TIDMTHR
RNS Number : 1541J
Thor Mining PLC
15 August 2019
15 August 2019
THOR MINING PLC
SUBSTANTIAL INITIAL COPPER RESOURCE - MOONTA PROJECT
INFERRED ISR COPPER RESOURCE OF 114,000 TONNES CONTAINED
COPPER
The Board of Thor Mining Plc ("Thor" or the "Company") (AIM,
ASX: THR), is pleased to announce an initial Mineral Resource
Estimate (MRE) containing 114,000 tonnes of copper, considered
amenable to In Situ Recovery techniques ("In Situ Recovery" or
"ISR"), released 15 August 2019 by EnviroCopper Ltd. ("ECL").
Thor, as announced on 5 March 2019, is acquiring up to a 30%
interest in EnviroCopper, which in turn is earning from Andromeda
Metals Limited (ASX: ADN) up to a 75% interest in the mineral
rights and claims over the northern portion of the Moonta
exploration licence area (EL5984) in South Australia.
EnviroCopper Ltd are also earning, from Terramin Australia
Limited (ASX:TZN), up to a 75% interest in the mineral rights and
claims over the portion of the historic Kapunda copper mine in
South Australia recoverable by way of in situ recovery
techniques
Subject to full earn in Thor would therefore hold an effective
22.5% interest in each of the Moonta and Kapunda copper
projects.
Highlights include;
-- An Inferred Resource estimate of 66.1 million tonnes (MT)
grading 0.17% copper (Cu), containing 114,000 tonnes of contained
copper, at a cutoff grade of 0.05%Cu;
-- At a higher cutoff grade of 0.1% Cu the resource stands at
35.4 MT grading 0.26% copper (Cu), containing 93,000 tonnes of
contained copper;
-- The EnviroCopper managed resource inventory when included
with the Mineral Resource Estimate for the Kapunda Copper Project,
now stands at 233,000 tonnes of copper;
-- The resource estimate is considered preliminary, with an
additional 308 drill holes over Wombat, Bruce, and Larwood deposits
to be included in the resource modelling once scheduled quality
assurance processes are complete;
-- ISR processes are not burdened by the normally high capital
and operating cost activities of mining, crushing, grinding, and
often flotation associated with conventional mining and processing
operations. Subject to testwork and feasibility study outcomes at
Moonta, there is therefore an expectation that copper production
from deposits amenable to ISR techniques may be at relatively low
cost;
-- Further work is required to advance a range of areas prior to
commercial development including ongoing local government and
community engagement, continuing technical assessment, and various
environmental and regulatory issues.
Mick Billing, Executive Chairman, commented:
"An Inferred Resource estimate containing 114,000 tonnes of
copper is outstanding news for our investors, and we look forward
to further upgrades to this estimate as additional historical
drillholes are validated".
This builds upon the EnviroCopper Kapunda resource of 119,000
tonnes contained Cu, (refer AIM announcement of 10 February 2016
and ASX announcement of 12 February 2018), with copper emerging as
a very significant component of the Thor Mining project
portfolio.
"Global copper pricing outlook, despite some recent falls,
remains firm. At the date of this announcement of approximately
US$5,700 per tonne, this Inferred Resource demonstrates that the
project has considerable potential value."
"Thor holds a 25% interest in EnviroCopper, with rights to
increase that equity to 30%, and is therefore very well placed with
its interest in this strategically significant project, at a time
when new copper opportunities in safe jurisdictions are at a
premium."
"The advancements in ISR and lixiviant technologies offer new
methods to extract copper. The ISR method is considered to be a
viable method of extracting the copper in this location with
minimal disturbance to the existing surface profile."
Thor and EnviroCopper are committed to ongoing community
engagement being fundamental in the development of the Moonta
project, and we will engage widely through review and feedback of
our plans and processes as we advance this important
opportunity".
"We look forward to updating investors regularly as news on this
project becomes available."
Background
On 5 March 2019, Thor announced it had signed a Memorandum of
Understanding (MOU) for the vending of its interest in the Kapunda
Copper Project into a new copper focused Company, EnviroCopper
Limited ("EnviroCopper"), to include an interest in the Moonta
project, subject to due diligence processes, and execution of a
binding Farm-In and Joint Venture Agreement. The due diligence
portion of that work is complete, and the parties are proceeding
with documentation of the binding Farm-In and Joint Venture
Agreement.
Resource Estimate
Following a review of both historical mining records, historical
drilling reports and drill core an update of the geological model
has been prepared upon which mining consultants, Mining Plus, have
prepared for EnviroCopper an Inferred Resource Estimate for the
Moonta Copper Deposit assessed as being potentially amenable to
Insitu Recovery.
Table A: Moonta Copper Mineral Resource Estimate JORC 2012
Resource COG Deposit Volume Tonnes Cu (%) Cu (metal Au (g/t) Au (kOz)
Classification (Cu (Mm3) (Mt) Kt)
%)
INFERRED 0.05 Wombat 20.91 46.5 0.17 80
----- -------- ------- ------- ------- ---------- --------- ---------
Bruce 5.51 11.8 0.19 22
----- -------- ------- ------- ------- ---------- --------- ---------
Larwood 3.48 7.8 0.15 12 0.04 10
----- -------- ------- ------- ------- ---------- --------- ---------
Total 29.9 66.1 0.17 114
------- ------- ------- ---------- --------- ---------
Notes:
-- Figures are rounded to reflect appropriate levels of
confidence. Apparent differences may occur due to rounding.
-- EnviroCopper are earning a 75% interest in this resource, and
Thor have investment rights for up to 30% of EnviroCopper.
-- Cut-off grade used of 0.05% Cu
Exploration Target
An ISR amenable Exploration Target for the Moonta Project was
published on 5 March 2019 (and on ASX on 6 March 2019:
https://www.asx.com.au/asxpdf/20190306/pdf/4437wcrytk0qmr.pdf) of
between 238 Mt and 310 Mt at a grade range of 0.18% to 0.23% Copper
(between 428,000 and 713,000 tonnes of contained copper). The
Mineral Resource Estimate sits within, and forms part of, that
Exploration Target. Exploration Targets are conceptual in nature
and there has been insufficient exploration to define a Mineral
Resource under the JORC Code and it is uncertain if further
exploration will result in the determination of a Mineral
Resource.
Further Information
The Wombat, Bruce and Larwood deposits fall on freehold land
used for cereal cropping. Native Title is extinguished on freehold
land.
Copper minerals observed in the weathering troughs include those
typically seen in the weathered profile of copper sulphide
deposits, including chalcocite (Cu(2) S), native copper, rare
copper carbonates, and a black oxide phase tentatively identified
as tenorite (CuO). Chalcopyrite is present but rare.
All three deposits remain open along strike or at depth,
presenting opportunities to find further mineralisation in the
trough extensions. The hydrological characteristics of the troughs
are positive, with the mineralised material identified as being
porous and likely permeable. The troughs are bounded laterally by
fresh and impermeable bedrock that form natural aquacludes.
Preliminary metallurgical testwork confirms that copper is
present in phases amenable to leaching, with improved recoveries
anticipated with leachant optimisation. Non-copper bearing minerals
that might consume ISR leachant, such as carbonates, have not been
observed in the weathering trough hosted mineralisation.
The supplied drilling database consists of 164 drillholes for
18,485 m of drilling. Drill methods undertaken at Moonta include,
Diamond Drilling (DD), Reverse Circulation (RC), Air Core (AC),
Rotary Air Blast (RAB) and also Auger drilling. ECR has also
supplied survey, assay and logged geology data for the project
area.
As the ISR process is more effective in heavily oxidised rocks,
EnviroCopper have supplied a 3-D surface representative of the
deeply weathered trough that hosts the deposits. Mining Plus have
reviewed these wireframes to verify that they are suitable for
Mineral Resource Estimation (MRE) work. The copper mineralisation
above and below these weathered surfaces has then been modelled to
ensure that they represent unique and consistent mineralised
domains.
The drillhole assays have been composited to 3 m lengths, with
the composites inside the mineralisation domains analysed to ensure
that they represent a single grade population, with no need for
additional sub-domaining. The presence of extreme values inside
each of the mineralised domains has been assessed using a
combination of statistical measures and cumulative log probability
and log histogram plots. Where extreme values have been identified,
top-cuts have been applied to reduce their influence during the
geostatistical analysis and grade estimation. Variographic analysis
has been undertaken on the top-cut composite data within each
mineralised domain.
Quantitative Kriging Neighbourhood Analysis (QKNA) has been
undertaken on the main mineralised domains at both Bruce and Wombat
to determine the optimal block size and interpolation parameters
for the deposits. The optimal parameters derived from data at Bruce
have been used for the Larwood deposit.
Separate block models have been created for the Bruce, Larwood
and Wombat deposits. Bruce and Larwood have utilised a parent block
size of 60 m (X) by 20 m (Y) by 10 m and sub-blocks to 6 m (X) by 2
m (Y) by 1 m (Z). The Wombat block model has a parent block size of
50 m (X) by 20 m (Y) by 10 m and sub-blocks to 2.5 m (X) by 2.5 m
(Y) by 1.0 m (Z). The sub-blocks have been estimated at the parent
block scale. The block size selected is considered appropriate for
the drillhole spacing defining the majority of the mineralisation
within all three deposits.
Copper grades at Bruce and Wombat have been estimated using
Ordinary Kriging inside the mineralised domains and surrounding
waste using three interpolation passes, with the domains used as
hard boundaries during the estimation. The search parameters and
ranges have been defined from the modelled variography and QKNA.
The small number of samples within Larwood has resulted in an
inability to generate meaningful variograms. Therefore, an Inverse
Distance weighted to the power of two interpolation method has been
utilised for copper and gold. Grades have been estimated for Bruce
and Wombat with:
-- Pass 1 search ellipse set at one third the variogram range
with a minimum of four and a maximum of 12 samples required to fill
each block,
-- Pass 2 search ellipse set at two thirds the variogram range
with the same minimum and maximum samples as Pass 1,
-- Pass 3 is set at the variogram range with the minimum number
of samples required reduced to two.
Estimation parameters for Larwood have been defined in the same
way as Bruce and Wombat, but with a different interpolation
method.
Oxidised low-grade material has been assigned a bulk density of
2.35 t/m(3) . Oxidised high-grade material has been assigned a bulk
density of 1.82 t/m(3) . All fresh material below the supplied
wireframe surfaces has been assigned a bulk density of 2.65 t/m(3)
.
The Mineral Resource estimate has been validated using visual
and statistical methods, including checking of the block model
grades against the de-clustered input composite grades, use of
swath plots on northings, easting and RL's and visual comparison of
the block model grades versus the drillhole grades. The estimated
grades for the main mineralised domains within the oxidised channel
validate well compared to the de-clustered composite grades.
However, the low-grade domains have been generally underestimated
in the block model as a result of the low sample populations
informing large areas of the block model in these domains. Given
the extraction of copper is concentrating on the oxidised channel,
Mining Plus concludes that the block model is an accurate
representation of the input samples at a global scale.
Classification of the Bruce, Larwood and Wombat Mineral Resource
Estimates are in keeping with the "Australasian Code for Reporting
of Mineral Resources and Ore Reserves" (the JORC Code as prepared
by the Joint Ore Reserve Committee of the AusIMM, AIG and MCA and
updated in December 2012). All classifications and terminologies
have been adhered to. All directions and recommendations have been
followed, in keeping with the spirit of the code.
The resource classification has been applied to the MREs based
on the drilling data spacing, grade and geological continuity, and
data integrity.
Due to the relatively widely spaced drilling density, no blocks
have met the requirements to be classified as Measured or Indicated
Mineral Resources. Mining Plus has classified the areas within the
deposit where the estimated grade has been interpolated between
drillhole intercepts as Inferred Mineral Resources, with the areas
where extrapolation of grade has been identified, remaining as
Unclassified. The results reflect the Competent Person's view of
the deposits.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Enquiries:
Mick Billing +61 (8) 7324 Thor Mining PLC Executive Chairman
1935
Ray Ridge +61 (8) 7324 Thor Mining PLC CFO/Company Secretary
1935
Colin Aaronson/ +44 (0) 207 383 Grant Thornton Nominated Adviser
Richard Tonthat/ Ben 5100 UK LLP
Roberts
Nick Emerson +44 (0) 1483 SI Capital Ltd Joint Broker
Claire Louise Noyce 413 500 Hybridan LLP Joint Broker
/ +44 (0) 203 764
John Beresford-Peirse 2341
Tim Blythe/ Camilla +44 (0) 207 138 Blytheweigh Financial PR
Horsfall 3222
Competent Person's Report
Exploration Results
The information in this report that relates to exploration
results is based on information compiled by Leon Faulkner, who
holds a BSc in geology and who is a Member of The Australasian
Institute of Geoscientists. Mr Faulkner is an employee of
Environmental Metals Recovery Pty Ltd. He has sufficient experience
which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2012
Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. Leon Faulkner
consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
Mineral Resources
The information in this release that relates to the Estimation
and Reporting of Mineral Resources has been compiled by Mr. David
Coventry BSc (Hons). Mr. Coventry is a full-time employee of Mining
Plus Pty Ltd and has acted as an independent consultant on the
Moonta Deposit Mineral Resource estimations. Mr. Coventry is a
Member of the Australasian Institute of Mining and Metallurgists
and has sufficient experience with the style of mineralisation,
deposit type under consideration and to the activities undertaken
to qualify as a Competent Person as defined in the 2012 Edition of
the "Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (The JORC Code). Mr. Coventry
consents to the inclusion in this report of the contained technical
information relating the Mineral Resource Estimation in the form
and context in which it appears.
Updates on the Company's activities are regularly posted on
Thor's website www.thormining.com, which includes a facility to
register to receive these updates by email, and on the Company's
twitter page @ThorMining.
About Thor Mining PLC
Thor Mining PLC (AIM, ASX: THR) is a resources company quoted on
the AIM Market of the London Stock Exchange and on ASX in
Australia.
Thor holds 100% of the advanced Molyhil tungsten project in the
Northern Territory of Australia, for which an updated feasibility
study in August 2018(1) suggested attractive returns.
Adjacent Molyhil, at Bonya, Thor holds a 40% interest in
deposits of tungsten, copper, and vanadium, including an Inferred
resource for the Bonya copper deposit(2).
Thor also holds 100% of the Pilot Mountain tungsten project in
Nevada USA which has a JORC 2012 Indicated and Inferred Resources
Estimate(3) on 2 of the 4 known deposits. The US Department of the
Interior has confirmed that tungsten, the primary resource mineral
at Pilot Mountain, has been included in the final list of Critical
Minerals 2018.
Thor is also acquiring up to a 30% interest Australian copper
development company EnviroCopper Limited, which in turn holds
rights to earn up to a 75% interest in the mineral rights and
claims over the resource on the portion of the historic Kapunda
copper mine in South Australia recoverable by way of in situ
recovery , and also holds rights to earn a 75% interest in portion
of the Moonta Copper project also in South Australia, and is
considered amenable to recovery by way of in situ recovery .
Thor has an interest in Hawkstone Mining Limited, an Australian
ASX listed company with a 100% Interest in a Lithium project in
Arizona, USA.
Finally, Thor also holds a production royalty entitlement from
the Spring Hill Gold project of:
-- A$6 per ounce of gold produced from the Spring Hill
tenements, sold for up to A$1,500 per ounce; and
-- A$14 per ounce of gold produced from the Spring Hill
tenements, sold for amounts over A$1,500 per ounce.
Notes
(1) Refer ASX and AIM announcement of 23 August 2018
(2) Refer ASX and AIM announcement of 26 November 2018
(3) Refer AIM announcement of 13 December 2018 and ASX
announcement of 14 December 2018
Refer AIM announcement of 10 February 2016 and ASX announcement
of 12 February 2018
Refer AIM announcement of 5 March 2019 and ASX announcement of 6
March 2019
Refer AIM announcement of 26 February 2016 and ASX announcement
of 29 February 2016
APPIX A JORC TABLE 1
Section 1 Sampling Techniques and Data
Sampling Diamond, reverse circulation and aircore drilling was used to
techniques * Nature and quality of sampling (e.g. cut channels, obtain samples which were pulverised
random chips, or specific specialised industry to produce sub samples for lab assay for metals including
standard measurement tools appropriate to the copper.
minerals 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 taken to ensure sample
representivity and the appropriate calibration of any
measurement tools or systems used.
* Aspects of the determination of mineralisation that
are Material to the Public Report.
* In cases where 'industry standard' work has been done
this would be relatively simple (e.g. 'reverse
circulation drilling was used to obtain 1 m samples
from which 3 kg was pulverised to produce a 30 g
charge for fire assay'). In other cases more
explanation may be required, such as where there is
coarse gold that has inherent sampling problems.
Unusual commodities or mineralisation types (eg
submarine nodules) may warrant disclosure of detailed
information.
----------------------------------------------------------------- --------------------------------------------------------------
Drilling
techniques * Drill type (eg core, reverse circulation, open-hole * Drill methods included diamond coring, reverse
hammer, rotary air blast, auger, Bangka, sonic, etc) circulation and aircore.
and details (eg core diameter, triple or standard
tube, depth of diamond tails, face-sampling bit or
other type, whether core is oriented and if so, by * Hole diameters varied for methods.
what method, etc).
* Some diamond core was triple tubed.
* Face sampling hammers were used for RC holes.
----------------------------------------------------------------- --------------------------------------------------------------
Drill sample
recovery * Method of recording and assessing core and chip * Qualitative assessment of sample recovery and
sample recoveries and results assessed. moisture content of all ADN drill samples was
recorded.
* Measures taken to maximise sample recovery and ensure
representative nature of the samples. * Sample recoveries for other company holes variably
recorded.
* Whether a relationship exists between sample recovery
and grade and whether sample bias may have occurred * No relationship is known to exist between sample
due to preferential loss/gain of fine/coarse recovery and grade.
material.
----------------------------------------------------------------- --------------------------------------------------------------
Logging
* Whether core and chip samples have been geologically * All holes were geologically logged by on-site
and geotechnically logged to a level of detail to geologists, with lithological, mineralogical,
support appropriate Mineral Resource estimation, weathering, alteration, mineralisation and veining
mining studies and metallurgical studies. information recorded. The holes have not been
geotechnically logged.
* Whether logging is qualitative or quantitative in
nature. Core (or costean, channel, etc) photography. * Geological logging is qualitative.
* The total length and percentage of the relevant * Chip trays containing
intersections logged.
geological sub-samples are photographed at the completion of
the drilling program.
* 100% of any reported intersections have been
geologically logged.
----------------------------------------------------------------- --------------------------------------------------------------
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * Diamond samples collected by sawing core in half.
and sample half or all core taken.
preparation
* RC samples collected using splitter under cyclone if
* If non-core, whether riffled, tube sampled, rotary dry or by grab sample if wet.
split, etc and whether sampled wet or dry.
* Aircore samples collected from bulk sample using a
* For all sample types, the nature, quality and trowel.
appropriateness of the sample preparation technique.
* The majority of drill samples were wet.
* Quality control procedures adopted for all
sub-sampling stages to maximise representivity of
samples. * Laboratory sample preparation includes drying and
pulverising of submitted sample to target of P80 at
75um.
* Measures taken to ensure that the sampling is
representative of the in situ material collected,
including for instance results for field * No ADN samples checked for size after pulverising
duplicate/second-half sampling. failed to meet sizing target in the sample batches
relevant to the report.
* Whether sample sizes are appropriate to the grain
size of the material being sampled. * Duplicate and standard samples were introduced into
ADN sample, while the laboratory completed double
assays on many samples. QAQC measures undertaken by
other companies not generally known.
* Both ADN and laboratory introduced QAQC samples
indicate acceptable analytical accuracy.
* Laboratory analytical charge sizes are standard sizes
and considered adequate for the material being
assayed.
----------------------------------------------------------------- --------------------------------------------------------------
Quality of
assay data * The nature, quality and appropriateness of the * For ADN samples standard laboratory analyses
and assaying and laboratory procedures used and whether completed for copper (4 acid digest with ICP-AES) and
laboratory the technique is considered partial or total. over range (>1%) copper (4 acid digest with AA
tests finish).
* For geophysical tools, spectrometers, handheld XRF
instruments, etc, the parameters used in determining * The laboratory analytical methods are considered to
the analysis including instrument make and model, be total.
reading times, calibrations factors applied and their
derivation, etc.
* For laboratory samples ADN introduced QA/QC samples
at a ratio of one QA/QC sample for every 24 drill
* Nature of quality control procedures adopted (eg samples. The laboratory additionally introduced QA/QC
standards, blanks, duplicates, external laboratory samples (blanks, standards, checks) at a ratio of
checks) and whether acceptable levels of accuracy (ie greater than 1 QA/QC sample for every 5 drill
lack of bias) and precision have been established. samples.
* Both the Company introduced and laboratory introduced
QA/QC samples indicate acceptable levels of accuracy
and precision have been established
----------------------------------------------------------------- --------------------------------------------------------------
Verification
of sampling * The verification of significant intersections by * A sub-set of these intersections have been checked by
and assaying either independent or alternative company personnel. the Competent Person.
* The use of twinned holes. * No twinned holes were drilled in the program the
subject of the report.
* Documentation of primary data, data entry procedures,
data verification, data storage (physical and * No adjustments have been made to the laboratory assay
electronic) protocols. data
* Discuss any adjustment to assay data.
----------------------------------------------------------------- --------------------------------------------------------------
Location of
data points * Accuracy and quality of surveys used to locate drill * Drillhole collars for ADN and PD/RM holes were pegged
holes (collar and down-hole surveys), trenches, mine using GPS or DGPS with an accuracy of +/- 5.0m and
workings and other locations used in Mineral Resource +/-0.5m respectively.
estimation.
* WMC/NBH, Amalg and MIM holes appear to have been
* Specification of the grid system used. pegged by surveyor using a local grid.
* Quality and adequacy of topographic control. * Downhole surveys were completed on all RC and diamond
holes using compass based instruments.
* GDA94 (Zone 53)
* Collar RLs are estimates based upon a high resolution
DTM acquired as part of an historical airborne
geophysical survey.
* Historical collar locations have been digitised from
reports.
----------------------------------------------------------------- --------------------------------------------------------------
Data spacing
and * Data spacing for reporting of Exploration Results. * At Wombat most holes are drilled on 100m spaced lines
distribution at 25 metre intervals. At Bruce and Larwood holes
were drilled on 50m spaced lines at 25 metre
* Whether the data spacing and distribution is intervakls. The data spacing is considered sufficient
sufficient to establish the degree of geological and to allow confident interpretation of the weathering
grade continuity appropriate for the Mineral Resource troughs.
and Ore Reserve estimation procedure(s) and
classifications applied.
* Most material has been sampled in-field at 1 metre
intervals, with some samples composited at intervals
* Whether sample compositing has been applied. varying between 2m to 5m.
----------------------------------------------------------------- --------------------------------------------------------------
Orientation
of data in * Whether the orientation of sampling achieves unbiased * At Bruce and Larwood the drill lines are oriented
relation to sampling of possible structures and the extent to north-south, orthogonal to the strike of these two
geological which this is known, considering the deposit type. deposits.
structure
* If the relationship between the drilling orientation * At Wombat the drill lines are oriented approximately
and the orientation of key mineralised structures is NW-SE, orthogonal to the deposit strike.
considered to have introduced a sampling bias, this
should be assessed and reported if material.
* At both deposits the majority of holes were drilled
towards grid South at inclinations of 60deg from the
horizontal.
* The orientation of the drilling is considered optimal
for deposit disposition, and is considered unlikely
to result in any sampling bias.
----------------------------------------------------------------- --------------------------------------------------------------
Sample
security * The measures taken to ensure sample security. * Measures for non ADN drilled holes unknown.
* ADN samples were transported and delivered to the
laboratory by Company staff.
----------------------------------------------------------------- --------------------------------------------------------------
Audits or No audits completed
reviews * The results of any audits or reviews of sampling
techniques and data.
----------------------------------------------------------------- --------------------------------------------------------------
Section 2 Reporting of Exploration Results
Mineral
tenement and * Type, reference name/number, location and ownership * The area the subject of this report falls within EL
land tenure including agreements or material issues with third 5984, which is 100% owned by Peninsula Resources
status parties such as joint ventures, partnerships, limited, a wholly owned subsidiary of Andromeda
overriding royalties, native title interests, Metals Limited.
historical sites, wilderness or national park and
environmental settings.
* There are no non govt royalties, historical sites or
environmental issues. Underlying land title is
* The security of the tenure held at the time of Freehold land which extinguishes native title.
reporting along with any known impediments to
obtaining a licence to operate in the area.
* EL 5984 is in good standing
------------------------------------------------------------ --------------------------------------------------------------
Exploration
done by other * Acknowledgment and appraisal of exploration by other * The general area that forms the subject of this
parties parties. report has been explored in the past by various
companies including Western Mining Corporation, Nor
th
Broken Hill, Amalg Resources, MIM, Phelps Dodge/Red
Metal, and Andromeda Metals. The Company has review
ed
past exploration data generated by
these companies.
------------------------------------------------------------ --------------------------------------------------------------
Geology
* Deposit type, geological setting and style of * Deposits in the general region are considered to be
mineralisation. of Iron Oxide Copper Gold affinity, related to the
1590Ma Hiltaba/GRV tectonothermal event.
Cu-Au-Mo-Co-Pb mineralisation is structurally
controlled and associated with significant
metasomatic
alteration of host rocks.
------------------------------------------------------------ --------------------------------------------------------------
Drillhole * No new exploration results have been reported
Information * A summary of all information material to the
understanding of the exploration results including a
tabulation of the following information for all
Material drill holes:
* easting and northing of the drill hole collar
* elevation or RL (Reduced Level - elevation above sea
level in metres) of the drill hole collar
* dip and azimuth of the hole
* down hole length and interception depth
* 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 * No metal equivalents are reported.
aggregation * In reporting Exploration Results, weighting averaging
methods techniques, maximum and/or minimum grade truncations
(eg cutting of high-grades) and cut-off grades are
usually Material and should be stated.
* Where aggregate intercepts incorporate short lengths
of high-grade results and longer lengths of low grade
results, the procedure used for such aggregation
should be stated and some typical examples of such
aggregations should be shown in detail.
* The assumptions used for any reporting of metal
equivalent values should be clearly stated
------------------------------------------------------------ --------------------------------------------------------------
Relationship No new exploration results have been reported
between * These relationships are particularly important in the
mineralisation reporting of Exploration Results.
widths and
intercept
lengths * If the geometry of the mineralisation with respect to
the drill hole angle is known, its nature should be
reported.
* If it is not known and only the down hole lengths are
reported, there should be a clear statement to this
effect (eg 'down hole length, true width not
known')..
------------------------------------------------------------ --------------------------------------------------------------
Diagrams No new exploration results have been reported
* Appropriate maps and sections (with scales) and
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 No new exploration results have been reported
reporting * Where comprehensive reporting of all Exploration
Results is not practicable, representative reporting
of both low and high-grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
------------------------------------------------------------ --------------------------------------------------------------
Other No new exploration results have been reported
substantive * Other exploration data, if meaningful and material,
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 Further work may involve further technical studies including
* The nature and scale of planned further work (eg lixiviant optimisation, permeability
tests for lateral extensions or depth extensions or studies, possibility of recovering cobalt and gold etc.
large-scale step-out drilling).
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
------------------------------------------------------------ --------------------------------------------------------------
Section 3 Estimation and Reporting of Mineral Resources
Database integrity Available drill core and drill chips have been re-inspected to
* Measures taken to ensure that data has not been confirm weathered zone boundaries.
corrupted by, for example, transcription or keying Data that was manually entered was verified against original log
errors, between its initial collection and its use sheets and original lab sheets
for Mineral Resource estimation purposes. where available by geologist doing the data entry. Modern assay
results were transferred electronically
from spreadsheets. Historic data was stored originally in excel
* Data validation procedures used. spreadsheets, then transferred
into a Micromine database. This database was stored securely on
an Andromeda Metals server
at its Adelaide office site.
Software data validation for incorrect/overlapping intervals
carried out during importation
and weathering trough surface modelling, plotting of drill hole
plans and cross sections to
ensure down hole survey data is correct.
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Site visits The Competent person has visited the site twice in the last 24
* Comment on any site visits undertaken by the months and viewed all three
Competent Person and the outcome of those visits. prospects and it was not deemed necessary for Mining Plus
competent person to visit the site
* If no site visits have been undertaken indicate why
this is the case.
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Geological ECR developed mineralised weathering surfaces for use in the
interpretation * Confidence in (or conversely, the uncertainty of) the MRE. These surfaces are generated
geological interpretation of the mineral deposit. from drillholes at each deposit. The base of the weathering
channels is defined by a small
number of drillholes at present.
* Nature of the data used and of any assumptions made. Previous MRE interpretations focussed on open pit mining
methods, the current interpretation
is designed around ISR extraction.
* The effect, if any, of alternative interpretations on Weathering surfaces form the base of mineralised material
Mineral Resource estimation. The extent of the weathering surface forms the mineralised
boundary
* The use of geology in guiding and controlling Mineral
Resource estimation.
* The factors affecting continuity both of grade and
geology.
------------------------------------------------------------------- -----------------------------------------------------------------
Dimensions The Bruce mineralisation has been modelled at 600m along strike
* The extent and variability of the Mineral Resource and 125m across strike, and
expressed as length (along strike or otherwise), plan extends approximately 300m below surface at its deepest point.
width, and depth below surface to the upper and lower The Larwood mineralisation has been modelled at 600m along
limits of the Mineral Resource strike and 200m across strike,
and extends approximately 150m below surface at its deepest
point.
The Wombat deposit has been modelled as 1000m along strike and
300m across strike, and extends
approximately 350m below surface at its deepest point.
------------------------------------------------------------------- -----------------------------------------------------------------
Estimation and The estimation has been undertaken using Ordinary Kriging
modelling * The nature and appropriateness of the estimation Interpolation methods at Bruce and
techniques technique(s) applied and key assumptions, including Wombat. The Larwood estimation has been undertaken using
treatment of extreme grade values, domaining, Inverse distance weighted to the
interpolation parameters and maximum distance of power of two interpolation methods.
extrapolation from data points. If a computer The drillhole assays have been composited to 3 m lengths,
assisted estimation method was chosen include a with the composites inside the mineralisation
description of computer software and parameters used. domains analysed to ensure that they represent a single
grade population, with no need for
additional sub-domaining. The presence of extreme values
* The availability of check estimates, previous inside each of the mineralised domains
estimates and/or mine production records and whether has been assessed using a combination of statistical
the Mineral Resource estimate takes appropriate measures and cumulative log probability
account of such data. and log histogram plots. Where extreme values have been
identified, top-cuts have been applied
to reduce their influence during the geostatistical
* The assumptions made regarding recovery of analysis and grade estimation. Variographic
by-products. analysis has been undertaken on the top-cut composite data
within each mineralised domain.
Grade estimation has been carried out on copper only at
* Estimation of deleterious elements or other non-grade Bruce and Wombat. Grade estimation
variables of economic significance (e.g. sulphur for has been carried out on copper and gold at Larwood.
acid mine drainage characterisation). Quantitative Kriging Neighbourhood Analysis (QKNA) has been
undertaken on the main mineralised
domains at both Bruce and Wombat to determine the optimal
* In the case of block model interpolation, the block block size and interpolation parameters
size in relation to the average sample spacing and for the deposits. The block size chosen at Bruce has been
the search employed. applied for Larwood given the close
proximity and similar drill spacing.
Separate block models have created for the Bruce, Larwood
* Any assumptions behind modelling of selective mining and Wombat deposits. Bruce and Larwood
units. have utilised a parent block size of 60 m (X) by 20 m (Y)
by 10 m and sub-blocks to 6 m (X)
by 2.0 m (Y) by 1.0 m (Z) used for both deposits. The
* Any assumptions about correlation between variables Wombat block model has a parent cell
block size of 50 m (X) by 20 m (Y) by 10 m and sub-blocks
to 2.5 m (X) by 2.5 m (Y) by 1.0
* Description of how the geological interpretation was m (Z). The sub-blocks have been estimated at the parent
used to control the resource estimates. block scale. The block size selected
is considered appropriate for the drillhole spacing
defining the majority of the mineralisation
* Discussion of basis for using or not using grade within all three deposits.
cutting or capping. Copper grades at Bruce and Wombat have been estimated using
Ordinary Kriging inside the mineralised
domains and surrounding waste using three interpolation
* The process of validation, the checking process used, passes, with the domains used as hard
the comparison of model data to drillhole data, and boundaries during the estimation. The search parameters and
use of reconciliation data if available. ranges have been defined from
the modelled variography and QKNA with:
* Pass 1 search ellipse set at one third the variogram
-- range with a minimum of four and a maximum of 12
samples required to fill each block,
* Pass 2 search ellipse set at two thirds the variogram
range with the same minimum and maximum samples as
Pass 1,
* Pass 3 is set at the variogram range with the minimum
number of samples required reduced to two.
At Larwood, the small disparate data set has led to the use
of Inverse distance weighted to
the power of two interpolation method for copper and gold.
Estimation parameters are defined
in the same way as Bruce and Wombat, but with a different
interpolation method
------------------------------------------------------------------- -----------------------------------------------------------------
Moisture Tonnages are estimated on a dry tonnes basis.
* Whether the tonnages are estimated on a dry basis or
with natural moisture, and the method of
determination of the moisture content.
------------------------------------------------------------------- -----------------------------------------------------------------
Cut-off parameters The Mineral Resource is reported at 0.05% Cu, which is in
* The basis of the adopted cut-off grade(s) or quality accordance with Industry standard
parameters applied for ISR copper recovery.
------------------------------------------------------------------- -----------------------------------------------------------------
Mining factors or ECR plan to develop the deposits for extraction of the copper
assumptions * Assumptions made regarding possible mining methods, metal via in-situ recovery (ISR)
minimum mining dimensions and internal (or, if which is a production process used to recover minerals using a
applicable, external) mining dilution. It is always fluid circulated via drilled
necessary as part of the process of determining wells. During the process a leaching solution (or "lixiviant")
reasonable prospects for eventual economic extraction is injected into the rock mass
to consider potential mining methods, but the via a borehole, passes through the deposit leaching the target
assumptions made regarding mining methods and commodity, and is returned
parameters when estimating Mineral Resources may not to the surface via a second borehole where the dissolved metal
always be rigorous. Where this is the case, this is extracted from solution
should be reported with an explanation of the basis by SXEW or ion exchange in a processing plant
of the mining assumptions made.
------------------------------------------------------------------- -----------------------------------------------------------------
Metallurgical No metallurgical factors or assumptions have been included in
factors or * The basis for assumptions or predictions regarding the Mineral Resource
assumptions metallurgical amenability. It is always necessary as
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 No environmental factors or assumptions have been included in
factors or * Assumptions made regarding possible waste and process the Mineral Resource
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 Bulk density has been assigned based on data sourced from
* Whether assumed or determined. If assumed, the basis WOMDD002 and WOMDD001. A total of
for the assumptions. If determined, the method used, 33 samples have been used to derive the bulk density values for
whether wet or dry, the frequency of the measurements, all rock and weathering types
the nature, size and representativeness of the within the deposits. The data has been assigned based on
samples. intersection with the supplied weathering
channel wireframe at Wombat.
* The bulk density for bulk material must have been
measured by methods that adequately account for void
spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within
the deposit,
* Discuss assumptions for bulk density estimates used
in the evaluation process of the different materials.
------------------------------------------------------------------- -----------------------------------------------------------------
Classification Mining Plus has reviewed all of the input data thoroughly in
* The basis for the classification of the Mineral order optimise the classification
Resources into varying confidence categories of the Mineral Resource. Given the current understanding,
additional hydrological studies,
leach testing and bulk density measurements are required before
* Whether appropriate account has been taken of all any portion of the Mineral
relevant factors (i.e. relative confidence in Resource can be classified at a higher confidence category then
tonnage/grade estimations, reliability of input data, Inferred.
confidence in continuity of geology and metal values, After review of the SWATH plots, Mining Plus chose Easting,
quality, quantity and distribution of the data). Northing and elevation extents
to define the boundary of composite interpolation and
extrapolation within the mineralised
* Whether the result appropriately reflects the weathering channel. All blocks that have been estimated that
Competent Person's view of the deposit. fall within the boundary wireframes
have been classified as Inferred. All other blocks within the
block models remain unclassified.
------------------------------------------------------------------- -----------------------------------------------------------------
Audits or reviews The Mineral Resource estimates have not been audited or reviewed
* The results of any audits or reviews of Mineral
Resource estimates.
------------------------------------------------------------------- -----------------------------------------------------------------
Discussion of This MRE is a global representation of the mineral endowment
relative * Where appropriate a statement of the relative that may be extracted at some
accuracy/confidence accuracy and confidence level in the Mineral Resource time in the future. This global estimate is currently unable to
estimate using an approach or procedure deemed be used for any detailed mining
appropriate by the Competent Person. For example, the studies until additional uniform close spaced drilling can be
application of statistical or geostatistical undertaken at all three deposits.
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
------------------------------------------------------------------- -----------------------------------------------------------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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