20 June 2024
Kropz Plc
("Kropz" or the
"Company")
Update of Mineral Resource
Estimate for Elandsfontein
Kropz Plc (AIM: KRPZ), an emerging
African phosphate producer and developer, is pleased to announce an update to the JORC (2012) compliant
Mineral Resource Estimate ("MRE") at its South African phosphate
project, Elandsfontein Phosphate Project
("Elandsfontein").
The significant write-down in
declared Ore Reserves from 2018 to 2022 has been partially reversed
in the 2023 Ore Reserve estimate, largely due to the additional
infill drilling which was completed in 2023.
It is expected that the future
drilling campaigns will continue to improve the Mineral Resource
estimates from Inferred to Measured or Indicated categories and
will enable improved conversion of the Mineral Resources to
Reserves.
While both the declared Reserve
tonnes and grade have increased, the grade and tonnage estimate of
the Resource has decreased. This aligns to the improved confidence
in the grade estimation of the deposit and reflects the declining
grade of the deposit over its life.
Summary
·
The 2023 Reserve estimate was positively affected
by the completed infill and exploration drilling, which
significantly improved the total declared Measured and Indicated
Mineral Resources. The Ore Reserves are stated at 30 September
2023, and account for the pit depletions up until the end of
September 2023;
·
Total Measured and Indicated resource tonnage has
increased by approximately 72%, while the Total resource tonnage
has reduced by 30%;
·
Decrease in total phosphate resources at
Elandsfontein to 74.23 million tonnes ("Mt") from 106.58 million tonnes in 2022;
·
Total Reserves are estimated at 26.63 Mt at
a P2O5
grade of
9.38% of which 16.56 Mt
is Proven at 10.25% P2O5, This compares to
previous estimate at 17.42 Mt at 9.19%
P2O5.
Louis Loubser, Chief Executive Officer
commented:
"Our planned infill drilling campaign has proved worthwhile.
Although the changes in our Resource estimate have been
substantive, our ability to accurately predict the spatial position
and grade of the ore body has improved greatly. This has led to
further accuracy and prediction improvements which are reflected in
an encouraging increase in our mineable ore
Reserves."
|
ELANDSFONTEIN RESOURCE
STATEMENT AS OF 30 SEPTEMBER 2023
|
|
CLASS
|
TONNES
(Mt)
|
P2O5
(%)
|
SiO2
(%)
|
Al2O3
(%)
|
MgO
(%)
|
Fe2O3
(%)
|
CaO
(%)
|
CONTAINED
P2O5 (Mt)
|
|
Measured
|
19.96
|
10.25
|
63.86
|
1.22
|
0.15
|
0.79
|
14.68
|
2.05
|
|
Indicated
|
12.78
|
7.68
|
64.30
|
1.30
|
0.15
|
0.88
|
11.30
|
0.98
|
|
Total Measured & Indicated
|
32.74
|
9.24
|
64.03
|
1.25
|
0.15
|
0.83
|
13.36
|
3.03
|
|
Inferred
|
41.49
|
6.30
|
66.26
|
1.39
|
0.15
|
0.86
|
9.52
|
2.61
|
|
Total Resources
|
74.23
|
7.60
|
65.28
|
1.33
|
0.15
|
0.85
|
11.21
|
5.64
|
|
NETT ATTRIBUTABLE (74% TO THE
COMPANY)
|
|
Measured
|
14.77
|
10.25
|
63.86
|
1.22
|
0.15
|
0.79
|
14.68
|
1.51
|
|
Indicated
|
9.45
|
7.68
|
64.30
|
1.30
|
0.15
|
0.88
|
11.30
|
0.73
|
|
Total Measured & Indicated
|
24.23
|
9.24
|
64.03
|
1.25
|
0.15
|
0.83
|
13.36
|
2.24
|
|
Inferred
|
30.70
|
6.30
|
66.26
|
1.39
|
0.15
|
0.86
|
9.52
|
1.93
|
|
Total Resources
|
54.93
|
7.60
|
65.28
|
1.33
|
0.15
|
0.85
|
11.21
|
4.17
|
|
Note: All numbers are reported to two significant figures.
Rounding may cause minor discrepancies to the numbers reported in
this table.
|
The 2023 Mineral Resource Estimate
(MRE) for Elandsfontein reflects significant changes compared to
2022 and was
notably affected by the completed infill and exploration drilling.
The total Measured and Indicated resources have increased by
approximately 72%, rising from 19.02 Mt in 2022 to 32.74 Mt in
2023, despite a slight decrease in the P2O5
grade from 9.54% to 9.24%. Conversely, the total Inferred resources
have decreased substantially from 87.56 Mt in 2022 to 41.49 Mt in
2023, accompanied by a decline in the P2O5
grade from 7.68% to 6.30%. This reduction in Inferred resources and
the simultaneous increase in Measured and Indicated resources
indicate improved confidence in the resource estimates due to the
successful infill drilling program. These changes highlight the
enhanced accuracy in predicting the spatial distribution and grade
of the ore body, leading to a more reliable reserve estimate and
better strategic planning for future mining operations.
|
DIFFERENCE 2023 VS 2022
RESOURCE DECLARATION
|
|
CLASS
|
TONNES
(Mt)
|
P2O5
(%)
|
SiO2
(%)
|
Al2O3
(%)
|
MgO
(%)
|
Fe2O3
(%)
|
CaO
(%)
|
CONTAINED
P2O5 (Mt)
|
|
Total Measured and Indicated 2023
|
32.74
|
9.24
|
64.03
|
1.25
|
0.15
|
0.83
|
13.36
|
3.03
|
|
Total Measured and Indicated 2022
|
19.02
|
9.54
|
70.45
|
1.15
|
0.14
|
0.88
|
13.64
|
1.81
|
|
Difference Measured and
Indicated
|
13.72
|
-0.30
|
-6.42
|
0.10
|
0.01
|
-0.05
|
-0.28
|
1.22
|
|
Inferred 2023
|
41.49
|
6.30
|
66.26
|
1.39
|
0.15
|
0.86
|
9.52
|
2.61
|
|
Inferred 2022
|
87.56
|
7.68
|
73.92
|
1.20
|
0.16
|
1.03
|
11.15
|
6.72
|
|
Difference
Inferred
|
-46.07
|
-1.38
|
-7.66
|
0.19
|
-0.01
|
-0.17
|
-1.63
|
-4.11
|
|
Note: All numbers are reported to two
significant figures. Rounding may cause minor discrepancies to the
numbers reported in this table.
|
The 2023 reserve statement for
Elandsfontein reflects significant improvements compared to the
2022 estimates, driven by changes in the resource base and a better
understanding of the modifying factors to be applied. The total
proven reserves have increased substantially from 7.31 Mt at a
P2O5 grade of 10.71% in 2022 to 16.56 Mt at a
grade of 10.25% in 2023. Meanwhile, the total probable reserves
have remained relatively stable, showing a slight decrease from
10.11 Mt at a P2O5 grade of 8.09% in 2022 to
10.07 Mt at a grade of 8.01% in 2023. As a result, the combined
total of proven and probable reserves has risen from 17.42 Mt at a
P2O5 grade of 9.19% in 2022 to 26.63 Mt at a
grade of 9.38% in 2023.
These changes are largely
attributable to the successful completion of infill and exploration
drilling, which significantly improved the total declared Measured
and Indicated Mineral Resources. Additionally, the enhanced
understanding of modifying factors, such as mining, metallurgical,
economic, and environmental considerations, has contributed to a
more accurate and reliable reserve estimate. This improved accuracy
in predicting the spatial distribution and grade of the ore body
has bolstered confidence in the reserve estimations and strategic
planning for future mining operations.
|
ELANDSFONTEIN RESERVE
STATEMENT AS AT 30 SEPTEMBER 2023
|
|
CLASSIFICATION
|
TONNES
(Mt)
|
P2O5
(%)
|
CONTAINED
P2O5 (Mt)
|
|
Proven
|
16.56
|
10.25
|
1.70
|
|
Probable
|
10.07
|
8.01
|
0.81
|
|
Total Reserve*
|
26.63
|
9.38
|
2.50
|
|
NETT ATTRIBUTABLE (74% TO THE
COMPANY)
|
|
Proven
|
12.26
|
10.25
|
1.26
|
|
Probable
|
7.45
|
8.01
|
0.60
|
|
Total Reserve*
|
19.70
|
9.38
|
1.85
|
*Modifying Factors:
·
Mining loss of
2% applied
·
2.25% Dilution
applied
|
DIFFERENCE 2022 VS 2023
RESERVE DECLARATION
|
|
RESOURCE
CLASSIFICATION
|
TONNES
(Mt)
|
P2O5
(%)
|
CONTAINED
P2O5 (Mt)
|
|
Total Proven 2023
|
16.56
|
10.25
|
1.70
|
|
Total Proven 2022
|
7.31
|
10.71
|
0.78
|
|
Total Probable 2023
|
10.07
|
8.01
|
0.81
|
|
Total Probable 2022
|
10.11
|
8.09
|
0.82
|
|
Total Proven and Probable 2023
|
26.63
|
9.38
|
2.50
|
|
Total Proven and Probable 2022
|
17.42
|
9.19
|
1.60
|
|
Difference Proven and
Probable
|
9.21
|
0.19
|
0.9
|
|
Note: All numbers are reported to two
significant figures. Rounding may cause minor discrepancies in this
table
|
|
|
|
|
|
|
Competent Persons Statement
The corresponding JORC Table 1
relating to the 2023 MRE and Reserve is available on the Company's
website at: https://www.kropz.com/investors/press-releases/2024
Information in this
announcement pertaining to Reporting of Sampling Techniques
and Data, Exploration Results and Estimation and Reporting of
Mineral Resources has been reviewed and approved by Vanessa
Clark-Mostert, a Principal Consultant for Practara (Pty) Ltd, Unit
1, Floor 1, Building 12 Thornhill Office Park, Bekker Rd, Midrand,
1686, RSA, South Africa. The Company Registration number is
2015/217925/07.
Ms Clark-Mostert is registered with
the South African Council for Natural Scientific Professionals, in
the field of Geological Science, Pr. Sci. Nat. member No.
400161/07. She holds an MSc Earth Science Practice and Management,
University of Pretoria, 2012, BSc (Honours) Environmental and
Engineering Geology, University of Pretoria, 2002 and a BSc
(Geology) from the University of Pretoria. Ms Clark-Mostert has
more than 19 years' experience in the mining industry of which most
of her working career included work as a consultant. Roles
fulfilled which is pertinent to the style of mineralisation and
mining method include Geological Consultant and Technical advisor.
Parent Companies include Anglo American, Tronox, Richards Bay
Minerals, TRG, TWP Investments, Phalaborwa Mining Company, General
Nice Mining, Norilsk & BCL, Namakwa Sands, Assmang and
Assore.
Ms Clark-Mostert is a 'Competent
Person' as defined in the SAMREC Code which allows her to act as a
Competent/Qualified Person.
Ms Clark-Mostert consents to
the inclusion in this announcement of the matters based on this
information in the form and context in which it appears. Ms
Clark-Mostert confirms that the Company is not aware of any
new information or data that materially affects the information
included in the relevant market announcements, and that the form
and context in which the information has been presented has not
been materially modified.
Glossary
|
Term
|
Intended generalised
meaning
|
|
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 Australian Securities Exchange
websites.
|
|
Diamond drilling
|
The act or process of drilling
boreholes using bits inset with diamonds as the rock-cutting
tool.
|
|
Governing Principles
|
The principles governing the
operation and application of the JORC Code are Transparency,
Materiality and Competence.
Transparency requires that the
reader of a Public Report is provided with sufficient information,
the presentation of which is clear and unambiguous, to understand
the report and not be misled by this information or by omission of
material information that is known to the Competent
Person.
Materiality requires that a Public
Report contains all the relevant information that investors and
their professional advisers would reasonably require, and
reasonably expect to find in the report, for the purpose of making
a reasoned and balanced judgement regarding the Exploration
Results, Mineral Resources or Ore Reserves being reported. Where
relevant information is not supplied an explanation must be
provided to justify its exclusion.
|
|
Grade
|
The measurement of the quantity,
percentage or quality of a metal or mineral contained within a
mineral deposit.
|
|
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.
|
|
Inferred Mineral Resource
|
That part of a Mineral Resource for
which quantity and grade or quality are estimated from limited
geological evidence and sampling.
|
|
Infill drilling
|
Drilling designed to fill or close
gaps between existing drill holes.
|
|
JORC
|
The Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves. The
JORC Code is produced by the Australasian Joint Ore Reserves
Committee ('the JORC Committee').
|
|
JORC Code
|
The Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves 2012
edition (JORC Code), is an internationally recognised professional
code of practice which sets minimum standards for the public
reporting of Exploration Results, Mineral Resources and Ore
Reserves.
|
|
Losses/Modifying Factors
|
"Modifying Factors" or losses
include mining, metallurgical, economic, marketing, legal,
environmental, social and governmental considerations.
|
|
Material
|
Circumstances are considered
material if omission or misstatement of the associated factor,
constituent or information could influence the economic decisions
of users. As a rule of thumb, this difference would normally be
equal to or exceed 10%.
|
|
Materiality
|
A Public Report contains all the
relevant information that investors and their professional advisors
would reasonably require, and expect to find, for the purpose of
making a reasoned and balanced judgement regarding the Exploration
Results, Mineral Resources and Mineral Reserves being
reported.
|
|
Measured Mineral Resource
|
That part of a Mineral Resource for
which quantity, grade or quality, densities, shape, and physical
characteristics are estimated with confidence sufficient to allow
the application of Modifying Factors to support detailed mine
planning and final evaluation of the economic viability of the
deposit.
|
|
Mineable
|
Those parts of the ore body, both
economic and uneconomic, that can be extracted during the normal
course of mining.
|
|
Mineral Resource
|
A concentration or occurrence of
material of economic interest in or on the Earth's crust in such
form, grade, quality and quantity that there are reasonable
prospects for eventual economic extraction.
|
|
Mineralisation
|
Any single mineral or combination of
minerals occurring in a mass, or deposit, of economic interest. The
term is intended to cover all forms in which mineralisation might
occur, whether by class of deposit, mode of occurrence, genesis or
composition.
|
|
Mineral Resource
|
A concentration or occurrence of
material of economic interest in or on the Earth's crust in such
form, grade, quality and quantity that there are reasonable
prospects for eventual economic extraction.
|
|
Mt
|
Million tonnes
|
|
Ore
|
Lithological units with grade
exceeding 4% P2O5. It can include C to G Unit
as described in the stratigraphic column of the area.
|
|
Ore Reserve
|
The economically mineable part of a
Measured and/or Indicated Mineral Resource. It includes diluting
materials and allowances for losses, which may occur when the
material is mined or extracted
|
|
P2O5
|
Phosphorus pentoxide
|
|
Percussion Drilling
|
The process of boring into rock by
means of an air- or hydraulic-powered drill bit.
|
|
Probable Ore Reserve
|
The economically mineable part of an
Indicated, and in some circumstances, a Measured Mineral Resource.
The confidence in the modifying factors applying to a Probable Ore
Reserve is lower than that applying to a Proven Ore Reserve. A
Probable Ore Reserve has a lower level of confidence than a Proven
Ore Reserve but is of sufficient quality to serve as the basis for
a decision on the development of the deposit.
|
|
Proven Ore Reserve
|
The economically mineable part of a
Measured Mineral Resource. A Proven Ore Reserve implies a high
degree of confidence in the Modifying Factors. A Proven Ore Reserve
represents the highest confidence category of an Ore Reserve
estimate. The style of mineralisation or other factors could mean
that Proven Ore Reserves are not achievable in some
deposits.
|
|
SACNASP
|
South African Council for Natural
Scientific Professionals
|
|
SAMREC
|
The South African Code for The
Reporting of Exploration Results, Mineral Resources and Mineral
Reserves (The SAMREC Code)
|
|
Sonic Boreholes
|
A borehole derived through sonic
drilling, a drilling technique which utilises high-frequency energy
generated inside a sonic head to advance a core barrel downwards
through a substrate.
|
|
Sonic Drilling
|
Sonic is an advanced form of
drilling which employs the use of high-frequency, resonant energy
generated inside the Sonic head to advance a core barrel or casing
into subsurface formations.
|
|
Tonnage
|
An expression of the amount of
material of interest.
|
The information contained within
this announcement is deemed to constitute inside information as
stipulated under the retained EU law version of the Market Abuse
Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018. The information
is disclosed in accordance with the Company's obligations under
Article 17 of the UK MAR. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For
further information visit www.kropz.com or
contact:
|
Kropz Plc
|
Via
Tavistock
|
|
Louis Loubser (CEO)
|
+44 (0) 207 920 3150
|
|
|
|
|
Grant Thornton UK LLP
|
Nominated Adviser
|
|
Samantha Harrison
Harrison Clarke
Ciara Donnelly
|
+44 (0) 20 7383 5100
|
|
|
|
|
Hannam & Partners
|
Broker
|
|
Andrew Chubb
Ernest Bell
|
+44 (0) 20 7907 8500
|
|
|
|
|
Tavistock
|
Financial PR & IR (UK)
|
|
Nick Elwes
Jos Simson
|
+44 (0) 207 920 3150
kropz@tavistock.co.uk
|
|
|
|
|
R&A Strategic Communications
|
PR
(South Africa)
|
|
Charmane Russell
Marion Brower
|
+27 (0) 11 880 3924
charmane@rasc.co.za
marion@rasc.co.za
|
About Kropz Plc
Kropz is an emerging African
phosphate producer with projects in South Africa and in the
Republic of Congo. The vision of the Group is to become a leading
independent phosphate rock producer and to develop into an
integrated, mine-to-market plant nutrient company focusing on
sub-Saharan Africa.
-ENDS-