TIDMGFM
RNS Number : 4902P
Griffin Mining Ld
18 February 2021
New Total Global Mineral Resource Statement
50% Increase in Mineral Resource at Caijiaying Zinc-Gold Mine
to
101.5 million tonnes
US$17.7 Billion Metal in Situ [1]
18(th) February 2021
Griffin Mining Limited ("Griffin" or the "Company") is pleased
to announce the new Global Mineral Resource estimate for its
Caijiaying Zinc-Gold Mine in the People's Republic of China . The
new Global Mineral Resources from the 4 main deposit "Zones",
reported in accordance with the JORC Code (2012), total:
-- 101.5 million tonne Global Mineral Resource (from 67.7 million tonnes 2 )
-- 4.0 million tonnes of Zinc Metal (from 2.7 million tonnes 2 )
-- 1.6 million ounces of Gold (from 1.0 million ounces 2 )
-- 88.8 million ounces of Silver (from 48.5 million ounces 2 )
-- 0.6 million tonnes of Lead (from 0.2 million tonnes 2 )
The global Measured, Indicated and Inferred Mineral Resource
estimate totals 101.5 Mt at 3.9% Zn, 0.6% Pb, 27.0 g/t Ag and 0.5
g/t Au, resulting in total contained metal of approximately 4.0
million tonnes of zinc metal, 0.6 million tonnes of lead metal,
88.8 million ounces of silver metal and 1.59 million ounces of gold
metal.
This is an increase of 33.9 Mt (50%) from the previous mineral
resource, which incorporated Zone II and III only, of 67.6Mt @ 3.9%
Zn, 0.4% Pb, 22.3g/t Ag and 0.5 g/t Au, as reported on 16(th) June
2020 in Griffin's 2019 annual report and accounts.
The contained metal has increased from approximately 2.653 to
3.968 million tonnes of zinc metal, 0.242 to 0.606 million tonnes
of lead, 48.5 to 88.8 million ounces of silver and 1.025 to 1.593
million ounces of gold.
The Mineral Resources at Caijiaying are distributed among four
"Zones" with the main line of lodes stretching 3km in strike. Zones
II, III and VIII are all accessible from the existing mine
infrastructure while Zone V is located just 0.8km west of Zone II.
As previously announced by the Company on the 4(th) January 2021, t
he Zone II and III Mineral Resources are located within a single
newly expanded Mining Licence where the current underground mining
activity is focused on the Zone III resources. This recent resource
increase has now triggered a development programme to be commenced
to enable increased production to 1.5 Mt per annum, delivering an
80% production increase in the next two years.
In the future , an additional mine expansion may be delivered
with the inclusion of the Zone V and VIII Mineral Resources that
are located within the Company's Retention Licence adjacent to the
west of Zone II and north of Zone III, respectively. The Retention
Licence is valid for two years and is the first step in the process
of converting the area to a Mining Licence.
The strategy of focusing on near-mine exploration and resource
definition drilling has delivered substantial growth to the
Caijiaying Mineral Resources. At Zone VIII, surface drilling has
defined the northern extension to Zone III a further 500m along
strike where it remains open at depth. The Zone V Mineral Resource
is the result of detailed research into the historical data set.
This significant body of work has enabled the Inferred Mineral
Resource estimate to JORC 2012 compliance. Further work is planned
to unlock the full potential of these maiden resources.
Further information in relation to the Mineral Resource estimate
is set out in the appendix to this announcement, and is also
available on the Company's website, www.griffinmining.com
Chairman Mladen Ninkov said "Finally, the vast potential of
Caijiaying has been uncovered and confirms the absolute world class
nature of the deposit. I am so delighted for the shareholders,
directors and staff of Griffin, and in particular, our great friend
and recently departed director Rupert Crowe, who believed in, and
toiled so passionately for, Caijiaying. Yet we are still only in
the earliest of stages of our journey of understanding what still
could lie around us and below us. Remarkable!"
COMPETENT PERSON STATEMENT
The information in this announcement that relates to Mineral
Resources is based on, and fairly reflects, information compiled by
Mr Serikjan Urbisinov a Competent Person, who is a Member of the
Australian Institute of Geoscientists. Mr Serikjan Urbisinov is a
full-time employee of CSA Global Pty Ltd. Mr Serikjan Urbisinov has
sufficient experience relevant to the style of mineralisation and
type of deposit under consideration and to the activity which he is
undertaking to qualify as Competent Person as defined in the 2012
edition of the Australasian Code for the Reporting of Exploration
Results, Mineral Resources and Ore Reserves (JORC Code). Mr
Serikjan Urbisinov consents to the disclosure of the information in
this announcement of the matters based on his information in the
form and context in which it appears.
[1] The insitu metal value is the result of the Company's
assessment based on LME spot metal prices at 16/02/2021 and does
not consider modifying factors such as the cost of metal extraction
and recovery.
2 The relative increase in resources compares the current Global
Mineral Resource to the total Zone II and Zone III Mineral Resource
as at 31(st) December 2019.
Further information
GRIFFIN MINING LIMITED
Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7772
Roger Goodwin - Finance Director
PANMURE GORDON (UK) LIMITED Telephone: +44 (0)20 7886 2500
John Prior
Joanna Langley
BERENBERG Telephone: +44(0)20 3207 7800
Matthew Armitt
Jennifer Wyllie
Deltir Elezi
BLYTHEWEIGH
Tim Blythe Telephone: +44(0)20 7138 3205
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No. 596/2014
Griffin Mining Limited's shares are quoted on the Alternative
Investment Market (AIM) of the London Stock Exchange (symbol
GFM).
The Company's news releases are available on the Company's web
site: www.griffinmining.com
Appendix A
Caijiaying Global Mineral Resource Statement and Parameters
CSA Global Pty Ltd ("CSA Global") was engaged by Griffin Mining
Ltd ("Griffin") to prepare a Global Mineral Resource estimate for
the Caijiaying zinc, gold, silver and lead deposit ("Caijiaying"),
located in Hebei Province, People's Republic of China.
The Global Mineral Resource estimate has been reported in
accordance with The JORC Code [1] and is shown in Table 1 .
The Mineral Resource for Zone II and Zone III have been depleted
using a three-dimensional survey "as built" wireframe which
represents the mined-out-voids as at 31(st) December 2020. The
resources at Zone V and VIII are maiden Mineral Resource estimates
and therefore have not been reported previously.
The Mineral Resource estimate includes 2.8 Mt of oxidised
resource that may require modifications to the processing circuit
to enable satisfactory recoveries.
Table 1 : Mineral Resource estimate for Caijiaying deposit
February 2021 - reported by Zones.
Category Tonnage Zn Zn Pb Pb Au Au Ag Ag
Mt % Metal (kt) % Metal (kt) ppm Metal (koz) ppm Metal (koz)
Zone II Oxide: Zn Resources > 1% Zn
Indicated 1.2 2.9 35.0 0.5 5.9 0.30 10.5 19 751
Inferred 1.6 2.5 38.8 0.5 8.0 0.10 6.7 17 830
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
Total 2.8 2.7 73.8 0.5 13.9 0.20 17.2 18 1,581
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
Zone II Fresh: Zn Resources > 1% Zn
Indicated 11.5 3.8 435.9 0.9 109.2 0.30 96.1 27 10,085
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
Inferred 26.4 3.7 976.7 1.0 253.2 0.40 349.6 30 25,108
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
Total 37.9 3.7 1,412.6 1.0 362.4 0.40 445.7 29 35,193
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
Zone II Total
Indicated 12.7 3.7 470.9 0.9 115.0 0.30 106.6 27 10,836
Inferred 27.9 3.6 1,012.5 1.0 261.2 0.40 356.2 29 25,938
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
Total 40.7 3.7 1,486.4 0.9 376.3 0.40 462.9 28 36,774
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
Zone III Domain 1: Zn Resources > 1% Zn
Measured 19.0 4.5 861.6 0.2 42.5 0.64 388.8 23 13,932
Indicated 10.0 4.0 396.8 0.2 17.0 0.57 182.8 18 5,781
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
Inferred 17.9 4.0 718.4 0.2 35.8 0.36 209.6 22 12,364
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
Total 46.8 4.2 1,976.7 0.2 95.2 0.52 781.2 21 32,077
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
Zone III Domain 2: Au Resources > 0.5 g/t Au
Inferred 0.7 0.8 5.9 0.1 0.7 3.00 67.5 20 446
Total 0.7 0.8 5.9 0.1 0.7 3.00 67.5 20 446
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
Zone III Total
Measured 19.0 4.5 861.6 0.2 42.5 0.64 388.8 23 13,932
Indicated 10.0 4.0 396.8 0.2 17.0 0.57 182.8 18 5,781
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
Inferred 18.6 3.9 724.3 0.2 36.5 0.46 277.1 21 12,810
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
Total 47.5 4.2 1,982.6 0.20 95.9 0.56 848.7 21 32,523
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
Zone V Zn Resources > 1% Zn
Inferred 6.0 3.2 190.7 1.4 84.3 0.60 115.8 56 10,819
Total 6.0 3.2 190.7 1.4 84.3 0.60 115.83 56 10,819
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
Zone VIII Domain 1: Zn Resources > 1% Zn
Inferred 6.6 4.6 303.8 0.7 45.0 0.50 112.0 36 7,675
Total 6.6 4.6 303.8 0.7 45.0 0.50 112.00 36 7,675
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
Zone VIII Domain 2: Au Resources > 0.5 g/t Au
Inferred 0.7 0.7 4.7 0.7 4.7 2.40 54.0 45 1,015
Total 0.7 0.7 4.7 0.7 4.7 2.40 54.00 45 1,015
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
Zone VIII Total
Inferred 7.3 4.2 308.5 0.7 49.7 0.70 166.0 37 8,690
Total 7.3 4.2 308.5 0.7 49.7 0.70 166.00 37 8,690
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
Total
Measured 19.0 4.5 861.6 0.2 42.5 0.64 388.8 23 13,932
Indicated 22.7 3.8 867.7 0.6 132.0 0.42 289.4 23 16,617
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
Inferred 59.8 3.7 2,239.0 0.8 431.7 0.48 915.2 30 58,258
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
Total 101.5 3.9 3,968.3 0.6 606.2 0.51 1,593.4 27 88,806
-------- ---- ------------ ----- ------------ ----- ------------- ----- -------------
[1] Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves. The JORC Code, 2012 Edition.
Prepared by: The Joint Ore Reserves Committee of The Australasian
Institute of Mining and Metallurgy, Australian Institute of
Geoscientists and Minerals Council of Australia (JORC).
Figure 1 : Plan showing mineralisation wireframes by zones.
Zone II
The previous Mineral Resource estimate first reported in 2013 is
shown in Table 2 . As previously announced (See Company
Announcement "Zone II Resource January 2021" dated 26(th) January
2021) t he tonnage for the new updated Zone II Mineral Resource has
increased by over 100% and the contained zinc metal has increased
by over 130%. A total of 109 surface diamond drillholes, 91 reverse
circulation surface drillholes and 163 underground diamond
drillholes, define the Zone II deposit for a combined total of
91,383 m of drilling. The Zone II deposit was sampled predominantly
by diamond drillholes at irregular spacing, but average spacings
are approximately 40 m x 40 m. There is already some underground
access from the existing Zone III Decline via the 1453 development
drive and there has been no stoping of the material defined in the
Zone II Mineral Resource estimate.
Zone III
The previous Zone III Mineral Resource estimate shown in Table 3
is based on a block model completed in 2018, which has then been
depleted for mining production as at December 31(st) , 2019.
A total of 192 surface diamond drillholes, 34 reverse
circulation surface drillholes and 3,683 underground diamond
drillholes, define the Zone III deposit for a combined total of
499,029 m of drilling. The Zone III deposit which is currently in
production was sampled predominantly by diamond drillholes at
irregular spacing, with a clustering in the main part of the mine,
but average spacings are approximately 40 m x 40 m. Holes were
generally aligned either to the east or west with dip angles set to
optimally intersect the mineralised horizon.
Zone V
A total of 34 surface diamond drillholes, 3 reverse circulation
surface drillholes define the Zone V deposit for a combined total
of 15,242 m of drilling. The Zone V deposit was sampled by diamond
drillholes at irregular spacing, but average spacings are
approximately 25 m x 100 m.
Zone VIII
A total of 44 diamond drillholes define the Zone VIII deposit
for a combined total of 32,193 m of drilling. Drilling was carried
out as close as possible to right angles to the mineralisation.
Drill spacing was 50 m to 100 m, to cover the limits of
mineralisation in a systematic pattern.
Table 2 : Caijiaying Zone II Mineral Resource estimates as at June 2013
Caijiaying Zone II Remaining Mineral Resources June 2013 (grade tonnage reported above a cut-off
grade of 1.0% Zn)
----------------------------------------------------------------------------------------------------------------------
Zone JORC Tonnes Zn (%) Pb (%) Ag Au (g/t) Zn Pb Ag Au
Classification (Mt) (g/t) Metal Metal Metal Metal (koz)
(kt) (kt) (koz)
------ ---------------- -------- ------- ------- -------- --------- -------- -------- -------- -------------
Indicated 4.06 3 0.7 25 0.30 123.0 27.0 3,243 39.3
----------------------- -------- ------- ------- -------- --------- -------- -------- -------- -------------
Inferred 15.57 3.3 0.8 25 0.30 516.0 117.0 12,277 124.2
----------------------- -------- ------- ------- -------- --------- -------- -------- -------- -------------
Subtotal 19.63 3.3 0.7 25 0.30 638.0 144.0 15,520 163.5
----------------------- -------- ------- ------- -------- --------- -------- -------- -------- -------------
Table 3 : Mineral Resource estimate for Zone III at December
31(st) 2019 at 1% Zn cut-off grade
Depth Classification Tonnage Zn Zn Pb Pb Au Au Ag Ag
(Mt) % metal (kt) % metal (kt) ppm metal ppm metal
(koz) (koz)
---------------- ---------- ----- ----------- ------ ----------- ------ ---------- ----- -----------
Domain 1: Zn Resources >1% Zn
----------------------------------------------------------------------------------------------------------------------
Total Measured 19.4 4.6 887 0.2 43 0.7 397 23 14,291
-------
Indicated 10.0 4.0 400 0.2 17 0.6 186 18 5,843
Inferred 17.9 4.0 722 0.2 36 0.4 211 22 12,423
------------------------ ---------- ----- ----------- ------ ----------- ------ ---------- ----- -----------
Total 47.4 4.2 2,009 0.22 97 0.5 794 21 32,556
------------------------ ---------- ----- ----------- ------ ----------- ------ ---------- ----- -----------
Domain 2: Au Resources >0.5 g/t Au
----------------------------------------------------------------------------------------------------------------------
Total Inferred 0.7 0.7 6 0.10 1 3.0 67 20 446
------- ---------------- ---------- ----- ----------- ------ ----------- ------ ---------- ----- -----------
Total 0.7 0.7 6 0.10 1 3.0 67 20 446
------------------------ ---------- ----- ----------- ------ ----------- ------ ---------- ----- -----------
TOTAL
----------------------------------------------------------------------------------------------------------------------
TOTAL Measured 19.4 4.5 887 0.22 43 0.64 397 23 14,291
-------
Indicated 10.0 4.0 400 0.17 17 0.57 186 18 5,843
Inferred 18.6 3.9 728 0.20 37 0.46 278 21 12,423
------------------------ ---------- ----- ----------- ------ ----------- ------ ---------- ----- -----------
TOTAL 48.0 4.2 2,015 0.20 97 0.56 861 21 32,557
------------------------ ---------- ----- ----------- ------ ----------- ------ ---------- ----- -----------
Glossary of key terms
CSA Global CSA Global Pty Ltd. A private consulting firm
providing technical and management services to the global mining
industry.
cut-off The lowest grade, or quality, of mineralised material
that qualifies as economically mineable and available in a given
deposit. May be defined on the basis of economic evaluation, or on
physical or chemical attributes that define an acceptable product
specification.
deposit Natural accumulations of minerals in the earth crust, in
form of one or several mineral bodies which can be extracted at the
present time or in an immediate future.
diamond drill hole Method of obtaining cylindrical core of rock
by drilling with a diamond-set or diamond-impregnated bit.
g/t Grams per tonne - a unit of measurement used to express the
concentration of an element within a mass of another (same as parts
per million).
Indicated Mineral Resources That part of a Mineral Resource for
which quantity, grade (or quality), densities, shape and physical
characteristics are estimated with sufficient confidence to allow
the application of Modifying Factors in sufficient detail to
support mine planning and evaluation of the economic viability of
the deposit.
Inferred Mineral Resources That part of a Mineral Resource for
which quantity and grade (or quality) are estimated on the basis of
limited geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade (or
quality) continuity. It is based on exploration, sampling and
testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill
holes.
JORC An acronym for Joint Ore Reserves Committee. by The
Australasian Institute of Mining and Metallurgy (The AusIMM) and
the Australian Institute of Geoscientists (AIG) and is binding on
members of those organisations. The Code is endorsed by the
Minerals Council of Australia and the Financial Services Institute
of Australasia as a contribution to good practice. The Code has
also been adopted by and included in the listing rules of the
Australian Securities Exchange (ASX) and the New Zealand Stock
Exchange (NZX)., the purpose of which is to set the regulatory
enforceable standards or a Code of Practice for the public
reporting of Exploration Results, Mineral Resources and Ore
Reserves.
Measured Mineral Resources That part of a Mineral Resource for
which quantity, grade (or quality), densities, shape, and physical
characteristics are estimated with confidence sufficient to allow
the application of Modifying Factors to support detailed mine
planning and final evaluation of the economic viability of the
deposit. Mineral Resources A concentration or occurrence of solid
material of economic interest in or on the Earth's crust in such
form, grade (or quality), and quantity that there are reasonable
prospects for eventual economic extraction. The location, quantity,
grade (or quality), continuity and other geological characteristics
of a Mineral Resource are known, estimated or interpreted from
specific geological evidence and knowledge, including sampling.
Mineral Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated and Measured
categories
JORC Code, 2012 Edition - Table 1
Section 1: Sampling Techniques and Data
Criteria JORC Code explanation Commentary
--------------------------------------- -----------------------------------------------
Sampling Nature and quality of sampling The sample database is made up
techniques (e.g. cut channels, random of surface diamond drilling, underground
chips, or specific specialised diamond drilling and surface reverse
industry standard measurement circulation (RC) drilling.
tools appropriate to the minerals
under investigation, such
as downhole gamma sondes,
or handheld XRF instruments,
etc). These examples should
not be taken as limiting the
broad meaning of sampling.
----------------- --------------------------------------- -----------------------------------------------
Include reference to measures Diamond core was cut in half using
taken to ensure sample representivity a diamond saw, with the cut line
and the appropriate calibration determined by the mineralisation
of any measurement tools or angles. RC samples were split
systems used. through a riffle splitter.
----------------- --------------------------------------- -----------------------------------------------
Aspects of the determination Diamond holes were sampled after
of mineralisation that are standard logging and photography.
Material to the Public Report. Sampling intervals were 0.5-1.5
In cases where 'industry standard' m with 1.0 m being the most common
work has been done this would interval. RC drilling was used
be relatively simple (e.g. to obtain 1 m samples from which
'reverse circulation drilling 3 kg was pulverised to produce
was used to obtain 1 m samples a 50 g charge for fire assay and
from which 3 kg was pulverised a 20 g charge for base metal assay.
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 (e.g.
submarine nodules) may warrant
disclosure of detailed information.
----------------- --------------------------------------- -----------------------------------------------
Drilling Drill type (e.g. core, reverse Drilling was completed using a
techniques circulation, open-hole hammer, face sampling hammer or NQ2/BQ
rotary air blast, auger, Bangka, size diamond core. All holes were
sonic, etc.) and details (e.g. surveyed upon completion of drilling
core diameter, triple or standard using single/multi-shot electronic
tube, depth of diamond tails, or mechanical survey cameras.
face-sampling bit or other
type, whether core is oriented
and if so, by what method,
etc.).
----------------- --------------------------------------- -----------------------------------------------
Drill sample Method of recording and assessing Core recovery is measured for
recovery core and chip sample recoveries diamond core by measuring the
and results assessed. length of core for each core run.
This is recorded in a table called
GEOTECH. There is no recovery
recorded for RC holes, but these
constitute only 50 holes within
the Mineral Resource and have
been mainly used to provide information
about the depth of overburden.
----------------- --------------------------------------- -----------------------------------------------
Measures taken to maximise Diamond coring is carried out
sample recovery and ensure using equipment in good working
representative nature of the order to ensure no loss of core.
samples. Core loss during drilling is noted
on a core block placed into the
core tray, and then discussed
with the geologist. Core loss
is generally rare and related
to fault zones away from the mineralisation.
RC sample recovery was maximised
by using a modern rig with sufficient
air to keep the hole dry.
----------------- --------------------------------------- -----------------------------------------------
Relationship between sample This analysis was not carried
recovery and grade/sample out because core recovery has
bias. generally been high through the
mineralised zones.
----------------- --------------------------------------- -----------------------------------------------
Logging Whether core and chip samples All RC samples were geologically
have been geologically and logged to record weathering, regolith,
geotechnically logged to a rock type, colour, alteration,
level of detail to support mineralisation, structure and
appropriate Mineral Resource texture and any other notable
estimation, mining studies features that are present. All
and metallurgical studies. diamond core was logged for structure,
and geologically logged using
the same system as that for RC.
The logging information was recorded
into Microsoft (MS) Excel format
on paper and then transferred
into the company's drilling database
once the log was complete. Since
2017 core logging has been directly
into MS Excel sheets on laptop
computers.
----------------- --------------------------------------- -----------------------------------------------
Whether logging is qualitative Logging was qualitative; however,
or quantitative in nature. the geologists also record visual
Core (or costean, channel, quantitative mineral percentage
etc) photography. ranges for the sulphide minerals
present.
Diamond core was photographed
wet one core tray at a time using
a standardised photography jig.
Samples from RC holes were archived
in standard 20 m plastic chip
trays.
----------------- --------------------------------------- -----------------------------------------------
The total length and percentage All holes and intersections have
of the relevant intersections been logged.
logged.
----------------- --------------------------------------- -----------------------------------------------
Subsampling If core, whether cut or sawn Core samples were taken from half
techniques and whether quarter, half core, cut using a diamond core
and sample or all core taken. saw. The remainder of the core
preparation was retained in core trays tagged
with a hole number and metre mark.
Since 2016 small diameter (BQ)
underground holes have been whole
core sampled, to remove the need
for core cutting and to increase
the sample weight.
----------------- --------------------------------------- -----------------------------------------------
If non-core, whether riffled, RC samples were cone split to
tube sampled, rotary split, a nominal 2.5 kg to 3 kg sample
etc and whether sampled wet weight. The drilling method was
or dry. designed to maximise sample recovery
and delivery of a clean, representative
sample into the calico bag.
Where possible all RC samples
were drilled dry to maximise recovery.
The use of a booster and auxiliary
compressor provide dry sample
for depths below the water table.
Sample condition was recorded
(wet, dry or damp) at the time
of sampling and recorded in the
database.
Samples were collected in a pre-numbered
calico bag bearing a unique sample
ID. Samples were crushed to 75
um at the laboratory and riffle
split (if required) to a maximum
3 kg sample weight. Gold analysis
was determined by a 50 g fire
assay with an inductively coupled
plasma-optical emission spectrometry
(ICP-OES) or atomic absorption
spectroscopy (AAS) finish.
----------------- --------------------------------------- -----------------------------------------------
For all sample types, the The assay laboratories' sample
nature, quality and appropriateness preparation procedures follow
of the sample preparation industry best practice, with techniques
technique and practices that are appropriate
for this style of mineralisation.
Pulp duplicates were taken at
the pulverising stage and selective
repeats conducted at the laboratories'
discretion.
--------------------------------------- -----------------------------------------------
Quality control procedures Cut lines are marked on diamond
adopted for all subsampling drill core to ensure that the
stages to maximise representivity core to minimise bias when cutting.
of samples. The RC drilling was carried out
several years ago, and no documentation
remains on QAQC of subsampling.
RC samples are not material to
this Mineral Resource estimate
(MRE).
--------------------------------------- -----------------------------------------------
Measures taken to ensure that Hua Ao inserts approximately three
the sampling is representative standards and three blanks for
of the in-situ material collected, every 100 samples. Field duplicates
including for instance results were collected from the cone splitter
for field duplicate/second-half on the rig for RC samples at a
sampling. frequency of one duplicate every
20 samples, excluding the 100(th)
sample as this was a standard.
Diamond core duplicates were not
taken during this drilling program.
Regular reviews of the sampling
were carried out by the supervising
geologist and senior field staff,
to ensure all procedures were
followed and best industry practice
carried out.
--------------------------------------- -----------------------------------------------
Whether sample sizes are appropriate The sample sizes were appropriate
to the grain size of the material for the type, style and consistency
being sampled. of mineralisation encountered
during this phase of exploration.
----------------- --------------------------------------- -----------------------------------------------
Quality The nature, quality and appropriateness The assay method and laboratory
of assay of the assaying and laboratory procedures were appropriate for
data and procedures used and whether this style of mineralisation.
laboratory the technique is considered The fire assay technique was designed
tests partial or total. to measure total gold in the sample.
----------------- --------------------------------------- -----------------------------------------------
For geophysical tools, spectrometers, No geophysical tools, spectrometers
handheld XRF instruments, were used. Handheld x-ray fluorescence
etc, the parameters used in (XRF) instruments are used; however,
determining the analysis including the values were only used to support
instrument make and model, geological modelling of the lithology.
reading times, calibrations The values were not used for grade
factors applied and their estimation.
derivation, etc.
----------------- --------------------------------------- -----------------------------------------------
Nature of quality control The QAQC process described above
procedures adopted and whether was sufficient to establish acceptable
acceptable levels of accuracy levels of accuracy and precision.
(i.e. lack of bias) and precision All results from assay standards
have been established. and duplicates were scrutinised
to ensure they fell within acceptable
tolerances.
----------------- --------------------------------------- -----------------------------------------------
Verification The verification of significant Primary data is sent in digital
of sampling intersections by either independent format to the company's Database
and assaying or alternative company personnel. Administrator (DBA) as often as
was practicable. The DBA imports
the data into a GeoBank (MS SQL)
database, with assay results merged
into the database upon receipt
from the laboratory. Once loaded,
data was extracted for verification
by the geologist in charge of
the project.
----------------- --------------------------------------- -----------------------------------------------
The use of twinned holes. Twinned holes have not been drilled
at Caijiaying because the MRE
is predominantly based on diamond
drillholes with demonstrated good
recovery through the ore zones.
Several years of production give
confidence to the geometry and
persistence of mineralisation.
----------------- --------------------------------------- -----------------------------------------------
Documentation of primary data, All primary data is collected
data entry procedures, data on paper logs, which are filed
verification, data storage and stored. Procedures are documented
(physical and electronic) for data recording and entry.
protocols. Data from paper logs is transferred
to MS Excel files and then imported
into GeoBank drillhole database.
A back up of the database is maintained
in CSA Global's Perth office.
Since 2017, logging has been directly
into MS Excel tables on a laptop.
These files are transferred to
a server. The server has a backup
system.
--------------------------------------- -----------------------------------------------
Discuss any adjustment to No adjustments were made to any
assay data. current or historical data. If
data could not be validated to
a reasonable level of certainty
it was not used in any resource
estimations.
----------------- --------------------------------------- -----------------------------------------------
Location Accuracy and quality of surveys Surface RC drill collars were
of data used to locate drillholes surveyed after completion, using
points (collar and downhole surveys), a differential global positioning
trenches, mine workings and system (GPS) instrument. Downhole
other locations used in Mineral RC surveys were completed using
Resource estimation. a mechanical single-shot survey
camera. Underground holes were
surveyed by mine surveyors using
a total station theodolite. Downhole
surveys were completed using single/multi-shot
electronic survey instruments
or single-shot survey camera.
Downhole surveys are recorded
relative to magnetic north. Corrections
are made, depending on the year
of survey, for magnetic declination,
to give azimuths in terms of the
Hua Ao mine grid system.
----------------- --------------------------------------- -----------------------------------------------
Specification of the grid All coordinates and bearings use
system used. the Hua Ao mine grid system.
----------------- --------------------------------------- -----------------------------------------------
Quality and adequacy of topographic The quality of the topographic
control. control is considered to be sufficient.
The mine is in operation and has
a site-based survey department.
Their work is of good quality,
supported by development breakthroughs
occurring as expected; being able
to connect two drives being developed
towards each other and so on.
----------------- --------------------------------------- -----------------------------------------------
Data spacing Data spacing for reporting The data spacing is irregular,
and distribution of Exploration Results. with a clustering in the main
part of the mine, but average
spacings are approximately 40
m x 40 m.
----------------- --------------------------------------- -----------------------------------------------
Whether the data spacing and The Competent Persons believe
distribution is sufficient the mineralised domains have sufficient
to establish the degree of geological and grade continuity
geological and grade continuity to support the classification
appropriate for the Mineral applied to the Mineral Resource
Resource and Ore Reserve estimation given the current drill pattern.
procedure(s) and classifications Mineral Resource estimation procedures
applied. are also considered appropriate
give the quantity of data available
and style of mineralisation under
consideration.
----------------- --------------------------------------- -----------------------------------------------
Sample compositing Sample composites have not been
used.
----------------- --------------------------------------- -----------------------------------------------
Orientation Whether the orientation of Drilling was designed based on
of data sampling achieves unbiased known geological models, field
in relation sampling of possible structures mapping, verified historical data
to geological and the extent to which this and cross-sectional interpretation.
structure is known, considering the Drillholes oriented at right angles
deposit type. to strike of deposit, with dip
optimised for drill capabilities
and the dip of the orebody.
----------------- --------------------------------------- -----------------------------------------------
If the relationship between This is not considered to be a
the drilling orientation and material factor because of the
the orientation of key mineralised style of mineralisation and the
structures is considered to use of underground drill fans
have introduced a sampling to intersect the mineralisation
bias, this should be assessed at various angles.
and reported if material.
----------------- --------------------------------------- -----------------------------------------------
Sample The measures taken to ensure All samples were reconciled against
Security sample security. the sample submission with any
omissions or variations reported
to back to the logging geologists.
All samples were bagged in a tied
numbered calico bag, grouped into
green plastic bags. The bags were
placed into cages with a sample
submission sheet and delivered
directly from site to the SGS
and Intertek laboratories in Beijing
and Tianjin by HHA personnel.
----------------- --------------------------------------- -----------------------------------------------
Audits The results of any audits An audit of the underground mining
or reviews or reviews of sampling techniques geology systems, including sampling,
and data. was carried out in 2018 by Aaron
Meakin of CSA Global. This included
work on ideal sample spacing.
In general, this audit supported
current practice.
----------------- --------------------------------------- -----------------------------------------------
Section 2: Reporting of Exploration Results
Criteria JORC Code explanation Commentary
---------------------------------------------------------- ---------------------------------------
Mineral Type, reference name/number, All exploration was conducted
tenement location and ownership including on tenements 100% owned by HHA
and land agreements or material issues Ao or its related companies.
tenure with third parties such as The leases are the Hua Ao Mining
status joint ventures, partnerships, Licence, the Hua Ao Exploration
overriding royalties, native Licence and the Sino-Anglo Exploration
title interests, historical Licence.
sites, wilderness or national The Zone II Mining Licence has
park and environmental settings. been granted See Company Announcement
"Issue of New Mining Licence"
dated 4th January 2021.
----------------- ---------------------------------------------------------- ---------------------------------------
The security of the tenure All tenements are in good standing.
held at the time of reporting
along with any known impediments
to obtaining a licence to
operate in the area.
----------------- ---------------------------------------------------------- ---------------------------------------
Exploration Acknowledgment and appraisal All exploration has been undertaken
done by of exploration by other parties. by Hua Ao or the Third Geological
other parties Brigade of Hebei who now form
part of the Hua Ao Joint Venture.
----------------- ---------------------------------------------------------- ---------------------------------------
Geology Deposit type, geological setting Mineralisation at Caijiaying
and style of mineralisation. is believed to be related to
a Jurassic igneous event that
affected the 2.3 billion-year-old
metamorphic basement rocks. Base
metal and gold mineralisation
associated with Jurassic intrusives
have replaced favourable horizons
in the metamorphic rocks, most
notably calcsilicates and marble.
Porphyry sills and dykes intruding
along faults have then cut across
the sequence.
----------------- ---------------------------------------------------------- ---------------------------------------
Drillhole A summary of all information Exploration results are not being
information material to the understanding reported.
of the exploration results
including a tabulation of
the following information
for all Material drillholes:
* easting and northing of the drillhole collar
* elevation or RL (Reduced Level - elevation above sea
level in metres) of the drillhole collar
* dip and azimuth of the hole
* downhole length and interception depth
* hole length.
----------------- ---------------------------------------------------------- ---------------------------------------
If the exclusion of this information Exploration results are not being
is justified on the basis reported.
that the information is not
Material and this exclusion
does not detract from the
understanding of the report,
the Competent Person should
clearly explain why this is
the case.
----------------- ---------------------------------------------------------- ---------------------------------------
Data aggregation In reporting Exploration Results, Exploration results are not being
methods weighting averaging techniques, reported.
maximum and/or minimum grade
truncations (e.g. cutting
of high grades) and cut-off
grades are usually Material
and should be stated.
----------------- ---------------------------------------------------------- ---------------------------------------
Where aggregate intercepts Exploration results are not being
incorporate short lengths reported.
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 Exploration results are not being
reporting of metal equivalent reported.
values should be clearly stated.
----------------- ---------------------------------------------------------- ---------------------------------------
Relationship These relationships are particularly Exploration results are not being
between important in the reporting reported.
mineralisation of Exploration Results.
widths
and intercept
lengths
----------------- ---------------------------------------------------------- ---------------------------------------
If the geometry of the mineralisation Holes were drilled orthogonal
with respect to the drillhole to mineralisation as much as
angle is known, its nature possible; however, the exact
should be reported. relationship between intercept
width and true width cannot be
estimated exactly in all cases.
----------------- ---------------------------------------------------------- ---------------------------------------
If it is not known and only Exploration results are not being
the downhole lengths are reported, reported.
there should be a clear statement
to this effect (e.g. 'downhole
length, true width not known').
----------------- ---------------------------------------------------------- ---------------------------------------
Diagrams Appropriate maps and sections Exploration results are not being
(with scales) and tabulations reported.
of intercepts should be included
for any significant discovery
being reported These should
include, but not be limited
to a plan view of drillhole
collar locations and appropriate
sectional views.
----------------- ---------------------------------------------------------- ---------------------------------------
Balanced Where comprehensive reporting Exploration results are not being
reporting of all Exploration Results reported.
is not practicable, representative
reporting of both low and
high grades and/or widths
should be practiced to avoid
misleading reporting of Exploration
Results.
----------------- ---------------------------------------------------------- ---------------------------------------
Other substantive Other exploration data, if No substantive exploration data
exploration meaningful and material, should not already mentioned in this
data be reported including (but table has been used in the preparation
not limited to): geological of this MRE.
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 The nature and scale of planned Further work will be focused
work further work (e.g. tests for on infilling mineralisation to
lateral extensions or depth upgrade to a higher Mineral Resource
extensions or large-scale classification and testing for
step-out drilling). dip extensions and strike extensions.
----------------- ---------------------------------------------------------- ---------------------------------------
Diagrams clearly highlighting Exploration results are not being
the areas of possible extensions, reported.
including the main geological
interpretations and future
drilling areas, provided this
information is not commercially
sensitive.
----------------- ---------------------------------------------------------- ---------------------------------------
Section 3: Estimation and Reporting of Mineral Resources
Criteria JORC Code explanation Commentary
--------------------------------------- ------------------------------------------------------------
Database Measures taken to ensure that Logging information was originally
integrity data has not been corrupted recorded on paper, then entered
by, for example, transcription into excel format and then sent
or keying errors, between to the company's DBA once the
its initial collection and log was complete. Since 2017,
its use for Mineral Resource logging has been on laptops directly
estimation purposes. into MS Excel tables.
Collar surveys were received electronically
from surveyors.
Downhole surveys (underground
holes only) were received electronically
from the drilling company with
surface drilling surveys being
entered first on paper then into
MS Excel format before loading
into the database.
Laboratory analysis results were
received electronically and loaded
straight into the database.
--------------- --------------------------------------- ------------------------------------------------------------
Data validation procedures The company's DBA imports all
used. electronic data received into
a GeoBank database with database
configuration support from CSA
Global consultants.
The Geobank database is a MS SQL
Server database, which is relational
and normalised. As a result of
normalisation, the following data
integrity categories exist:
* Entity integrity: No duplicate rows in a table,
eliminated redundancy and chance of error.
* Domain integrity: Enforces valid entries for a given
column by restricting the type, the format or a range
of values.
* Referential integrity: Rows cannot be deleted which
are used by other records.
* User-defined integrity: Logging rules and validation
codes set up by the company.
Data extracted from the database
was validated visually in Micromine
software and when using the data
any errors regarding incorrect
locations, missing collar information,
logging, sampling and downhole
survey data and overlapping intervals
are highlighted.
--------------- --------------------------------------- ------------------------------------------------------------
Site visits Comment on any site visits Aaron Meakin, a current CSA Global
undertaken by the Competent consultant, spent approximately
Person and the outcome of two weeks on site in 2018. In
those visits. this time, discussions were held
regarding the geological controls
to the mineralisation, and data
collection protocols were reviewed.
--------------- --------------------------------------- ------------------------------------------------------------
If no site visits have been Not applicable.
undertaken indicate why this
is the case.
--------------- --------------------------------------- ------------------------------------------------------------
Geological Confidence in (or conversely, There is a reasonable level of
interpretation the uncertainty of) the geological confidence in the geological interpretation
interpretation of the mineral of the mineralisation that is
deposit. traceable over numerous drillholes
and drill sections both for underground
and surface drilling.
--------------- --------------------------------------- ------------------------------------------------------------
Nature of the data used and Surface mapping of mineralised
of any assumptions made. outcrop, underground workings,
drillhole intercept logging, assay
results and detailed geological
logging have formed basis for
the geological interpretation.
--------------- --------------------------------------- ------------------------------------------------------------
The effect, if any, of alternative Geological continuity is implied
interpretations on Mineral between drillholes and conforms
Resource estimation. well to the anticipated geological
model based on the interpretation
of regional and local geology,
and its association with mineralisation.
The data does not readily offer
alternative interpretations. In
places, the precise limits and
geometry cannot be absolutely
defined due to the limitations
of the current drill coverage
and the structural complexity.
Further work is required to better
define the geometry and limits
of the mineralised zones, but
no significant downside changes
to the interpreted mineralised
volume are anticipated.
--------------------------------------- ------------------------------------------------------------
The use of geology in guiding The grade and lithological interpretation
and controlling Mineral Resource form the basis for the modelling.
estimation. Lithological envelopes defining
the prospective mineralisation
within which the grade estimation
have been completed.
--------------------------------------- ------------------------------------------------------------
The factors affecting continuity The mineralisation is hosted within
both of grade and geology. the Proterozoic basement rock.
Chang et al. (2009) described
the mineralisation, which is dominated
by zinc, in detail and categorised
three distinct styles: breccias,
skarns, and banded mineralisation.
Brecciated zones are composed
of angular clasts of sericite,
chlorite, siderite and pyrite
altered basement rock, and yields
the most common style of mineralisation.
Skarns are typically massive,
associated with retrograde alteration,
and characterised by replacement
skarn mineralogies such as quartz,
siderite, calcite, other carbonates,
chlorite and sometimes sphalerite.
Banded ore is present only in
minor amounts and considered the
result of uninhibited mineral
growth inside previously leached
and dissolved carbonate zones.
--------------- --------------------------------------- ------------------------------------------------------------
Dimensions The extent and variability Zone II
of the Mineral Resource expressed The Mineral Resource has a strike
as length (along strike or length of 1,300 m, a width of
otherwise), plan width, and 800 m and extends from 10 m below
depth below surface to the surface to 700 m below surface.
upper and lower limits of Zone III
the Mineral Resource. The Mineral Resource has a strike
length of 1,200 m, a width of
650 m and extends from 30 m below
surface to 700 m below surface.
Zone V
The Mineral Resource has a strike
length of 630 m, a width of 800
m and extends to 700 m below surface.
Zone VIII
The Mineral Resource has a strike
length of 530 m, a width of 450
m and extends from 220 m below
surface to 780 m below surface.
--------------- --------------------------------------- ------------------------------------------------------------
Estimation The nature and appropriateness Grade estimation was carried out
and modelling of the estimation technique(s) using the geostatistical method
techniques applied and key assumptions, of ordinary kriging. The methods
including treatment of extreme use estimation parameters defined
grade values, domaining, interpolation by variography. The 1 m composite
parameters and maximum distance top-cut dataset was used for the
of extrapolation from data grade interpolation. Estimation
points. If a computer assisted of the resource was competed using
estimation method was chosen Micromine. The mineralisation
include a description of computer domains, resource category and
software and parameters used. porphyry dykes were coded to the
block model. Density data was
also imported into Micromine software
and was also applied using a regression
formula relating to the zinc grade.
--------------- --------------------------------------- ------------------------------------------------------------
The availability of check CSA Global carried out an MRE
estimates, previous estimates for Griffin Mining in 2013. There
and/or mine production records is a good comparison between the
and whether the Mineral Resource 2013 estimate and the 2018 estimate,
estimate takes appropriate as expected with the same methodology
account of such data. applied being used with addition
of new drillholes.
--------------- --------------------------------------- ------------------------------------------------------------
The assumptions made regarding The processing plant currently
recovery of by-products. produces a zinc and a lead concentrate.
Credits are paid for gold and
silver in the lead concentrate.
The MRE includes gold, silver
and lead.
--------------------------------------- ------------------------------------------------------------
Estimation of deleterious No potentially deleterious elements
elements or other non-grade have been considered. The processing
variables of economic significance plant is currently operating,
(e.g. sulphur for acid mine and no deleterious elements are
drainage characterisation). reported as causing concern.
--------------------------------------- ------------------------------------------------------------
In the case of block model A 3D block model was generated
interpolation, the block size to enable grade estimation. The
in relation to the average selected block size was based
sample spacing and the search on the geometry of the domain
employed. interpretation and the data configuration.
Zone II
A block model was created using
5.0 mE x 10.0 mN x 5.0 mRL parent
blocks. Sub-cells were generated
down to 1 mE x 2 mN x 1 mRL
Zone III
A block model was created using
5.0 mE x 5.0 mN x 5.0 mRL parent
blocks. Sub-cells were generated
down to 1 mE x 1 mN x 1 mRL
Zone V
A block model was created using
5.0 mE x 5.0 mN x 5.0 mRL parent
blocks. Sub-cells were generated
down to 1 mE x 1 mN x 1 mRL
Zone VIII
A block model was created using
5.0 m(E) x 25.0 m(N) x 25.0 m(RL)
parent blocks. Sub-cells were
generated down to 1 m(E) x 5 m(N)
x 5 m(RL)
--------------------------------------- ------------------------------------------------------------
Any assumptions behind modelling No selective mining units were
of selective mining units. assumed in this estimate.
--------------------------------------- ------------------------------------------------------------
Any assumptions about correlation No strong correlations were found
between variables. between the grade variables.
--------------------------------------- ------------------------------------------------------------
Description of how the geological The lower cut-off grades of 1.0%
interpretation was used to Zn for Zn domains and 0.5 g/t
control the resource estimates. Au for Au domains defined the
mineralised envelopes. Hard boundaries
between the grade envelopes were
used to select sample populations
for grade estimation.
--------------------------------------- ------------------------------------------------------------
Discussion of basis for using Top cuts were used to treat the
or not using grade cutting high-grade outliers of the domains.
or capping. Top cuts were based on review
of the domain histogram and log
probability plot.
--------------------------------------- ------------------------------------------------------------
The process of validation, Validation of the block model
the checking process used, consisted of comparison of the
the comparison of model data block model volume to the wireframe
to drill hole data, and use volume. Grade estimates were validated
of reconciliation data if by statistical comparison with
available. the drill data, visual comparison
of grade trends in the model with
the drill data trends. Additionally,
swath plots were generated to
verify block model grades vs drillhole
grades along easting, northing
and elevation slices.
--------------- --------------------------------------- ------------------------------------------------------------
Moisture Whether the tonnages are estimated Tonnages are estimated on a dry
on a dry basis or with natural basis.
moisture, and the method of
determination of the moisture
content.
--------------- --------------------------------------- ------------------------------------------------------------
Cut-off The basis of the adopted cut-off The Mineral Resource has been
parameters grade(s) or quality parameters reported above a 1% Zn cut-off
applied. grade and 0.5 g/t Au cut-off grade
for the gold domain.
--------------- --------------------------------------- ------------------------------------------------------------
Mining Assumptions made regarding Caijiaying is being mined by underground
factors possible mining methods, minimum methods.
or assumptions mining dimensions and internal
(or, if applicable, external)
mining dilution. It is always
necessary as part of the process
of determining reasonable
prospects for eventual economic
extraction to consider potential
mining methods, but the assumptions
made regarding mining methods
and parameters when estimating
Mineral Resources may not
always be rigorous. Where
this is the case, this should
be reported with an explanation
of the basis of the mining
assumptions made.
--------------- --------------------------------------- ------------------------------------------------------------
Metallurgical The basis for assumptions Caijiaying is being mined by underground
factors or predictions regarding metallurgical methods and processed in a conventional
or assumptions amenability. It is always flotation processing plant. It
necessary as part of the process currently produces zinc and lead
of determining reasonable concentrates that are sold to
prospects for eventual economic smelters. This demonstrates that
extraction to consider potential the ore can be treated.
metallurgical methods, but
the assumptions regarding
metallurgical treatment processes
and parameters made when reporting
Mineral Resources may not
always be rigorous. Where
this is the case, this should
be reported with an explanation
of the basis of the metallurgical
assumptions made.
--------------- --------------------------------------- ------------------------------------------------------------
Environmental Assumptions made regarding Zone III of the mine is in production
factors possible waste and process and has all environmental permits
or assumptions residue disposal options. in place. The Zone III mining
It is always necessary as licence extends down to 1000 mRL.
part of the process of determining There are processes in place in
reasonable prospects for eventual Chinese mining law to allow this
economic extraction to consider to be extended deeper.
the potential environmental
impacts of the mining and
processing operation. While
at this stage the determination
of potential environmental
impacts, particularly for
a greenfields project, may
not always be well advanced,
the status of early consideration
of these potential environmental
impacts should be reported.
Where these aspects have not
been considered this should
be reported with an explanation
of the environmental assumptions
made.
--------------- --------------------------------------- ------------------------------------------------------------
Bulk density Whether assumed or determined. Density measurements were conducted
If assumed, the basis for via the standard water immersion
the assumptions. If determined, technique. Data was only available
the method used, whether wet for early stage operations (drillholes
or dry, the frequency of the UGCJY-001 to UGCJY-827) and late
measurements, the nature, stage operations (drillholes UGCJY-1318
size and representativeness to UGCJY-2013). No density data
of the samples. was collected between drillholes
UGCJY-827 and UGCJY-1318, which
correlates with the period from
March 2007 to January 2010. A
regression formula was developed
to relate density to zinc grade,
and this has been applied for
Zone III.
--------------- --------------------------------------- ------------------------------------------------------------
The bulk density for bulk Some porosity can be expected;
material must have been measured however, the bulk density assigned
by methods that adequately is considered to be reasonable.
account for void spaces (vugs,
porosity, etc), moisture and
differences between rock and
alteration zones within the
deposit.
--------------- --------------------------------------- ------------------------------------------------------------
Discuss assumptions for bulk Bulk densities were based on 31,312
density estimates used in density measurements taken on
the evaluation process of drill core using standard water
the different materials. immersion methods. These included
samples of mineralised and un-mineralised
material and were primarily collected
from Zones II and III.
Density data was used to develop
a regression between density and
% Zn for the samples that are
within the mineralised envelopes.
--------------- --------------------------------------- ------------------------------------------------------------
Classification The basis for the classification The Mineral Resource was classified
of the Mineral Resources into as Inferred, Indicated and Measured,
varying confidence categories. taking into account the level
of geological understanding of
the deposit, quality of samples,
density data, drillhole spacing
and sampling and assaying processes.
--------------- --------------------------------------- ------------------------------------------------------------
Whether appropriate account The following initial classification
has been taken of all relevant approach was adopted:
factors (i.e. relative confidence Zone II
in tonnage/grade estimations, * The resource was classed as Inferred if the average
reliability of input data, weighted sample distance was greater than 50 m
confidence in continuity of
geology and metal values,
quality, quantity and distribution * The resource was classed as Indicated if the average
of the data). weighted sample distance was between 25 m and 50 m.
If the numbers of drillholes -
The initial classification was
reviewed visually. Based on the
initial classification, a solid
wireframe was created to define
Indicated Mineral Resources. This
defined resource categories based
on a combination of data density
and geological confidence.
Zone III
* The resource was classed as Inferred if the average
weighted sample distance was greater than 50 m.
* The resource was classed as Indicated if the average
weighted sample distance was between 25 m and 50 m.
If the numbers of drillholes -
* The resource was classed as Measured if the average
weighted sample distance was less than 25 m. If the
numbers of drillholes -
The initial classification was
reviewed visually. Based on the
initial classification, three
solids rescat_meas, rescat_ind
and rescat_inf were created to
define Measured, Indicated and
Inferred Mineral Resources. This
defined resource categories based
on a combination of data density
and geological confidence.
Zone V
All resource was classed as Inferred.
Zone VIII
It was considered that part of
the Mineral Resource could have
been classified as Indicated,
based on drill spacing and similarity
to the Zone III mineralisation
that is currently being mined.
However, the downhole survey data
causes material concerns about
the location of the drillhole
traces, and this has played a
significant part in deciding to
classify the whole of the Zone
VIII Mineral Resource as Inferred.
--------------- --------------------------------------- ------------------------------------------------------------
Whether the result appropriately The MRE appropriately reflects
reflects the Competent Person's the view of the Competent Person.
view of the deposit.
--------------- --------------------------------------- ------------------------------------------------------------
Audits The results of any audits Internal audits were completed
or reviews or reviews of Mineral Resource by CSA Global which verified the
estimates. technical inputs, methodology,
parameters and results of the
estimate.
--------------- --------------------------------------- ------------------------------------------------------------
Discussion Where appropriate a statement The Mineral Resource accuracy
of relative of the relative accuracy and is communicated through the classification
accuracy/ confidence level in the Mineral assigned to this Mineral Resource.
confidence Resource estimate using an The MRE has been classified in
approach or procedure deemed accordance with the JORC Code
appropriate by the Competent (2012 Edition) using a qualitative
Person. For example, the application approach. All factors that have
of statistical or geostatistical been considered have been adequately
procedures to quantify the communicated in Section 1 and
relative accuracy of the resource Section 3 of this table.
within stated confidence limits,
or, if such an approach is
not deemed appropriate, a
qualitative discussion of
the factors that could affect
the relative accuracy and
confidence of the estimate.
--------------- --------------------------------------- ------------------------------------------------------------
The statement should specify The Mineral Resource statement
whether it relates to global relates to a global tonnage and
or local estimates, and, if grade estimate. Grade estimates
local, state the relevant have been made for each block
tonnages, which should be in the block model.
relevant to technical and
economic evaluation. Documentation
should include assumptions
made and the procedures used.
--------------- --------------------------------------- ------------------------------------------------------------
These statements of relative The mine is in production. Each
accuracy and confidence of month mine production is reconciled
the estimate should be compared with mill production and the resource
with production data, where model. This work supports confidence
available. in this MRE.
--------------- --------------------------------------- ------------------------------------------------------------
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