TIDMALS
RNS Number : 9950N
Altus Strategies PLC
05 October 2021
Altus Strategies Plc / Index (EPIC): AIM (ALS) TSX-V (ALTS)
OTCQX (ALTUF) / Sector: Mining
05 October 2021
Altus Strategies Plc
("Altus" or the "Company")
Gold Resource Exceeds One Million Ounces at Tabakorole in
Southern Mali
Altus Strategies Plc (AIM: ALS, TSX-V: ALTS, OTCQX: ALTUF)
announces that an updated independent Mineral Resource Estimate
("MRE") has been prepared in accordance with the JORC Code, for the
Tabakorole gold project ("Tabakorole" or the "Project") located in
southern Mali. Tabakorole is subject to a Joint Venture ("JV") with
Marvel Gold Limited (ASX: MVL) ("Marvel"). Altus holds a 49% equity
interest and 2.5% Net Smelter Return ("NSR") royalty on the
Project. Exploration activities at Tabakorole are being funded by
Marvel.
Highlights:
-- Updated independent MRE for Tabakorole JV gold project in southern Mali
-- Tabakorole hosts a mineral deposit for which an MRE has been generated comprising:
o 17,300,000 tonnes at 1.2 g/t gold ("Au") for 665,000 ounces in
the Inferred category
o 9,200,000 tonnes at 1.2 g/t Au for 360,000 ounces in the
Indicated category
o 24% increase in indicated ounces and 7% increase in inferred
ounces
o 70% of the MRE is situated within 150m of the surface
o Preliminary high metallurgical recoveries indicate simple
processing flowsheet
o Shallow, higher-grade parallel zones have contributed to
upgraded MRE
o MRE remains open in parallel zones and at depth
-- Resource expansion drilling programme planned to commence in Q4 2021
-- Altus holds 49% of the Project and a 2.5% NSR royalty on Tabakorole gold production
Steven Poulton, Chief Executive of Altus, commented:
"We are pleased to report on the upgraded Mineral Resource at
the Tabakorole gold project in southern Mali. Drilling undertaken
by our JV partner, Marvel Gold, this year has continued to
demonstrate consistent thicknesses and grades over the Project's
3.2km strike length, as well as the discovery of two new shallow,
higher-grade zones of mineralisation adjacent to the existing
deposit. These parallel zones may potentially provide some
excellent low-strip starter pit options for any eventual mining
operation.
"With 70% of the upgraded MRE now within 150m of surface, with
the deposit growing to over a million ounces in all categories and
with high metallurgical gold recoveries averaging 97%, Tabakorole
is shaping up as a significant potential development project in
west Africa with substantial upside. The next stages of exploration
at Tabakorole will include resource expansion and infill drilling,
as well as programmes to test a number of high-conviction targets
across the Project. I look forward to updating shareholders on the
outcomes of this work in due course".
Tabakorole: Mineral Resource Estimate
Tabakorole hosts a deposit for which an MRE of 360,000 ounces at
1.2 g/t Au (Indicated resources) and 665,000 ounces at 1.2 g/t Au
(Inferred resources) in both oxide and fresh domains has been made
as set out in Table 1 and Figure 8 below. The Project remains open
down-dip and along strike. Currently, 70% of the MRE is situated
within 150m of surface.
The MRE has been prepared by International Resource Solutions
Pty Ltd (Perth, Australia) under the JORC Code and is reported as
at 05 October, 2021. A technical report is currently being drafted
and this will be filed under the Company's profile on SEDAR within
75 days of the date of this announcement. A Qualified Person has
not undertaken sufficient work to classify the Mineral Resource
Estimate in accordance with NI 43-101, and Altus is not treating it
as such.
Table 1: Mineral Resource Estimate Summary Table (JORC Code)
Indicated Inferred
Domain Tonnes Grade Contained gold Tonnes Grade Contained gold
(t) (g/t) (oz) (t) (g/t) (oz)
---------- ------- --------------- ----------- ------- ---------------
Oxide 1,400,000 1.2 50,000 1,300,000 1.3 55,000
---------- ------- --------------- ----------- ------- ---------------
Fresh 7,800,000 1.2 310,000 16,000,000 1.2 610,000
---------- ------- --------------- ----------- ------- ---------------
Total 9,200,000 1.2 360,000 17,300,000 1.2 665,000
---------- ------- --------------- ----------- ------- ---------------
Notes:
1. Reported at a cut-off grade of 0.6 g/t Au, differences may occur due to rounding.
2. MRE is shown on a gross (100%) basis of the Project.
3. Marvel is the operator of the JV.
The Project is currently 49% beneficially owned by Altus and 51%
beneficially owned by Marvel, which is also the operator of the JV.
Marvel is currently earning a 70% interest in the Project, through
the completion of the third phase of exploration.
2020 & 2021 Drilling Summary
During the 2020-21 field season, Marvel completed a total of
9,995m of drilling, consisting of 4,320m of Diamond drilling ("DD")
and 5,675m of Reverse Circulation ("RC") drilling which have been
used to generate the updated MRE. RC drilling was carried out by
Target Drilling SARL, while DD was carried out by Capital Drilling
Mali SARL.
A highlight of the field season was the discovery of a shallow,
higher-grade zone of mineralisation sitting adjacent to the
north-western portion of the deposit (see Figures 3, 4, 6 & 7).
Some of the more significant intercepts included:
-- 2.4 g/t Au over 24m from 35m in hole 21TBKDD021
-- 1.5 g/t Au over 21m from 26m in hole 21TBKDD0201
-- 2.0 g/t Au over 16m at from 75m in hole 20TBKRC014
The NW zone has been modelled in two lodes in the upgraded MRE,
with lengths of 230m and 300m respectively. The NW zone remains
open between the two lodes due to the sparse drilling in this area
and also at depth. This area will be a focus of future work
targeting near-deposit resource growth opportunities. Drilling also
discovered a shallow, higher-grade zone of mineralisation sitting
adjacent to the central portion of the deposit (see Figure 5). Some
of the more significant intercepts from this zone included:
-- 2.6 g/t Au over 21m from 70m in hole 21TBKDD014
-- 1.8 g/t Au over 22m from 77m in hole 20TBKRC006
-- 2.0 g/t Au over 12m from 18m and 1.9 g/t Au over 18m from 53m in hole 20TBKRC005
This zone has been modelled in the upgraded MRE to a length of
120m and to a maximum depth of 120m. The zone remains open at
depth, whilst its strike potential needs to be tested. Numerous
additional targets at Tabakorole remain to be tested (see Figure
9).
The following figures relate to the disclosures in this
announcement and are visible in the version of this announcement on
the Company's website (www.altus-strategies.com) or in PDF format
by following this link:
https://altus-strategies.com/site/assets/files/5367/altus_nr_-_tbk_mre-_05_oct_2021.pdf
-- Location of Tabakorole and Altus' other projects in Mali are shown in Figure 1
-- Location of Tabakorole in southern Mali is shown in Figure 2
-- Tabakorole Mineral Resource Estimate (plan view) is shown in Figure 3
-- Cross-section showing shallow, higher-grade north-west zone is shown in Figure 4
-- Cross-section showing shallow, higher-grade central zone is shown in Figure 5
-- Map of New North-West zone (open along strike) is shown in Figure 6
-- North-West zone long section is shown in Figure 7
-- Tabakorole MRE (showing Indicated and Inferred classifications) is shown in Figure 8
-- Map of regional targets and additional mineralised areas is shown in Figure 9
-- A selection of photos from Tabakorole is shown in Figure 10
MRE: Update
The reader is referred to the initial MRE for Tabakorole as
announced by Altus on 30 September 2020 entitled "Substantial
Increase in Gold Resource at Tabakorole Project, Southern Mali".
Only sections of that announcement that require updates have been
included below. All other sections remain unchanged.
MRE: Reporting Cut-off Grades
The resource material is considered amenable to open pit mining
and is reported at a cut-off grade of 0.6 g/t Au, which is both
statistically robust and consistent with economic cut-off grades
applied at other operations in the region. The final cut-off
determination will be dependent on the scale of any potential
future operation and the prevailing gold price. A range of other
cut-offs are presented in Table 2, which demonstrate the grade vs
cut-off relationships.
Table 2: Tabakorole MRE Grade-Tonnage
Indicated Inferred
Cut-off Mt Au koz Mt Au koz
(g/t) (Au) (g/t) (Au)
----- ------- ------ ----- ------- ------
0.3 15.1 0.9 450 26.7 0.9 800
----- ------- ------ ----- ------- ------
0.4 13.1 1.0 425 23.6 1.0 760
----- ------- ------ ----- ------- ------
0.5 11.0 1.1 395 20.4 1.1 715
----- ------- ------ ----- ------- ------
0.6 9.1 1.2 360 17.4 1.2 665
----- ------- ------ ----- ------- ------
0.7 7.5 1.4 330 14.6 1.3 605
----- ------- ------ ----- ------- ------
0.8 6.2 1.5 295 12.2 1.4 545
----- ------- ------ ----- ------- ------
0.9 5.1 1.6 270 10.0 1.5 485
----- ------- ------ ----- ------- ------
1.0 4.3 1.8 240 8.4 1.6 440
----- ------- ------ ----- ------- ------
MRE: Methodology
Multiple Indicator Kriging ("MIK") with change of support was
selected as the most appropriate method for estimating gold for the
Tabakorole deposit. A total of two grade estimate domains have been
developed within the mineralised zones and based on the geological
description in the previous sections and an approximate lower
cut-off grade of 0.3 g/t Au.
A block size of 20mE x 25mN x 10mRL was selected as an
appropriate block size for estimation based on the drill spacing
(50m strike spacing), geometry of mineralisation and the likely
potential future selective mining unit ("SMU") (i.e. appropriate
for potential open pit mining). An SMU dimension of 5mE x 12.5mN x
5mRL was selected as appropriate for support correction
investigation. An indirect lognormal support correction was applied
to emulate mining selectivity for the above SMU dimension.
The MIK grade estimates consist of a series of proportions and
grades above the pre-defined cut-off grades estimated into a
'panel' or large blocks. The proportions and grades are derived
from a targeted SMU block size via change of support process. As
such, while the proportions and grades at a certain cut-off for any
given panel may be known, its position within the panel is not. To
assist with a more intuitive presentation of the model grades, the
MIK grade estimates have been localised to SMU dimension blocks
using a process identical to that of Localised Uniform
Conditioning. The SMU sized blocks have been assigned a single
grade so that the panel MIK grade estimate grade tonnage curve has
been replicated.
MRE: Drill Hole Flagging, Compositing, Top Cuts and
Variography
Raw sample intervals from the drill hole database were flagged
by the estimation domains and composited to 2m downhole intervals
for the purposes of equalising sample support and as an input to
grade estimation.
The impact of higher-grade gold outliers was examined on
composite data using log probability plots and cumulative
statistics. This is particularly relevant in the case where extreme
grade values may exist, however MIK estimation as implemented at
Tabakorole is independent of top cutting and was therefore not
applied to the final grade estimate.
Grade and indicator variography were developed based on the
downhole composites. Indicator variography was input to the MIK
estimates while grade variography was used for the change of
support analysis applied to the MIK estimates.
MRE: Mining and Metallurgical Parameters and Other Material
Modifying Factors
The proposed development scenario for the deposit is as an open
cut (pit) mine. No additional mining dilution has been applied to
the reported estimate.
The oxide portion of the resource constitutes approximately 10%
of the contained metal. To date, the JV has not completed any
metallurgical test work on oxide material. Historically, only one
campaign has been completed on oxide material. The test work was
carried out by Peacocke and Simpson in Zimbabwe in October 2015 on
a 100kg sample collected using auger drilling over an area of 20 x
25m centred around hole 06TKDDH-059. This unoptimized test work
yielded a total of 90.6% recovery using a conventional cyanidation
process. Due to the limited coverage and selective nature of
sampling, the results from this test work are not considered
representative of the deposit.
The fresh rock portion of the resource constitutes the remaining
90% of the contained metal in the Mineral Resource. Marvel
completed a preliminary program of metallurgical test work during
the 2020-21 field season and results from this test work were
reported on 27 January 2021.
A total of four composite samples were collected from four
diamond drillholes completed by Marvel in mid-2020. The composites
were made from the coarse split of diamond drilling samples based
on the drillhole locations within the deposit and the head grade
assay of the original samples. The composites targeted the current
Mineral Resource grade of 1.2 g/t Au and ranged from 1.1 g/t to 1.9
g/t Au. All samples were taken in fresh rock as this material
represents approximately 90% of the Tabakorole Mineral
Resource.
Results from the bottle roll testing showed high recoveries from
all samples, with low cyanide and lime consumption (Table 3).
Average leach recoveries were 92.7%, 94.8% and 96.6% for the four
samples at the three grind sizes. The high recoveries show that the
gold is likely to be recoverable via a simple carbon-in-leach
process flow sheet, with no indications of refractory gold.
No additional modifying factors have been considered as part of
the MRE based on the metallurgical results.
Table 3: Bottle roll direct cyanidation results from sulphide
composites from Tabakorole
SAMPLE GRIND GOLD CONSUMPTION
ID SIZE
(um)
LEACH RECOVERY CALCULATED RESIDUE NaCN LIME
(%) HEAD (g/t) (kg/t) (kg/t)
(g/t)
--------------- ----------- --------
COMP 1 75 96.05 1.14 0.05 0.24 0.33
------ --------------- ----------- -------- -------- --------
COMP 2 75 97.36 1.14 0.03 0.42 0.41
------ --------------- ----------- -------- -------- --------
COMP 3 75 96.24 1.20 0.05 0.29 0.54
------ --------------- ----------- -------- -------- --------
COMP 4 75 96.66 1.95 0.07 0.28 0.26
------ --------------- ----------- -------- -------- --------
AVERAGE 75 96.58 1.36 0.05 0.31 0.39
------ --------------- ----------- -------- -------- --------
COMP 1 106 93.97 1.16 0.07 0.31 0.35
------ --------------- ----------- -------- -------- --------
COMP 2 106 95.95 1.11 0.05 0.35 0.37
------ --------------- ----------- -------- -------- --------
COMP 3 106 94.06 1.18 0.07 0.22 0.47
------ --------------- ----------- -------- -------- --------
COMP 4 106 95.29 1.70 0.08 0.31 0.27
------ --------------- ----------- -------- -------- --------
AVERAGE 106 94.82 1.29 0.07 0.30 0.37
------ --------------- ----------- -------- -------- --------
COMP 1 150 92.47 1.33 0.10 0.29 0.34
------ --------------- ----------- -------- -------- --------
COMP 2 150 94.36 1.15 0.07 0.31 0.35
------ --------------- ----------- -------- -------- --------
COMP 3 150 91.59 1.19 0.10 0.25 0.48
------ --------------- ----------- -------- -------- --------
COMP 4 150 92.28 1.81 0.14 0.31 0.27
------ --------------- ----------- -------- -------- --------
AVERAGE 150 92.68 1.37 0.10 0.29 0.36
------ --------------- ----------- -------- -------- --------
MRE: Constraints
The Mineral Resource at Tabakorole represents a global resource
and has not been constrained by an optimised pit shell or similar.
This is considered appropriate for the current level of
understanding and development of the Mineral Resource.
MRE: Classification
Resource classification was based on geological confidence and a
spatial review of estimation result parameters which reflected the
quality of the estimate for each block. At the Tabakorole deposit,
areas that had high confidence estimate values, had sufficient
drilling density (<=50m section spaced drilling) or were
proximal to 50m spaced drill lines were classified as Indicated
Resources. The remainder was classified as Inferred Resources.
Summary of Joint Venture with Marvel Gold
Marvel has the right to earn up to an 80% interest in Tabakorole
by sole funding four stages of exploration, culminating in a
definitive feasibility study, and by making certain cash (or cash
plus Marvel shares) payments to Altus. Thereafter, Altus has the
right to co-finance or dilute its 20% interest in the Project.
Altus also retains a 2.5% NSR royalty on the Project. Marvel will
have the right to reduce the royalty to 1.0% NSR for a payment to
Altus of between US$9.99 million and US$15.00 million (depending on
the size of the resource at Tabakorole). Marvel has currently
earned a 51% interest in the Project.
Tabakorole Project: Location
Tabakorole is a 292km(2) gold project located in southern Mali,
approximately 280km south of the capital city of Bamako (see
Figures 1 & 2). The Project sits on the Massagui Belt, which
hosts the Morila gold mine (operated by Firefinch Limited, ASX:
FFX), located approximately 100km to the north. The Project is
125km southeast of the Yanfolila gold mine (operated by Hummingbird
Resources Plc, AIM: HUM) and 100km east of the Kalana gold project
(operated by Endeavour Mining Plc, LSE and TSX: EDV).
Mineralisation hosted on these properties is not necessarily
indicative of mineralisation hosted at Tabakorole.
Tabakorole Project: Geology
Tabakorole comprises a 3.2km long shear zone which is up to 200m
wide, hosted in the Archaean and Birimian aged Bougouni Basin of
the Man Shield of southern Mali. The geology is dominated by
clastic sediments, cut by northwest trending deformation zones
which host gold mineralisation. At least two, possibly three,
Eburnean deformation events are believed to have affected the
geology of Tabakorole. The Project hosts the FT Prospect, comprised
of mylonites, sheared diorite, gabbro, mafic dykes and late stage
felsic dykes, within a folded and deformed metasedimentary package
of meta-siltstone, meta-wacke and meta-sandstone. Mineralisation is
locally most favourably associated where structures cut gabbro and
along lithological contacts with gabbro.
Qualified Person
The technical disclosure in this regulatory announcement has
been approved by Steven Poulton, Chief Executive of Altus. A
graduate of the University of Southampton in Geology (Hons), he
also holds a Master's degree from the Camborne School of Mines
(Exeter University) in Mining Geology. He is a Fellow of the
Institute of Materials, Minerals and Mining and has over 20 years
of experience in mineral exploration and is a Qualified Person
under the AIM rules and NI 43-101.
For further information you are invited to visit the Company's
website www.altus-strategies.com or contact:
Altus Strategies Plc Tel: +44 (0) 1235 511 767
Steven Poulton, Chief Executive E-mail: info@altus-strategies.com
SP Angel (Nominated Adviser)
Richard Morrison / Adam Cowl Tel: +44 (0) 20 3470 0470
SP Angel (Broker)
Grant Barker / Richard Parlons Tel: +44 (0) 20 3470 0471
Shard Capital (Broker)
Isabella Pierre / Damon Heath Tel: +44 (0) 20 7186 9927
Yellow Jersey PR (Financial PR & IR) Tel: +44 (0) 20 3004 9512
Charles Goodwin / Henry Wilkinson E-mail: altus@yellowjerseypr.com
About Altus Strategies Plc
Altus Strategies (AIM: ALS, TSX-V: ALTS & OTCQX: ALTUF) is a
mining royalty company generating a diversified and precious metal
focused portfolio of assets. The Company's differentiated approach
of generating royalties on its own discoveries in Africa and
acquiring royalties globally through financings and acquisitions
with third parties, has attracted key institutional investor
backing. The Company engages constructively with all stakeholders,
working diligently to minimise its environmental impact and to
promote positive economic and social outcomes in the communities
where it operates. For further information, please visit
www.altus-strategies.com .
Cautionary Note Regarding Forward-Looking Statements
Certain information included in this announcement, including
information relating to future financial or operating performance
and other statements that express the expectations of the Directors
or estimates of future performance constitute "forward-looking
statements". These statements address future events and conditions
and, as such, involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the statements.
Such factors include, without limitation, the completion of planned
expenditures, the ability to complete exploration programmes on
schedule and the success of exploration programmes. Readers are
cautioned not to place undue reliance on the forward-looking
information, which speak only as of the date of this announcement
and the forward-looking statements contained in this announcement
are expressly qualified in their entirety by this cautionary
statement.
Where the Company expresses or implies an expectation or belief
as to future events or results, such expectation or belief is based
on assumptions made in good faith and believed to have a reasonable
basis. The forward-looking statements contained in this
announcement are made as at the date hereof and the Company assumes
no obligation to publicly update or revise any forward-looking
information or any forward-looking statements contained in any
other announcements whether as a result of new information, future
events or otherwise, except as required under applicable law or
regulations.
TSX Venture Exchange Disclaimer
Neither the TSX Venture Exchange nor the Investment Industry
Regulatory Organisation of Canada accepts responsibility for the
adequacy or accuracy of this release.
Market Abuse Regulation Disclosure
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.
Glossary of Terms
"Au" means gold
"DD" means diamond drilling
"g" means grams
"g/t" means grams per tonne
"grade(s)" means the quantity of ore or metal in a specified
quantity of rock
"JORC Code" means the 2012 edition of the "Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves" prepared by the Joint Ore Reserves Committee of the
Australasian Institute of Mining and Metallurgy, Australian
Institute of Geoscientists and Minerals Council of Australia. The
JORC Code is an acceptable foreign code for purposes of NI
43-101
"JV" means Joint Venture
"km" means kilometres
"m" means metres
"MRE" means Mineral Resource Estimate
"NI 43-101" means National Instrument 43-101 "Standards of
Disclosure for Mineral Projects" of the Canadian Securities
Administrators
"Oz" means ounces
"Qualified Person" means a person that has the education, skills
and professional credentials to qualify as a qualified person under
NI 43-101
"NSR" means net smelter return
"RC" means reverse circulation
"t" means a metric tonne
**END**
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