TIDMBEM

RNS Number : 6518Z

Beowulf Mining PLC

25 May 2021

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation ("MAR") (EU) No. 596/2014, as incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

25 May 2021

Beowulf Mining plc

("Beowulf" or the "Company")

Kallak Iron Ore Project - Mineral Resource Estimate and Exploration Target Upgrade

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, announces the results of a Mineral Resource Estimate ("MRE") Upgrade for the Kallak Iron Ore Project ("Kallak" or the "Project") prepared by Baker Geological Services Ltd ("BGS").

Highlights:

-- An additional 19 million tonnes ("Mt") of iron ore equating to a 12.5% increase in the resource.

   --      Measured and Indicated Mineral Resource of 132 Mt grading 27.8% iron ("Fe"). 
   --      Inferred Mineral Resource of 39 Mt grading 27.1% Fe. 

-- Three distinct areas of elevated copper ("Cu") and gold ("Au") mineralisation have been identified in drilling, running the length of the Project area, with elevated assay intersections predominantly lying on the boundaries of the iron mineralisation.

Copper grades reach up to 1.6%, although this was the maximum possible Cu value using the assay method employed at the time.

Gold grades reach up to 0.75 g/t from testwork completed in April 2021 on those pulp samples where the Cu assay was more than 0.1%.

In total, 30 samples were sent for gold assay with only five samples being below detection limit.

BGS has prepared a Technical Report which serves as an independent report prepared by the Competent Person ("CP") as defined by the Pan-European Reserves and Resources Reporting Committee ("PERC") Standard for Reporting of Exploration Results, Mineral Resources and Mineral Reserves. PERC sets out minimum standards, recommendations and guidelines for Public Reporting of Exploration Results, Mineral Resources and Mineral Reserves in Europe.

PERC is a member of CRIRSCO, the Committee for Mineral Reserves International Reporting Standards, and the PERC Reporting Standard is fully aligned with the CRIRSCO Reporting Template.

All work undertaken in the generation of the MRE is summarised in the PERC Table 1 Checklist found later in this announcement.

The definitions of Measured, Indicated and Inferred Resources, as well as Reserves, as used in this report, conform to the definitions and guidelines of the PERC Reporting Standard, 2017.

Comparison to Previous 2014 MRE

The previous Geovista 2014 MRE reported an Indicated Mineral Resource of 118 Mt at 27.5% Fe and an Inferred Mineral Resource of 33.8 Mt at 26.2% Fe. This compares to the BGS 2021 MRE, a combined Measured and Indicated Mineral Resource of 132 Mt at 27.8% Fe and an Inferred Mineral Resource of 39 Mt at 27.1% Fe.

This equates to an increase of 19 Mt in the upgrade reported herein for approximately the same Fe grade. The quantity of Inferred Resource is approximately the same and the upgrade includes a portion of the resource declared in the Measured category. This was considered appropriate due to recent Davis Tube testwork increasing the knowledge of the project's mineralisation styles.

Geovista also undertook a pit optimisation exercise to report the final Mineral Resource Statement for Kallak and it is likely that the difference in assumptions may account for the overall tonnage difference between the 2014 and 2021 MREs.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"I am delighted with the results of this upgraded Mineral Resource Estimate and the doubling of the Exploration Target, which clearly demonstrate the potential for a mine at Kallak to supply high-quality iron ore over several decades for fossil-free steel production in Sweden.

"While we wait for UNESCO to return its comments to the Government, there have been significant developments in Norrbotten.

"In February, H2 Green Steel ("H2GS") announced plans to establish a large-scale steel production facility based on a fossil-free manufacturing process to be located in the Boden-Luleå region of Norrbotten. Production will begin in 2024 and by 2030 H2GS will have a production capacity of five million tonnes of high-quality steel.

"In March SSAB, LKAB and Vattenfall took a new, decisive leap forward in their work to make fossil-free steel for the global market. With industrialization of the technology being developed through HYBRIT to be sited in Gällivare, where the world's first production plant for fossil-free sponge iron - from feedstock to steel - is being planned by LKAB.

"Kallak is ideally positioned with respect to both these projects and can similarly leverage renewable power to ensure the integrity of a fossil-free supply chain.

"With the recent arrival of a new Governor in Norrbotten, the Company believes that the County Administrative Board ("CAB") has an obligation to review its November 2017 position on Kallak.

"Beowulf maintains that the CAB's 2017 statement is invalid and is further discredited given the fundamental shift in understanding about the Climate Emergency, and the need for more mines to produce the metal required for the transition to a Green Economy.

"Permitting downstream fossil-free steel production in the absence of permitting upstream raw material supply is non-sensical.

"In its assessment of Kallak, the CAB failed to properly consider the financial health of Jokkmokk Municipality, finding that reindeer herding was a better use of the land at Kallak. Over the last two years, Jokkmokks Kommun has been forced to cut its budget by SEK 28 million. The Municipality desperately needs the economic stimulus, investment, jobs and taxes that Kallak will deliver

" "Kallak will bring billions of SEK in investment and hundreds of jobs to Jokkmokk. All stakeholders will benefit and all interests will be safeguarded.

"The Company continues to engage with politicians in Norrbotten and Stockholm and last week's webinar 'Hållbar Gruvnäring' (Sustainable Mining) brought together politicians from across the political spectrum and key stakeholders to discuss the need for more mines in Sweden.

"Parliamentary questions continue to be put to Minister Baylan about the Kallak process, which he often refers to as being complex. The Kallak case is not complex.

"The first exploration licence was granted in 2006 by the Mining Inspectorate, part of the SGU, a Government Office. The Company has been permitted to invest over SEK 80 million and, with this upgraded MRE, defined a potential global iron ore resource of up to 389 million tonnes from which we have produced a market leading 71.5% iron concentrate.

"In late 2014, the Company addressed concerns raised by the CAB at the time and, in July 2015, the CAB stated that Kallak has a positive economic case. In October 2015, the Mining Inspectorate recommended to the Government that the Concession be awarded.

"The direction of travel is irrefutable, as is the Climate Emergency, the transition to a Green Economy, and the need for more metal from more sustainable mines. Kallak is part of this future.

"I look forward to providing further updates in due course."

Background to the MRE

Baker Geological Services Ltd was requested by Beowulf to undertake a MRE and Exploration Target ("ET") generation on Kallak.

The Kallak deposit is considered an advanced exploration project. No mining has taken place at the Project except for the collection of a bulk sample from trenches.

The Kallak deposit and iron mineralisation in the area has been known to exist since the 1940's. They were first investigated by the Swedish Geological Survey ("SGU") during 1948, with seven diamond drillholes completed. The SGU returned and investigated the area again in the early 1970's, then with six new drillholes. Comprehensive ground geophysical surveys were carried out in connection to these two campaigns.

Historical exploration led to the establishment of a Mineral Resource reported in November 2014. This was compiled by Geovista AB, titled "Kallak North and South Mineral Resource update". Between 2010 and 2015 the company also completed various technical studies comprising a conceptual study, environmental impact assessment, metallurgical studies and logistical studies to guide the future development of the Project.

In completing the updated MRE reported herein, geology and mineralisation models have been created with full suite XRF grades (Fe, SiO(2) , Al(2) O(3) , P, Mn, S, CaO, MgO, TiO(2) and K(2) O) being estimated into the mineralisation model. In addition to the XRF assay grades, Loss on Ignition ("LOI"), FeO by Titration and Magnetic Susceptibility data has been estimated into the mineralisation model. FeO and Magnetic Susceptibility data, along with the XRF grades have been used extensively to verify the mineralogical components of the model, this being the most significant change to the updated Mineral Resource model. Density testwork has been completed to allow a tonnage estimate and Quality Assurance Quality Control programmes have been sufficient to verify the quality of data used in the MRE. The model created includes Measured, Indicated and Inferred Mineral Resources.

BGS has prepared a Technical Report which serves as an independent report prepared by the Competent Person as defined by the Pan-European Reserves and Resources Reporting Committee Standard for Reporting of Exploration Results, Mineral Resources and Mineral Reserves. PERC sets out minimum standards, recommendations and guidelines for Public Reporting of Exploration Results, Mineral Resources and Mineral Reserves in Europe.

PERC is a member of CRIRSCO, the Committee for Mineral Reserves International Reporting Standards, and the PERC Reporting Standard is fully aligned with the CRIRSCO Reporting Template.

All work undertaken in the generation of the MRE is summarised in the PERC Table 1 Checklist found later in this announcement.

The definitions of Measured, Indicated and Inferred Resources, as well as Reserves, as used in this report, conform to the definitions and guidelines of the PERC Reporting Standard, 2017.

The data used for the MRE, including drillhole databases and topographic surveys, was provided by Beowulf.

BGS has been unable to undertake a site visit to the Project due to the COVID-19 global pandemic. A site visit will be undertaken when possible. BGS was supplied with a comprehensive core photograph library and has discussed the Project in detail with Company Personnel and external consultants. In addition, the Project was visited by Dr Bo Arvidson of Bo Arvidson Consulting LLC in October 2020 and in 2013. Dr Arvidson is a Mineral Processing Engineer with over 50 years industry experience and is considered a Competent Person in his field. Dr Arvidson has a long history with the Project and visited in October 2020 to assist in the selection of core for ongoing metallurgical testwork. Dr Arvidson visited the core storage facilities during this recent trip, met company personnel and inspected core to perform streak tests to assess the iron oxide mineralogy. BGS has relied on the opinion of Dr Arvidson in terms of the Project's integrity.

MRE

To determine the final MRE, the model has been subjected to an optimisation exercises to determine the proportion of the material defined that has a reasonable prospect of economic extraction via open pit mining methods.

No cut-off grade has been applied to the final MRE due to the general lack of grade sensitivity.

This represents the material considered by BGS to have reasonable prospects for eventual economic extraction potential.

The statements have been classified by Competent Person, Howard Baker (FAusIMM(CP)) in accordance with the PERC Standard 2017. It has an effective date of 9 May 2021. Mineral Resources that are not Mineral Reserves have no demonstrated economic viability. BGS and Beowulf are not aware of any factors (environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors) that have materially affected the MRE.

The quantity and grade of reported Inferred Mineral Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Mineral Resources as an Indicated or Measured Mineral Resource; and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.

BGS notes that the Mineral Resource has a reasonable prospect for eventual economic extraction but are not considered Mineral Reserves. Mineral Reserves are estimates of the tonnage and grade or quality of material contained in a Mineral Resource that can be economically mined and processed. To be considered a Mineral Reserve, modifying factors must be applied to the MRE as part of the preparation of a prefeasibility study ("PFS") or a feasibility study ("FS") as outlined in the PERC Standard. The estimated amount of saleable material contained in the final product must demonstrate a positive Net Present Value ("NPV") using an appropriate discount rate and must demonstrate that eventual extraction could be reasonably justified. The major categories of modifying factors include Mining; Processing; Metallurgical; Environmental; Location and infrastructure; Market factors; Legal (including land tenure and third-party ownership); Economic; Social, and Governmental.

Table ES-1: Mineral Resource Statement for the Kallak Project at a 0% Fe cut-off grade

 
 Deposit         Classification    Million     Density      Fe    FeO    SiO(2)   Al(2)    P       S 
                                                                                   O(3) 
                                    Tonnes    (g/cm(GBP)    (%)    (%)     (%)     (%)     (%)    (%) 
                                                   ) 
--------------  ----------------  --------  ------------  -----  -----  -------  ------  -----  ------ 
 Kallak North    Measured            16          3.5       33.6   10.5    43.4     2.9    0.04   0.002 
-------------- 
  Indicated                          95          3.3       27.0   7.1     49.8     4.5    0.03   0.002 
 
  Sub-Total                          111         3.3       28.0   7.6     48.9     4.3    0.03   0.002 
 -------------------------------  --------  ------------  -----  -----  -------  ------  -----  ------ 
  Inferred                           25          3.4       28.3   7.8     48.1     4.2    0.04   0.002 
 -------------------------------  --------  ------------  -----  -----  -------  ------  -----  ------ 
 Kallak South    Measured 
  North 
-------------- 
  Indicated                          21          3.3       26.9   7.2     49.3     4.9    0.04   0.003 
 
  Sub-Total                          21          3.3       26.9   7.2     49.3     4.9    0.04   0.003 
 -------------------------------  --------  ------------  -----  -----  -------  ------  -----  ------ 
  Inferred                            6          3.2       23.4   6.5     50.1     6.6    0.05   0.004 
 -------------------------------  --------  ------------  -----  -----  -------  ------  -----  ------ 
 Kallak South    Measured 
  South 
-------------- 
                 Indicated 
-------------- 
                 Sub-Total 
                ----------------  --------  ------------  -----  -----  -------  ------  -----  ------ 
  Inferred                            8          3.3       26.1   12.0    50.1     5.2    0.05   0.009 
 -------------------------------  --------  ------------  -----  -----  -------  ------  -----  ------ 
 Total           Measured            16          3.5       33.6   10.5    43.4     2.9    0.04   0.002 
--------------  ----------------  --------  ------------  -----  -----  -------  ------  -----  ------ 
  Indicated                          116         3.3       27.0   7.1     49.7     4.6    0.03   0.002 
 -------------------------------  --------  ------------  -----  -----  -------  ------  -----  ------ 
  Sub-Total                          132         3.3       27.8   7.5     48.9     4.4    0.03   0.002 
 -------------------------------  --------  ------------  -----  -----  -------  ------  -----  ------ 
  Inferred                           39          3.3       27.1   8.5     48.8     4.8    0.04   0.004 
 -------------------------------  --------  ------------  -----  -----  -------  ------  -----  ------ 
 

Notes:

(1) Mineral Resources, which are not Mineral Reserves, have no demonstrated economic viability.

(2) The effective date of the Mineral Resource is 9 May 2021.

(3) The Open Pit Mineral Resource Estimate was constrained within lithological and grade-based solids and within an optimised pit shell defined by the following assumptions; base case metal price of USD130 / tonne for a 65% Fe concentrate; Fe recovery of 71% at Kallak North, 86% at Kallak South North and 94% at Kallak South South; Fe concentrate grades of 68% at Kallak North, 70% at Kallak South North and 69% at Kallak South South; Processing costs of USD6.8 / t wet; Selling cost of USD21.0 / t wet concentrate; Mining cost of Ore of USD3.3 / t, mining cost of waste of USD3.0 / t and an incremental mining cost per 10 m bench of USD0.05 / t; Wall angles of 30deg within the overburden and 47.5deg in the fresh rock.

(4) Mineral Resources have been classified according to the PERC Standards 2017, by Howard Baker (FAusIMM(CP)), an independent Competent Person as defined in the PERC Standard 2017.

In total, BGS has derived a Measured and Indicated Mineral Resource of 132 Mt grading 27.8% Fe, 7.5% FeO, 48.9% SiO(2) , 4.4% Al(2) O(3) , 0.03% P and 0.002% S.

BGS has also defined an Inferred Mineral Resource of 39 Mt grading 27.1% Fe, 8.5% FeO, 48.8% SiO(2) , 4.8% Al(2) O(3) , 0.04% P and 0.004% S.

The pit optimisation undertaken shows a strip ratio of 1 ore tonne for every 1.22 waste tonne.

Exploration Targets

In addition to the MRE, BGS has updated the Exploration Target for the Project with inclusion of the Parkijaure permit area.

At Kallak North, material has been modelled below the currently classified resource. This material is unclassified at present but represents a valid target for future exploration. Based on the geological model created, along with the grades seen in Kallak North, BGS has reported an Exploration Target of between 3 Mt and 7.5 Mt grading between 20% Fe to 30% Fe. The potential quantity and grade are conceptual in nature as there has been insufficient exploration to estimate a Mineral Resource; and that it is uncertain if further exploration will result in the estimation of a Mineral Resource.

In the Kallak Permit area, a 'Gap' exists between Kallak South North and Kallak South South and represents a prospective untested mineralisation target. BGS estimated an approximate tonnage and grade of material lying between Kallak South North and Kallak South South. A simple wireframe was generated to allow for an approximate volume of mineralised material to be estimated with the thickness and orientation of this wireframe being based on the continuation of the mineralised units modelled at Kallak South North and Kallak South South along with the geophysical signature observed. Two drillholes exist in this area; both are shallow and did not intercept any mineralisation of material width or grade, although the southern drillhole, KAL10044, within the gap, did encounter some of reported Cu / Au mineralisation. Given the geophysical signature within the gap and the overall synform structure proposed, it is possible that the iron bearing lithologies lie below the two drillhole completed within this area.

Based on the wireframe created, along with the grades seen in Kallak South North and Kallak South South, BGS report an Exploration Target of between 25 Mt and 75 Mt grading between 20% Fe to 30% Fe. The potential quantity and grade are conceptual in nature as there has been insufficient exploration to estimate a Mineral Resource; and that it is uncertain if further exploration will result in the estimation of a Mineral Resource.

In the Parkijaure Permit area, mapping, sampling, geophysical surveys and SGU historical drilling within proximity to the Beowulf Permits has indicated the presence of further iron mineralisation and an extension to the mineralisation observed in the Kallak Permits.

Limited outcrop exists within the Parkijaure area and in general, the magnetic anomaly data is less intense than in the Kallak permit area. This is possibly a factor of the deeper glacial till material in the southern permits or potentially a more disseminated style of mineralisation.

BGS assessed all available data from the Parkijaure Permit and created simple trace lines along the magnetic anomalies considered strong enough to be related to significant iron mineralisation within the Parkijaure Permit.

Based on the trace lines created, having a total strike length of 4.5 km, limiting the depth of mineralisation to 200 m and the width of mineralisation to 30 m, BGS has reported an Exploration Target of between 45 Mt and 135 Mt grading between 20% Fe to 30% Fe. The potential quantity and grade are conceptual in nature as there has been insufficient exploration to estimate a Mineral Resource; and that it is uncertain if further exploration will result in the estimation of a Mineral Resource.

In total, BGS has reported an Exploration Target of between 73 Mt and 218 Mt grading between 20% Fe to 30% Fe. The potential quantity and grade are conceptual in nature as there has been insufficient exploration to estimate a Mineral Resource; and that it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Competent Person ("CP")

Mr Howard Baker of BGS is a resource geologist with 25 years' experience covering multiple commodities from early-stage exploration through to definitive feasibility studies. Mr Baker is the Managing Director of BGS and previously worked for the International Mining Consultancy, SRK Consulting (UK) Ltd ("SRK") where he was employed for eight years as a Principal Consultant and Practise Leader. In his time at SRK, he focussed on the management of Mineral Resource Estimates with a strong focus on technical quality management and compliancy to international reporting codes. In addition, he played a key role in advising on suitable exploration protocols and drill programmes and effectively assisted clients in the development of numerous large-scale projects. Prior to his time at SRK, Mr Baker lived and worked in Australia, working for Rio Tinto, BHP Billiton, Iluka Resources and Anaconda Nickel.

Mr Baker was educated in the United Kingdom, being a dual British and Australian citizen. He is a Chartered professional fellow (#224239) of the Australasian Institute of Mining and Metallurgy.

Mr Baker has extensive global experience in the geology and Mineral Resource Estimation of iron ore projects and also worked as a mine geologist and specialist resource geologist in the iron ore Pilbara district of Western Australia.

Mr Baker has reviewed the technical information included in this announcement and approves the disclosure of technical information in the form and context in which it appears, in his capacity as a CP as required under the AIM rules.

Enquiries:

Beowulf Mining plc

   Kurt Budge, Chief Executive Officer                   Tel: +44 (0) 20 7583 8304 

SP Angel (Nominated Adviser & Broker)

   Ewan Leggat / Stuart Gledhill / Adam Cowl         Tel: +44 (0) 20 3470 0470 

Blytheweigh (Financial PR & IR)

   Tim Blythe / Megan Ray                                     Tel: +44 (0) 20 7138 3204 

Cautionary Statement

Statements and assumptions made in this document with respect to the Company's current plans, estimates, strategies and beliefs, and other statements that are not historical facts, are forward-looking statements about the future performance of Beowulf. Forward-looking statements include, but are not limited to, those using words such as "may", "might", "seeks", "expects", "anticipates", "estimates", "believes", "projects", "plans", strategy", "forecast" and similar expressions. These statements reflect management's expectations and assumptions in light of currently available information. They are subject to a number of risks and uncertainties, including, but not limited to , (i) changes in the economic, regulatory and political environments in the countries where Beowulf operates; (ii) changes relating to the geological information available in respect of the various projects undertaken; (iii) Beowulf's continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential joint ventures and alliances, if any; (v) metal prices, particularly as regards iron ore. In the light of the many risks and uncertainties surrounding any mineral project at an early stage of its development, the actual results could differ materially from those presented and forecast in this document. Beowulf assumes no unconditional obligation to immediately update any such statements and/or forecast.

About Beowulf Mining plc

Beowulf Mining plc ("Beowulf" or the "Company") is an exploration and development company, listed on the AIM market of the London Stock Exchange and the Spotlight Exchange in Sweden.

Beowulf's purpose to be a responsible and innovative company that creates value for our shareholders, wider society and the environment, through sustainably producing critical raw materials, which includes iron ore, graphite and base metals, needed for the transition to a Green Economy and to address the Climate Emergency.

The Company's asset portfolio is diversified by commodity, geography and the development stage of its various projects.

The Company's most advanced project is the Kallak iron ore asset in northern Sweden. A potential 389 million tonne resource which can produce a 'market leading' concentrate of 71.5% iron content and is a potential source of supply for fossil-free steel production in Sweden for decades to come.

Fennoscandian Resources ("Fennoscandian"), a wholly-owned subsidiary, is pursuing a strategy to develop a resource and production base of graphite that can provide security of supply and contribute to Finland's ambitions of achieving battery manufacturing self-sufficiency, focusing on both natural flake graphite production and a Circular Economy/recycling strategy to produce high-value graphite products. The Company is also developing its knowledge in processing and manufacturing value-added graphite products, including anode material for lithium-ion batteries.

Since Fennoscandian was acquired by Beowulf in January 2016, the Company has invested approximately EUR2.2 million in graphite exploration, resource development, metallurgical testwork and the assessment of market applications for graphite supplied from its Aitolampi project, including lithium-ion battery applications.

Fennoscandian has recently signed a Memorandum of Understanding ("MoU") with Epsilon Advance Materials Limited ("EAMPL"). The MoU enables Fennoscandian to build its downstream capability, collaborating with a strong and innovative technology/processing partner, and for EAMPL to firmly establish itself in Finland, as a market-entry point for supplying pre-cursor anode material into Europe. The MoU addresses the development of a strategic processing hub for both natural flake and recycled graphite to be located in Finland.

In addition, a Scoping Study contract for the Aitolampi graphite project has been awarded to AFRY Finland Oy. The purpose of the Scoping Study is to verify the robustness of the work completed by Fennoscandian, and to provide a roadmap for the next project development stage, most likely a Pre-feasibility Study. The output of the Scoping Study will enable Fennoscandian to share information on the Aitolampi project and communicate with the local community and other important stakeholders.

In Kosovo, the Company owns approximately 48.4% of Vardar Minerals ("Vardar"), which is focus on exploration in the Tethyan Belt, a major orogenic metallogenic province for gold and base metals. Vardar is delivering exciting results for its Mitrovica licence which has several exploration targets, including lead, zinc, copper and gold. It also has the Viti licence which is showing potential for copper-gold porphyry mineralisation. With Beowulf's support, Vardar is focused on making a discovery.

Kallak is the foundation asset of the Company, but with Vardar and Fennoscandian, the Company has many opportunities to grow, each business area displaying strong prospects.

PERC Table 1

Notes

The following extracts are taken from the PERC Reporting Standard 2017 regarding the PERC Table 1 checklist and its use in the declaration of a Mineral Resource.

Table 1 is a check list and guideline to which those preparing reports on Exploration Results, Mineral Resources and Mineral Reserves should refer. The check list is not prescriptive and, as always, relevance and materiality are overriding principles which determine what information should be publicly reported.

Table 1, included at the end of the Standard, supplies an outline of items that should be considered when evaluating a minerals project. The importance of each item will vary with the specific project and it is recognised that, for some projects, other items may be relevant which are not included on the list.

Table 1 should be considered as a guide to facilitate a reasoned and balanced approach to reporting. However, many decisions, such as the classification of material as a Mineral Resource or a Mineral Reserve, remain a matter of professional judgement based on knowledge, experience, and industry practices.

Public disclosure is required of those items in Table 1 most likely to affect the accuracy of estimates made in the report. The authors of reports should both identify and evaluate these important factors in their reports.

The compilation, assessment, and Public Reporting of Table 1 must be undertaken for (i) the first-time declaration of Exploration Results, a Mineral Resource or a Mineral Reserve, and (ii) in instances where these items have materially changed from when they were last Publicly Reported for significant projects.

In the context of complying with the principles of the PERC Standard, the Competent Person should consider all of the items in the relevant sections of Table 1 on an 'if not, why not' basis within the supporting documentation. The Competent Person should complete an overall assessment of the relative importance of the Table 1 items in terms of their possible impact on the future development of the mineral project and the results of this assessment should be presented in the Public Report.

As this is the first-time declaration of Mineral Resources using the PERC standard, BGS has compiled Table 1 and is included in the following section. BGS considers all items referenced in Table 1 to have been fully disclosed within the technical report.

 
  ASSESSMENT CRITERIA               EXPLORATION                        MINERAL                       MINERAL 
                                      RESULTS                         RESOURCES                      RESERVES 
                                               Table 1 Part 1 - General 
 Purpose of Report        (i) The report includes a title page and Table of Contents, including figures 
                           and tables. 
                           (ii) The report has been prepared for Beowulf Mining PLC and is intended 
                           as a full evaluation of the Mineral Resource Potential of the Kallak Iron 
                           Ore Project under licence to Beowulf. The effective date of the report is 
                           9 May 2021 and no further work is outstanding to complete this update to 
                           the Mineral Resource model. 
                           (iii)The report is considered PERC compliant. 
                         ============================================================================================= 
 Project Outline          Baker Geological Services Ltd ("BGS") has been requested by Beowulf Mining 
                           PLC ("Beowulf" hereinafter also referred to as the "Company" or the "Client") 
                           to undertake a Mineral Resource Estimate ("MRE") and Exploration Target 
                           ("ET") generation on the Kallak Iron Ore Project (the "Project") located 
                           in Sweden. 
                         ============================================================================================= 
 History                  The Kallak deposit and iron mineralisation in the area has been known to 
                           exist since the 1940's. They were first investigated by the Swedish Geological 
                           Survey (SGU) during 1948, with seven diamond drillholes completed. SGU returned 
                           and investigated the area again in the early 1970's, then with six new drillholes. 
                           Comprehensive ground geophysical surveys were carried out in connection 
                           to these two campaigns. 
                           Historical exploration led to the establishment of a Mineral Resource reported 
                           in November 2014. This was compiled by Geovista AB, titled "Kallak North 
                           and South Mineral Resource update". Between 2010 and 2015 the company also 
                           completed various technical studies comprising a conceptual study, environmental 
                           impact assessment, metallurgical studies and logistical studies to guide 
                           the future development of the project. 
                         ============================================================================================= 
 Key Plan, Maps and       All maps have been provided with appropriate scale bars, compass directions 
  Diagrams                 and annotations and legends where required. 
                         ============================================================================================= 
 Project Location         The Project is in the Jokkmokk municipality, north of the Arctic Circle, 
  and Description          approximately 40 km west of Jokkmokk city centre and 80 km southwest of 
                           the major iron ore mining centre of Malmberget in the County of Norrbotten, 
                           northern Sweden. LKAB's Kiruna iron ore mine, the world's second largest 
                           underground mine, is located approximately 120 km to the northeast. The 
                           exploration permits are centred on latitude 66 47'N and longitude 19 08'E. 
                           Maps have been produced showing exploration and exploitation rights of Beowulf 
                           along with tables showing licence name, ID, area and expiration date. 
                         ============================================================================================= 
 Topography and Climate   The Project area comprises forested, low hilly ground close to a main paved 
                           road between Kvikkjokk and Jokkmokk. The principal land use is forestry, 
                           with the majority of the ground area being owned by a large local forestry 
                           company. Regional vegetation is generally comprised of mature pine, birch 
                           and spruce trees. The ground elevation varies between 300m and 450m above 
                           sea level in an area of undulating forested or logged ground forming a peninsula 
                           surrounded by Lake Parkijaure. The highest point is the Råvvåive 
                           hill at 481m located in the southeast part of the project area. 
                           Climatic conditions are typical of northern Sweden with temperate summers 
                           and cold winters. The summer months between June and August see temperatures 
                           ranging between 10degC and 25degC, in winter (November-April) the temperatures 
                           drop to between -5degC and -30degC. The annual rainfall for the area is 
                           approximately 530mm, ranging 72mm to 189mm per month, and falling as snow 
                           in winter. Snow covers the area for 183 days of the year attaining a thickness 
                           ranging from 0.6m to 1.2m in March. 
                         ============================================================================================= 
 Geology                  The Project is located within the Svecofennian shield, consisting of metamorphic, 
                           sedimentary, and volcanic rocks that are commonly between 1,900Mya and 1,870Mya. 
                           The area around Kallak, and the villages of Björkholmen and Randijaur, 
                           is dominated by mafic to intermediate volcanics and metavolcanics as well 
                           as gabbro, diorite and ultramafic rocks and their metamorphic equivalents. 
                           The bedrock of the area is thus predominantly mafic. 
                           The iron formations at Kallak are outcropping and consist of banded iron 
                           oxides interlayered with quartz, feldspar and some hornblende. The dominant 
                           host rock is a grey, altered volcanic unit. 
                           The deposits occur in a north-south oriented trend of altered sediments 
                           and felsic volcanic rocks of early Proterozoic age within granitic gneisses. 
                           The deposits are up to 300 m wide at surface outcrop and are located on 
                           topographically high ground. 
                           The iron-oxide mineralisation at the Project is associated with highly deformed 
                           and banded quartz-feldspar metamorphic units. These have been termed banded 
                           iron formations ("BIF") thought to have been created through typical volcano 
                           sedimentary processes. More recently, alternative descriptions have been 
                           given by the SGU (Claeson & Antal Lundin, 2020), most notably that the host 
                           lithology is termed a garnet-bearing quartz trachyte, formed in a stratiform-stratabound 
                           volcanogenic setting, possibly during subaerial processes. As part of the 
                           Mineral Resource Estimate, external consultants re-logged over 1,000 m of 
                           core. The main lithologies logged (and modelled) are, Schists (Biotite and 
                           Muscovite rich), Banded Iron Formations, Calcitic Marbles, Dolomitic Marbles, 
                           Amphibolite and Tillite. 
                         ============================================================================================= 
 Mineralogy               Historically, Kallak has been reported to contain the iron oxides Haematite 
                           and Magnetite. Recent studies undertaken as part of this update show that 
                           Maghemite is also believed to be contained within the iron oxide mineral 
                           assemblage. This was identified through an assessment of the logged lithology 
                           (designated HIF or MIF depending on the haematite or magnetite dominance), 
                           assay data, the magnetic susceptibility, FeO and Satmagan data, all of which 
                           provide an indication as to the mineralogy. Additionally, streak tests were 
                           carried out on sections of drill core where streaks of red through brown 
                           and black were observed, suggesting a transitional iron oxide mineral assemblage. 
                           The project area also contains zones of elevated copper ("Cu") and gold 
                           ("Au") mineralisation. Three distinct areas have been identified through 
                           drilling activities by Beowulf, running the length of the Project area with 
                           the elevated assay intersections predominantly lying on the boundaries of 
                           the iron mineralisation. Cu grades reach up to 1.6%, although this was the 
                           maximum possible Cu value using the assay method employed at the time. Au 
                           grades reach up to 0.75 g/t from testwork completed in April 2021 on those 
                           pulp samples where the Cu assay was more than 0.1%. In total, 30 samples 
                           were sent for Au assay with only five samples being below detection limit. 
                           The structure is also believed to control the mineralisation in places. 
                         ============================================================================================= 
 Mineral rights and       All exploration and exploitation permits are described within the report 
  land ownership           with appropriate maps and tables. 
                         ============================================================================================= 
 Legal Aspects and        A description of the Swedish mining industry, the mining tenure and the 
  Tenure                   licensing agreements are described within the report. 
                         ============================================================================================= 
 Licences and Permits     The status of licences and permits is given in the report. 
                         ============================================================================================= 
 Personal introduction    BGS has been unable to undertake a site visit to the Project due to the 
  into projects and        COVID-19 global pandemic. A site visit will be undertaken when possible. 
  verification of          BGS was supplied with a comprehensive core photograph library and has discussed 
  the data                 the Project in detail with Company Personnel and external consultants. In 
                           addition, the Project was visited by Dr Bo Arvidson of Bo Arvidson Consulting 
                           LLC in October 2020 and in 2013. Dr Arvidson is a Mineral Processing Engineer 
                           with over 50 years industry experience and is considered a Competent Person 
                           in his field. Dr Arvidson has a long history with the Project and visited 
                           in October 2020 to assist in the selection of core for ongoing metallurgical 
                           testwork. Dr Arvidson visited the core storage facilities during this recent 
                           trip, met company personnel and inspected core to perform streak tests to 
                           assess the iron oxide mineralogy. BGS has relied on the opinion of Dr Arvidson 
                           in terms of the Projects integrity. 
                         ============================================================================================= 
 
 
    ASSESSMENT CRITERIA               EXPLORATION                       MINERAL                     MINERAL 
                                         RESULTS                       RESOURCES                    RESERVES 
                                    Table 1 Part 2 - Sampling Techniques and Data 
 Type(s) of sampling         In total, including extensions, 151 diamond drillholes have been completed 
                              for a total of 31,814 m. 132 drillholes have been completed by Beowulf with 
                              the remainder by SGU. 
                              Beowulf commenced exploration in 2010 in the Kallak permit areas. Initial 
                              drilling in 2010 targeted Kallak North and the northern portion of Kallak 
                              South. Drilling in 2011 then progressed into the southern end of Kallak 
                              South. Follow-up campaigns in 2012 and 2013 then focussed on the higher-grade 
                              areas of KN and KSN. The last campaign in 2014 aimed to infill-drill all 
                              three areas to between 100 m by 100 m to 50 m by 50 m to allow for consistently 
                              spaced data to be generated for use in Mineral Resource estimation. 
                              Assaying of drill core samples has used accredited laboratories with standard 
                              XRF analysis being used. Analysis for FeO and Satmagan along with magnetic 
                              susceptibility measurements of drill core and pulp samples has taken place. 
                              Suitable density testwork has been completed on drill samples to allow a 
                              grade against density regression curve to be applied to the resource model. 
                              Quality assurance / quality control programmes have been completed by Beowulf 
                              with the use of blanks, standards, and duplicates. No material biases have 
                              been identified. 
                              All drill holes have been plotted on maps to illustrate the quantity of 
                              data available. 
                            ======================================================================================== 
 Drilling techniques         All drilling has been by diamond coring. 
                              Core recovery has been recorded by Beowulf during the geotechnical logging. 
                              In total, 4,605 core recovery measurements have been recorded across the 
                              2010, 2013 and 2014 drill programmes. 
                              The average core recovery recorded is 99.5%. BGS acknowledges that core 
                              recovery values below 90% do exist however these are considered minimal 
                              with most of these are lying outside of the mineralised bodies. A review 
                              of the drill core photographs also confirms that recovery within the mineralised 
                              zones is high and as such BGS considers that no bias exists in relation 
                              to the recovery. 
                            ======================================================================================== 
 Drill sample recovery       BGS does not consider the sample recovery to be a risk to the project. 
                            ======================================================================================== 
 Logging                     Prior to 2013, after extracting from the core barrel, the core was briefly 
                              logged with a handheld magnetic susceptibility meter directly in the field 
                              to provide a basis for later geological logging and sampling. The core boxes 
                              were transported from the Kallak site to the ALS Global ("ALS") laboratory 
                              facilities in Piteå (approximately 230 km along asphalt roads), where 
                              the core was logged geologically by JIMAB staff. 
                              Pre-2013, logging often did not adhere strictly to lithological contacts, 
                              but was often aligned to core box intervals. This has led to issues with 
                              sampling of mixed lithology types, which in turn affected the statistically 
                              distinct geochemical populations. This issue was identified in 2013 and 
                              was the catalyst to update the logging protocols. 
                              A review of logging protocols was conducted, following identification of 
                              the issue identified in 2013 , by Micon International Ltd ("Micon"), and 
                              updated documentation was put in place for all logging to ensure international 
                              best practices were in place. The review indicated that previous procedures 
                              were not being adhered to by all drillers, technicians and geologists and 
                              that there were gaps in the data collection. The following changes were 
                              thereby made to address the highlighted issues: 
                              -- Core handling issues at the drill rig were resolved. 
                              -- Daily progress reports from rig technicians. 
                               *    Additional checks of drilling and core quality at the 
                                    rigs, including checking for imperial and metric 
                                    measurement mix-ups. 
 
 
                              -- Geotechnical logging protocols set-up, including core recovery and RQD 
                              indices. 
                              -- Increasing the frequency of magnetic susceptibility measurements to every 
                              50 cm. 
                              -- Updated cross-sections, plans and database provided to the geological 
                              modelling team on a fortnightly basis. 
                              -- Logging adhered strictly to lithological contacts and not core box intervals. 
                              -- Geological logging codes updated. This included increasing the level 
                              of detail to allow for a more detailed assessment of grade variability. 
                              -- Undertaking frequent structural orientation measurements using laser 
                              scanning device, and 
                              -- Construction of own core logging facilities in Jokkmokk, approximately 
                              50 km from the project. 
                              Updated Protocols were adopted for all 2013 and 2014 holes. After construction 
                              in late 2013, all logging was undertaken in JIMAB's own facilities in Jokkmokk. 
                              The core boxes were transported by the drillers on a daily basis from the 
                              drill site to the secure facilities. The core boxes were then, after geotechnical, 
                              lithological and structural logging, shipped on sealed pallets by courier 
                              to ALS in Piteå for cutting and further processing of selected samples. 
                              In the logging facilities, the depth intervals of the drillers were checked, 
                              and every meter was marked out on the core boxes. The geotechnical features 
                              were logged to verify depth marks, number of fractures and RQD. Magnetic 
                              susceptibility was measured on a 50 cm intervals basis in mineralised sections 
                              and 1 m intervals outside of mineralisation. Lithology sections was set 
                              not to be shorter than 1 m, nor longer than 15 m. Assay sections do not 
                              overlap lithological contacts. 
                              In 2016, a total of 54 holes were re-logged to ensure consistency between 
                              drilling campaigns. BGS was supplied with a database including the re-logged 
                              material. 
                              Structural logging has taken place at the Project for 23 of the drillholes 
                              completed. 
                              After the sample mark-up is completed, the boxes were photographed. Photos 
                              were taken both dry and wet from a mounted camera, 1 m above the core. 
                              BGS was supplied with the full core photograph database which was used as 
                              a validation tool throughout the modelling exercise. The core photographs 
                              are high resolution, taken dry and wet. 
                            ======================================================================================== 
 Other sampling techniques   BGS is not aware of any other sampling techniques that effect the generation 
                              of the Mineral Resource Estimate. 
                            ======================================================================================== 
 Sub-sampling techniques     All core samples are split, crushed and pulverised by ALS Piteå, Sweden. 
  and sample preparation 
                            ======================================================================================== 
 Assay data and laboratory   After core-cutting, the samples are then crushed to sub 2 mm, split into 
  investigation               coarse sample and coarse reject material, then pulverised to sub 75 microns. 
                              A 30g sub-split of the pulverised material is used for subsequent assaying 
                              (XRF and FeO analysis) and 3 g for pycnometry density measurements (where 
                              applicable). 
                              As part of their standard preparation package, ALS implement quality control 
                              checks on the crushing and pulverising to ensure that the grain size requirements 
                              have been met. Following pulverisation, samples are securely shipped to 
                              ALS Loughrea in Ireland for assaying in batches containing boxes of 30 g 
                              samples in paper packets. 
                              All 2010 to 2014 samples were assayed for major oxide and element geochemistry 
                              by XRF with either of ALS methods XRF11b (2010 and 2011 samples) or XRF21b 
                              (2012 to 2014 samples). 
                              LOI is measured using thermogravimetry at 1,000 C (ALS code GRA05). 
                              In addition to XRF (+LOI), for pre-2013 samples, a small number of samples 
                              were analysed with ALS method Fe- VOL05, which gives the contents of Ferrous 
                              iron, Fe2+. This method allows for the relative proportions of magnetite 
                              to haematite to be calculated, since ferrous iron only occurs in magnetite 
                              (formula can be written as either Fe3O4 or FeO.Fe2O3) and not in haematite 
                              (formula Fe2O3). For the post-2013 campaigns, Fe-VOL05 has been conducted 
                              for every sample. 
                              In addition to the XRF and magnetic susceptibility measurements, the Company 
                              also conducted Satmagan measurements on 224 samples throughout Kallak North 
                              in 2013. 
                              A total of 22,778 magnetic susceptibility readings were recorded between 
                              1948 (SGU) and 2014 to assist with logging and sample selection. The readings 
                              have been used to assist with geological modelling but have not been used 
                              in the grade estimation. 
                              Beowulf has recently completed a magnetic susceptibility study using existing 
                              pulp samples. This was undertaken to assess the correlation between assay 
                              Fe%, FeO% and magnetic susceptibility and subsequently used for mineralogical 
                              studies. In total, 7,713 pulp magnetic susceptibility readings were taken. 
                              Three readings were taken for each pulp with an average value being calculated. 
                            ======================================================================================== 
 Verification of             BGS was supplied with a database from Beowulf, who, with the assistance 
  results                     of CSA Global were responsible for compiling all new and historical data 
                              into a single database. BGS and Beowulf discussed the database at various 
                              stages of the MRE with amendments being required as the data was verified. 
                              Drillhole data at Beowulf is stored in an Access database. 
                              Overall, the data was found to be in good condition with only minor errors 
                              and corrections being required. 
                              BGS has also been given access to a comprehensive core photo library which 
                              was used throughout the MRE to verify intersection intervals and material 
                              types. 
                              After a review of the available data and through the studies completed by 
                              Beowulf and BGS in verifying the data, BGS is confident that the quality 
                              of the data provided by Beowulf is suitable for use in the production of 
                              a Mineral Resource Estimate. 
                              Additionally, core was inspected by Independent Consultant, Dr Bo Arvidson 
                              in 2020. 
                            ======================================================================================== 
 Data location               Collar co-ordinates, as well as starting azimuth, for Company drillholes 
                              have been surveyed with high-resolution RTK-GPS surveying equipment, allowing 
                              for centimetre scale accuracy. The deviation from planned locations is generally 
                              small, typically within 1 m to 2 m, the azimuth has varied in some areas 
                              up to 10 to 15 at the most. 11 holes have been surveyed using low-resolution 
                              handheld GPS devices, as they have not been clearly marked in the field. 
                              It is recommended by that all collars are surveyed using RTK-GPS for all 
                              future exploration. 
                              For the Beowulf drilling, down-hole surveys have been conducted on 3 m intervals 
                              using Deviflex and IS-Gyro instruments depending on the drilling contractor. 
                              No issues with the surveys have been identified. 
                            ======================================================================================== 
 Data density and            Due to the amount of drilling across the Project, the risks associated with 
  distribution                the geological interpretation have been mitigated to allow continuous iron 
                              formation units to be modelled. The quantity of drilling data does decrease 
                              to the south although continuous iron formations are still possible to model 
                              in areas of sparser data. 
                              KN shows greater degrees of geological complexity at present, possibly due 
                              to the greater level of exploration focus and data available. 
                              Based on the work undertaken and the statistical validation steps carried 
                              out, BGS is confident that the geological models created honours the understanding 
                              of the local scale geology and grade distribution as accurately as possible 
                              given the data made available 
                            ======================================================================================== 
 Reporting Archives          BGS was supplied with a database from Beowulf , who with the assistance 
                              of CSA Global were responsible for compiling all new and historical data 
                              into a single database. 
                            ======================================================================================== 
 Audits or reviews           As previously mentioned, a review of logging protocols was conducted by 
                              Micon in 2013 with all recommendations taken on board. 
                            ======================================================================================== 
 
 
   ASSESSMENT CRITERIA              EXPLORATION                       MINERAL                      MINERAL 
                                       RESULTS                        RESOURCES                    RESERVES 
                                 Table 1 Part 3 - Reporting of Exploration Results 
 Exploration work          The Project was first investigated by the Swedish Geological Survey (SGU) 
  carried out by other      during 1948, with seven diamond drillholes completed. SGU returned and investigated 
  parties                   the area again in the early 1970's, then with six new drillholes. Comprehensive 
                            ground geophysical surveys were carried out in connection to these two campaigns. 
                            The geophysical data was analysed by Geovista in 2011 and 2012 (Mattsson, 
                            2011 and Mattsson, 2012). 
                          ========================================================================================= 
 Data compositing          Data compositing is undertaken to reduce the inherent variability that exists 
  (aggregation) methods.    within the population and to generate samples more appropriate to the scale 
                            of the mining operation envisaged. It is also necessary for the estimation 
                            process, as all samples are assumed to be of equal weighting and should therefore 
                            be of equal length. 
                            The estimation process assumes an equivalent weighting per composite. It is 
                            therefore necessary to discard or ignore remnant composites that are generated 
                            in the downhole compositing process to avoid a bias in the estimation. However, 
                            based on the results of a composite length analysis on each domain during 
                            the parameter selection stage, it was decided to use all samples, meaning 
                            no shorter lengths were discarded. Edge samples below a set value of 0.5 m 
                            were included in the previous sample down the hole. 
                            Due to the low variance of the Fe data, being the primary driver for the modelling 
                            process, it is also the opinion of BGS that all deposits are insensitive to 
                            variations in the composite length and the treatment of smaller sample lengths. 
                            The composite length was chosen using the Fe assay with the same length applied 
                            to all analytes. Kallak North, a soft boundary was selected due to the gradational 
                            contact between the units in both the magnetic and haematitic zones 
                          ========================================================================================= 
 Relationship between      The sample length within the raw drillhole database was assessed within the 
  mineralisation widths     modelled iron formation units. The results show that the average sample length 
  and intercept lengths     across all formations is 1.9 m with a minimum of 0.01 m and a maximum length 
                            of 10.8 m. 
                            In general, the spread of sample length is considered typical and each domain 
                            was considered on its own merits in terms of composite length selected. 
                          ========================================================================================= 
 Diagrams                  Maps, plans and sections are given within the report to show the data distribution 
                            across all deposits. 
                          ========================================================================================= 
 Balanced reporting        Due to the amount of data, summary statistics of the modelled domains is given 
                            and discussed in detail. 
                          ========================================================================================= 
 Other substantive         Discussion is provided regarding the historic mapping of the area as well 
  exploration data          as the metallurgical testwork completed in addition to the exploration drilling 
                            and geochemical analysis completed. 
                          ========================================================================================= 
 Further work              BGS believes that there is significant resource potential within the licence 
                            areas and has declared Exploration Targets accordingly that warrant further 
                            exploration. Additional alteration studies to assess the Cu/Au potential that 
                            is external to the iron mineralisation is warranted as well as within the 
                            iron formations to assess the project iron oxide distribution. Additional 
                            Davis Tube testwork is also considered of use to assess the concentrate grade 
                            potential from across all targets. 
                          ========================================================================================= 
 
 
    ASSESSMENT CRITERIA      EXPLORATION               MINERAL                           MINERAL 
                               RESULTS                RESOURCES                          RESERVES 
                     Table 1 Part 4 - Estimation and Reporting of Mineral Resources and 
                                               Mineral Reserves 
 Database integrity          BGS was supplied with a database from Beowulf, who, 
                              with the assistance of CSA Global were responsible 
                              for compiling all new and historical data into a 
                              single database. BGS and Beowulf discussed the database 
                              at various stages of the MRE with amendments being 
                              required as the data was verified. 
                              Drillhole data at Beowulf is stored in an Access 
                              database. 
                              Overall, the data was found to be in good condition 
                              with only minor errors and corrections being required. 
                              BGS has also been given access to a comprehensive 
                              core photo library which was used throughout the 
                              MRE to verify intersection intervals and material 
                              types. 
                              After a review of the available data and through 
                              the studies completed by Beowulf and BGS in verifying 
                              the data, BGS is confident that the quality of the 
                              data provided by Beowulf is suitable for use in 
                              the production of a Mineral Resource Estimate. 
                            ================================================================================ 
 Geological interpretation        BGS was supplied with a drillhole database for the 
                                   Project which was used to generate new wireframe 
                                   models for the dominant iron formations and host 
                                   geological units. These files were then used as 
                                   boundaries to create internal iron formations (based 
                                   on mineralogy and grade boundaries) and internal 
                                   waste units. 
                                   The modelling was undertaken in Leapfrog software 
                                   and used a combination of assay grade, magnetic 
                                   susceptibility, and logged lithology. In general, 
                                   an approximate Fe cut-off of 15% was used to guide 
                                   the contact of the iron formation with adjacent 
                                   units. 
                                   Additional domains were created within each of the 
                                   deposits based on statistical and geological observations, 
                                   namely the relationship between Fe and SiO2 along 
                                   with the magnetic susceptibility and logging to 
                                   differentiate between magnetite dominant and haematite 
                                   dominant domains. Transitional mineralogy has also 
                                   been identified from the FeO to Fe / Pulp Magnetic 
                                   Susceptibility relationship. 
                                   All domains created were statistically validated 
                                   during the modelling process to ensure valid domains 
                                   were created. 
                                   At Kallak North, the domains have been created: 
                                    *    Magnetic - Low Grade, internal to synform 
                                         (IFMN_KN_MAGH_LG) 
 
 
                                    *    Magnetic - Medium Grade, internal to synform 
                                         (IFMN_KN_MAGH_MG) 
 
 
                                    *    Magnetic - High Grade, internal to synform 
                                         (IFMN_KN_MAGH_HG) 
 
 
                                    *    Magnetic - External to synform (IFMN_KN2_HG and 
                                         IFMN_KN3_HG) 
 
 
                                    *    Haematite, non-magnetic - Low grade 
 
 
                                    *    Haematite, non-magnetic - Medium Grade 31% to 43% Fe 
                                         (IFMN_KN_HEM_GT_31) 
 
 
                                    *    Haematite, non-magnetic - High Grade >43% Fe 
                                         (IFMN_KN_HEM_GT_43) 
 
 
                                    *    Internal waste (IFMN_KN_INT1) 
 
 
                                   At Kallak North, a contact analysis study was completed 
                                   that shows a transitional grade contact between 
                                   the mineralised units. As such, a soft boundary 
                                   has been used in the grade estimation at Kallak 
                                   North. 
                                   At Kallak South North, the domains have been created: 
                                    *    Magnetic - IFMN_KSN1 to IFMN_KSN6 (not including 
                                         KSN4) 
 
 
                                    *    Magnetic - IFMN_KSN1_HG and IFMN_KSN2_HG 
 
 
                                    *    Haematite - IFMN_KSN_HEM1 and KSN4 
 
 
                                    *    Internal waste within IFMN_KSN1 (IFMN_KSN1_INT1 to 
                                         INT3) 
 
 
                                    *    Internal waste within IFMN_KSN2 (IFMN_KSN2_INT1 to 
                                         INT3) 
 
 
                                   At Kallak South South, the domains have been created: 
                                    *    IFMN_KSS1 to IFMN_KSS8 
 
 
                                    *    IFMN_KSS3_LG 
 
 
                                    *    IFMN_KSS4_HG 
 
 
                                    *    IFMN_KSS5_HG 
 
 
                                    *    Internal waste within IFMN_KSS2 (IFMN_KSS2_INT1) 
                            ================================================================================ 
 Estimation and              The MRE was completed in Leapfrog Software with 
  modelling techniques        additional statistical studies completed in Supervisor. 
                              The estimation process assumes an equivalent weighting 
                              per composite. It is therefore necessary to discard 
                              or ignore remnant composites that are generated 
                              in the downhole compositing process to avoid a bias 
                              in the estimation. However, based on the results 
                              of a composite length analysis on each domain during 
                              the parameter selection stage, it was decided to 
                              use all samples, meaning no shorter lengths were 
                              discarded. Edge samples below a set value of 0.5 
                              m were included in the previous sample down the 
                              hole. 
                              Due to the low variance of the Fe data, being the 
                              primary driver for the modelling process, it is 
                              also the opinion of BGS that all deposits are insensitive 
                              to variations in the composite length and the treatment 
                              of smaller sample lengths. 
                              Various composite lengths were selected with the 
                              composite length chosen using the Fe assay with 
                              the same length applied to all analytes. At Kallak 
                              North, a soft boundary was selected due to the gradational 
                              contact between the modelled zones. 
                              The composite files were used in a geostatistical 
                              study that enabled Ordinary Kriging ("OK") to be 
                              used as the main interpolation method. This was 
                              supplemented with an Inverse Distance Weighting 
                              algorithm to estimate grade for some of the domains 
                              with less sample support. 
                              The results of the variography were utilised to 
                              determine the most appropriate search parameters 
                              used in the grade estimate. 
                              The interpolation used an elliptical search following 
                              the predominant dip and dip direction of the geological 
                              zones with a variable orientation used within zones 
                              of variable dip and dip direction. 
                              For each domain where variography was possible, 
                              variography was completed on all assay fields being 
                              estimated into the block model, these being Fe, 
                              FeO, SiO2, Al2O3, P, Mn, S, CaO, MgO, TiO2, K2O, 
                              LOI and Pulp Magnetic Susceptibility. 
                              BGS created downhole variograms to fix the nugget 
                              followed by directional variograms. 
                              In most cases, the variograms produced showed reasonable 
                              structure, allowing reliable variogram models to 
                              be produced. The nugget and ranges are easily generated, 
                              providing an appropriate level of confidence in 
                              terms of both the short scale and longer-range grade 
                              continuity. 
                              Density was applied to the mineralised zones using 
                              a regression-based formula. 
                              The interpolated block model was validated through 
                              visual checks and a comparison of the mean input 
                              composite and output model grades. BGS is confident 
                              that the interpolated block grades are a reasonable 
                              reflection of the available sample data. 
                            ================================================================================ 
 Metal equivalents           No metal equivalents are used. 
  or other combined 
  representation 
  of multiple components 
                            ================================================================================ 
 Cut-off grades              BGS used an approximate 15% Fe cut-off to generate 
  or parameters               the mineralised units at Beowulf . No cut-off grade 
                              has been applied to the final Mineral Resource Statement 
                              due to the lack of grade sensitivity. 
                            ================================================================================ 
 Tonnage Factor/In-situ      As a result of the density testwork, BGS utilised 
  Bulk Density                a regression curve for the assignment of density 
                              to the iron formation units. The regression formula 
                              used is: 
                              Density = 0.0002x2 + 0.02x +2.6272 (where x is Fe%) 
                              The density and tonnage estimate is considered robust 
                              although further density testwork should be implemented 
                              with further exploration. 
                            ================================================================================ 
 Mining factors              To determine the final Mineral Resource Statement, 
  or assumptions              the model has been subjected to an optimisation 
                              exercises to determine the proportion of the material 
                              defined that has a reasonable prospect of economic 
                              extraction via an open pit mining method. The following 
                              assumptions have been made during the optimisation 
                              process: 
                              Base case metal price of USD130 / tonne for a 65% 
                              Fe concentrate. 
                              Fe recovery of 71% at Kallak North, 86% at Kallak 
                              South North and 94% at Kallak South South. 
                              Fe concentrate grades of 68% at Kallak North, 70% 
                              at Kallak South North and 69% at Kallak South South. 
                              Processing costs of USD6.8 / t wet 
                              Selling cost of USD21.0 / t wet concentrate. 
                              Mining cost of Ore of USD3.3 / t, mining cost of 
                              waste of USD3.0 / t and an incremental mining cost 
                              per 10 m bench of USD0.05 / t. 
                              Wall angles of 30deg within the overburden and 47.5deg 
                              in the fresh rock. 
                            ================================================================================ 
 Metallurgical factors       In late 2013, approximately 500t of material, from 
  or assumptions              the test mining sampling programme completed on 
                              a defined area of the Kallak North deposit in summer 
                              2013, was transported to a test facility in Outokumpu 
                              City, owned by GTK. The main portion of the material 
                              was a general composite bulk sample, representing 
                              all the test mined sections at Kallak North in proportion 
                              to their respective occurrence. 
                              Approximately 60t of the general composite bulk 
                              sample were tested during a two-week pilot campaign, 
                              primarily focusing on establishing recovery and 
                              product quality parameters for the magnetite content. 
                              Average iron content for the submitted sample was 
                              29.5%. The proportion of magnetite to haematite 
                              in the sample was approximately 3.4:1. 
                              The magnetite beneficiation circuit was conventional 
                              and straightforward, consisting of rod milling with 
                              rougher-scavenger cobbing low-intensity magnetic 
                              separation ("LIMS") preconcentration, followed by 
                              ball mill re-grinding together with six cleaner 
                              LIMS stages to achieve the final magnetite product. 
                              The grade and recovery levels were excellent. The 
                              amount of dry magnetite concentrate produced for 
                              downstream testwork was approximately 2.7t, grading 
                              at 69.4%Fe at a magnetite recovery of approximately 
                              95%. Average silica content in the final product 
                              was 3.9% and the levels of sulphur and phosphorous 
                              were insignificant, being below 0.01%. The end product 
                              fineness was 80% passing 25 microns. 
                              The secondary objective, to produce a concentrate 
                              of the haematite content, was successful in respect 
                              of the quality aspect. A sample of 0.36t of dry 
                              haematite iron concentrate was produced, at an average 
                              grade of 66.6%Fe, containing 3.3% silica, 0.08% 
                              phosphorous and less than 0.02% sulphur. The fineness 
                              was 80% passing 175 microns. Several different flow 
                              sheet options were tested in order to maximise the 
                              haematite recovery, without fully reaching optimised 
                              levels. The best beneficiation result was achieved 
                              using a combination of spiral separators, supported 
                              by High- Gradient Intensity Magnetic Separator ("HGIMS"), 
                              recovery remained at below 30%. The short testwork 
                              programme did not enable optimisation of the haematite 
                              beneficiation section. Process mineralogy studies 
                              proved that the haematite losses were mostly occurring 
                              in the very fine particle sizes. 
                              In 2015, a testwork programme was carried out with 
                              the assumption that a high-grade magnetite concentrate 
                              could be produced through the application of reverse 
                              flotation, and that the results would prove the 
                              suitability of the Kallak North magnetite concentrate 
                              for use in Direct Reduction Iron facilities and 
                              as chemical grade raw material. 
                              Excellent concentrate grades were obtained with 
                              over 71% Fe from the magnetite material in addition 
                              to a high-grade hematite concentrate, over 68% Fe. 
                              In 2021, 106 samples were selected for Davis Tube 
                              Testwork. The samples were selected across the range 
                              of FeO and Pulp Magnetic Susceptibility vales and 
                              was undertaken to assess the potential concentrate 
                              grade from samples of differing FeO and magnetic 
                              susceptibility ratios. 
                              All samples were pulverised to 45 microns for the 
                              testwork. 
                              The results showed, the Fe concentrate grade averages 
                              69%, being 68% at Kallak North and increasing to 
                              70% and 69% at Kallak South North and Kallak South 
                              South. The mass recovery increases to the south 
                              from 38% at Kallak North to 45% and 48% at Kallak 
                              South North and Kallak South South. Fe recovery 
                              also increases to the south from 71% at Kallak North 
                              and 86% and 94% at Kallak South North and Kallak 
                              South South. This indicates that the iron bearing 
                              domains are less transitional and dominated by a 
                              purer magnetite phase of mineralisation to the south 
                              of the project area. In addition, there is no haematite 
                              mineralisation modelled at Kallak South South potentially 
                              suggesting a lower strain environment that has resulted 
                              in limited alteration of the magnetite to haematite. 
                              It should be noted that less samples have been analysed 
                              at Kallak South North and Kallak South South compared 
                              to Kallak North and the results may be skewed by 
                              the quantum of data available. 
                            ================================================================================ 
 Mineral Resource                                                            No Reserves are currently being 
  estimate for conversion                                                     declared 
  to Mineral Reserves 
                            ============  ================================  ================================ 
 Cost and revenue                                                            No Reserves are currently being 
  factors.                                                                    declared 
                            ============  ================================  ================================ 
 Market assessment.                                                          No Reserves are currently being 
                                                                              declared 
                            ============  ================================  ================================ 
 Others                                    All resources reported are 
                                            within the licence boundaries. 
                            ============  ================================  ================================ 
 Classification                   To classify the Project, the following key indicators 
                                   were used: 
                                    *    Geological complexity 
 
 
                                    *    Quality and quantity of data used in the estimation 
 
 
                                    *    QAQC data 
 
 
                                    *    Density Data 
 
 
                                    *    Results of the geostatistical analysis, namely the 
                                         Variography and QKNA results, and 
 
 
                                    *    Quality of the estimated block model 
 
 
                                   Due to the amount of drilling across the Project, 
                                   the risks associated with the geological interpretation 
                                   have been mitigated to allow continuous iron formation 
                                   units to be modelled. The quantity of drilling data 
                                   does decrease to the south although continuous iron 
                                   formations are still possible to model in areas 
                                   of sparser data. 
                                   Kallak North shows greater degrees of geological 
                                   complexity at present, possibly due to the greater 
                                   level of exploration focus and data available. 
                                   The complexity of the Project is not in reality 
                                   related to the continuity of the iron formation 
                                   units, rather the complexity in the material types 
                                   within each formation. Complex interactions of magnetic 
                                   and nonmagnetic mineral phases exist with more haematitic 
                                   material being associated with fold hinges and other 
                                   structural features. At Kallak North, grade decreases 
                                   to towards the centre of the interpreted synform 
                                   and increases to the south where the haematite material 
                                   is located along the fold hinge. Poddy internal 
                                   zones of low grade / waste material also exist within 
                                   Kallak North that are hard to model due to the poddy 
                                   nature, being aplite and pegmatite intrusive material. 
                                   At Kallak South North, where it is assumed that 
                                   a continuation of the synform exists, structural 
                                   logging and a lack of data on a fold hinge does 
                                   not confirm this interpretation. Minor units / pods 
                                   of haematite material also exist. 
                                   Kallak South South contains the least amount of 
                                   data and a simple set of iron formation lenses has 
                                   been created. 
                                   The mineralogy within the magnetic domains is also 
                                   variable with tests suggesting that transitional 
                                   phases of magnetite and maghemite exist. This is 
                                   demonstrated through the relationship between Fe 
                                   and FeO / Magnetic Susceptibility and further highlighted 
                                   in the streak tests and Davis Tube Testwork carried 
                                   out. The Davis Tube Testwork does however show that 
                                   a high-grade concentrate can be produced from all 
                                   magnetic phases of material. 
                                   There is also a general lack of consensus regarding 
                                   the geological model and deposit type for the Project 
                                   with two model types being proposed. More recently, 
                                   SGU suggest that the Project could be a stratiform-stratabound 
                                   type that formed in a volcanogenic setting whereas 
                                   previous interpretations suggest a sedimentary/volcanic 
                                   ore or a chert-bearing banded iron formation. 
                                   Overall, BGS does however consider the geological 
                                   risk to be low with the distribution of the iron 
                                   bearing lithologies being well constrained by drilling 
                                   and the testwork carried out showing that a high-grade 
                                   concentrate is attainable from the Project. 
                                   The QAQC testwork implemented as part of the exploration 
                                   shows that no significant bias exists and that the 
                                   data provided is suitable for use in the MRE. 
                                   The data used in the geostatistical analysis resulted 
                                   in suitably reliable downhole variograms for all 
                                   zones where variography was carried out with robust 
                                   directional variograms being created. 
                                   BGS employed numerous validation techniques and 
                                   is confident that the estimated block grades are 
                                   a reasonable reflection of the input sample data. 
                                   The Project has been classified as containing Measured, 
                                   Indicated and Inferred Mineral Resources. Measured 
                                   Mineral Resources have only been applied at Kallak 
                                   North. Kallak South South has been limited to Inferred 
                                   Mineral Resources only due to the limited sample 
                                   data and simplistic geological interpretation. 
                                   The following guidelines were used to classify the 
                                   estimate. 
                                   Measured Mineral Resource have been assigned based 
                                   on the following criteria: 
                                    *    The upper portions of Kallak North with the greatest 
                                         concentration of drilling. 
 
 
                                    *    Where the Fe search volume = 1. 
 
 
                                    *    With a slope of regression greater than 0.8. 
 
 
                                    *    With an average number of samples greater then / 
                                         equal to 8. 
 
 
                                   Indicated Mineral Resource at Kallak North and Kallak 
                                   South North have been assigned based on the following 
                                   criteria: 
                                    *    Where the search volume = 1 
 
 
                                   Inferred Mineral Resource have been assigned to 
                                   zones with a low sample count and in zones of geological 
                                   uncertainty. 
                            ================================================================================ 
 Audits or reviews           No Independent audits or reviews of the Mineral 
                              Resource estimate has taken place although BGS comments 
                              that the results are in-line with historical estimates 
                              completed in 2013 and 2014 by Geovista. 
                            ================================================================================ 
 Discussion of relative      The Mineral Resource has been classified following 
  accuracy/confidence         the PERC 2017 standard and based on the definitions 
                              of Measured, Indicated and Inferred Mineral Resources. 
                            ================================================================================ 
 Schematic description       Multiple schematics showing the classified resource 
  of the principles           models are included in the report. 
  for reporting of 
  Mineral Resource 
  and Mineral Reserve 
                            ================================================================================ 
 

Glossary

Resource terminology

Mineral Resource - A Mineral Resource is a concentration or occurrence of solid material of economic interest in or on the Earth's crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. Mineral Resources are subdivided, in order of increasing geological confidence, into the following categories:

Inferred Mineral Resource - An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An Inferred Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that most of the Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. The 'Inferred' category is intended to cover situations where a mineral concentration or occurrence has been identified and limited measurements and sampling have been completed, but where the data are insufficient to allow the geological and/or grade or quality continuity to be confidently interpreted. Due to the uncertainty which may be attached to some Inferred Mineral Resources, it cannot be assumed, but normally would be expected, that a major part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration. Confidence in the estimate is usually not sufficient to allow the appropriate application of technical and economic parameters or to enable a reliable evaluation of economic viability. For this reason, there is no direct link from an Inferred Resource to any category of Mineral Reserves.

Indicated Mineral Resource - An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation. An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a Probable Mineral Reserve. An Indicated Mineral Resource requires that the nature, quality, amount and distribution of data are such as to allow the Competent Person to confidently interpret the geological framework and to assume geological continuity of mineralisation, with sampling at a pattern and spacing appropriate to the geological characteristics and complexity of mineralisation. Confidence in the estimate is sufficient to allow the application of technical and economic parameters, and to enable an evaluation of economic viability. 'Grade or quality' is to be interpreted broadly, to include all relevant chemical and mineralogical characteristics.

Measured Mineral Resource - A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation. A Measured Mineral Resource has a higher level of confidence than that applying to either an Indicated Mineral Resource or an Inferred Mineral Resource. It may be converted to a Proved Mineral Reserve or to a Probable Mineral Reserve. The occurrence of mineral(s) of economic interest may be classified as a Measured Mineral Resource when the nature, quality, amount and distribution of data are such as to leave no reasonable doubt, in the opinion of the Competent Person determining the Mineral Resource, that the tonnage, mineralogy, and grade or quality can be estimated to within close limits, and that any variation from the estimate would be unlikely to significantly affect potential economic viability. Confidence in the estimate is sufficient to allow the appropriate application of technical and economic parameters and to enable an evaluation of economic viability with a high level of confidence.

Other terms

Alumina - An oxide of aluminium, Al(2) O(3) ; the mineral corundum; an important constituent of clay minerals. In iron ore this is normally considered a deleterious element.

Aplite - A light-coloured igneous rock characterized by a fine-grained saccharoidal (i.e., aplitic) texture.

Azimuth - Direction of a horizontal line as measured on an imaginary horizontal circle, the horizontal direction reckoned clockwise from the meridian plane of the observer, expressed as the angular distance between the vertical plane passing through the point of observation and the poles of the Earth and the vertical plane passing through the observer and the object under observation.

Banded iron formation - Iron formation that shows marked banding, generally of iron-rich minerals and chert or fine-grained quartz.

Bi-modal population - Having or occurring with two modes. Statistics: a branch of applied mathematics concerned with the collection and interpretation of quantitative data and the use of probability theory to estimate population parameters.

Block modelling The process of generating a three-dimensional model of a mineral deposit where individual parent blocks are equally sized and ascribed certain physical properties and qualities (tonnage, density, volume, grade etc.).

Box and whisker - A graphic way to display the median, quartiles, and extremes of a data set on a number line to show the distribution of the data.

Certified reference materials - Controls or standards used to check the quality and metrological traceability of products, to validate analytical measurement methods, or for the calibration of instruments. A certified reference material is a particular form of measurement standard.

Collar - The mouth or opening of a borehole or the process of starting to drill a borehole.

Competent Person - A minerals industry professional who is a Member or Fellow of The Australasian Institute of Mining and Metallurgy, or of the Australian Institute of Geoscientists, or of a 'Recognised Professional Organisation', as included in a list available on the JORC and ASX websites. These organisations have enforceable disciplinary processes including the powers to suspend or expel a member.

Composite sample - The procedure by which the values of adjacent samples from boreholes are combined so that the value of the longer down-hole intervals can be assessed. The grade of each new interval is calculated on the basis of the weighted average of the original sample grades. These are usually weighted by length and possibly by specific gravity and core recovery.

Core - The long cylindrical piece of rock, about an inch in diameter, brought to surface by diamond drilling.

Core recovery - The amount of the drilled rock withdrawn as core in core drilling, generally expressed as a percentage of the total length of the interval cored.

Cut-off-Grade - The lowest grade of mineralized material that qualifies as ore in a given deposit; rock of the lowest assay included in an ore estimate.

Davis Tube Testwork - Is a laboratory test designed to separate small samples of strongly magnetic ores into strongly magnetic and weakly magnetic fractions. It has become a standard laboratory equipment used for the assessment of the separability of magnetic ores by low-intensity magnetic separators.

Deleterious elements - Minerals or elements present in ore and/or concentrates which are considered to reduce the VIU of iron ore, typically, silica, phosphorous, alumina.

Dip - The angle of a slope, vein, rock stratum, or borehole is measured from the horizontal plane downward.

Domaining - The process whereby geological zones/units are domained into discrete areas for further analysis.

Drillhole - Technically, a circular hole drilled by forces applied percussively; loosely and commonly, the name applies to a circular hole drilled in any manner.

Drill rig - A drill machine, complete with all tools and accessory equipment needed to drill boreholes.

Exploration - The search for coal, mineral, or ore by (1) geological surveys; (2) geophysical prospecting (may be ground, aerial, or both); (3) boreholes and trial pits; or (4) surface or underground headings, drifts, or tunnels. Exploration aims at locating the presence of economic deposits and establishing their nature, shape, and grade, and the investigation may be divided into (1) preliminary and (2) final.

Exploration Target - A statement or estimate of the exploration potential of a mineral deposit in a defined geological setting where the statement or estimate, quoted as a range of tonnes and a range of grade (or quality), relates to mineralisation for which there has been insufficient exploration to estimate a Mineral Resource.

Fold - A curve or bend of a planar structure such as rock strata, bedding planes, foliation, or cleavage. A fold is usually a product of deformation, although its definition is descriptive and not genetic and may include primary structures

Foliation - Repetitive layering in metamorphic rocks.

Gangue - The valueless minerals in an ore; that part of an ore that is not economically desirable but cannot be avoided in mining. It is separated from the ore minerals during concentration.

Geochemical analysis - The process through which scientists discover and unravel the chemical compounds that make up the earth, its atmosphere, and its seas.

Geochemistry - The study of the relative and absolute abundances of the elements and their nuclides (isotopes) in the Earth; the distribution and migration of the individual elements or suites of elements in the various parts of the Earth (the atmosphere, hydrosphere, lithosphere, etc.), and in minerals and rocks, and also the study of principles governing this distribution and migration. Geochemistry may be defined very broadly to include all parts of geology that involve chemical changes, or it may be focused more narrowly on the distribution of the elements.

Geophysical anomalies - Area where geophysical properties (e.g. radiometric, magnetic, electromagnetic, gravity) differ from surrounding areas and which may be the result of mineralisation.

Geophysical survey - The exploration of an area in which geophysical properties and relationships unique to the area are mapped by one or more geophysical methods.

Geostatistics - A methodology for the analysis of spatially correlated data. The characteristic feature is the use of variograms or related techniques to quantify and model the spatial correlation structure. Also includes the various techniques such as kriging, which utilize spatial correlation models.

Goethite - A dark or yellowish-brown mineral consisting of hydrated iron oxide, occurring typically as masses of fibrous crystals.

Grade - The relative quantity or the percentage of ore-mineral or metal content in an orebody.

Haematite - A reddish-black mineral consisting of ferric oxide and an important ore of iron ore.

Hinge - The locus of maximum curvature or bending in a folded surface, usually a line.

Iron - A strong, hard magnetic silvery-grey metal, the chemical element of atomic number 26, much used as a material for construction and manufacturing, especially in the form of steel.

Iron ore pellets - The product of an agglomeration process that mixes very fine pellet feed with a binder (e.g. a slurry of bentonite), with the mixture rolled into "green" balls. The product is then fired on a grate or in a kiln to produce the final indurated product, consisting of "balls" with about 8mm to 20mm. Similar to lump, pellets can be charged directly into a blast furnace or into a direct reduction plant. Pellets tend to have the highest value-in-use characteristics, and hence have generally commanded the highest pricing premium.

Kriging - In the estimation of Mineral Resources by geostatistical methods, the use of a weighted, moving-average approach both to account for the estimated values of spatially distributed variables, and also to assess the probable error associated with the estimates.

Loss on Ignition - A test used in inorganic analytical chemistry, particularly in the analysis of minerals. It consists of strongly heating a sample of the material at a specified temperature, allowing volatile substances to escape, until its mass ceases to change.

Magnetite - An isometric mineral, 8[FeOFe(2) O(3) ]; spinel group; forms series with jacobsite and with magnesioferrite; crystallizes in octahedra; metallic; black; strongly ferrimagnetic; an accessory mineral in many igneous rocks; a common detrital mineral; a major mineral in banded iron formations and magmatic iron deposits; an ore of iron.

Martite - Haematite resulting from oxidation and re-crystallisation of magnetite.

Mass Yield - The amount of material (concentrate) derived from the processing of mined ore expressed as a percentage of ore delivered to the processing plant and

Micron - A unit of length equal to one millionth of a metre, used in many technological and scientific fields.

Nugget Theoretically, at zero separation distance (lag = 0), the semivariogram value is 0. However, at an infinitesimally small separation distance, the semivariogram often exhibits a nugget effect, which is some value greater than 0. For example, if the semivariogram model intercepts the y-axis at 2, then the nugget is 2.

Open Pit - A mine that is entirely on surface. Also referred to as open-cut or open-cast mine.

Optimisation analysis - Determining the optimum ultimate pit of a mine is the base of mine planning. The optimum ultimate pit of a mine is defined as the "pit shell contour", which is the result of extracting the volume of material that provides the total maximum profit while satisfying the operational requirements of safe wall slopes.

Ordinary Kriging - Geostatistical estimation is a two-stage process: (i) studying the gathered data to establish the predictability of values from place to place in the study area; this study results in a graph known as a semi-variogram which models the difference between a value at one location and the value at another location according to the distance and direction between them; (ii) estimating values at those locations which have not been sampled. This process is known as kriging. The basic technique ordinary kriging uses a weighted average of neighbouring samples to estimate the unknown value at a given location. Weights are optimized using the semi-variogram model, the location of the samples and all the relevant inter-relationships between known and unknown values. The technique also provides a standard error which may be used to quantify confidence levels.

Ore - A naturally occurring solid material from which a metal or valuable mineral can be extracted profitably.

Overburden - Designates material of any nature, consolidated or unconsolidated, that overlies a deposit of useful materials, ores, or coal--esp. those deposits that are mined from the surface by open cuts.

Overall slope angle - The angle between the lowest toe and the highest crest inclusive of any haul roads.

Oxide - Term used to define geological unit which has been subject to oxidation and weathering.

Pegmatites - An exceptionally coarse-grained igneous rock, with interlocking crystals, usually found as irregular dikes, lenses, or veins, esp. at the margins of batholiths.

Phosphorous - A non-metallic element of the nitrogen group. Symbol, P. Never found free in nature but is widely distributed in combination with minerals. In iron and steel making Phosphorous has four major effects on iron: increased hardness and strength, lower solidus temperature, increased fluidity, and cold shortness.

Pycnometry - A standard vessel often provided with a thermometer for measuring and comparing the densities or specific gravities of liquids or solids.

Quality Assurance and Quality Control - The combination of quality assurance, the process or set of processes used to measure and assure the quality of a product, and quality control, the process of ensuring products and services meet consumer expectations.

Quartz - A hard mineral consisting of silica, found widely in igneous and metamorphic rocks and typically occurring as colourless or white hexagonal prisms.

Recovery - A measure of the efficiency of the extraction of saleable products from the initial ore expressed as a percentage.

Satmagan measurements - An inexpensive test which accurately measures the amount of magnetite in a sample. Systematic analysis of an ore body can determine if there is a direct relationship between the predicted mass of magnetic concentrate (Satmagan) versus the actual mass of concentrate from a variety of DTR tests.

Search ellipse - The volume which defines how far out to search for data to support a particular kriged estimate.

Scatterplot - A type of plot or mathematical diagram using Cartesian coordinates to display values for typically two variables for a set of data.

Sheath fold - Strongly non-cylindrical structures, which are often associated with shear zones.

Silica - The chemically resistant dioxide of silicon, SiO(2) . An industrial term for certain

Skarn - Name for the metamorphic rocks surrounding an igneous intrusive where it comes in contact with a limestone or dolostone formation.

Slag - Material from the iron blast furnace, resulting from the fusion of fluxstone with coke ash and the siliceous and aluminous impurities remaining after separation of iron from the ore. Slag is also produced in steelmaking. Formerly a solid waste, slag is now utilized for various purposes, chiefly in construction.

Specific gravity - The weight of a substance compared with the weight of an equal volume of pure water at 4 degrees C. Specific gravity is numerically equal to density given in grams per cubic centimetre or millilitre.

Standard deviation - The square root of the variance. A measure of dispersion of a set of data from its mean.

Stripping ratio - The volume of overburden (or waste material) required to be handled in order to extract some tonnage of ore. For example, a 3:1 stripping ratio means that mining one tonne of ore will require mining three tonnes of waste rock.

Sulphide - A mineral compound characterized by the linkage of sulphur with a metal or semimetal; e.g., galena, PbS, or pyrite, FeS(2) .

Sulphur - The chemical element of atomic number 16, a yellow combustible non-metal. that occurs widely in nature, especially in volcanic deposits, minerals, natural gas, and petroleum. It is used to make gunpowder and fertilizer, to vulcanize rubber, and to produce sulfuric acid.

Syncline - A trough or fold of stratified rock in which the strata slope upwards from the axis.

Synform - A fold whose limbs close downward in strata for which the stratigraphic sequence is unknown.

Titanium - A silvery-grey or iron-grey, metallic element. Symbol, Ti. Found in nature only in combined form; occurs chiefly in ilmenite (FeTiO(3) ), and in rutile and titanite. Used as an alloying agent with aluminium, molybdenum, manganese, iron, and other metals. Used in aircraft and missiles and has potential for use in desalination plants.

Trench - In geological exploration, a narrow, shallow ditch cut across a mineral deposit to obtain samples or to observe character.

Validation - A process whereby the accuracy of estimates is validated typically against known points in resource estimation.

Variance - The mean square deviation of the variable around the average value. It reflects the dispersion of the empirical values around its mean.

Variogram - A plot of the variance (one-half the mean squared difference) of paired sample measurements as a function of the distance (and optionally of the direction) between samples. Typically, all possible sample pairs are examined, and grouped into classes (lags) of approx. equal distance and direction. Variograms provide a means of quantifying the commonly observed relationship that samples close together will tend to have more similar values than samples far apart.

Variogram range - The range is the distance after which the variogram levels off. The physical meaning of the range is that pairs of points that are this distance or greater apart are not spatially correlated. The sill is the total variance contribution, or the maximum variability between pairs of points.

Vein - An epigenetic mineral filling of a fault or other fracture in a host rock, in tabular or sheetlike form, often with associated replacement of the host rock; a mineral deposit of this form and origin.

Volcanic - Characteristic of, pertaining to, situated in or upon, formed in, or derived from volcanoes.

Waste - The part of an ore deposit that is too low in grade to be of economic value at the time of mining, but which may be stored separately for possible treatment later or alternatively contains no economic minerals and must be mined in order to expose the mineralised material of economic interest.

Wireframe - A method of three-dimensional subsurface mapping commonly employed for the preparation of digital elevation models in surveying, hydrology, geology, and mining.

X-Ray Fluorescence - A non-destructive analytical technique used to determine the elemental composition of materials. XRF analysers determine the chemistry of a sample by measuring the fluorescent (or secondary) X-ray emitted from a sample when it is excited by a primary X-ray source.

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