TIDMSGZ
RNS Number : 1668O
Scotgold Resources Ltd
25 May 2015
SCOTGOLD RESOURCES LIMITED
CONONISH GOLD PROJECT STUDY UPDATE
AND JORC 2012 ORE RESERVE ESTIMATE
Scotgold Resources Limited ('Scotgold' or 'the Company') is
pleased to announce a new Ore Reserve estimate for its wholly owned
Cononish Gold Project and provide an update on development
activities. The Ore Reserve estimate, compiled by Bara Consulting
Ltd, has been classified and is reported as Proven and Probable,
based on guidelines recommended in the JORC Code (2012). The
Cononish Gold Project is part of the Company's gold portfolio
located in Scotland.
HIGHLIGHTS(1)
-- Total Ore Reserve estimate increased by 179% to 198,000
ounces of gold(Au) and 851,000 ounces of silver (Ag) (555,000
tonnes at 11.1g/t Au and 47.7g/t Ag respectively);
-- The maiden Proven Reserve of 24,000 ounces Au and 108,000
ounces Ag (65,000 tonnes at 11.5g/t Au and 51.5g/t Ag for
respectively);
-- The mining methodology trade off study has been completed and
Long Hole Open Stoping (LHOS) is confirmed as most appropriate;
-- The life of mine increases to approximately 8 years at a processing rate of 72,000tpa;
-- The new mine design and mine schedule has also been
completed, enabling earlier access to higher grade ore and gold
equivalent production of approximately 30,000 ounces per annum in
years 2 and 3;
-- The average annual gold equivalent production increased to approx. 23,000 ounces per annum.
-- The exploration team has been enhanced with the recruitment
of a Project Geologist and a structural prospectivity exercise has
been commenced.
Note1: All comparisons relate to Cononish Development Plan
released 30/04/2013 and available at www.scotgoldresources.com.
STUDY UPDATE
A thorough review has been undertaken of the 2013 Cononish
Development Plan developed by AMC Consultants (UK) Ltd (AMC) in
order to identify opportunities to not only improve on the plan but
to also improve the confidence in the plan. As a result of this
review further work has been undertaken on the mining methodology,
access design, geotechnical evaluation and overall mine design.
The outcome of this work is a revised Development Plan developed
by Bara Consulting (Bara). This revised Development Plan is
complete in all areas to at least a Prefeasibility Study level and
consequently the Company is now able to estimate the Ore Reserve
based on the Mineral Resource Estimate (MRE) issued in January
2015. Greater detail on the parameters derived from this work and
used for the Ore Reserve estimation process is given in the
following sections of this release.
Further work is still required to complete the Bankable
Feasibility Study (BFS), principally to update the capital cost
estimates, review and adjust as appropriate the operating cost
estimates and incorporate the conceptual opportunities identified
for savings. This is expected to be completed by the end of July
2015.
The Company has also recruited a Project Geologist to the team
who has previously conducted various studies on gold mineralisation
in the Dalradian belt. This additional capacity, together with a
structural prospectivity study already commenced, will focus our
ongoing exploration programs designed to both further build on the
mineral resources at Cononish and throughout our extensive Grampian
Project.
ORE RESERVE ESTIMATE
As at 25 May 2015 (JORC 2012 Code)
--------------------------------------------
Classification Proven Probable Total
---------------- ------- --------- ------
Tonnes
('000) 65 490 555
---------------- ------- --------- ------
Au Grade
(g/t) 11.5 11.1 11.1
---------------- ------- --------- ------
Au Metal
(k oz) 24 174 198
---------------- ------- --------- ------
Ag Grade
(g/t) 51.5 47.2 47.7
---------------- ------- --------- ------
Ag Metal
(k oz) 108 743 851
---------------- ------- --------- ------
(Bara Consulting Limited Ore Reserve
Statement dated May 2015)
--------------------------------------------
As at 30 April 2013 (JORC 2004 Code)
--------------------------------------------
Classification Proven Probable Total
---------------- ------- --------- ------
Tonnes
('000) 0 200 200
---------------- ------- --------- ------
Au Grade
(g/t) 0 11 11
---------------- ------- --------- ------
Au Metal
(k oz) 0 71 71
---------------- ------- --------- ------
Ag Grade
(g/t) 0 45 45
---------------- ------- --------- ------
Ag Metal
(k oz) 0 289 289
---------------- ------- --------- ------
(Development Plan dated 30 April
2013)
--------------------------------------------
Variance - Increase / (Decrease)
2013 to 2015
--------------------------------------------
Classification Proven Probable Total
---------------- ------- --------- ------
Tonnes
('000) n/a 145% 177%
---------------- ------- --------- ------
Au Grade
(g/t) n/a 1% 1%
---------------- ------- --------- ------
Au Metal
(k oz) n/a 145% 179%
---------------- ------- --------- ------
Note: the Ore Reserve estimates reported Development Plan dated
30/04/2013 under the JORC 2004 code are no longer applicable (as
discussed in the 2014 Annual Report) but are presented here for
comparative purposes only.
The most significant factor underlying the increase in the 2015
Ore Reserve estimate is the Mineral Resource Estimate (MRE)
published in January 2015. The increased confidence in this MRE and
the consequent increase in material classified as Indicated,
together with the work done to verify the modifying factors, has
resulted in the estimation of both Proven and Probable categories
of Ore Reserve. It should also be noted that the gold price used
for the Ore Reserve estimation is now US$1,100/ounce (compared with
US$1,300/ounce Au in the 2013) and the silver price used is
US$15/ounce.
Commenting on the improved numbers and the estimation of a
maiden Proven Ore Reserve, Scotgold CEO, Richard Gray said "We
continue on track to deliver the Cononish Project into production.
I believe this Ore Reserve statement highlights the robustness of
the project, even using a gold price of US$1,100/ounce, some US$100
below the current market price. This improved confidence is a
material factor in our early stage discussions with potential
financiers and will assist us secure the best possible financial
arrangements in the coming months"
For further information:
Scotgold Resources Limited Westhouse Securities Limited
Richard Gray
Chief Executive Officer Martin Davison
Tel: +44 (0)7905 884 021 Tel: +44 (0)20 7601 6100
Capital Markets Consultants Vicarage Capital Limited
Simon Rothschild Rupert Williams
Tel +44 (0)7703 167 065 Tel: +44 (0)20 3651 2911
SUMMARY OF MATERIAL INFORMATION FROM REVISED DEVELOPMENT
PLAN
1 RESOURCES CONSIDERED FOR MINING
The JORC 2012 compliant Mineral Resource Estimate is shown in
Table 1.1 below and was compiled by CSA Global (UK) Limited.
Details of the supporting work, including Section 1, 2 and 3 of the
JORC 2012 Code table 1 checklist were given in the Company's
announcement dated 12 January 2015.
Table 1.1 - Mineral Resource Estimate
Table 1.1 - Mineral Resource Estimate as at 12 January 2015
Reported at a cut off grade of 3.5g/t gold
-----------------------------------------------------------------------------------------------------------------
Classification K tonnes Grade Au Metal Au Grade Ag Metal Ag Bulk Density
g/t Koz g/t Koz
------------------------------- ----------- ----------- ----------- ----------- ----------- ---------------
Measured - In-situ 60 15.0 29 71.5 139 2.72
------------------------------- ----------- ----------- ----------- ----------- ----------- ---------------
Indicated - In-situ 474 14.3 217 58.7 895 2.72
------------------------------- ----------- ----------- ----------- ----------- ----------- ---------------
Indicated - Mined Stockpile 7 7.9 2 39.0 9 2.72
------------------------------- ----------- ----------- ----------- ----------- ----------- ---------------
Sub-total M & I 541 14.3 248 59.9 1,043 2.72
------------------------------- ----------- ----------- ----------- ----------- ----------- ---------------
Inferred - In-situ 75 7.4 18 21.9 53 2.72
------------------------------- ----------- ----------- ----------- ----------- ----------- ---------------
Total MRE 617 13.4 266 55.3 1,096 2.72
------------------------------- ----------- ----------- ----------- ----------- ----------- ---------------
Reported from 3D block model with grades estimated by Ordinary Kriging with 15 m SMU Local
Uniform Conditioning adjustment. Minimum vein width is 1.2m. Totals may not appear to add
up due to appropriate rounding.
-----------------------------------------------------------------------------------------------------------------
(CSA Global (UK) Limited Mineral Resource Estimate as at 12 January 2015)
2 cut-off grade and modifying factors
2.1 Cut-off Grade
In order to simplify the calculations based on grade, the value
of silver and gold were combined by the calculation of an
equivalent gold value. The calculation considered the different
metal process and recoveries. The equation used for calculating
equivalent Au g/t is:
Equivalent Au (g/t) = Au g/t + (Ag g/t *0.015)
A breakeven grade was calculated based on the operating costs
for mining and processing as well as the prevailing metal
prices.
Based on this calculation a mining cut-off of 4.6 g/t Equivalent
Au (RoM) was applied in the mine plan. Only stopes with in-situ
grades above the cut-off were targeted in the plan. In limited
cases it is necessary to mine lower grade blocks in order to access
the targeted blocks, rather than re-developing around the lower
grade blocks, and so some lower grade stope blocks are included in
the plan.
A marginal pay limit was calculated in the same manner, but by
setting the mining cost to zero, to determine the cut-off grade for
development ore. The marginal cut-off grade is 2.3 g/t Equivalent
Au in-situ, which equates to 2.1 g/t Equivalent Au RoM grade. To
ensure at least some profit margin on marginal ore the cut-off
grade applied in determining which development ore to process was
set at 2.5 g/t equivalent Au RoM grade.
2.2 Dilution
Considerable effort went into estimating dilution. All the
current ore intersections on the 400 m Level Adit were mapped and
detailed stope configurations were overlaid onto the mapping and
sampling data. Eleven different cases were analysed to determine
the amount of both planned dilution and unplanned dilution that was
likely to occur during mining. Planned dilution is that waste or
unpay material that is included in the stope envelope. This is
normally due to the variation in vein thickness/grade or deviation
of the vein away from the straight lines of the stope envelope.
Unplanned dilution is an allowance made for inaccuracies and
error in the mining process, which may occur due to inaccurate
drilling, deviation of the drill hole, blast damage or failure of
the stope hanging or sidewall.
The estimate of the predicted dilution and the width of the vein
in each of the eleven cases were plotted against each other and a
regression curve determined. The best fit for the data set was a
power function, where:
Total dilution (%) = 0.792 X Width (m)(-1.638)
This formula was used to allocate dilution to each stope block
in the mine plan. The average stope dilution is 30%.
An additional source of dilution in the mine plan is
development. Ore development was categorised into grade categories
in the mine plan:
ü Pay - RoM grade (Eq Au g/t) > 4.6 g/t
ü Low grade - RoM grade (Eq Au g/t) < 4.6 g/t and >2.5
g/t
ü Unpay - RoM grade (Eq Au g/t) < 2.5 g/t
Both pay and low grade development ore will be processed and
therefore have been included in the Mineral Reserve estimate. The
unpay development ore will be treated as waste material.
2.3 Ore Loss
An allowance was made for ore loss to account for:
ü Broken ore not recovered from stopes
ü Ore not broken due to inaccurate mining or mining
complications such as stope bridging
ü Ore lost during the mucking and hauling process, between the
stope and the RoM pad.
Based on experience from other narrow vein gold operations ore
loss was set at 10%.
3 ore reserve statement
The geological block and structural models produced by CSA were
used to develop the mine design. The level intervals proposed by
AMC were considered appropriate as was the long hole open stoping
mining method. The mine design included a rock pass system (which
was not included in the AMC design) and a revised layout for the
ramp systems. The rock pass system introduced considerable more
flexibility and will lead to reduced operating costs by reducing
truck haul distances. Appropriate pillars where built into the mine
design. These were based on a detailed geotechnical investigation
completed in April 2015. No Inferred Mineral Resources where
included in the mine design.
An illustration showing a vertical projection of the ore body
looking north coloured by grade can be found on the Company's
website at www.scotgoldresources.com a further illustration showing
a vertical projection looking north but coloured by year can also
be found at www.scotgoldresources.com.
In order to confirm the economic viability, the 2015 schedule
was evaluated with the 2013 estimated operating costs and capital
costs, which were updated to reflect the revised layout and
schedule. No further revision to costs (quoted below) were made, as
after review as part of the BFS, they are considered prudent and
appropriate at a Prefeasibility Study level of +/-20%.
The operating costs used in the life of mine financial model are
shown in Table 3.1.
Table 3--1 - Prefeasibility
Operating Cost Estimate
(LoM Averages)
-------------------------------
Operating Cost GBP/RoM
tonne
-------------------- ---------
Mining 48.40
-------------------- ---------
Processing 31.06
-------------------- ---------
Administration 8.51
-------------------- ---------
Total 87.97
-------------------- ---------
The processing and administration costs have changed slightly
due to the longer life.
The capital costs used in the life of mine financial model are
shown in Table 3.2.
Table 3--2 - Prefeasibility
Capital Cost Estimate
----------------------------------------
Capital Cost GBP millions
------------------------- -------------
Mine Development 3.648
------------------------- -------------
Mining Equipment 2.734
------------------------- -------------
Processing Plant 10.728
------------------------- -------------
Tailings Facility 4.112
------------------------- -------------
Infrastructure 0.996
------------------------- -------------
Environmental
and Social 1.174
------------------------- -------------
Labour (pre-production) 0.375
------------------------- -------------
Total 23.767
------------------------- -------------
Development costs have increased due to the revised mine design.
Labour costs have increased due to an increased allowance for
pre-production expenditure. Development capital includes all waste
development until the end of the mine life.
The metal prices used in calculating cash flow for this economic
assessment were US$ 1,100/Au oz and US$ 15/Ag oz and an exchange
rate of US$/GBP 1.60 was applied. These prices were provided by
Scotgold and are considered appropriate.
The estimate showed that the planned operation returns a
positive cash flow, with a pre-tax NPV of GBP21.3 million at a
discount rate of 10 per cent and a pre-tax IRR of 45%. This
confirms that the operation is economically viable.
Bara has been commissioned by Scotgold to update the areas of
work in the AMC Development Plan, which are considered to be at PFS
levels, and produce a BFS. This is expected to be completed by the
end of July 2015. The BFS is well advanced and early indications
are that these numbers may be improved once opportunities already
identified to reduce costs have been incorporated into the
study.
Table 3.3 shows the resource estimate and the conversion of the
Mineral Resource to Ore Reserve.
Table 3--3 - Summary of Mineral Resource
to Ore Reserve Conversion
-----------------------------------------------------------------------------
Item Factor Tonnes Au Au Ag Ag
'000 Grade '000 Grade '000
g/t Oz g/t Oz
------------------------- ------- ------- ------- ------ ------- ------
Resource (Measured
and indicated
at 3.5 g/t cut-off) 541 14.3 249 59.9 1,042
------------------------- ------- ------- ------- ------ ------- ------
Less unpay areas
(after mining
cut-off ) 5 g/t 374 15.7 189 69.1 830
------------------------- ------- ------- ------- ------ ------- ------
Dilution
------------------------- ------- ------- ------- ------ ------- ------
Stoping 30% 99 0.9 3 4.7 15
------------------------- ------- ------- ------- ------ ------- ------
Low Grade Development 136 6.2 27 20.9 91
------------------------- ------- ------- ------- ------ ------- ------
With dilution 609 11.2 218 47.8 936
------------------------- ------- ------- ------- ------ ------- ------
Less Ore loss
(10%) 10% -61 11.2 -22 47.8 -94
------------------------- ------- ------- ------- ------ ------- ------
From Underground
Mine 548 11.2 197 47.8 843
------------------------- ------- ------- ------- ------ ------- ------
From surface
stockpile 7 7.9 2 39.0 9
------------------------- ------- ------- ------- ------ ------- ------
Total Mineral
Reserve 555 11.1 198 47.7 851
------------------------- ------- ------- ------- ------ ------- ------
The Ore Reserve statement is shown in Table 3.4. This is an
estimate of the ore to be delivered to the plant.
Table 3.4 - Ore Reserve Statement
----------------------------------------------------------------------------
Classification Tonnes Grade Au Grade Ag
'000 Au g/t '000 oz Ag g/t '000 oz
------------------- --------- --------- ---------- --------- ----------
Proven 65 11.5 24 51.5 108
------------------- --------- --------- ---------- --------- ----------
Probable 490 11.1 174 47.2 743
------------------- --------- --------- ---------- --------- ----------
Total 555 11.1 198 47.7 851
------------------- --------- --------- ---------- --------- ----------
(Bara Consulting Limited - Ore Reserve Statement dated May 2015)
The Mineral Resources are declared inclusive of Ore
Reserves.
Competent Persons Statement
The information in this report that relates to the 2015 Ore
Reserves for Cononish Gold Project and the revised development plan
is based on information compiled by Pat Willis, a Competent Person
who is registered as a Professional Engineer (Pr.Eng.) with the
Engineering Council for South Africa (ECSA) and a Fellow in good
standing and Past President of the Southern Africa Institute of
Mining and Metallurgy (FSAIMM).. Mr Willis is employed by Bara
Consulting Limited, an independent consulting company. Mr Willis
has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person
as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves'. Mr Willis consents to the inclusion in the report of the
matters based on his information in the form and context in which
it appears.
The information in this report that relates to the 2015 Mineral
Resources Estimate for Cononish Gold Project (refer ASX
announcement dated 22/01/2015) is based on information compiled by
Malcolm Titley, a Competent Person who is a Member of The
Australasian Institute of Mining and Metallurgy. Mr Titley is
employed by CSA Global (UK) Limited, an independent consulting
company. Mr Titley has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Mr Titley consents to the inclusion in
the report of the matters based on his information in the form and
context in which it appears.
Further, the Company confirms it is not aware of any new
information or data that materially affects the information
contained in the original announcement and that all material
assumptions and technical parameters underpinning the estimate of
Resources continue to apply and have not materially changed
The information in this report that relates to the Cononish
Development Study Results (refer ASX announcement dated 30/4/2013)
was compiled by Mr. Martin W Staples BSc, FAusIMM., Director and
Principal Mining Engineer with AMC Consultants (UK) Ltd based in
the Maidenhead, UK office (now relocated to Perth W.A). Mr. Staples
has sufficient experience which is relevant to the style of
mineralization 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 Reporting
of Exploration Results, Mineral Resources and Ore Reserves. Mr.
Staples consents to the inclusion in the report of the matters
based on his information in the form and context in which it
appears. This information was prepared and first disclosed under
the JORC Code 2004
Forward Looking Statement
Statements regarding plans with respect to the Company's mineral
properties are forward-looking statements. There can be no
assurance that the Company's plans for development of its mineral
properties will proceed as currently expected. There can also be no
assurance that the Company will be able to confirm the presence of
additional mineral deposits, that any mineralisation will prove to
be economic or that a mine will successfully be developed on any of
the Company's mineral properties.
Appendix A: JORC Code, 2012 Edition - Table 1 report
Appendix B: Glossary of technical terms
Term Description
---------------- ------------------------------------------------
% Percent
---------------- ------------------------------------------------
degC Celsius degrees
---------------- ------------------------------------------------
3D Three-dimensional model or data
---------------- ------------------------------------------------
AAS Atomic Adsorption Spectronomy
---------------- ------------------------------------------------
Acid test A method of orientating a drillhole
using an acid etch
---------------- ------------------------------------------------
Adit Underground mining tunnel, for mining,
drainage, access
---------------- ------------------------------------------------
Ag Silver, atomic number: 47. Measured
in parts per million (grams per tonnes)
---------------- ------------------------------------------------
AQ Diamond Drill core Diameter: 27mm inside
barrel
---------------- ------------------------------------------------
Aqua regia Partial acid digestion method, dissolving
base and precious metals but not silicates
and/or alumina's
---------------- ------------------------------------------------
Assay A general term for geochemical analysis
of a sample
---------------- ------------------------------------------------
Au Gold, atomic number: 79. Measured in
parts per million (grams per tonnes)
---------------- ------------------------------------------------
Auriferous Enriched in gold
---------------- ------------------------------------------------
Azimuth An angular measurement in a spherical
coordinate system, i.e. deviation degree
relative to north
---------------- ------------------------------------------------
Blanks A reference material/sample which contains
zero grade, inserted to determine sampling
or laboratory contamination
---------------- ------------------------------------------------
BQ Diamond Drill core Diameter: 36.5mm
inside barrel
---------------- ------------------------------------------------
Breccia A rock that has experienced significant
brittle deformation, and is composed
of broken fragments typically cemented
together by a fine-grained matrix
---------------- ------------------------------------------------
Bulk density The mass of many particles of the material
divided by the total volume they occupy.
The total volume includes particle
volume, inter-particle void volume,
and internal pore volume
---------------- ------------------------------------------------
Calcareous Enriched in calcium, typically calcium
carbonate
---------------- ------------------------------------------------
CAPEX Capital Costs (short for Capital Expenditure).
---------------- ------------------------------------------------
Carbonate A carbonate is a salt of carbonic acid,
characterised by the presence of the
carbonate ion, CO(3) (2-)
---------------- ------------------------------------------------
Chalcopyrite One of the chief ores of copper. Sulphide
mineral, composition CuFeS(2)
---------------- ------------------------------------------------
Channel A hard rock sample, typically taken
sample perpendicular to the mineralised orientation,
continuously over a set length
---------------- ------------------------------------------------
Chip-channel A hard rock composite sample, typically
collected using a hammer to obtain
numerous fragments of rock
---------------- ------------------------------------------------
cm centimetre
---------------- ------------------------------------------------
Collar Geographical coordinates of the collar
of a drill hole or a working portal
---------------- ------------------------------------------------
Compositing The process of dividing or adding sample
intervals together to form a regular
length
---------------- ------------------------------------------------
CP Competent Person
---------------- ------------------------------------------------
CRM Certified Reference Materials, a QAQC
standard sample
---------------- ------------------------------------------------
CSA CSA Global (UK) Ltd
---------------- ------------------------------------------------
Cut-off The threshold value in exploration
grade and geological resources estimation
above which mineralised material is
selectively processed or estimated
---------------- ------------------------------------------------
Datamine A 3D mining software package
---------------- ------------------------------------------------
DD Diamond core drilling method
---------------- ------------------------------------------------
DGPS Differential Global Position System
---------------- ------------------------------------------------
Diamond Method of drilling, using a diamond
drill hole impregnated core-bit which produces
a solid cylinder of rock core
---------------- ------------------------------------------------
Diamond Circular hand-saw, with a diamond impregnated
saw cutting disk, typically used to collect
channel samples from hard rock outcrop
---------------- ------------------------------------------------
Dilution The inclusion of waste or low grade
(uneconomic) material either during
estimation or mining
---------------- ------------------------------------------------
DIP The angle of drilling (or of a structure)
relative to horizontal
---------------- ------------------------------------------------
DTM Digital Terrain Model. Three-dimensional
wireframe surface model, for example,
topography
---------------- ------------------------------------------------
Duplicates A QAQC sample that duplicates a previously
collected sampling, employing the same
collection and analysis methods
---------------- ------------------------------------------------
Dyke An intrusive, microcrystalline rock,
concentrated along a linear feature,
typically mafic (enriched in iron and
magnesium)
---------------- ------------------------------------------------
Easting Coordinate axis (X) for metre based
Projection, typically UTM. Refers specifically
to metres east of a reference point
(0,0)
---------------- ------------------------------------------------
Electrum A variety of gold containing minor
silver (usually 20% weight of silver)
---------------- ------------------------------------------------
Elevation Distance above a datum, typically above
sea level
---------------- ------------------------------------------------
Ezy mark A down-hole tool which marks the base
of piece of core, while still in the
core-barrel (down-hole), the marks
are used to orientate drill core
---------------- ------------------------------------------------
Face sample A chip or channel sample collected
from an advancing underground mine
drive
---------------- ------------------------------------------------
Fault A planar fracture or discontinuity
in a volume of rock, across which significant
displacement has occurred
---------------- ------------------------------------------------
Fire assay A laboratory method to analyse the
total precious metal (Au, Ag, PGE)
content of a sample, by fusion, furnace
and cupellation followed by Spectrometry
analysis
---------------- ------------------------------------------------
Flotation A metallurgical process, typically
used for non-acid soluble ore (e.g.
sulphides) to concentrate pulverised
ore minerals using flocculants
---------------- ------------------------------------------------
Feasibility A comprehensive study of a deposit
study in which all geological, engineering,
operating, economic and other relevant
factors are considered in sufficient
detail that it could reasonably serve
as the basis for a final decision by
a financial institution to finance
the development of the deposit for
mineral production.
---------------- ------------------------------------------------
Footwall The volume of rock which lies below
a structural contact
---------------- ------------------------------------------------
g Gram
---------------- ------------------------------------------------
g/t Grams per tonne (equal to parts per
million)
---------------- ------------------------------------------------
Galena One of the chief ores of lead. A sulphide
mineral, composition PbS
---------------- ------------------------------------------------
Geochemical In exploration, the main method of
sampling sampling for determination of presence
of mineralisation. A geochemical sample
usually unites fragments of rock chipped
with a hammer from drill hole core
at a specific interval
---------------- ------------------------------------------------
Geological A domain of rock that has a similar
domain character, age, mineralisation style
etc.
---------------- ------------------------------------------------
GPS Global Positioning System
---------------- ------------------------------------------------
Gravity A metallurgical process, used to concentrate
concentration dense minerals, typically employing
a centrifuge or gravity tables
---------------- ------------------------------------------------
Hangingwall The volume of rock which lies above
a structural contact
---------------- ------------------------------------------------
Histogram Diagrammatic representation of data
distribution by calculating frequency
of occurrence
---------------- ------------------------------------------------
HQ A diamond drill core diameter of 96
mm (outside of bit) and 63.5 mm (inside
of bit)
---------------- ------------------------------------------------
ICP Inductively Coupled Plasma analysis,
used to analysis elemental concentrations
of metals and several non-metals
---------------- ------------------------------------------------
IDS Inverse Distance Squared
---------------- ------------------------------------------------
Implicit A method of creating digital surfaces,
modelling wireframes and models using automated
processes and geological constraints
---------------- ------------------------------------------------
Indicated That part of a Mineral Resource for
Resource which tonnage, densities, shape, physical
characteristics, grade and mineral
content can be estimated with a reasonable
level of confidence. It is based on
exploration, sampling and testing
information gathered through appropriate
techniques from locations such as
outcrops, trenches, pits, workings
and drill holes. The locations are
too widely or inappropriately spaced
to confirm geological and/or grade
continuity but are spaced closely
enough for continuity to be assumed
---------------- ------------------------------------------------
Inferred That part of a Mineral Resource for
Resource which tonnage, grade and mineral content
can be estimated with a low level
of confidence. It is inferred from
geological evidence and assumed but
not verified geological and/or grade
continuity. It is based on information
gathered through appropriate techniques
from locations such as outcrops, trenches,
pits, workings and drill holes which
may be limited or of uncertain quality
and reliability
---------------- ------------------------------------------------
Isatis Geovariances' geostatistical software
---------------- ------------------------------------------------
JORC Joint Ore Reserves Committee
---------------- ------------------------------------------------
K Potassium
---------------- ------------------------------------------------
Kg kilogram
---------------- ------------------------------------------------
km kilometre
---------------- ------------------------------------------------
km(2) Square kilometre
---------------- ------------------------------------------------
Kriging Method of interpolating grade using
variogram parameters associated with
the samples' spatial distribution.
Kriging estimates grades in untested
areas (blocks) such that the variogram
parameters are used for optimum weighting
of known grades. Kriging weights known
grades such that variation of the
estimation is minimised, and the standard
deviation is equal to zero (based
on the model)
---------------- ------------------------------------------------
LHOS Long hole Open Stoping method of underground
mining
---------------- ------------------------------------------------
Lithology Rock type: based on standard international
geological classifications
---------------- ------------------------------------------------
Lode Another term for a mineralised vein
---------------- ------------------------------------------------
LUC Localised uniform conditioning, a
non-linear "recoverable resource"
estimation technique
---------------- ------------------------------------------------
m metre
---------------- ------------------------------------------------
M Million
---------------- ------------------------------------------------
Ma Million years
---------------- ------------------------------------------------
Mean Arithmetic mean
---------------- ------------------------------------------------
Measured that part of a Mineral Resource for
Resource which tonnage, densities, shape, physical
characteristics, grade and mineral
content can be estimated with a high
level of confidence. It is based on
exploration, sampling and testing
information gathered through appropriate
techniques from locations such as
outcrops, trenches, pits, workings
and drill holes. The locations are
appropriately spaced to confirm geological
and/or grade continuity to a high
confidence
---------------- ------------------------------------------------
Median Sample occupying the middle position
in a database
---------------- ------------------------------------------------
Metamorphosed Undergone physical and/or chemical
change due to heat and pressure, through
geological processes
---------------- ------------------------------------------------
MICROMINE A 3D mining software package
---------------- ------------------------------------------------
Microns A micrometre - a measurement of length
- 1 x 10(-6) metres
---------------- ------------------------------------------------
Mineralised Enriched in concentrations of an element
(e.g.) to a degree where it is economically
significant
---------------- ------------------------------------------------
Mineral A concentration or occurrence of material
Resource of intrinsic economic interest in
or on the Earth's crust in such form,
quality and quantity that there are
reasonable prospects for eventual
economic extraction. The location,
quantity, grade, geological characteristics
and continuity of a Mineral Resource
are known, estimated or interpreted
from specific geological evidence
and knowledge. Mineral Resources are
sub-divided, in order of increasing
geological confidence, into Inferred,
Indicated and Measured categories
---------------- ------------------------------------------------
Minimum A minimum width, dictated by the mining
mining width method employed (open-stope, raise-bore)
to which mining can realistically
be achieved
---------------- ------------------------------------------------
mm millimetre
---------------- ------------------------------------------------
MRE Mineral Resource Estimate
---------------- ------------------------------------------------
Mt million tonnes
---------------- ------------------------------------------------
Mtpa Million tonnes per annum
---------------- ------------------------------------------------
Native Metal A native metal is any metal that is
found in its metallic form, either
pure or as an alloy, in nature
---------------- ------------------------------------------------
NN Nearest Neighbour, a method of assigning
grades to blocks based on samples
that are nearest to it
---------------- ------------------------------------------------
Northing Coordinate axis (Y) for metre based
Projection, typically UTM. Refers
specifically to metres north of a
reference point (0,0)
---------------- ------------------------------------------------
NQ A diamond drill core diameter of 75.7
mm (outside of bit) and 47.6 mm (inside
of bit)
---------------- ------------------------------------------------
Nugget The typical difference (for an individual
domain) in grade between samples taken
immediately adjacent to each other
---------------- ------------------------------------------------
OK Ordinary Kriging. A linear estimation
technique using weights determined
through variography
---------------- ------------------------------------------------
OPEX Operating Costs
---------------- ------------------------------------------------
Orogenic Geological term for the process of
mountain building
---------------- ------------------------------------------------
OSGB Ordnance Survey of Great Britain
---------------- ------------------------------------------------
Outcrop Exposed rock, i.e. not covered by
soil or scree
---------------- ------------------------------------------------
Outliers A statistical term. Outliers are defined
as data points that do not fit into
the distribution of the overall dataset
---------------- ------------------------------------------------
oz. Troy ounce (31.1034768 grams)
---------------- ------------------------------------------------
Palaeozoic Geological Era - from 542Ma to 251Ma
---------------- ------------------------------------------------
Panel chip Chip sampling using a regular grid
---------------- ------------------------------------------------
Pb Lead, atomic number 82
---------------- ------------------------------------------------
Pegmatite A holocrystalline intrusive rock,
dominated by quartz, feldspar, mica
and associated with granitic intrusion
and high grade metamorphism
---------------- ------------------------------------------------
Pelite Metamorphic rock; of fine-grained
sedimentary protolith
---------------- ------------------------------------------------
Percentile A measure used in statistics indicating
the value below which a given percentage
of observations in a group of observations
fall
---------------- ------------------------------------------------
Phanerozoic Geological Eon - from 542Ma to the
present day
---------------- ------------------------------------------------
PLC Public Listed Company
---------------- ------------------------------------------------
Population In geostatistics, a population formed
from grades having identical or similar
geostatistical characteristics. Ideally,
one given population is characterized
by a linear distribution
---------------- ------------------------------------------------
Porphyry An igneous rock consisting of large-grained
crystals in a fine-grained matrix
---------------- ------------------------------------------------
Pre-feasibility A comprehensive study of the viability
study (PFS) of a mineral project that has advanced
to a stage where the mining method,
in the case of underground mining,
or the pit configuration, in the case
of an open pit, has been established,
and which, if an effective method
of mineral processing has been determined,
includes a financial analysis based
on reasonable assumptions of technical,
engineering, operating and economic
factors and the evaluation of other
relevant factors which are sufficient
for a qualified person, acting reasonably,
to determine if all or part of the
mineral resource may be classified
as a mineral reserve
---------------- ------------------------------------------------
ppm Parts per million
---------------- ------------------------------------------------
PQ A diamond drill core diameter of 122.6
mm (outside of bit) and 85 mm (inside
of bit)
---------------- ------------------------------------------------
Probable A 'Probable Ore Reserve' is the economically
Ore Reserve mineable part of an Indicated, and
in some circumstances, a Measured
Mineral Resource. The confidence in
the Modifying Factors applying to
a Probable Ore Reserve is lower than
that applying to a Proved Ore Reserve.
---------------- ------------------------------------------------
Proterozoic Geological Eon - from 2500Ma to 542Ma
---------------- ------------------------------------------------
Proved Ore A 'Proved Ore Reserve' is the economically
Reserve mineable part of a Measured Mineral
Resource. A Proved Ore Reserve implies
a high degree of confidence in the
Modifying Factors.
---------------- ------------------------------------------------
Psammite Metamorphosed sandstone
---------------- ------------------------------------------------
Pulps Final stage of sample preparation
prior to analysis, typically pulverised
to micron size and homogenised
---------------- ------------------------------------------------
Pyrite An iron sulphide with the chemical
composition of FeS(2)
---------------- ------------------------------------------------
QA/QC Quality Assurance Quality Control
---------------- ------------------------------------------------
Quartz A common silicate mineral, composition
SiO(2)
---------------- ------------------------------------------------
Quartz vein Intruded vein of quartz, typically
younger than the host rock
---------------- ------------------------------------------------
RAB Rotary Air Blast. A form of open hole
drilling where the drill cuttings
are ejected by air, travelling to
surface in the interface between the
drill rod and the ground
---------------- ------------------------------------------------
RC Reverse Circulation. A form of drilling
where the drill cuttings are ejected
by air, travelling to surface within
an opening within the drill stem itself
---------------- ------------------------------------------------
Raise A vertical underground excavation
---------------- ------------------------------------------------
Recovery Measurement of core loss (in meters(
(Drill) or chip sample (in mass) to ascertain
total drill recovery
---------------- ------------------------------------------------
Reserves Mineable geological resources
---------------- ------------------------------------------------
Residual A sample that is shorter than the
sample composited length, after compositing
---------------- ------------------------------------------------
Resources Geological resources (both mineable
and un-mineable)
---------------- ------------------------------------------------
RL Reduced Level. Elevation of the collar
of a drill hole, a trench or a pit
bench above the sea level
---------------- ------------------------------------------------
ROM Run of Mine
---------------- ------------------------------------------------
RQD Rock-quality designation, a geotechnical
measurement of how fractured or broken
a drill intersection is
---------------- ------------------------------------------------
Sample Specimen with analytically determined
grade values for the components being
studied
---------------- ------------------------------------------------
Seam filling A Datamine process of filling a wireframe,
from a designated direction, which
forms a single cell that honours the
true thickness of the wireframe in
that direction
---------------- ------------------------------------------------
Shear A structural discontinuity in a rock
mass, typically resulting in non-brittle
deformation and movement of blocks
along a plane
---------------- ------------------------------------------------
Shrinkage A mining method used for steeply dipping,
stoping narrower ore bodies with self-supporting
walls and ore
---------------- ------------------------------------------------
Sill Variation value at which a variogram
reaches a plateau
---------------- ------------------------------------------------
Silver Precious metal (Ag), atomic number:
47
---------------- ------------------------------------------------
Single shot A surveying method, employing single
film exposures to determine the azimuth
and dip of the surveying instrument
downhole
---------------- ------------------------------------------------
SMU Smallest Mining Unit, typically refers
to a block whose dimensions match
minimum mining block size expected
mining methods
---------------- ------------------------------------------------
Snowden International Mining and Exploration
Consultancy
---------------- ------------------------------------------------
SOP Standard Operating Procedure
---------------- ------------------------------------------------
Sphalerite The chief zinc sulphide mineral with
a chemical composition of ZnS
---------------- ------------------------------------------------
Standards Certified Reference Materials (CRMs)
samples which have a known constant
geochemical value, inserted to ascertain
laboratory precision
---------------- ------------------------------------------------
Stockworks A interconnected network of veins
---------------- ------------------------------------------------
Strike The orientation of a feature, in plan
view, or as intersecting a horizontal
plane
---------------- ------------------------------------------------
Sub-level Underground mining technique that
stoping involves vertical mining in a large,
open stope
---------------- ------------------------------------------------
Sulphides A mineral group that contains sulphur
as the major anion
---------------- ------------------------------------------------
Support Equal support implies that all data
has the same statistical weight
---------------- ------------------------------------------------
SURPAC A 3D mining software package
---------------- ------------------------------------------------
Swath plot A method of block model validation
using a graph that compares input
grades, drill metres, block model
tonnes
---------------- ------------------------------------------------
t Tonnes
---------------- ------------------------------------------------
Telluride A mineral group that contains tellurium
as the major anion
---------------- ------------------------------------------------
TMF Tailings Management Facility
---------------- ------------------------------------------------
Top cut A value to which anomalously high
grades are restricted to, determined
by statistical methods
---------------- ------------------------------------------------
Topography Detailed, precise description of the
surface of the earth, based on XYZ
data, to form a 3-D surface
---------------- ------------------------------------------------
Trench A method of sampling across and excavated
trench at surface, using either hand-tools
or a mechanical back-hoe. Used to
expose fresh/less-weathered rock
---------------- ------------------------------------------------
Tropari A 'single-shot' method of surveying,
using single film exposures to determine
the azimuth and dip of the surveying
instrument downhole
---------------- ------------------------------------------------
UC Uniform Conditioning, a non-linear
"recoverable resource" estimation
technique
---------------- ------------------------------------------------
UTM Universal Transverse Mercator
---------------- ------------------------------------------------
Variation In statistics, the measure of dispersion
around the mean value of a data set
---------------- ------------------------------------------------
Variogram Graph showing variability of an element
by increasing spacing between samples
---------------- ------------------------------------------------
Variography The process of constructing a semi-variogram
---------------- ------------------------------------------------
Vein A sheet like body of crystallized
minerals intruded into a host rock
---------------- ------------------------------------------------
Waste Un-mineralised rock, or rock that
is uneconomic to extract/process
---------------- ------------------------------------------------
Wireframe A 3-D digital model, typically an
solid volume which encloses a geological
domain
---------------- ------------------------------------------------
X The direction aligned with the x-axis
of a coordinate system
---------------- ------------------------------------------------
Y The direction aligned with the y-axis
of a coordinate system
---------------- ------------------------------------------------
Z The direction aligned with the z-axis
of a coordinate system
---------------- ------------------------------------------------
Zn Zinc, atomic number 30
---------------- ------------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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