TIDMATM
RNS Number : 9474O
Andrada Mining Limited
06 February 2023
6 February 2023
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 (MAR) as in force in
the United Kingdom pursuant to the European Union (Withdrawal) Act
2018. Upon the publication of this announcement via Regulatory
Information Service (RIS), this inside information is now
considered to be in the public domain.
Andrada Mining Limited
("Andrada" or the "Company")
Drilling Delivers a Significant Lithium Resource Upgrade at the
Uis Mine
Andrada Mining Limited, formerly Afritin Mining Limited, (AIM:
ATM) an African technology metals mining company with a portfolio
of mining and exploration assets in Namibia, is pleased to announce
an updated lithium, tin, rubidium, and tantalum Mineral Resource
Estimate (MRE), at its flagship Uis Mine ("Uis"). This updated MRE,
is in accordance with JORC (2012) and is a result of the
substantial 7,000 metre drilling programme undertaken in 2022 to
expand and increase the main V1/V2 pegmatite deposit currently
being mined at Uis.
Highlights:
-- Updated MRE for the V1/V2 deposit with lithium and tantalum
upgraded to a Measured and Indicated classification as a result of
infill drilling.
-- Lithium average grade has increased to 0.73% Li(2) 0 from
0.63% Li(2) O declared in 2019, total contained Li(2) O tonnes have
increased by 30% to 587 000 tonnes.
-- Updated resource gives a Lithium Carbonate Equivalent of 1.45
million tonnes.
-- The Measured and Indicated lithium resources increased by 47%
to 38Mt.
-- Tin average grade has increased to 0.15% Sn from a previous
average of 0.134% Sn, resulting in contained tin metal content of
120 000 tonnes.
-- Maiden resource declared for rubidium with a contained total
of 109 400 tonnes at an average grade of 0.14% Rb.
-- Total MRE for the V1/V2 deposit inclusive of mining depletion
has increased to 81 Mt from 72 Mt.
Anth ony Viljoen (CEO) commented:
"I am very pleased to announce a new enlarged lithium resource
at our Uis Mine in Namibia following significant drilling programme
in 2022. This confirms our belief that Uis is a globally
significant lithium and tin resource that remains open at depth and
is one of over 180 mineralised pegmatites within 5km of the Uis
processing facility. The drilling programme has exceeded our
expectations, delivering higher grades, and has increased the
overall tonnage by 13% when compared to the previous resource
estimate from 2019 and 30% more contained lithium. The updated
Mineral Resource Estimate is solely from V1/V2 pegmatite, which
clearly highlights the significant untapped potential of the wider
Uis pegmatite swarm across our licence area.
"This MRE has been delivered ahead of our lithium pilot plant
commissioning which is due to come online in Q2 2023 and is an
important step to realise the additional lithium and tantalum
revenue streams alongside our tin production. This new resource
will increase the economics for Andrada and will form the basis for
the next phase of expansion and growth for the Uis mine.
"The next phase of exploration will investigate the other
proximal pegmatites at Uis with the end goal of repeating this
process and ultimately expand the resource at Uis to achieve the
exploration target of 200 Mt."
Overview of results
In January 2022, Andrada Mining initiated an exploration
drilling programme aimed at upgrading the resource classification
for lithium (hosted in petalite) and tantalum over the V1/V2
deposit to align with the existing classification for tin. The 2022
infill drilling reduced the drill hole spacing of the Andrada holes
to a nominal 60 m by 60 m in the well-drilled portions of the V1/V2
deposit and up to 80 m by 200 m over areas of known mineralisation
around the deeper portions of the deposit. A combined total of 51
infill drill holes (Fig.1), 22 DD and 29 RC, obtained in 2022, 26
holes from 2018/19 and historical drill information from the
company and historical operations exist over the deposit. This
information was utilised to generate the updated Mineral Resource
estimate.
Figure 1 : Image indicating the location and name of the drill
holes from the 2022 programme. Note: Assay results for some holes
holes (V1V2024,34,35,37,38,40,43,44,48,50,51,52,54,58 and 80) were
not available at the time of reporting but geological logging from
these holes were used to constrain the geological modelling. Assay
results from all other holes have been reported.
The updated MRE for V1/V2 is reported in accordance with the
JORC Code (2012) and contains 81 Mt of mineralised pegmatite at an
average grade of 0.73 % Li(2) O and 0.15 % Sn. This includes a
total of 21 Mt at 0.72 % Li(2) O in the Measured category, 17 Mt at
0.73 % Li(2) O in the Indicated category and 43 Mt at 0.73 % Li(2)
O in the Inferred category. The MRE is reported within a conceptual
pit shell to demonstrate reasonable prospects for eventual economic
extraction (RPEEE), and is reported on a gross basis in Error!
Reference source not found. and an attributed basis in Error!
Reference source not found. .
Table 1 : V1 and V2 deposit MRE in accordance with JORC (2012)
on a gross basis
Resource Gross Basis (100% of V1/V2 deposit)
Classification Tonnes Sn Contained Li(2) Contained LCE* Ta Contained Rb Contained
(Mt) % Sn metal O % Li(2) (t) ppm Ta metal % Rb metal
(t) O (t) (t) (t)
------ ---- --------- ----- --------- ------- ---- --------- ---- ---------
147
Measured 21 0.14 29 000 0.72 000 363 531 99 2 040 0.15 31 500
------ ---- --------- ----- --------- ------- ---- --------- ---- ---------
125
Indicated 17 0.15 25 000 0.73 000 309 125 88 1 520 0.14 23 800
------ ---- --------- ----- --------- ------- ---- --------- ---- ---------
315
Inferred 43 0.15 66 000 0.73 000 778 995 78 3 400 0.13 55 900
------ ---- --------- ----- --------- ------- ---- --------- ---- ---------
120 587 1 451 111
Total 81 0.15 000 0.73 000 651 86 6 960 0.14 200
------ ---- --------- ----- --------- ------- ---- --------- ---- ---------
Source: CSA Global
Note: The constraining pit shell is based on a tin price of
US$25,500/t and a price of US$1,500/t for a 4 % Li(2) O petalite
concentrate. Losses and mining dilution were set at 5%. Pit slope
angles were assumed to be 55deg with an assumed metallurgical
recovery of Sn of 80% producing a concentrate of 60 % Sn, and Li(2)
O (as petalite) recovery of 45 %. Mining, Treatment, G&A and
Selling Costs have been supplied by Andrada and reviewed for
reasonableness by CSA Global. Tabulated data have been rounded off
and this may result in minor computational errors. Contained metal
for lithium refers to lithium oxide (Li(2) O ). *- LCE - Lithium
carbonate equivalent
Table 2 : V1 and V2 deposit MRE reported on an Attributable
Basis in accordance with JORC (2012)
Resource Attributed basis (85%)
Classification Tonnes Sn Contained Li(2) Contained LCE* Ta Contained Rb Contained
(Mt) % Sn metal O % Li(2) (t) ppm Ta metal % Rb metal
(t) O metal (t) (t)
(t)
------ ---- --------- ----- --------- ----- ---- --------- ---- ---------
309
Measured 18 0.14 24 650 0.72 124 950 001 99 1 734 0.15 26 775
------ ---- --------- ----- --------- ----- ---- --------- ---- ---------
262
Indicated 14 0.15 21 250 0.73 106 250 756 88 1 292 0.14 20 230
------ ---- --------- ----- --------- ----- ---- --------- ---- ---------
662
Inferred 73 0.15 56 100 0.73 267 750 146 78 2 890 0.13 47 515
------ ---- --------- ----- --------- ----- ---- --------- ---- ---------
102 498 1 233
Total 69 0.15 000 0.73 950 903 86 5 916 0.14 94 520
------ ---- --------- ----- --------- ----- ---- --------- ---- ---------
Source: CSA Global
Note: Tabulated data have been rounded off and this may result
in minor computational errors. Contained metal for lithium refers
to lithium oxide (Li(2) O)
* Andrada has an attributable ownership of 85% in Uis with the
remaining 15% owned by The Small Miners of Uis (SMU)
Table 3 : Percentage change of tonnes contained, grades and
deposit size.
MRE Year Tonnes Sn % Contained Li(2) Contained Ta ppm Contained
(Mt) Sn metal O % Li(2) Ta metal
(t) O (t) (t)
2019 72 0.134 95 539 0.63 450 265 85 6 091
------- ------ ---------- ------ ---------- ------- ----------
2023 81 0.15 120 000 0.73 587 000 86 6 960
------- ------ ---------- ------ ---------- ------- ----------
% Change 13% 12% 26% 16% 30% 1% 14%
------- ------ ---------- ------ ---------- ------- ----------
The infill drilling programme undertaken in 2022 has resulted in
an increased mineral resource classification for lithium and
tantalum and an increase of the overall tonnage when compared to
the maiden MRE published in 2019. In addition, an estimate has been
provided on rubidium for the first time, highlighting the
polymetallic nature of the deposit. Rubidium is found within mica
which is currently being concentrated as a potential
by-product.
Geology and geological interpretation
The V1/V2 deposit is hosted within the Damara Orogen, a typical
pan African-aged (750-440 Ma) orogenic belt which formed during the
assembly of Gondwana. The orogenesis produced voluminous quantities
of granitic magmatism during the syn-tectonic phases of collision.
This was followed by a pegmatitic phase of magmatism in the
post-tectonic environment, populating the Damara Orogen with
numerous pegmatitic intrusions.
The V1/V2 pegmatite has a sigmoidal shape in plan and is hosted
in biotite schists and the distinctive cordierite (and biotite and
quartz replacements of cordierite)-bearing knotted schist (the
so-called "knottenschiefer"). The pegmatite strikes to the
northeast and dips to the northwest at between 30deg and 50deg. The
tin and lithium mineralisation style is primarily magmatic although
some of the tin mineralisation may be associated with a late stage
mica rich greisen phase. The primary lithium mineral is
petalite.
Modelling and estimation
An in-situ MRE was undertaken for the pegmatite bodies, the data
was loaded and utilized to construct a geological model followed by
geostatistical analyses.
An estimation was carried out for Sn, Li, Nb, Rb and Ta by
ordinary kriging into a block model of 20 m x 20 m x 10 m (X x Y x
Z), the block size being selected after a sensitivity analysis was
undertaken on a range of block sizes with an emphasis on the
grade/tonnage sensitivity around the expected cut-off grade, top
cutting was applied to Sn (1.0% Sn) within both the V1 and V2
pegmatite wireframes with the result making minimal difference to
the average-declustered grade.
A five individual element estimation was undertaken in three
passes, with each subsequent pass extending the search ellipse and
decreasing the minimum number of samples to be used for estimation.
The first pass search ellipse had the same dimensions as the
variogram ranges. Subsequent estimation passes were extended, and
the minimum number of samples used was reduced until in the third
pass minimum was set to 4 samples.
Estimates were validated by comparing graphical sections showing
block grades (Fig.2, Fig.3 and Fig.4) vs composite grades, domain
averages with de-clustered means and by trend (swath) plots.
The previous MRE was carried out by CSA Global in September 2019
when only Sn was classified as Measured, Indicated, and Inferred,
and all Ta and Li(2) O Mineral Resources were classified as
Inferred. Estimated grades for Sn, Ta and Li(2) O are similar
between the two models, but tonnages have increased due to infill
and extensional drilling.
Figure 2 : Typical cross section of the Block model and Input
Composite data coloured by Sn Grade, looking northeast.
Figure 3 : Typical cross section of the Block model and Input
Composite data coloured by Li Grade
Figure 4 : Typical cross section of the Block model and Input
Composite data coloured by Ta Grade
Mineral resource classification criteria
The Mineral Resource has been classified as Measured, Indicated
and Inferred Mineral Resource ( Figure 5 ) based on data quality,
sample spacing, geological interpretation and from ordinary Kriging
(OK), specifically, the slope of regression (SoR) and the kriging
efficiency (KE) metrics. For Measured Mineral Resources an average
SoR > 0.7 was required, Indicated Mineral Resources an average
SoR > 0.5 was required and all other Mineral Resources not
already classified and constrained to blocks not more than 50 m
from the nearest sample and with at least 4 samples within the
search neighbourhood, were classified as Inferred Mineral
Resources. The 50 m constraint ensures that extrapolation is
limited to 50 m.
The preliminary classification groupings were reviewed in 3D and
plan view, identifying coherent zones of each class. Subsequent
polygons were defined for Measured, Indicated and Inferred Mineral
Resources within which the final classification categories were
assigned. All blocks estimated and classified as contained within
the RPEEE pit shell.
Figure 5 . Plan View of the MRE Block Model, Coloured by CLASS
(Red = Measured, Green = Indicated, Blue = Inferred), with
drillhole collars displayed coloured by drill phase. Triangle
collar points highlight only Geology logging was available.
Competent Person statement
The technical data relating to the Mineral Resources in this
announcement has been reviewed by Anthony Wesson of CSA Global, who
provides geostatistical consulting services to Andrada. Anthony
Wesson has 45 years of industry related mineral project development
experience and is a Competent Person for the reporting of Mineral
Resources. He has been a Fellow of the AusIMM for more than 25
years. He has reviewed the technical disclosures in this release
and has undertaken the Mineral Resource Estimation and
classification for tin, lithium, tantalum, and rubidium. Mr Wesson
consents to the inclusion of the information in the form and
context in which it appears.
The technical data relating to the exploration results in this
announcement has been reviewed by Michael Cronwright (M.Sc., FGSSA,
Pr. Sci Nat. (Geological Sciences)) of CSA Global, who provides
geological consulting services to Andrada. Mr Cronwright is the
Principal Consultant - Battery Metals for CSA Global and has 23
years' experience in mineral exploration and is a Qualified Person
under the AIM and ASX Rules. Mr Cronwright consents to the
inclusion of the information in the form and context in which it
appears.
Glossary of abbreviations
DD Diamond core drilling
LCE Lithium Carbonate Equivalent
-----------------------------------------------------------------------------------------------
Li Symbol for Lithium
-----------------------------------------------------------------------------------------------
Li -> Li(2) O Metal to metal-oxide conversion factor of 2.153
-----------------------------------------------------------------------------------------------
Li -> LCE Metal to lithium carbonate conversion factor of 5.323
-----------------------------------------------------------------------------------------------
Li(2) O Lithium oxide
-----------------------------------------------------------------------------------------------
JORC The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves
-----------------------------------------------------------------------------------------------
KE Kriging Efficiency
-----------------------------------------------------------------------------------------------
MRE Mineral Resource Estimate
-----------------------------------------------------------------------------------------------
PPM Parts Per Million
-----------------------------------------------------------------------------------------------
QA/QC Quality Assurance / Quality Control
-----------------------------------------------------------------------------------------------
Rb Symbol for Rubidium
-----------------------------------------------------------------------------------------------
RC Reverse Circulation drilling
-----------------------------------------------------------------------------------------------
RPEEE Reasonable Prospects for Eventual Economic Extraction
-----------------------------------------------------------------------------------------------
Sn Symbol for Tin
-----------------------------------------------------------------------------------------------
SoR Slope of Regression
-----------------------------------------------------------------------------------------------
Ta Symbol for Tantalum
-----------------------------------------------------------------------------------------------
V1/V2 Name of the targeted pegmatite unit, V1/V2 denotes where the V1 and V2 pegmatites have merged
at depth.
-----------------------------------------------------------------------------------------------
Glossary of technical terminology
Apparent thickness The relationship between apparent width and true thickness is based on the formula
by Addie
(1968 Economic Geology, vol 63, pp 188-189).
Dip angle The angle of inclination measured downward from horizontal.
-----------------------------------------------------------------------------------
Geological model The interpretation of mineralisation and geology that controls mineralisation.
This is usually
generated in a three-dimensional computer environment.
-----------------------------------------------------------------------------------
Inferred Mineral Resource The part of a Mineral Resource for which quantity and grade or quality can be
estimated on
the basis of geological evidence and limited sampling and reasonably assumed, but
not verified,
geological and grade continuity
-----------------------------------------------------------------------------------
Indicated Mineral Resource The part of a Mineral Resource for which quantity, grade, quality, etc., can be
estimated
with a level of confidence sufficient to allow the appropriate application of
technical and
economic parameters, to support mine planning and evaluation of economic viability
-----------------------------------------------------------------------------------
Measured Mineral Resource The part of a Mineral Resource for which quantity, grade, or quality, etc., are
well enough
established that they can be estimated with confidence sufficient to allow the
appropriate
application of technical parameters to support production planning and evaluation
of economic
viability
-----------------------------------------------------------------------------------
Mineral Resources Classification Mineral Resources are sub-divided, in order of increasing confidence in geological
evidence
and sampling (grade) knowledge, into Inferred, Indicated and Measured classes. An
Indicated
Mineral Resource has a higher level of confidence than an Inferred Mineral
Resource but has
a lower level of confidence than a Measured Mineral Resource.
-----------------------------------------------------------------------------------
Pegmatite An igneous rock typically of granitic composition, which is distinguished from
other igneous
rocks by the extremely coarse and systematically variable size of its crystals, or
by an abundance
of crystals with skeletal, graphic, or other strongly directional growth habits,
or by a prominent
spatial zonation of mineral assemblages, including monomineralic zones.
-----------------------------------------------------------------------------------
Petalite Lithium bearing aluminosilicate (LiAlSi(4) O(10) ) with a maximum theoretical Li
content of
4.5%. Current applications largely in the glass and ceramic industry but can
potentially be
used in the battery chemical market using similar processes and technologies used
to process
spodumene.
-----------------------------------------------------------------------------------
Xenolith A foreign rock fragment (e.g., schist) within an intrusive body (e.g., pegmatite)
that is
unrelated to the igneous body.
-----------------------------------------------------------------------------------
Andrada Mining Limited +27 (11) 268 6555
Anthony Viljoen, CEO
Sakhile Ndlovu, Head of Investor
Relations
Nominated Adviser +44 (0) 207 220 1666
WH Ireland Limited
Katy Mitchell
Corporate Advisor and Joint Broker
H&P Advisory Limited
Andrew Chubb
Jay Ashfield +44 (0) 20 7907 8500
Stifel Nicolaus Europe Limited +44 (0) 20 7710 7600
Ashton Clanfield
Callum Stewart
Varun Talwar
Tavistock Financial PR (United
Kingdom) +44 (0) 207 920 3150
Emily Moss
Catherine Drummond
Adam Baynes
__________________________________________________________________________________________
About Andrada Mining Limited
Andrada Mining Limited, formerly Afritin Mining Limited, is a
London-listed technology metals mining company with a vision to
create a portfolio of globally significant, conflict-free,
production and exploration assets. The Company's flagship asset is
the Uis Mine in Namibia, formerly the world's largest hard-rock
open cast tin mine.
Lithium laboratory test work completed during the 2022 calendar
year indicated a high-grade, ultra-low iron lithium petalite
concentrate. The test work to convert lithium petalite concentrate
to battery-grade lithium hydroxide was initiated with Nagrom, a
leading Australian processing company, and commercial engagements
with lithium petalite concentrate off - takers are on-going.
An exploration drilling programme is currently underway with the
aim of expanding the tin resource over the fourteen additional,
historically mined pegmatites, all of which occur within a 5 km
radius of the current processing plant. The Company has set a
mineral resource target of 200 Mt to be delineated within the next
5 years. The substantial mineral resource potential allows the
Company to consider economies of scale.
Andrada is managed by a board of directors with extensive
industry knowledge and a management team with deep commercial and
technical skills. Furthermore, the Company is committed to the
sustainable development of its operations and the growth of its
business. This is demonstrated by how the leadership team places
significant emphasis on creating value for the wider community,
investors, and other key stakeholders. Andrada has established an
environmental, social and governance system which has been
implemented at all levels of the Company and aligns with
international standards.
-END-
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