TIDMSAV
RNS Number : 6038A
Savannah Resources PLC
27 March 2017
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector:
Mining
27 March 2017
Savannah Resources Plc
900Mt Resource Defined at Ravene, Mutamba Project,
Mozambique
Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'),
is pleased to announce a maiden resource estimation for the Ravene
deposit in Mozambique ('Ravene') (Figures 1). Ravene forms part of
the Mutamba Mineral Sands Project, being developed by Savannah and
Rio Tinto as part of a consortium agreement between the two parties
(the 'Consortium'). To view the press release with the illustrative
maps and diagrams please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/6038A_-2017-3-27.pdf
HIGHLIGHTS:
-- Ravene resource estimation has defined an Inferred JORC
(2012) Mineral Resource estimate of 900Mt at 4.1% Total Heavy
Minerals ('THM')
-- The global Mineral Resource estimate for the Mutamba project
(combined Jangamo, Dongane and Ravene) now stands at 4.4Bt at 3.9%
THM comprising both indicated and inferred category material
-- The new resource estimate represents a 26% increase in the
global Mineral Resource and importantly an 8% increase in THM grade
compared to the overall resource
-- The new Ravene resource includes a high-grade portion of 92Mt
at 6.2% THM, which will be a primary focus within the scoping study
currently being conducted
-- Significant potential remains to expand the Ravene resource
beyond its current boundaries, which will be the focus of future
exploration activities
-- The Mineral Resource estimation is now included in the TZMI
scoping study, which is nearing completion and once received will
be reviewed by the Consortium partners
-- The Mineral Resource compares favourably with other major, African HMS deposits
Savannah's CEO, David Archer said: "The increased Mineral
Resource for the Mutamba Project highlights its potential to be a
significant producer of titanium feedstocks. In addition, this year
we are seeing increasing prices for titanium feedstocks such as
ilmenite and rutile, which means that it is an ideal time to be
taking this project forward.
"The addition of a further 92Mt of high grade resource defined
at Ravene, when combined with the other three major deposits at the
Mutamba Project, means we are off to a great start in delivering on
the Consortium's objective of defining an aggregate tonnage of high
grade resources able to support an initial mining operation for at
least 20 years."
Figure 1. Mutamba Project Location Map - see PDF link
Introduction
The Mutamba Project is subject to the Consortium and is operated
by Savannah. The Mutamba Project includes the Mutamba Project North
(consisting of Jangamo, Dongane and Ravene deposits) and the
Chilubane deposit which is located 180km to the southwest of the
Mutamba Project North.
The current mineral resource statement includes only the
Jangamo, Dongane and Ravene deposits (Figure 1). Full details of
the Jangamo and Dongane resources including supporting JORC Table 1
can be found in the RNS released on 8/11/2016.
Ravene Resource Estimation
The resource estimation utilised drill results from an initial
drill programme completed by Rio Tinto between 2002 and 2004, with
a total of 119 holes RC for 5,039m on a 1km by 500m grid (Figure
2-4) and recent work completed by Savannah pursuant to the
Consortium, with 107 holes drilled for a total of 2,914m, which
infilled the drilling to 500m x 500m spacing. The aim of the
drilling at Ravene was to infill the original grid on a 500m line
spacing to provide drilling information at a concentration of 500m
x 500m so that it could be used to calculate an Inferred Mineral
Resource estimate and be incorporated into the scoping study that
is currently underway. The resource estimation is summarised in
Table 1, the results used in the resource calculation are
summarised in Appendix 1 and a summary of the estimation process is
provided below. Full details of the resource estimation for Ravene
can be found in the JORC Table 1 at the bottom of the release.
Table 1: Updated Mutamba resource table (including the new
Ravene resource estimation in emboldened italics)
Resource Category Sand % THM* % Ilmenite % Ilmenite % Rutile % Zircon THM Ilmenite Rutile Zircon
(Mt) in in in in (Mt) (Mt) (Mt) (Mt)
THM sand sand sand
----------- ----------- ------ ------- ----------- ----------- --------- --------- ----- --------- ------- -------
Jangamo
Indicated Indicated 1,780 3.8 62 2.4 0.06 0.11 68 42 1.1 2.0
----------- ----------- ------ ------- ----------- ----------- --------- --------- ----- --------- ------- -------
Jangamo
Inferred
1336L Inferred 200 3.5 63 2.2 0.03 0.11 7.1 4.5 0.1 0.2
----------- ----------- ------ ------- ----------- ----------- --------- --------- ----- --------- ------- -------
Jangamo
Inferred
3617L Inferred 65 4.2 60 2.5 0.08 0.15 2.7 1.6 0.1 0.1
----------- ----------- ------ ------- ----------- ----------- --------- --------- ----- --------- ------- -------
Dongane Inferred 1,400 3.8 61 2.3 0.07 0.10 54 33 1.0 1.4
----------- ----------- ------ ------- ----------- ----------- --------- --------- ----- --------- ------- -------
Ravene Inferred 900 4.1 56 2.3 0** 0.10 38 21 0** 0.9
----------- ----------- ------ ------- ----------- ----------- --------- --------- ----- --------- ------- -------
Total** 4,400 3.9 60 2.3 0.05 0.11 170 102 2.2 4.7
------------------------ ------ ------- ----------- ----------- --------- --------- ----- --------- ------- -------
*THM is total heavy minerals, denser than 2.85g/cm3
**Rutile was not included in the mineralogy testing of Ravene
deposit, but is very likely to be present
***Tonnes and grades have been rounded and differences appear in
the totals
-- The Ravene estimate is based on a block model that extends
beyond the resource boundaries and was created using all available
data. The block model uses anisotropic search ellipsoids based on
semi-variogram ranges derived from the main mineralised Dune 3
Unit. For THM, slimes and oversize assays, all blocks were
allocated values. The available mineral assemblage data was used to
estimate the percentage of ilmenite, zircon and rutile in the
THM.
Table 2: RAVB Ellipsoid Details
Unit Major Azimuth Major Minor Z Diam
Diam Diam
-------- -------------- ------ ------ -------
Dune 3 0 1,800 1,800 40
-------- -------------- ------ ------ -------
-- The model is based on a detailed geological interpretation,
which divides the resource area into three major units: Dune 2,
Dune 3 and Dune 4. The best mineralisation is found within the Dune
3 unit
-- The blocks used are 200 x 200 x 3m in size. Block averages
were estimated using inverse distance algorithm using the power
2.5
-- Estimates only used drill assays from within the same geological unit
-- The drilling contains a mixture of 3m and 1.5m samples, so
all samples were digitally re-sampled at 1.5m intervals to ensure
equal weighting
-- Grades were not cut, as there are no obvious high-grade outliers in the data set
-- Verification: the model was checked visually to ensure the
average drill hole grades were modelled correctly in the block
model
-- The average THM grade of the assayed drill intersections is
3.27%, compared to block model average of 3.04% THM. The model
extends into low-grade, less densely drilled areas, so the block
model average is slightly lower than the drill samples. The
resource boundary is determined by the content of ilmenite and
zircon (Figure 4)
-- The ratio of these minerals varies and the cut-off changes
accordingly, but for the average composition, the economic cut-off
is 2.9% THM containing 1.6% ilmenite (55% of the THM) and 0.068%
zircon (2.3% of the THM)
Figure 2. Ravene location plan showing relationship to other
resources - see PDF link
Figure 3. Drill hole summary map showing drilling complete at
the Ravene resource - see PDF link
Figure 4. Ravene resource model with the THM grade averaged to
the surface with the red areas showing the higher-grade material -
see PDF link
Competent Person and Regulatory Information
The information in this document that relates to exploration
results is based upon information compiled by Mr Dale Ferguson,
Technical Director of Savannah Resources Limited. Mr Ferguson is a
Member of the Australian Institute of Mining and Metallurgy
(AusIMM) and 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 December 2012 edition of the "Australasian
Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves" (JORC Code). Mr Ferguson consents to the inclusion in
the report of the matters based upon the information in the form
and context in which it appears.
The information in this document that relates to the resource
estimation is based upon information compiled by Mr Colin Rothnie,
an independent consultant. Mr Rothnie is a Member of the Australian
Institute of Mining and Metallurgy (AusIMM) and 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
December 2012 edition of the "Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves" (JORC
Code). Mr Rothnie consents to the inclusion in the report of the
matters based upon the information in the form and context in which
it appears.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
**S**
For further information please visit www.savannahresources.com
or contact:
David Archer Savannah Resources Tel: +44 20
plc 7117 2489
David Hignell / Gerry Northland Capital Tel: +44 20
Beaney (Nominated Partners Ltd 3861 6625
Adviser)
Jon Belliss / Elliot Beaufort Securities Tel: +44 20
Hance Ltd 7382 8300
(Corporate Broker)
Charlotte Page / St Brides Partners Tel: +44 20
Lottie Brocklehurst Ltd 7236 1177
(Financial PR)
Notes
Savannah Resources Plc (AIM: SAV) is a growth oriented,
multi-commodity, mineral development company.
Mozambique
Savannah operates the Mutamba heavy mineral sands project in
Mozambique in collaboration with Rio Tinto, and can earn a 51%
interest in the related Consortium, which has an established
initial Indicated and Inferred Mineral Resource Estimate of 4.4
billion tonnes at 3.9% THM over the Jangamo, Dongane and Ravene
deposits. Under the terms of the Consortium Agreement with Rio
Tinto, upon delivery by Savannah of the following Savannah will
earn the corresponding interest in the Mutamba Project: scoping
study - 20%; pre-feasibility study - 35%; feasibility study - 51%.
Additionally, the Consortium Agreement includes an offtake
agreement on commercial terms for the sale of 100% of production to
Rio Tinto (or an affiliate).
Oman
Savannah has interests in two copper blocks in the highly
prospective Semail Ophiolite Belt in Oman. The projects, which have
an Indicated and Inferred Mineral Resource of 1.7Mt @ 2.2% copper
and high-grade intercepts of up to 56.35m at 6.21% Cu, with gold
credits, provide Savannah with an excellent opportunity to
potentially evolve into a mid-tier copper and gold producer in a
relatively short time frame. Together with its Omani partners,
Savannah aims to outline further mineral resources to provide the
critical mass for a central operating plant to develop the deposits
and in December 2015 outlined exploration targets of between
10,700,000 and 29,250,000 tonnes grading between 1.4% and 2.4%
copper.
Finland
Savannah has Reservation Permits over two new lithium projects,
Somero and Erajarvi, covering an area of 159km(2) in Finland.
Savannah holds a 100% interest in these projects through its
Finnish subsidiary Finkallio Oy. Geological mapping has highlighted
the presence of seven pegmatites across the licence areas - two on
Somero and five on Erajarvi - with key lithium minerals petalite,
spodumene and lepidolite all identified in hand specimens. Follow
up work to further expand and define the pegmatites in readiness
for drilling is being planned for the second quarter of 2017 (after
winter).
Appendix 1. List of mineralised intercepts used in the Ravene
resource estimation (Datum : UTM36, all holes were vertical)
HoleID Easting Northing RL Drillhole Drilling From To Length HMIN% SLIMES% OVSZ%
Full Type
Depth
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
775 747078.9 7329901.6 61 10.5 HA 0 8.5 8.5 3.4 3.7 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
776 748009.3 7329593.9 79 10.5 HA 0 10.5 10.5 3.8 2.9 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
777 748687.3 7330795.6 92 10.5 HA 0 10.5 10.5 4.4 2.5 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1338 743783.3 7316905.6 34 10.5 HA 0 10.5 10.5 6.8 3.5 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1339 743456.5 7317285.7 82 10.5 HA 0 10.5 10.5 8.0 3.0 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1344 744004.7 7318965.1 84 10.5 HA 0 10.5 10.5 3.1 3.1 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1345 743504.6 7318840.8 90 10.5 HA 0 10.5 10.5 5.3 5.7 0.2
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1349 744336.7 7320837.7 64 10.5 HA 0 10.5 10.5 8.4 2.8 0.3
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1361 747404.7 7324013.8 42 10.5 HA 0 10.5 10.5 3.0 0.6 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1362 746865.3 7324333.4 80 10.5 HA 0 0.5 0.5 3.4 1.9 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1363 746248.0 7324613.4 74 10.5 HA 0 10.5 10.5 3.8 0.9 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1365 745419.6 7324976.8 51 10.5 HA 0 10.5 10.5 3.9 2.6 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1368 745010.0 7325283.1 56 10.5 HA 0 10.5 10.5 2.7 3.2 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1369 744640.4 7325838.0 60 10.5 HA 0 10.5 10.5 3.8 3.1 0.3
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1374 741204.5 7316077.6 84 10.5 HA 0 10.5 10.5 6.4 3.3 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1375 741799.0 7315847.0 71 10.5 HA 0 10.5 10.5 8.8 2.5 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1505 747352.4 7327789.1 80 12 HA 0 12 12 4.3 3.4 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1506 746872.3 7328131.0 68 10.5 HA 0 10.5 10.5 4.2 2.0 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1515 747016.5 7329817.3 68 10.5 HA 0 10.5 10.5 3.7 2.5 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1516 747498.2 7329329.1 81 10.5 HA 0 4.5 4.5 5.8 3.5 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1533 749478.1 7330827.2 55 10.5 HA 0 2.5 2.5 2.9 3.8 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1534 749103.5 7331275.9 76 10.5 HA 0 10.5 10.5 3.1 3.2 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1535 748627.0 7331364.0 100 10.5 HA 0 10.5 10.5 5.0 2.9 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1536 748031.1 7331604.9 101 13.5 HA 0 13.5 13.5 4.2 2.0 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1537 747895.7 7332532.5 88 10.5 HA 0 10.5 10.5 6.3 2.9 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1539 747594.9 7331676.7 53 13.5 HA 0 13.5 13.5 5.2 2.2 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1540 748431.7 7332647.3 76 10.5 HA 0 10.5 10.5 2.5 2.9 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1542 748943.2 7332523.2 64 10.5 HA 0 10.5 10.5 2.9 4.2 0.2
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1543 749380.3 7332329.3 74 10.5 HA 0 10.5 10.5 4.9 3.7 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1553 747858.2 7333771.0 87 10.5 HA 0 10.5 10.5 4.9 2.6 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1554 748373.9 7333824.1 60 10.2 HA 0 10.2 10.2 3.7 3.0 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1556 748822.4 7333877.2 76 10.5 HA 0 10.5 10.5 3.8 2.3 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1940 748189.7 7333881.6 69 16 HA 0 16 16 5.1 3.4 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1941 748688.0 7333867.4 67 15 HA 0 8.5 8.5 3.8 2.3 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
1942 747690.3 7333888.1 77 14.5 HA 0 14.5 14.5 5.1 2.7 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2591 740991.0 7314816.9 99 51 RC_NQ 0 37.5 37.5 5.5 4.4 0.2
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2593 741187.1 7315886.2 100 57 RC_NQ 0 53.5 53.5 7.0 3.1 0.2
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2594 741556.7 7315639.4 77 48 RC_NQ 0 27.5 27.5 3.4 3.8 0.2
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2701 744331.8 7319782.8 70 54 RC_NQ 0 38.5 38.5 3.7 6.6 0.2
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2702 743908.8 7320069.4 84 56 RC_NQ 0 46.5 46.5 5.5 7.4 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2706 743795.5 7318974.3 98 63 RC_NQ 0 45.92 45.92 5.6 9.8 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2710 744033.7 7317582.8 54 33 RC_NQ 0 13.5 13.5 3.2 6.4 0.2
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2711 743706.2 7317862.1 86 54 RC_NQ 0 30.5 30.5 5.1 12.9 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2720 743235.6 7316845.2 79 36 RC_NQ 0 17.5 17.5 3.8 10.0 0.2
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2750 745063.7 7325329.8 50 33 RC_NQ 0 9.5 9.5 5.1 7.6 0.2
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2751 745494.2 7325058.7 55 42 RC_NQ 0 14.5 14.5 4.4 5.2 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2752 745907.2 7324776.7 67 42 RC_NQ 0 32.5 32.5 4.2 5.3 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2753 746356.5 7324598.2 70 39 RC_NQ 0 0.66 0.66 4.7 3.3 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2757 746478.5 7325594.6 70 51 RC_NQ 0 38.5 38.5 5.5 5.1 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2758 746874.1 7325307.3 68 39 RC_NQ 0 24.5 24.5 5.4 6.1 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2759 747425.8 7326163.2 84 42 RC_NQ 0 7.5 7.5 3.3 8.6 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2762 747004.8 7326395.5 92 54 RC_NQ 0 30.12 30.12 8.3 3.7 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2774 744670.0 7325612.5 76 51 RC_NQ 0 23.5 23.5 2.2 5.4 0.2
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2780 747140.6 7327597.7 80 69 RC_NQ 0 62.68 62.68 5.4 3.5 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2781 746762.3 7327829.3 67 48 RC_NQ 0 23.5 23.5 5.0 4.0 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2785 746901.4 7328928.3 74 51 RC_NQ 0 33.5 33.5 4.6 3.2 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2786 747301.5 7328661.0 65 48 RC_NQ 0 6.5 6.5 3.0 6.4 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2793 747870.8 7329468.9 74 66 RC_NQ 0 0.5 0.5 2.0 3.7 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2795 747037.3 7330022.0 58 33 RC_NQ 0 17.5 17.5 4.5 3.9 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2798 747601.2 7330866.6 87 69 RC_NQ 0 57.36 57.36 4.4 3.0 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2799 748015.5 7330591.2 71 66 RC_NQ 0 45.5 45.5 3.5 5.1 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2800 748439.0 7330323.4 69 57 RC_NQ 0 49.5 49.5 4.8 3.1 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2801 748891.1 7330062.8 59 36 RC_NQ 0 15.5 15.5 4.0 4.5 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2803 749387.3 7330867.5 57 48 RC_NQ 0 10.5 10.5 4.2 6.2 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2804 748996.5 7331147.0 81 45 RC_NQ 0 7.5 7.5 2.6 5.4 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2805 748554.8 7331367.5 97 69 RC_NQ 0 65.5 65.5 4.8 4.1 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2806 748157.9 7331703.5 101 54 RC_NQ 0 54 54 3.4 3.5 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2807 747737.4 7331973.5 70 54 RC_NQ 0 32.5 32.5 6.6 3.7 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2811 748328.0 7332826.5 72 51 RC_NQ 0 25.5 25.5 5.7 3.9 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2812 748714.3 7332521.6 70 39 RC_NQ 0 23.5 23.5 7.5 4.7 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2813 749136.9 7332254.9 55 48 RC_NQ 0 29.5 29.5 4.4 6.4 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2814 749499.3 7331980.4 57 51 RC_NQ 0 34.5 34.5 3.4 5.3 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2818 748833.6 7333642.1 73 42 RC_NQ 0 26.5 26.5 4.1 4.6 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
2820 748030.3 7334192.5 76 33 RC_NQ 0 23.5 23.5 2.6 3.8 0.1
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4899 748383.0 7332080.0 76.2 45 RC_AC 0 32.7 32.7 3.4 15.8 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4900 747962.0 7332359.0 85.6 21 RC_AC 0 21 21 1.6 14.4 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4901 747965.0 7332364.0 85.4 21 RC_AC 0 21 21 1.7 11.7 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4902 747531.0 7332653.0 54.8 30 RC_AC 0 17.3 17.3 3.6 8.9 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4906 747821.0 7331252.0 73.2 48 RC_AC 0 41.7 41.7 3.2 14.7 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4908 748666.0 7330679.0 89.6 45 RC_AC 0 19.1 19.1 2.8 9.8 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4912 747665.0 7330145.0 88.4 57 RC_AC 0 14.9 14.9 3.9 12.9 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4915 746702.0 7329588.0 68.2 36 RC_AC 0 9.7 9.7 3.5 12.7 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4917 747532.0 7329030.0 74 57 RC_AC 0 0.5 0.5 1.8 10.7 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4919 747387.0 7327923.0 81.6 30 RC_AC 0 14.1 14.1 2.6 21.5 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4920 746919.0 7328163.0 67.7 33 RC_AC 0 12.2 12.2 3.3 9.0 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4929 746698.0 7325991.0 67.3 42 RC_AC 0 14.8 14.8 4.3 13.4 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4932 747096.0 7325706.0 86.5 48 RC_AC 0 37 37 6.4 12.5 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4939 747367.0 7324319.0 55.3 51 RC_AC 0 29.8 29.8 5.1 9.9 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4940 746950.0 7324611.0 63.3 51 RC_AC 0 16.8 16.8 5.9 5.0 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4944 746120.0 7325159.0 76.6 42 RC_AC 0 36.1 36.1 5.0 10.7 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4945 746539.0 7324877.0 79.6 54 RC_AC 0 18.1 18.1 7.4 9.0 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4946 745557.0 7324337.0 66.4 39 RC_AC 0 25.9 25.9 7.1 12.8 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4947 745188.0 7324614.0 67.7 18 RC_AC 0 18 18 1.9 7.1 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4949 745269.0 7324010.0 42.9 18 RC_AC 0 5.4 5.4 4.3 8.5 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4951 744962.0 7323570.0 58.4 24 RC_AC 0 14.9 14.9 3.7 11.4 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4952 744571.0 7320159.0 54.9 24 RC_AC 0 17.4 17.4 6.9 9.0 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4954 744158.0 7320451.0 74.3 46 RC_AC 0 39.8 39.8 6.0 10.5 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4957 743599.0 7319619.0 71.9 28 RC_AC 0 20 20 5.9 13.3 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4958 743998.0 7319365.0 84.8 18 RC_AC 0 18 18 2.3 11.8 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4959 744456.0 7319107.0 52.6 30 RC_AC 0 12.1 12.1 4.0 9.8 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4965 743503.0 7318613.0 92.4 21 RC_AC 0 12.9 12.9 2.7 16.4 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4967 743286.0 7317335.0 79.5 24 RC_AC 0 12 12 4.6 10.5 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4969 743732.0 7317119.0 57.9 24 RC_AC 0 8.4 8.4 3.2 7.6 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4973 741766.0 7316041.0 73 33 RC_AC 0 20.5 20.5 3.8 8.1 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4974 741357.0 7316308.0 64.4 30 RC_AC 0 17.9 17.9 3.8 9.5 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4979 741210.0 7315201.0 98.3 42 RC_AC 0 39.8 39.8 5.9 13.8 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4982 740632.0 7314392.0 98.3 33 RC_AC 0 24.8 24.8 3.8 12.3 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4983 740630.0 7314389.0 98.4 33 RC_AC 0 24.9 24.9 3.7 12.0 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4998 741209.0 7316083.0 84.3 48 RC_AC 0 40.8 40.8 5.9 12.4 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
4999 741802.0 7315846.0 71 24 RC_AC 0 16.4 16.4 2.5 12.9 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
5000 743473.0 7317297.0 82.7 33 RC_AC 0 27.2 27.2 6.6 10.1 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
5001 743476.0 7317293.0 82.6 33 RC_AC 0 27.1 27.1 6.4 12.9 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
5002 743497.0 7318843.0 88.4 18 RC_AC 0 8.9 8.9 2.9 13.1 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
5003 744328.0 7320835.0 64 42 RC_AC 0 35.5 35.5 5.4 9.8 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
5004 749384.0 7332328.0 74.7 21 RC_AC 0 21 21 3.0 12.3 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
5007 748192.0 7333889.0 68.2 39 RC_AC 0 18.7 18.7 4.0 10.6 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
5009 747691.0 7333887.0 77.3 33 RC_AC 0 24.8 24.8 4.5 10.5 0.0
------- --------- ---------- ----- ---------- --------- ----- ------ ------- ------ -------- ------
APPIX 2 - JORC 2012 Table 1
Section 1 Sampling Techniques and Data for Ravene Resource
estimation
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Sampling
techniques * Nature and quality of sampling (eg cut channels, * Two types of drilling used: hand auger and air-core
random chips, or specific specialised industry RC. 85% of the drilling is air-core RC.
standard measurement tools appropriate to the
minerals under investigation, such as down hole gamma
sondes, or handheld XRF instruments, etc). These * Drill samples taken either at 1.5m or 3m intervals.
examples should not be taken as limiting the broad
meaning of sampling.
* Total Heavy Mineral (THM), +1mm oversize and -0.045mm
"slimes" fractions determined on all drill samples.
* Mineralogy of the THM from selected drill composites
determined by magnetic fractionation and XRF.
* Reverse circulation, air-core drill samples were
taken at 3m intervals. All holes were drilled
vertically with NQ sized drill rods. Large plastic
bags were placed under a cyclone to capture a
complete 3m run of sediment intersected by the drill.
The bulk sample was then dried and split using a
rotary splitter to get a sub sample of 500 to 700g
for heavy mineral determination.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Include reference to measures taken to ensure sample * Air-Core Drilling. Drilling is conducted on a regular
representivity and the appropriate calibration of any grid using air-core drilling technology, an industry
measurement tools or systems used. standard drilling technique for HM deposits. Drilling
rods are 3m long and 1 sample is taken for each rod
interval.
* Collar surveys are carried using hand held GPS with
an accuracy to within 5m, and the z direction was
determined by satellite derived elevation data using
Geo-eye and is accurate to less than a metre.
* A bulk sample of a run from a 3m drill rod was
sampled, dried and weighted to assess the expected
recovery for each interval. Sample weights were
plotted against an "expected" value and were used to
monitor the representativity of each sample.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Aspects of the determination of mineralisation that * Heavy mineral concentrations occur as disseminated
are Material to the Public Report. zones within sedimentary units. At Ravene there are
units deposited as aeolian dunes with vertical
continuity. Mineralised zones extend for many
* In cases where 'industry standard' work has been done hundreds of metres to kilometers along strike with
this would be relatively simple (eg 'reverse minor local variability.
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 * Down hole sampling is carried out at 3m intervals
explanation may be required, such as where there is coinciding with the length of a drill rod. The sample
coarse gold that has inherent sampling problems. interval is considered standard for gaining an
Unusual commodities or mineralisation types (eg understanding of the vertical extent and continuity
submarine nodules) may warrant disclosure of detailed of mineralisation. Bulk samples at the rig were dried
information. and split to 500g to 700g sub samples for heavy
mineral and slimes analysis.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Drilling Drilling Drillholes Metres Percent
techniques * Drill type (eg core, reverse circulation, open-hole Statistics of Metres
hammer, rotary air blast, auger, Bangka, sonic, etc) For the Ravene Drilled
and details (eg core diameter, triple or standard B Resource
tube, depth of diamond tails, face-sampling bit or (RAVB)
other type, whether core is oriented and if so, by Hand Auger 35 356 15%
what method, etc). RC-NQ Air-core 82 2047 85%
Total 117 2403
* All hand auger samples were collected over 1.5m
Hand Auger intervals with the deepest hole being 16m in depth.
After retrieval, samples were placed in calico or
canvas bags and labelled with the hole number and
sample interval.
RC Air-Core drilling
* An inherent problem with the hand auger technique is
Air-core drilling bit over-sampling, with the collected sample interval
presenting a larger volume than the theoretical
Air-core sample collection. volume. Hand auger drilling becomes very difficult to
impossible in clays or wet sands below the water
table.
* Reconnaissance hand-auger drilling is mostly used to
locate the major anomalous mineralised areas. Sample
quality is relatively low compared to other drilling
methods and hand-auger drillholes have been
superceded with later drilling of better quality.
However the hand-auger drillholes contain valuable
mineralogy results, so they have been retained for
the final block model.
--
* NQ air-core drilling with hole diameter approx 75mm,
and a bit diameter of 81mm, all holes are vertical.
Air-core drilling is a form of reverse circulation
drilling requiring twin tubes, and where the sample
is collected from the open face drilling bit and
blown up the inner tube. It is well suited to
drilling unconsolidated sediments and is one of the
few drilling techniques to give good sample quality
below the water table.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Drill
sample * Method of recording and assessing core and chip * Field assessment of sample volume. Samples with good
recovery sample recoveries and results assessed. recovery weigh 22-26kg for each 3metre (24.7 kg
theoretical). With air-core method, there is normally
lower than average sample recovery at the very top of
the drillhole due to air and sample losses into the
surrounding soil. Sample recovery below the water
table can be greater than 100% as water flowing into
the hole causes the hole to have a greater diameter
than the drilling bit, however at Ravene the water
table was very rarely encountered. When the water
table was encountered, sampling below the water table
still gives uncontaminated samples provided the
sample stream is only sampled when the bit is cutting
new material.
* With the disseminated style of mineralisation typical
of heavy mineral deposits, it is preferable to have
samples of lower volume that are free of
contamination, rather than samples of correct sample
weight that may be contaminated. Therefore, while
drilling the sampling team focused on ensuring that
the sample stream coming from the drilling rig is
only sampled when the bit is drilling into new,
uncontaminated material. Contamination is most often
a problem during rod changes and where there is a
high flow of groundwater into the drillhole. Very few
of the Ravene drillholes intersected the water table
- so this source of potential contamination was
largely avoided.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Measures taken to maximise sample recovery and ensure * The entire drill sample is delivered to the
representative nature of the samples. laboratory for further analysis, thereby eliminating
the possibility of sample bias caused by splitting
the sample in the field.
* Sample bias and segregation are kept to a minimum
with the whole sample interval collected in large
plastic bags at the rig and transported to the
laboratory, where they are placed into large metal
trays and the whole sample air dried. The dried
samples were broken up in the trays and returned to
the sample bag for splitting.
* Low recoveries were observed in transitions between
dune types. Higher slimes in underlying units were
encountered which slowed the rigs usual advance rate.
When this occurred water was injected into the
airstream to stop clay particles from accreting to
the inside of the inner tube and blocking it.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Whether a relationship exists between sample recovery * Materials sampled by the air-core drilling rig can be
and grade and whether sample bias may have occurred dry, moist or wet. Dry samples may lose some of their
due to preferential loss/gain of fine/coarse slimes fraction due to blowing out of the sampling
material. equipment. The amount of dust coming out of the
cyclone was monitored and kept to an absolute
minimum. HM and oversize are not affected. Moist
drill samples (the most commonly found at Ravene) are
the most representative as the whole sample is
returned as "clumps" of material from the bit face.
There is no chance for HM or slimes to segregate in
the moist samples, because all of the material stays
stuck together. When dust levels were high water was
generally injected into the airstream to maintain
integrity of the sample fractions.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Logging
* Whether core and chip samples have been geologically * All drill holes were logged in the field at the time
and geotechnically logged to a level of detail to of sampling. Each 3m sample interval was carefully
support appropriate Mineral Resource estimation, homogenized and assessed for lithology, colour, grain
mining studies and metallurgical studies. size, degree of roundness and sorting. Each interval
was semi quantitatively assessed for slimes content
and heavy mineral concentrations by washing and
* Whether logging is qualitative or quantitative in panning a standard representative subsample.
nature. Core (or costean, channel, etc) photography.
* Virtually all of the drill samples are sand or clayey
* The total length and percentage of the relevant sand. Drillhole logs are useful in separating geology
intersections logged. units and for checking the laboratory results, but do
not provide any information additional to the
laboratory data that is fundamentally required for
the resource estimation.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * The full sample of each 3m drill run was sampled in
and sample half or all core taken. the field and after logging was labeled and sealed
preparation and taken to the laboratory for analysis. The
complete sample was dried in large metal trays and
* If non-core, whether riffled, tube sampled, rotary once dry the sample is placed into a container to be
split, etc and whether sampled wet or dry. broken up into individual particles. The complete dry
sample weight is recorded and then two sub samples of
500 to 700g are made using a rotary splitter one
sample is for analysis and the other sample is for
reference.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* For all sample types, the nature, quality and * All drill samples consist of sand, clayey sand or
appropriateness of the sample preparation technique. sandy clay. For these samples the sample preparation
method is appropriate.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Quality control procedures adopted for all * All sample preparation and analysis stages are
sub-sampling stages to maximise representivity of documented as a set of standard operating procedures.
samples.
* All stages of the analytical process are monitored by
the lab supervisor to ensure all procedures are being
adhered to.
* All weights are automatically captured by the use of
an in-house laboratory information management system
(LIMS) software, which minimizes any human data input
and the risk of mistyping values into the database.
* In-house reference standards, blanks and duplicates
are routinely inserted in the sample sequence at a
rate of 1:20 to assess the quality of sampling and
analysis.
* Drill holes were also twinned at a rate of 1:20
holes.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Measures taken to ensure that the sampling is * The entire sample is delivered to the lab, so it is
representative of the in situ material collected, representative. Care is taken with the sample
including for instance results for field collection and handling to ensure that the sample
duplicate/second-half sampling. delivered to the laboratory is representative of the
interval drilled.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Whether sample sizes are appropriate to the grain * The three-metre drill sample of 24kg nominal size is
size of the material being sampled. considered large enough to reliably capture the HM,
slimes and oversize characteristics of the in-situ
material.
* The 500g sub sample is considered sufficient large to
consistently determine the concentration of heavy
minerals. The sample size is also considered large
enough to assess slimes content and the oversize
fraction.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Quality
of assay * The nature, quality and appropriateness of the * Sieving is carried out to assess the amount of
data and assaying and laboratory procedures used and whether particles greater than 1mm (oversize) and the amount
laboratory the technique is considered partial or total. of material less than 45 microns (slimes).
tests
* The heavy mineral concentration of each sample is
determined by carrying a heavy liquid separation
(HLS) using an industry-approved liquid with a
density of 2.85g/cm3. The heavy liquid is
water-soluble and density is monitored closely.
* The heavy minerals are separated from the lighter
minerals (mainly quartz) by sinking in the heavy
liquid medium. The heavy minerals are then separated,
washed and weighed.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Not used.
* For geophysical tools, spectrometers, handheld XRF
instruments, etc, 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 adopted (eg * Field duplicate samples are inserted into each
standards, blanks, duplicates, external laboratory processing batch at a rate of 1:20 samples.
checks) and whether acceptable levels of accuracy (ie
lack of bias) and precision have been established.
* Blank samples consisting of either pure quartz sand
or the waste light minerals removed from the HLS
process are inserted 1:20 samples.
* Laboratory duplicate samples are inserted randomly in
a batch from a sample split prior to HLS.
* Standard material generated on site, consisting of a
low grade, medium grade and high grade samples were
homogenized over and extended period to ensure
uniformity. Standards were inserted at a rate of 1:20
samples.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Verification
of sampling * The verification of significant intersections by * Mineral sands drilling involves numerous drill holes
and assaying either independent or alternative company personnel. over large areas with generally, moderate grade
intersections. High-grade are sometimes encountered
however the intersections are a relatively
insignificant part of the overall mineralisation,
high grade results are often checked by examining the
HM "sinks" from the analysis (the HM resulting from
the analysis process is stored for further testing).
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* The use of twinned holes. * Drill holes were twinned routinely every 20 holes.
The initial hole was drilled at the specified
location and then the rig was moved no more than 2m
from the original hole and drilled and sampled to the
same depth.
* Several of the older hand-auger drillholes were
twinned and deepened with the recent Air-core
drilling.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Documentation of primary data, data entry procedures, * In the laboratory the data is recorded directly into
data verification, data storage (physical and the in-house LIMS software. Once a week the
electronic) protocols. laboratory data is uploaded to Rio Tinto's Resource
Development department in Montreal and verified. The
drill hole collar, survey and geological logging data
was also sent for incorporation into the database.
The full data was then returned to the onsite
geologists for checking, and then uploaded into a
secure Acquire database platform.
* Data is loaded into relevant software for cross
sections to be plotted with THM and slime
concentrations and interpreted geology so that the
base of mineralisation can be reliably predicted.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Discuss any adjustment to assay data. * No adjustments are made to the assay data for the
purposes of public reporting.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Location
of data * Accuracy and quality of surveys used to locate drill * The coordinate of each hole was taken at the time of
points holes (collar and down-hole surveys), trenches, mine drilling using a hand held GPS with an accuracy of
workings and other locations used in Mineral Resource 5m.
estimation.
* The coordinate system is UTM 36S (WGS84)
* Specification of the grid system used.
* A detailed digital elevation model has been generated
* Quality and adequacy of topographic control. for the Ravene area using available high-resolution
stereo pairs from satellite data.
* The vertical accuracy of the data is 0.5m.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Data spacing
and * Data spacing for reporting of Exploration Results. * Hole spacing for recent drilling is approximately
distribution 1000m by 500m at Ravene and have been designed to
infill historical drilling on a 1000m by 500m spacing
* Whether the data spacing and distribution is so that an overall drill spacing of 500m by 500m was
sufficient to establish the degree of geological and obtained.
grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedure(s) and
classifications applied. * Data at Ravene together with historical data is
sufficient to establish geological and grade
continuity needed for an Inferred Mineral Resource
* Whether sample compositing has been applied. estimation. The current drilling is infilling
drilling of historical drilling conducted by Rio
Tinto.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Orientation
of data * Whether the orientation of sampling achieves unbiased * The mineralisation at Ravene has two trends, the
in relation sampling of possible structures and the extent to first is the major trend following the general
to which this is known, considering the deposit type. direction of the coast line. The second trend is
geological dictated by dune morphology.
structure
* If the relationship between the drilling orientation
and the orientation of key mineralised structures is * The drill holes are arranged along lines that are
considered to have introduced a sampling bias, this oriented perpendicular to the major coastal trend,
should be assessed and reported if material. and the orientation and 500m x 500m spacing of holes
is considered effective and unbiased in testing the
mineralisation.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Sample
security * The measures taken to ensure sample security. * Chain of custody is managed by Savannah. Samples are
stored on site in a locked yard. Check samples are
then transported to Johannesburg by road freight.
Savannah personnel have no contact with the samples
once they have been dispatched.
* HM samples are retrieved as necessary when further
mineralogical analysis is required.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Audits
or reviews * The results of any audits or reviews of sampling * An audit and review of the sampling techniques and
techniques and data. data have been completed by an independent third
party who confirmed that they were appropriate and
are being conducted to a suitable standard.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this
section.)
Criteria JORC Code explanation Commentary
----------------- ----------------------------------------------------------------- ------------------------------------------------------------------
Mineral
tenement * Type, reference name/number, location and ownership * The Ravene prospect is located with the exploration
and land including agreements or material issues with third permit 566L where Savannah is earning a 51% interest
tenure parties such as joint ventures, partnerships, in the Block with the remainder being held by JV
status overriding royalties, native title interests, partner Rio Tinto.
historical sites, wilderness or national park and
environmental settings.
* The tenement is subject to a memorandum of
understanding (MOU) between Rio Tinto and the
* The security of the tenure held at the time of Mozambican government. The MoU grants Rio Tinto a
reporting along with any known impediments to right of priority to a mining concession in the area
obtaining a license to operate in the area. covered by the MoU during its term.
----------------- --------------------------------------------------------------- --------------------------------------------------------------------
Exploration
done by * Acknowledgment and appraisal of exploration by other * At Ravene, Rio Tinto carried out various field
other parties. programs from 2000 to 2004, which consisted of
parties sampling using a hand auger and an RC drill program.
Interpretation of the field results has been ongoing
up to 2013.
----------------- --------------------------------------------------------------- --------------------------------------------------------------------
Geology
* Deposit type, geological setting and style of * The mineralisation at Ravene is hosted in a sequence
mineralisation. of older dune sands that are situated approximately
5km from the present coast line. The general trend of
dunes is to the northeast, parallel with the present
coast. The dunes themselves are a series of parabolic
dunes representing ancient blowouts with
mineralisation occurring in both the dune faces and
arms of the blowouts. The mineralized dunes, have
been mapped as the third in a sequence of older dunes
that overlie the fluvial sediments of the Mutamba
river. The oldest dunes D1 are characterized by high
slimes and a deep red colour and are not present in
the Ravene area. The next oldest D2 sands form a
basement to the D3 mineralisation seen at Ravene are
characterized by a slight colour change, an increase
in slimes and lower THM. Overlying the mineralised D3
unit to the east are more recent coastal dunes (D4)
that have been blown inland.
----------------- --------------------------------------------------------------- --------------------------------------------------------------------
Drill
hole Information * A summary of all information material to the * Appendix 1 contains a complete listing of the
understanding of the exploration results including a drillhole intercepts for the Inferred Resource.
tabulation of the following information for all
Material drill holes:
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
methods * In reporting Exploration Results, weighting averaging * All drillhole intercepts are reported for the
techniques, maximum and/or minimum grade truncations resource. Because the resource starts at the surface,
(eg cutting of high grades) and cut-off grades are all reported grades are effectively averaged to the
usually Material and should be stated. surface. No cut-off grade is applied to the reported
intercepts.
* 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
between * These relationships are particularly important in the * Results are reported as length weighted averages.
mineralisation reporting of Exploration Results.
widths
and intercept * No high grade cuts have been applied to the reporting
lengths * If the geometry of the mineralisation with respect to of the results.
the drill hole angle is known, its nature should be
reported.
* No metal equivalent values have been used.
* If it is not known and only the down hole lengths are
reported, there should be a clear statement to this * The drill holes are vertical and the mineralisation
effect (eg 'down hole length, true width not known'). is sub-horizontal.
----------------- --------------------------------------------------------------- --------------------------------------------------------------------
Diagrams
* Appropriate maps and sections (with scales) and * Figures 1 & 2 show the location of the resource.
tabulations of intercepts should be included for any Figure 3 shows the drilling. Figure 4 shows the
significant discovery being reported These should interpreted THM grade of the mineralization, averaged
include, but not be limited to a plan view of drill to the surface.
hole collar locations and appropriate sectional
views.
----------------- --------------------------------------------------------------- --------------------------------------------------------------------
Balanced * All 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
substantive * Other exploration data, if meaningful and material, * The geology interpretation of the dune 2, 3 and 4 and
exploration should be reported including (but not limited to): results at Ravene are consistent with the
data geological observations; geophysical survey results; observations and information obtained from historical
geochemical survey results; bulk samples - size and data collected.
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 * Further infill drilling will be conducted as part of
tests for lateral extensions or depth extensions or the on-going development of this resource.
large-scale step-out drilling).
* Further mineralogy testing of the resource will also
* Diagrams clearly highlighting the areas of possible be conducted as part of on-going development.
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
----------------- --------------------------------------------------------------- --------------------------------------------------------------------
Section 3 Estimation and Reporting of Ravene Mineral Resource
Estimation
(Criteria listed in section 1, and where relevant in section 2,
also apply to this section.)
Criteria JORC Code explanation Commentary
--------------- ------------------------------------------------------------ ------------------------------------------------------------------
Database
integrity * Measures taken to ensure that data has not been * Samples are panned in the field and the field
corrupted by, for example, transcription or keying estimate is the first check on the final reported
errors, between its initial collection and its use result. Most of the drillholes are logged in the
for Mineral Resource estimation purposes. field and many of the laboratory analyses were
completed without using manually typed results.
* Data validation procedures used.
* The drilling data is loaded and held in an AcQuire
database, where data integrity is checked.
* Drilling results are checked on cross-section, where
grade anomalies are easily spotted.
--------------- ------------------------------------------------------------ ------------------------------------------------------------------
Site visits
* Comment on any site visits undertaken by the * The Competent Person visited the resource site during
Competent Person and the outcome of those visits. January 2017 to assess regional geology, drilling and
laboratory practices.
* If no site visits have been undertaken indicate why
this is the case.
--------------- ------------------------------------------------------------ ------------------------------------------------------------------
Geological
interpretation * Confidence in (or conversely, the uncertainty of ) * The mineralised sands are windblown dune sands
the geological interpretation of the mineral deposit. probably derived from beach strandline sediments
where the heavy minerals were concentrated.
* Nature of the data used and of any assumptions made.
* The heavy mineral content of the sand is one of its
main distinguishing geological characteristics,
* The effect, if any, of alternative interpretations on indicating that natural concentrating mechanisms have
Mineral Resource estimation. been active at some stage during its past.
Additionally, the slimes and oversize contents of the
sand are indicators of previous geological
* The use of geology in guiding and controlling Mineral environments.
Resource estimation.
* Block model grades are estimated using samples only
* The factors affecting continuity both of grade and from within the same geological unit.
geology.
--------------- ------------------------------------------------------------ ------------------------------------------------------------------
Dimensions
* The extent and variability of the Mineral Resource * Mineralisation extends for 21km north-northeast as a
expressed as length (along strike or otherwise), plan series of oblate "pods". The mineralised zones are of
width, and depth below surface to the upper and lower variable width, up to 3.4km wide. The dune topography
limits of the Mineral Resource. is variable, but mineralisation averages 25m
thickness, and has a maximum drilled thickness of
65m. Mineralisation extends up to the surface.
--------------- ------------------------------------------------------------ ------------------------------------------------------------------
Estimation
and modelling * The nature and appropriateness of the estimation * The estimate is based on a block model that extends
techniques technique(s) applied and key assumptions, including beyond the resource boundaries and was created using
treatment of extreme grade values, domaining, all available data. The block model uses anisotropic
interpolation parameters and maximum distance of search ellipsoids based on semi-variogram ranges
extrapolation from data points. If a computer derived from the main mineralised Dune 3 Unit. For
assisted estimation method was chosen include a THM, slimes and oversize assays, all blocks were
description of computer software and parameters used. allocated values. The available mineral assemblage
data was used to estimate the percentage of ilmenite,
zircon and rutile in the THM.
* The availability of check estimates, previous
estimates and/or mine production records and whether
the Mineral Resource estimate takes appropriate RAVB Ellipsoid Details Unit Major Major Minor Z Diam
account of such data. Azimuth Diam Diam
Dune
3 0 1800 1800 40
* The assumptions made regarding recovery of
by-products.
* The model is based on a detailed geological
interpretation which divides the resource area into
* Estimation of deleterious elements or other non-grade three major units: Dune 2, Dune 3 and Dune 4. The
variables of economic significance (eg sulphur for best mineralisation is found within the Dune 3 unit.
acid mine drainage characterisation).
* The blocks used are 200 x 200 x 3m in size. Block
* In the case of block model interpolation, the block averages were estimated using inverse distance
size in relation to the average algorithm using the power 2.5.
* sample spacing and the search employed. * Estimates only used drill assays from within the same
geological unit.
* Any assumptions behind modelling of selective mining
units. * The drilling contains a mixture of 3m and 1.5m
samples, so all samples were digitally re-sampled at
1.5m intervals to ensure equal weighting.
* Any assumptions about correlation between variables.
* Grades were not cut, as there are no obvious high
* Description of how the geological interpretation was grade outliers in the data set.
used to control the resource estimates.
* Verification: The model was checked visually to
* Discussion of basis for using or not using grade ensure the average drillhole grades were modelled
cutting or capping. correctly in the block model.
* The process of validation, the checking process used, * The average THM grade of the assayed drill
the comparison of model data to drill hole data, and intersections is 3.27%, compared to block model
use of reconciliation data if available. average of 3.04% THM. The model extends into
low-grade, less densely drilled areas, so the block
model average is slightly lower than the drill
samples.
--------------- ------------------------------------------------------------ ------------------------------------------------------------------
Moisture * Tonnages are estimated dry.
* 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 basis of the adopted cut-off grade(s) or quality * The resource boundary is determined by the content of
parameters applied. ilmenite and zircon.
* The ratio of these minerals vary and the cut-off
changes accordingly, but for the average composition,
the economic cut-off is 2.9% THM containing 1.6%
ilmenite (55% of the THM) and 0.068% zircon (2.3% of
the THM).
* The resource boundary is determined using the
following major assumptions: overall wet concentrator
THM recovery 74%, ilmenite, zircon and rutile spiral
recoveries 92%, 90% and 80% respectively. MSP
recoveries: ilmenite 95%, zircon 75%, rutile 30%.
Mineral prices ilmenite $185, zircon $1200, rutile
$800*. Area disturbance costs (including rehab) are
assumed at $1.90 per square metre, and an expansion
factor of 1.4 is applied to allow for off-orebody
disturbance. Mining costs and wet concentration $1.32
per ton of ore mined, MSP treatment $25/t of HMC
(Heavy Mineral Concentrate), head office/port
costs/marketing $25/t HMC, HMC and product transport
costs $10/t HMC. Slimes treatment is estimated at
$3/t of slimes in the ore that exceeds 5% (which is
assumed to be fixed in the sand tailings).
* Using these assumptions, mining and processing 1
tonne of ore at 2.9% THM costs $2.84. Revenues from
the ilmenite and zircon produced from this material
are also $2.84.
* * The mineral prices used in the resource estimation
are entirely based on price trend evaluations by the
Competent Person. More detailed costs and revenues
will be estimated during feasibility studies.
--------------- ------------------------------------------------------------ ------------------------------------------------------------------
Mining
factors * Assumptions made regarding possible mining methods, * Dredge mining is assumed to be the most likely
or assumptions minimum mining dimensions and internal (or, if long-term mining method. Dry mining methods could
applicable, external) mining dilution. It is always also be used on high grade zones within the resource
necessary as part of the process of determining if a higher cut-off grade is applied.
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
factors * The basis for assumptions or predictions regarding * Metallurgical assumptions are listed above in
or assumptions metallurgical amenability. It is always necessary as determination of economic cut-off. Basic mineralogy
part of the process of determining reasonable has been determined by XRF analyses of magnetic
prospects for eventual economic extraction to fractions of the HM. The mineralogy is consistent
consider potential metallurgical methods, but the with other resources along strike and nearby which
assumptions regarding metallurgical treatment have been studied in greater detail.
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.
--------------- ------------------------------------------------------------ ------------------------------------------------------------------
Environmen-tal
factors * Assumptions made regarding possible waste and process * Mining tailings will be initially stored in a
or assumptions residue disposal options. It is always necessary as dedicated tails storage facility until sufficient
part of the process of determining reasonable mining void has been opened up to allow in-pit
prospects for eventual economic extraction to tailings disposal. Slimes will probably be disposed
consider the potential environmental impacts of the of with the sand tails, or in slimes paddocks built
mining and processing operation. While at this stage in the original tails disposal facility.
the determination of potential environmental impacts,
particularly for a greenfields project, may not
always be well advanced, the status of early * Tailings from the MSP would be disposed of in the
consideration of these potential environmental mining void near the MSP. These are benign and will
impacts should be reported. Where these aspects have be covered with sand and soil prior to hand-back to
not been considered this should be reported with an the community.
explanation of the environmental assumptions made.
* The mine will require a certain amount of ground
disturbance, but this will be rehabilitated
progressively as the mine advances.
* Much of the area is currently used for small
agricultural plots that are used on a rotational
basis by subsistence farmers. Scattered houses and
other small buildings lie on or near the resource and
would probably require resettlement. In general
though, there is a lower population and fewer houses
and crop areas than on other nearby resources.
--------------- ------------------------------------------------------------ ------------------------------------------------------------------
Bulk density
* Whether assumed or determined. If assumed, the basis * Density has been measured on the same geological unit
for the assumptions. If determined, the method used, (D3) on nearby areas using Sonic drilling. The
whether wet or dry, the frequency of the measurements current Ravene model (RAVB) uses a density
, calculation of 1.62 + THM%/100.
the nature, size and representativeness of the
samples.
* The bulk density for bulk material must have been
measured by methods that adequately account for void
spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within
the deposit.
* Discuss assumptions for bulk density estimates used
in the evaluation process of the different materials.
--------------- ------------------------------------------------------------ ------------------------------------------------------------------
Classification
* The basis for the classification of the Mineral * The resource has been drilled at 500 x 500m spacing
Resources into varying confidence categories. and is classified as Inferred.
* Whether appropriate account has been taken of all * The current classification was prepared by and
relevant factors (ie relative confidence in reflects the view of the Competent Person.
tonnage/grade estimations, reliability of input data,
confidence in continuity of geology and metal values,
quality, quantity and distribution of the data).
* Whether the result appropriately reflects the
Competent Person's view of the deposit.
--------------- ------------------------------------------------------------ ------------------------------------------------------------------
Audits
or reviews * The results of any audits or reviews of Mineral * The current resource estimate is the first to be
Resource estimates. published and has not been audited or reviewed yet.
--------------- ------------------------------------------------------------ ------------------------------------------------------------------
Discussion
of relative * Where appropriate a statement of the relative * In the view of the Competent Person the accuracy and
accuracy/ accuracy and confidence level in the Mineral Resource confidence in the THM grades and mineralogy are such
confidence estimate using an approach or procedure deemed that with further in-fill work, the final ore grade
appropriate by the Competent Person. For example, the and mineral characteristics are unlikely to vary from
application of statistical or geostatistical the current Inferred Resource estimate by more than
procedures to quantify the relative accuracy of the 30%. There is scope to extend the boundaries of the
resource within stated confidence limits, or, if such resource outwards and downwards in some places with
an approach is not deemed appropriate, a qualitative further drilling, and it is likely that more
discussion of the factors that could affect the high-grade zones will emerge from further infill
relative accuracy and confidence of the estimate. drilling.
* The statement should specify whether it relates to * At the time of writing, the mineral prices used in
global or local estimates, and, if local, state the the modelling are approximately equal to the current
relevant tonnages, which should be relevant to market price. In the view of the Competent Person,
technical and economic evaluation. Documentation the assumed mineral prices are slightly conservative
should include assumptions made and the procedures long-term mineral prices.
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 company news service from the London Stock Exchange
END
MSCFMGZFRNMGNZG
(END) Dow Jones Newswires
March 27, 2017 04:39 ET (08:39 GMT)
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