30 July 2024
New Dog-Leg Target Delivers
Increase to Ewoyaa MRE
Drilling at the new Dog-Leg target
increases the Mineral Resource Estimate
for the Ewoyaa Lithium Project to 36.8Mt at 1.24%
Li2O
Atlantic Lithium Limited (AIM: ALL, ASX: A11, GSE: ALLGH, OTCQX:
ALLIF, "Atlantic Lithium" or the "Company"), the African-focused
lithium exploration and development company targeting to deliver
Ghana's first lithium mine, is pleased to announce an increase to
the JORC (2012) compliant Mineral Resource Estimate ("MRE" or
"Resource") at the Company's flagship Ewoyaa Lithium Project
("Ewoyaa" or the "Project") in Ghana, West Africa.
Highlights:
-
Total Mineral Resource Estimate for the Company's flagship
Ewoyaa Lithium Project increased to 36.8Mt at 1.24%
Li2O, reported in accordance with the JORC Code
(2012).
-
81% of the Total Resource now in the higher confidence
Measured and Indicated categories (3.7Mt at 1.37% in the Measured
category, 26.1Mt at 1.24% in the Indicated category and 7.0Mt @
1.15% Li₂O in the Inferred category).
-
MRE increase follows targeted drilling programme, undertaken
in 2023 and H1 2024, comprising sterilisation drilling to support
the plant and haul road design and resource conversion drilling,
converting Inferred resources to Indicated and Measured resources,
to provide mine plan optionality; new Dog-Leg target identified
through this process.
-
Drilling subsequently undertaken on the Dog-Leg target, where
the Company has identified a shallow-dipping, near-surface
mineralised pegmatite body with true thickness up to 35m, which
contributed 890,892 tonnes of the Resource increase to 36.8Mt at
1.24% Li2O.
-
Potential to grow the Resource further; step-out drilling
planned at five priority deposits and one new exploration target
identified for initial reverse circulation ("RC")
evaluation.
Commenting, Neil
Herbert, Executive Chairman of Atlantic Lithium,
said:
"We are pleased to report an
increase in the Mineral Resource for the Ewoyaa Lithium Project
to 36.8Mt at
1.24% Li2O, which reaffirms
Ewoyaa's status as one of the leading hard rock lithium
projects.
"The increase follows the limited
drilling programme completed recently, which was focused on supporting our mine
planning activities rather than expanding the resource base,
but through which we identified the Dog-Leg target,
which has added near-surface tonnes to the Ewoyaa
Resource. We
are pleased to see this lucky strike at Dog-Leg contributing an additional
circa 891,000
tonnes to the
enlarged 36.8Mt at 1.24% Li2O Resource.
"While our current focus remains firmly on advancing Ewoyaa
towards shovel-readiness, we recognise the significant
potential across our exploration portfolio to increase the Resource
further."
Figures and Tables referred to in this release can be viewed
in the PDF version available via this link:
http://www.rns-pdf.londonstockexchange.com/rns/3567Y_1-2024-7-30.pdf
Mineral Resource Estimate Upgrade
An upgraded MRE of 36.8Mt at 1.24%
Li2O was completed for the Ewoyaa deposit and
surrounding pegmatites; collectively termed the "Ewoyaa Lithium
Project".
The MRE increase follows a targeted drilling
programme aimed at supporting the mine build activities at the
Project. This comprised sterilisation drilling to support the plant
and haul road design and resource conversion drilling, aimed at
converting Inferred resources to Indicated and Measured, to provide
mine plan optionality. The drilling programme resulted in the
combined Measured and Indicated resource increasing to 81% of the
Total Mineral Resource (to 29.8 Mt at 1.26%
Li2O).
During drilling programme, the Dog-Leg target
was identified, with prioritised drilling subsequently undertaken,
which returned multiple broad and high-grade intersections, from
which the Company has identified a shallow-dipping, near-surface
mineralised pegmatite body with true thickness up to 35m. The
Dog-Leg target contributed 890,892 tonnes, comprising 332,100
tonnes at 1.01% Li2O Indicated and 558,792 tonnes at
1.13% Li2O Inferred, of the increase in resources to
36.8Mt at 1.24% Li2O.
The Mineral Resource is based on 168,015m of
drilling completed at the Project to date, inclusive of infill and
extensional drilling undertaken since the February 2023 MRE
reported by the Company, comprising 148,865m of reverse circulation
("RC"), 12,639m of diamond core ("DD"), 5,311m of reverse
circulation with diamond tail ("RCD") and 1,200m of reverse
circulation hydrology holes ("RCH").
The MRE includes a total of 3.7Mt at 1.37%
Li2O in the Measured category, 26.1Mt at 1.24%
Li2O in the Indicated category and 7.0Mt at 1.15%
Li2O in the Inferred category (refer Table
1). The independent MRE for Ewoyaa was completed by
Ashmore Advisory Pty Ltd ("Ashmore") of Perth, Western Australia,
with results tabulated in the Statement of Mineral Resources in
Table 1. The
Statement of Mineral Resources is reported in line with
requirements of the JORC Code (2012) and is therefore suitable for
public reporting. High-level Whittle optimisation was completed and
demonstrates reasonable prospects for eventual economic
extraction.
Table 1: Ewoyaa Mineral Resource
Estimate (0.5% Li2O Cut-off)
|
|
Measured Mineral
Resource
|
|
Type
|
Tonnage
|
Li2O
|
Cont. Lithium Oxide
|
|
|
Mt
|
%
|
kt
|
|
Primary
|
3.7
|
1.37
|
51
|
|
Total
|
3.7
|
1.37
|
51
|
|
|
|
|
|
|
|
Indicated Mineral
Resource
|
|
Type
|
Tonnage
|
Li2O
|
Cont. Lithium Oxide
|
|
|
Mt
|
%
|
kt
|
|
Weathered
|
0.5
|
1.08
|
5
|
|
Primary
|
25.6
|
1.25
|
319
|
|
Total
|
26.1
|
1.24
|
324
|
|
|
|
|
|
|
|
Inferred Mineral
Resource
|
|
Type
|
Tonnage
|
Li2O
|
Cont. Lithium Oxide
|
|
|
Mt
|
%
|
kt
|
|
Weathered
|
1.8
|
1.12
|
20
|
|
Primary
|
5.2
|
1.16
|
60
|
|
Total
|
7.0
|
1.15
|
80
|
|
|
|
|
|
|
|
Total Mineral Resource
|
|
Type
|
Tonnage
|
Li2O
|
Cont. Lithium Oxide
|
|
|
Mt
|
%
|
kt
|
|
Weathered
|
2.3
|
1.11
|
25
|
|
Primary
|
34.5
|
1.25
|
430
|
|
Total
|
36.8
|
1.24
|
455
|
|
|
|
|
|
|
Note:
The Mineral Resource has been compiled under the supervision of Mr.
Shaun Searle who is a director of Ashmore Advisory Pty Ltd and a
Registered Member of the Australian Institute of Geoscientists. Mr.
Searle has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity that he has undertaken to qualify as a Competent Person as
defined in the JORC Code.
All Mineral Resources figures reported in the table above
represent estimates at June 2024. Mineral Resource estimates are
not precise calculations, being dependent on the interpretation of
limited information on the location, shape and continuity of the
occurrence and on the available sampling results. The totals
contained in the above table have been rounded to reflect the
relative uncertainty of the estimate. Rounding may cause some
computational discrepancies.
Mineral Resources are reported in accordance with the
Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (The Joint Ore Reserves Committee Code -
JORC 2012 Edition).
Table 2 below
details the history of Mineral Resource Estimates reported by the
Company for the Ewoyaa Lithium Project to date, inclusive of the
MRE increase reported in this announcement.
Table 2: Ewoyaa Mineral Resource
Estimates Reported to Date
|
Date
|
Classification
|
Tonnage
|
Li2O
|
|
January
2020
|
Indicated
Mineral Resource
|
4.5
Mt
|
1.39
|
|
Inferred
Mineral Resource
|
10.0
Mt
|
1.27
|
|
Total Mineral
Resource
|
14.5 Mt
|
1.31
|
|
December
2021
|
Indicated
Mineral Resource
|
5.2
Mt
|
1.39
|
|
Inferred
Mineral Resource
|
16.1
Mt
|
1.28
|
|
Total Mineral
Resource
|
21.3 Mt
|
1.31
|
|
March 2022
|
Indicated
Mineral Resource
|
20.5
Mt
|
1.29
|
|
Inferred
Mineral Resource
|
9.6
Mt
|
1.19
|
|
Total Mineral
Resource
|
30.1 Mt
|
1.26
|
|
February
2023
|
Measured
Mineral Resource
|
3.5
Mt
|
1.37
|
|
Indicated
Mineral Resource
|
24.5
Mt
|
1.25
|
|
Inferred
Mineral Resource
|
7.4
Mt
|
1.16
|
|
Total Mineral
Resource
|
35.3 Mt
|
1.25
|
|
July 2024
|
Measured
Mineral Resource
|
3.7
Mt
|
1.37
|
|
Indicated
Mineral Resource
|
26.1
Mt
|
1.24
|
|
Inferred
Mineral Resource
|
7.0
Mt
|
1.15
|
|
Total Mineral
Resource
|
36.8 Mt
|
1.24
|
There are four main geometallurgical domains at
the Project (Primary P1 and P2 and their weathered subsets). Their
relative abundances, metallurgical recoveries and concentrate
grades are shown in Table 3. The tonnage and grade
distribution throughout the entire deposit is illustrated
graphically in Figure
1, where a mining bench breakdown using a 10m bench height
has been used. The grade tonnage curve for the Ewoyaa Lithium
Project Mineral Resource is shown in Figure 2.
Table 3: Material Types, Recoveries
and Concentrate Grades (recoveries based on laboratory
results)
|
|
Weathered
|
|
Geomet Type
|
Tonnage
|
Li2O
|
Cont. Lithium
|
Recovery
|
Conc. Grade
|
|
|
Mt
|
%
|
kt
|
%
|
Li2O (%)
|
|
P1
|
2.1
|
1.12
|
24
|
68
|
6.0
|
|
P2
|
0.2
|
1.03
|
2
|
50
|
6.0
|
|
Total
|
2.3
|
1.11
|
25
|
|
|
|
|
|
|
|
|
|
|
|
Primary
|
|
Geomet Type
|
Tonnage
|
Li2O
|
Cont. Lithium
|
Recovery
|
Conc. Grade
|
|
|
Mt
|
%
|
kt
|
%
|
Li2O (%)
|
|
P1
|
31.1
|
1.27
|
393
|
70
|
6.0
|
|
P2
|
3.5
|
1.06
|
37
|
50
|
5.5
|
|
Total
|
34.5
|
1.25
|
430
|
|
|
Note:
As per Table 1 above and metallurgical sign off in Competent
Persons section at end of report.
Figure 1: Ewoyaa Tonnage and Grade - 10m Bench
Elevation
Figure 2: Ewoyaa Grade - Tonnage Curve for Classified
Pegmatite Resource
A plan view of the Ewoyaa Lithium
Project prospect areas is shown in Figure 3, with a long section shown in
Figure 4 and
cross-section within the Ewoyaa Main indicated category zone shown
in Figure
5.
Figure 3: Ewoyaa Lithium Project prospect location map (all
pegmatite zones) - Asan is located approximately 2.2km northeast of
Kaampakrom
Figure 4: Long Section Z-Z' of Ewoyaa Main Wireframes and
Drilling (View towards 300°; Solid Colours = Resource Wireframes,
Wireframe Edges = Pegmatite Wireframes)
Figure 5: Cross Section A-A' of Ewoyaa Wireframes and
Drilling
Geology and Geological
Interpretation
The Project area lies within the
Birimian Supergroup, a Proterozoic volcano-sedimentary basin
located in Western Ghana. The Project area is underlain by three
forms of metamorphosed schist; mica schist, staurolite schist and
garnet schist. Several granitoids intrude the basin metasediments
as small plugs. These granitoids range in composition from
intermediate granodiorite (often medium grained) to felsic
leucogranites (coarse to pegmatoidal grain size), sometimes in
close association with pegmatite veins and bodies. Pegmatite
intrusions generally occur as sub-vertical dykes with two dominant
trends: either east-northeast (Abonko, Asan, Kaampakrom and Ewoyaa
Northeast) dipping sub-vertically northeast; or north-northeast
(Ewoyaa Main) and dip sub-vertically to moderately southeast to
east-southeast. Pegmatite thickness varies across the Project, with
thinner mineralised units intersected at Abonko and Kaampakrom
between 4 and 12m; and thicker units intersected at Ewoyaa Main
between 30 and 60m, and up to 100m at surface.
The Project area has two clearly
defined material types of spodumene bearing lithium mineralisation.
The Company has termed these material types as Pegmatite Type 1
("P1") and Pegmatite Type 2 ("P2"). P1 material is characterised by
coarse grained spodumene bearing pegmatite which exhibits very
coarse to pegmatoidal, euhedral to subhedral spodumene crystals. P2
material consists of medium grained spodumene, euhedral to
subhedral in shape and can compose up to 50% of the rock. The two
material types have different metallurgical recoveries.
Drill Methods
The database contains data for the
drilling conducted by the Company since 2018, with an overview of
drill types shown in Figure 6.
Figure 6: Drill Type Location Map
Drilling at the deposit extends to a
maximum drill depth of 386m and the mineralisation was modelled
from surface to a depth of approximately 380m below surface.
The estimate is based on good quality reverse circulation
("RC") and diamond core ("DD") drilling data. Drill hole
spacing is as close as 20m by 15m in some portions of the Ewoyaa
deposit; then spacing is predominantly 40m by 40m across the
Project and up to 80m by 80m in parts of lesser known
mineralisation.
The RC drilling used a combination of
5.25' and 5.75', face sampling hammers. The DD used PQ and HQ
(resulting in 85mm and 63.5mm diameter core respectively) diameter
core barrels. The DD holes were completed from surface with
PQ to maximise recovery in weathered zones, with reversion to HQ
once ground conditions improved within fresh material.
In 2018, Phase 1 RC holes were
completed on a nominal 100m by 50m grid pattern, targeting the
Ewoyaa Main mineralised system. Phases 2 to 5 reduced the wide
spacing to 80m by 40m and down to 40m by 40m in the well drilled
portions of the Project. Phase 5 was a major infill drilling
program down to 40m by 40m over most of the Project. Phases 6 and 7
included extensional drilling in areas of open mineralisation, as
well as close spaced infill drilling in portions of the Ewoyaa
deposit.
A summary of the drilling data within
the Ewoyaa Lithium Project Mineral Resource area is shown in
Table
4.
Table 4: Summary of Drilling at the
Project
|
Hole
Type
|
In
Database
|
In
Mineral Resource
|
|
Drill
holes
|
Drill
holes
|
Intersection
|
|
Number
|
Metres
|
Number
|
Metres
|
Metres
|
|
RCH
|
12
|
1,200
|
|
|
|
|
RC
|
1,048
|
148,865
|
722
|
106,609
|
19,580
|
|
RCD
|
36
|
5,311
|
33
|
4,881
|
786
|
|
DD
|
109
|
12,639
|
101
|
11,558
|
5,393
|
|
Total
|
1,205
|
168,015
|
856
|
123,048
|
25,759
|
Sampling Methodology
During Phase 1 and 2, RC drilling
bulk samples and splits were collected at the rig for every metre
interval drilled, the splits being undertaken using a riffle
splitter. Since Phase 3, RC samples were split with a rig mounted
cone spitter which took duplicate samples for quality control
purposes.
Diamond core was cut with a core saw
and selected half core samples totalling 2,131.1kg were dispatched
to Nagrom Laboratory in Australia for preliminary metallurgical
test work.
Selected core intervals were cut to
quarter core with a saw at one metre intervals or to geological
contacts; and since December 2018 were sent to Intertek Laboratory
in Tarkwa for sample preparation. Prior to that, samples were sent
to SGS Laboratory in Tarkwa for sample preparation.
Sample Preparation
Since December 2018, samples were
submitted to Intertek Tarkwa (SP02/SP12) for sample preparation.
Samples were weighed, dried and crushed to -2mm in a Boyd crusher
with an 800-1,200g rotary split, producing a nominal 1,500g split
crushed sample; which was subsequently pulverised in a LM2 ring
mill. Samples were pulverised to a nominal 85% passing 75µm.
All the preparation equipment was flushed with barren
material prior to the commencement of the job. Coarse reject
material was kept in the original bag. Lab sizing analysis
was undertaken on a nominal 1:25 basis. Final pulverised samples
(20g) were airfreighted to Intertek in Perth for
assaying.
Prior to December 2018, all Phase 1
samples were submitted to SGS Tarkwa for preparation (PRP100) and
subsequently forwarded to SGS Johannesburg and later SGS Vancouver
for analysis (ICP90A).
Sample Analysis Method
Since December 2018, samples were
sent to Intertek Laboratory in Perth for analysis (FP6/MS/OES).
FP6/MS/OES is an analysis for lithium and a suite of 21 other
elements. Detection limits for lithium range between 5ppm and
20,000ppm. The sodium peroxide fusion (in nickel crucibles)
is completed with hydrochloric acid to dissolve the sub-sample and
is considered a total dissolution. Analysis is conducted by
Inductively Coupled Plasma Mass Spectrometry ("ICP-MS").
Prior to December 2018, Phase 1
samples were submitted to SGS Johannesburg and later SGS Vancouver
for analysis (ICP90A). ICP90 is a 28 element combination
Na2O2 fusion with ICP-OES. ICP-MS was added
to some submissions for additional trace element characterisation
purposes.
All phase 1 SGS pulps were
subsequently sent to Intertek Laboratory Perth for re-analysis
(FP6/MS/OES) and included in the resource estimate.
Mineral Resource
Classification
The Project deposits show good
continuity of the main mineralised units which allowed the drill
hole intersections to be modelled into coherent, geologically
robust domains. Consistency is evident in the thickness of the
structure, and the distribution of grade appears to be reasonable
along and across strike.
The Mineral Resource was classified
as Measured, Indicated and Inferred Mineral Resource based on data
quality, sample spacing, and lode continuity. The Measured Mineral
Resource was confined to fresh rock within areas drilled at 20m by
15m along with robust continuity of geology and Li2O
grade. The Indicated Mineral Resource was defined within areas of
close spaced drilling of less than 40m by 40m, and where the
continuity and predictability of the lode positions was good.
In addition, Indicated Mineral Resource was classified in
weathered rock overlying fresh Measured Mineral Resource. The
Inferred Mineral Resource was assigned to transitional material,
areas where drill hole spacing was greater than 40m by 40m, where
small, isolated pods of mineralisation occur outside the main
mineralised zones, and to geologically complex zones.
The block model has an attribute
"class" for all blocks within the mineralisation wireframes coded
as either "mes" for Measured, "ind" for Indicated "inf" for
Inferred. The Mineral Resource classification is shown in
Figure
7 and Figure 8.
Figure 7: Mineral Resource Classification Plan
View
Figure 8: Mineral Resource Classification Oblique View -
Ewoyaa Main (Facing NE)
The extrapolation of the lodes along
strike and down-dip have been limited to distances of 40m.
Zones of extrapolation are classified as Inferred Mineral
Resource.
The JORC Code (2012) describes a
number of criteria which must be addressed in the documentation of
Mineral Resource estimates prior to public release of the
information. The criteria provide a means of assessing
whether or not parts of or the entire data inventory used in the
estimate are adequate for that purpose. The Mineral Resources
stated in this document are based on the criteria set out in
Table 1 of that Code. These criteria
are listed in Appendix 1 and Appendix 2.
Cut-off Grade
The Statement of Mineral Resources has been
constrained by the mineralisation solids, reported above a cut-off
grade of 0.5% Li2O. Whittle optimisations demonstrate
reasonable prospects for eventual economic extraction.
Estimation Methodology
A Surpac block model was created to
encompass the extents of the known mineralisation, including an
additional block model for the Asan prospect. The block model was
rotated on a bearing of 30°, with block dimensions of 10m NS by 10m
EW by 5m vertical with sub-cells of 2.5m by 2.5m by 1.25m.
The block model was estimated using Ordinary Kriging ("OK")
grade interpolation. The mineralisation was constrained by
pegmatite geology wireframes and internal lithium bearing
mineralisation wireframes prepared using a nominal 0.4%
Li2O cut-off grade and a minimum down-hole length of 3m.
The wireframes were used as hard boundaries for the
interpolation.
Bulk densities ranging between
1.7t/m3 and 2.78t/m3 were assigned in the
block model dependent on lithology, mineralisation and weathering.
These densities were applied based on 14,046 bulk density
measurements conducted by the Company on 101 DD holes and 35 RC
holes with diamond tails conducted across the breadth of the
Project. The measurements were separated using weathering surfaces,
geology and mineralisation solids, with averages assigned in the
block model.
Mining and Metallurgical Methods and
Parameters
It is assumed that the Ewoyaa Project
can be mined with open pit mining techniques. Preliminary
metallurgical test work indicates that there are four main
geometallurgical domains; weathered and fresh coarse grained
spodumene bearing pegmatite (P1); and weathered and fresh medium
grained spodumene bearing pegmatite (P2). From test work completed
to date at a 6.3mm crush, the P1 material produces a 6%
Li2O concentrate at approximately 70 to 85% recovery
(average 75% recovery), whilst P2 material produces 5.5 to 6%
Li2O concentrate at approximately 35 to 65% recovery
(average 47% recovery).
JORC Table 1, Section
1 (Sampling Techniques and Data) and
Section 2
(Reporting of Exploration Results) are included in Appendix 1.
JORC Table 1, Section
3 (Estimation and Reporting of
Mineral Resources) is included in Appendix 2.
End Note
1 Ore Reserves, Mineral
Resources and Production Targets
The information in this announcement
that relates to Ore Reserves, Mineral Resources and Production
Targets complies with the 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves (JORC Code). The Company is not aware of any new
information or data that materially affects the information
included in this announcement, the Ewoyaa Lithium Project
Definitive Feasibility Study announcement, dated 29 June 2023 (in
which the Company reported Ore Reserves and Production Targets in
respect of the Project), or the Grant of the Ewoyaa Mining Lease
announcement, dated 20 October 2023 (in which the Company reported
the revision of material assumptions for the Project). This
announcement and the announcements dated 29 June 2023 and 20
October 2023 are available at www.atlanticlithium.com.au.
2 Ewoyaa to become one of
the largest spodumene concentrate producers globally - Based on a
comparison of targeted spodumene concentrate production capacity
(ktpa, 100% basis) of select hard rock spodumene projects globally
(refer Company presentation dated
8 September
2023).
Competent Persons
Information in this announcement
relating to the exploration results is based on data reviewed by Mr
I. Iwan Williams (BSc. Hons Geology), General Manager - Exploration
of the Company. Mr Williams is a Member of the Australian Institute
of Geoscientists (#9088) who has in excess of 30 years' experience
in mineral exploration and is a Qualified Person under the AIM
Rules. Mr Williams consents to the inclusion of the information in
the form and context in which it appears.
Information in this announcement relating to Mineral Resources was
compiled by Shaun Searle, a Member of the Australian Institute of
Geoscientists. Mr Searle has sufficient experience that is relevant
to the style of mineralisation and type of deposit under
consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves' and is a Qualified Person under the AIM
Rules. Mr Searle is a director of Ashmore. Ashmore and the
Competent Person are independent of the Company and other than
being paid fees for services in compiling this report, neither has
any financial interest (direct or contingent) in the Company. Mr
Searle consents to the inclusion in the report of the matters based
upon the information in the form and context in which it
appears.
This announcement contains inside information
for the purposes of Article 7 of the Market Abuse Regulation (EU)
596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in
accordance with the Company's obligations under Article 17 of
MAR.
For any further information, please
contact:
Atlantic Lithium Limited
Neil Herbert (Executive Chairman)
Amanda Harsas (Finance Director and Company
Secretary)
|
|
www.atlanticlithium.com.au
|
|
|
IR@atlanticlithium.com.au
|
|
|
Tel: +61 2 8072
0640
|
|
SP
Angel Corporate Finance LLP
Nominated Adviser
Jeff Keating
Charlie Bouverat
Tel: +44 (0)20 3470 0470
|
Yellow Jersey PR
Limited
Charles
Goodwin
Bessie
Elliot
atlantic@yellowjerseypr.com
Tel: +44 (0)20 3004
9512
|
Canaccord Genuity
Limited
Financial
Adviser:
Raj Khatri (UK)
/
Duncan St John,
Christian Calabrese (Australia)
Corporate
Broking:
James
Asensio
Tel: +44 (0) 20 7523
4500
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Notes to Editors:
About Atlantic
Lithium
www.atlanticlithium.com.au
Atlantic Lithium is an AIM, ASX, GSE and
OTCQX-listed lithium company advancing its flagship project, the
Ewoyaa Lithium Project, a significant lithium spodumene pegmatite
discovery in Ghana, through to production to become the country's
first lithium-producing mine.
The Definitive Feasibility Study for the Project
indicates the production of 3.6Mt of spodumene concentrate over a
12-year mine life, making it one of the largest spodumene
concentrate mines in the world.
The Project, which was awarded a Mining Lease in
October 2023, is being developed under an earn-in agreement with
Piedmont Lithium Inc.
Atlantic Lithium holds a portfolio of lithium
projects within 509km2 and 774km2 of granted
and under-application tenure across Ghana and Côte d'Ivoire
respectively, which, in addition to the Project, comprises
significantly under-explored, highly prospective
licences.
APPENDIX 1
JORC Table 1, Section 1 - Sampling Techniques and
Data
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Criteria
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JORC Code
Explanation
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Commentary
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Sampling
techniques
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· Nature
and quality of sampling (e.g. cut channels, random chips, or
specific specialised industry standard measurement tools
appropriate to the minerals under investigation, such as down hole
gamma sondes, or handheld XRF instruments, etc). These examples
should not be taken as limiting the broad meaning of
sampling.
· Include
reference to measures taken to ensure sample representivity and the
appropriate calibration of any measurement tools or systems
used.
· Aspects
of the determination of mineralisation that are Material to the
Public Report. In cases where 'industry standard' work has been
done this would be relatively simple (eg 'reverse circulation
drilling was used to obtain 1 m samples from which 3 kg was
pulverised to produce a 30 g charge for fire assay'). In other
cases more explanation may be required, such as where there is
coarse gold that has inherent sampling problems. Unusual
commodities or mineralisation types (eg submarine nodules) may
warrant disclosure of detailed information.
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· RC drill
holes were routinely sampled at 1m intervals with a nominal 3-6kg
sub-sample split off for assay using a rig-mounted cone splitter at
1m intervals.
· DD holes
were quarter core sampled at 1m intervals or to geological contacts
for geochemical analysis.
· For
assaying, splits from all prospective ore zones (i.e. logged
pegmatites +/- interburden) were sent for assay. Outside of
these zones, the splits were composited to 4m using a portable
riffle splitter.
· Holes
without pegmatite were not assayed.
·
Approximately 5% of all samples submitted were standards and
coarse blanks. Blanks were typically inserted with the interpreted
ore zones after the drilling was completed.
·
Approximately 2.5% of samples submitted were duplicate
samples collected after logging using a riffle splitter or as a
second split using the rig mounted cone splitter at 1 m interval
and sent to an umpire laboratory. This ensured zones of interest
were duplicated and not missed during alternative routine splitting
of the primary sample.
· Prior to
the December 2018 - SGS Tarkwa was used for sample preparation
(PRP100) and subsequently forwarded to SGS Johannesburg for
analysis; and later SGS Vancouver for analysis (ICP90A).
· Post
December 2018 to present - Intertek Tarkwa was used for sample
preparation (SP02/SP12) and subsequently forwarded to Intertek
Perth for analysis (FP6/MS/OES - 21 element combination
Na2O2 fusion with combination OES/MS), and
also (4A/OM) for Na.
· ALS
Laboratory in Brisbane was used for the Company's initial due
diligence work programs and was selected as the umpire laboratory
since Phase 1. ALS conducts ME-ICP89, with a Sodium Peroxide
Fusion. Detection limits for lithium are 0.01-10%. Sodium
Peroxide fusion is considered a "total" assay technique for
lithium. In addition, 22 additional elements assayed with
Na2O2 fusion, and combination MS/ICP
analysis.
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Drilling
techniques
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· Drill
type (eg core, reverse circulation, open-hole hammer, rotary air
blast, auger, Bangka, sonic, etc) and details (eg core diameter,
triple or standard tube, depth of diamond tails, face-sampling bit
or other type, whether core is oriented and if so, by what method,
etc).
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· Seven
phases of drilling were undertaken at the Project using RC and DD
techniques. All the RC drilling used face sampling
hammers.
· Phase 1
and 2 programs used a 5.25 inch hammers while Phase 3 used a
5.75-inch hammer. Phase 4 through 7 used 5.5 inch
· All DD
holes were completed using PQ and HQ core from surface (85mm and
63.5mm).
· All DD
holes were drilled in conjunction with a Reflex ACT II tool; to
provide an accurate determination of the bottom-of-hole
orientation.
· All
fresh core was orientated to allow for geological, structural and
geotechnical logging by a Company geologist.
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Drill sample
recovery
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· Method
of recording and assessing core and chip sample recoveries and
results assessed.
· Measures
taken to maximise sample recovery and ensure representative nature
of the samples.
· Whether
a relationship exists between sample recovery and grade and whether
sample bias may have occurred due to preferential loss/gain of
fine/coarse material.
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· A
semi-quantitative estimate of sample recovery was completed for the
vast majority of drilling. This involved weighing both the
bulk samples and splits and calculating theoretical recoveries
using assumed densities. Where samples were not weighed,
qualitative descriptions of the sample size were recorded.
Some sample loss was recorded in the collaring of the RC
drill holes.
· DD
recoveries were measured and recorded. Recoveries in excess
of 95.8% have been achieved for the DD drilling program. Drill
sample recovery and quality is adequate for the drilling technique
employed.
· The DD
twin program has identified a positive grade bias for iron in the
RC compared to the DD results.
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Logging
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· Whether
core and chip samples have been geologically and geotechnically
logged to a level of detail to support appropriate Mineral Resource
estimation, mining studies and metallurgical studies.
· Whether
logging is qualitative or quantitative in nature. Core (or costean,
channel, etc) photography.
· The
total length and percentage of the relevant intersections
logged.
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· All
drill sample intervals were geologically logged by Company
geologists.
· Where
appropriate, geological logging recorded the abundance of specific
minerals, rock types and weathering using a standardised logging
system that captured preliminary metallurgical domains.
· All
logging is qualitative, except for the systematic collection of
magnetic susceptibility data which could be considered semi
quantitative.
· Strip
logs have been generated for each drill hole to cross-check
geochemical data with geological logging.
· A small
sample of washed RC drill material was retained in chip trays for
future reference and validation of geological logging, and sample
reject materials from the laboratory are stored at the Company's
field office.
· All
drill holes have been logged and reviewed by Company technical
staff.
· The
logging is of sufficient detail to support the current reporting of
a Mineral Resource.
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Sub-sampling techniques and
sample preparation
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· If core,
whether cut or sawn and whether quarter, half or all core
taken.
· If
non-core, whether riffled, tube sampled, rotary split, etc and
whether sampled wet or dry.
· For all
sample types, the nature, quality and appropriateness of the sample
preparation technique.
· Quality
control procedures adopted for all sub-sampling stages to maximise
representivity of samples.
· Measures
taken to ensure that the sampling is representative of the in situ
material collected, including for instance results for field
duplicate/second-half sampling.
· Whether
sample sizes are appropriate to the grain size of the material
being sampled.
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· RC
samples were cone split at the drill rig. For interpreted
waste zones the 1 or 2m rig splits were later composited using a
riffle splitter into 4m composite samples.
· DD core
was cut with a core saw and selected half core samples dispatched
to Nagrom Laboratory in Perth for preliminary metallurgical test
work.
· The
other half of the core, including the bottom-of-hole orientation
line, was retained for geological reference.
· The
remaining DD core was quarter cored for geochemical
analysis.
· Since
December 2018, samples were submitted to Intertek Tarkwa
(SP02/SP12) for sample preparation. Samples were weighed, dried and
crushed to -2mm in a Boyd crusher with an 800-1,200g rotary split,
producing a nominal 1,500g split crushed sample; which was
subsequently pulverised in a LM2 ring mill. Samples were
pulverised to a nominal 85% passing 75µm. All the preparation
equipment was flushed with barren material prior to the
commencement of the job. Coarse reject material was kept in
the original bag. Lab sizing analysis was undertaken on a
nominal 1:25 basis. Final pulverised samples (20g) were
airfreighted to Intertek in Perth for assaying.
· The vast
majority of samples were drilled dry. Moisture content was logged
qualitatively. All intersections of the water table were
recorded in the database.
· Field
sample duplicates were taken to evaluate whether samples were
representative and understand repeatability, with good
repeatability.
· Sample
sizes and laboratory preparation techniques were appropriate and
industry standard.
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Quality of assay data and
laboratory tests
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· The
nature, quality and appropriateness of the assaying and laboratory
procedures used and whether the technique is considered partial or
total.
· For
geophysical tools, spectrometers, handheld XRF instruments, etc,
the parameters used in determining the analysis including
instrument make and model, reading times, calibrations factors
applied and their derivation, etc.
· Nature
of quality control procedures adopted (eg standards, blanks,
duplicates, external laboratory checks) and whether acceptable
levels of accuracy (ie lack of bias) and precision have been
established.
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· Analysis
for lithium and a suite of other elements for Phase 1 drilling was
undertaken at SGS Johannesburg / Vancouver by ICP-OES after Sodium
Peroxide Fusion. Detection limits for lithium (10ppm - 100,000ppm).
Sodium Peroxide fusion is considered a "total" assay technique for
lithium.
· Review
of standards and blanks from the initial submission to Johannesburg
identified failures (multiple standards reporting outside control
limits). A decision was made to resubmit this batch and all
subsequent batches to SGS Vancouver - a laboratory considered to
have more experience with this method of analysis and sample type,
but also failed QAQC checks. All samples have subsequently
been analysed by Intertek Perth.
· Results
of analyses for field sample duplicates are consistent with the
style of mineralisation and considered to be representative.
Internal laboratory QAQC checks are reported by the laboratory,
including sizing analysis to monitor preparation and internal
laboratory QA/QC. These were reviewed and retained in the company
drill hole database.
· 155
samples were sent to an umpire laboratory (ALS) and/assayed using
equivalent techniques, with results demonstrating good
repeatability.
· Atlantic
Lithium's review of QAQC suggests Intertek Perth laboratories
performed within acceptable limits.
· No
geophysical methods or hand-held XRF units have been used for
determination of grades in the Mineral Resource.
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Verification of sampling and
assaying
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· The
verification of significant intersections by either independent or
alternative company personnel.
· The use
of twinned holes.
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Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic)
protocols.
· Discuss
any adjustment to assay data.
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·
Significant intersections were visually field verified by
company geologists and Shaun Searle of Ashmore during the 2019 site
visit.
· Drill
hole data was compiled and digitally captured by Company geologists
in the field. Where hand-written information was recorded, all
hardcopy records were kept and archived after
digitising.
· Phase 1
and 2 drilling programs were captured on paper or locked excel
templates and migrated to an MS Access database and then into
Datashed (industry standard drill hole database management
software). The Phase 3 to 6 programs were captured using
LogChief which has inbuilt data validation protocols. All
analytical results were transferred digitally and loaded into the
database by a Datashed consultant.
· The data
was audited, and any discrepancies checked by the Company personnel
before being updated in the database.
· Twin DD
holes were drilled to verify results of the RC drilling programs.
Results indicate that there is iron contamination in the RC
drilling process.
· Reported
drill hole intercepts were compiled by the Chief
Geologist.
·
Adjustments to the original assay data included converting Li
ppm to Li2O%.
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Location of data
points
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· Accuracy
and quality of surveys used to locate drill holes (collar and
down-hole surveys), trenches, mine workings and other locations
used in Mineral Resource estimation.
·
Specification of the grid system used.
· Quality
and adequacy of topographic control.
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· The
collar locations were surveyed in WGS84 Zone 30 North using DGPS
survey equipment, which is accurate to 0.11mm in both horizontal
and vertical directions. All holes were surveyed by qualified
surveyors. Once validated, the survey data was uploaded into
Datashed.
· RC drill
holes were routinely down hole surveyed every 6m using a
combination of EZ TRAC 1.5 (single shot) and Reflex Gyroscopic
tools.
· After
the tenth drill hole, the survey method was changed to Reflex Gyro
survey with 6m down hole data points measured during an end-of-hole
survey.
· All
Phase 2 and 3 drill holes were surveyed initially using the Reflex
Gyro tool, but later using the more efficient Reflex SPRINT tool.
Phases 4 through 7 drill holes were surveyed using a Reflex SPRINT
tool.
· LiDAR
survey Southern Mapping to produce rectified colour images and a
digital terrain model (DTM) 32km2, Aircraft C206 aircraft-mounted
LiDAR Riegl Q780 Camera Hasselblad H5Dc with 50mm Fixfocus
lens.
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Coordinate system: WGS84 UTM30N with accuracy to
±0.04.
· The
topographic survey and photo mosaic output from the survey is
accurate to 20mm. In addition, local site survey
data was used to generate the topographic surface for the Asan
area.
·
Locational accuracy at collar and down the drill hole is
considered appropriate for resource estimation purposes.
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Data spacing and
distribution
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· Data
spacing for reporting of Exploration Results.
· Whether
the data spacing and distribution is sufficient to establish the
degree of geological and grade continuity appropriate for the
Mineral Resource and Ore Reserve estimation procedure(s) and
classifications applied.
· Whether
sample compositing has been applied.
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·
The RC holes were initially drilled on 100m
spaced sections and 50m hole spacings orientated at 300° or 330°
with dips ranging from -50° to -60°. Planned hole orientations/dips
were occasionally adjusted due to pad and/or access
constraints.
· Hole
spacing was reduced to predominantly 40m spaced sections and 40m
hole spacings, with infill to 20m by 15m in the upper portions of
the Ewoyaa Main deposit. Holes are generally angled perpendicular
to interpreted mineralisation orientations at the
Project.
· Samples
were composited to 1m intervals prior to estimation.
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Orientation of data in
relation to geological structure
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· Whether
the orientation of sampling achieves unbiased sampling of possible
structures and the extent to which this is known, considering the
deposit type.
· If the
relationship between the drilling orientation and the orientation
of key mineralised structures is considered to have introduced a
sampling bias, this should be assessed and reported if
material.
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· The
drill line and drill hole orientation are oriented as close as
practicable to perpendicular to the orientation of the general
mineralised orientation.
· Most of
the drilling intersects the mineralisation at close to 90 degrees
ensuring intersections are representative of true
widths. It is possible that
new geological interpretations and/or infill drilling requirements
may result in changes to drill orientations on future
programs.
· No
orientation based sampling bias has been identified in the
data.
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Sample
security
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· The
measures taken to ensure sample security.
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· Samples
were stored on site prior to road transportation by Company
personnel to the SGS preparation laboratory.
· With the
change of laboratory to Intertek, samples were picked up by the
contractor and transported to the sample preparation facility in
Tarkwa.
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Audits or
reviews
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· The
results of any audits or reviews of sampling techniques and
data.
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· Prior to
the drilling program, a third-party Project review was completed by
an independent consultant experienced with the style of
mineralisation.
· In
addition, Shaun Searle of Ashmore reviewed drilling and sampling
procedures during the 2019 site visit and found that all procedures
and practices conform to industry standards.
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JORC Table 1, Section 2 - Reporting of Exploration
Results
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Criteria
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JORC Code
Explanation
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Commentary
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Mineral tenement and land
tenure status
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· Type,
reference name/number, location and ownership including agreements
or material issues with third parties such as joint ventures,
partnerships, overriding royalties, native title interests,
historical sites, wilderness or national park and environmental
settings.
· The security
of the tenure held at the time of reporting along with any known
impediments to obtaining a license to operate in the
area.
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· The Project
cover two contiguous licences the Mankessim (RL 3/55) and Mankessim
South (PL.3/109) licence.
· The Ministry
of Lands and Natural Resources granted a Mining Lease to Barari DV
Ghana Ltd. for the Ewoyaa Lithium Project on 19th October 2023,
extending over an area of 42.63 km2 or 203 cadastral blocks and
valid for an initial 15-year renewable period.
· The Ewoyaa
Lithium Project includes mineral resources defined within the
original Mankessim South PL, and as a consequence 28 cadastral
blocks were transferred from Green Metals Resources' PL.3/109 to
Barari DV Ghana's RL.3/55 and were incorporated into the Ewoyaa
Lithium Project Mining Lease, thus reducing the Mankessim South PL
size from 62 cadastral blocks to 34 cadastral blocks.
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Exploration done by other
parties
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· Acknowledgment
and appraisal of exploration by other parties.
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· Historical
trenching and mapping were completed by the Ghana Geological survey
during the 1960's. But for some poorly referenced historical
maps, none of the technical data from this work was located. Many
of the historical trenches were located, cleaned and re-logged. No
historical drilling was completed.
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Geology
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· Deposit type,
geological setting and style of mineralisation.
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·
Pegmatite-hosted lithium deposits are the target for
exploration. This style of mineralisation typically forms as dykes
and sills intruding or in proximity to granite source
rocks.
· Surface
geology within the Project area typically consists of sequences of
mica, staurolite and garnet-bearing pelitic schist and granite with
lesser pegmatite and mafic intrusives. Outcrops are typically
sparse and confined to ridge tops with colluvium and mottled
laterite blanketing much of the undulating terrain making
geological mapping challenging. The hills are often separated
by broad, sandy drainages.
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Drill hole
information
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· A summary of
all information material to the under-standing of the exploration
results including a tabulation of the following information for all
Material drill holes:
· easting and
northing of the drill hole collar
· elevation or
RL (Reduced Level - elevation above sea level in metres) of the
drill hole collar
· dip and
azimuth of the hole
· down hole
length and interception depth
· hole
length
· If the
exclusion of this information is justified on the basis that the
information is not Material and this exclusion does not detract
from the understanding of the report, the Competent Person should
clearly explain why this is the case.
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· Exploration
results are not being reported.
· All
information has been included in the appendices. No drill
hole information has been excluded.
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Data aggregation
methods
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· In reporting
Exploration Results, weighting averaging techniques, maximum and/or
minimum grade truncations (e.g. cutting of high grades) and cut-off
grades are usually Material and should be stated.
· Where
aggregate intercepts incorporate short lengths of high grade
results and longer lengths of low grade results, the procedure used
for such aggregation should be stated and some typical examples of
such aggregations should be shown in detail.
· The
assumptions used for any reporting of metal equivalent values
should be clearly stated.
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· Exploration
results are not being reported.
· Not applicable
as a Mineral Resource is being reported.
· No metal
equivalent values are being reported.
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Relationship between
mineralisation widths and intercept lengths
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· These
relationships are particularly important in the reporting of
Exploration Results.
· If the
geometry of the mineralisation with respect to the drill hole angle
is known, its nature should be reported.
· If it is not
known and only the down hole lengths are reported, there should be
a clear statement to this effect (e.g. 'down hole length, true
width not known').
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· The drill line
and drill hole orientation are oriented as close to
90° degrees to the orientation of the
anticipated mineralised orientation as practicable.
· The majority
of the drilling intersects the mineralisation between
60° and 80°
degrees.
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Diagrams
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· Appropriate
maps and sections (with scales) and tabulations of intercepts
should be included for any significant discovery being reported.
These should include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional views.
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· Relevant
diagrams have been included within the Mineral Resource report main
body of text.
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Balanced
Reporting
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· Accuracy and
quality of surveys used to locate drill holes (collar and down-hole
surveys), trenches, mine workings and other locations used in
Mineral Resource estimation.
· Where
comprehensive reporting of all Exploration Results is not
practicable, representative reporting of both low and high grades
and/or widths should be practiced to avoid misleading reporting of
Exploration Results.
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· All hole
collars were surveyed WGS84 Zone 30 North grid using a differential
GPS. All RC and DD holes were down-hole surveyed with a
north-seeking gyroscopic tool.
· Exploration
results are not being reported.
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Other substantive exploration
data
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· Other
exploration data, if meaningful and material, should be reported
including (but not limited to): geological observations;
geophysical survey results; geochemical survey results; bulk
samples - size and method of treatment; metallurgical test results;
bulk density, groundwater, geotechnical and rock characteristics;
potential deleterious or contaminating substances.
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· Results were
estimated from drill hole assay data, with geological logging used
to aid interpretation of mineralised contact positions.
· Geological
observations are included in the report.
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Further
work
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· The nature and
scale of planned further work (e.g. tests for lateral extensions or
depth extensions or large- scale step-out drilling).
· Diagrams
clearly highlighting the areas of possible extensions, including
the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive.
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· Follow
up RC and DD drilling may be
undertaken.
· Further
metallurgical test work may be required as the Project progresses
through the study stages.
· Drill spacing
is currently considered adequate for the current level of
interrogation of the Project.
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APPENDIX 2
JORC Table 1, Section 3 - Estimation and Reporting of
Mineral Resources
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Criteria
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JORC Code
Explanation
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Commentary
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Database
integrity
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· Measures taken
to ensure that data has not been corrupted by, for example,
transcription or keying errors, between its initial collection and
its use for Mineral Resource estimation purposes.
· Data validation
procedures used.
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· The database
has been systematically audited by Atlantic Lithium
geologists.
· All drilling
data has been verified as part of a continuous validation
procedure. Once a drill hole is imported into the database a
report of the collar, down-hole survey, geology, and assay data are
produced. This is then checked by an Atlantic Lithium
geologist and any corrections are completed by the database
manager.
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Site visits
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· Comment on any
site visits undertaken by the Competent Person and the outcome of
those visits.
· If no site
visits have been undertaken indicate why this is the
case.
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· A site visit
was conducted by Shaun Searle of Ashmore during February 2019.
Shaun inspected the deposit area, drill core/chips and
outcrop. During this time, notes and photos were taken.
Discussions were held with site personnel regarding drilling
and sampling procedures. No major issues were
encountered.
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Geological
interpretation
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· Confidence in
(or conversely, the uncertainty of) the geological interpretation
of the mineral deposit.
· Nature of the
data used and of any assumptions made.
· The effect, if
any, of alternative interpretations on Mineral Resource
estimation.
· The use of
geology in guiding and controlling Mineral Resource
estimation.
· The factors
affecting continuity both of grade and geology.
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· The confidence
in the geological interpretation is considered to be good and is
based on visual confirmation in outcrop and within drill hole
intersections.
· Geochemistry
and geological logging have been used to assist identification of
lithology and mineralisation.
· The Project
area lies within the Birimian Supergroup, a Proterozoic
volcano-sedimentary basin located in Western Ghana. The Project
area is underlain by three forms of metamorphosed schist; mica
schist, staurolite schist and garnet schist. Several granitoids
intrude the basin metasediments as small plugs. These
granitoids range in composition from intermediate granodiorite
(often medium grained) to felsic leucogranites (coarse to
pegmatoidal grain size), sometimes in close association with
pegmatite veins and bodies. Pegmatite intrusions generally occur as
sub-vertical dykes with two dominant trends: either east-northeast
or north-northeast and dip sub-vertically to moderately southeast
to east-southeast. Thickness varies across the Project, with
thinner mineralised units intersected at Abonko and Kaampakrom
between 4 to 12m; and thicker units intersected at Ewoyaa Main
between 30 to 60m.
· Infill drilling
has supported and refined the model and the current interpretation
is considered robust.
· Observations
from the outcrop of mineralisation and host rocks; as well as
infill drilling, confirm the geometry of the
mineralisation.
· Infill drilling
has confirmed geological and grade continuity.
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Dimensions
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· The extent and
variability of the Mineral Resource expressed as length (along
strike or otherwise), plan width, and depth below surface to the
upper and lower limits of the Mineral Resource.
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· The Project
Mineral Resource area extends over a north-south strike length of
4,390m (from 577,380mN - 581,770mN), and includes the 360m vertical
interval from 80mRL to -280mRL.
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Estimation and modelling
techniques
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· The nature and
appropriateness of the estimation technique(s) applied and key
assumptions, including treatment of extreme grade values,
domaining, interpolation parameters and maximum distance of
extrapolation from data points. If a computer assisted estimation
method was chosen include a description of computer software and
parameters used.
· The
availability of check estimates, previous estimates and/or mine
production records and whether the Mineral Resource estimate takes
appropriate account of such data.
· The assumptions
made regarding recovery of by-products.
· Estimation of
deleterious elements or other non-grade variables of economic
significance (eg sulphur for acid mine drainage
characterisation).
· In the case of
block model interpolation, the block size in relation to the
average sample spacing and the search employed.
· Any assumptions
behind modelling of selective mining units.
· Any assumptions
about correlation between variables.
· Description of
how the geological interpretation was used to control the resource
estimates.
· Discussion of
basis for using or not using grade cutting or capping.
· The process of
validation, the checking process used, the comparison of model data
to drill hole data, and use of reconciliation data if
available.
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· Using
parameters derived from modelled variograms, Ordinary Kriging
("OK") was used to estimate average block grades in three passes
using Surpac software. Linear grade estimation was deemed
suitable for the Cape Coast Mineral
Resource due to the geological control on mineralisation. The
extrapolation of the lodes along strike and down-dip has been
limited to a distance of 40m. Zones of extrapolation are
classified as Inferred Mineral Resource.
· It is assumed
that there are no by-products or deleterious elements as shown by
metallurgical test work.
· Li2O
(%), Fe Factored (%), K (%), Mn (%), Na (%) and Ti (ppm) were
interpolated into the block model, and subsequently converted to
their respective oxide values.
· A Surpac block
model was created to encompass the extents of the known
mineralisation, including an additional block model for the Asan
prospect. The block model was rotated on a bearing of 30°, with
block dimensions of 10m NS by 10m EW by 5m vertical with sub-cells
of 2.5m by 2.5m by 1.25m. The
parent block size dimension was selected on the results obtained
from Kriging Neighbourhood Analysis and also in consideration of
two predominant mineralisation orientations of 30° and 100 to
120°.
· An orientated
'ellipsoid' search was used to select data and adjusted to account
for the variations in lode orientations, however all other
parameters were taken from the variography derived from Domains 1,
2, 3, 4, 7 and 8. Up to three passes were used for each
domain. First pass had a range of 50m, with a minimum of 8
samples. For the second pass, the range was extended to 100m,
with a minimum of 4 samples. For the third pass, the range
was extended to 200m, with a minimum of 1 or 2 samples. A maximum
of 16 samples was used for each pass with a maximum of 4 samples
per hole.
· No assumptions
were made on selective mining units.
· Correlation
analysis was conducted on the domains at Ewoyaa Main.
It is evident that Li2O has little correlation
with any of the other elements presented in the table. There is a
strong correlation between iron and titanium.
· The
mineralisation was constrained by pegmatite geology wireframes and
internal lithium bearing mineralisation wireframes prepared using a
nominal 0.4% Li2O cut-off grade and a minimum down-hole
length of 3m. The wireframes were used as hard boundaries for the
interpolation.
· Statistical
analysis was carried out on data from 93 mineralised domains.
Following a review of the population histograms and log
probability plots and noting the low coefficient of variation
statistics, it was determined that the application of high grade
cuts was not warranted.
· Validation of
the model included detailed visual validation, comparison of
composite grades and block grades by northing and elevation and a
nearest neighbour check estimate. Validation plots showed
good correlation between the composite grades and the block model
grades.
|
|
Moisture
|
· Whether the
tonnages are estimated on a dry basis or with natural moisture, and
the method of determination of the moisture content.
|
· Tonnages and
grades were estimated on a dry in situ basis.
|
|
Cut-off
parameters
|
· The basis of
the adopted cut-off grade(s) or quality parameters
applied.
|
· The Statement
of Mineral Resources has been constrained by the mineralisation
solids and reported above a cut-off grade of 0.5% Li2O.
Whittle optimisations demonstrate reasonable prospects for eventual
economic extraction. Preliminary metallurgical test work indicates
that there are four main geometallurgical domains; weathered and
fresh coarse grained spodumene bearing pegmatite (P1); and
weathered and fresh medium grained spodumene bearing pegmatite
(P2). From test work completed to date at a 6.3mm crush, the P1
material produces a 6% Li2O concentrate at approximately
70 to 85% recovery (average 75% recovery), whilst P2 material
produces 5.5 to 6% Li2O concentrate at approximately 35
to 65% recovery (average 47% recovery).
|
|
Mining factors or
assumptions
|
· Assumptions
made regarding possible mining methods, minimum mining dimensions
and internal (or, if applicable, external) mining dilution. It is
always necessary as part of the process of determining reasonable
prospects for eventual economic extraction to consider potential
mining methods, but the assumptions made regarding mining methods
and parameters when estimating Mineral Resources may not always be
rigorous. Where this is the case, this should be reported with an
explanation of the basis of the mining assumptions made.
|
· Ashmore has
assumed that the deposit could be mined using open pit mining
techniques.
· A high level
Whittle optimisation of the Mineral Resource supports this
view.
|
|
Metallurgical factors or
assumptions
|
· The
basis for assumptions or predictions regarding metallurgical
amenability. It is always necessary as part of the process of
determining reasonable prospects for eventual economic extraction
to consider potential metallurgical methods, but the assumptions
regarding metallurgical treatment processes and parameters made
when reporting Mineral Resources may not always be rigorous. Where
this is the case, this should be reported with an explanation of
the basis of the metallurgical assumptions made.
|
· Scoping and PFS
level metallurgical test work has been conducted on the
Ewoyaa material types. Test work indicates that there are
four main geometallurgical material types in occurrence at the
Project, with their relative abundances, concentrate grades and
recoveries shown below, including a 4% discount factor for bench
scale to mine scale efficiencies.
|
|
Weathered
|
|
Geomet
|
Tonnage
|
Li2O
|
Rec
|
Conc.
|
|
|
Mt
|
%
|
%
|
Li2O (%)
|
|
P1
|
2.1
|
1.12
|
68
|
6.0
|
|
P2
|
0.2
|
1.03
|
50
|
6.0
|
|
Total
|
2.3
|
1.11
|
|
|
|
|
|
|
|
|
|
|
Primary
|
|
Geomet
|
Tonnage
|
Li2O
|
Rec
|
Conc.
|
|
|
Mt
|
%
|
%
|
Li2O (%)
|
|
P1
|
31.1
|
1.27
|
70
|
6.0
|
|
P2
|
3.5
|
1.06
|
50
|
5.5
|
|
Total
|
34.5
|
1.25
|
|
|
|
|
Environmental factors or
assumptions
|
·
Assumptions made regarding possible waste and process residue
disposal options. It is always necessary as part of the process of
determining reasonable prospects for eventual economic extraction
to consider the potential environmental impacts of the mining and
processing operation. While at this stage the determination of
potential environmental impacts, particularly for a greenfields
project, may not always be well advanced, the status of early
consideration of these potential environmental impacts should be
reported. Where these aspects have not been considered this should
be reported with an explanation of the environmental assumptions
made.
|
· No
assumptions have been made regarding environmental factors.
The Company will work to mitigate environmental impacts as a
result of any future mining or mineral processing.
|
|
Bulk
density
|
· Whether
assumed or determined. If assumed, the basis for the assumptions.
If determined, the method used, whether wet or dry, the frequency
of the measurements, the nature, size and representativeness of the
samples.
· The bulk
density for bulk material must have been measured by methods that
adequately account for void spaces (vugs, porosity, etc), moisture
and differences between rock and alteration zones within the
deposit.
· Discuss
assumptions for bulk density estimates used in the evaluation
process of the different materials.
|
· Bulk
density measurements were completed on selected intervals of
diamond core drilled at the deposit. The measurements were
conducted at the Cape Coast core processing facility using the
water immersion/Archimedes method. The weathered samples were
coated in paraffin wax to account for porosity of the weathered
samples.
· A total
of 14,046 measurements were conducted on the Cape Coast
mineralisation, with samples obtained from oxide, transitional and
fresh material.
· Bulk
densities ranging between 1.7t/m3 and
2.78t/m3 were assigned in the block model dependent on
lithology, mineralisation and weathering.
|
|
Classification
|
· The
basis for the classification of the Mineral Resources into varying
confidence categories.
· Whether
appropriate account has been taken of all relevant factors (ie
relative confidence in tonnage/grade estimations, reliability of
input data, confidence in continuity of geology and metal values,
quality, quantity and distribution of the data).
· Whether
the result appropriately reflects the Competent Person's view of
the deposit.
|
· The
Mineral Resource estimate is reported here in compliance with the
2012 Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves' by the Joint Ore
Reserves Committee (JORC). The Cape Coast Mineral Resource
was classified as Measured, Indicated and Inferred Mineral Resource
based on data quality, sample spacing, and lode continuity. The
Measured Mineral Resource was confined to fresh rock within areas
drilled at 20m by 15m along with robust continuity of geology and
Li2O grade. The Indicated Mineral Resource was defined
within areas of close spaced drilling of less than 40m by 40m, and
where the continuity and predictability of the lode positions was
good. In addition, Indicated Mineral Resource was classified
in weathered rock overlying fresh Measured Mineral Resource. The
Inferred Mineral Resource was assigned to transitional material,
areas where drill hole spacing was greater than 40m by 40m, where
small, isolated pods of mineralisation occur outside the main
mineralised zones, and to geologically complex zones.
· The
input data is comprehensive in its coverage of the mineralisation
and does not favour or misrepresent in-situ mineralisation.
The definition of mineralised zones is based on high level
geological understanding producing a robust model of mineralised
domains. This model has been confirmed by infill drilling
which supported the interpretation. Validation of the block
model shows good correlation of the input data to the estimated
grades.
· The
Mineral Resource estimate appropriately reflects the view of the
Competent Person.
|
|
Audits or
reviews
|
· The
results of any audits or reviews of Mineral Resource
estimates.
|
· Internal
audits have been completed by Ashmore which verified the technical
inputs, methodology, parameters and results of the
estimate.
|
|
Discussion of relative
accuracy/ confidence
|
· Where
appropriate a statement of the relative accuracy and confidence
level in the Mineral Resource estimate using an approach or
procedure deemed appropriate by the Competent Person. For example,
the application of statistical or geostatistical procedures to
quantify the relative accuracy of the resource within stated
confidence limits, or, if such an approach is not deemed
appropriate, a qualitative discussion of the factors that could
affect the relative accuracy and confidence of the
estimate.
· The
statement should specify whether it relates to global or local
estimates, and, if local, state the relevant tonnages, which should
be relevant to technical and economic evaluation. Documentation
should include assumptions made and the procedures used.
· These
statements of relative accuracy and confidence of the estimate
should be compared with production data, where
available.
|
· The
geometry and continuity have been adequately interpreted to reflect
the applied level of Measured, Indicated and Inferred Mineral
Resource. The data quality is good, and the drill holes have
detailed logs produced by qualified geologists. A recognised
laboratory has been used for all analyses.
· The
Mineral Resource statement relates to global estimates of tonnes
and grade.
· No
historical mining has occurred; therefore, reconciliation could not
be conducted.
|
APPENDIX 3
Glossary of Terms and Abbreviations
Assay
Measure of valuable
mineral content.
Block Model
A three-dimensional structure
into which parameters are interpolated during the resource
estimation process.
Competent Person 'CP'
Competent Person, as defined by the JORC Code. A
'Competent Person' is 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' (RPO), 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. A Competent Person must have a minimum
of five years relevant experience in the style of mineralisation or
type of deposit under consideration and in the activity which that
person is undertaking. If the Competent Person is preparing
documentation on Exploration Results, the relevant experience must
be in exploration. If the Competent Person is estimating, or
supervising the estimation of Mineral Resources, the relevant
experience must be in the estimation, assessment and evaluation of
Mineral Resources. If the Competent Person is estimating, or
supervising the estimation of Ore Reserves, the relevant experience
must be in the estimation, assessment, evaluation and economic
extraction of Ore Reserves.
Core
A solid, cylindrical
sample of rock typically produced by a rotating drill bit, but
sometimes cut by percussive methods.
Cut-off grade
The
lowest grade of mineralised material that qualifies as ore in a
given deposit; rock of the lowest assay included in an ore
estimate.
DD
Diamond core
drilling.
Deposit
An occurrence of economically
interesting minerals.
Dip
The angle at which
a bed, stratum, or vein is inclined from the horizontal, measured
perpendicular to the strike and in the vertical plane.
DMS
Dense media
separation.
Drill hole
Technically, a circular hole drilled by forces
applied percussively and/or by rotation; loosely and commonly, the
name applies to a circular hole drilled in any manner.
Drilling
The operation of making deep
holes with a drill for prospecting, exploration, or
valuation.
Grade
The relative quantity or
the percentage of ore-mineral or metal content in an
orebody.
Exploration
The act of investigation for the location of
undiscovered mineral deposits.
HQ
Diamond drill bit and
sample tube size resulting in 96mm diameter hole and 63.5mm
diameter core.
ICP-MS
Inductively Coupled Plasma-Mass
Spectrometry is an analytical technique where samples are ionised
using inductively coupled plasma for analysis.
ICP-OES
Inductively Coupled Plasma-Optical
Emission Spectrometry is an analytical technique where the
composition of samples is determined using plasma and
spectroscopy.
ICP90A
Laboratory analytical
method for rock samples where multi-element analysis is undertaken
by sodium peroxide fusion with ICP-OES finish.
Indicated Mineral Resource
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 gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes, and is sufficient to assume
geological and grade (or quality) continuity between points of
observation where data and samples are gathered. 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 Ore Reserve.
Inferred Mineral Resource
That
part of a Mineral Resource for which quantity and grade (or
quality) are estimated on the basis of limited geological evidence
and sampling. Geological evidence is sufficient to imply but not
verify geological and grade (or quality) continuity. It is based on
exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes. An Inferred Mineral Resource
has a lower level of confidence than that applying to an Indicated
Mineral Resource and must not be converted to an Ore Reserve. It is
reasonably expected that the majority of Inferred Mineral Resources
could be upgraded to Indicated Mineral Resources with continued
exploration.
JORC Code
The Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves, 2012 Edition, Prepared
by the Joint Ore Reserves Committee of The Australasian Institute
of Mining and Metallurgy, Australian Institute of Geoscientists and
Minerals Council of Australia ("JORC").
LM2
Ring Mill
Rock pulverising
equipment using vibrating steel bowl containing nested steel rings
resulting where crushed rock samples are ground to 85% minus 75
micron in minutes.
Measured Mineral Resource
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 gathered
through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes, and is sufficient to
confirm geological and grade (or quality) continuity between points
of observation where data and samples are gathered. 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 Ore
Reserve or under certain circumstances to a Probable Ore
Reserve.
Mineral Resource
A concentration or
occurrence of solid material of economic interest in or on the
Earth's crust in such form, grade (or quality), and quantity that
there are reasonable prospects for eventual economic extraction.
The location, quantity, grade (or quality), continuity and other
geological characteristics of a Mineral Resource are known,
estimated or interpreted from specific geological evidence and
knowledge, including sampling. Mineral Resources are sub-divided,
in order of increasing geological confidence, into Inferred,
Indicated and Measured categories.
Mineralisation
The
process by which minerals are introduced into a rock. More
generally, a term applied to accumulations of economic or related
minerals in quantities ranging from weakly anomalous to
economically recoverable.
Modifying Factors
Considerations used to
convert Mineral Resources to Ore Reserves. These include, but are
not restricted to, mining, processing, metallurgical,
infrastructure, economic, marketing, legal, environmental, social
and governmental factors.
MRE
Mineral Resource Estimate
Mt
Million tonnes
Ore
The naturally
occurring material from which a mineral or minerals of economic
value can be extracted profitably or to satisfy social or political
objectives. The term is generally but not always used to
refer to metalliferous material, and is often modified by the names
of the valuable constituent.
Ore
Reserves
Is the
economically mineable part of a Measured and/or Indicated Mineral
Resource. It includes diluting materials and allowances for losses,
which may occur when the material is mined or extracted and is
defined by studies at Pre-Feasibility or Feasibility level as
appropriate that include application of Modifying Factors. Such
studies demonstrate that, at the time of reporting, extraction
could reasonably be justified.
PQ
Diamond drilling bit
and sample tube size resulting in 122.6mm diameter hole and 85mm
diameter core.
PRP100
SGS sample preparation
procedure where rocks are dried, crushed, pulverised and a 100g
sub-sample produced for assay.
RC
Reverse circulation
RCD
Reverse circulation with diamond
tail.
RCH
Reverse circulation hydrology
holes.
Riffle Splitter
Manual sample splitting
device to produce representative samples from larger sample
(typically used with RC drill chip samples).
Strike
The course or bearing of
the outcrop of an inclined bed, vein, or fault plane on a level
surface; the direction of a horizontal line perpendicular to the
direction of the dip.
Whittle Optimisation
The Four-X Whittle Optimisation process
uses the Lerchs-Grossmann algorithm to determine the optimal shape
for an open pit in three dimensions. Based on the economic input
parameters selected it can define a pit outline that has the
highest possible total value, subject to the required pit
slopes.
Wireframe
Three dimensional solids representing
geological/mineralogical domains.