TIDMSLP
RNS Number : 8405D
Sylvania Platinum Limited
24 October 2022
_____________________________________________________________________________________________________________________________
24 October 2022
Sylvania Platinum Limited
("Sylvania", the "Company" or the "Group")
Results of Initial Optimisation Studies for Northern Limb
Mineral Assets
Sylvania (AIM:SLP), the platinum group metals ("PGM") producer
and developer with assets in South Africa, is pleased to announce
the results of its successful optimisation studies carried out on
its exploration targets located on the Northern Limb of the
Bushveld Complex in South Africa.
The results include an updated Mineral Resource Estimate ("MRE")
and Scoping Study for the Volspruit Project, which focussed solely
on the Volspruit North Body and a MRE and Exploration Results for
the Far Northern Limb Projects, which consists of the Aurora
Project containing the La Pucella Target, and the Hacra
Project.
Highlights
Volspruit Project
-- Volspruit North Body JORC MRE (Measured and Indicated):
o 14.87 million tonnes ("Mt") at 2E + gold ("Au") (2E includes
platinum ("Pt") and palladium ("Pd")) grade of 2.27 grammes per
tonne ("g/t");
o 1.08 million 2E + Au ounces;
o 19.47 million pounds ("lb") of copper ("Cu") at a grade of
0.06%; and
o 55.79 million lb of nickel ("Ni") at a grade of 0.18%.
-- Volspruit North Body JORC Scoping Study completed (based on
long-term metal prices and exchange rate consensus forecast):
o Pre-tax NPV (using a discount factor of 12.5%) of $27.3
million (ZAR 464.0 million), excluding significant potential upside
from rhodium ("Rh") contribution and South Body PGM ounce inclusion
currently being assessed;
o Pre-tax IRR of 17.9%;
o Pre-Feasibility Study milestone expected to be completed in
FY2023, followed by the Feasibility Study starting in FY2024;
o First production milestone expected in approximately four
years from investment decision;
o Payback Period from first production of 4.25 years;
o Life of Mine of 8.7 years;
o EBITDA per annum of $30.6 million (ZAR 520.0 million); and
o Peak funding requirement of $147.4 million (ZAR 2.5
billion).
-- The Scoping Study was produced on conservative assumptions
and does not currently include a JORC compliant rhodium resource.
The potential rhodium contribution is currently being evaluated and
is expected to provide significant upside. Additionally, and
important to note, the Volspruit North Body covers 58% of the
Volspruit Project area and excludes the Volspruit South Body which
is still being reviewed. This could add additional material to be
treated through capitalised infrastructure in the future, and thus
provide further upside potential.
-- While the current Scoping Study economics do not meet the
Company's internal investment criteria, it does illustrate the
project's promising potential value, based on conservative
assumptions and ignoring upside potential, and so supports the
Company's competently evaluated decision to progress to a
Pre-Feasibility Study during the current financial year.
Far Northern Limb Projects
Aurora Project
-- La Pucella JORC MRE (Measured and Indicated):
o 16.21 Mt at 2E + Au grade of 2.63 g/t; and
o 1.37 million 2E + Au ounces.
-- The La Pucella Target area is a near-surface T-Zone discovery
and currently covers just 12% of the combined Aurora project
area.
o The discovery of the T-Zone near surface indicates that this
high grade zone previously found at depth, has the potential to be
mined utilising open pit mining methods.
-- A scoping level mining study is being carried out with results expected in early 2023.
-- Mineralisation is known to continue at depth and with future
additional drilling an additional underground MRE could be
reported.
-- Future studies are aimed at improving analytical confidence
to include Rh and base metals in the MRE that are currently at
inferred level.
Hacra Project
-- Encouraging 2021 Exploration Results with various
intersections indicating attractive grades between 2.3g/t and
7.4g/t 2E + Au and a true intersection thickness from 3.4m up to
11.9m.
-- Contiguous to the Waterberg PGM project.
-- Working towards a maiden MRE in early 2023.
Next Steps
-- As part of its commitment to further improve the viability of
its exploration assets at both the Volspruit and Far Northern Limb
projects, and to further unlock economic potential from these owned
and licenced assets, the Company anticipates spending approximately
ZAR70.0 million ($4.4 million) during FY2023 to perform further
resource optimisation and to undertake additional exploration
drilling and will continue to apply the same study parameters as
used in the initial investigations to the remaining target areas,
to ensure future value is realised at its exploration assets.
Jaco Prinsloo, CEO of Sylvania, commented:
"I am excited to share the results of our extensive optimisation
studies at our Northern Limb Mineral Assets. These results include
detailed Mineral Resource Estimates and a Scoping Study, and even
though these were evaluated using conservative parameters, all
results demonstrate attractive projects with significant upside
potential across our entire Northern Limb asset portfolio.
"While the current Volspruit Scoping Study economics do not meet
the Company's internal investment criteria and would not currently
trigger a formal investment decision, I believe that the PFS that
has already commenced will illustrate the significant upside that
the inclusion of the Rh resource and South Body material would
contribute. From existing metallurgical data (non-JORC compliant),
we know that Rh could for example contribute approximately 5% to 6%
additional ounces at no additional capex, demonstrates substantial
additional value and which would significantly improve the
attractiveness of the project.
"In terms of the Aurora Project, I am particularly excited by
the presence of the near surface T-Zone, similar to that previously
encountered at depth by Platinum Group Metals Ltd on its Waterberg
project. However, this newly discovered near surface T-Zone
suggests a lower cost and lower risk opportunity than typical deep
level underground mining techniques.
"These targeted exploration studies were commissioned during
FY2021 for both the Volspruit and Far Northern Limb Projects and
the rapid delivery of these exploration results is a testament to
the team's hard work and the Company's ability to deliver, in an
effective and efficient manner, on its strategic goals.
"During FY2023, the Company will continue to produce additional
optimisation studies for the remaining target areas held under the
Company's approved Mining Rights and that we deem to hold further
value for Sylvania. These exploration activities will be internally
funded and have already been included in the Company's announced
cashflow planning for this current year.
"While the Company continues to focus on delivering value from
and growing its existing cash generating dump reprocessing
operations, the optimisation of value from its exploration assets
remains one of the important pillars of Sylvania Platinum's growth
strategy and a future value driver. With that in mind, we are proud
to deliver these exploration results which I have no doubt will
generate significant future value for the Company and all of its
stakeholders. We look forward to sharing further updates in due
course."
Further Information
The Company's Northern Limb Mineral Assets constitute various
mineral asset exploration projects, that are endowed with PGE-Ni-Cu
mineralisation, on the Northern Limb of the Bushveld Igneous
Complex located in South Africa. Sylvania has approved Mining
Rights for its Mineral Asset portfolio.
Volspruit Project
The Company initiated a resource optimisation study, with the
assistance of Earthlab Technical Division ("Earthlab"), a mining
and exploration specialist company, at the Volspruit North Body.
The primary objective was to improve the Run of Mine ("ROM") ore
feed grades for the project to enable the production of a higher
grade, saleable PGM concentrate, eliminating the need for expensive
and complicated downstream processing infrastructure.
Earthlab has reviewed historical exploration results of the
Volspruit North Body and a revised geological interpretation was
applied. This allows for higher grades, reducing the Mineral
Resource Estimate to a smaller volume, but of a higher quality. Due
to the alternative definition of mineralised zones, estimated as
separate domains, the 2E PGM + Au grade of the MRE increased
significantly and has enhanced the economic potential of the
Volspruit North Body, especially when combined with the relatively
low waste to reef stripping ratios anticipated.
We continue to meet the investment and workstream requirements
relating to the permits under the existing Mining Right, with
specialist technical teams currently working on the authorisations.
These authorisations include the Water Use Licence for the mining
and on-site processing of the ore, updating of the Environmental
Impact Assessment and the finalisation of the amended Social and
Labour Plan ("SLP") which will update the Local Economic
Development ("LED") project that is included in the Mining Right
held by the Company.
Mineral Resource Estimate
Table 1 shows the Volspruit North Body Mineral Resource tonnes
and grades in g/t of Pt, Pd, Au and summed up as 2E + Au grade as
well as Cu and Ni as percentages. The tonnes and the metal content
are reported on a 100% attributable basis for all the PGMs and Base
Metals (Table 2). Tables 1 and 2 furthermore divide the tonnes,
ounces, and metal contained base metals into the three Resource
Classification parameters as per the JORC Code (2012). The
categories in decreasing confidence levels are Measured, Indicated
and Inferred categories.
A significantly large proportion of the 2E + Au oz (96%) of the
North Body reports to the Measured (21%) and Indicated (75%)
Mineral Resources. As for the contained Ni, 20% reports to the
Measured and 77% reports to the Indicated categories, respectively.
The Inferred Mineral Resources are attributed to faulting which
caused elevation differences with sparse drilling as well as the
presence of the Nyl River and its associated flood lines with
sparse drilling.
Table 1: Volspruit North Body Mineral Resources and grades at a
100% attributable basis
Mineral Tonnes Pt (g/t) Pd (g/t) Au (g/t) 2E +Au Cu (%) Ni (%)
Resource after 10% (g/t)
Class Geoloss
Measured 3,157,604 1.01 1.23 0.05 2.30 0.07 0.17
----------- --------- --------- --------- ------- ------- -------
Indicated 11,710,665 1.01 1.19 0.05 2.26 0.06 0.18
----------- --------- --------- --------- ------- ------- -------
M&I 14,868,269 1.01 1.20 0.05 2.27 0.06 0.18
----------- --------- --------- --------- ------- ------- -------
Inferred 558,019 1.17 1.09 0.06 2.33 0.07 0.17
----------- --------- --------- --------- ------- ------- -------
Total 15,426,288 1.02 1.20 0.05 2.27 0.06 0.18
----------- --------- --------- --------- ------- ------- -------
Table 2: Volspruit North Body Mineral Resources and metal
content at a 100% attributable basis
Mineral Tonnes Pt (oz) Pd (oz) Au (oz) 2E +Au Cu (lb) Ni (lb)
Resource after 10% (oz)
Class Geoloss
Measured 3,157,604 102,759 125,148 5,213 233,121 4,407,872 11,457,984
----------- -------- -------- -------- ---------- ----------- -----------
Indicated 11,710,665 381,174 449,773 19,293 850,240 15,063,089 44,331,575
----------- -------- -------- -------- ---------- ----------- -----------
M&I 14,868,269 483,933 574,921 24,506 1,083,360 19,470,961 55,789,558
----------- -------- -------- -------- ---------- ----------- -----------
Inferred 558,019 21,054 19,599 1,101 41,755 826,808 2,128,906
----------- -------- -------- -------- ---------- ----------- -----------
Total 15,426,288 504,987 594,521 25,608 1,125,115 20,297,769 57,918,464
----------- -------- -------- -------- ---------- ----------- -----------
Footnotes that are relevant to all Mineral Resource tables:
-- Rounding of numbers may lead to computational discrepancies;
-- Mineral Resources are reported as in-situ, without any
dilution of immediate hanging wall or footwall waste;
-- If cut-off grade is applied at the Mineral Resource level, it will be stated accordingly.
Scoping Study
Earthlab completed a Scoping Study on the North Body of the
Volspruit Project in accordance with the JORC Code (2012). Due to
the specific JORC Code requirements, Rh has not been included in
the current resource and its potential value contribution has
therefore not been included in the Scoping Study valuation.
The Technical Study accuracy ranges between a Scoping Study and
a Feasibility Study. A large portion of the study was completed
with an accuracy better than that required at a Pre-Feasibility
study level, including resource estimation, detailed mine design
and scheduling to produce a Run of Mine ("ROM") profile to feed a
concentrator. However, most of the processing infrastructure, in
terms of the Capital Expenditure estimates, is currently at a
scoping level of accuracy, which results in the project defaulting
back to a Scoping Study. The Technical Study reasonably justifies
the project's likelihood of progressing to a Pre-Feasibility Study
and beyond.
Steady state mining production is designed and planned to feed
the mills with a capacity of 150,000 tonnes per month ("ktpm") at
average feed grade of 2.13 g/t 2E +Au, 0.06% Cu and 0.17% Ni. The
mine plan comprises 15.7 million ROM tonnes, at a strip ratio of
6.67 (Metric t:t ROM) for the North Pit. Mining is scheduled in
three pushbacks over a production life of 8.7 years with a maximum
pit depth of 150 metres below the surface. The business case is
built on delivering and selling concentrate to a third-party
smelter similar to the model employed at the Company's existing
dump operations. The metal recoveries, as used in the financial
model to determine the recovered metal available to sell, are based
on test work undertaken by Mintek in South Africa, which in its
current level of progress is at a scoping level of accuracy.
The project returns $27.3 million (ZAR 464.0 million) at a
pre-tax NPV(12.5%) and an IRR of 17.9%. The total contained metal
in concentrate is: 704,000 oz of Pt, Pd, and Au; 13.6 million lb of
Cu; and 33.7 million lb of Ni. This valuation currently excludes
potential upside from Rh contribution and South Body PGM ounce
inclusion which are currently being assessed.
Peak funding required is $147.4 million (ZAR 2.5 billion) with a
payback period of 4.25 years from the first production. All-in
Sustaining Cost ("AISC") to produce Pt, Pd, and Au ounces is
$979/oz and $39.8 per tonne milled (ZAR 675/t). The yearly
projected EBITDA is $30.6 million (ZAR 520 million).
Investment returns:
Investment Returns* Total/Average
NPV Pre-Tax $27.3m (ZAR 464.0m)
--------------------
IRR Pre-Tax (Real, %) 17.9%
--------------------
Pre-Tax Discount Factor (Real,
%) 12.5%
--------------------
Payback Period (from first
Production, years) 4.25
--------------------
Peak Funding Requirement $147.4m (ZAR 2.5b)
--------------------
Life of Mine (years) 8.7
Operating Margin (%) 33%
--------------------
EBITDA per Annum $30.6m (ZAR 520m)
--------------------
AISC (ZAR per Pt, Pd + Au oz
payable) $979 (ZAR 16,614)
--------------------
AISC (ZAR per PtEq oz payable) $788 (ZAR 13,368)
--------------------
$1,277/oz 2E +
Au
Basket Price (ZAR per Pt, Pd (ZAR 21,670/oz
+ Au oz payable) 2E + Au)
--------------------
* Investment Returns currently exclude any Rh upside potential
as well as any potential contribution from the Volspruit South Body
which is still being evaluated.
(#) Converted to US$ at the long-term forecast exchange rate of
ZAR16.97.
Far Northern Limb Projects
The Company currently holds approved Mining Rights for PGMs and
Base Metals for both the Aurora and Hacra project areas as part of
its Far Northern Limb Projects.
In 2020 the Company, together with Earthlab, initiated a
targeted review of the Hacra and Aurora PGM and Base Metal projects
through an infill drilling programme, re-evaluation of existing
drill hole data and an optimisation study.
Aurora Project
Through the re-interpretation of the geology, stratigraphy and
the mineralisation, a significant Measured and Indicated Mineral
Resource representing the first near-surface discovery of the
Waterberg T-Zone geology and mineralisation is being declared.
These results from the La Pucella Target area of the Far Northern
Limb provide only the second known occurrence of the T-Zone
mineralisation, with the initial discovery in 2011 found at depths
more than 220 metres below surface underlying the Waterberg PGM
Project.
Table 5 shows the Mineral Resource tonnes (discounted by 10%
geological losses) and grades in g/t of Pt, Pd, Au and summed up as
2E +Au grade for the La Pucella target area which also includes a
small portion of the contiguous Nonnenwerth farm. The tonnes and
the metal content are reported on a 100% attributable basis.
A significantly large proportion of the 2E +Au oz (99 %) reports
to the Measured (31%) and Indicated (68%) Mineral Resources. The
Inferred Mineral Resources are attributed to faulting which caused
elevation differences with sparse drilling. While no blocks deeper
than 200 metres below the surface are included in the reported
numbers, the mineralisation is known to extend beyond this depth,
and with future additional drilling, an underground Mineral
Resource could potentially be reported.
Table 5: Aurora Project T1 and T2 Mineral Resources and grades
at La Pucella and Nonnenwerth ([1])
Mineral Tonnes Density Pt Pd Au 2E Pt metal Pd metal Au metal 2E +
Resource after 10% (g/cm(3)) grade grade grade + Au (oz) (oz) (oz) Au metal
Class Geoloss (g/t) (g/t) (g/t) grade (oz)
(g/t)
Measured 4,663,151 2.72 0.97 1.48 0.40 2.85 146,009 222,053 59,386 427,448
----------- ----------- ------- ------- ------- ------- --------- --------- --------- ----------
Indicated 11,543,631 2.71 0.88 1.34 0.33 2.54 326,095 496,743 121,604 944,442
----------- ----------- ------- ------- ------- ------- --------- --------- --------- ----------
M&I 16,206,782 2.71 0.91 1.38 0.35 2.63 472,104 718,796 180,990 1,371,890
----------- ----------- ------- ------- ------- ------- --------- --------- --------- ----------
Inferred 124,671 2.71 0.95 1.32 0.40 2.68 3,822 5,297 1,611 10,730
----------- ----------- ------- ------- ------- ------- --------- --------- --------- ----------
Total 16,331,452 2.71 0.91 1.38 0.35 2.63 475,926 724,093 182,601 1,382,620
----------- ----------- ------- ------- ------- ------- --------- --------- --------- ----------
Hacra Project
Exploration Results for the Hacra mineralisation are reported in
Tables 6 and 7. As the project continues, the Company aims to use
the data to compile a MRE with the aim of declaring a maiden
Mineral Resource. A total of 8 intersections of the T-Zone have
been logged in the drill core, of which 4 were intersected during
the 2021 drilling program, all of which will be subjected to an
MRE. During the 2021 campaign, the intersections range in true
thickness from 3.40 m at 5.47 g/t 2E + Au and 11.09 m at 5.64 g/t
2E + Au. A notable intersection during the 2021 campaign is 5 m at
7.83 g/t 2E + Au on the T2 Unit. The MRE is expected to be
completed during early 2023.
Various planned drill holes or deflections did not intersect the
targeted T1 and T2 mineralisation in both the 2012 and the 2021
exploration campaigns as noted in Table 7.
Table 6: Hacra Project Exploration Results for drill holes
intersecting T1 and T2 Units on Harriets Wish farm.
BHID Intersection From To Depth Average True Thickness 2E +Au Drilling
Depth (m) Dip (Degrees) (m) Grade Campaign
(m) (g/t)
HW-029 T1 519.96 594.20 45 1.91 2.80 2012
-------------- ------- --------- --------------- --------------- ------- ----------
T2-UPPER 612.32 615.60 45 2.79 2.32
-------------------------- ------- --------- --------------- --------------- ------- ----------
T2-LOWER 633.70 639.71 45 5.11 3.51
-------------------------- ------- --------- --------------- --------------- -------
HW-029W1 T1 591.25 594.24 45 2.54 1.89
-------------- ------- --------- --------------- --------------- -------
T2-UPPER 612.80 616.20 45 2.89 1.87
-------------------------- ------- --------- --------------- --------------- -------
T2-LOWER 635.00 638.34 45 2.84 2.02
-------------------------- ------- --------- --------------- --------------- -------
HW-029W2 T1 591.85 595.00 45 2.68 2.97
-------------- ------- --------- --------------- --------------- -------
T2-UPPER 614.40 616.80 45 2.04 0.97
-------------------------- ------- --------- --------------- --------------- -------
T2- LOWER 634.60 638.55 45 3.36 2.84
-------------------------- ------- --------- --------------- --------------- -------
HW-032 T1 701.00 719.93 45 24.04 3.93
-------------- ------- --------- --------------- --------------- -------
T2 722.13 729.25 45 6.78 3.56
-------------------------- ------- --------- --------------- --------------- ------- ----------
HW-201_D0 T1 398.84 414.27 45 11.90 5.64 2021
-------------- ------- --------- --------------- --------------- ------- ----------
T2 414.27 427.64 45 10.31 2.34
-------------------------- ------- --------- --------------- --------------- ------- ----------
HW-202_D0 T1 405.18 410.67 45 4.23 4.84
-------------- ------- --------- --------------- --------------- -------
T2 410.67 417.15 45 5.00 7.38
-------------------------- ------- --------- --------------- --------------- -------
HW-202_D1 T1 406.11 410.15 45 3.40 5.74
-------------- ------- --------- --------------- --------------- -------
T2 410.15 417.83 45 5.57 3.00
-------------------------- ------- --------- --------------- --------------- -------
HW-202_D2 T1 404.21 409.33 45 3.95 2.78
-------------- ------- --------- --------------- --------------- -------
T2 409.33 415.10 45 4.45 5.99
-------------------------- ------- --------- --------------- --------------- ------- ----------
a Project Exploration Results for drill holes that did not
intersect T1 and T2 Units on Harriets Wish farm
BHID Campaign Reason
HW-0293 2012 Intersected fault zone in HW stratigraphy. Drilling
stopped due to poor ground conditions.
--------- -----------------------------------------------------------
HW-024 Troctolite sequence intersected (F-Zone equivalent),
drill hole positioned beyond T-Zone sub-crop.
--------- -----------------------------------------------------------
HW-024_W1 Troctolite sequence intersected (F-Zone equivalent),
drill hole positioned beyond T-Zone sub-crop.
-----------------------------------------------------------
HW-025 Structural interference with multiple faults cross-cutting
the Troctolite Sequence (F-Zone equivalent), beyond
the T-Zone sub-crop.
-----------------------------------------------------------
HW-025_W1 Structural interference with multiple faults cross-cutting
the Troctolite Sequence (F-Zone equivalent), beyond
the T-Zone sub-crop.
-----------------------------------------------------------
HW-026 Beyond T-Zone sub-crop, intersection with Archean
Basement directly after Waterberg Group.
-----------------------------------------------------------
HW-027 Beyond T-Zone sub-crop, intersection with Archean
Basement directly after Waterberg Group.
-----------------------------------------------------------
HW-028 Stopped short in Waterberg Group at 6 m due to Archean
Basement sub-crop.
-----------------------------------------------------------
HW-030 Drill hole stopped at planned depth with no T-Zone
intersection. Drill hole on far western extent of
the Harriets Wish farm.
-----------------------------------------------------------
HW-031 Drill hole stopped at planned depth with no T-Zone
intersection. Drill hole on far western extent of
the Harriets Wish farm.
--------- -----------------------------------------------------------
HW-203_D0 2021 T-Zone intersection cross-cut by large shear zone.
Structural interference and mineralisation sterilisation.
--------- -----------------------------------------------------------
HW-203_D1 T-Zone intersection cross-cut by large shear zone.
Structural interference and mineralisation sterilisation.
--------- -----------------------------------------------------------
HW-204_D0 T-Zone intersection cross-cut by large shear zone.
Structural interference and mineralisation sterilisation.
-----------------------------------------------------------
HW-204_D1 T-Zone intersection cross-cut by large shear zone.
Structural interference and mineralisation sterilisation.
-----------------------------------------------------------
HW-204_D2 T-Zone intersection cross-cut by large shear zone.
Structural interference and mineralisation sterilisation.
-----------------------------------------------------------
HW-205 Troctolite Sequence intersected (F-Zone equivalent),
drill hole positioned beyond T-Zone sub-crop.
-----------------------------------------------------------
HW-206 Drill hole abandoned due to poor drilling conditions
and hole collapse, due to Paleosol Unit destabilisation.
--------- -----------------------------------------------------------
CONTACT DETAILS
For further information, please
contact:
Jaco Prinsloo CEO
Lewanne Carminati CFO +27 11 673 1171
Nominated Adviser and Broker
Liberum Capital Limited +44 (0) 20 3100 2000
Richard Crawley / Scott Mathieson
/ Kane Collings
Communications
BlytheRay +44 (0) 20 7138 3205
Tim Blythe / Megan Ray / Rachael sylvania@BlytheRay.com
Brooks
CORPORATE INFORMATION
Registered and postal Sylvania Platinum Limited
address:
Clarendon House
2 Church Street
Hamilton HM 11
Bermuda
SA Operations postal PO Box 976
address:
Florida Hills, 1716
South Africa
Sylvania Website : www.sylvaniaplatinum.com
About Sylvania Platinum Limited
Sylvania Platinum is a lower-cost producer of platinum group
metals (PGM) (platinum, palladium and rhodium) with operations
located in South Africa. The Sylvania Dump Operations (SDO)
comprises six chrome beneficiation and PGM processing plants
focusing on the retreatment of PGM-rich chrome tailings materials
from mines in the Bushveld Igneous Complex. The SDO is the largest
PGM producer from chrome tailings re-treatment in the industry. The
Group also holds mining rights for PGM projects in the Northern
Limb of the Bushveld Complex.
For more information visit https://www.sylvaniaplatinum.com/
The information contained within this announcement is deemed by
the Company to constitute inside information for the purposes of
Article 7 of Regulation (EU) no.596/2014 as amended by the Market
Abuse (Amendment) (EU Exit) Regulations 2019.
For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, this announcement is being made on
behalf of the Company by Jaco Prinsloo.
In accordance with the AIM Rules - Note for Mining and Oil &
Gas Companies, the information contained in this announcement has
been reviewed and signed off by Mr. Deon du Plessis, a qualified
professional Geologist (Pr.Sci.Nat. - 400050/05) and Fellow with
the Geological Society of South Africa (FGSSA - 963338), who has
over 21 years' relevant experience within the mining sector.
ANNEXURE
GLOSSARY OF TERMS - Results of Optimisation Studies for Northern Limb Mineral
Assets
The following definitions apply throughout the announcement:
Mineral Resource Estimate - The process of subjecting known
geological evidence and knowledge required for the estimation
of Mineral Resources, and must include sampling data of a
type, and at spacings, appropriate to the geological, chemical,
physical, and mineralogical complexity of the mineral occurrence,
for all classifications of Inferred, Indicated and Measured
Mineral Resources. A Mineral Resource cannot be estimated
in the absence of sampling information. Any adjustment made
to the data for the purpose of making the Mineral Resource
estimate, for example by cutting or factoring grades, should
MRE be clearly stated and described in the Public Report.
2E + Au Platinum, Palladium, and Gold
----------------------------------------------------------------------
AISC All-in sustaining costs
----------------------------------------------------------------------
Platinum Equivalent is quantity of a Metal having an economic
value expressed in ounces of Platinum and calculated by multiplying
the quantity of the Metal by an assumed price for that Metal
Equivalent Ounce and dividing the product by an assumed price for Platinum,
(Pt) where such prices are determined using the Financial Parameters.
----------------------------------------------------------------------
A comprehensive technical and economic study of the selected
development option for a mineral project that includes appropriately
detailed assessments of applicable Modifying Factors together
with any other relevant operational factors and detailed
financial analysis that are necessary to demonstrate at the
time of reporting that extraction is reasonably justified
(economically mineable). The results of the study may reasonably
serve as the basis for a final decision by a proponent or
financial institution to proceed with, or finance, the development
of the project. The confidence level of the study will be
Feasibility Study higher than that of a Pre-Feasibility Study.
----------------------------------------------------------------------
A geological loss is an area or volume with no reef or ore
developed due to disruption by a geological feature. Geological
loss is expressed as a percentage by which a Mineral Resource
is discounted and is based on the geological condition of
an orebody. There are two types termed "Known" and "Unknown"
losses. Mineral Resources are discounted by the total geological
losses. A Known geological loss is known/expected before
mining takes place, and is often indicated by remote sensing,
or is the extension of a feature, which has been exposed
by current mining activities. These types of geological features
are in general occurrences of a linear type of features (examples
include faults, dykes, shear zones, and other localised features).
Unknown geological losses are generally associated with those
features which have not been determined by various geophysical
Geoloss techniques.
----------------------------------------------------------------------
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 gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings
and drill holes, and is sufficient to assume geological and
grade (or quality) continuity between points of observation
where data and samples are gathered. An Indicated Mineral
Resource has a lower level of confidence than that applying
to a Measured Mineral Resource and may only be converted
Indicated to a Probable Ore Reserve.
----------------------------------------------------------------------
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. It is based
on exploration, sampling and testing information gathered
through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes. An Inferred Mineral
Resource has a lower level of confidence than that applying
to an Indicated Mineral Resource and must not be converted
to an Ore Reserve. It is reasonably expected that the majority
of Inferred Mineral Resources could be upgraded to Indicated
Inferred Mineral Resources with continued exploration.
----------------------------------------------------------------------
Joint Ore Reserves Committee - The Australian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves
('the JORC Code') is a professional code of practice that
sets minimum standards for Public Reporting of Exploration
JORC Results, Mineral Resources and Ore Reserves.
----------------------------------------------------------------------
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 gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and
drill holes, and is sufficient to confirm geological and
grade (or quality) continuity between points of observation
where data and samples are gathered. A Measured Mineral Resource
has a higher level of confidence than that applying to either
an Indicated Mineral Resource or an Inferred Mineral Resource.
It may be converted to a Proven Ore Reserve or under certain
Measured circumstances to a Probable Ore Reserve.
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PGE-Ni-Cu Platinum Group Elements, Nickel and Copper
----------------------------------------------------------------------
Platinum Equivalent is quantity of a Metal having an economic
value expressed in ounces of Platinum and calculated by multiplying
the quantity of the Metal by an assumed price for that Metal
and dividing the product by an assumed price for Platinum,
PtEq where such prices are determined using the Financial Parameters.
----------------------------------------------------------------------
An area that can be mined in a single continuous operation
Pushbacks as defined within the Ultimate Pit.
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Waste to reef stripping ratio, refer to Stripping ratio definition
Reef Stripping below.
----------------------------------------------------------------------
Defined as c lasses or categories as per the JORC Code (2012)
in decreasing confidence levels as Measured, Indicated and
Resource Classification Inferred.
----------------------------------------------------------------------
ROM Run of Mine
----------------------------------------------------------------------
An order of magnitude technical and economic study of the
potential viability of Mineral Resources. It includes appropriate
assessments of realistically assumed Modifying Factors together
with any other relevant operational factors that are necessary
to demonstrate at the time of reporting that progress to
Scoping Study a Pre-Feasibility Study can be reasonably justified.
----------------------------------------------------------------------
Refers to the amount of waste (or overburden) that must be
Strip Ratio removed to release a given ore quantity .
----------------------------------------------------------------------
The T-Zone occurs within the Bushveld Complex's Main Zone
just beneath the contact of the overlaying Upper Zone and
consists of numerous mineralised layers with two potential
economical PGE-Ni-Cu layers identified from top down as the
T1 Unit and T2 Unit, separated by the TZ-Middling unit. They
are composed mainly of anorthosites, leuco-gabbronorite through
T-Zone gabbronorite, harzburgite, troctolite, and olivine gabbronorite.
----------------------------------------------------------------------
1 Footnotes:
-- To perform block model estimation, wireframes of the
mineralised T-Zone underlying the farm of La Pucella were
un-faulted and rotated to an approximated horizontal plane. The
Mineral Resource constitutes the T1-main and T2-main zones. The
Mineral Resource is reported from a orthogonal block model in its
actual spatial position with no rotations or translations. The
orthogonal block model is fit-for-purpose to be subjected to
Whittle Pit Optimisation procedures.
-- The numbers reported in this disclosure are before any
cut-off grade applied to the block model.
-- The parent block size is set to X=2.5m ; Y=20m ; Z=5m. There
are however millions of subcells which resulted from the intricate
steps followed to produce the Mineral Resource. The subcells are
retained at this stage to honor the stratigraphic populations
(T1_main vs T1_waste and T2_main vs T2_waste) as well as the 3E
classification. Block optimisation was done without regarding Rh,
Cu, or Ni classification since these metals are downgraded to
Inferred for the entire model.
-- The surface elevation of the project area ranges from 1,000
mamsl to 1,005 mamsl. Blocks are filtered to include only those
lying at 800 mamsl and above to report the Mineral Resource at
approximately 0 - 200 m below surface. No blocks deeper than 200 m
below the surface are included in the reported numbers, however,
the mineralisation is known to extend beyond this depth, and with
later-stage additional drilling an underground Mineral Resource
could potentially be reported should the deposit satisfy the RPEEE
test.
-- As per the guidelines set out by JORC an RPEEE test has been
performed on the La Pucella grade block model as part of the
initial work undertaken for the Scoping Study, which is based on an
open-pit mining configuration. The La Pucella grade block model has
passed the RPEEE test conducted by Earthlab in October 2022. The
results of the test prove the prospective economic viability of the
project and substantiate the declaration of its Mineral Resources
to a depth of 200 m below surface.
-- The current block model extends slightly beyond the borders
of the farm La Pucella. A detailed breakdown is only provided for
blocks within La Pucella and Nonnenwerth, which are inside the
current Mining Right.
-- The average grades reported in this document are calculated
on the tonnage before applying geological losses. The 10% geoloss
discount factor is applied to the total tonnage without any
specific location affected, therefore not affecting the grade.
-- Pt, Pd, and Au (3E) are the only elements for which Measured
and Indicated Resource categories are reported. Each element was
classified according to a scorecard, and then combined in the
following ratio based on potential revenue contribution:
o T1_main: Pt : Pd : Au - 0.25 : 0.58 : 0.17
o T2_main: Pt : Pd : Au - 0.22 : 0.63 : 0.15
-- Although higher confidence classifications were achieved for
Rh, Cu, and Ni based on the estimation scorecard, Rh, Cu, and Ni
were downgraded to Inferred due to insufficient confidence in the
analytical results obtained by the laboratory. This could
potentially be restored with future re-assay work.
-- Numbers are reported to three significant figures.
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