Wrap Text
Landmark Resource Upgrade Sets Strong Foundation For Development of Prieska Zinc-Copper Project
Orion Minerals Limited
Incorporated in the Commonwealth of Australia
Australian Company Number 098 939 274
ASX share code: ORN
JSE share code: ORN
ISIN: AU000000ORN1
(“Orion” or “the Company”)
LANDMARK RESOURCE UPGRADE SETS STRONG FOUNDATION FOR DEVELOPMENT OF PRIESKA ZINC-COPPER PROJECT
• Updated Mineral Resource completed on schedule following ~85,000m infill drilling program.
• Indicated Mineral Resource: 18.51Mt at 3.60% Zn and 1.17% Cu, available for inclusion in Ore Reserves
estimation.
• Inferred Mineral Resource: 10.22Mt at 4.08% Zn and 1.14%Cu.
• Total Deep Sulphide Mineral Resource: 28.73Mt at 3.77% Zn and 1.16% Cu.
• Outstanding conversion rate demonstrates quality and consistency of the Prieska VMS deposit.
• Mineralisation remains open beyond the boundaries of the current Mineral Resource envelope, presenting
high-priority extensional drilling targets.
• Upgraded Resource to underpin Bankable Feasibility Study, on track for completion in Q2 2019.
“Figures" and “tables” referred to throughout this announcement can be viewed on the pdf version of the
announcement, available on the Company's website, www.orionminerals.com.au.
Orion’s Managing Director and CEO, Errol Smart, commented:
“This pivotal Resource upgrade provides a strong foundation for our strategy to fast-track the development of
a state-of-the-art base metals operation at Prieska next year. This is an outstanding result for our shareholders,
which demonstrates the success of the 85,000m infill drilling program completed over the past 18 months.
The higher-confidence Indicated component of the Resource has increased from zero to 18.5 million tonnes,
a result which has exceeded our expectations for the area where we completed infill drilling. This very high
conversion rate is testament to the exceptional quality and consistency of this deposit, and the Indicated
Resource will now form the cornerstone of our Bankable Feasibility Study due for completion in Q2 next year.
However, it is also important to note that the thick, high-grade intersections on the margins of the resource
area present compelling expansion targets. This near-mine exploration upside, when combined with the
opportunity to upgrade additional Inferred Resources with future underground drilling and the broader potential
of the emerging VMS field, puts Orion in an outstanding position to realise its objective of becoming a significant
new player in the global base metals industry, with the development of the Prieska Deposit and exploration of
the Areachap Belt.”
Orion Minerals Limited (ASX/JSE: ORN) (Orion or Company) is pleased to announce an update to the Deep
Sulphide Mineral Resource estimate at its Prieska Zinc-Copper Project (Prieska Project) in the Northern
Cape, South Africa, providing a strong foundation to its ongoing Bankable Feasibility Study (BFS) and fast-
tracked development strategy.
An additional 60,391m of drilling resulting in 50 new intersections and validation of 105 historical drill holes
since the last Resource announcement in April 2018 (refer ASX release 9 April 2018), has successfully
increased the total Deep Sulphide Resource to 28.73Mt grading 3.77% Zn and 1.16% Cu, with 18.51Mt
grading 3.60% Zn and 1.17% Cu upgraded to the higher-confidence Indicated category, available for inclusion
in estimation of Ore Reserves by the BFS currently underway.
The Mineral Resources stated in Tables 1 and 2 are for drilling data available on the Repli and Vardocube
Prospecting Rights. The Mineral Resources are quoted in accordance with the 2012 Edition othe Australian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) with
supporting information in Appendix 1.
Volume Density Zn Cu
License Classification Tonnes Zn (%) Cu (%)
(m3) (tonnes/m3) (tonnes) (tonnes)
Indicated 4,414,000 3.41 15,052,000 510,000 3.38 170,000 1.15
Repli Inferred 2,044,000 3.42 6,998,000 270,000 3.86 80,000 1.09
Total 6,458,000 3.41 22,050,000 779,000 3.53 249,000 1.13
Indicated 1,018,000 3.39 3,455,000 158,000 4.57 44,000 1.27
Vardocube Inferred 933,000 3.45 3,221,000 147,000 4.56 41,000 1.27
Total 1,951,000 3.42 6,676,000 305,000 4.57 85,000 1.27
Deep Indicated 5,432,000 3.41 18,507,000 667,000 3.60 217,000 1.17
Sulphide Inferred 2,977,000 3.43 10,219,000 417,000 4.08 117,000 1.14
Total Total 8,409,000 3.42 28,726,000 1,084,000 3.77 334,000 1.16
Table 1: Global Indicated and Inferred Mineral Resource Statement for the Prieska Project.
Cut-off
Classification Zn Zn Cu Cu
Zn Eq Volume(m3) Tonnes
Category Tonnes Grade (%) Tonnes Grade (%)
%calc
Indicated 5,432,000 18,507,000 667,000 3.60% 217,000 1.18%
0
Inferred 2,977,000 10,219,000 417,000 4.08% 117,000 1.14%
Indicated 5,055,000 17,305,000 646,000 3.73% 207,000 1.20%
4
Inferred 2,678,000 9,270,000 398,000 4.29% 110,000 1.24%
Indicated 2,411,000 8,449,000 379,000 4.49% 113,000 1.34%
6
Inferred 1,681,000 5,923,000 292,000 4.92% 77,000 1.29%
Note: Volumes and masses rounded to thousands, which may result in rounding errors.
Table 2: Mineral Resource for the Deep Sulphide Target at various higher cut-offs
Resource infill drilling was completed in Q4 2018 and the current Mineral Resource incorporates the results of
85,424m of drilling from 41 mother holes with 61 deflections, resulting in 87 intersections (15 intersections for
metallurgical sampling). In addition, 452 validated historical drill holes were incorporated into the Resource
database.
The primary focus of the drilling was to undertake infill sampling within the Deep Sulphide Inferred Resource
area, and to focus on converting as much as possible of the Inferred to Indicated Resource within the given
time frame. As a result, mineralisation was not closed off and potential exists to increase the Resource with
more drilling at the Prieska Zinc-Copper Deposit. In addition, Orion also believes that excellent opportunity
exists for new discoveries within the Prieska Volcanogenic Massive Sulphide (VMS) Camp and is currently
fast-tracking its near-mine exploration program.
As part of the BFS, Orion now looks forward to the completion of detailed scheduling and the mine design for
the Deep Sulphide Resource. With engineering studies progressing well (refer ASX release 2 February 2018)
and metallurgical optimisation completed (refer ASX release 22 Ocotber 2018), Orion is confident of a positive
outcome for the BFS.
The updated Mineral Resource for the Deep Sulphide Target was estimated utilising the following parameters:
• The Mineral Resource incorporates mineralisation within the Repli and Vardocube Prospecting Right
areas corresponding to a strike length of 2,600m. It has a horizontal width of between 6m and 140m, with
a down-dip extent of 1,230m below the shaft collar. The true thickness of the mineralisation varies from
1m to 30m with an average of 7m.
• The Deep Sulphide mineralisation is the depth extension of the historically mined strata-bound, stratiform
VMS Prieska Zn-Cu deposit. The mined section of the deposit is confined to a tabular, stratabound horizon
in the northern limb of a refolded recumbent synform, the axis of which plunges at approximately 5° to the
south-east. The Deep Sulphide Target area is located below the historical mined area, comprises the
steep down-dip continuity ("steep limb and hinge zone”) and from where it upturns to its subsequent
synformal structure ("trough zone").
• The stated Mineral Resource is based on drilling data available as at 30 November 2018 corresponding
to 41 mother holes and 61 deflections for 85,424m (75,962m diamond core and 9,462m pre-collar
percussion) (Figure 3A). Additional intersection data was obtained by digital capturing and validation of
620 historical underground drill holes of which 452 intersections were incorporated in the Mineral
Resource estimate.
• Diamond core samples were taken by splitting NQ or BQ core in half (Orion drilling). Core size for the
historical drilling is unknown.
• Orion samples were analysed at ALS Chemex (Pty) Ltd (ALS). Samples from historical surface drilling
samples were analysed at Anglovaal Research Laboratory at Rand Leases Mine and samples from
underground drilling at the Prieska Mine laboratory.
• Certified Reference Material (CRM), blanks and duplicates were inserted and analysed with each batch
of Orion drilling. Insertion rates for the current reporting is: CRMs = 10%, blanks = 5% and field duplicates
= 2% and pulp duplicates = 4%. A total of 4% of the samples were checked at an external laboratory. ALS
has their own internal QA/QC protocols which include CRMs (5%), blanks (2.5%) and duplicates (2.5%).
Historical laboratory QA/QC is undocumented and was controlled by the laboratory.
• All Orion collars were surveyed by a qualified surveyor using a Trimble R8 differential GPS. All historical
surface and underground hole collars were surveyed by qualified surveyors using a theodolite.
• Down-hole surveys for Orion holes were completed using a north-seeking Gyro instrument. Down-hole
surveys were carried out for most of the V holes and all of the D and F hole s drilled by Anglovaal. Both
Eastman and Sperry Sun instruments were used in historical down-hole surveys.
• Mineralised zones were delineated for resource estimation using a Zinc Equivalent (Zn_Eq) calculation
as a guide (Zn% + (2 x Cu%) > 4%) cut off value.
• Samples were composited to 1m, with four Cu value outliers value capped to 13.35%. No Zn outliers were
capped and a single density value was capped to 4.83t/m3
• Interpolation of the composite data was used to estimate the block grades using the Ordinary kriging for
local block estimation.
• A block model with cells of 30m x 30m x 5m was used with a sub-cell size of 0.5m x 0.5m x 0.5m.
• Bulk Densities (BD, t/m3) were determined using the water displacement method. The entire sample
(normally 1m length) was measured. Local block estimates of BD t/m3 were produced using Ordinary
kriging in areas of close spaced sampling. A second pass with longer search radii was utilised to populate
the remaining blocks.
• The Deep Sulphide Resource is classified at Inferred and Indicated levels of confidence. The classification
of the Deep Sulphide Resource takes cognisance of uncertainty associated with the definition of the
mineralised domain and therefore the volume estimate. The classification also takes cognisance of the
fact that there is more than one drilling and sampling program, and the historical Anglovaal data has
limited supporting documentation on procedures and assay methods. The estimated Mineral Resource is
constrained between a historical stoped area and a densely drilled area without extrapolation.
Project Background
The Prieska Project is located in the Northern Cape Province of South Africa, approximately 290km southwest
of the city of Kimberley. The project area encompasses the historical Prieska Copper Mine (PCM). PCM was
profitably operated by Anglovaal as an underground zinc and copper mine, exploiting the Copperton deposit
between 1971 and 1991, processing on average three million ROM tonnes per year to produce a life of mine
total of 1.01 million tonnes of zinc and 430,000 tonnes of copper in concentrates (refer ASX release 15
November 2017). Run-of-mine ore was treated by froth flotation to produce separate concentrates of copper
and zinc.
Orion is now investigating the establishment of new mining operations targeting the extraction of the remaining
zinc-copper mineralisation at the Prieska VMS deposit.
Orion has delineated a global Mineral Resource for the Deep Sulphide, classified by a Competent Person and
reported in accordance with the JORC Code, amounting to 28.73 million tonnes grading 3.77% zinc and 1.16%
Cu of which, 18.51 million tonnes is in the Indicated Catogory grading at 3.60% zinc and 1.17% copper.
Mine-development studies are scheduled for completion in the first half of 2019. DRA Projects South Africa
Pty Ltd (DRA) is the lead consultant appointed to consolidate the BFS, part of which includes the design of the
mineral processing plant. Metallurgical test work was conducted at the Mintek laboratories in Johannesburg,
South Africa. ABS Africa Pty Ltd is supervising the environmental permitting.
An application for a Mining Permit was submitted in April 2018 and granting of the permit is expected in Q2
2019, with project construction planned to start in Q4 2019.
Errol Smart
Managing Director and CEO
18 December 2018
ENQUIRIES
Investors JSE Sponsor
Errol Smart – Managing Director & CEO Rick Irving
Denis Waddell – Chairman Merchantec Capital
T: +61 (0) 3 8080 7170 T: +27 (0) 11 325 6363
E: info@orionminerals.com.au E: rick@merchantec.co.za
Media
Michael Vaughan Barnaby Hayward
Fivemark Partners, Australia Tavistock, UK
T: +61 (0) 422 602 720 T: +44 (0) 207 920 3150
E: michael.vaughan@fivemark.com.au E: orion@tavistock.co.uk
Suite 617, 530 Little Collins Street
Melbourne, VIC, 3000
Competent Person’s Statement
The information in this report that relates to Exploration Results is not in contravention of the 2012 Edition of
the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC
Code) and has been compiled and assessed under the supervision of Mr Errol Smart, Orion’s Managing
Director. Mr Smart (PrSciNat) is registered with the South African Council for Natural Scientific Professionals,
a Recognised Overseas Professional Organisation (ROPO) for JORC purposes and has sufficient experience
that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being
undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Mr Smart
consents to the inclusion in this announcement of the matters based on his information in the form and context
in which it appears.
The information in this report that relates to Exploration Results is not in contravention of the JORC Code and
has been compiled and assessed under the supervision of Mr Sean Duggan, a Director and Principal Analyst
at Z Star Mineral Resource Consultants (Pty) Ltd. Mr Duggan (PrSciNat) is registered with the South African
Council for Natural Scientific Professionals (Registration No. 400035/01), an ROPO for JORC purposes and
has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration
and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the
JORC Code. Mr Duggan consents to the inclusion in this announcement of the matters based on his
information in the form and context in which it appears and detailed in Appendix 1.
Disclaimer
This release may include forward-looking statements. Such forward-looking statements may include, among
other things, statements regarding targets, estimates and assumptions in respect of metal production and
prices, operating costs and results, capital expenditures, mineral reserves and mineral resources and
anticipated grades and recovery rates, and are or may be based on assumptions and estimates related to
future technical, economic, market, political, social and other conditions. These forward-looking statements
are based on management’s expectations and beliefs concerning future events. Forward-looking statements
inherently involve subjective judgement and analysis and are necessarily subject to risks, uncertainties and
other factors, many of which are outside the control of Orion. Actual results and developments may vary
materially from those expressed in this release. Given these uncertainties, readers are cautioned not to place
undue reliance on such forward-looking statements. Orion makes no undertaking to subsequently update or
revise the forward-looking statements made in this release to reflect events or circumstances after the date of
this release. All information in respect of Exploration Results and other technical information should be read in
conjunction with Competent Person Statements in this release (where applicable). To the maximum extent
permitted by law, Orion and any of its related bodies corporate and affiliates and their officers, employees,
agents, associates and advisers:
• disclaim any obligations or undertaking to release any updates or revisions to the information to reflect
any change in expectations or assumptions;
• do not make any representation or warranty, express or implied, as to the accuracy, reliability or
completeness of the information in this release, or likelihood of fulfilment of any forward-looking statement
or any event or results expressed or implied in any forward-looking statement; and
• disclaim all responsibility and liability for these forward-looking statements (including, without limitation,
liability for negligence).
Appendix 1: The following tables are provided in accordance with the JORC Code (2012) requirements for the reporting of Exploration Results and Mineral Resources
for the Prieska Deep Sulphide Target.
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling techniques • Nature and quality of sampling (e.g. cut channels, random chips, or • Drilling and sampling by Anglovaal Ltd (also known as the Anglovaal
specific specialised industry standard measurement tools appropriate Group, (Anglovaal) has been undertaken during two distinct periods
to the minerals under investigation, such as down hole gamma sondes, since the discovery of mineralisation. These are pre-mine exploration
or handheld XRF instruments, etc.). These examples should not be (1968 -1971) and during mine operations (1972-1984) drill holes ("V", "D",
taken as limiting the broad meaning of sampling. and "F" prefixed holes).
• Include reference to measures taken to ensure sample representivity • Since 2017 diamond drilling and sampling at the Deep Sulphide Target
and the appropriate calibration of any measurement tools or systems was done on two adjacent prospecting rights held by Repli Trading No.
used. 27 (Pty) Ltd (Repli) and Vardocube (Pty) Ltd (Vardocube), both subsidiary
• Aspects of the determination of mineralisation that are Material to the companies of Orion Minerals Ltd (Orion).
Public Report. Anglovaal:
• In cases where ‘industry standard’ work has been done this would be
relatively simple (e.g. ‘reverse circulation drilling was used to obtain • For diamond drilling carried out by Anglovaal between 1968 and 1984,
1m samples from which 3 kg was pulverised to produce a 30 g charge there is limited information available on sampling techniques for core.
for fire assay’). In other cases more explanation may be required, such However, with exploration and resource management being carried out
as where there is coarse gold that has inherent sampling problems. under the supervision of Anglovaal, it is considered by the Competent
Unusual commodities or mineralisation types (e.g. submarine nodules) Person that there would be procedures in place to the industry best
may warrant disclosure of detailed information. practice standard at that time. This is based on the Competent Persons
knowledge of exploration carried out by Anglovaal and discussions with
personnel employed by Anglovaal.
• The mineral resource management were under the professional
supervision of Dr Danie Krige an internationally recognised expert of the
time who published peer reviewed papers based on the sampling data.
The sampling was successful in defining a resource estimate which was
used as the basis of successful mine development and operation over a
20-year period.
• Drilling of the original surface exploration holes was carried out 200 –
250m line spacing. Underground exploration holes were not drilled on a
regular spacing.
• Surface drill exploration samples were all sent to Anglovaal Research
Laboratory at Rand Leases Mine, and underground drill samples to the
mine laboratory for analyses.
• No records on the sampling methodology.
• Although no formal QA/QC samples were inserted at the time by the
Criteria JORC Code explanation Commentary
geologists on the exploration site or the mine the Anglovaal Research
Laboratory developed their own standards, certified by other
commercial laboratories and those were used internally in the
laboratory. Duplicate samples were also inserted to check for
repeatability.
Orion:
• Diamond drill core was geologically logged, and zones of mineralisation
are identified and marked on the core. The core was marked for cutting
using the “low point” of the stratigraphy, marking the downhole direction
on each core piece to ensure that the cut core was returned to the tray
correctly. Half core was sampled. Following cutting, the core was
returned to the core tray. The sampling process was undertaken by a
qualified geologist, who checked that all core was returned in the
correct order by turning the core to face upward, fitting the core
together and marking the metre intervals on the cut face.
• The core sample intervals were marked with due consideration of the
percentage of sulphide mineralisation, lithological contacts, and
minimum and maximum sample intervals (nominally 50cm to 1.0m). The
sampling details were captured onto a paper log sheet that records
sample depths, sample number (derived from a standardised sample
register) recoveries, mineralisation percentage, sulphide minerals and
mineralisation style. A comments field is used to capture ancillary
observations or associations.
• Drilling at the Deep Sulphide Target was initially carried out aiming to
define an approximate 100m x 100m pattern by use of “mother” holes
and deflections from these holes. In specific areas the drill density was
increased to improve the level of confidence of the resource.
• Percussion / reverse circulation pre-collars (where used) were sampled
on a composite basis.
• Sampling carried out under supervision of a qualified geologist using
procedures outlined below including industry standard QA/QC.
• Samples submitted for analysis to ALS Chemex (Pty) Ltd (ALS) were
pulverised in its entirety at ALS and split to obtain a 0.2g sample for
digestion and analysis.
• Downhole electromagnetic (EM) survey were carried out in selected drill
holes using standard techniques.
Drilling techniques • Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air Anglovaal:
blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple
or standard tube, depth of diamond tails, face-sampling bit or other • Records for core size are not available.
type, whether core is oriented and if so, by what method, etc.). • No record on core orientation
Orion:
• Diamond core drilling using single tube NQ and BQ sized core. BQ core
was only drilled where problems were encountered in the original NQ
drilled drill hole and the drilling could not continue with NQ size.
• In the near surface weathered zone HQ core was drilled.
• Pre-collar drilled using percussion drilling on certain holes (above
mineralisation).
• Core was orientated in holes selected for geotechnical studies.
Drill sample recovery • Method of recording and assessing core and chip sample recoveries Anglovaal:
and results assessed.
• Measures taken to maximise sample recovery and ensure • All mineralised intersections were done with core drilling.
representative nature of the samples. • Core recoveries were measured for each drill "run" and recorded on
• Whether a relationship exists between sample recovery and grade assay sheets.
and whether sample bias may have occurred due to preferential • In most V holes and all D and F holes, intersections were in hard rock and
loss/gain of fine/coarse material. recoveries were generally good through the mineralisation.
Orion:
• All mineralised intersections were done with core drilling.
• Core stick-ups reflecting the depth of the drill hole were recorded at the
rig at the end of each core run.
• A block with the depth of the hole written on it was placed in the core
box at the end of each run.
• At the core yard, the length of core in the core box was measured for
each run. The measured length of core was subtracted from the length
of the run as recorded from the stick-up measured at the rig to
determine the core lost.
• Core recovery in all the mineralised intersections are good.
• No grade variation with recovery noted.
Criteria JORC Code explanation Commentary
Logging • Whether core and chip samples have been geologically and Anglovaal:
geotechnically logged to a level of detail to support appropriate
Mineral Resource estimation, mining studies and metallurgical studies. • All relevant intersections for V surface holes have been logged and all of
• Whether logging is qualitative or quantitative in nature. Core (or this information is available. It is understood from historical reports that all
costean, channel, etc.) photography. intersections for D and F holes were logged but not all information
• The total length and percentage of the relevant intersections logged. is currently available.
• Downhole geotechnical information is available for some of the D and F
holes only. Downhole mineralogical logs are available for some D and F
holes.
Orion:
• Pre-collar percussion holes were logged on 1m intervals using visual
inspection of washed drill chips. A hand held XRF instrument was used to
determine the presence of any metals.
• Core of the entire hole length was geologically logged and recorded on
standardised log sheets by a qualified geologist.
• Qualitative logging of colour, grain size, weathering, structural fabric,
lithology, alteration type and sulphide mineralogy was carried out.
• Quantitative estimate of sulphide mineralogy.
• Logs were recorded at the core yard and entered into digital templates
at the project office.
Sub-sampling • If core, whether cut or sawn and whether quarter, half or all core Anglovaal:
techniques and taken.
• Details of sub-sampling techniques not available.
sample preparation • If non-core, whether riffled, tube sampled, rotary split, etc. and
Orion:
whether sampled wet or dry.
• For all sample types, the nature, quality and appropriateness of the • Samples from percussion pre-collars were collected by spear sampling.
sample preparation technique. • Sampling on site aimed to generate a < 2kg sub sample to enable the
• Quality control procedures adopted for all sub-sampling stages to entire sample to be pulverised without further splitting.
maximise representivity of samples. • Water was used in the dust depression proses during percussion drilling,
• Measures taken to ensure that the sampling is representative of the in- resulting in wet chip samples.
situ material collected, including for instance results for field • BQ and NQ core cut at core yard and half core taken as sample. with
duplicate/second-half sampling. maximum of 1m sample length
• Whether sample sizes are appropriate to the grain size of the material • With core samples, the entire sample length was cut and sampled.
being sampled. • Sample preparation was undertaken at ALS an ISO accredited
laboratory. ALS utilises industry best practise for sample preparation for
analysis, involving drying of samples, crushing to <5mm if required and
then pulverising so that +85% of the sample passes 75 microns.
Quality of assay data • The nature, quality and appropriateness of the assaying and Anglovaal:
and laboratory tests laboratory procedures used and whether the technique is considered
partial or total. • Surface drill exploration samples were all sent to Anglovaal Research
Laboratory at Rand Leases Mine.
Criteria JORC Code explanation Commentary
• For geophysical tools, spectrometers, handheld XRF instruments, etc., • Atomic Adsorption method was used with a Nitric-bromide digest.
the parameters used in determining the analysis including instrument Underground drill hole samples were sent to the mine laboratory, where
make and model, reading times, calibrations factors applied and their the same analytical method was used.
derivation, etc. • Underground drill hole samples were sent to the mine laboratory, where
• Nature of quality control procedures adopted (e.g. standards, blanks, the same analytical method was used.
duplicates, external laboratory checks) and whether acceptable • Although no formal QC samples were inserted with the drill samples of
levels of accuracy (i.e. lack of bias) and precision have been the exploration holes the Anglovaal Research Laboratory developed
established. their own standards, certified by other commercial laboratories and
those were used internally in the laboratory. Duplicate samples were also
inserted to check for repeatability.
Orion:
• Samples were submitted to ALS and analysed for base metals, Au and
Ag. Analysis was by the Inductively Coupled Plasma and Optical
Emission Spectroscopy ("ICP-OES") methodology. Initially a three-acid
digest was used but since November 2018 an Aqua-regia digest was
used.
• Certified Reference Material (CRM), blanks and duplicates were inserted
and analysed with each batch. Insertion rates for the current reporting
was: CRM = 10%, blanks = 5%, field duplicates = 2% and pulp repeat
duplicates = 3.9%
• ALS has their own internal QA/QC protocols which include CRM’s (5%),
blanks (2.5%) and duplicates (2.5%).
• CRM samples showed high accuracy and tight precision with no
consistent bias.
• Blank samples indicated no contamination, within the pre-determined
thresholds, during the sample preparation process.
• Field duplicate samples showed acceptable precision with no obvious
bias.
• Laboratory samples showed excellent accuracy and precision.
• External laboratory checks by Genalyses showed excellent repeatability
with the primary laboratory.
• Down hole EM surveys were carried out in selected holes, using a 3
component Digi-Atlantis probe and ultra high power transmitter.
• Loop size of 1800m x 600m were used with continuous measurements
taken as the probe travels into the hole and out again.
• Surface TDEM surveys were carried out using a Supracon Jesse Beep
squid sensor and ultra-high-power transmitter with a Smartem 24
receiver.
Criteria JORC Code explanation Commentary
Verification of • The verification of significant intersections by either independent or Anglovaal:
sampling and alternative company personnel.
• No records available
assaying • The use of twinned holes.
Orion:
• Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols. • Orion’s Executive: Exploration personally supervised the drilling and
• Discuss any adjustment to assay data. sampling along with a team of experienced geologists.
• The Executive: Exploration reviewed the raw laboratory data and
confirmed the calculation of the significant intersections.
• Twin holes were drilled to verify historical drill intersections from
Anglovaal.
• Data entry from the primary hard copies was done on Excel
spreadsheets by the geologists logging the core. The data was then
imported in to an Access database by the geologist responsible for the
database. Validation of the data is done during importing into the
Access database by running queries, and when the resource geologist
imports the data into to the modelling software.
• All drilling data has been transferred to a secure Geobank database.
• For the EM survey, data was collected on site and validated by a
geophysical technician daily. Data (raw and processed) was sent to a
consultant geophysicist for review, quality control and processing.
• No adjustments have been made to the assay data.
Location of data points • Accuracy and quality of surveys used to locate drill holes (collar and Anglovaal:
down-hole surveys), trenches, mine workings and other locations used
• All surface and underground hole collars were surveyed by qualified
in Mineral Resource estimation.
surveyors using a theodolite.
• Specification of the grid system used.
• The historic mine survey data is in the old national Lo 23 Clarke 1880
• Quality and adequacy of topographic control.
coordinate system.
• Downhole surveys were carried out for most of the V holes and all of the
D and F holes. Methodology of the downhole surveys is not recorded on
the available hardcopy information but plans and sections are
meticulously plotted and signed off by a certified surveyor.
• Both Eastman and Sperry Sun instruments were used in the downhole
surveys.
• Significant deflections in the dips of the holes have been noted,
especially for the deeper holes. V holes with no downhole surveys are
shallower holes drilled earlier on in the initial exploration phase. These
holes intersected areas where the mineralisation is now largely mined
out.
• All hole positions have been converted to Lo23 WGS84 coordinates.
• Underground D and F holes are recorded in local "V" line and "O"
distance coordinates with local mine datum elevations. Level plans have
both the local V/O grid and Lo23 Clark 1880 grids plotted and this has
been used to define transformation parameters from local grid to
geographical coordinates. All hole positions have been converted to
Lo23 WGS84 coordinates.
Orion:
• Drill hole collar positions were laid out using a handheld GPS.
• After completion of the Orion drilling all collars were surveyed by a
qualified surveyor using a Trimble R8 differential GPS.
• Downhole surveys were completed in all drill holesusing a North-Seeking
Gyro instrument.
• All survey data is in the WGS84 ellipsoid in the WG23 Zone with the
Hartebeeshoek 1994 Datum. The coordinates are also supplied in Clarke
1880 and in UTM WGS84 Zone 34 (Southern Hemisphere).
Data spacing and • Data spacing for reporting of Exploration Results. Anglovaal:
distribution • Whether the data spacing and distribution is sufficient to establish the
• Original exploration holes (V) were drilled on 200 - 250 m spacing.
degree of geological and grade continuity appropriate for the Mineral
• Underground drilled holes (D, F and R) were not drilled on a regular
Resource and Ore Reserve estimation procedure(s) and classifications
spaced grid.
applied.
Orion:
• Whether sample compositing has been applied.
• At the Deep Sulphide Target drill holes were initially aimed to intersect
mineralisation on approximately 100m x 100m spacing with infill drilling to
be carried out in areas of interest as determined by results. In specific
areas the drill density was increased to improve the level of confidence
of the resource.
• Variography studies were carried out toguide the drill spacing for Mineral
Resource estimates.
• No sample compositing has been applied before assaying.
Orientation of data in • Whether the orientation of sampling achieves unbiased sampling of • Most of the historical drilling and all current drilling was oriented
relation to geological possible structures and the extent to which this is known, considering perpendicular, or at a maximum achievable angle to, the attitude of the
structure the deposit type. mineralisation.
• If the relationship between the drilling orientation and the orientation • As a result, most holes intersect the mineralisation at an acceptable
of key mineralised structures is considered to have introduced a angle.
sampling bias, this should be assessed and reported if material. • No sampling bias is anticipated as a result of hole orientations.
• EM surveys by Orion were completed in an orientation perpendicular to
the interpreted or intersected mineralisation.
Sample security • The measures taken to ensure sample security. Anglovaal:
• No details of sample security available. However, during the mining
operations the site was fenced and gated with security personnel
employed as part of the staff.
Orion:
• Chain of custody was managed throughout. Samples were stored on site
in a secure locked building and then freighted directly to the laboratory.
• All coarse and pulp rejects returned from the laboratory are stored within
secured locked buildings.
Audits or reviews • The results of any audits or reviews of sampling techniques and data. Anglovaal:
• No records of audits or reviews are available.
Orion:
• SRK has reviewed the sampling techniques being practiced.
• The sampling process is governed by well-established industry and
company procedures and protocols.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral tenement and • Type, reference name/number, location and ownership including • The Deep Sulphide Target is located on two Prospecting Rights held by
land tenure status agreements or material issues with third parties such as joint ventures, Repli and Vardocube, which are subsidiaries of Orion (Figure 1A).
partnerships, overriding royalties, native title interests, historical sites, • The Prospecting Right areas covers a strike of 2,460m for the Deep
wilderness or national park and environmental settings. Sulphide mineralisation.
• The security of the tenure held at the time of reporting along with any • All of the required shaft infrastructure and lateral access underground
known impediments to obtaining a licence to operate in the area. development is available within the two Prospecting Rights.
Exploration done by • Acknowledgment and appraisal of exploration by other parties. • The Anglovaal exploration resulted in the delineation and development
other parties of a large mine.
Geology • Deposit type, geological setting and style of mineralisation. • The Copperton deposit is a Volcanogenic Massive Sulphide (VMS)
deposit which is situated in the southernmost exposures of the north-
northwest trending Kakamas Terrain, which forms part of the Mid-
Proterozoic Namaqualand Metamorphic Complex.
• The deposit is hosted by the Copperton Formation of the Areachap
Group. The Areachap Group, also hosts several other but smaller VMS
deposits such as the Areachap, Boks Puts, Kantien Pan, Kielder, and
Annex Vogelstruisbult deposits.
• The structural sequence at the mine consists of a footwall Smouspan
Gneiss Member, Prieska Copper Mines Assemblage (PCMA), which hosts
the sulphide mineralisation, and the hangingwall Vogelstruisbult Gneiss
Member.
• The historically mined section of the deposit is confined to a tabular,
stratabound horizon in the northern limb of a refolded recumbent
synform, the axis of which plunges at approximately 5° to the south-east.
• The mineralised zone outcrop has a strike of 2,400m, is oxidised and / or
affected by leached and supergene enrichment to a depth of
approximately 100m and crops out as a well-developed gossan. It has a
dip of between 55° and 80° to the northeast at surface and a strike of
130° to the north. Current drilling indicates that the Deep Sulphides has a
strike length of at least 2860m in depth.
• The thickness of the mineralised zone exceeds 30m in places but
averages between 7m and 9m. The mineralised zone persists to a depth
of 1,100m (as deep as 1,228m in one section) after which it is upturned
due to the folding.
• The Deep Sulphide Target area located below the historical mined area,
comprises the steep down dip continuity ("steep limb and hinge zone”)
and from where it upturns to its subsequent synformal structure ("trough
zone").
• The morphology of the mineralised horizon in the eastern limb is well
mapped out by drilling and historic mining while the western limb up dip
extent is poorly tested and mapped.
Drill hole Information • A summary of all information material to the understanding of the Anglovaal:
exploration results including a tabulation of the following information
• Historical drilling results used in the Deeps Mineral Resource estimation
for all Material drill holes:
were reported in the ASX releases of 16 July 2018 and 18 November 2015.
o easting and northing of the drill hole collar
Orion:
o elevation or RL (Reduced Level – elevation above sea level in
metres) of the drill hole collar • All drill hole intersections used in the the Deep Sulphide Mineral Resource
o dip and azimuth of the hole estimation have been reported in the ASX releases of 5 November 2018,
o down hole length and interception depth 15 October 2018, 18 September 2018, 16 July 2018, 19 February 2018, 1
o hole length. February 2018, 12 December 2017, 8 November 2017, 9 October 2017, 5
• If the exclusion of this information is justified on the basis that the October 2017, 17 September 2017, 6 September 2017, 27 July 2017, 17
information is not Material and this exclusion does not detract from the July 2017.
understanding of the report, the Competent Person should clearly • Other relevant diagrams have been included in the abovementioned
explain why this is the case. ASX releases relating to the drilling results at the Prieska Project.
Data aggregation • In reporting Exploration Results, weighting averaging techniques, Anglovaal:
methods maximum and/or minimum grade truncations (e.g. cutting of high
• Individual intersections were weighted by sample width.
grades) and cut-off grades are usually Material and should be stated.
• No truncations have been applied.
• Where aggregate intercepts incorporate short lengths of high grade
• All grade and density information are incorporated in the Orion
results and longer lengths of low grade results, the procedure used for
database, and due to the large number of intersections made it is in the
such aggregation should be stated and some typical examples of
Competent Person view that it should not be included in this reporting.
such aggregations should be shown in detail.
Orion:
• The assumptions used for any reporting of metal equivalent values
should be clearly stated. • Significant intersections for the Deep Sulphide Target reported to the ASX
are calculated by average of assays result > 0.3% copper or 0.5% zinc
and weighted by the sample width and specific gravity of each sample.
• In general, the significant intersections correspond strongly to geological
boundaries (massive sulphides) and are clearly distinguishable from
country rock / surrounding samples.
• No truncations have been applied.
• No metal equivalent values were considered.
• Significant intersections made by Orion were reported in previous ASX
releases relating to drilling of the Deep Sulphide Target.
Relationship between • These relationships are particularly important in the reporting of • All intersection widths quoted are down hole widths.
mineralisation widths Exploration Results. • Most holes intersected the mineralisation perpendicular or at high angle
• If the geometry of the mineralisation with respect to the drill hole angle to the attitude of the mineralisation.
and intercept lengths
is known, its nature should be reported. • The geometry of the Deep Sulphide mineralisation is complex and true
• If it is not known and only the down hole lengths are reported, there widths can be obtained from the three-dimensional wireframe created
should be a clear statement to this effect (e.g. ‘down hole length, true of the mineralisation.
width not known’).
Diagrams • Appropriate maps and sections (with scales) and tabulations of • Appropriate diagrams (plans and long sections) are shown in Figures 1A
intercepts should be included for any significant discovery being to 6A.
reported. These should include, but not be limited to a plan view of drill • All drill hole intersections used in the the Deep Sulphide Mineral Resource
hole collar locations and appropriate sectional views. estimation have been reported the ASX releases of 5 November 2018, 15
October 2018, 18 September 2018, 16 July 2018, 19 February 2018, 1
February 2018, 12 December 2017, 8 November 2017, 9 October 2017, 5
October 2017, 17 September 2017, 6 September 2017, 27 July 2017, 17
July 2017. Historical drilling results were reported in the ASX releases of 16
July 2018 and 18 November 2015.Other relevant diagrams have been
included in previous ASX releases relating to the drilling results at the
Prieska Project.
Balanced reporting • Where comprehensive reporting of all Exploration Results is not • All drilling information is available in a secure GeobankTM database and
practicable, representative reporting of both low and high grades has been compiled digitally.
and/or widths should be practiced to avoid misleading reporting of • The Company has presented all available information in this report in a
Exploration Results. balanced manner and has provided appropriate context for the
Exploration Results to allow a considered and balanced judgement of
their significance.
Other substantive • Other exploration data, if meaningful and material, should be reported • Hardcopy plans are available for a range of other exploration data. This
exploration data including (but not limited to): geological observations; geophysical includes mine survey plans, geological maps, airborne magnetic, ground
survey results; geochemical survey results; bulk samples – size and magnetic, electromagnetic, gravity and induced polarisation
method of treatment; metallurgical test results; bulk density, information. All available exploration data has been viewed by the
groundwater, geotechnical and rock characteristics; potential Competent Person.
deleterious or contaminating substances. • The Prieska Mine operated from 1972 to 1991 and is reported to have
milled a total of 45.68 Mt of ore at a grade of 1.11% copper and 2.62%
zinc, recovering 0.43 Mt of copper and 1.01 Mt of zinc. Detailed
production and metallurgical results are available for the life of the mine
(Figure 7A).
• In addition, 1.76 Mt of pyrite concentrates and 8,403 t of lead
concentrates as well as amounts of silver and gold were recovered.
• Copper and zinc recoveries averaged 84.9% and 84.3% respectively
during the life of the mine.
• Comprehensive geotechnical work as part of a Bankable Feasibility
Study (BFS) has been completed on the Deep and +105 Target areas
and the data is available.
• Metallurgical test work as part of a BFS is in progress. All data to date is
available.
• Relevant diagrams have been included in previous ASX releases relating
to drilling at the Prieska Project.
Further work • The nature and scale of planned further work (e.g. tests for lateral • Drilling is on-going to test extensions of the Deep Sulphide Target in areas
extensions or depth extensions or large-scale step-out drilling). where the mineralisation is not closed-off.
• Diagrams clearly highlighting the areas of possible extensions, including
the main geological interpretations and future drilling areas, provided
this information is not commercially sensitive.
Section 3 Estimation and Reporting of Mineral Resources
(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 corrupted by, for • All drill hole and sample data are stored by Orion in a robust GeobankTM
example, transcription or keying errors, between its initial collection database.
and its use for Mineral Resource estimation purposes. • Validation includes the following:
• Data validation procedures used. o Ensuring that all drill holes have appropriate XYZ coordinates.
o Comparing the maximum depth of the hole against the final depth
indicated in the collar file.
o Comparing the final depth in the survey file against final depth in
the collar file.
o Comparing the final depths of all geology, assay, core recovery
against the final depth in the collar file.
o Checking for duplicate drill holes.
o Checking that each depth interval has a main lithology.
o Checking that all fields that were set up as mandatory fields contain
entries.
o The core recoveries were checked for unrealistic percentages.
o Density results are checked for unrealistic values.
• A further check was performed when the drill hole data was imported
into the Geovia SurpacTM (Surpac) modelling software. The data was
validated for duplicates, gaps, overlaps, impossible intervals in down-
hole sequence for assay, collar coordinates, geology data and survey
data. The drill holes were also visually checked in plan and section in
Surpac.
Site visits • Comment on any site visits undertaken by the Competent Person • Z* Star Mineral Resource Consultants (Pty) Ltd (Z*) were requested by
and the outcome of those visits. Orion Services South Africa (Pty) Ltd (Orion SA) to estimate and classify a
• If no site visits have been undertaken indicate why this is the case. mineral resource for the Deep Sulphide deposit. Z* visited the Prieska
Project from 17 to 19 October 2017.
• The visit included a review of the drilling and sampling operations,
discussion on the geology and associated mineralisation, review of the
planned drill holes and examination of the assay data and a high level
spatial analysis.
Geological • Confidence in (or conversely, the uncertainty of) the geological • The Deep Sulphide mineralisation is the depth extension of the strata-
interpretation interpretation of the mineral deposit. bound, stratiform VMS Prieska Cu-Zn deposit and is hosted by the 3km
• Nature of the data used and of any assumptions made. thick Copperton Formation of the Areachap Group. The massive
• The effect, if any, of alternative interpretations on Mineral Resource sulphide mineralisation is characterised by abundant rounded fragments
estimation. The use of geology in guiding and controlling Mineral of gangue material of various sizes contained in a matrix of sulphide
Resource estimation. minerals. The gangue includes fragments of both hanging- and footwall
• The factors affecting continuity both of grade and geology. material.
• No clear metal zonation is evident from the modelling. High Cu are
generally not in the same place as the high Zn (with a few exceptions).
• Geological data and conclusions reached were based on observations
made in drill core from recent drilling and sampling program.
• Like many other VMS deposits domaining for estimation is not possible
using the geology, and the best method is therefore to utilise the assay
data.
• There is a sharp decrease in the Zn and Cu grades on the boundary of
the massive sulphide unit. For the construction of the wireframes a Zn
equivalent cut-off of 3.0% (Zn Eq = Zn% + (Cu%*2) for the mineralised
zones was used. The Zn_Eq cut-off was used a guide for modelling rather
than a strict threshold.
Dimensions • The extent and variability of the Mineral Resource expressed as • Within the prospecting right areas, the strike length of the mineralisation is
length (along strike or otherwise), plan width, and depth below 2600m, horizontal width varies from 410m to 870m and the down dip
surface to the upper and lower limits of the Mineral Resource. extent is 1 228m below shaft collar. True thickness of the orebody varies
between <1m to 30m with an average of 7m.
Estimation and • The nature and appropriateness of the estimation technique(s) • The estimation of the Deep Sulphides included the following steps:
modelling techniques applied and key assumptions, including treatment of extreme grade o The creation of a wireframe model for the Deep Sulphide target
values, domaining, interpolation parameters, and maximum using a 3.0% Zn equivalent cut-off as a guide. In addition, the
distance of extrapolation from data points. If a computer assisted lithology was utilised;
estimation method was chosen include a description of computer o Data validation and selection of samples within the Deep Sulphide
software and parameters used. target and analysis of the variables to be estimated, i.e. Cu%, Zn%,
• The availability of check estimates, previous estimates and/or mine and SG;
production records and whether the Mineral Resource estimate o Exploratory Data Analysis (EDA) that included:
takes appropriate account of such data. o Compositing the data to 1m;
• The assumptions made regarding recovery of by-products. o Capping four Cu% outliers and no capping of Zn% values; an
• Estimation of deleterious elements or other non-grade variables of o Exclusion of two samples with extreme lengths.
economic significance (e.g. sulfur for acid mine drainage o Creation of a suitable block model with estimation blocks (30m x
characterisation). 30m x 5m) and with sub-cells of 0.5m x 0.5m x 0.5m;
• In the case of block model interpolation, the block size in relation to o A spatial analysis of estimation variables followed by a
the average sample spacing and the search employed. neighbourhood analysis taking cognisance of the folding;
• Any assumptions behind modelling of selective mining units. o Estimation using an appropriate method and modelled parameters,
• Any assumptions about correlation between variables. i.e. Ordinary kriging for local block estimation supplemented by
• Description of how the geological interpretation was used to control zonal estimation;
the resource estimates. o Validation of block estimates including statistical and visual
• Discussion of basis for using or not using grade cutting or capping. methods as well as comparison with the results of a second method
• The process of validation, the checking process used, the (moving average);
comparison of model data to drill hole data, and use of o The software used for estimation was IsatisTM.
reconciliation data if available. • Orion declared a Mineral Resource for the Deep Sulphide target on the
Repli and Vardocube Prospecting Rights on 8 February 2018 and 9 April
2018, respectively.
• There are no previous mine production plans for the Deep Sulphide
target.
• No assumptions have been made regarding the recovery of by-
products.
• No deleterious elements or non-grade variables were estimated.
Criteria JORC Code explanation Commentary
Moisture • Whether the tonnages are estimated on a dry basis or with natural • No moisture content was calculated, and the core was naturally dried
moisture, and the method of determination of the moisture content. when logged and sampled. The estimated tonnages are therefore
based on a natural basis.
Cut-off parameters • The basis of the adopted cut-off grade(s) or quality parameters • The Deep Sulfide Mineral Resource is declared at a zero cut-off but using
applied. a wreframe that mostly excludes sample values below a 3% Zn
equivalent.
• The cut-off was on the recommendation of Orion’s Chief Operating
Officer (COO) which is based on historical data from the Prieska Mine
and a dataset of parameters from similar operations in the region.
Mining factors or • Assumptions made regarding possible mining methods, minimum • Minimum mining thickness of 2m and cut-off of 4% Zn equivalent were
assumptions mining dimensions and internal (or, if applicable, external) mining proposed by Orion’s COO, as based on historical data from the Prieska
dilution. It is always necessary as part of the process of determining Mine and a dataset of parameters from similar operations in the region.
reasonable prospects for eventual economic extraction to consider • The minimum thickness is based on long hole open stope and drift and fill
potential mining methods, but the assumptions made regarding mining methods.
mining methods and parameters when estimating Mineral • A preliminary mine design which will form the basis of a Bankable
Resources may not always be rigorous. Where this is the case, this Feasibility Study (BFS) is in progress.
should be reported with an explanation of the basis of the mining
assumptions made.
Metallurgical factors • The basis for assumptions or predictions regarding metallurgical • The mine operated from 1972 to 1991 and is reported to have milled a
or assumptions amenability. It is always necessary as part of the process of total of 45.68 Mt of ore at a grade of 1.11% copper and 2.62% zinc,
determining reasonable prospects for eventual economic recovering 0.43 Mt of copper and 1.01 Mt of zinc.
extraction to consider potential metallurgical methods, but the • Detailed production and metallurgical results are available for the life of
assumptions regarding metallurgical treatment processes and the mine.
parameters made when reporting Mineral Resources may not • In addition, 1.76 Mt of pyrite concentrates and 8,403 t of lead
always be rigorous. Where this is the case, this should be reported concentrates as well as amounts of silver and gold were recovered.
with an explanation of the basis of the metallurgical assumptions • Copper and zinc recoveries averaged 84.9% and 84.3% respectively
made. during the life of the mine.
• Metallurgical test work on the Deep Sulphide mineralisation revealed
good concentrate recoveries, similar to those reported for the historical
Anglovaal operation.
• Additional metallurgical test work as part of a BFS is in progress.
Environmental factors • Assumptions made regarding possible waste and process residue • The Deep Sulphide Resource is on the environmental footprint of the
or assumptions disposal options. It is always necessary as part of the process of historic Prieska Copper Mine site. Environmental impact assessment
determining reasonable prospects for eventual economic studies form part of the on-going BFS.
extraction to consider the potential environmental impacts of the
mining and processing operation. While at this stage the
determination of potential environmental impacts, particularly for a
greenfields project, may not always be well advanced, the status of
early consideration of these potential environmental impacts should
be reported. Where these aspects have not been considered this
should be reported with an explanation of the environmental
assumptions made.
Bulk density • Whether assumed or determined. If assumed, the basis for the • Bulk densities (BD t/m3) were determined using the water displacement
assumptions. If determined, the method used, whether wet or dry, method. The entire sample (normally 1m length) was measured.
the frequency of the measurements, the nature, size and Cognisance of the change in lithology was taken in the selection of
representativeness of the samples. samples for bulk density measurements.
• The bulk density for bulk material must have been measured by • No moisture content was determined.
methods that adequately account for void spaces (vugs, porosity, • Local block estimates of BD t/m3 were produced using Ordinary kriging
etc), moisture and differences between rock and alteration zones within the mineralised wireframe. A second pass with longer search radii
within the deposit. was utilised to populate the remaining blocks. The tonnage per block
• Discuss assumptions for bulk density estimates used in the evaluation was determined using the volume (as per the wireframe model) and the
process of the different materials. BD on a block by block basis.
Classification • The basis for the classification of the Mineral Resources into varying • The classification of the Deep Sulphide Mineral Resource takes
confidence categories. cognisance of the uncertainty associated with the geology with the
• Whether appropriate account has been taken of all relevant focus being on the definition of the mineralised domain and therefore
factors, i.e. relative confidence in tonnage/grade estimations, the volume estimate. The classification also takes cognisance of the fact
reliability of input data, confidence in continuity of geology and that there is more than one drilling and sampling program, and the
metal values, quality, quantity and distribution of the data. historical Anglovaal data has a lack of available supporting
• Whether the result appropriately reflects the Competent Person(s)’ documentation. A further important consideration is the methodology
view of the deposit. used to estimate Cu%, Zn%, and BD t/m3 and an assessment of the results
(refer to discussion of relative accuracy and confidence below). In
particular the Slope of Rgression (SOR), the Kriging Efficieny (KE) and the
drilling density were utilised to identify blocks of lower levels of
uncertainty
• The Deep Sulphide Resource is classified at an Indciated and an Inferred
level of confidence.
• The results conform to the view of the Competent Persons.
Audits or reviews • The results of any audits or reviews of Mineral Resource estimates. • SRK carried out a review on the Deep Sulphide Mineral Resource
Estimate.
Discussion of relative • Where appropriate a statement of the relative accuracy and • The Deep Sulphide target was originally modelled on the historic
accuracy/confidence confidence level in the Mineral Resource estimate using an Anglovaal drilling only. It is important to recognise that the Orion holes
approach or procedure deemed appropriate by the Competent that targeted this Deep Sulphide deposit intersected the mineralised
Person. For example, the application of statistical or geostatistical zone at the expected depths. The Orion holes have not altered the
procedures to quantify the relative accuracy of the resource within shape of the original Deep Sulphide deposit significantly. The
stated confidence limits, or, if such an approach is not deemed compatibility of the two drilling campaigns thus adds considerable
appropriate, a qualitative discussion of the factors that could affect support in terms of including the Anglovaal drilling.
the relative accuracy and confidence of the estimate. • The results of a comparative analysis between Anglovaal and Orion
• The statement should specify whether it relates to global or local drilling and sampling data do not justify exclusion of historical data. There
estimates, and, if local, state the relevant tonnages, which should is a reasonable compatibility between the histograms (despite a
be relevant to technical and economic evaluation. Documentation significant difference in the number of assays).
should include assumptions made and the procedures used.
• These statements of relative accuracy and confidence of the • In general, the variogram models for Cu% and Zn% for both Anglovaal
estimate should be compared with production data, where and Orion data compare very favourably.
available. • Ordinary kriging was undertaken on Cu%, Zn%, and BD t/m3) using a 30m
x 30m x 5m blocks, utilising the capped 1m composite input datasets, the
modelled variograms and the search neighbourhood parameters. The
results from the first pass for Cu%, Zn% and BD t/m3 populate between
68% and 86% of the blocks in the Deep Sulphide target. A second kriging
pass was utilised for Cu%, Zn% and BD t/m3, that resulted in 100% of the
blocks being populated.
• No production data is available.
Date: 18/12/2018 10:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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