TIDMBEM
RNS Number : 6518Z
Beowulf Mining PLC
25 May 2021
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation ("MAR") (EU) No. 596/2014, as incorporated into UK law
by the European Union (Withdrawal) Act 2018. Upon the publication
of this announcement, this inside information is now considered to
be in the public domain.
25 May 2021
Beowulf Mining plc
("Beowulf" or the "Company")
Kallak Iron Ore Project - Mineral Resource Estimate and
Exploration Target Upgrade
Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and
development company, announces the results of a Mineral Resource
Estimate ("MRE") Upgrade for the Kallak Iron Ore Project ("Kallak"
or the "Project") prepared by Baker Geological Services Ltd
("BGS").
Highlights:
-- An additional 19 million tonnes ("Mt") of iron ore equating
to a 12.5% increase in the resource.
-- Measured and Indicated Mineral Resource of 132 Mt grading 27.8% iron ("Fe").
-- Inferred Mineral Resource of 39 Mt grading 27.1% Fe.
-- Three distinct areas of elevated copper ("Cu") and gold
("Au") mineralisation have been identified in drilling, running the
length of the Project area, with elevated assay intersections
predominantly lying on the boundaries of the iron
mineralisation.
Copper grades reach up to 1.6%, although this was the maximum
possible Cu value using the assay method employed at the time.
Gold grades reach up to 0.75 g/t from testwork completed in
April 2021 on those pulp samples where the Cu assay was more than
0.1%.
In total, 30 samples were sent for gold assay with only five
samples being below detection limit.
BGS has prepared a Technical Report which serves as an
independent report prepared by the Competent Person ("CP") as
defined by the Pan-European Reserves and Resources Reporting
Committee ("PERC") Standard for Reporting of Exploration Results,
Mineral Resources and Mineral Reserves. PERC sets out minimum
standards, recommendations and guidelines for Public Reporting of
Exploration Results, Mineral Resources and Mineral Reserves in
Europe.
PERC is a member of CRIRSCO, the Committee for Mineral Reserves
International Reporting Standards, and the PERC Reporting Standard
is fully aligned with the CRIRSCO Reporting Template.
All work undertaken in the generation of the MRE is summarised
in the PERC Table 1 Checklist found later in this announcement.
The definitions of Measured, Indicated and Inferred Resources,
as well as Reserves, as used in this report, conform to the
definitions and guidelines of the PERC Reporting Standard,
2017.
Comparison to Previous 2014 MRE
The previous Geovista 2014 MRE reported an Indicated Mineral
Resource of 118 Mt at 27.5% Fe and an Inferred Mineral Resource of
33.8 Mt at 26.2% Fe. This compares to the BGS 2021 MRE, a combined
Measured and Indicated Mineral Resource of 132 Mt at 27.8% Fe and
an Inferred Mineral Resource of 39 Mt at 27.1% Fe.
This equates to an increase of 19 Mt in the upgrade reported
herein for approximately the same Fe grade. The quantity of
Inferred Resource is approximately the same and the upgrade
includes a portion of the resource declared in the Measured
category. This was considered appropriate due to recent Davis Tube
testwork increasing the knowledge of the project's mineralisation
styles.
Geovista also undertook a pit optimisation exercise to report
the final Mineral Resource Statement for Kallak and it is likely
that the difference in assumptions may account for the overall
tonnage difference between the 2014 and 2021 MREs.
Kurt Budge, Chief Executive Officer of Beowulf, commented:
"I am delighted with the results of this upgraded Mineral
Resource Estimate and the doubling of the Exploration Target, which
clearly demonstrate the potential for a mine at Kallak to supply
high-quality iron ore over several decades for fossil-free steel
production in Sweden.
"While we wait for UNESCO to return its comments to the
Government, there have been significant developments in
Norrbotten.
"In February, H2 Green Steel ("H2GS") announced plans to
establish a large-scale steel production facility based on a
fossil-free manufacturing process to be located in the Boden-Luleå
region of Norrbotten. Production will begin in 2024 and by 2030
H2GS will have a production capacity of five million tonnes of
high-quality steel.
"In March SSAB, LKAB and Vattenfall took a new, decisive leap
forward in their work to make fossil-free steel for the global
market. With industrialization of the technology being developed
through HYBRIT to be sited in Gällivare, where the world's first
production plant for fossil-free sponge iron - from feedstock to
steel - is being planned by LKAB.
"Kallak is ideally positioned with respect to both these
projects and can similarly leverage renewable power to ensure the
integrity of a fossil-free supply chain.
"With the recent arrival of a new Governor in Norrbotten, the
Company believes that the County Administrative Board ("CAB") has
an obligation to review its November 2017 position on Kallak.
"Beowulf maintains that the CAB's 2017 statement is invalid and
is further discredited given the fundamental shift in understanding
about the Climate Emergency, and the need for more mines to produce
the metal required for the transition to a Green Economy.
"Permitting downstream fossil-free steel production in the
absence of permitting upstream raw material supply is
non-sensical.
"In its assessment of Kallak, the CAB failed to properly
consider the financial health of Jokkmokk Municipality, finding
that reindeer herding was a better use of the land at Kallak. Over
the last two years, Jokkmokks Kommun has been forced to cut its
budget by SEK 28 million. The Municipality desperately needs the
economic stimulus, investment, jobs and taxes that Kallak will
deliver
" "Kallak will bring billions of SEK in investment and hundreds
of jobs to Jokkmokk. All stakeholders will benefit and all
interests will be safeguarded.
"The Company continues to engage with politicians in Norrbotten
and Stockholm and last week's webinar 'Hållbar Gruvnäring'
(Sustainable Mining) brought together politicians from across the
political spectrum and key stakeholders to discuss the need for
more mines in Sweden.
"Parliamentary questions continue to be put to Minister Baylan
about the Kallak process, which he often refers to as being
complex. The Kallak case is not complex.
"The first exploration licence was granted in 2006 by the Mining
Inspectorate, part of the SGU, a Government Office. The Company has
been permitted to invest over SEK 80 million and, with this
upgraded MRE, defined a potential global iron ore resource of up to
389 million tonnes from which we have produced a market leading
71.5% iron concentrate.
"In late 2014, the Company addressed concerns raised by the CAB
at the time and, in July 2015, the CAB stated that Kallak has a
positive economic case. In October 2015, the Mining Inspectorate
recommended to the Government that the Concession be awarded.
"The direction of travel is irrefutable, as is the Climate
Emergency, the transition to a Green Economy, and the need for more
metal from more sustainable mines. Kallak is part of this
future.
"I look forward to providing further updates in due course."
Background to the MRE
Baker Geological Services Ltd was requested by Beowulf to
undertake a MRE and Exploration Target ("ET") generation on
Kallak.
The Kallak deposit is considered an advanced exploration
project. No mining has taken place at the Project except for the
collection of a bulk sample from trenches.
The Kallak deposit and iron mineralisation in the area has been
known to exist since the 1940's. They were first investigated by
the Swedish Geological Survey ("SGU") during 1948, with seven
diamond drillholes completed. The SGU returned and investigated the
area again in the early 1970's, then with six new drillholes.
Comprehensive ground geophysical surveys were carried out in
connection to these two campaigns.
Historical exploration led to the establishment of a Mineral
Resource reported in November 2014. This was compiled by Geovista
AB, titled "Kallak North and South Mineral Resource update".
Between 2010 and 2015 the company also completed various technical
studies comprising a conceptual study, environmental impact
assessment, metallurgical studies and logistical studies to guide
the future development of the Project.
In completing the updated MRE reported herein, geology and
mineralisation models have been created with full suite XRF grades
(Fe, SiO(2) , Al(2) O(3) , P, Mn, S, CaO, MgO, TiO(2) and K(2) O)
being estimated into the mineralisation model. In addition to the
XRF assay grades, Loss on Ignition ("LOI"), FeO by Titration and
Magnetic Susceptibility data has been estimated into the
mineralisation model. FeO and Magnetic Susceptibility data, along
with the XRF grades have been used extensively to verify the
mineralogical components of the model, this being the most
significant change to the updated Mineral Resource model. Density
testwork has been completed to allow a tonnage estimate and Quality
Assurance Quality Control programmes have been sufficient to verify
the quality of data used in the MRE. The model created includes
Measured, Indicated and Inferred Mineral Resources.
BGS has prepared a Technical Report which serves as an
independent report prepared by the Competent Person as defined by
the Pan-European Reserves and Resources Reporting Committee
Standard for Reporting of Exploration Results, Mineral Resources
and Mineral Reserves. PERC sets out minimum standards,
recommendations and guidelines for Public Reporting of Exploration
Results, Mineral Resources and Mineral Reserves in Europe.
PERC is a member of CRIRSCO, the Committee for Mineral Reserves
International Reporting Standards, and the PERC Reporting Standard
is fully aligned with the CRIRSCO Reporting Template.
All work undertaken in the generation of the MRE is summarised
in the PERC Table 1 Checklist found later in this announcement.
The definitions of Measured, Indicated and Inferred Resources,
as well as Reserves, as used in this report, conform to the
definitions and guidelines of the PERC Reporting Standard,
2017.
The data used for the MRE, including drillhole databases and
topographic surveys, was provided by Beowulf.
BGS has been unable to undertake a site visit to the Project due
to the COVID-19 global pandemic. A site visit will be undertaken
when possible. BGS was supplied with a comprehensive core
photograph library and has discussed the Project in detail with
Company Personnel and external consultants. In addition, the
Project was visited by Dr Bo Arvidson of Bo Arvidson Consulting LLC
in October 2020 and in 2013. Dr Arvidson is a Mineral Processing
Engineer with over 50 years industry experience and is considered a
Competent Person in his field. Dr Arvidson has a long history with
the Project and visited in October 2020 to assist in the selection
of core for ongoing metallurgical testwork. Dr Arvidson visited the
core storage facilities during this recent trip, met company
personnel and inspected core to perform streak tests to assess the
iron oxide mineralogy. BGS has relied on the opinion of Dr Arvidson
in terms of the Project's integrity.
MRE
To determine the final MRE, the model has been subjected to an
optimisation exercises to determine the proportion of the material
defined that has a reasonable prospect of economic extraction via
open pit mining methods.
No cut-off grade has been applied to the final MRE due to the
general lack of grade sensitivity.
This represents the material considered by BGS to have
reasonable prospects for eventual economic extraction
potential.
The statements have been classified by Competent Person, Howard
Baker (FAusIMM(CP)) in accordance with the PERC Standard 2017. It
has an effective date of 9 May 2021. Mineral Resources that are not
Mineral Reserves have no demonstrated economic viability. BGS and
Beowulf are not aware of any factors (environmental, permitting,
legal, title, taxation, socio-economic, marketing, political, or
other relevant factors) that have materially affected the MRE.
The quantity and grade of reported Inferred Mineral Resources in
this estimation are uncertain in nature and there has been
insufficient exploration to define these Inferred Mineral Resources
as an Indicated or Measured Mineral Resource; and it is uncertain
if further exploration will result in upgrading them to an
Indicated or Measured Mineral Resource category.
BGS notes that the Mineral Resource has a reasonable prospect
for eventual economic extraction but are not considered Mineral
Reserves. Mineral Reserves are estimates of the tonnage and grade
or quality of material contained in a Mineral Resource that can be
economically mined and processed. To be considered a Mineral
Reserve, modifying factors must be applied to the MRE as part of
the preparation of a prefeasibility study ("PFS") or a feasibility
study ("FS") as outlined in the PERC Standard. The estimated amount
of saleable material contained in the final product must
demonstrate a positive Net Present Value ("NPV") using an
appropriate discount rate and must demonstrate that eventual
extraction could be reasonably justified. The major categories of
modifying factors include Mining; Processing; Metallurgical;
Environmental; Location and infrastructure; Market factors; Legal
(including land tenure and third-party ownership); Economic;
Social, and Governmental.
Table ES-1: Mineral Resource Statement for the Kallak Project at
a 0% Fe cut-off grade
Deposit Classification Million Density Fe FeO SiO(2) Al(2) P S
O(3)
Tonnes (g/cm(GBP) (%) (%) (%) (%) (%) (%)
)
-------------- ---------------- -------- ------------ ----- ----- ------- ------ ----- ------
Kallak North Measured 16 3.5 33.6 10.5 43.4 2.9 0.04 0.002
--------------
Indicated 95 3.3 27.0 7.1 49.8 4.5 0.03 0.002
Sub-Total 111 3.3 28.0 7.6 48.9 4.3 0.03 0.002
------------------------------- -------- ------------ ----- ----- ------- ------ ----- ------
Inferred 25 3.4 28.3 7.8 48.1 4.2 0.04 0.002
------------------------------- -------- ------------ ----- ----- ------- ------ ----- ------
Kallak South Measured
North
--------------
Indicated 21 3.3 26.9 7.2 49.3 4.9 0.04 0.003
Sub-Total 21 3.3 26.9 7.2 49.3 4.9 0.04 0.003
------------------------------- -------- ------------ ----- ----- ------- ------ ----- ------
Inferred 6 3.2 23.4 6.5 50.1 6.6 0.05 0.004
------------------------------- -------- ------------ ----- ----- ------- ------ ----- ------
Kallak South Measured
South
--------------
Indicated
--------------
Sub-Total
---------------- -------- ------------ ----- ----- ------- ------ ----- ------
Inferred 8 3.3 26.1 12.0 50.1 5.2 0.05 0.009
------------------------------- -------- ------------ ----- ----- ------- ------ ----- ------
Total Measured 16 3.5 33.6 10.5 43.4 2.9 0.04 0.002
-------------- ---------------- -------- ------------ ----- ----- ------- ------ ----- ------
Indicated 116 3.3 27.0 7.1 49.7 4.6 0.03 0.002
------------------------------- -------- ------------ ----- ----- ------- ------ ----- ------
Sub-Total 132 3.3 27.8 7.5 48.9 4.4 0.03 0.002
------------------------------- -------- ------------ ----- ----- ------- ------ ----- ------
Inferred 39 3.3 27.1 8.5 48.8 4.8 0.04 0.004
------------------------------- -------- ------------ ----- ----- ------- ------ ----- ------
Notes:
(1) Mineral Resources, which are not Mineral Reserves, have no
demonstrated economic viability.
(2) The effective date of the Mineral Resource is 9 May
2021.
(3) The Open Pit Mineral Resource Estimate was constrained
within lithological and grade-based solids and within an optimised
pit shell defined by the following assumptions; base case metal
price of USD130 / tonne for a 65% Fe concentrate; Fe recovery of
71% at Kallak North, 86% at Kallak South North and 94% at Kallak
South South; Fe concentrate grades of 68% at Kallak North, 70% at
Kallak South North and 69% at Kallak South South; Processing costs
of USD6.8 / t wet; Selling cost of USD21.0 / t wet concentrate;
Mining cost of Ore of USD3.3 / t, mining cost of waste of USD3.0 /
t and an incremental mining cost per 10 m bench of USD0.05 / t;
Wall angles of 30deg within the overburden and 47.5deg in the fresh
rock.
(4) Mineral Resources have been classified according to the PERC
Standards 2017, by Howard Baker (FAusIMM(CP)), an independent
Competent Person as defined in the PERC Standard 2017.
In total, BGS has derived a Measured and Indicated Mineral
Resource of 132 Mt grading 27.8% Fe, 7.5% FeO, 48.9% SiO(2) , 4.4%
Al(2) O(3) , 0.03% P and 0.002% S.
BGS has also defined an Inferred Mineral Resource of 39 Mt
grading 27.1% Fe, 8.5% FeO, 48.8% SiO(2) , 4.8% Al(2) O(3) , 0.04%
P and 0.004% S.
The pit optimisation undertaken shows a strip ratio of 1 ore
tonne for every 1.22 waste tonne.
Exploration Targets
In addition to the MRE, BGS has updated the Exploration Target
for the Project with inclusion of the Parkijaure permit area.
At Kallak North, material has been modelled below the currently
classified resource. This material is unclassified at present but
represents a valid target for future exploration. Based on the
geological model created, along with the grades seen in Kallak
North, BGS has reported an Exploration Target of between 3 Mt and
7.5 Mt grading between 20% Fe to 30% Fe. The potential quantity and
grade are conceptual in nature as there has been insufficient
exploration to estimate a Mineral Resource; and that it is
uncertain if further exploration will result in the estimation of a
Mineral Resource.
In the Kallak Permit area, a 'Gap' exists between Kallak South
North and Kallak South South and represents a prospective untested
mineralisation target. BGS estimated an approximate tonnage and
grade of material lying between Kallak South North and Kallak South
South. A simple wireframe was generated to allow for an approximate
volume of mineralised material to be estimated with the thickness
and orientation of this wireframe being based on the continuation
of the mineralised units modelled at Kallak South North and Kallak
South South along with the geophysical signature observed. Two
drillholes exist in this area; both are shallow and did not
intercept any mineralisation of material width or grade, although
the southern drillhole, KAL10044, within the gap, did encounter
some of reported Cu / Au mineralisation. Given the geophysical
signature within the gap and the overall synform structure
proposed, it is possible that the iron bearing lithologies lie
below the two drillhole completed within this area.
Based on the wireframe created, along with the grades seen in
Kallak South North and Kallak South South, BGS report an
Exploration Target of between 25 Mt and 75 Mt grading between 20%
Fe to 30% Fe. The potential quantity and grade are conceptual in
nature as there has been insufficient exploration to estimate a
Mineral Resource; and that it is uncertain if further exploration
will result in the estimation of a Mineral Resource.
In the Parkijaure Permit area, mapping, sampling, geophysical
surveys and SGU historical drilling within proximity to the Beowulf
Permits has indicated the presence of further iron mineralisation
and an extension to the mineralisation observed in the Kallak
Permits.
Limited outcrop exists within the Parkijaure area and in
general, the magnetic anomaly data is less intense than in the
Kallak permit area. This is possibly a factor of the deeper glacial
till material in the southern permits or potentially a more
disseminated style of mineralisation.
BGS assessed all available data from the Parkijaure Permit and
created simple trace lines along the magnetic anomalies considered
strong enough to be related to significant iron mineralisation
within the Parkijaure Permit.
Based on the trace lines created, having a total strike length
of 4.5 km, limiting the depth of mineralisation to 200 m and the
width of mineralisation to 30 m, BGS has reported an Exploration
Target of between 45 Mt and 135 Mt grading between 20% Fe to 30%
Fe. The potential quantity and grade are conceptual in nature as
there has been insufficient exploration to estimate a Mineral
Resource; and that it is uncertain if further exploration will
result in the estimation of a Mineral Resource.
In total, BGS has reported an Exploration Target of between 73
Mt and 218 Mt grading between 20% Fe to 30% Fe. The potential
quantity and grade are conceptual in nature as there has been
insufficient exploration to estimate a Mineral Resource; and that
it is uncertain if further exploration will result in the
estimation of a Mineral Resource.
Competent Person ("CP")
Mr Howard Baker of BGS is a resource geologist with 25 years'
experience covering multiple commodities from early-stage
exploration through to definitive feasibility studies. Mr Baker is
the Managing Director of BGS and previously worked for the
International Mining Consultancy, SRK Consulting (UK) Ltd ("SRK")
where he was employed for eight years as a Principal Consultant and
Practise Leader. In his time at SRK, he focussed on the management
of Mineral Resource Estimates with a strong focus on technical
quality management and compliancy to international reporting codes.
In addition, he played a key role in advising on suitable
exploration protocols and drill programmes and effectively assisted
clients in the development of numerous large-scale projects. Prior
to his time at SRK, Mr Baker lived and worked in Australia, working
for Rio Tinto, BHP Billiton, Iluka Resources and Anaconda
Nickel.
Mr Baker was educated in the United Kingdom, being a dual
British and Australian citizen. He is a Chartered professional
fellow (#224239) of the Australasian Institute of Mining and
Metallurgy.
Mr Baker has extensive global experience in the geology and
Mineral Resource Estimation of iron ore projects and also worked as
a mine geologist and specialist resource geologist in the iron ore
Pilbara district of Western Australia.
Mr Baker has reviewed the technical information included in this
announcement and approves the disclosure of technical information
in the form and context in which it appears, in his capacity as a
CP as required under the AIM rules.
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Officer Tel: +44 (0) 20 7583 8304
SP Angel (Nominated Adviser & Broker)
Ewan Leggat / Stuart Gledhill / Adam Cowl Tel: +44 (0) 20 3470 0470
Blytheweigh (Financial PR & IR)
Tim Blythe / Megan Ray Tel: +44 (0) 20 7138 3204
Cautionary Statement
Statements and assumptions made in this document with respect to
the Company's current plans, estimates, strategies and beliefs, and
other statements that are not historical facts, are forward-looking
statements about the future performance of Beowulf. Forward-looking
statements include, but are not limited to, those using words such
as "may", "might", "seeks", "expects", "anticipates", "estimates",
"believes", "projects", "plans", strategy", "forecast" and similar
expressions. These statements reflect management's expectations and
assumptions in light of currently available information. They are
subject to a number of risks and uncertainties, including, but not
limited to , (i) changes in the economic, regulatory and political
environments in the countries where Beowulf operates; (ii) changes
relating to the geological information available in respect of the
various projects undertaken; (iii) Beowulf's continued ability to
secure enough financing to carry on its operations as a going
concern; (iv) the success of its potential joint ventures and
alliances, if any; (v) metal prices, particularly as regards iron
ore. In the light of the many risks and uncertainties surrounding
any mineral project at an early stage of its development, the
actual results could differ materially from those presented and
forecast in this document. Beowulf assumes no unconditional
obligation to immediately update any such statements and/or
forecast.
About Beowulf Mining plc
Beowulf Mining plc ("Beowulf" or the "Company") is an
exploration and development company, listed on the AIM market of
the London Stock Exchange and the Spotlight Exchange in Sweden.
Beowulf's purpose to be a responsible and innovative company
that creates value for our shareholders, wider society and the
environment, through sustainably producing critical raw materials,
which includes iron ore, graphite and base metals, needed for the
transition to a Green Economy and to address the Climate
Emergency.
The Company's asset portfolio is diversified by commodity,
geography and the development stage of its various projects.
The Company's most advanced project is the Kallak iron ore asset
in northern Sweden. A potential 389 million tonne resource which
can produce a 'market leading' concentrate of 71.5% iron content
and is a potential source of supply for fossil-free steel
production in Sweden for decades to come.
Fennoscandian Resources ("Fennoscandian"), a wholly-owned
subsidiary, is pursuing a strategy to develop a resource and
production base of graphite that can provide security of supply and
contribute to Finland's ambitions of achieving battery
manufacturing self-sufficiency, focusing on both natural flake
graphite production and a Circular Economy/recycling strategy to
produce high-value graphite products. The Company is also
developing its knowledge in processing and manufacturing
value-added graphite products, including anode material for
lithium-ion batteries.
Since Fennoscandian was acquired by Beowulf in January 2016, the
Company has invested approximately EUR2.2 million in graphite
exploration, resource development, metallurgical testwork and the
assessment of market applications for graphite supplied from its
Aitolampi project, including lithium-ion battery applications.
Fennoscandian has recently signed a Memorandum of Understanding
("MoU") with Epsilon Advance Materials Limited ("EAMPL"). The MoU
enables Fennoscandian to build its downstream capability,
collaborating with a strong and innovative technology/processing
partner, and for EAMPL to firmly establish itself in Finland, as a
market-entry point for supplying pre-cursor anode material into
Europe. The MoU addresses the development of a strategic processing
hub for both natural flake and recycled graphite to be located in
Finland.
In addition, a Scoping Study contract for the Aitolampi graphite
project has been awarded to AFRY Finland Oy. The purpose of the
Scoping Study is to verify the robustness of the work completed by
Fennoscandian, and to provide a roadmap for the next project
development stage, most likely a Pre-feasibility Study. The output
of the Scoping Study will enable Fennoscandian to share information
on the Aitolampi project and communicate with the local community
and other important stakeholders.
In Kosovo, the Company owns approximately 48.4% of Vardar
Minerals ("Vardar"), which is focus on exploration in the Tethyan
Belt, a major orogenic metallogenic province for gold and base
metals. Vardar is delivering exciting results for its Mitrovica
licence which has several exploration targets, including lead,
zinc, copper and gold. It also has the Viti licence which is
showing potential for copper-gold porphyry mineralisation. With
Beowulf's support, Vardar is focused on making a discovery.
Kallak is the foundation asset of the Company, but with Vardar
and Fennoscandian, the Company has many opportunities to grow, each
business area displaying strong prospects.
PERC Table 1
Notes
The following extracts are taken from the PERC Reporting
Standard 2017 regarding the PERC Table 1 checklist and its use in
the declaration of a Mineral Resource.
Table 1 is a check list and guideline to which those preparing
reports on Exploration Results, Mineral Resources and Mineral
Reserves should refer. The check list is not prescriptive and, as
always, relevance and materiality are overriding principles which
determine what information should be publicly reported.
Table 1, included at the end of the Standard, supplies an
outline of items that should be considered when evaluating a
minerals project. The importance of each item will vary with the
specific project and it is recognised that, for some projects,
other items may be relevant which are not included on the list.
Table 1 should be considered as a guide to facilitate a reasoned
and balanced approach to reporting. However, many decisions, such
as the classification of material as a Mineral Resource or a
Mineral Reserve, remain a matter of professional judgement based on
knowledge, experience, and industry practices.
Public disclosure is required of those items in Table 1 most
likely to affect the accuracy of estimates made in the report. The
authors of reports should both identify and evaluate these
important factors in their reports.
The compilation, assessment, and Public Reporting of Table 1
must be undertaken for (i) the first-time declaration of
Exploration Results, a Mineral Resource or a Mineral Reserve, and
(ii) in instances where these items have materially changed from
when they were last Publicly Reported for significant projects.
In the context of complying with the principles of the PERC
Standard, the Competent Person should consider all of the items in
the relevant sections of Table 1 on an 'if not, why not' basis
within the supporting documentation. The Competent Person should
complete an overall assessment of the relative importance of the
Table 1 items in terms of their possible impact on the future
development of the mineral project and the results of this
assessment should be presented in the Public Report.
As this is the first-time declaration of Mineral Resources using
the PERC standard, BGS has compiled Table 1 and is included in the
following section. BGS considers all items referenced in Table 1 to
have been fully disclosed within the technical report.
ASSESSMENT CRITERIA EXPLORATION MINERAL MINERAL
RESULTS RESOURCES RESERVES
Table 1 Part 1 - General
Purpose of Report (i) The report includes a title page and Table of Contents, including figures
and tables.
(ii) The report has been prepared for Beowulf Mining PLC and is intended
as a full evaluation of the Mineral Resource Potential of the Kallak Iron
Ore Project under licence to Beowulf. The effective date of the report is
9 May 2021 and no further work is outstanding to complete this update to
the Mineral Resource model.
(iii)The report is considered PERC compliant.
=============================================================================================
Project Outline Baker Geological Services Ltd ("BGS") has been requested by Beowulf Mining
PLC ("Beowulf" hereinafter also referred to as the "Company" or the "Client")
to undertake a Mineral Resource Estimate ("MRE") and Exploration Target
("ET") generation on the Kallak Iron Ore Project (the "Project") located
in Sweden.
=============================================================================================
History The Kallak deposit and iron mineralisation in the area has been known to
exist since the 1940's. They were first investigated by the Swedish Geological
Survey (SGU) during 1948, with seven diamond drillholes completed. SGU returned
and investigated the area again in the early 1970's, then with six new drillholes.
Comprehensive ground geophysical surveys were carried out in connection
to these two campaigns.
Historical exploration led to the establishment of a Mineral Resource reported
in November 2014. This was compiled by Geovista AB, titled "Kallak North
and South Mineral Resource update". Between 2010 and 2015 the company also
completed various technical studies comprising a conceptual study, environmental
impact assessment, metallurgical studies and logistical studies to guide
the future development of the project.
=============================================================================================
Key Plan, Maps and All maps have been provided with appropriate scale bars, compass directions
Diagrams and annotations and legends where required.
=============================================================================================
Project Location The Project is in the Jokkmokk municipality, north of the Arctic Circle,
and Description approximately 40 km west of Jokkmokk city centre and 80 km southwest of
the major iron ore mining centre of Malmberget in the County of Norrbotten,
northern Sweden. LKAB's Kiruna iron ore mine, the world's second largest
underground mine, is located approximately 120 km to the northeast. The
exploration permits are centred on latitude 66 47'N and longitude 19 08'E.
Maps have been produced showing exploration and exploitation rights of Beowulf
along with tables showing licence name, ID, area and expiration date.
=============================================================================================
Topography and Climate The Project area comprises forested, low hilly ground close to a main paved
road between Kvikkjokk and Jokkmokk. The principal land use is forestry,
with the majority of the ground area being owned by a large local forestry
company. Regional vegetation is generally comprised of mature pine, birch
and spruce trees. The ground elevation varies between 300m and 450m above
sea level in an area of undulating forested or logged ground forming a peninsula
surrounded by Lake Parkijaure. The highest point is the Råvvåive
hill at 481m located in the southeast part of the project area.
Climatic conditions are typical of northern Sweden with temperate summers
and cold winters. The summer months between June and August see temperatures
ranging between 10degC and 25degC, in winter (November-April) the temperatures
drop to between -5degC and -30degC. The annual rainfall for the area is
approximately 530mm, ranging 72mm to 189mm per month, and falling as snow
in winter. Snow covers the area for 183 days of the year attaining a thickness
ranging from 0.6m to 1.2m in March.
=============================================================================================
Geology The Project is located within the Svecofennian shield, consisting of metamorphic,
sedimentary, and volcanic rocks that are commonly between 1,900Mya and 1,870Mya.
The area around Kallak, and the villages of Björkholmen and Randijaur,
is dominated by mafic to intermediate volcanics and metavolcanics as well
as gabbro, diorite and ultramafic rocks and their metamorphic equivalents.
The bedrock of the area is thus predominantly mafic.
The iron formations at Kallak are outcropping and consist of banded iron
oxides interlayered with quartz, feldspar and some hornblende. The dominant
host rock is a grey, altered volcanic unit.
The deposits occur in a north-south oriented trend of altered sediments
and felsic volcanic rocks of early Proterozoic age within granitic gneisses.
The deposits are up to 300 m wide at surface outcrop and are located on
topographically high ground.
The iron-oxide mineralisation at the Project is associated with highly deformed
and banded quartz-feldspar metamorphic units. These have been termed banded
iron formations ("BIF") thought to have been created through typical volcano
sedimentary processes. More recently, alternative descriptions have been
given by the SGU (Claeson & Antal Lundin, 2020), most notably that the host
lithology is termed a garnet-bearing quartz trachyte, formed in a stratiform-stratabound
volcanogenic setting, possibly during subaerial processes. As part of the
Mineral Resource Estimate, external consultants re-logged over 1,000 m of
core. The main lithologies logged (and modelled) are, Schists (Biotite and
Muscovite rich), Banded Iron Formations, Calcitic Marbles, Dolomitic Marbles,
Amphibolite and Tillite.
=============================================================================================
Mineralogy Historically, Kallak has been reported to contain the iron oxides Haematite
and Magnetite. Recent studies undertaken as part of this update show that
Maghemite is also believed to be contained within the iron oxide mineral
assemblage. This was identified through an assessment of the logged lithology
(designated HIF or MIF depending on the haematite or magnetite dominance),
assay data, the magnetic susceptibility, FeO and Satmagan data, all of which
provide an indication as to the mineralogy. Additionally, streak tests were
carried out on sections of drill core where streaks of red through brown
and black were observed, suggesting a transitional iron oxide mineral assemblage.
The project area also contains zones of elevated copper ("Cu") and gold
("Au") mineralisation. Three distinct areas have been identified through
drilling activities by Beowulf, running the length of the Project area with
the elevated assay intersections predominantly lying on the boundaries of
the iron mineralisation. Cu grades reach up to 1.6%, although this was the
maximum possible Cu value using the assay method employed at the time. Au
grades reach up to 0.75 g/t from testwork completed in April 2021 on those
pulp samples where the Cu assay was more than 0.1%. In total, 30 samples
were sent for Au assay with only five samples being below detection limit.
The structure is also believed to control the mineralisation in places.
=============================================================================================
Mineral rights and All exploration and exploitation permits are described within the report
land ownership with appropriate maps and tables.
=============================================================================================
Legal Aspects and A description of the Swedish mining industry, the mining tenure and the
Tenure licensing agreements are described within the report.
=============================================================================================
Licences and Permits The status of licences and permits is given in the report.
=============================================================================================
Personal introduction BGS has been unable to undertake a site visit to the Project due to the
into projects and COVID-19 global pandemic. A site visit will be undertaken when possible.
verification of BGS was supplied with a comprehensive core photograph library and has discussed
the data the Project in detail with Company Personnel and external consultants. In
addition, the Project was visited by Dr Bo Arvidson of Bo Arvidson Consulting
LLC in October 2020 and in 2013. Dr Arvidson is a Mineral Processing Engineer
with over 50 years industry experience and is considered a Competent Person
in his field. Dr Arvidson has a long history with the Project and visited
in October 2020 to assist in the selection of core for ongoing metallurgical
testwork. Dr Arvidson visited the core storage facilities during this recent
trip, met company personnel and inspected core to perform streak tests to
assess the iron oxide mineralogy. BGS has relied on the opinion of Dr Arvidson
in terms of the Projects integrity.
=============================================================================================
ASSESSMENT CRITERIA EXPLORATION MINERAL MINERAL
RESULTS RESOURCES RESERVES
Table 1 Part 2 - Sampling Techniques and Data
Type(s) of sampling In total, including extensions, 151 diamond drillholes have been completed
for a total of 31,814 m. 132 drillholes have been completed by Beowulf with
the remainder by SGU.
Beowulf commenced exploration in 2010 in the Kallak permit areas. Initial
drilling in 2010 targeted Kallak North and the northern portion of Kallak
South. Drilling in 2011 then progressed into the southern end of Kallak
South. Follow-up campaigns in 2012 and 2013 then focussed on the higher-grade
areas of KN and KSN. The last campaign in 2014 aimed to infill-drill all
three areas to between 100 m by 100 m to 50 m by 50 m to allow for consistently
spaced data to be generated for use in Mineral Resource estimation.
Assaying of drill core samples has used accredited laboratories with standard
XRF analysis being used. Analysis for FeO and Satmagan along with magnetic
susceptibility measurements of drill core and pulp samples has taken place.
Suitable density testwork has been completed on drill samples to allow a
grade against density regression curve to be applied to the resource model.
Quality assurance / quality control programmes have been completed by Beowulf
with the use of blanks, standards, and duplicates. No material biases have
been identified.
All drill holes have been plotted on maps to illustrate the quantity of
data available.
========================================================================================
Drilling techniques All drilling has been by diamond coring.
Core recovery has been recorded by Beowulf during the geotechnical logging.
In total, 4,605 core recovery measurements have been recorded across the
2010, 2013 and 2014 drill programmes.
The average core recovery recorded is 99.5%. BGS acknowledges that core
recovery values below 90% do exist however these are considered minimal
with most of these are lying outside of the mineralised bodies. A review
of the drill core photographs also confirms that recovery within the mineralised
zones is high and as such BGS considers that no bias exists in relation
to the recovery.
========================================================================================
Drill sample recovery BGS does not consider the sample recovery to be a risk to the project.
========================================================================================
Logging Prior to 2013, after extracting from the core barrel, the core was briefly
logged with a handheld magnetic susceptibility meter directly in the field
to provide a basis for later geological logging and sampling. The core boxes
were transported from the Kallak site to the ALS Global ("ALS") laboratory
facilities in Piteå (approximately 230 km along asphalt roads), where
the core was logged geologically by JIMAB staff.
Pre-2013, logging often did not adhere strictly to lithological contacts,
but was often aligned to core box intervals. This has led to issues with
sampling of mixed lithology types, which in turn affected the statistically
distinct geochemical populations. This issue was identified in 2013 and
was the catalyst to update the logging protocols.
A review of logging protocols was conducted, following identification of
the issue identified in 2013 , by Micon International Ltd ("Micon"), and
updated documentation was put in place for all logging to ensure international
best practices were in place. The review indicated that previous procedures
were not being adhered to by all drillers, technicians and geologists and
that there were gaps in the data collection. The following changes were
thereby made to address the highlighted issues:
-- Core handling issues at the drill rig were resolved.
-- Daily progress reports from rig technicians.
* Additional checks of drilling and core quality at the
rigs, including checking for imperial and metric
measurement mix-ups.
-- Geotechnical logging protocols set-up, including core recovery and RQD
indices.
-- Increasing the frequency of magnetic susceptibility measurements to every
50 cm.
-- Updated cross-sections, plans and database provided to the geological
modelling team on a fortnightly basis.
-- Logging adhered strictly to lithological contacts and not core box intervals.
-- Geological logging codes updated. This included increasing the level
of detail to allow for a more detailed assessment of grade variability.
-- Undertaking frequent structural orientation measurements using laser
scanning device, and
-- Construction of own core logging facilities in Jokkmokk, approximately
50 km from the project.
Updated Protocols were adopted for all 2013 and 2014 holes. After construction
in late 2013, all logging was undertaken in JIMAB's own facilities in Jokkmokk.
The core boxes were transported by the drillers on a daily basis from the
drill site to the secure facilities. The core boxes were then, after geotechnical,
lithological and structural logging, shipped on sealed pallets by courier
to ALS in Piteå for cutting and further processing of selected samples.
In the logging facilities, the depth intervals of the drillers were checked,
and every meter was marked out on the core boxes. The geotechnical features
were logged to verify depth marks, number of fractures and RQD. Magnetic
susceptibility was measured on a 50 cm intervals basis in mineralised sections
and 1 m intervals outside of mineralisation. Lithology sections was set
not to be shorter than 1 m, nor longer than 15 m. Assay sections do not
overlap lithological contacts.
In 2016, a total of 54 holes were re-logged to ensure consistency between
drilling campaigns. BGS was supplied with a database including the re-logged
material.
Structural logging has taken place at the Project for 23 of the drillholes
completed.
After the sample mark-up is completed, the boxes were photographed. Photos
were taken both dry and wet from a mounted camera, 1 m above the core.
BGS was supplied with the full core photograph database which was used as
a validation tool throughout the modelling exercise. The core photographs
are high resolution, taken dry and wet.
========================================================================================
Other sampling techniques BGS is not aware of any other sampling techniques that effect the generation
of the Mineral Resource Estimate.
========================================================================================
Sub-sampling techniques All core samples are split, crushed and pulverised by ALS Piteå, Sweden.
and sample preparation
========================================================================================
Assay data and laboratory After core-cutting, the samples are then crushed to sub 2 mm, split into
investigation coarse sample and coarse reject material, then pulverised to sub 75 microns.
A 30g sub-split of the pulverised material is used for subsequent assaying
(XRF and FeO analysis) and 3 g for pycnometry density measurements (where
applicable).
As part of their standard preparation package, ALS implement quality control
checks on the crushing and pulverising to ensure that the grain size requirements
have been met. Following pulverisation, samples are securely shipped to
ALS Loughrea in Ireland for assaying in batches containing boxes of 30 g
samples in paper packets.
All 2010 to 2014 samples were assayed for major oxide and element geochemistry
by XRF with either of ALS methods XRF11b (2010 and 2011 samples) or XRF21b
(2012 to 2014 samples).
LOI is measured using thermogravimetry at 1,000 C (ALS code GRA05).
In addition to XRF (+LOI), for pre-2013 samples, a small number of samples
were analysed with ALS method Fe- VOL05, which gives the contents of Ferrous
iron, Fe2+. This method allows for the relative proportions of magnetite
to haematite to be calculated, since ferrous iron only occurs in magnetite
(formula can be written as either Fe3O4 or FeO.Fe2O3) and not in haematite
(formula Fe2O3). For the post-2013 campaigns, Fe-VOL05 has been conducted
for every sample.
In addition to the XRF and magnetic susceptibility measurements, the Company
also conducted Satmagan measurements on 224 samples throughout Kallak North
in 2013.
A total of 22,778 magnetic susceptibility readings were recorded between
1948 (SGU) and 2014 to assist with logging and sample selection. The readings
have been used to assist with geological modelling but have not been used
in the grade estimation.
Beowulf has recently completed a magnetic susceptibility study using existing
pulp samples. This was undertaken to assess the correlation between assay
Fe%, FeO% and magnetic susceptibility and subsequently used for mineralogical
studies. In total, 7,713 pulp magnetic susceptibility readings were taken.
Three readings were taken for each pulp with an average value being calculated.
========================================================================================
Verification of BGS was supplied with a database from Beowulf, who, with the assistance
results of CSA Global were responsible for compiling all new and historical data
into a single database. BGS and Beowulf discussed the database at various
stages of the MRE with amendments being required as the data was verified.
Drillhole data at Beowulf is stored in an Access database.
Overall, the data was found to be in good condition with only minor errors
and corrections being required.
BGS has also been given access to a comprehensive core photo library which
was used throughout the MRE to verify intersection intervals and material
types.
After a review of the available data and through the studies completed by
Beowulf and BGS in verifying the data, BGS is confident that the quality
of the data provided by Beowulf is suitable for use in the production of
a Mineral Resource Estimate.
Additionally, core was inspected by Independent Consultant, Dr Bo Arvidson
in 2020.
========================================================================================
Data location Collar co-ordinates, as well as starting azimuth, for Company drillholes
have been surveyed with high-resolution RTK-GPS surveying equipment, allowing
for centimetre scale accuracy. The deviation from planned locations is generally
small, typically within 1 m to 2 m, the azimuth has varied in some areas
up to 10 to 15 at the most. 11 holes have been surveyed using low-resolution
handheld GPS devices, as they have not been clearly marked in the field.
It is recommended by that all collars are surveyed using RTK-GPS for all
future exploration.
For the Beowulf drilling, down-hole surveys have been conducted on 3 m intervals
using Deviflex and IS-Gyro instruments depending on the drilling contractor.
No issues with the surveys have been identified.
========================================================================================
Data density and Due to the amount of drilling across the Project, the risks associated with
distribution the geological interpretation have been mitigated to allow continuous iron
formation units to be modelled. The quantity of drilling data does decrease
to the south although continuous iron formations are still possible to model
in areas of sparser data.
KN shows greater degrees of geological complexity at present, possibly due
to the greater level of exploration focus and data available.
Based on the work undertaken and the statistical validation steps carried
out, BGS is confident that the geological models created honours the understanding
of the local scale geology and grade distribution as accurately as possible
given the data made available
========================================================================================
Reporting Archives BGS was supplied with a database from Beowulf , who with the assistance
of CSA Global were responsible for compiling all new and historical data
into a single database.
========================================================================================
Audits or reviews As previously mentioned, a review of logging protocols was conducted by
Micon in 2013 with all recommendations taken on board.
========================================================================================
ASSESSMENT CRITERIA EXPLORATION MINERAL MINERAL
RESULTS RESOURCES RESERVES
Table 1 Part 3 - Reporting of Exploration Results
Exploration work The Project was first investigated by the Swedish Geological Survey (SGU)
carried out by other during 1948, with seven diamond drillholes completed. SGU returned and investigated
parties the area again in the early 1970's, then with six new drillholes. Comprehensive
ground geophysical surveys were carried out in connection to these two campaigns.
The geophysical data was analysed by Geovista in 2011 and 2012 (Mattsson,
2011 and Mattsson, 2012).
=========================================================================================
Data compositing Data compositing is undertaken to reduce the inherent variability that exists
(aggregation) methods. within the population and to generate samples more appropriate to the scale
of the mining operation envisaged. It is also necessary for the estimation
process, as all samples are assumed to be of equal weighting and should therefore
be of equal length.
The estimation process assumes an equivalent weighting per composite. It is
therefore necessary to discard or ignore remnant composites that are generated
in the downhole compositing process to avoid a bias in the estimation. However,
based on the results of a composite length analysis on each domain during
the parameter selection stage, it was decided to use all samples, meaning
no shorter lengths were discarded. Edge samples below a set value of 0.5 m
were included in the previous sample down the hole.
Due to the low variance of the Fe data, being the primary driver for the modelling
process, it is also the opinion of BGS that all deposits are insensitive to
variations in the composite length and the treatment of smaller sample lengths.
The composite length was chosen using the Fe assay with the same length applied
to all analytes. Kallak North, a soft boundary was selected due to the gradational
contact between the units in both the magnetic and haematitic zones
=========================================================================================
Relationship between The sample length within the raw drillhole database was assessed within the
mineralisation widths modelled iron formation units. The results show that the average sample length
and intercept lengths across all formations is 1.9 m with a minimum of 0.01 m and a maximum length
of 10.8 m.
In general, the spread of sample length is considered typical and each domain
was considered on its own merits in terms of composite length selected.
=========================================================================================
Diagrams Maps, plans and sections are given within the report to show the data distribution
across all deposits.
=========================================================================================
Balanced reporting Due to the amount of data, summary statistics of the modelled domains is given
and discussed in detail.
=========================================================================================
Other substantive Discussion is provided regarding the historic mapping of the area as well
exploration data as the metallurgical testwork completed in addition to the exploration drilling
and geochemical analysis completed.
=========================================================================================
Further work BGS believes that there is significant resource potential within the licence
areas and has declared Exploration Targets accordingly that warrant further
exploration. Additional alteration studies to assess the Cu/Au potential that
is external to the iron mineralisation is warranted as well as within the
iron formations to assess the project iron oxide distribution. Additional
Davis Tube testwork is also considered of use to assess the concentrate grade
potential from across all targets.
=========================================================================================
ASSESSMENT CRITERIA EXPLORATION MINERAL MINERAL
RESULTS RESOURCES RESERVES
Table 1 Part 4 - Estimation and Reporting of Mineral Resources and
Mineral Reserves
Database integrity BGS was supplied with a database from Beowulf, who,
with the assistance of CSA Global were responsible
for compiling all new and historical data into a
single database. BGS and Beowulf discussed the database
at various stages of the MRE with amendments being
required as the data was verified.
Drillhole data at Beowulf is stored in an Access
database.
Overall, the data was found to be in good condition
with only minor errors and corrections being required.
BGS has also been given access to a comprehensive
core photo library which was used throughout the
MRE to verify intersection intervals and material
types.
After a review of the available data and through
the studies completed by Beowulf and BGS in verifying
the data, BGS is confident that the quality of the
data provided by Beowulf is suitable for use in
the production of a Mineral Resource Estimate.
================================================================================
Geological interpretation BGS was supplied with a drillhole database for the
Project which was used to generate new wireframe
models for the dominant iron formations and host
geological units. These files were then used as
boundaries to create internal iron formations (based
on mineralogy and grade boundaries) and internal
waste units.
The modelling was undertaken in Leapfrog software
and used a combination of assay grade, magnetic
susceptibility, and logged lithology. In general,
an approximate Fe cut-off of 15% was used to guide
the contact of the iron formation with adjacent
units.
Additional domains were created within each of the
deposits based on statistical and geological observations,
namely the relationship between Fe and SiO2 along
with the magnetic susceptibility and logging to
differentiate between magnetite dominant and haematite
dominant domains. Transitional mineralogy has also
been identified from the FeO to Fe / Pulp Magnetic
Susceptibility relationship.
All domains created were statistically validated
during the modelling process to ensure valid domains
were created.
At Kallak North, the domains have been created:
* Magnetic - Low Grade, internal to synform
(IFMN_KN_MAGH_LG)
* Magnetic - Medium Grade, internal to synform
(IFMN_KN_MAGH_MG)
* Magnetic - High Grade, internal to synform
(IFMN_KN_MAGH_HG)
* Magnetic - External to synform (IFMN_KN2_HG and
IFMN_KN3_HG)
* Haematite, non-magnetic - Low grade
* Haematite, non-magnetic - Medium Grade 31% to 43% Fe
(IFMN_KN_HEM_GT_31)
* Haematite, non-magnetic - High Grade >43% Fe
(IFMN_KN_HEM_GT_43)
* Internal waste (IFMN_KN_INT1)
At Kallak North, a contact analysis study was completed
that shows a transitional grade contact between
the mineralised units. As such, a soft boundary
has been used in the grade estimation at Kallak
North.
At Kallak South North, the domains have been created:
* Magnetic - IFMN_KSN1 to IFMN_KSN6 (not including
KSN4)
* Magnetic - IFMN_KSN1_HG and IFMN_KSN2_HG
* Haematite - IFMN_KSN_HEM1 and KSN4
* Internal waste within IFMN_KSN1 (IFMN_KSN1_INT1 to
INT3)
* Internal waste within IFMN_KSN2 (IFMN_KSN2_INT1 to
INT3)
At Kallak South South, the domains have been created:
* IFMN_KSS1 to IFMN_KSS8
* IFMN_KSS3_LG
* IFMN_KSS4_HG
* IFMN_KSS5_HG
* Internal waste within IFMN_KSS2 (IFMN_KSS2_INT1)
================================================================================
Estimation and The MRE was completed in Leapfrog Software with
modelling techniques additional statistical studies completed in Supervisor.
The estimation process assumes an equivalent weighting
per composite. It is therefore necessary to discard
or ignore remnant composites that are generated
in the downhole compositing process to avoid a bias
in the estimation. However, based on the results
of a composite length analysis on each domain during
the parameter selection stage, it was decided to
use all samples, meaning no shorter lengths were
discarded. Edge samples below a set value of 0.5
m were included in the previous sample down the
hole.
Due to the low variance of the Fe data, being the
primary driver for the modelling process, it is
also the opinion of BGS that all deposits are insensitive
to variations in the composite length and the treatment
of smaller sample lengths.
Various composite lengths were selected with the
composite length chosen using the Fe assay with
the same length applied to all analytes. At Kallak
North, a soft boundary was selected due to the gradational
contact between the modelled zones.
The composite files were used in a geostatistical
study that enabled Ordinary Kriging ("OK") to be
used as the main interpolation method. This was
supplemented with an Inverse Distance Weighting
algorithm to estimate grade for some of the domains
with less sample support.
The results of the variography were utilised to
determine the most appropriate search parameters
used in the grade estimate.
The interpolation used an elliptical search following
the predominant dip and dip direction of the geological
zones with a variable orientation used within zones
of variable dip and dip direction.
For each domain where variography was possible,
variography was completed on all assay fields being
estimated into the block model, these being Fe,
FeO, SiO2, Al2O3, P, Mn, S, CaO, MgO, TiO2, K2O,
LOI and Pulp Magnetic Susceptibility.
BGS created downhole variograms to fix the nugget
followed by directional variograms.
In most cases, the variograms produced showed reasonable
structure, allowing reliable variogram models to
be produced. The nugget and ranges are easily generated,
providing an appropriate level of confidence in
terms of both the short scale and longer-range grade
continuity.
Density was applied to the mineralised zones using
a regression-based formula.
The interpolated block model was validated through
visual checks and a comparison of the mean input
composite and output model grades. BGS is confident
that the interpolated block grades are a reasonable
reflection of the available sample data.
================================================================================
Metal equivalents No metal equivalents are used.
or other combined
representation
of multiple components
================================================================================
Cut-off grades BGS used an approximate 15% Fe cut-off to generate
or parameters the mineralised units at Beowulf . No cut-off grade
has been applied to the final Mineral Resource Statement
due to the lack of grade sensitivity.
================================================================================
Tonnage Factor/In-situ As a result of the density testwork, BGS utilised
Bulk Density a regression curve for the assignment of density
to the iron formation units. The regression formula
used is:
Density = 0.0002x2 + 0.02x +2.6272 (where x is Fe%)
The density and tonnage estimate is considered robust
although further density testwork should be implemented
with further exploration.
================================================================================
Mining factors To determine the final Mineral Resource Statement,
or assumptions the model has been subjected to an optimisation
exercises to determine the proportion of the material
defined that has a reasonable prospect of economic
extraction via an open pit mining method. The following
assumptions have been made during the optimisation
process:
Base case metal price of USD130 / tonne for a 65%
Fe concentrate.
Fe recovery of 71% at Kallak North, 86% at Kallak
South North and 94% at Kallak South South.
Fe concentrate grades of 68% at Kallak North, 70%
at Kallak South North and 69% at Kallak South South.
Processing costs of USD6.8 / t wet
Selling cost of USD21.0 / t wet concentrate.
Mining cost of Ore of USD3.3 / t, mining cost of
waste of USD3.0 / t and an incremental mining cost
per 10 m bench of USD0.05 / t.
Wall angles of 30deg within the overburden and 47.5deg
in the fresh rock.
================================================================================
Metallurgical factors In late 2013, approximately 500t of material, from
or assumptions the test mining sampling programme completed on
a defined area of the Kallak North deposit in summer
2013, was transported to a test facility in Outokumpu
City, owned by GTK. The main portion of the material
was a general composite bulk sample, representing
all the test mined sections at Kallak North in proportion
to their respective occurrence.
Approximately 60t of the general composite bulk
sample were tested during a two-week pilot campaign,
primarily focusing on establishing recovery and
product quality parameters for the magnetite content.
Average iron content for the submitted sample was
29.5%. The proportion of magnetite to haematite
in the sample was approximately 3.4:1.
The magnetite beneficiation circuit was conventional
and straightforward, consisting of rod milling with
rougher-scavenger cobbing low-intensity magnetic
separation ("LIMS") preconcentration, followed by
ball mill re-grinding together with six cleaner
LIMS stages to achieve the final magnetite product.
The grade and recovery levels were excellent. The
amount of dry magnetite concentrate produced for
downstream testwork was approximately 2.7t, grading
at 69.4%Fe at a magnetite recovery of approximately
95%. Average silica content in the final product
was 3.9% and the levels of sulphur and phosphorous
were insignificant, being below 0.01%. The end product
fineness was 80% passing 25 microns.
The secondary objective, to produce a concentrate
of the haematite content, was successful in respect
of the quality aspect. A sample of 0.36t of dry
haematite iron concentrate was produced, at an average
grade of 66.6%Fe, containing 3.3% silica, 0.08%
phosphorous and less than 0.02% sulphur. The fineness
was 80% passing 175 microns. Several different flow
sheet options were tested in order to maximise the
haematite recovery, without fully reaching optimised
levels. The best beneficiation result was achieved
using a combination of spiral separators, supported
by High- Gradient Intensity Magnetic Separator ("HGIMS"),
recovery remained at below 30%. The short testwork
programme did not enable optimisation of the haematite
beneficiation section. Process mineralogy studies
proved that the haematite losses were mostly occurring
in the very fine particle sizes.
In 2015, a testwork programme was carried out with
the assumption that a high-grade magnetite concentrate
could be produced through the application of reverse
flotation, and that the results would prove the
suitability of the Kallak North magnetite concentrate
for use in Direct Reduction Iron facilities and
as chemical grade raw material.
Excellent concentrate grades were obtained with
over 71% Fe from the magnetite material in addition
to a high-grade hematite concentrate, over 68% Fe.
In 2021, 106 samples were selected for Davis Tube
Testwork. The samples were selected across the range
of FeO and Pulp Magnetic Susceptibility vales and
was undertaken to assess the potential concentrate
grade from samples of differing FeO and magnetic
susceptibility ratios.
All samples were pulverised to 45 microns for the
testwork.
The results showed, the Fe concentrate grade averages
69%, being 68% at Kallak North and increasing to
70% and 69% at Kallak South North and Kallak South
South. The mass recovery increases to the south
from 38% at Kallak North to 45% and 48% at Kallak
South North and Kallak South South. Fe recovery
also increases to the south from 71% at Kallak North
and 86% and 94% at Kallak South North and Kallak
South South. This indicates that the iron bearing
domains are less transitional and dominated by a
purer magnetite phase of mineralisation to the south
of the project area. In addition, there is no haematite
mineralisation modelled at Kallak South South potentially
suggesting a lower strain environment that has resulted
in limited alteration of the magnetite to haematite.
It should be noted that less samples have been analysed
at Kallak South North and Kallak South South compared
to Kallak North and the results may be skewed by
the quantum of data available.
================================================================================
Mineral Resource No Reserves are currently being
estimate for conversion declared
to Mineral Reserves
============ ================================ ================================
Cost and revenue No Reserves are currently being
factors. declared
============ ================================ ================================
Market assessment. No Reserves are currently being
declared
============ ================================ ================================
Others All resources reported are
within the licence boundaries.
============ ================================ ================================
Classification To classify the Project, the following key indicators
were used:
* Geological complexity
* Quality and quantity of data used in the estimation
* QAQC data
* Density Data
* Results of the geostatistical analysis, namely the
Variography and QKNA results, and
* Quality of the estimated block model
Due to the amount of drilling across the Project,
the risks associated with the geological interpretation
have been mitigated to allow continuous iron formation
units to be modelled. The quantity of drilling data
does decrease to the south although continuous iron
formations are still possible to model in areas
of sparser data.
Kallak North shows greater degrees of geological
complexity at present, possibly due to the greater
level of exploration focus and data available.
The complexity of the Project is not in reality
related to the continuity of the iron formation
units, rather the complexity in the material types
within each formation. Complex interactions of magnetic
and nonmagnetic mineral phases exist with more haematitic
material being associated with fold hinges and other
structural features. At Kallak North, grade decreases
to towards the centre of the interpreted synform
and increases to the south where the haematite material
is located along the fold hinge. Poddy internal
zones of low grade / waste material also exist within
Kallak North that are hard to model due to the poddy
nature, being aplite and pegmatite intrusive material.
At Kallak South North, where it is assumed that
a continuation of the synform exists, structural
logging and a lack of data on a fold hinge does
not confirm this interpretation. Minor units / pods
of haematite material also exist.
Kallak South South contains the least amount of
data and a simple set of iron formation lenses has
been created.
The mineralogy within the magnetic domains is also
variable with tests suggesting that transitional
phases of magnetite and maghemite exist. This is
demonstrated through the relationship between Fe
and FeO / Magnetic Susceptibility and further highlighted
in the streak tests and Davis Tube Testwork carried
out. The Davis Tube Testwork does however show that
a high-grade concentrate can be produced from all
magnetic phases of material.
There is also a general lack of consensus regarding
the geological model and deposit type for the Project
with two model types being proposed. More recently,
SGU suggest that the Project could be a stratiform-stratabound
type that formed in a volcanogenic setting whereas
previous interpretations suggest a sedimentary/volcanic
ore or a chert-bearing banded iron formation.
Overall, BGS does however consider the geological
risk to be low with the distribution of the iron
bearing lithologies being well constrained by drilling
and the testwork carried out showing that a high-grade
concentrate is attainable from the Project.
The QAQC testwork implemented as part of the exploration
shows that no significant bias exists and that the
data provided is suitable for use in the MRE.
The data used in the geostatistical analysis resulted
in suitably reliable downhole variograms for all
zones where variography was carried out with robust
directional variograms being created.
BGS employed numerous validation techniques and
is confident that the estimated block grades are
a reasonable reflection of the input sample data.
The Project has been classified as containing Measured,
Indicated and Inferred Mineral Resources. Measured
Mineral Resources have only been applied at Kallak
North. Kallak South South has been limited to Inferred
Mineral Resources only due to the limited sample
data and simplistic geological interpretation.
The following guidelines were used to classify the
estimate.
Measured Mineral Resource have been assigned based
on the following criteria:
* The upper portions of Kallak North with the greatest
concentration of drilling.
* Where the Fe search volume = 1.
* With a slope of regression greater than 0.8.
* With an average number of samples greater then /
equal to 8.
Indicated Mineral Resource at Kallak North and Kallak
South North have been assigned based on the following
criteria:
* Where the search volume = 1
Inferred Mineral Resource have been assigned to
zones with a low sample count and in zones of geological
uncertainty.
================================================================================
Audits or reviews No Independent audits or reviews of the Mineral
Resource estimate has taken place although BGS comments
that the results are in-line with historical estimates
completed in 2013 and 2014 by Geovista.
================================================================================
Discussion of relative The Mineral Resource has been classified following
accuracy/confidence the PERC 2017 standard and based on the definitions
of Measured, Indicated and Inferred Mineral Resources.
================================================================================
Schematic description Multiple schematics showing the classified resource
of the principles models are included in the report.
for reporting of
Mineral Resource
and Mineral Reserve
================================================================================
Glossary
Resource terminology
Mineral Resource - A Mineral Resource is a concentration or
occurrence of solid material of economic interest in or on the
Earth's crust in such form, grade or quality and quantity that
there are reasonable prospects for eventual economic extraction.
The location, quantity, grade or quality, continuity and other
geological characteristics of a Mineral Resource are known,
estimated or interpreted from specific geological evidence and
knowledge, including sampling. Mineral Resources are subdivided, in
order of increasing geological confidence, into the following
categories:
Inferred Mineral Resource - An Inferred Mineral Resource is that
part of a Mineral Resource for which quantity and grade or quality
are estimated on the basis of limited geological evidence and
sampling. Geological evidence is sufficient to imply but not verify
geological and grade or quality continuity. An Inferred Resource
has a lower level of confidence than that applying to an Indicated
Mineral Resource and must not be converted to a Mineral Reserve. It
is reasonably expected that most of the Inferred Mineral Resources
could be upgraded to Indicated Mineral Resources with continued
exploration. The 'Inferred' category is intended to cover
situations where a mineral concentration or occurrence has been
identified and limited measurements and sampling have been
completed, but where the data are insufficient to allow the
geological and/or grade or quality continuity to be confidently
interpreted. Due to the uncertainty which may be attached to some
Inferred Mineral Resources, it cannot be assumed, but normally
would be expected, that a major part of an Inferred Mineral
Resource will be upgraded to an Indicated or Measured Mineral
Resource as a result of continued exploration. Confidence in the
estimate is usually not sufficient to allow the appropriate
application of technical and economic parameters or to enable a
reliable evaluation of economic viability. For this reason, there
is no direct link from an Inferred Resource to any category of
Mineral Reserves.
Indicated Mineral Resource - An Indicated Mineral Resource is
that part of a Mineral Resource for which quantity, grade or
quality, densities, shape and physical characteristics are
estimated with sufficient confidence to allow the application of
Modifying Factors in sufficient detail to support mine planning and
evaluation of the economic viability of the deposit. Geological
evidence is derived from adequately detailed and reliable
exploration, sampling and testing and is sufficient to assume
geological and grade or quality continuity between points of
observation. An Indicated Mineral Resource has a lower level of
confidence than that applying to a Measured Mineral Resource and
may only be converted to a Probable Mineral Reserve. An Indicated
Mineral Resource requires that the nature, quality, amount and
distribution of data are such as to allow the Competent Person to
confidently interpret the geological framework and to assume
geological continuity of mineralisation, with sampling at a pattern
and spacing appropriate to the geological characteristics and
complexity of mineralisation. Confidence in the estimate is
sufficient to allow the application of technical and economic
parameters, and to enable an evaluation of economic viability.
'Grade or quality' is to be interpreted broadly, to include all
relevant chemical and mineralogical characteristics.
Measured Mineral Resource - A Measured Mineral Resource is that
part of a Mineral Resource for which quantity, grade or quality,
densities, shape, and physical characteristics are estimated with
confidence sufficient to allow the application of Modifying Factors
to support detailed mine planning and final evaluation of the
economic viability of the deposit. Geological evidence is derived
from detailed and reliable exploration, sampling and testing and is
sufficient to confirm geological and grade or quality continuity
between points of observation. A Measured Mineral Resource has a
higher level of confidence than that applying to either an
Indicated Mineral Resource or an Inferred Mineral Resource. It may
be converted to a Proved Mineral Reserve or to a Probable Mineral
Reserve. The occurrence of mineral(s) of economic interest may be
classified as a Measured Mineral Resource when the nature, quality,
amount and distribution of data are such as to leave no reasonable
doubt, in the opinion of the Competent Person determining the
Mineral Resource, that the tonnage, mineralogy, and grade or
quality can be estimated to within close limits, and that any
variation from the estimate would be unlikely to significantly
affect potential economic viability. Confidence in the estimate is
sufficient to allow the appropriate application of technical and
economic parameters and to enable an evaluation of economic
viability with a high level of confidence.
Other terms
Alumina - An oxide of aluminium, Al(2) O(3) ; the mineral
corundum; an important constituent of clay minerals. In iron ore
this is normally considered a deleterious element.
Aplite - A light-coloured igneous rock characterized by a
fine-grained saccharoidal (i.e., aplitic) texture.
Azimuth - Direction of a horizontal line as measured on an
imaginary horizontal circle, the horizontal direction reckoned
clockwise from the meridian plane of the observer, expressed as the
angular distance between the vertical plane passing through the
point of observation and the poles of the Earth and the vertical
plane passing through the observer and the object under
observation.
Banded iron formation - Iron formation that shows marked
banding, generally of iron-rich minerals and chert or fine-grained
quartz.
Bi-modal population - Having or occurring with two modes.
Statistics: a branch of applied mathematics concerned with the
collection and interpretation of quantitative data and the use of
probability theory to estimate population parameters.
Block modelling The process of generating a three-dimensional
model of a mineral deposit where individual parent blocks are
equally sized and ascribed certain physical properties and
qualities (tonnage, density, volume, grade etc.).
Box and whisker - A graphic way to display the median,
quartiles, and extremes of a data set on a number line to show the
distribution of the data.
Certified reference materials - Controls or standards used to
check the quality and metrological traceability of products, to
validate analytical measurement methods, or for the calibration of
instruments. A certified reference material is a particular form of
measurement standard.
Collar - The mouth or opening of a borehole or the process of
starting to drill a borehole.
Competent Person - A minerals industry professional who is a
Member or Fellow of The Australasian Institute of Mining and
Metallurgy, or of the Australian Institute of Geoscientists, or of
a 'Recognised Professional Organisation', as included in a list
available on the JORC and ASX websites. These organisations have
enforceable disciplinary processes including the powers to suspend
or expel a member.
Composite sample - The procedure by which the values of adjacent
samples from boreholes are combined so that the value of the longer
down-hole intervals can be assessed. The grade of each new interval
is calculated on the basis of the weighted average of the original
sample grades. These are usually weighted by length and possibly by
specific gravity and core recovery.
Core - The long cylindrical piece of rock, about an inch in
diameter, brought to surface by diamond drilling.
Core recovery - The amount of the drilled rock withdrawn as core
in core drilling, generally expressed as a percentage of the total
length of the interval cored.
Cut-off-Grade - The lowest grade of mineralized material that
qualifies as ore in a given deposit; rock of the lowest assay
included in an ore estimate.
Davis Tube Testwork - Is a laboratory test designed to separate
small samples of strongly magnetic ores into strongly magnetic and
weakly magnetic fractions. It has become a standard laboratory
equipment used for the assessment of the separability of magnetic
ores by low-intensity magnetic separators.
Deleterious elements - Minerals or elements present in ore
and/or concentrates which are considered to reduce the VIU of iron
ore, typically, silica, phosphorous, alumina.
Dip - The angle of a slope, vein, rock stratum, or borehole is
measured from the horizontal plane downward.
Domaining - The process whereby geological zones/units are
domained into discrete areas for further analysis.
Drillhole - Technically, a circular hole drilled by forces
applied percussively; loosely and commonly, the name applies to a
circular hole drilled in any manner.
Drill rig - A drill machine, complete with all tools and
accessory equipment needed to drill boreholes.
Exploration - The search for coal, mineral, or ore by (1)
geological surveys; (2) geophysical prospecting (may be ground,
aerial, or both); (3) boreholes and trial pits; or (4) surface or
underground headings, drifts, or tunnels. Exploration aims at
locating the presence of economic deposits and establishing their
nature, shape, and grade, and the investigation may be divided into
(1) preliminary and (2) final.
Exploration Target - A statement or estimate of the exploration
potential of a mineral deposit in a defined geological setting
where the statement or estimate, quoted as a range of tonnes and a
range of grade (or quality), relates to mineralisation for which
there has been insufficient exploration to estimate a Mineral
Resource.
Fold - A curve or bend of a planar structure such as rock
strata, bedding planes, foliation, or cleavage. A fold is usually a
product of deformation, although its definition is descriptive and
not genetic and may include primary structures
Foliation - Repetitive layering in metamorphic rocks.
Gangue - The valueless minerals in an ore; that part of an ore
that is not economically desirable but cannot be avoided in mining.
It is separated from the ore minerals during concentration.
Geochemical analysis - The process through which scientists
discover and unravel the chemical compounds that make up the earth,
its atmosphere, and its seas.
Geochemistry - The study of the relative and absolute abundances
of the elements and their nuclides (isotopes) in the Earth; the
distribution and migration of the individual elements or suites of
elements in the various parts of the Earth (the atmosphere,
hydrosphere, lithosphere, etc.), and in minerals and rocks, and
also the study of principles governing this distribution and
migration. Geochemistry may be defined very broadly to include all
parts of geology that involve chemical changes, or it may be
focused more narrowly on the distribution of the elements.
Geophysical anomalies - Area where geophysical properties (e.g.
radiometric, magnetic, electromagnetic, gravity) differ from
surrounding areas and which may be the result of
mineralisation.
Geophysical survey - The exploration of an area in which
geophysical properties and relationships unique to the area are
mapped by one or more geophysical methods.
Geostatistics - A methodology for the analysis of spatially
correlated data. The characteristic feature is the use of
variograms or related techniques to quantify and model the spatial
correlation structure. Also includes the various techniques such as
kriging, which utilize spatial correlation models.
Goethite - A dark or yellowish-brown mineral consisting of
hydrated iron oxide, occurring typically as masses of fibrous
crystals.
Grade - The relative quantity or the percentage of ore-mineral
or metal content in an orebody.
Haematite - A reddish-black mineral consisting of ferric oxide
and an important ore of iron ore.
Hinge - The locus of maximum curvature or bending in a folded
surface, usually a line.
Iron - A strong, hard magnetic silvery-grey metal, the chemical
element of atomic number 26, much used as a material for
construction and manufacturing, especially in the form of
steel.
Iron ore pellets - The product of an agglomeration process that
mixes very fine pellet feed with a binder (e.g. a slurry of
bentonite), with the mixture rolled into "green" balls. The product
is then fired on a grate or in a kiln to produce the final
indurated product, consisting of "balls" with about 8mm to 20mm.
Similar to lump, pellets can be charged directly into a blast
furnace or into a direct reduction plant. Pellets tend to have the
highest value-in-use characteristics, and hence have generally
commanded the highest pricing premium.
Kriging - In the estimation of Mineral Resources by
geostatistical methods, the use of a weighted, moving-average
approach both to account for the estimated values of spatially
distributed variables, and also to assess the probable error
associated with the estimates.
Loss on Ignition - A test used in inorganic analytical
chemistry, particularly in the analysis of minerals. It consists of
strongly heating a sample of the material at a specified
temperature, allowing volatile substances to escape, until its mass
ceases to change.
Magnetite - An isometric mineral, 8[FeOFe(2) O(3) ]; spinel
group; forms series with jacobsite and with magnesioferrite;
crystallizes in octahedra; metallic; black; strongly ferrimagnetic;
an accessory mineral in many igneous rocks; a common detrital
mineral; a major mineral in banded iron formations and magmatic
iron deposits; an ore of iron.
Martite - Haematite resulting from oxidation and
re-crystallisation of magnetite.
Mass Yield - The amount of material (concentrate) derived from
the processing of mined ore expressed as a percentage of ore
delivered to the processing plant and
Micron - A unit of length equal to one millionth of a metre,
used in many technological and scientific fields.
Nugget Theoretically, at zero separation distance (lag = 0), the
semivariogram value is 0. However, at an infinitesimally small
separation distance, the semivariogram often exhibits a nugget
effect, which is some value greater than 0. For example, if the
semivariogram model intercepts the y-axis at 2, then the nugget is
2.
Open Pit - A mine that is entirely on surface. Also referred to
as open-cut or open-cast mine.
Optimisation analysis - Determining the optimum ultimate pit of
a mine is the base of mine planning. The optimum ultimate pit of a
mine is defined as the "pit shell contour", which is the result of
extracting the volume of material that provides the total maximum
profit while satisfying the operational requirements of safe wall
slopes.
Ordinary Kriging - Geostatistical estimation is a two-stage
process: (i) studying the gathered data to establish the
predictability of values from place to place in the study area;
this study results in a graph known as a semi-variogram which
models the difference between a value at one location and the value
at another location according to the distance and direction between
them; (ii) estimating values at those locations which have not been
sampled. This process is known as kriging. The basic technique
ordinary kriging uses a weighted average of neighbouring samples to
estimate the unknown value at a given location. Weights are
optimized using the semi-variogram model, the location of the
samples and all the relevant inter-relationships between known and
unknown values. The technique also provides a standard error which
may be used to quantify confidence levels.
Ore - A naturally occurring solid material from which a metal or
valuable mineral can be extracted profitably.
Overburden - Designates material of any nature, consolidated or
unconsolidated, that overlies a deposit of useful materials, ores,
or coal--esp. those deposits that are mined from the surface by
open cuts.
Overall slope angle - The angle between the lowest toe and the
highest crest inclusive of any haul roads.
Oxide - Term used to define geological unit which has been
subject to oxidation and weathering.
Pegmatites - An exceptionally coarse-grained igneous rock, with
interlocking crystals, usually found as irregular dikes, lenses, or
veins, esp. at the margins of batholiths.
Phosphorous - A non-metallic element of the nitrogen group.
Symbol, P. Never found free in nature but is widely distributed in
combination with minerals. In iron and steel making Phosphorous has
four major effects on iron: increased hardness and strength, lower
solidus temperature, increased fluidity, and cold shortness.
Pycnometry - A standard vessel often provided with a thermometer
for measuring and comparing the densities or specific gravities of
liquids or solids.
Quality Assurance and Quality Control - The combination of
quality assurance, the process or set of processes used to measure
and assure the quality of a product, and quality control, the
process of ensuring products and services meet consumer
expectations.
Quartz - A hard mineral consisting of silica, found widely in
igneous and metamorphic rocks and typically occurring as colourless
or white hexagonal prisms.
Recovery - A measure of the efficiency of the extraction of
saleable products from the initial ore expressed as a
percentage.
Satmagan measurements - An inexpensive test which accurately
measures the amount of magnetite in a sample. Systematic analysis
of an ore body can determine if there is a direct relationship
between the predicted mass of magnetic concentrate (Satmagan)
versus the actual mass of concentrate from a variety of DTR
tests.
Search ellipse - The volume which defines how far out to search
for data to support a particular kriged estimate.
Scatterplot - A type of plot or mathematical diagram using
Cartesian coordinates to display values for typically two variables
for a set of data.
Sheath fold - Strongly non-cylindrical structures, which are
often associated with shear zones.
Silica - The chemically resistant dioxide of silicon, SiO(2) .
An industrial term for certain
Skarn - Name for the metamorphic rocks surrounding an igneous
intrusive where it comes in contact with a limestone or dolostone
formation.
Slag - Material from the iron blast furnace, resulting from the
fusion of fluxstone with coke ash and the siliceous and aluminous
impurities remaining after separation of iron from the ore. Slag is
also produced in steelmaking. Formerly a solid waste, slag is now
utilized for various purposes, chiefly in construction.
Specific gravity - The weight of a substance compared with the
weight of an equal volume of pure water at 4 degrees C. Specific
gravity is numerically equal to density given in grams per cubic
centimetre or millilitre.
Standard deviation - The square root of the variance. A measure
of dispersion of a set of data from its mean.
Stripping ratio - The volume of overburden (or waste material)
required to be handled in order to extract some tonnage of ore. For
example, a 3:1 stripping ratio means that mining one tonne of ore
will require mining three tonnes of waste rock.
Sulphide - A mineral compound characterized by the linkage of
sulphur with a metal or semimetal; e.g., galena, PbS, or pyrite,
FeS(2) .
Sulphur - The chemical element of atomic number 16, a yellow
combustible non-metal. that occurs widely in nature, especially in
volcanic deposits, minerals, natural gas, and petroleum. It is used
to make gunpowder and fertilizer, to vulcanize rubber, and to
produce sulfuric acid.
Syncline - A trough or fold of stratified rock in which the
strata slope upwards from the axis.
Synform - A fold whose limbs close downward in strata for which
the stratigraphic sequence is unknown.
Titanium - A silvery-grey or iron-grey, metallic element.
Symbol, Ti. Found in nature only in combined form; occurs chiefly
in ilmenite (FeTiO(3) ), and in rutile and titanite. Used as an
alloying agent with aluminium, molybdenum, manganese, iron, and
other metals. Used in aircraft and missiles and has potential for
use in desalination plants.
Trench - In geological exploration, a narrow, shallow ditch cut
across a mineral deposit to obtain samples or to observe
character.
Validation - A process whereby the accuracy of estimates is
validated typically against known points in resource
estimation.
Variance - The mean square deviation of the variable around the
average value. It reflects the dispersion of the empirical values
around its mean.
Variogram - A plot of the variance (one-half the mean squared
difference) of paired sample measurements as a function of the
distance (and optionally of the direction) between samples.
Typically, all possible sample pairs are examined, and grouped into
classes (lags) of approx. equal distance and direction. Variograms
provide a means of quantifying the commonly observed relationship
that samples close together will tend to have more similar values
than samples far apart.
Variogram range - The range is the distance after which the
variogram levels off. The physical meaning of the range is that
pairs of points that are this distance or greater apart are not
spatially correlated. The sill is the total variance contribution,
or the maximum variability between pairs of points.
Vein - An epigenetic mineral filling of a fault or other
fracture in a host rock, in tabular or sheetlike form, often with
associated replacement of the host rock; a mineral deposit of this
form and origin.
Volcanic - Characteristic of, pertaining to, situated in or
upon, formed in, or derived from volcanoes.
Waste - The part of an ore deposit that is too low in grade to
be of economic value at the time of mining, but which may be stored
separately for possible treatment later or alternatively contains
no economic minerals and must be mined in order to expose the
mineralised material of economic interest.
Wireframe - A method of three-dimensional subsurface mapping
commonly employed for the preparation of digital elevation models
in surveying, hydrology, geology, and mining.
X-Ray Fluorescence - A non-destructive analytical technique used
to determine the elemental composition of materials. XRF analysers
determine the chemistry of a sample by measuring the fluorescent
(or secondary) X-ray emitted from a sample when it is excited by a
primary X-ray source.
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