has a strike
of the Mineral Resource length of 400m, a width of 20
expressed as length (along m and extends from surface to
strike or otherwise), plan 120 m below surface.
width, and depth below surface
to the upper and lower limits
of the Mineral Resource.
--------------- ------------------------------------ ------------------------------------------------------------
Estimation The nature and appropriateness Grade estimation was carried out
and modelling of the estimation technique(s) using the geostatistical method
techniques applied and key assumptions, of ordinary kriging. The methods
including treatment of extreme use estimation parameters defined
grade values, domaining, by variography. The 1 m composite
interpolation parameters top-cut dataset was used for the
and maximum distance of grade interpolation. Estimation
extrapolation from data of the resource was competed using
points. If a computer assisted Micromine. The mineralisation
estimation method was chosen domains, resource category and
include a description of lithology were coded to the block
computer software and parameters model. Density data was applied
used. on the basis of lithology.
--------------- ------------------------------------ ------------------------------------------------------------
The availability of check A check Inverse Distance estimate
estimates, previous estimates was carried out. There is no production
and/or mine production records from Bumbo.
and whether the MRE takes
appropriate account of such
data.
--------------- ------------------------------------ ------------------------------------------------------------
The assumptions made regarding Not considered.
recovery of by-products.
------------------------------------ ------------------------------------------------------------
Estimation of deleterious No potentially deleterious elements
elements or other non-grade have been considered.
variables of economic significance
(e.g. sulphur for acid mine
drainage characterisation).
------------------------------------ ------------------------------------------------------------
In the case of block model A 3D block model was generated
interpolation, the block to enable grade estimation. The
size in relation to the selected block size was based
average sample spacing and on the geometry of the domain
the search employed. interpretation and the data configuration.
A block model was created using
10.0 mE x 10.0 mN x 5.0 mRL parent
blocks. Sub-cells were generated
down to 2 mE x 2 mN x 1 mRL) as
appropriate to honour wireframe
domains and geological interpretations
during model construction.
------------------------------------ ------------------------------------------------------------
Any assumptions behind modelling No selective mining units were
of selective mining units. assumed in this estimate.
------------------------------------ ------------------------------------------------------------
Any assumptions about correlation Gold and silver were shown to
between variables. correlate. Copper, lead and zinc
had weak to moderate correlation.
------------------------------------ ------------------------------------------------------------
Description of how the geological The geological interpretation
interpretation was used was used as a basis for mineralisation
to control the resource modelling. Zones with logged massive
estimates. sulphide were interpreted into
the MS domain. Zones with strong
base metals but no logged massive
sulphides were linked into STR
domain. Zones with gold, but base
metals below 0.5% were linked
to form the GOLD zones.
------------------------------------ ------------------------------------------------------------
Discussion of basis for Top cuts were used to treat the
using or not using grade high-grade outliers of the domains.
cutting or capping. Top cuts were based on review
of the domain histogram and log
probability plot.
------------------------------------ ------------------------------------------------------------
The process of validation, Validation of the block model
the checking process used, consisted of comparison of the
the comparison of model block model volume to the wireframe
data to drillhole data, volume. Grade estimates were validated
and use of reconciliation by statistical comparison with
data if available. the drill data, visual comparison
of grade trends in the model with
the drill data trends. Additionally,
swath plots were generated to
verify block model grades vs drillhole
grades along easting, northing
and elevation slices. QKNA was
carried to optimize block model
parameters.
--------------- ------------------------------------ ------------------------------------------------------------
Moisture Whether the tonnages are Tonnages are estimated on a dry
estimated on a dry basis basis.
or with natural moisture,
and the method of determination
of the moisture content.
--------------- ------------------------------------ ------------------------------------------------------------
Cut-off The basis of the adopted The Mineral Resource has been
parameters cut-off grade(s) or quality reported above a 0.7% ZnEquivalent
parameters applied. cut-off, or above 0.5 g/t Au for
GOLD zones. -- ZnEquivalent was
calculated using conversion factors
of 0.65 for lead, 2.64 for copper,
1.64 for gold and 0.02 for silver
and recoveries of 90% for all
metals. Metal prices were $3566/t
for zinc, $1822/oz for gold, $2326/t
for lead, $4/lb. for copper and
$23.1/oz for silver. The applied
formula was Zn Eq=Zn+(0.65Pb)+(2.64Cu)+(1.64Au)+(0.02Ag).
All metals included in the metal
equivalent equation have a reasonable
potential to be recovered and
sold.
--------------- ------------------------------------ ------------------------------------------------------------
Mining Assumptions made regarding The mineralisation is within 120
factors possible mining methods, m of the surface and is steeply
or assumptions minimum mining dimensions dipping. This suggests the potential
and internal (or, if applicable, for open pit mining.
external) mining dilution.
It is always necessary as
part of the process of determining
reasonable prospects for
eventual economic extraction
to consider potential mining
methods, but the assumptions
made regarding mining methods
and parameters when estimating
Mineral Resources may not
always be rigorous. Where
this is the case, this should
be reported with an explanation
of the basis of the mining
assumptions made.
--------------- ------------------------------------ ------------------------------------------------------------
Metallurgical The basis for assumptions No metallurgical testwork data
factors or predictions regarding was available. Nothing in the
or assumptions metallurgical amenability. geological logs or the assays
It is always necessary as suggests there will be problems
part of the process of determining with recovery using conventional
reasonable prospects for flotation methods.
eventual economic extraction
to consider potential metallurgical
methods, but the assumptions
regarding metallurgical
treatment processes and
parameters made when reporting
Mineral Resources may not
always be rigorous. Where
this is the case, this should
be reported with an explanation
of the basis of the metallurgical
assumptions made.
--------------- ------------------------------------ ------------------------------------------------------------
Environmental Assumptions made regarding No assumptions have been made.
factors possible waste and process
or assumptions 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 determined. A table of density data was provided
If assumed, the basis for in the Bumbo dataset. This was
the assumptions. If determined, analysed by domain. For the fresh
the method used, whether domains it was found that the
wet or dry, the frequency density values had too wide a
of the measurements, the spread to rely on a simple mean
nature, size and representativeness as the value to apply. Scattergrams
of the samples. were plotted between metals and
density to determine possible
relationships. Regression formulae
were able to be derived. For the
two oxide domains there was insufficient
data to determine regression formulae,
and the spread of density values
tended to be lower, so it was
permissible to use the mean values.
Domain Density Value
MS Density = 3.21+0.05(Zn%)
-------------------------
STR -
FRESH Density=2.85+0.13*(Cu%)
-------------------------
STR -
OXIDE 2.68
-------------------------
GOLD
- FRESH Density=2.74*0.66(Cu%)
-------------------------
GOLD
- OXIDE 2.84
-------------------------
--------------- ------------------------------------ ------------------------------------------------------------
The bulk density for bulk Some porosity can be expected,
material must have been however, the bulk density assigned
measured by methods that is considered to be reasonable.
adequately account for void
spaces (vugs, porosity,
etc), moisture and differences
between rock and alteration
zones within the deposit.
--------------- ------------------------------------ ------------------------------------------------------------
Discuss assumptions for Values were assigned on the basis
bulk density estimates used of lithology and assay grade.
in the evaluation process
of the different materials.
--------------- ------------------------------------ ------------------------------------------------------------
Classification The basis for the classification The Mineral Resource was classified
of the Mineral Resources as Inferred, considering the level
into varying confidence of geological understanding of
categories. the deposit, survey precision,
quality of samples, density data,
drillhole spacing and sampling
and assaying processes.
--------------- ------------------------------------ ------------------------------------------------------------
Whether appropriate account The following initial classification
has been taken of all relevant approach was adopted:
factors (i.e. relative confidence * The resource was classed as Inferred if the block was
in tonnage/grade estimations, filled in the second pass of estimation, with a
reliability of input data, radius of 120 m.
confidence in continuity
of geology and metal values,
quality, quantity and distribution * On review, all blocks were filled on the second pass.
of the data).
--------------- ------------------------------------ ------------------------------------------------------------
Whether the result appropriately The MRE appropriately reflects
reflects the Competent Person's the view of the Competent Person.
view of the deposit.
--------------- ------------------------------------ ------------------------------------------------------------
Audits The results of any audits No audits have been carried out.
or reviews or reviews of MREs.
--------------- ------------------------------------ ------------------------------------------------------------
Discussion Where appropriate a statement The Mineral Resource accuracy
of relative of the relative accuracy is communicated through the classification
accuracy/ and confidence level in assigned to this Mineral Resource.
confidence the MRE using an approach The MRE has been classified in
or procedure deemed appropriate accordance with the JORC Code
by the Competent Person. (2012 Edition) using a qualitative
For example, the application approach. All factors that have
of statistical or geostatistical been considered have been adequately
procedures to quantify the communicated in Section 1 and
relative accuracy of the Section 3 of this Table.
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 The Mineral Resource statement
whether it relates to global relates to a global tonnage and
or local estimates, and, grade estimate. Grade estimates
if local, state the relevant have been made for each block
tonnages, which should be in the block model.
relevant to technical and
economic evaluation. Documentation
should include assumptions
made and the procedures
used.
--------------- ------------------------------------ ------------------------------------------------------------
These statements of relative Bumbo is at the prospect stage;
accuracy and confidence it is not in production.
of the estimate should be
compared with production
data, where available.
--------------- ------------------------------------ ------------------------------------------------------------
ENDS
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