TIDMUFO
RNS Number : 5111X
Alien Metals Limited
26 April 2023
Trading Symbols
AIM: UFO FWB: I3A1
26April 2023
Alien Metals Ltd
("Alien Metals" or "the Company")
Maiden JORC Ore Reserves at Hancock Iron Ore Project
Elizabeth Hill Update
Alien Metals Ltd (LSE AIM:UFO), a global minerals exploration
and development company, is pleased to deliver a maiden JORC
compliant Mineral Reserve for the Company's flagship Hancock Iron
Ore Project ("Hancock"), situated in the prolific iron ore
producing region of the Pilbara, Western Australia.
Further, the Company is pleased to report further drill results
from the Natalie Hill South prospect, Elizabeth Hill, Australia's
highest grade silver deposit.
Highlights
Hancock Iron Ore
-- Maiden Ore Reserves of:
o Ore Reserve 1.9Mt @ 60.2% Fe and
o Mining Inventory 4.2Mt @ 60.5% Fe, inclusive of Reserves
-- Updated JORC Mineral Resource Estimate (" MRE ") (using a 58% cut off grade):
o Indicated Resource 1.7Mt @ 61.0% Fe , and
o Inferred Resource 7.4Mt @ 60.1% Fe
o Global Resource 9.1Mt @ 60.3% Fe
-- Inaugural declaration of Indicated Mineral Resources of 1.7 million tonnes ("Mt") @ 61.0% Fe
-- Confidence in project resource has increased with the
inaugural Ore Reserves and Indicated Mineral Resources being
defined
-- 71% of the combined resource at Ridges C and E is now
classified as Indicated Mineral Resource material
-- Drilling is currently underway at Sirius Extension to deliver
additional Mineral Resource and Ore Reserve upgrades as the Company
approaches Financial Investment Decision (FID) for the Project
-- Further potential to increase Hancock's mineral resource remains on unexplored ridges
-- Commercial negotiations ongoing with preferred proponents for project material packages
-- Offtake discussions progressing on schedule
-- The Company's procurement efforts are on target to deliver
+/-US$10 million in CAPEX savings from the initial estimate of
US$30 million in the Scoping Study
Elizabeth Hill
-- Results from 22AMC007 indicate potential for new target PGE
reefs in the area at Elizabeth Hill
-- The headframe refurbishment works at the Elizabeth Hill mine site have been completed
Rod McIllree, Executive Chairman, commented:
"The updated JORC Mineral Resource and maiden Ore Reserve for
the Hancock Project further confirms our confidence in the Project
with its high grade, direct shipping quality iron ore. This,
combined with the ongoing negotiation of commercial tenders for the
material packages associated with the Hancock Project lays the
strong economic foundations for project and operational execution.
In the coming weeks, I look forward to sharing the outcomes of
these negotiations with you as we finalise the pathway to
operations.
"It is also exciting to see that this recent drilling has
successfully intersected Judy's Reef, demonstrating the Company's
understanding of potential expansions of the existing resource at
and around the Munni Munni/Elizabeth Hill Area, but also,
highlighting new targets of untested PGE reefs similar to that seen
at the main Munni Munni complex. The geochemical and geological
targeting model that the Company's geologists are working on will
assist future drill programs to unlock the value at one of
Australia's premier layered ultramafic complexes."
Summary - Hancock Project
The Company is pleased to report its significant Maiden Ore
Reserve based upon an updated JORC MRE for the high grade, direct
ship ore, Hancock Project.
JORC Mineral Resource Estimate 9.1Mt @ 60.3% Fe
JORC Probable Ore Reserve 1.9Mt @ 60.2% Fe
The Hancock Project is located 17 kilometres (" km ") north of
the regional iron ore mining hub of Newman, Western Australia. The
geology of the area supports nearby world class iron ore mines and
the Company has an opportunity to build on the current high
confidence JORC compliant mineral resources and ore reserves to
develop a long life, direct ship, high grade iron ore mine.
Mineral Reserves and Mining Inventory
The Company engaged a respected, independent consultancy, Burnt
Shirt Pty Ltd ( "Burnt Shirt" ) to complete mining studies to
develop Ore reserves for the Hancock Project. The result of these
studies has resulted in a JORC compliant Probable Ore reserve
of:
Ore Reserve - 1.9 Million tonnes @ 60.2% Fe
Table 1 - Ore Reserve Estimate
Material Tonnes (Mwmt) Volume (Mbcm) Fe SiO(2) Al(2) O(3) P LOI Mn
Proved - - - - - - -
-------------- -------------- ------ ------- ----------- ----- ----- -----
Probable 1.9 0.7 60.16 5.69 3.54 0.12 3.85 0.02
-------------- -------------- ------ ------- ----------- ----- ----- -----
Total 1.9 0.7 60.16 5.69 3.54 0.12 3.85 0.02
---------- -------------- -------------- ------ ------- ----------- ----- ----- -----
Burnt Shirt estimated a mining inventory, using the same
modifying factors as the Ore reserve, and inclusive of the Ore
Reserve, of:
Mining Inventory - 4.2 Million tonnes @ 60.5% Fe
Table 2 - Mining Inventory
Material Tonnes (Mwmt) Volume (Mbcm) Fe SiO(2) Al(2) O(3) P LOI Mn
Unclassified 4.2 1.6 60.51 4.11 3.53 0.15 4.74 0.04
-------------- -------------- ------ ------- ----------- ----- ----- -----
Total 4.2 1.6 60.51 4.11 3.53 0.15 4.74 0.04
-------------- -------------- -------------- ------ ------- ----------- ----- ----- -----
The Company's wholly owned subsidiary, Iron Ore Company of
Australia Pty Ltd (IOCA), is the Manager and Operator of the
Hancock Project. IOCA is the legal and beneficial owner of a 90%
direct interest in the Licences, Ore Reserves and Mining Inventory
associated with the Hancock Project. Accordingly on a net basis the
figures above are as follows: Ore Reserve - 1.71 Million tonnes @
60.2% Fe and Mining Inventory - 3.8 Million tonnes @ 60.5% Fe.
Mineral Resource Estimate
Following the announcement of the September 2021 Hancock MRE,
the Company completed additional reverse circulation ( "RC" ) and
diamond core ( "core" ) drilling on the Ridge C and Ridge E
prospects. This drilling successfully upgraded large portions of
the project from Inferred to Indicated material, reflecting strong
continuity and predictability of these high grade zones.
Highlights from this updated MRE:
-- Global tonnes 9.1Mt @ 60.3% Fe
-- Indicated tonnes have increased from nil to 1.7Mt @ 61.0% Fe
-- 64% of material at Ridge C is now Indicated Resource material
-- 77% of material at Ridge E is now Indicated Resource material
-- The Indicated Fe grade for Ridge C is 60.9%
-- The indicated Fe grade for Ridge E is 61.0%
-- Core drilling has commenced at Sirius Extension with the aim
of improving geological confidence to enable Indicated
classification of portions of the high-grade material after the
required MRE works are completed during the coming months
Table 3 - Hancock Mineral Resource Statement (cut-off grade
58%)
Classification Prospect Mass Average Value
Category (Million
Tonnes)
Fe SiO(2) Al(2) P LOI MnO
O(3)
----- ------- ------ ----- ---- -----
% % % % % %
----- ------- ------ ----- ---- -----
Indicated Sirius
Extension
------------ ---------- ----- ------- ------ ----- ---- -----
Ridge C 0.7 60.9 4.9 3.27 0.12 3.7 0.03
----------------------------- ---------- ----- ------- ------ ----- ---- -----
Ridge E 1.0 61.0 5.2 3.30 0.12 3.4 0.02
----------------------------- ---------- ----- ------- ------ ----- ---- -----
Sub Total - Indicated 1.7 61.0 5.1 3.29 0.12 3.5 0.02
---------- ----- ------- ------ ----- ---- -----
Sirius
Inferred Extension 6.7 60.1 4.1 3.71 0.17 5.2 0.05
------------ ---------- ----- ------- ------ ----- ---- -----
Ridge C 0.4 60.8 4.6 3.07 0.14 4.4 0.03
----------------------------- ---------- ----- ------- ------ ----- ---- -----
Ridge E 0.3 59.8 4.9 3.64 0.17 5.0 0.02
----------------------------- ---------- ----- ------- ------ ----- ---- -----
Sub Total - Inferred 7.4 60.1 4.2 3.67 0.17 5.2 0.05
---------- ----- ------- ------ ----- ---- -----
Total 9.1 60.3 4.3 3.60 0.16 4.9 0.04
---------- ----- ------- ------ ----- ---- -----
The Companies wholly owned subsidiary, Iron Ore Company of
Australia Pty Ltd (IOCA), is the Manager and Operator of the
Hancock Project. IOCA is the legal and beneficial owner of a 90%
direct interest in the Licences, Ore Reserves and Mining Inventory
associated with the Hancock Project. Accordingly on a net basis the
figures above are as follows: Indicated sub-total - 1.53 Million
tonnes @ 61.0% Fe and Inferred sub-total - 6.66 Million tonnes @
60.1% Fe for a total MRE of 8.19 Million tonnes @ 60.3% Fe..
Summary - Elizabeth Hill
Further to the Company's RNS on 20 February 2023, the Company is
pleased to report the final Assay results from four reverse
circulation holes have been received for Elizabeth Hill.
The drill holes were positioned to test an electromagnetic (
"EM" ) anomaly and the continuance of Judy's Reef, which is 1.5km
south of Elizabeth Hill. Pleasingly, the results have indicated the
presence of broad zones of anomalous Ni and Cu in an area that is
co-incident with an EM anomaly and the interpreted position of an
extension to Judy's Reef.
The new data (see figure 1) from the drilling and geological
interpretation demonstrates that a reef, similar to the significant
ones at Central Munni Munni, is located further west of this
drilling. The reported anomalous PGEs, Ni, Cu and elevated Chromium
units are of a similar tenor form and reef style orientation, with
a similar dip to the granite contact as seen at the Munni Munni
Resource area. The main reef at Munni Munni is known as the
Ferguson Reef. It is part of the historical non JORC compliant
resource of 24Mt at 2.9 grammes per tonne ("g/t") Platinum Group
Metals ("PGM") and gold for 2.2 million ounces ("Moz").
Figure 1 - Cross Section J Reef at Elizabeth Hill South
To support future drilling campaigns, the Company has recently
commenced a significant geochemical signature program capturing
pXRF data down complete holes through the Ferguson Reef area to
create a geochemical fingerprint and signature of the prospective
ultramafic sequences in the Munni Munni tenements.
By systematically recording the geochemical information at
regular intervals, the Company's geologists will be able to use
advanced artificial intelligence techniques to predict the height
in the stratigraphic sequence and which direction to the
prospective resource rich zones are located. This geochemical
signature program, although just commenced, has already highlighted
similarities between the Ferguson Reef signature (which
demonstrates Chromium ("Cr") at the basal part of the zone), and
the recent drilling at Elizabeth Hill South. The cross-section for
hole 22AMC007 (see Figure 1) demonstrates the elevated Cr anomaly,
combined with geological mapping and interpretation has identified
high priority areas for future drilling campaigns targeting high
grade new PGE reefs.
The Company, through its acquisitions of the Elizabeth Hill and
Munni Munni deposits, has the enviable position of being the first
company to consolidate the wider Munni Munni complex into one
project, allowing it to better identify and unlock a potential
major mineralised system (see Figure 2).
Figure 3 - Alien Metals Consolidated Tenement Holdings
For further information please visit the Company's website at
www.alienmetals.uk, or contact:
Beaumont Cornish Limited (Nomad)
James Biddle / Roland Cornish
Tel: +44 (0) 207 628 3396
WH Ireland Ltd (Joint Broker)
Harry Ansell / Katy Mitchell
Tel +44 (0) 207 220 1666
BlytheRay (Financial PR)
Tim Blythe / Megan Ray / Said Izagaren
Tel: +44 (0) 20 7138 3204
Further Information
Elizabeth Hill & Munni Munni
The programme of reverse circulation drilling at Elizabeth Hill
comprised of eight holes for a total of 709 metres ("m"). Five
regional holes were drilled in one line several hundred metres to
the north but failed to identify any structure suggesting a change
in trend of the mineralisation. Two holes will be re-entered and
completed using a diamond drill rig to push past the water into the
mineralised envelope. The mineralisation, as intersected in this
drilling, is on the contact of a structurally controlled contact
between granite and ultramafic rocks thought to create a metal
receptive reactive shear zone as well as a metal rich liquid
highway. The main high-grade vein of silver plunges steeply to the
south and testing of interpreted parallel structures will be part
of future drilling. The polymetallic nature of the mineralisation,
with Pb values up to 2.09% (22AMC001) recorded, has not been fully
accounted for in previous work demonstrating potential for
additional product co and by-product including Pb, Au, Pt and
Pd.
Elizabeth Hill is located 45km southeast of the city of
Karratha, Western Australia. The project is situated in the Pilbara
Craton, a region well-known for precious metal mineralisation.
Elizabeth Hill is recognised as being Australia's highest-grade
silver mine when it was in production between 1999-2000.
Elizabeth Hill had a pre JORC 2012 resource of 4.05Moz of silver
prior to the start of mining and was renowned for its exceptional
native silver nuggets and silver wires. Over one million ounces of
silver, mainly in the form of nuggets, were produced between
1999-2000 from a single shaft and small processing plant before the
mine was closed due to water inflow. Elizabeth Hill is 100% owned
by the Company and Alien is undertaking a complete review of all
historic data from both surface and underground drilling with a
view to reopening the mine.
The Company also owns the nearby Munni Munni Project (4km
southwest of Elizabeth Hill) which hosts significant PGE
mineralisation. Munni Munni has a historical non JORC compliant
resource of 24Mt at 2.9g/t Platinum Group Metals ("PGM") and gold
for 2.2Moz. This includes 1.14Moz of palladium, 0.83Moz of
platinum, 152koz gold and 76koz of rhodium. The Munni Munni Project
is one of Australia's largest PGM deposits.
Figure 4 - Location of EH Project and Munni Munni PGM Ni Cu
Project, Pilbara, Western Australia
Hancock Project
-- The initial Life of Mine scoping study shows the current
resource will sustain a multi-year mine life based on the following
parameters:
o Mining rate of 1.25 million tonnes per annum ("Mtpa") with a
pre-production capital estimate of <US$30 million
o Low waste-to-ore mining ratios
o Operating costs of <US$60/t FOB
o Potential to identify additional resources on the Hancock
licence.
-- The Company is in the final stages of updating this study and
will communicate those results in due course.
Figure 5 - Location of Hancock Iron Ore Project, Western
Australia
Notes to Editors
Alien Metals Ltd is a mining exploration and development Company
listed on the AIM market of the London Stock Exchange (LSE: UFO).
The Company's focus is on delivering a profitable, long life direct
shipping iron ore operation based out of the Pilbara in Western
Australia. In 2019, the Company acquired 51% of the Brockman and
Hancock Ranges high-grade (Direct Shipping Ore) iron ore projects
and in December 2022 moved to 90% legal and beneficial ownership.
The Company also acquired 100% of the Vivash Gorge Iron Ore project
in the west Pilbara in July 2022.
The Company acquired 100% of the Elizabeth Hill Silver Project,
which consists of the Elizabeth Hill Historic Mining Lease and the
115km(2) exploration tenement around the mine.
In March 2022 the Company acquired 100% of the former joint
venture interest in the Munni Munni Platinum Group Metals and Gold
Project in the West Pilbara, Western Australia, one of Australia's
major underexplored PGE and base metals projects. Munni Munni holds
a historic deposit containing 2.2Moz 4E PGM: Palladium, Platinum,
Gold, Rhodium.
The Company also holds silver, copper and base metal projects in
various locations around the world however is currently looking at
the best way to divest these for the benefit of shareholders.
Competent Person Statement - Elizabeth Hill and Munni Munni
The information in this announcement that relates to Exploration
Results, is based on information compiled by Mr. Bradley Toms who
is the Exploration Manager and a full time employee of Alien Metals
Ltd. Mr. Toms is a Member of The Australian Institute of
Geoscientists and has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration
and to the activity that he is undertaking, to qualify as Competent
Person as defined in the 2012 Edition of the "Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves". Mr. Toms consents to the inclusion in the document of
the information in the form and context in which it appears. Mr
Toms has declared that he holds Performance Rights in the
Company.
*Thicknesses 4m are composite samples, taken by spearing.
*Thicknesses of 1m are riffle split single metre samples.
*bdl = below detection limit
*Assay results from a Certified Analytical Laboratory, Bureau
Veritas, located in Perth, Western Australia
Appendix
Elizabeth Hill
Table 4 - Summary Highlight Ni and Cu Intersections from RC
Drilling, Elizabeth Hill, November 2022
Downhole intersection of Ni >=2000ppm with less than 2m
internal waste with other element averages reported within the same
interval.
bdl = below detection limit
Table 5 - Drill Hole Collar Table
Hole number Easting MGA94z50 Northing MGA94z50 AHD Depth (m) Collar dip Azimuth (magnetic)
22AMC004 487642 7666557 480 160 -60 90
----------------- ------------------ ---- ---------- ----------- -------------------
22AMC005 487565 7666570 480 160 -60 90
----------------- ------------------ ---- ---------- ----------- -------------------
22AMC006 487502 7666559 480 160 -60 90
----------------- ------------------ ---- ---------- ----------- -------------------
22AMC007 487412 7666563 480 170 -60 90
----------------- ------------------ ---- ---------- ----------- -------------------
Hancock Project
Competent Person's Statements - Hancock Project
The information in this report that relates to the Hancock
Mineral Resources is based on information compiled by Mr Howard
Baker, a Competent Person who is a Fellow of the Australasian
Institute of Mining and Metallurgy and is employee by Baker
Geological Services Ltd. Mr Baker has sufficient experience
relevant to the style of mineralisation and type of deposit under
consideration and to the activity which they are undertaking to
qualify as a Competent Person as defined in the 2012 edition of the
Australasian Code for the Reporting of Exploration Results, Mineral
Resources, and Ore Reserves (JORC Code). Mr Baker consents to the
disclosure of information in this report in the form and context in
which it appears.
Mr 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 Practice Leader. In
his time at SRK, he focused on the management of Mineral Resource
Estimates with a strong focus on technical quality management and
compliance 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 iron ore 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 has extensive global experience in the geology and
Mineral Resource Estimation of iron ore projects and worked as a
mine geologist and specialist resource geologist in the iron ore
Pilbara district of Western Australia.
The information in this report relating to Ore Reserves is based
on information compiled by Mr Jeremy Peters, a Director of Burnt
Shirt Pty Ltd, a Fellow of The Australian Institute of Mining and
Metallurgy (AUSIMM) and Chartered Professional Geologist and Mining
Engineer of that organisation who has sufficient experience which
is relevant to the style of mineralisation and type of deposit
under consideration and to the activity that he is undertaking, to
qualify as Competent Person as defined in the 2012 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves". Mr. Peters consents to the inclusion
in the document of the information in the form and context in which
it appears.
Material Information for Mineral Resources
Mineral Resource Estimation Summary
This updated Mineral Resource Estimate was completed by Baker
Geological Services Ltd ("BGS"), being an independent external
consultancy to the Company. The Mineral Resource Statement has been
classified by Competent Person, Howard Baker (FAusIMM(CP)) in
accordance with guidelines contained in the JORC Code. Mr Baker of
BGS has visited the Hancock Project site and observed the local
outcropping geology and exploration activities. As such, BGS has
relied upon their own observations as well as on information
supplied by the Company for previous exploration activities and the
QA/QC practices adopted. The Mineral Resource Statement has an
effective date of 24 March 2023. Mineral Resources that are not
Mineral Reserves have no demonstrated economic viability. BGS and
Alien are not aware of any factors (environmental, permitting,
legal, title, taxation, socioeconomic, marketing, political, or
other relevant factors) that have materially affected the Mineral
Resource Estimate.
The Mineral Resource Estimate covers three prospects within the
tenement boundary. These are Sirius Extension, Ridge C and Ridge
E.
Geology and Geological Interpretation
The Hancock Project is located some 20km northwest of the town
of Newman in Western Australia. This area is part of the world
class Hammersley Province, dominated by a sedimentary basin located
between the Yilgarn and Pilbara Cratons. The Hammersley Group rock
unit, located within the Hammersley Province, hosts the
economically significant West Australia iron ore deposits at
locations such as Tom Price, Paraburdoo, Hope Downs and Newman.
The Hamersley iron deposits were formed during the deformation
process by hydrothermal enrichment of the pre-existing BIFs, when
hot, saline, basinal fluids were squeezed out of the sedimentary
pile and expelled along active structural pathways. Where these
fluids came into contact with the BIFs, they dissolved away silica,
oxidised the magnetite to martite, and replaced the intervening
chert layers with porous platy hematite. The resulting low-silica
'martite-microplaty haematite' ore is typical of the Brockman
Formation iron deposits. A more hydrated, martite-goethite ore is
also common in the Marra Mamba, near the base of the sequence. And
the upper zones of ore bodies may also be weathered to a pure
goethite ore.
The tenement area consists of a series of low east / west
running rocky ridge lines separated by shallow valleys. The area
has been structurally deformed with the presence of numerous fold
hinges, some isoclinal, but all trending east/west with a shallow
(<34deg) plunge.
Most of the ridge lines consist of BIF which is part of the
Weeli Wolli Formation. The Weeli Wolli Formation is described as a
thick succession of jaspilite, shale, and dolerite overlying the
Brockman Iron Formation. The iron formations stand out as ridges on
which there is some exposure, but the intervening shale and
dolerite are rarely exposed.
Drilling Techniques
Sirius Extension
Drilling completed by Alien Metals (16 RC holes / 1,481m and 1
core hole / 124m) and Volta Mining (4 RC holes / 475m). Upper
portions of the deposits are well drilled on a 80m x 40m grid with
wider spaced drilling at depth and further along strike. Drilling
was dominantly at -60o towards the south or north. The majority of
holes were downhole surveyed by various methods and collars located
by contracted or mine surveyors. The RC holes are 5 1/4 " nominal
diameter and the core hole was HQ size.
Ridge C and Ridge E
The Ridge C resource model contains 88 RC holes and 1 core hole
for 2,856m and 33m respectively. The Ridge E resource model relies
upon 85 RC holes for 3,167m of drilling. Holes are on a nominal 40m
x 40m spacing and drilled at -60o towards the north utilising a 5
11/4" drill hole with regular down hole surveys and collar
locations picked up by licensed surveyors where practicable.
Sampling Techniques, Sub-sampling Techniques, Sample Preparation
and Analysis
RC sampling of a 3kg split from the bulk sample was commonly
done with assay by XRF methods at certified laboratories located in
Perth.
HQ core was sawn in half and one half was sent for assay.
Sampling of core was commonly to 1m intervals and occasionally to
intervals of geological interest. Quality control data was included
in all drill programs. A review of the QAQC data found analytical
results to be satisfactory and suitable for inclusion in the
resource estimation.
Mineral Resource Estimation
The domain coded drill hole data was used in a geostatistical
study that enabled Ordinary Kriging ("OK") to be used as the main
interpolation method. The results of the geostatistical study were
used 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.
Grades of Fe, Al2O3, SiO2, P, LOI, MnO and P were interpolated
into the empty block model. An Inverse Distance Weighting ("IDW")
algorithm was used for the Cap at Sirius Extension and Fe was also
interpolated using IDW in all other domains as a check
estimate.
Downhole gamma data were used to assign density to the Ridge and
Sirius domains using a moisture correction factor. At present,
moisture assays are not available for the project and as such, a
correction factor has been selected based on the analysis of
moisture by a Certified laboratory from samples derived from Ridge
C of 6% moisture.
The average corrected density value for Ridge C and E is 2.74
g/cm3 and at Sirius Extension, 2.5 g/cm3. No correction has been
made for the Cap or fresh and oxidised domains due to the lack of
moisture data.
At Sirius Extension, it is worth noting that the density data
stops at the location of the interpreted water table and at the
approximate contact of the high/low SiO2 domains. It is possible
that density will increase above the current average of 2.5 g/cm3
within the high SiO2 domain. In the absence of other data however,
the conservative approach has been taken using the raw caliper
adjusted downhole gamma data.
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.
Mineral Resource Classification
The Project has been classified as containing Indicated and
Inferred Mineral Resources. No Measured Mineral Resources have been
assigned due to limitations in the data such as limited density
data and absent (accurate) validation drilling data to confirm the
quality of the RC data used in the MRE. However, infill drilling at
Ridge C and E is now on a density in places that allows a robust
geological model to be created with excellent continuity between
sections. In addition, a bulk sample collected at Ridge C confirms
the location of high-grade material, although not representative of
the overall resource grade.
BGS has also completed a site visit to the Project and observed
the mineralisation in the field. The addition of the topographic
survey and aerial photography has also allowed an extra level of
detail to be applied in the modelling.
As such, portions of the Ridge C and E prospects have been
classified as an Indicated Mineral Resource with Sirius Extension
remaining in the Inferred category. No additional drilling has been
completed at Sirius Extension since the completion of the maiden
MRE and the twin drilling and density data acquired for this update
has not improved the understanding of the model.
Indicated Mineral Resource have been assigned to Ridge C and E
based on the following criteria:
-- Ridge C "Main" high-grade zone only
-- Ridge E "Main" and "Upper" high-grade zones only
-- High-grade domains only, being considered the material of potential economic viability
-- An average distance between samples used of less than 75 m
-- The number of samples used to estimate grade being a minimum of 8, and
-- A slope of regression greater than 0.6.
-- All material outside of the high-grade zones has not been
classified as it is believed the low grade prevents the material to
be of economic interest.
-- Figure 6 and Figure 7 show the classified Ridge C and E and
Sirius Extension classified models.
Figure 6 - Ridge C and E classification. (Source: BGS)
Figure 7 - Sirius Extension classification. (Source: BGS)
To determine the final Mineral Resource Statement, the model has
been subjected to an optimisation exercise to determine the
proportion of the material defined that has a reasonable prospect
of eventual economic extraction ("RPEEE") via open pit mining
methods, as defined in the JORC Code, 2012 edition. The
optimisation was carried out by independent consultants Mining
Plus. In addition, Mining Plus undertook an audit of the MRE
carried out by BGS with no material issues identified.
The optimisation was based on the Indicated and Inferred
mineralised high-grade BIF material only.
The interpretation of the word 'eventual' in this context
relates to a bulk commodity where it is reasonable to envisage
'eventual economic extraction' as covering time periods of more
than 50 years.
This represents the material considered by BGS to have
reasonable prospects for eventual economic extraction
potential.
Figure 8 and Figure 9 shows the final classified Mineral
Resources within the optimised pit shells.
Figure 8 - Ridge C and E Indicated and Inferred Mineral Resource
within the optimised pit shell. 100 m grid shown. (Source: BGS)
Figure 9 - Sirius Extension Inferred Mineral Resource within the
optimised pit shell. (Source: BGS)
All material being reported lies within the tenement boundary
although it is noted that at the Sirius Extension prospect, the
optimisation was allowed to extend beyond the tenement
boundary.
Figure 10 shows the Inferred resources coloured by tenement
status. The material coloured red is the material that lies outside
of the tenement boundary, that has been excluded from the MRS. This
equates to 0.2 Mt.
Figure 10 - Sirius Extension Inferred Mineral Resource within
the optimised pit shell. Coloured by tenement status. (Source:
BGS)
Grade Tonnage Curves
Grade - tonnage curve for the Ridge C and E Indicated material
is shown in Figure 12. The curve shows the relationship between the
modelled tonnage and grade at increasing Fe cut-offs, with a steep
drop in tonnes above a cut-off of approximately 58% Fe.
Figure 12 - Ridge C and E Grade Tonnage Curve for the Indicated
Material only. (Source: BGS)
Grade - tonnage curve for the Ridge C and E Inferred material is
shown in 13. The curve shows the relationship between the modelled
tonnage and grade at increasing Fe cut-offs, with a steep drop in
tonnes above a cut-off of approximately 58% Fe.
Figure 13 - Ridge C and E Grade Tonnage Curve for the Inferred
Material only. (Source: BGS)
Grade - tonnage curve for the Sirius Extension Inferred material
is shown in Figure 14. The curve shows the relationship between the
modelled tonnage and grade at increasing Fe cut-offs, with a steep
drop in tonnes above a cut-off of approximately 57% Fe.
Figure 14 - Sirius Extension Grade Tonnage Curve for the
Inferred Material only. (Source: BGS)
JORC CODE TABLE 1
Section 1 Sampling Techniques and Data
(Criteria listed in the preceding section also apply to this
section.)
Table 6 - JORC Code, Sampling Techniques and Data
Criteria JORC Code explanation
Sampling
techniques * Nature and quality of sampling (e.g. cut channels, * Industry standard sampling techniques have been
random chips, or specific specialized industry applied at the Project.
standard measurement tools appropriate to the
minerals under investigation, such as down hole gamma
sondes, or handheld XRF instruments, etc.). These * Reverse circulation drilling was used to obtain 1 m
examples should not be taken as limiting the broad samples.
meaning of sampling.
* A tri-cone splitter at the cyclone was used to
* Include reference to measures taken to ensure sample provide two samples splits and a bulk sample per
representivity and the appropriate calibration of any metre.
measurement tools or systems used.
* When water was produced by the hole, samples were
* Aspects of the determination of mineralisation that continued to be taken with care to get as
are Material to the Public Report. representative a sample per meter as possible. Water
was expelled after rod change to reduce the amount of
water in the ensuing samples. All efforts were made
* In cases where 'industry standard' work has been done to ensure representative samples in wet conditions
this would be relatively simple (e.g.). In other were taken. Notes were made on logging sheets for
cases, more explanation may be required, such as large volumes of water to ensure interpretation was
where there is coarse gold that has inherent sampling consistent in the holes. 1 m samples were taken in
problems. Unusual commodities or mineralisation types the majority of every hole unless obvious non iron
(e.g. submarine nodules) may warrant disclosure of ore bearing lithology was identified, such as
detailed information. associated dolerite mainly in the ridge area in the
west of the project.
------------------------------------------------------------ ------------------------------------------------------------
Drilling
techniques * Drill type (e.g. core, reverse circulation, open-hole * 1 x Schramm track mounted T450 Reverse Circulation
hammer, rotary air blast, auger, Bangka, sonic, etc.) (RC) drill machine, rated to 350 m RC with 6.0 m
and details (e.g. core diameter, triple or standard pullback, 4" rod string, on--board 350psi / 900 cfm
tube, depth of diamond tails, face-sampling bit or compressor was used for all drilling done by IOCA.
other type, whether core is oriented and if so, by
what method, etc.).
* A Hurricane 636 Booster for extra air was also
available and used when required for deeper holes to
ensure consistent sample quality.
* The phase 4 RC drill programme was completed by Egan
drilling using ED250 (EDR01) drill rig.
* Two Twin diamond drill holes were completed by Top
Drive using an UDR1200HC rig.
* IOCA do not have the specifics of the RC drill rig
used by Volta in 2013 available but can confirm it
was RC method.
------------------------------------------------------------ ------------------------------------------------------------
Drill sample
recovery * Method of recording and assessing core and chip * Where sample recovery was deemed to be less than the
sample recoveries and results assessed. average a note was made on the logging sheets.
* Measures taken to maximise sample recovery and ensure * Where very little sample was recovered in a meter
the representative nature of the samples. interval this was noted on log sheet.
* Whether a relationship exists between sample recovery * Where water was deemed a factor to sample recovery
and grade and whether sample bias may have occurred this was noted on the log sheet.
due to preferential loss/gain of fine/coarse
material.
* Every meter was sampled directly from a tri-cone
splitter into a pre-labelled calico sample bag
mounted on the rig cyclone. Any additional splitting
was carried out at the analysis laboratory.
* 96% of samples were taken dry, with any wet samples
being recorded on the rig log sheet.
* The cyclone was air flushed to clean after each
6-metre run to minimise contamination.
* IOCA completed two diamond drill holes in an attempt
to verify the accuracy of the RC drilling. One drill
hole each was completed at Ridge C and at Sirius
Extension. BGS did not observe the diamond drilling
but has been informed by IOCA that strict supervision
was not in place at the time and as such, low core
recovery rates were left unchallenged during the
drilling.
* The diamond drilling has not been used in the MRE
update with the exception of the verification study
described below.
* At Ridge C, RC drill hole AM21RC001_006 was twinned
with AMHD004 and drill hole AM21RC002_008 was twinned
with AMHD003 at Sirius Extension.
* The average core recovery recorded at Ridge C
(AMHD004) is 58% within the high-grade zone and 65%
below the high-grade zone. All drilling was above the
water table. At Sirius Extension (AMHD003), the
average core recovery was 74%, varying from 76% above
the water table and 72%, below the water table.
* Due to the poor core recovery within the two diamond
drill holes, it is hard to categorically determine if
any bias has been introduced through the application
of RC drilling, such as loss of high-grade fines or
clay fines. However, some observations can be made.
------------------------------------------------------------ ------------------------------------------------------------
Logging
* Whether core and chip samples have been geologically * Main lithology for each meter logged along with notes
and geotechnically logged to a level of detail to on visible hematite or magnetite or other.
support appropriate Mineral Resource estimation,
mining studies and metallurgical studies.
* Chip trays of RC samples were taken and photographed.
* Whether logging is qualitative or quantitative in
nature. Core (or costean, channel, etc.) photography. * Diamond drill core photographed.
* The total length and percentage of the relevant * Logging mainly qualitative in nature.
intersections logged.
* Early logging in some cases logged clay rather than
BIF where BIF appears dominant lithology.
* RQD logging completed on the two diamond drill holes
This data has not been verified.
------------------------------------------------------------ ------------------------------------------------------------
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * Tri-cone splitter attached to cyclone produced 2
and sample half or all core taken. samples for laboratory submission plus larger
preparation remaining fraction per meter drilled.
* If non-core, whether riffled, tube sampled, rotary
split, etc. and whether sampled wet or dry. * If sample interval was not deemed necessary for
laboratory submission, the sample was left on site
for later collection.
* For all sample types, the nature, quality and
appropriateness of the sample preparation technique.
* 1 in 20 average field duplicates taken.
* Quality control procedures adopted for all
sub-sampling stages to maximise representivity of * Certified Reference Samples also inserted on a 1 in
samples. 20 sample average.
* Measures taken to ensure that the sampling is * Laboratory sample preparation was to dry and
representative of the in-situ material collected, pulverize.
including for instance results for field
duplicate/second-half sampling.
* Diamond drill holes cut and assayed at ALS
laboratories. The diamond data has not been used in
* Whether sample sizes are appropriate to the grain the model update with exception of verifying the
size of the material being sampled. quality of the RC data.
------------------------------------------------------------ ------------------------------------------------------------
Quality of
assay data * The nature, quality and appropriateness of the * Intertek Genalysis, Perth, used for sample
and assaying and laboratory procedures used and whether preparation and analysis, Basic Iron Ore Package/XRF
laboratory the technique is considered partial or total. single point LOI analysis method.
tests
* For geophysical tools, spectrometers, handheld XRF * Laboratory also used Certified Reference Materials
instruments, etc., the parameters used in determining and/or in-house controls, blanks and replicates
the analysis including instrument make and model, analysed with each batch of samples with these
reading times, calibrations factors applied and their quality control results reported along with the
derivation, etc. sample values in the final report.
* Nature of quality control procedures adopted (e.g. * Industry Standard CRM's from Geostats PTY Ltd, Perth
standards, blanks, duplicates, external laboratory were inserted 1 in 20 samples on average.
checks) and whether acceptable levels of accuracy
(i.e. lack of bias) and precision have been
established. * Duplicate samples from the drilling inserted on
average 1 in 20 samples
* Acceptable levels of accuracy obtained from all QA/QC
results.
------------------------------------------------------------ ------------------------------------------------------------
Verification
of sampling * The verification of significant intersections by * 4 historic drill holes drilled by Volta Mining in
and assaying either independent or alternative company personnel. 2013 included in this work were tested by a twin RC
drill hole traversing across the line of Volta
drilling.
* The use of twinned holes.
* All data managed into central excel database.
* Documentation of primary data, data entry procedures,
data verification, data storage (physical and
electronic) protocols. * All data verified for errors.
* Discuss any adjustment to assay data. * No adjustment to laboratory assay data done.
------------------------------------------------------------ ------------------------------------------------------------
Location of
data points * Accuracy and quality of surveys used to locate drill * Differential GPS used to locate and survey drill hole
holes (collar and down-hole surveys), trenches, mine collars.
workings and other locations used in Mineral Resource
estimation.
* High resolution topographic survey acquired for area
at accuracy of 20 cm with strong correlation existing
* Specification of the grid system used. between the DGPS collars and the topographic surface.
* Quality and adequacy of topographic control.
------------------------------------------------------------ ------------------------------------------------------------
Data spacing
and * Data spacing for reporting of Exploration Results. * Drill Spacing is variable.
distribution
* Whether the data spacing, and distribution are o Sirius Extension = approximately 50 to 100 m
sufficient to establish the degree of geological and section spacing with on fence spacing from
grade continuity appropriate for the Mineral Resource 30 to 50 m.
and Ore Reserve estimation procedure(s) and o Ridge C = variable but dominantly 50 m x 50 m.
classifications applied. o Ridge E = variable but dominantly 50 m x 50 m.
* Single meter sample intervals in all drilling.
* Whether sample compositing has been applied.
* Single meter analysis of all samples.
* No sample composites generated for sampling and
assaying purposes.
------------------------------------------------------------ ------------------------------------------------------------
Orientation
of data in * Whether the orientation of sampling achieves unbiased * No bias indicated through the drill orientation.
relation to sampling of possible structures and the extent to
geological which this is known, considering the deposit type.
structure * Where possible drill holes drilled as perpendicular
to assumed geological units to ensure minimum
* If the relationship between the drilling orientation sampling bias.
and the orientation of key mineralised structures is
considered to have introduced a sampling bias, this
should be assessed and reported if material.
------------------------------------------------------------ ------------------------------------------------------------
Sample
security * The measures taken to ensure sample security. * Samples secured in sealed bags from sample location
to laboratory with secure storage facilities in
Newman and in Perth.
------------------------------------------------------------ ------------------------------------------------------------
Audits or
reviews * The results of any audits or reviews of sampling * Drilling reported here based on four RC drilling
techniques and data. programs, the initial program managed by 3rd party
consultants with later phases being managed by IOCA
personnel.
* Company recruited Exploration Manager managed the
second to fourth drilling phases and tied in any
outstanding survey and geological issues from the
phase one program managed by 3rd party contractors.
* Same drilling company and drillers used for phase one
to three (Three Rivers Drilling) with phase four
operated by Egan drilling.
------------------------------------------------------------ ------------------------------------------------------------
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this
section.)
Table 7 - JORC Code, Reporting of Exploration Results
Criteria JORC Code explanation
Mineral
tenement * Type, reference name/number, location and ownership * The Hancock Project lies within the E47/3953 tenement
and land including agreements or material issues with third and is approximately 20 km north of Newman in the
tenure status parties such as joint ventures, partnerships, East Pilbara region of Western Australia.
overriding royalties, native title interests,
historical sites, wilderness or national park and
environmental settings. * A heritage survey has been completed [[Coles &
Chisholm, 2014] in the northeast corner of the
exploration tenure (approximately 19ha), in and
* The security of the tenure held at the time of around the area proposed for mining for the Sirius
reporting along with any known impediments to prospect. No heritage sites were identified.
obtaining a licence to operate in the area.
* Significant surveys have been completed adjacent to
the Mineral Prospect, particularly on behalf of BHP
and Hamersley Iron, with a range of registered sites
identified. The closest site is Kalgan Creek.
* It is anticipated that the level of heritage sites
will be moderate, however, can be managed through
either an avoidance or approval under Section 18 of
the Aboriginal Heritage Act 1972. [or alternative
approval instrument once the Aboriginal Cultural
Heritage Act 2021 has been fully implemented]. This
is not considered a constraint to mining.
* The area is within the registered Native Title claim
of the Nyiyaparli People (WC2005/006), administered
by the Karlku Nyiyaparli Aboriginal Corporation
(KNAC). The group has executed a range of Indigenous
Land Use Agreements through the area with a range of
mining companies in the area, including BHP Billiton
(WI2012/005), Hamersley Iron P/L (Rio Tinto)
(WI2012/007) and FMG (WI2016/003). As part of the
mining lease and miscellaneous licence applications,
a Native Title Agreement will be expected to be
entered into with KNAC and considering the
corporation's experience with mining activities in
the area, this is not considered a constraint to
mining.
* Nine species of national conservation significance
may occur in the region, of which five have the
potential to occur in the tenement area (being the
Northern Quoll, Ghost Bat, Greater Bilby, Pilbara
Leaf-nosed Bat and Olive Python). Vegetation and
landscape would dictate that the Bats are unlikely to
either forage or nest in areas proposed for mining.
Mining can occur in a manner to minimise the impact
on any other species (if they occur); however, the
location and size of the project would consider the
significance and risk is low.
* The area has limited diversity from a floristic
standpoint, with limited species known to occur in
the area, of which none are considered Threatened
under the Biodiversity Conservation Act 2016 or
Matters of National Environmental Significance (MNES)
under the Environment Protection and Biodiversity
Conservation Act 1999. Flora and Vegetation is not
considered a constraint in this project.
* No conservation reserves or environmentally
significant areas are located within the vicinity of
the proposal area.
--------------------------------------------------------------- ------------------------------------------------------------------
Exploration
done by * Acknowledgment and appraisal of exploration by other * The Mineral Resource Estimate includes 4 drill holes
other parties parties. completed by Volta Mining in 2013. This accounts for
32% of the drill data available at the Sirius
Extension prospect with all historic holes being
located on a single fence line.
--------------------------------------------------------------- ------------------------------------------------------------------
Geology
* Deposit type, geological setting and style of * The tenement area consists of a series of low
mineralisation. east/west running rocky ridge lines separated by
shallow valleys. The area has been structurally
deformed with the presence of numerous fold hinges,
some isoclinal, but all trending east/west with a
shallow (
* Most of the ridge lines consist of Banded Iron which
is part of the Weeli Wolli Formation. The Weeli Wolli
Formation is described as a thick succession of
jaspilite, shale, and dolerite overlying the Brockman
Iron Formation. The iron formations stand out as
ridges on which there is some exposure, but the
intervening shale and dolerite are rarely exposed.
--------------------------------------------------------------- ------------------------------------------------------------------
Drill hole
Information * A summary of all information material to the * IOCA undertook Reverse Circulation (RC) drilling at
understanding of the exploration results including a the project between January 2021 and June 2022. Two
tabulation of the following information for all diamond drill holes were completed in January to
Material drill holes: February 2022.
o easting and northing of * The drill hole information is tabulated in Appendix 1
the drill hole collar (addendum to main report).
o elevation or RL (Reduced
Level - elevation above sea
level in metres) of the drill * The table below summarises the number of drill holes,
hole collar and total metres of drilling completed at each
o dip and azimuth of the hole prospect along with the number of Fe assays collected
o down hole length and interception from the 1m samples. An equal number of assays was
depth generated for all other elements as part of the XRF
o hole length. suite.
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the * All drill holes were drilled at an orientation to
understanding of the report, the Competent Person target as perpendicular an intercept to the BIF as
should clearly explain why this is the case. possible.
--------------------------------------------------------------- ------------------------------------------------------------------
Data
aggregation * In reporting Exploration Results, weighting averaging * No data aggregation methods have been used in the
methods techniques, maximum and/or minimum grade truncations reporting of the exploration results.
(e.g. cutting of high-grades) and cut-off grades are
usually Material and should be stated.
* Where aggregate intercepts incorporate short lengths
of high-grade results and longer lengths of low-grade
results, the procedure used for such aggregation
should be stated and some typical examples of such
aggregations should be shown in detail.
* The assumptions used for any reporting of metal
equivalent values should be clearly stated.
--------------------------------------------------------------- ------------------------------------------------------------------
Relationship
between * These relationships are particularly important in the * All drill holes were drilled at an orientation to
mineralisation reporting of Exploration Results. target as perpendicular an intercept to the BIF as
widths and possible.
intercept
lengths * If the geometry of the mineralisation with respect to
the drill hole angle is known, its nature should be
reported.
* If it is not known and only the down hole lengths are
reported, there should be a clear statement to this
effect (e.g. 'down hole length, true width not
known').
--------------------------------------------------------------- ------------------------------------------------------------------
Diagrams
* Appropriate maps and sections (with scales) and * Appropriate images have been put in the main body of
tabulations of intercepts should be included for any the report.
significant discovery being reported These should
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional
views.
--------------------------------------------------------------- ------------------------------------------------------------------
Balanced
reporting * Where comprehensive reporting of all Exploration
Results is not practicable, representative reporting
of both low and high-grades and/or widths should be
practised to avoid misleading reporting of
Exploration Results.
--------------------------------------------------------------- ------------------------------------------------------------------
Other
substantive * Other exploration data, if meaningful and material, * IOCA has completed tenement scale mapping and grab
exploration should be reported including (but not limited to): sampling.
data geological observations; geophysical survey results;
geochemical survey results; bulk samples - size and
method of treatment; metallurgical test results; bulk * In total, 161 samples have been collected and
density, groundwater, geotechnical and rock analysed. Eight ridges (A to H) have been identified
characteristics; potential deleterious or and sampled. BGS visited all ridges and general
contaminating substances. sample locations during the site visit.
* The figure below shows the location of the grab
samples and mapped ridges.
--------------------------------------------------------------- ------------------------------------------------------------------
Further
work * The nature and scale of planned further work (e.g. * IOCA plan to continue mapping and grab sampling with
tests for lateral extensions or depth extensions or test pits recommended in areas of identified
large-scale step-out drilling). high-grade from grab samples.
* Diagrams clearly highlighting the areas of possible * Further confirmatory diamond drilling is required to
extensions, including the main geological assess for any bias introduced through RC drilling.
interpretations and future drilling areas, provided
this information is not commercially sensitive.
* A suggested infill programme has been provided for
the Sirius Extension prospect. This consists of 11
drill holes for 1000 m of drilling.
--------------------------------------------------------------- ------------------------------------------------------------------
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2,
also apply to this section.)
Table 9 - JORC Code, Estimation and Reporting of Mineral
Resources
JORC Code explanation
Criteria
Database * Measures taken to ensure that data has not been * All data has been validated to check for gross errors
integrity corrupted by, for example, transcription or keying with original assay certificates being supplied by
errors, between its initial collection and its use IOCA.
for Mineral Resource estimation purposes.
* Minor transcript errors identified were reported to
* Data validation procedures used. IOCA with corrective measures taking place.
* Regular database updates were provided throughout the
drilling and assaying programme so that continual
monitoring could be carried out.
------------------------------------------------------------ ------------------------------------------------------------------
Site * Comment on any site visits undertaken by the * Mr Howard Baker of BGS visited the project in May
visits Competent Person and the outcome of those visits. 2022. All ridges were visited and existing drill pads
inspected.
* If no site visits have been undertaken indicate why
this is the case.
------------------------------------------------------------ ------------------------------------------------------------------
Geological * Confidence in (or conversely, the uncertainty of) the * Based on the work undertaken and the statistical
interpretation geological interpretation of the mineral deposit. validation steps carried out, BGS is confident that
the geological model created honours the
understanding of the local scale geology and
* Nature of the data used and of any assumptions made. weathering / alteration controlled grade distribution
as accurately as possible given the current data
available.
* The effect, if any, of alternative interpretations on
Mineral Resource estimation.
* At Ridge C and E, continuous units of high-grade
mineralisation have been modelled, greatly enhanced
* The use of geology in guiding and controlling Mineral by the acquisition of a high resolution topographic
Resource estimation. surface and Worldview 2 aerial imagery. Ridge C and E
contain three modelled zones of high-grade
mineralisation each with a "main" zone lying as the
* The factors affecting continuity both of grade and middle high-grade stratigraphic horizon within each
geology. ridge. The upper and lower high-grade zones at each
ridge are less continuous and supported by less data.
* At Sirius Extension, a single high-grade BIF domain
has been modelled with an overlying low grade cap.
The high-grade BIF unit has been split into high and
low SiO(2) domains based on a statistical review.
However, the grade distribution allowing accurate
modelling to take place is hampered below the water
table where limited diamond twin drilling highlights
possible grade smearing within the dominant RC data.
* At Ridge C and Ridge E, the dip of the BIF unit was
inferred from the ridge topography and the onsite
observations with a shallow dip of 15 to 20 deg used.
* At Sirius Extension, a steeply dipping BIF unit was
created based on the HW / FW contacts with the
assumption that the unit forms part of syncline
extended from the neighbouring licence and where a
resource has previously been reported.
* An overlying weathered cap has been created at Sirius
Extension. This is based on logging and geochemical
data where an increase in LOI, AL(2) O(3) is observed
along with a decrease in Fe.
------------------------------------------------------------ ------------------------------------------------------------------
Dimensions * The extent and variability of the Mineral Resource * Sirius Extension = 450 m strike by 60 m width by 150
expressed as length (along strike or otherwise), plan m down dip
width, and depth below surface to the upper and lower
limits of the Mineral Resource.
* Ridge C = 1,200 m strike by up to 12 m width /
thickness by 150 m down dip
* Ridge E = 1,500 m strike by up to 10 m width /
thickness by 80 m down dip
------------------------------------------------------------ ------------------------------------------------------------------
Estimation * The nature and appropriateness of the estimation * At Sirius Extension and Ridge C and E, geostatistical
and technique(s) applied and key assumptions, including studies were undertaken to determine appropriate
modelling treatment of extreme grade values, domaining, estimation parameters.
techniques interpolation parameters and maximum distance of
extrapolation from data points. If a computer
assisted estimation method was chosen include a * Due to the limited data at Ridge C and E, all
description of computer software and parameters used. high-grade material was combined into a single
high-grade domain at each ridge for geostatistical
studies. The oxidised and fresh BIF domains across
* The availability of check estimates, previous Ridge C and E were treated as single domains for the
estimates and/or mine production records and whether geostatistical studies. For Sirius Extension,
the Mineral Resource estimate takes appropriate geostatistical studies were completed for the
account of such data. individual high and low SiO(2) domains.
* The assumptions made regarding recovery of * A primary search ellipse of 100 m by 50 m by 10 m was
by-products. used with a minimum of 4 samples and a maximum of 12
samples at Sirius Extension and a minimum of 4
samples and a maximum of 16 samples at Ridge C and E.
* Estimation of deleterious elements or other non-grade Samples were limited to 4 per drill hole at Ridge C
variables of economic significance (e.g. Sulphur for and E and 3 per drill hole Sirius Extension.
acid mine drainage characterization).
* At Sirius Extension, estimation was completed within
* In the case of block model interpolation, the block the cap domain and the high / low SiO(2) domains with
size in relation to the average sample spacing and each domain treated as a separate estimate with drill
the search employed. hole data coded accordingly.
* Any assumptions behind modelling of selective mining * At Ridge C and E, estimation was completed within the
units. individual high-grade BIF, oxidised BIF and Fresh BIF
domains.
* Any assumptions about correlation between variables.
* Modelling and grade estimation was undertaken in
Leapfrog Edge.
* Description of how the geological interpretation was
used to control the resource estimates.
* A composite length of 2 m was used at Sirius
Extension and the raw 1 m sample length was used at
* Discussion of basis for using or not using grade Ridge C and E with no compositing.
cutting or capping.
* Fe, SiO(2) , Al(2) O(3) , P, MnO and LOI were
* The process of validation, the checking process used, estimated into the model using Ordinary Kriging.
the comparison of model data to drill hole data, and
use of reconciliation data if available.
* Fe was also estimated using an Inverse Distance
Weighting algorithm.
* The average distance of samples to estimate the block
grade was between 40 and 70m.
* At Sirius Extension, a block size of 20 m X by 10 m Y
by 10 m Z was used with sub-cells of 2.5 m in the X
direction and 1.25 m in the Y and Z direction. This
is less than the sample spacing in the X direction.
* At Ridge C and E, a block size of 20 m X by 5 m Y by
2 m Z was used with sub-cells of 5 m in the X
direction and 1.25 m in the Y and 1 m in the Z
direction. This is less than the sample spacing in
the X direction.
* No assumptions have currently been made regarding the
SMU.
* Grade correlation has been used in the modelling and
domaining strategies with statistical checks
primarily on the F and SiO2 being used to guide the
interpretation. No regression-based assumptions have
been applied to the estimated model.
* The geological interpretation was used to guide the
orientation of the search ellipse used in the
estimate.
* No top capping has been applied due to the homogenous
nature of the mineralisation.
* Visual and statistical validation checks have been
completed comparing the input sample grades and the
output block model grades. No bias has been observed.
Checks were also completed on the number of blocks
estimated in each estimation run and the average
distance of the samples used to estimate the block
grade.
* No reconciliation data is available.
------------------------------------------------------------ ------------------------------------------------------------------
Moisture * Whether the tonnages are estimated on a dry basis or * Tonnage is assumed to be on a dry basis using
with natural moisture, and the method of moisture corrected downhole gamma density data.
determination of the moisture content.
* The moisture content is based on the results from a
bulk sample which are not considered appropriate at
this stage.
* No moisture analysis has been completed to date but
is recommended as an inclusion in all future drill
programmes.
------------------------------------------------------------ ------------------------------------------------------------------
Cut-off * The basis of the adopted cut-off grade(s) or quality * No cut-off has been used in the reporting of the
parameters parameters applied. Mineral Resource with an open pit optimisation being
applied to determine the material with reasonable
prospects for eventual economic extraction potential.
* The high-grade material, being the focus of the
Mineral Resource Statement was modelled at an
approximate 58% Fe cut-off.
------------------------------------------------------------ ------------------------------------------------------------------
Mining * Assumptions made regarding possible mining methods, * An open pit operation has been assumed with an
factors minimum mining dimensions and internal (or, if optimisation study being completed to enable the
or applicable, external) mining dilution. It is always reporting of the Mineral Resource Statement. The
assumptions necessary as part of the process of determining optimisation was undertaken by Mining Plus.
reasonable prospects for eventual economic extraction
to consider potential mining methods, but the
assumptions made regarding mining methods and * At Sirius Extension, the optimisation was allowed
parameters when estimating Mineral Resources may not to
always be rigorous. Where this is the case, this extend beyond the tenement limits. All classified
should be reported with an explanation of the basis material lying outside of the tenement limits was
of the mining assumptions made. excluded from the final resource statement.
------------------------------------------------------------ ------------------------------------------------------------------
Metallurgical * The basis for assumptions or predictions regarding * IOCA collected a bulk sample from Ridge C for
factors metallurgical amenability. It is always necessary as testwork at ALS Metallurgy Services ("ALS") in Perth.
or part of the process of determining reasonable The metallurgical testwork program was conducted on a
assumptions prospects for eventual economic extraction to single composite sample formed from five separate
consider potential metallurgical methods, but the samples. All material was collected from a single
assumptions regarding metallurgical treatment drill pad.
processes and parameters made when reporting Mineral
Resources may not always be rigorous. Where this is
the case, this should be reported with an explanation * The location of the bulk sample was from the drill
of the basis of the metallurgical assumptions made. pad of RC drill hole AM21RC001_006 and diamond twin
AMHD004.
* The results of the testwork are summarised in the ALS
report, "Metallurgical Testwork conducted upon Iron
Ore Samples from the Hamersley Iron Ore Projects for
Alien Metals Limited". Report No. A23194, May 2022.
The results of the testwork were also summarised in a
news release dated 16 June 2022.
* The bulk sample showed the material to have a 9.7%
lump and 90.3% fines content.
* BGS notes that a single composite sample has been
collected for the Project, with all material coming
from the same drill pad on Ridge C and averaging
62.7% Fe. The resource grade currently averages 60.3%
Fe and as such, the bulk sample collected is not
considered representative of the resource grade.
Further bulk sample testwork is therefore recommended
to ensure representative grade is tested and to
assess the lump / fines split across both Ridge C and
E and the Sirius Extension prospect.
------------------------------------------------------------ ------------------------------------------------------------------
Environmental * Assumptions made regarding possible waste and process * BGS and IOCA are not aware of any factors
factors residue disposal options. It is always necessary as (environmental, permitting, legal, title, taxation,
or part of the process of determining reasonable socio-economic, marketing, political, or other
assumptions prospects for eventual economic extraction to relevant factors) that have materially affected the
consider the potential environmental impacts of the Mineral Resource Estimate.
mining and processing operation. While at this stage
the determination of potential environmental impacts,
particularly for a greenfields project, may not
always be well advanced, the status of early
consideration of these potential environmental
impacts should be reported. Where these aspects have
not been considered this should be reported with an
explanation of the environmental assumptions made.
------------------------------------------------------------ ------------------------------------------------------------------
Bulk * Whether assumed or determined. If assumed, the basis * Downhole gamma data was used to assign density to the
density for the assumptions. If determined, the method used, Ridge and Sirius domains. For this, a moisture
whether wet or dry, the frequency of the measurements correction factor is required to adjust the raw
, caliper adjusted downhole gamma data. This can be
the nature, size and representativeness of the based on moisture content from twin diamond drill
samples. holes where a specific moisture assay has been
carried out. At present, moisture assays are not
available for the project and as such, a correction
* The bulk density for bulk material must have been factor has been selected based on the bulk sample
measured by methods that adequately account for void collected at Ridge C. ALS determined a 6% moisture
spaces (vugs, porosity, etc.), moisture and content for the bulk sample. This is however not
differences between rock and alteration zones within deemed accurate due to the time taken between
the deposit. collection and analysis and the various handling
steps required. The bulk sample was also open to the
elements for a period of time. However, in the
* Discuss assumptions for bulk density estimates used absence of other data, the 6% correction has been
in the evaluation process of the different materials. used. This can only be applied to the high-grade
zones and BGS notes that the application of the
moisture content from a sample at Ridge C, may not be
representative of the Ridge E and Sirius Extension
high-grade material.
* The average corrected density value for Ridge C and E
high-grade BIF is 2.74 g/cm(3) and at Sirius
Extension, 2.5 g/cm(3) . No correction has been made
for the Cap or fresh and oxidised domains due to the
lack of moisture data.
* Fresh BIF has been assigned a density of 3.12 g/cm(3)
and oxidised BIF a density of 2.58 g/cm(3) . The
Sirius Extension cap has been assigned a density of
2.94 g/cm(3) .
* At Sirius Extension, it is worth noting that the data
stops at the location of the interpreted water table
and at the approximate contact of the high / low
SiO(2) domains. It is possible that density will
increase above the current average of 2.5 g/cm(3)
within the high SiO(2) domain. In the absence of
other data however, the conservative approach has
been taken using the raw caliper adjusted downhole
gamma data. BGS does not consider it appropriate to
use the average Ridge value density at present until
further ore characterisation studies have been
completed.
* BGS recommends that future diamond drilling campaigns
analyse for moisture content.
------------------------------------------------------------ ------------------------------------------------------------------
Classification * The basis for the classification of the Mineral * The Project has been classified as containing
Resources into varying confidence categories. Indicated and Inferred Mineral Resources. No Measured
Mineral Resources have been assigned due to
limitations in the data such as limited density data
* Whether appropriate account has been taken of all and absent (accurate) validation drilling data to
relevant factors (i.e. relative confidence in confirm the quality of the RC data used in the MRE.
tonnage/grade estimations, reliability of input data, However, infill drilling at Ridge C and E is now on a
confidence in continuity of geology and metal values, density in places that allows a robust geological
quality, quantity and distribution of the data). model to be created with excellent continuity between
sections. In addition, a bulk sample collected at
Ridge C confirms the location of high-grade material,
* Whether the result appropriately reflects the although not representative of the overall resource
Competent Person's view of the deposit. grade.
* BGS has also completed a site visit to the Project
and observed the mineralisation in the field. The
addition of the topographic survey and aerial
photography has also allowed an extra level of detail
to be applied in the modelling. As such, a portion of
the Ridge C and E prospects have been classified as
an Indicated Mineral Resource with Sirius Extension
remaining in the Inferred category. No additional
drilling has been completed at Sirius Extension since
the completion of the maiden MRE and the twin
drilling and density data acquired for this update
have not improved the understanding of the model.
* Indicated Mineral Resource have been assigned to
Ridge C and E based on the following criteria:
o Ridge C "Main" high-grade
zone only
o Ridge E "Main" and "Upper"
high-grade zones only
o High-grade domains only,
being considered the material
of potential economic viability
o An average distance between
samples used of less than
75 m
o The number of samples used
to estimate grade being a
minimum of 8, and
o A slope of regression greater
than 0.6.
* All material outside of the high-grade zones has not
been classified as it is believed the low grade
prevents the material to be of economic interest.
* This represents the material considered by BGS to
have reasonable prospects for eventual economic
extraction potential.
------------------------------------------------------------ ------------------------------------------------------------------
Audits * The results of any audits or reviews of Mineral * Prior to undertaking the optimisation study, Mining
or Resource estimates. Plus audited the Mineral Resource Estimate completed
reviews by BGS.
------------------------------------------------------------ ------------------------------------------------------------------
Discussion * Where appropriate a statement of the relative * Based on the work undertaken and the statistical
of accuracy and confidence level in the Mineral Resource validation steps carried out, BGS is confident that
relative estimate using an approach or procedure deemed the geological model created honours the
accuracy/ appropriate by the Competent Person. For example, the understanding of the local scale geology and
confidence application of statistical or geostatistical weathering / alteration controlled grade distribution
procedures to quantify the relative accuracy of the as accurately as possible given the current data
resource within stated confidence limits, or, if such available.
an approach is not deemed appropriate, a qualitative
discussion of the factors that could affect the
relative accuracy and confidence of the estimate. * At Ridge C and E, continuous units of high-grade
mineralisation have been modelled, greatly enhanced
by the acquisition of a high resolution topographic
* The statement should specify whether it relates to surface and Worldview 2 aerial imagery. Ridge C and E
global or local estimates, and, if local, state the contain three modelled zones of high-grade
relevant tonnages, which should be relevant to mineralisation each with a "main" zone lying as the
technical and economic evaluation. Documentation middle high-grade stratigraphic horizon within each
should include assumptions made and the procedures ridge. The upper and lower high-grade zones at each
used. ridge are less continuous and supported by less data.
* These statements of relative accuracy and confidence * At Sirius Extension, a single high-grade BIF domain
of the estimate should be compared with production has been modelled with an overlying low-grade cap.
data, where available. The high-grade BIF unit has been split into high and
low SiO(2) domains based on a statistical review.
However, the grade distribution allowing accurate
modelling to take place is hampered below the water
table where limited diamond twin drilling highlights
possible grade smearing within the dominant RC data.
* The slope of regression has been used as a guide to
assess the quality of the grade estimate with a slope
of regression value approaching a value of 1 being
deemed a high-quality estimate. The mean slope of
regression values for the project are low to moderate,
being 0.77 and 0.83 within the Ridge C and E Main
domains.
* The slope of regression results for the Sirius
Extensions High and Low SiO(2) domains have values of
0.36 and 0.43. This is however a factor of the depth
extent of the model and poor data support with depth.
In areas supported by drill data, a value of 0.6 is
shown.
* Overall, the dimensions and volumes of the BIF
packages are robust although changes to the overall
geometry can be expected with further drilling.
* Given the quantity of data at Ridge C and Ridge E,
the estimate can be considered reasonable on a local
scale, especially in areas of Indicated resource
classification. global estimates.
* At the Sirius Extension prospect further confirmatory
drilling is required to assess the grade variability
and the density. As such, given the Inferred resource
category, Sirius Extension is considered accurate to
a global scale only.
------------------------------------------------------------ ------------------------------------------------------------------
Ore
Reserve Estimation Summary and Modifying Factors
Mining
Burnt Shirt contemplates that IOCA's Hancock project will be
operated as a conventional Australian Pilbara open pit
truck-and-shovel iron ore mining operation. Production areas are to
be prepared by first clearing and stockpiling overburden for later
rehabilitation use.
Figure 15 - preliminary site layout
Following site preparation, the pit outline is to be drilled and
blasted to form a bench surface. For the purposes of this study,
Burnt Shirt has assumed the use of a 120t-class or similar-sized
excavator.
Drill and blast is to progress on 8m benches, with mining
undertaken at 2m flitch resolution. A 2m flitch height was chosen
to reflect the relatively thin, flat-lying nature of the Ridge C
and Ridge E mineralisation.
Burnt Shirt has assumed that haulage is to be undertaken by
articulated off-road haul trucks of 60t class.
Ore is to be hauled from the pits to a mobile crushing and
screening plant.
It may be possible to partially backfill mine voids with waste
and process rejects, thereby reducing rehabilitation obligations.
Burnt Shirt considers this to be an operational decision, to be
made as mining progresses and as working areas allow.
From the crushing and screening plant, ore is to be hauled to a
stockpile near the Great Northern Highway for loading onto
quadruple road trains for haulage to the port of Port Hedland for
direct-ship sale.
Grade control is to be undertaken by blasthole sampling, with
ore and waste blocks defined by the production geologist or
engineer. The flat-lying nature of the mineralisation on Ridge C
and Ridge E allows removal of waste bands with a bulldozer, as is
practised at nearby iron ore mines in similar geology.
Operators are to be supplied by the mining contractor and mine
supervision by IOCA employees. Personnel will operate on a
predominantly fly-in-fly-out roster, accommodated in commercial
quarters in the nearby town of Newman.
Mine design
Methodology
A mining model was prepared from the Mineral Resource [1] model
supplied by IOCA by the design subcontractor.
The mining model was imported into open pit optimisation
software utilising a Lerchs-Grossman algorithm to produce
incremental pit shells based on a variable product price.
The selected pit shells were used to design pits using mine
design software.
Mining model
The following steps were undertaken on the Mineral Resource
model to derive the mining model:
-- The model was regularised to selective mining unit (SMU)
blocks of 5m x 5m x 2m at Ridge C and Ridge E and 5m x 5m x 2.5m to
reflect the steeper geology at Sirius (Constrained).
Burnt Shirt cross-checked the mining and Mineral Resource models
at a nominal cut-off grade of 57% Fe and generated a comparison of
the Mineral Resource and mining models. Iron ore SMU's are
typically relatively large (>10m x 10m x 5m) in flat-lying
Pilbara deposits but the relatively small volume and selective
mining at the Hancock Project require smaller SMU's.
Pit optimisation
A pit optimisation was conducted by Snowden Mining Industry
Consultants Ltd, of Perth) (Snowden) using appropriate mining
software that utilises a Lerchs-Grossman algorithm. Parameters were
advised variously by IOCA, Burnt Shirt or calculated by the
algorithm.
Parameters and modifying factors
Resource classification
Only Mineral Resources classified as being Indicated were used
in the base case pit optimisation. A scenario was run, testing the
inclusion of Inferred Mineral Resources and unclassified material
to inform the mining inventory.
Boundaries
The Exploration Licence boundary was superimposed on the Sirius
(Constrained) optimisation. The behaviour of the optimisation
indicates that it would extend onto the Brockman tenement, were
this to be made available.
Geotechnical constraints
Slope angles used in the pit optimisation were informed by
previous experience in the area and included in the pit design
parameters. The overall slope angle applied to lower elevations was
reduced to account for ramps and blocks were combined to reduce the
slope estimation error.
Dilution and mining recovery
Based on the size and selectivity of the proposed mining
equipment, Snowden modified the Mineral Resource model by
re-blocking to a SMU of 5m x 5m x 1m. This was undertaken to model
selective mining of the ore by bulldozing waste from the top of pre
blocks.
The Mineral Resource has been modelled as a bulk mining
proposition and this re-blocking to the Burnt Shirt SMU results in
negligible dilution, indicatively <5%. No additional dilution or
mining recovery factors were applied.
Processing rate
A processing rate of 1.25 million dry tonnes per annum (Mdt/a)
was used in the optimisation, as advised by IOCA.
Processing recovery
Processing is to be through a mobile crushing and screening
plant. A 100% recovery has been assumed for the purposes of the Ore
Reserve.
Reference mining costs
The mining cost reference was applied at the crest of each pit
(Ridge C, Ridge E and Sirius (Tenement Boundary Constrained). The
optimisation software applied an incremental mining cost for
depth.
Mining inventory and infrastructure
Burnt Shirt generated a mining inventory for scheduling, by pit.
This mining inventory is inclusive of the Ore Reserve and is not to
be conflated with an Ore Reserve. A mining inventory has no
definition under the JORC Code and its absolute economic viability
has not been demonstrated. The mining inventory comprises that
proportion of the Inferred Mineral Resource that reports to a pit
optimisation but is excluded from inclusion in an Ore Reserve by
its classification. Its financial viability has not been
demonstrated and it is premised on both Indicated and Inferred
Resources and unclassified mineralisation.
Schedule
Methodology
The LOM schedule was completed by Snowden using its proprietary
Evaluator scheduling software. This is a Mixed Integer Linear
programming-based tool with the objective of maximisation net
present value, within a given tolerance, for the defined
constraints of physical quantity and grade.
The schedule went through several iterations, the primary
constraint being to maintain production rate at a grade above 60%
Fe while maintaining a saleable Si% + Al% product (Si% + Al% <
11%).
The schedule was directed to mine the highest margin Indicated
Resource material first, followed by Inferred Resource and
unclassified material to fulfil production requirements of 1.25
Mtpa. This has resulted in mining commencing at Ridge C, then
concurrently with Ridge E before progressing to Sirius
(Constrained).
Burnt Shirt considers that the addition of Indicated Resources
at Sirius (Constrained) would have a significant upwards effect on
the Reserve profile in both grade and volume.
The selected schedule contemplates a minimum 60.75% Fe
constraint.
Parameters and constraints
Material types and schedule inventory
The mining model was coded with material types to allow
selective ore and waste scheduling, utilising stockpiles to
maintain product parameters at times when the mine is orebody
constrained
Estimation and Reporting of Ore Reserves
(Criteria listed in section 1, and where relevant in sections 2
and 3, also apply to this section.)
Table 10 - JORC Code, Estimation and Reporting of Ore
Reserves
Criteria JORC Code explanation Commentary
Mineral Resource estimate Description of the The Mineral Resource
for conversion to Ore Mineral Resource estimate supporting the Ore Reserve
Reserves used as a basis for estimate is the September
the conversion to an 2022 Independent Mineral
Ore Reserve. Resource Estimate for
Clear statement as the Hancock Iron Project,
to whether the Mineral Pilbara Region, WA
Resources are reported prepared
additional to, or inclusive by Howard Baker of Baker
of, the Ore Reserves. Geological Service of
Cardiff.
Mineral Resources are
inclusive of the ore
Reserve
============================================================ ===========================
Site visits Comment on any site The Competent Person
visits undertaken by visited the site in
the Competent Person October 2022
and the outcome of those
visits.
If no site visits have
been undertaken indicate
why this is the case.
============================================================ ===========================
Study status The type and level The Competent Person
of study undertaken considers that the project
to enable Mineral Resources is at a Preliminary
to be converted to Ore Feasibility
Reserves. (Pre-Feasibility)
The Code requires that stage, as defined by
a study to at least the JORC Code.
Pre-Feasibility Study The Competent Person
level has been undertaken has made recommendations
to convert Mineral Resources relating to work required
to Ore Reserves. Such for a Feasibility Study
studies will have been
carried out and will
have determined a mine
plan that is technically
achievable and economically
viable, and that material
Modifying Factors have
been considered.
============================================================ ===========================
Cut-off parameters The basis of the cut-off Product parameters and
grade(s) or quality penalties are determined
parameters applied. by the offtake agreement
and discussed in Section
5.3 above . These have
been automatically applied
by the pit optimisation
and mine scheduling
software to honour product
specification as closely
as possible.
============================================================ ===========================
Mining factors or The method and assumptions The mining method is
assumptions used as reported in to be conventional Pilbara
the Pre-Feasibility open pit truck-and-shovel
or Feasibility Study iron ore mining, utilising
to convert the Mineral a backhoe configuration
Resource to an Ore Reserve excavator and articulated
(i.e. either by application all-terrain trucks.
of appropriate factors This technique and
by optimisation or by selection
preliminary or detailed of all-terrain trucks
design). is considered to be
The choice, nature appropriate in relation
and appropriateness to the scale of the
of the selected mining operation and rugged
method(s) and other topography.
mining parameters including Geotechnical parameters
associated design issues are assumed at this
such as pre-strip, access, stage, based on
etc. geotechnical
The assumptions made parameters in similar
regarding geotechnical iron ore pits in the
parameters (e.g. pit immediate vicinity.
slopes, stope sizes, The Mineral Resource
etc), grade control model has been reblocked
and pre-production drilling. to 5m x 5m x 2m for
The major assumptions Ridges C and E and 5m
made and Mineral Resource x 5m x 2.5m for the
model used for pit and Sirius (Constrained)
stope optimisation (if mineralisation in an
appropriate). attempt to model dilution
The mining dilution and ore loss. This
factors used. reflects
The mining recovery selective mining and
factors used. the use of a bulldozer
Any minimum mining to separate shale bands
widths used. from the ore.
The manner in which Minimum mining widths
Inferred Mineral Resources were set at 30m, but
are utilised in mining in practice this is
studies and the sensitivity likely to be less, given
of the outcome to their the relatively flat-lying
inclusion. nature of the
The infrastructure mineralisation.
requirements of the Infrastructure is minimal,
selected mining methods. the project being reliant
on contract, temporary
infrastructure.
============================================================ ===========================
Metallurgical factors The metallurgical process Metallurgy assumes that
or assumptions proposed and the appropriateness all of the Ore Reserve
of that process to the reports to product,
style of mineralisation. which is not unreasonable
Whether the metallurgical in a bulk iron ore mining
process is well-tested operation, where
technology or novel metallurgical
in nature. losses are likely to
The nature, amount be negligible.
and representativeness The cash flow model
of metallurgical test has corrected the
work undertaken, the scheduled
nature of the metallurgical product grades for
domaining applied and penalties,
the corresponding metallurgical as per the offtake
recovery factors applied. contract.
Any assumptions or The mine scheduling
allowances made for software is a mixed
deleterious elements. integer linear programming
The existence of any algorithm that has used
bulk sample or pilot the product specifications
scale test work and to drive its results.
the degree to which Bulk samples have been
such samples are considered taken and evaluated
representative of the and the Competent Person
orebody as a whole. is satisfied that these,
For minerals that are while preliminary,
defined by a specification, indicate
has the ore reserve that the majority of
estimation been based the product will report
on the appropriate mineralogy to the fines fraction.
to meet the specifications? The Competent Person
has recommended further
metallurgical study
to determine behaviour
in the crushing and
screening plant and
lump-fines split.
============================================================ ===========================
Environmental The status of studies Environmental licensing
of potential environmental and studies are
impacts of the mining progressing
and processing operation. and the Competent Person
Details of waste rock sees no apparent
characterisation and obstructions
the consideration of to licensing commensurate
potential sites, status with estimation of a
of design options considered Probable ore Reserve
and, where applicable,
the status of approvals
for process residue
storage and waste dumps
should be reported.
============================================================ ===========================
Infrastructure The existence of appropriate The Hancock project
infrastructure: availability lies near the major
of land for plant development, iron ore mining town
power, water, transportation of Newman where sufficient
(particularly for bulk support infrastructure
commodities), labour, is available on contract
accommodation; or the to support the proposed
ease with which the operation as an operating
infrastructure can be cost.
provided, or accessed.
============================================================ ===========================
Costs The derivation of, Costs have been derived
or assumptions made, from preliminary budget
regarding projected quotations from
capital costs in the contractors
study. and supported by the
The methodology used Competent Person's
to estimate operating internal
costs. estimates.
Allowances made for The costs, exchange
the content of deleterious rates and revenues used
elements. in the financial model
The source of exchange have been advised by
rates used in the study. IOCA and the Competent
Derivation of transportation Person considers them
charges. to be reasonable for
The basis for forecasting a Pre-Feasibility Study.
or source of treatment
and refining charges,
penalties for failure
to meet specification,
etc.
The allowances made
for royalties payable,
both Government and
private.
============================================================ ===========================
Revenue factors The derivation of, Revenues and product
or assumptions made penalties have been
regarding revenue factors advised by IOCA based
including head grade, on preliminary offtake
metal or commodity price(s) agreements and have
exchange rates, transportation been incorporated into
and treatment charges, the mine schedule and
penalties, net smelter financial model. The
returns, etc. Competent Person considers
The derivation of assumptions them to be reasonable
made of metal or commodity for a Pre-Feasibility
price(s), for the principal Study.
metals, minerals and
co-products.
============================================================ ===========================
Market assessment The demand, supply The product is subject
and stock situation to a preliminary agreement
for the particular commodity, with a customer to accept
consumption trends and up to 3Mt of product
factors likely to affect annually. The mine
supply and demand into schedule
the future. contemplates 1.25Mt
A customer and competitor of production annually
analysis along with after the ramp-up period.
the identification of The Competent Person
likely market windows observes that the iron
for the product. ore market is buoyant
Price and volume forecasts at the time of Ore Reserve
and the basis for these estimation and makes
forecasts. no forecasts as to the
For industrial minerals future price of the
the customer specification, product beyond that
testing and acceptance indicated by the customer.
requirements prior to The mine schedule
a supply contract. indicates
that the operation can
supply product to within
the customer's minimum
specification.
============================================================ ===========================
Economic The inputs to the economic The financial analysis
analysis to produce used the results of
the net present value the mine schedule to
(NPV) in the study, inform the financial
the source and confidence model and the Competent
of these economic inputs Person observes that
including estimated the operation is
inflation, discount profitable
rate, etc. on the condition that
NPV ranges and sensitivity the mining inventory
to variations in the is mined along with
significant assumptions the Ore Reserve.
and inputs. The Competent Person
is satisfied that these
parameters correspond
to the confidence
expressed
in a Pre-Feasibility
Study.
============================================================ ===========================
Social The status of agreements Licencing has not been
with key stakeholders completed and the
and matters leading Competent
to social licence to Person notes that the
operate. proposed operation is
in an iron ore mining
region, with adjacent
iron ore mining operations
and does not see any
impediment to licensing.
============================================================ ===========================
Other To the extent relevant, The Competent Person
the impact of the following does not identify any
on the project and/or material natural risks.
on the estimation and The offtake agreements
classification of the and project licensing
Ore Reserves: are at a negotiation
* Any identified material naturally occurring risks. stage and the Ore Reserve
is conditional on these
being fulfilled.
* The status of material legal agreements and marketing The Competent Person
arrangements. does not see any
impediment
to legal or offtake
* The status of governmental agreements and approvals agreements.
critical to the viability of the project, such as
mineral tenement status, and government and statutory
approvals. There must be reasonable grounds to expect
that all necessary Government approvals will be
received within the timeframes anticipated in the
Pre-Feasibility or Feasibility study. Highlight and
discuss the materiality of any unresolved matter that
is dependent on a third party on which extraction of
the reserve is contingent.
============================================================ ===========================
Classification The basis for the classification The Ore Reserve has
of the Ore Reserves been classified as
into varying confidence Probable,
categories. with an implied accuracy
Whether the result of +/-35% based on the
appropriately reflects Indicated Resource and
the Competent Person's Pre-Feasibility status
view of the deposit. of the Modifying Factors.
The proportion of Probable The Ore Reserve is
Ore Reserves that have contingent
been derived from Measured upon all of the attendant
Mineral Resources (if mining inventory being
any). mined.
============================================================ ===========================
Audits or reviews The results of any There has been no audit
audits or reviews of or review of the Ore
Ore Reserve estimates. Reserve other than Burnt
Shirt's engagement of
an independent Peer
Reviewer.
============================================================ ===========================
Discussion of relative Where appropriate a The Ore Reserve has
accuracy/ confidence statement of the relative been classified as
accuracy and confidence Probable,
level in the Ore Reserve with an implied accuracy
estimate using an approach of +/-35% based on the
or procedure deemed Indicated Resource and
appropriate by the Competent Pre-Feasibility status
Person. For example, of the Modifying Factors.
the application of statistical The Ore Reserve is
or geostatistical procedures contingent
to quantify the relative upon all of the attendant
accuracy of the reserve mining inventory being
within stated confidence mined.
limits, or, if such
an approach is not deemed
appropriate, a qualitative
discussion of the factors
which could affect the
relative accuracy and
confidence of the estimate.
The statement should
specify whether it relates
to global or local estimates,
and, if local, state
the relevant tonnages,
which should be relevant
to technical and economic
evaluation. Documentation
should include assumptions
made and the procedures
used.
Accuracy and confidence
discussions should extend
to specific discussions
of any applied Modifying
Factors that may have
a material impact on
Ore Reserve viability,
or for which there are
remaining areas of uncertainty
at the current study
stage.
It is recognised that
this may not be possible
or appropriate in all
circumstances. These
statements of relative
accuracy and confidence
of the estimate should
be compared with production
data, where available.
============================================================ ===========================
Glossary
Halo - A n area of rocks surrounding mineral deposits
(orebodies) enriched in ore-forming elements.
Mineral Resource - a concentration or occurrence of solid or
liquid 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 sub-divided,
in order of increasing geological confidence, into Inferred,
Indicated and Measured categories.
Ore Reserves - the parts of a Mineral Resource that can, at
present, be economically mined
Mining Schedule -the sequencing of operations and the assignment
of equipment and people, to ensure that the intended sequencing and
production targets are realized
Mineral resource classification - is the classification of
mineral resources based on an increasing level of geological
knowledge and confidence.
Mining Proposal - A document submitted to the local state
authority for approval by the Department of Mines, Industry
Regulation and Safety (DMIRS), that is required before any mining
operations can commence.
Mt - Million Tonnes
Moz - Million Ounces
Koz - thousand Ounces
ozt - Troy Ounces
g/t - Grams per Tonne
Pt - Platinum
Pd - Palladium
Rh - Rhodium
Cu - Copper
Ni - Nickel
Au - Gold
Ag - Silver
Pb - Lead
Zn - Zinc
Co - Cobalt
CR - Chronium
NiEq - Nickel Equivalent
AuEq - Gold Equivalent
PGM - Platinum Group Metals
3PGE - Platinum, Palladium, Gold
FID - Financial Investment Decision
[1] Baker, 2022
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