AIM: MARL Suite 102, 3 Eden Street North Sydney, NSW 2060 25 July 2016 Australia
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Mariana Reports Increased High Grade Gold-Copper Resource and Maiden Zinc Resource at the Hot Maden Project, NE Turkey.
Indicated (100% basis): 2.79 Million Oz Gold + 166,000 Tonnes Cu (3.43 Million Oz Au equivalent**) Inferred (100% basis): 375,000 Oz Gold + 17,000 Tonnes Cu (439,000 Oz Gold Equivalent**), and Zinc Zone- Indicated (100% basis): 11,600 Tonnes Zinc Inferred (100% basis): 114,000 Tonnes Zinc
Mariana Resources Ltd ('Mariana' or 'the Company'), the AIM listed exploration and development company with projects in Turkey and South America, is pleased to announce the results of an Updated Mineral Resource estimate for the high grade gold-copper ('Au-Cu') Hot Maden Project ('HM'), eastern Turkey (Figure 1). The Updated Mineral Resource estimate has been prepared by independent mining consultants RungePincockMinarco Limited ('RPM'), and was based on assay results received for drill holes up to, and including HTD-62 as of June 22, 2016, and is reported in accordance with the JORC Code 2012 edition and estimated by a Competent Person as defined by the JORC Code. Drilling to date has been completed by our 70% JV partner Lidya Madencilik Sanayi ve Ticaret A.S. ('Lidya').
Highlights:
* Significant increase in the global gold-copper resource at HM (Figures 2 & 3), with the higher confidence level Indicated Category resources rising to 3.43 Million Oz Au equivalent** and Inferred Category resources now reported at 439,000 Oz Au equivalent**. Overall resource growth has been derived from both step out drilling around main gold-copper zone together with a maiden contribution from initial drilling in the southern zone. * The Main Zone's Ultra High Grade Domain reports an impressive 2.08 Million Tonnes at an average grade of 32.7 g/t Au and 3.5% Cu (or 36.9 g/t Au equivalent*) for 2.47 Million Oz Au equivalent** in the Indicated Category. * Maiden Resource for the New Southern Zone discovery, located 300m south of the Main Zone, in the Inferred Category is 1.35 Million Tonnes at an average grade of 7.2 g/t Au and 0.7% Cu for 351,000 Oz Au equivalent** from just 17 holes to date. * Overall tonnage and grade of the Main Zone gold-copper resource (Indicated Category) has increased to 7.12 Million Tonnes and 15 g/t Au equivalent**, respectively. * A maiden resource estimate is also reported for the zinc-(lead)-only zone in the hangingwall to the Main Zone Au-Cu resource (Figure 4). At a cut-off grade of 2% Zn, Indicated and Inferred Resources of 11,600 Tonnes Zinc and 114,000 Tonnes Zinc, respectively, are reported.
Chief Executive Officer Glen Parsons today commented: 'The confidence and growth in the high grade gold-copper Hot Maden project continues to excite the Board, as well as capture market attention. Drilling to date on the project has delivered a significant increase in the Indicated Category resource at the Main Zone Au-Cu deposit, in addition to two maiden Inferred category resources at the new Southern Zone and the hangingwall zinc- (lead)-only zone.
'The upgrade in the Indicated Category resource represents a 69% increase from the August 2015 Mineral Resource estimate, and now includes an impressive 2.47 Million gold equivalent ounces with an average grade in excess of an ounce Au (and Au equivalent) per tonne. This mineralisation commences just 20m below surface. In addition, the newly discovered Southern zone has delivered a further maiden inferred resource of some 351,000 Oz gold equivalent from just 17 holes.
'To better grasp this increase, the table below compares the Main Zone Indicated Category Resource from the maiden (August 2015) Resource Estimate against this newly reported upgrade where we can see the phenomenal increase in the ounces and the confidence in category especially in the Ultra High Grade Zone:
COMPARISON OF INDICATED CATEGORY FOR THE MAIN ZONE AT HOT MADEN (2 g/t AuEq* Cut-off) (This Updated Resource Estimate to Maiden Resource estimate)
PREVIOUSLY REPORTED- Hot Maden Deposit (100% basis) August 2015 Mineral Resource Estimate +-------------+-----------------------+-------------------------------------+ | | | | | | | | | Domain | Tonnes Au Cu AuEq| Au Cu AuEq | | | | | | | t g/t % g/t*| Ounces Tonnes Ounces** | +-------------+-----------------------+-------------------------------------+ |Main Zone LG | 481,000 0.9 1.0 2.4 | 14,000 5,000 37,000 | | | | | |Main Zone HG |3,199,000 5.2 1.8 8.0 | 537,000 56,000 822,000 | | | | | |Main Zone UHG|1,031,000 29.2 4.0 35.4| 967,000 41,000 1,174,000 | +-------------+-----------------------+-------------------------------------+ | Total |4,710,000 10.0 2.2 13.4|1,518,000 102,000 2,033,000 | +-------------+-----------------------+-------------------------------------+ THIS ANNOUNCEMENT Hot Maden Deposit (100% basis)
+----------------+---------------------------+---------------------------+ | Domain | Tonnes Au Cu Zn AuEq| Au Cu AuEq | | | | | | | t g/t % % g/t*| Ounces Tonnes Ounces** | +----------------+---------------------------+---------------------------+ | Main Zone LG | 463,000 1.1 1.1 0.3 2.4 | 17,000 5,000 36,000 | | | | | | Main Zone HG |4,501,000 3.9 1.9 0.2 6.3 | 570,000 87,000 908,000 | | | | | | Main Zone UHG |2,086,000 32.7 3.5 0.1 36.9|2,195,000 73,000 2,476,000| | | | | |Mixed Gold-Zinc | 17,000 7.5 3.1 3.6 11.2| 4,000 1,000 6,000 | | | | | |Peripheral Lodes| 60,000 2.1 0.4 0.4 2.5 | 4,000 5,000 | +----------------+---------------------------+---------------------------+ | Total |7,127,000 12.2 2.3 0.2 15.0|2,790,000 166,000 3,431,000| +----------------+---------------------------+---------------------------+
'In addition, we have been consistently hitting reportable intercepts of zinc and, based on drilling to date, we now have a maiden metal inventory of 11,600T in Indicated and 114,000T in Inferred Resource categories. Whilst the focus of the JV remains on the high grade gold-copper zone, these zinc tonnages could also contribute to the overall economics of the project.
'The continuing planned drilling in the resource and southern areas represent a small portion of the 5 km long Hot Maden alteration zone (Figure 5), which displays prospective exploration and potential growth opportunity. Promisingly, further evidence of exploration potential to the north and south continues along this alteration zone with new priority areas being targeted, specifically the Old Russian Mining zone some further 500m to the south as well as up to 1.5km to the North of the main zone.'
The exciting milestones ahead, focussing on the rapid advancement and development of this world class asset, include:
* Continued drilling at Hot Maden to include both exploration and infill drilling, * The Preliminary Economic Assessment (PEA), which is due end September/ early October 2016. * The Pre-Feasibility Study (PFS), to be completed during the first half 2017. 'The Hot Maden discovery, resource milestones and defined path to ultimate production reinforces Mariana's strategy of focussed and disciplined exploration across its strategic portfolio development curve and I look forward to updating the market accordingly.
'On an operational note, at both the Hot Maden and Ergama projects, there is no impact due to recent disturbances in Turkey. Operations are continuing normally without interruption at the project with all rigs turning in order to meet the joint ventures planned milestones.'
An updated technical report on Hot Maden is in the process of being prepared in accordance with Canadian National Instrument 43-101 ('NI 43-101') standards.
Link to Figures: http://marianaresources.com/site/media/July_25_Maps.pdf
The July 2016 Mineral Resource Estimate in the applicable zones comprises:
Hot Maden Gold-Copper Project Update
Hot Maden - Main Gold-Copper Zone (2 g/t AuEq Cut-off) +--------------+--------------------------------------------------------+ | | Indicated Mineral Resource | | +----------------------------+---------------------------+ | Domain | Tonnes Au Cu Zn AuEq| Au Cu AuEq | | | | | | | t g/t % % g/t*| Ounces Tonnes Ounces** | +--------------+----------------------------+---------------------------+ | Main Zone LG | 463,000 1.1 1.1 0.3 2.4 | 17,000 5,000 36,000 | | | | | | Main Zone HG |4,501,000 3.9 1.9 0.2 6.3 | 570,000 87,000 908,000 | | | | | |Main Zone UHG |2,086,000 32.7 3.5 0.1 36.9|2,195,000 73,000 2,476,000| | | | | | Mixed Gold- | 17,000 7.5 3.1 3.6 11.2| 4,000 1,000 6,000 | | Zinc | | | | | | | | Peripheral | 60,000 2.1 0.4 0.4 2.5 | 4,000 5,000 | | Lodes | | | +--------------+----------------------------+---------------------------+ | Total |7,127,000 12.2 2.3 0.2 15.0|2,790,000 166,000 3,431,000| +--------------+----------------------------+---------------------------+
+--------------+--------------------------------------------------------+ | | Inferred Mineral Resource | | +----------------------------+---------------------------+ | Domain | Tonnes Au Cu Zn AuEq| Au Cu AuEq | | | | | | | t g/t % % g/t*| Ounces Tonnes Ounces** | +--------------+----------------------------+---------------------------+ | Main Zone LG | 395,000 1.7 0.9 0.03 2.8 | 21,000 4,000 35,000 | | | | | | Main Zone HG | 31,000 3.9 1.6 0.1 5.8 | 4,000 6,000 | | | | | |Main Zone UHG | 6,000 39.1 2.1 0.01 41.6| 7,000 8,000 | | | | | | Mixed Gold- | 4,000 1.7 0.4 2.4 2.2 | | | Zinc | | | | | | | | Peripheral | 282,000 3.2 0.9 0.1 4.3 | 29,000 2,000 38,000 | | Lodes | | | +--------------+----------------------------+---------------------------+ | Total | 718,000 2.7 0.9 0.1 3.8 | 62,000 7,000 88,000 | +--------------+----------------------------+---------------------------+
Hot Maden - Southern Gold-Copper Zone (2 g/t AuEq Cut-off) +--------------+--------------------------------------------------------+ | | Inferred Mineral Resource | | +----------------------------+---------------------------+ | Domain | Tonnes Au Cu Zn AuEq| Au Cu AuEq | | | | | | | t g/t % % g/t*| Ounces Tonnes Ounces** | +--------------+----------------------------+---------------------------+ |South Zone LG | 396,000 2.8 0.7 0.0 3.6 | 35,000 3,000 46,000 | | | | | |South Zone HG | 583,000 5.3 0.7 0.0 6.1 | 98,000 4,000 114,000 | | | | | |Main Zone UHG | 224,000 22.2 1.0 0.0 23.4| 160,000 2,000 169,000 | | | | | | Mixed Gold- | 44,000 9.0 1.0 3.2 10.2| 13,000 15,000 | | Zinc | | | | | | | | Peripheral | 104,000 1.9 0.3 0.0 2.2 | 6,000 7,000 | | Lodes | | | +--------------+----------------------------+---------------------------+ | Total |1,352,000 7.2 0.7 0.1 8.1 | 313,000 10,000 351,000 | +--------------+----------------------------+---------------------------+
Hot Maden - Hangingwall Zinc Zone (2% Zn Cut-off)
+-------+-------------------------------+ | | Indicated Mineral Resource | | +----------+-----+-----+--------+ | | Tonnes t | Zn% | Pb% | Zinc t | +-------+----------+-----+-----+--------+ | Total | 398,000 | 2.9 | 0.6 | 11,600 | +-------+----------+-----+-----+--------+
+-------+---------------------------------+ | | Inferred Mineral Resource | | +-----------+-----+-----+---------+ | | Tonnes t | Zn% | Pb% | Zinc t | +-------+-----------+-----+-----+---------+ | Total | 2,871,000 | 4.0 | 0.5 | 114,000 | +-------+-----------+-----+-----+---------+
This Updated Mineral Resource Estimate above has been compiled by Stewart Coates from RPM who also falls under the definition of Qualified Person ('QP') as defined in the Canadian National Instrument 'NI 43-101'. This resource estimate has been estimated in compliance with the CIM Definition Standards on Mineral Resources and Mineral Reserves and will be included in an updated NI 43-101 Technical Report on Hot Maden, within appropriate reporting requirements, which is in the process of being compiled. This report when complete will be filed on AIM as well as on SEDAR.
A detailed breakdown of the Total Mineral Resource estimate is given below:
Note:
1. The Statement of Estimates of Mineral Resources has been compiled under the supervision of Mr. Stewart Coates who is a part-time employee of RPM and a Member of the the Association of Professional Engineers and Geoscientists of the Province of British Columbia. Mr. Coates has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he has undertaken to qualify as a Competent Person as defined under the JORC Code which is accepted as a Foreign Code by CIM and NI 43-101.There are no material differences between the definitions of Measured, Indicated and Inferred Mineral Resources under the CIM Definition Standards and the equivalent definitions in the JORC Code. The Resource would report the same quantities to the same classifications under both the CIM Definition Standards and the JORC Code.
2. All Mineral Resources figures reported in the table above represent estimates based on drilling completed up to 22(nd) June, 2016. Mineral Resource estimates are not precise calculations, being dependent on the interpretation of limited information on the location, shape and continuity of the occurrence and on the available sampling results. The totals contained in the above table have been rounded to reflect the relative uncertainty of the estimate. Rounding may cause some computational discrepancies.
3. *Au Equivalence (AuEq) calculated using a 100 day moving average of $US1,215/ounce for Au and $US2.13/pound for Cu as of May 29, 2016. No adjustment has been made for metallurgical recovery or net smelter return as these remain uncertain at this time. Based on grades and contained metal for Au and Cu, it is assumed that both commodities have reasonable potential to be economically extractable.
a. *-The formula used for Au equivalent grade is: AuEq g/t = Au + [(Cu % x 22.0462 x 2.13)/(1215/31.1035)] and assumes 100 % metallurgical recovery.
b. **-Au equivalent ounces are calculated by mulitplying Mineral Resource tonnage by Au equivalent grade and converting for ounces. The formula used for Au equivalent ounces is: AuEq Oz = [Tonnage x AuEq grade (g/t)]/31.1035.
4. Mineral Resource grades are estimated in accordance with the JORC Code.
5. Mineral Resources are reported on a dry in-situ basis.
6. LG = low grade, HG = high grade and UHG = ultra-high grade.
7. Reported at a 2 g/t AuEq cut-off.
8. Mineral Resources referred to above, have not been subject to detailed economic analysis and therefore, have not been demonstrated to have actual economic viability.
Resource Estimate Authorship and Methodology The Mineral Resource Estimate for the Hot Maden Project was compiled under the supervision of Mr Stewart Coates, a full time employee of RPM and a Member of the Association of Professional Engineers and Geoscientists of the Province of British Columbia. The Mineral Resource Estimate was completed using the following parameters:
* A site visit was conducted by Stewart Coates (RPM) to review the project and deposit geology, drilling, sampling and QAQC procedures. The data, drilling and geological records were found to be well maintained by Lidya and comprehensive field procedures had been developed. The site visit review concluded no significant issues were identified with regards to current geological understanding and data information. * The Hot Maden Mineral Resource area extends over a north-south strike length of 670m (from 4,541,710mN - 4,542,380mN), has a maximum width of 105m (740,590mE - 740,695mE) and includes the 495m vertical interval from 885mRL to 390mRL. * Drill holes used in the Mineral Resource estimate included 52 diamond holes for a total of 3,748m within the wireframes. The database contained records for 65 drill holes for 16,455m of drilling. * Drill hole spacing is approximately 50m by 50m at the Project. Approximately 55% of current drilling is angled -60 degrees to the east, with the remaining holes angled -60 degrees to the west. Mineralisation is generally sub-vertical. * Since the commencement of drilling Lidya has implemented a consistent QAQC system utilising standards, blanks and duplicate samples. The program included the submission of one standard every 20th sample, the submission of two blanks in every assay batch and field duplicates taken every 40th sample. All standards and blanks were obtained and certified by Geostats. Duplicates were split to quarter core with a core saw. * Monitoring of standards, blanks and duplicates was undertaken by Lidya and Mariana geologists. Raw QAQC data was reviewed by RPM and results considered acceptable and suitable for use in Mineral Resource estimation. * The mineralisation was constrained by resource outlines based on mineralisation envelopes prepared using a nominal 0.5g/t Au Equivalent cut- off grade for lower grade material, 3g/t Au Equivalent for higher grade material and approximately 15g/t Au Equivalent for ultra-high grade material. All mineralisation intersections were defined with a minimum down hole width of 2m. * Samples within the wireframes were composited to even 1m intervals based on analysis of the sample lengths in the database. Top cuts were applied to the data based on statistical analysis of individual lodes. A top cut of 35g/t Au was applied within the higher grade domain (Object 101), a top cut of 175g/t Au was applied to the ultra-high grade domain (Object 102), a top cut of 20g/t Au was applied to Object 103 and a top cut of 10g/t Au was applied to Objects 2 and 3, resulting in a total of 10 samples being cut. Top cuts for the remaining elements were not required; no Au top cut was applied to the remaining lodes. * A Surpac block model was used for the estimate with a block size of 25m NS by 25m EW by 10m vertical with sub-cells of 3.125m by 3.125m by 1.25m. This was selected as the optimal block size as a result of kriging neighbourhood analysis (KNA). * Using parameters derived from modelled variograms, Ordinary Kriging (OK) was used to estimate average block grades in three passes using Surpac software. Linear grade estimation was deemed suitable for the Hot Maden Mineral Resource due to the geological control on mineralisation. Maximum extrapolation of wireframes from drilling was 50m down-dip and 50m along strike. This was equal to one drill hole spacing. Maximum extrapolation between drill sections was half drill hole spacing. Down-dip and along strike extrapolations were classified as Inferred Mineral Resource. * Bulk densities within the wireframes were calculated based on a linear regression equation between Fe grade and density measurements obtained from drill core. A bulk density of 2.85t/m(3) was assigned to waste material as a result of average core densities outside the wireframes. A bulk density of 2.20t/m(3) was assigned to overburden. * The Mineral Resource was classified as Indicated and Inferred Mineral Resource based on data quality, sample spacing, and lode continuity. The Indicated Mineral Resource was defined within areas of close spaced diamond drilling of less than 50m by 50m, and where the continuity and predictability of the lode positions was good. The Inferred Mineral Resource was assigned to areas of the deposit where drill hole spacing was greater than 50m by 50m, where small isolated pods of mineralisation occur outside the main mineralised zones, and to geologically complex zones. * The high grade nature of the mineralisation and the substantial thickness and size of the deposit suggest that the project has potential for eventual economic extraction using open pit and underground mining techniques.
**ENDS**
Competent Persons The Statement of Estimates of Mineral Resources has been compiled under the supervision of Mr Stewart Coates, who is a full time employee of RPM and a Member of the Association of Professional Engineers and Geoscientists of the Province of British Columbia. Mr. Coates has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity that he has undertaken to qualify as a Qualified Person as defined in the CIM Standards of Disclosure and as a Competent Person as defined in the JORC code (2012). Stewart Coates has consented to the inclusion in this release of the matters based on his information in the form and context in which it appears. All information relating to exploration activities has been reviewed by Eric Roth, Chief Operating Officer and Executive Director of Mariana Resources. Mr Roth holds a Ph.D. in Economic Geology from the University of Western Australia, is a Fellow of the Australian Institute of Mining and Metallurgy (AusIMM), and is a Fellow of the Society of Economic Geologists (SEG). Mr Roth has 25 years of experience in international minerals exploration and mining project evaluation.
**ENDS**
For further information please visit website at www.marianaresources.com or contact the following.
In Australia:
Glen Parsons (CEO) Mariana Resources Ltd +61 2 9437 4588
Eric Roth (COO) Mariana Resources Ltd +56 9 8818 1243
Rob Adamson RFC Ambrian Limited (Nomad) +61 2 9250 0041
Will Souter RFC Ambrian Limited (Nomad) +61 2 9250 0050
In U.K.
Oliver Stansfield Brandon Hill Capital (UK Broker) +44 20 3463 5061
Jonathan Evans Brandon Hill Capital (UK Broker) +44 20 3463 5016
Camilla Horsfall Blytheweigh (Financial PR) +44 20 7138 3224
Megan Ray Blytheweigh (Financial PR) +44 20 7138 3203
About Mariana Resources Mariana Resources Ltd is an AIM quoted exploration and development company with an extensive portfolio of gold, silver and copper projects in South America and Turkey.
Mariana's most advanced asset is the Hot Maden gold-copper project in north east Turkey, which is a joint venture with its Turkish JV partner Lidya (30% Mariana and 70% Lidya) rapidly advancing to development . A maiden mineral resource estimate of 2.03 Moz gold Equivalent (Indicated Category) and 0.97 Moz gold Equivalent (Inferred Category) (100% basis) was reported for Hot Maden on August 18, 2015. Elsewhere in Turkey, Mariana holds a 100% interest in the Ergama gold- copper project.
In southern Argentina, the Company's core gold-silver projects are Las Calandrias (100%), Sierra Blanca (100%), Los Cisnes (100%), Bozal (100%). These projects are part of a 160,000+ Ha land package in the Deseado Massif epithermal gold-silver district in mining-friendly Santa Cruz Province.
Mariana acquired 100% interests in the Doña Ines gold-silver and Exploradora East copper prospects in northern Chile through the Aegean Metals Group transaction which closed in January, 2015, with Mariana exploration now being funded by Asset Chile through the provision of $1.65m for a total 50% interest.
In Suriname, Mariana has a direct holding of 10.2% of the Nassau Gold project. The Nassau Gold Project is a 28,000 Ha exploration concession located approximately 125 km south east of the capital Paramaribo and immediately adjacent to Newmont Mining's 4.2Moz gold Merian project.
In Peru, Mariana is focusing on acquiring new opportunities which complement its current portfolio.
About Lidya Madencilik Sanayi ve Ticaret A.S. Lidya is a metal mining exploration company that has been operating in Turkey since 2009. Lidya is part of the Calik Group, one of Turkey's largest private conglomerates with activities in the areas of mining, energy, finance, construction, textiles, telecom and media. Lidya established a strategic partnership with Canadian TSX listed mining company Alacer Gold Corp in August 2009. This was the first major international partnership in the Turkish mining sector with the primary goal of discovering and developing new gold and copper mines throughout Turkey. Alacer and Lidya are 80:20 Joint Venture partners at the Cöpler Gold Mine in central-eastern Turkey, which produced 227,000 ounces of gold during 2014 at all-in cash costs of USD 695/oz.
About RungePincockMinarco RungePincockMinarco Limited (ASX: RUL) is the world's largest publicly traded independent group of mining technical experts, with history stretching back to 1968. RPM has local expertise in all mining regions and are experienced across all commodities and mining methods. Listed on the Australian Securities Exchange on 27 May 2008, RPM is a global leader in the provision of advisory consulting, technology and professional development solutions to the mining industry. RPM has global expertise achieved through their work in over 118 countries and their approach to the business of mining is strongly grounded in economic principles. RPM operates offices in 18 locations across 12 countries. Safe Harbour This press release contains certain statements which may be deemed to be forward-looking statements. These forward-looking statements are made as at the date of this press release and include, without limitation, statements regarding discussions of future plans, the realization, cost, timing and extent of mineral resource estimates, estimated future exploration expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, and requirements for additional capital. The words 'plans', 'expects', 'budget', 'scheduled', 'estimate', 'forecasts', 'intend', 'anticipate', 'believe', 'may', 'will', or similar expressions or variations of such words are intended to identify forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results to vary materially from those expressed or implied by such forward-looking statements, including, but not limited to: the effects of general economic conditions; the price of gold, silver and copper; misjudgements in the course of preparing forward-looking statements; risks associated with international operations; the need for additional financing; risks inherent in exploration results; conclusions of economic evaluations; changes in project parameters; currency and commodity price fluctuations; title matters; environmental liability claims; unanticipated operational risks; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or in the completion of development or construction activities; political risk; and other risks and uncertainties described in the Company's annual financial statements for the most recently completed financial year which is available on the Company's website at www.marianaresources.com . Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on forward- looking statements. We do not undertake to update any forward-looking statements, except in accordance with applicable securities laws.
A.: JORC Code (2012) Table 1, Sections 1, 2 and 3
Exploration results at Hot Maden were reported by MARL and released to the AIM between 2014 and 2016. Mr Eric Roth, Chief Operating Officer of MARL compiled the information in Section 1 and Section 2 of JORC Table 1 in this Mineral Resource report and is the Competent Person for those sections. RPM has included these sections in their entirety to ensure that all relevant sections of Table 1 are included in this report.
Section 1 Sampling Techniques and Data
+------------------------------------------------------------------------------+ |Criteria JORC Code explanation Commentary | +--------------------+-----------------------------+---------------------------+ |Sampling techniques | * Nature and quality of | * Lidya and MARL utilised| | | sampling (eg cut | diamond drilling. | | | channels, random chips, | Approximately 55% of | | | or specific specialised | drilling is angled -60 | | | industry standard | degrees to the east, | | | measurement tools | with the remaining | | | appropriate to the | holes angled -60 | | | minerals under | degrees to the west to | | | investigation, such as | optimally intersect the| | | down hole gamma sondes, | targeted mineralised | | | or handheld XRF | zones. | | | instruments, etc). These | * Diamond core was | | | examples should not be | sampled as half core at| | | taken as limiting the | 1m intervals or to | | | broad meaning of | geological contacts | | | sampling. | within mineralisation | | | * Include reference to | and to 2m outside of | | | measures taken to ensure | mineralisation in the | | | sample representivity and| earlier holes. | | | the appropriate | * To ensure | | | calibration of any | representative | | | measurement tools or | sampling, half core | | | systems used. | samples were always | | | * Aspects of the | taken from the same | | | determination of | side of the core and | | | mineralisation that are | the full length of each| | | Material to the Public | hole sampled. | | | Report. In cases where | * Core samples were | | | 'industry standard' work | submitted to a contract| | | has been done this would | laboratory for crushing| | | be relatively simple (eg | and pulverising to | | | 'reverse circulation | produce a 50g charge | | | drilling was used to | for fire assay for Au, | | | obtain 1 m samples from | in addition to a 33 | | | which 3 kg was pulverised| element four acid | | | to produce a 30 g charge | digestion with ICP-AES | | | for fire assay'). In | analysis. | | | other cases more | | | | explanation may be | | | | required, such as where | | | | there is coarse gold that| | | | has inherent sampling | | | | problems. Unusual | | | | commodities or | | | | mineralisation types (eg | | | | submarine nodules) may | | | | warrant disclosure of | | | | detailed information. | | +--------------------+-----------------------------+---------------------------+ |Drilling techniques | * Drill type (eg core, | * Diamond drilling was | | | reverse circulation, | carried out with HQ | | | open-hole hammer, rotary | sized equipment with | | | air blast, auger, Bangka,| standard tube, with | | | sonic, etc) and details | minor amounts of PQ | | | (eg core diameter, triple| size. | | | or standard tube, depth | | | | of diamond tails, face- | | | | sampling bit or other | | | | type, whether core is | | | | oriented and if so, by | | | | what method, etc). | | | | | | | | | | | | | | +--------------------+-----------------------------+---------------------------+ |Drill sample | * Method of recording and | * Core recoveries were | |recovery | assessing core and chip | measured and recorded | | | sample recoveries and | in the database and | | | results assessed. | recovery was generally | | | * Measures taken to | between 90 to 100% in | | | maximise sample recovery | fresh rock. | | | and ensure representative| * No relationship exists | | | nature of the samples. | between sample recovery| | | * Whether a relationship | and grade. | | | exists between sample | | | | recovery and grade and | | | | whether sample bias may | | | | have occurred due to | | | | preferential loss/gain of| | | | fine/coarse material. | | +--------------------+-----------------------------+---------------------------+ |Logging | * Whether core and chip | * All diamond drill holes| | | samples have been | were logged for | | | geologically and | recovery, geology and | | | geotechnically logged to | structure. | | | a level of detail to | * All diamond core was | | | support appropriate | photographed. | | | Mineral Resource | * All drill holes were | | | estimation, mining | logged in full. | | | studies and metallurgical| | | | studies. | | | | * Whether logging is | | | | qualitative or | | | | quantitative in nature. | | | | Core (or costean, | | | | channel, etc) | | | | photography. | | | | * The total length and | | | | percentage of the | | | | relevant intersections | | | | logged. | | +--------------------+-----------------------------+---------------------------+ |Sub-sampling | * If core, whether cut or | * Core was cut in half | |techniques and | sawn and whether quarter,| using a core saw at | |sample preparation | half or all core taken. | either 1m intervals or | | | | to geological contacts | | | * If non-core, whether | within mineralisation | | | riffled, tube sampled, | and to 2m outside of | | | rotary split, etc and | mineralisation in the | | | whether sampled wet or | earlier holes. | | | dry. | * To ensure | | | * For all sample types, the| representivity, all | | | nature, quality and | core samples were | | | appropriateness of the | collected from the same| | | sample preparation | side of the core. | | | technique. | * Sample preparation was | | | * Quality control | conducted by a contract| | | procedures adopted for | laboratory. After | | | all sub-sampling stages | drying, the sample is | | | to maximise | subject to a primary | | | representivity of | crush, then pulverised | | | samples. | to that 85% passing | | | * Measures taken to ensure | 75um. | | | that the sampling is | * Sample sizes are | | | representative of the in | considered appropriate | | | situ material collected, | to correctly represent | | | including for instance | the gold and copper | | | results for field | mineralisation based | | | duplicate/second-half | on: the style of | | | sampling. | mineralisation, the | | | * Whether sample sizes are | thickness and | | | appropriate to the grain | consistency of the | | | size of the material | intersections, the | | | being sampled. | sampling methodology | | | | and assay value ranges | | | | for Au and Cu. | +--------------------+-----------------------------+---------------------------+ |Quality of assay | * The nature, quality and | * After the sample had | |data and laboratory | appropriateness of the | been prepared by the | |tests | assaying and laboratory | laboratory a 50g split | | | procedures used and | of each sample was then| | | whether the technique is | subject to fire assay | | | considered partial or | with AAS finish for Au.| | | total. | If the sample contained| | | * For geophysical tools, | more than 500ppb Au, | | | spectrometers, handheld | the sample was re- | | | XRF instruments, etc, the| analysed using fire | | | parameters used in | assay with a | | | determining the analysis | gravimetric finish. As | | | including instrument make| and Sb were analysed | | | and model, reading times,| using AAS, in addition | | | calibrations factors | to a 33 element four | | | applied and their | acid digestion with | | | derivation, etc. | ICP-AES analysis. | | | * Nature of quality control| Samples in which ICP | | | procedures adopted (eg | analyses returned | | | standards, blanks, | greater than the | | | duplicates, external | maximum detection limit| | | laboratory checks) and | for the elements Ag (10| | | whether acceptable levels| ppm), Cu (10,000 ppm), | | | of accuracy (ie lack of | Fe (15%), Pb (10,000 | | | bias) and precision have | ppm), and Zn (10,000 | | | been established. | ppm) were reanalysed | | | | using the AAS | | | | analytical technique. | | | | * Samples from Phase I | | | | (HTD-001 to HTD-007) | | | | drilling were sent to | | | | the SGS Laboratory in | | | | Ankara, Turkey. Samples| | | | from Phase II (HTD-008 | | | | to HTD-017A) were sent | | | | to the ALS Laboratory | | | | in Izmir, western | | | | Turkey. | | | | * Sieve analysis was | | | | carried out by the | | | | laboratory to ensure | | | | the grind size of 85% | | | | passing 75um was being | | | | attained. | | | | * QAQC procedures | | | | involved the use of | | | | certified reference | | | | materials (1 in 20) and| | | | blanks (2 inserted in | | | | each assay batch). | | | | * Results were assessed | | | | as each laboratory | | | | batch was received and | | | | were acceptable in all | | | | cases. | | | | * Laboratory QAQC | | | | includes the use of | | | | internal standards | | | | using certified | | | | reference material, | | | | blanks, splits and | | | | replicates. | | | | * Certified reference | | | | materials demonstrate | | | | that sample assay | | | | values are accurate. | | | | * Umpire laboratory test-| | | | work was completed in | | | | 2015 over mineralised | | | | intersections with good| | | | correlation of results.| +--------------------+-----------------------------+---------------------------+ |Verification of | * The verification of | * Significant | |sampling and | significant intersections| intersections were | |assaying | by either independent or | visually field verified| | | alternative company | by company geologists | | | personnel. | and by Stewart Coates | | | * The use of twinned holes.| of RPM during the 2015 | | | * Documentation of primary | site visit. | | | data, data entry | * The upper (mineralised)| | | procedures, data | part of HTD-017 was | | | verification, data | redrilled with similar | | | storage (physical and | results as recoveries | | | electronic) protocols. | in the first attempt | | | * Discuss any adjustment to| were below | | | assay data. | requirements. No other| | | | twin holes were | | | | drilled, however infill| | | | drilling by Lidya and | | | | MARL has confirmed | | | | mineralisation | | | | thickness and tenor. | | | | * Primary data was | | | | collected into either | | | | an Excel spread sheet | | | | and then imported into | | | | an Access database. | | | | * Assay values that were | | | | below detection limit | | | | were adjusted to equal | | | | half of the detection | | | | limit value. | +--------------------+-----------------------------+---------------------------+ |Location of data | * Accuracy and quality of | * All drill hole collars | |points | surveys used to locate | were surveyed in UTM | | | drill holes (collar and | European Datum 1950 | | | down-hole surveys), | Zone 37 North grid | | | trenches, mine workings | system using | | | and other locations used | differential GPS. | | | in Mineral Resource | * Phase II of the | | | estimation. | drilling program (HTD- | | | * Specification of the grid| 008 to HTD-059) were | | | system used. | down hole surveyed at | | | * Quality and adequacy of | 40m intervals using a | | | topographic control. | Devico survey tool. | | | | Holes drilled in Phase | | | | I (HTD-001 to HTD-007) | | | | were not down hole | | | | surveyed. RPM observes | | | | that there is little | | | | dip movement and minor | | | | amounts of azimuth | | | | movement in the | | | | surveyed holes. | | | | * Topographic surface | | | | prepared from detailed | | | | 1m contour data. | +--------------------+-----------------------------+---------------------------+ |Data spacing and | * Data spacing for | * Nominal hole spacing of| |distribution | reporting of Exploration | drilling is | | | Results. | approximately 50m by | | | * Whether the data spacing | 50m. | | | and distribution is | * The mineralised domains| | | sufficient to establish | have sufficient | | | the degree of geological | continuity in both | | | and grade continuity | geology and grade to be| | | appropriate for the | considered appropriate | | | Mineral Resource and Ore | for the Mineral | | | Reserve estimation | Resource and Ore | | | procedure(s) and | Reserve estimation | | | classifications applied. | procedures and | | | * Whether sample | classification applied | | | compositing has been | under NI 43-101 and the| | | applied. | 2012 JORC Code. | | | | * Samples have been | | | | composited to 1m | | | | lengths using fixed | | | | length techniques for | | | | use in Mineral Resource| | | | estimation. | +--------------------+-----------------------------+---------------------------+ |Orientation of data | * Whether the orientation | * Approximately 60% of | |in relation to | of sampling achieves | current drilling is | |geological structure| unbiased sampling of | angled -60 degrees to | | | possible structures and | the west, with the | | | the extent to which this | remaining holes angled | | | is known, considering the| -60 degrees to the | | | deposit type. | east. Mineralisation is| | | * If the relationship | generally sub-vertical.| | | between the drilling | * No orientation based | | | orientation and the | sampling bias has been | | | orientation of key | identified in the data.| | | mineralised structures is| | | | considered to have | | | | introduced a sampling | | | | bias, this should be | | | | assessed and reported if | | | | material. | | +--------------------+-----------------------------+---------------------------+ |Sample security | * The measures taken to | * Chain of custody is | | | ensure sample security. | managed by Lidya and | | | | MARL. Samples were | | | | stored on site until | | | | collected for transport| | | | to SGS Laboratory in | | | | Ankara (Phase I drill | | | | program) or ALS | | | | Laboratory in Izmir | | | | (Phase II drill | | | | program). Lidya and | | | | MARL personnel have no | | | | contact with the | | | | samples once they are | | | | picked up for | | | | transport. Tracking | | | | sheets have been set up| | | | to track the progress | | | | of samples. | +--------------------+-----------------------------+---------------------------+ |Audits or reviews | * The results of any audits| * Stewart Coates of RPM | | | or reviews of sampling | reviewed drilling and | | | techniques and data. | sampling procedures | | | | during the 2015 site | | | | visit and found that | | | | all procedures and | | | | practices conform to | | | | industry standards. | +--------------------+-----------------------------+---------------------------+
Section 2 Reporting of Exploration Results
+------------------------------------------------------------------------------+ |Criteria JORC Code explanation Commentary | +--------------------+-------------------------+-------------------------------+ |Mineral tenement and| * Type, reference | * The Hot Maden Project is | |land tenure status | name/number, location| located within Turkish | | | and ownership | Operating Licence 20050853 | | | including agreements | and Exploration Licences | | | or material issues | 201200321, 201201059 and | | | with third parties | 201201058. The licences are| | | such as joint | owned by AMG Mineral | | | ventures, | Madencilik AS, a subsidiary| | | partnerships, | of Mariana Resources, and | | | overriding royalties,| are subject to an earn-in | | | native title | agreement in which Lidya | | | interests, historical| Madencilik has an option to| | | sites, wilderness or | earn in to a 70% interest | | | national park and | in the concessions. | | | environmental | * The tenements are in good | | | settings. | standing with no known | | | * The security of the | impediment to future grant | | | tenure held at the | of a mining permit. | | | time of reporting | | | | along with any known | | | | impediments to | | | | obtaining a license | | | | to operate in the | | | | area. | | +--------------------+-------------------------+-------------------------------+ |Exploration done by| * Acknowledgment and | * Historical mining at Hot | |other parties | appraisal of | Maden occurred in Ottoman | | | exploration by other | times before any official | | | parties. | records were kept. Russian | | | | mining occurred in the late| | | | 1800's and early 1900's | | | | prior to the area coming | | | | back within Turkish borders| | | | in 1921. Various geological| | | | surveys and reports | | | | completed prior to the | | | | 1990's. | | | | * Anglo Tur (subsidiary of | | | | Anglo American) drilled six| | | | holes in 1992. Data is not | | | | available. | +--------------------+-------------------------+-------------------------------+ |Geology | * Deposit type, | * The Hot Maden Project is | | | geological setting | located within the Eastern | | | and style of | Pontides tectonic belt of | | | mineralisation. | northeastern Turkey, and is| | | | hosted within a Late | | | | Cretaceous age, island arc | | | | volcanic-sedimentary | | | | sequence. Gold-copper | | | | mineralisation is broadly | | | | associated within a sub- | | | | vertical, north-northeast | | | | trending fault zone (the | | | | 'Hot Maden Fault Zone'), | | | | with mineralisation | | | | occurring in andesitic | | | | breccias and dacitic | | | | tuffaceous sediments as | | | | quartz-sulphide (pyrite- | | | | chalcopyrite) +/- | | | | hematite/jasperoid breccias| | | | and locally massive | | | | sulphides (pyrite- | | | | chalcopyrite). The highest | | | | grade Au-Cu mineralisation | | | | appears to lie along the | | | | eastern margin of the Au-Cu| | | | mineralised zone. | | | | Stratabound-style Zn-Pb | | | | (sphalerite-galena) | | | | anomalism flanks the Au-Cu | | | | zone to the east and | | | | locally to the west. | | | | Hydrothermal alteration | | | | adjacent to the Au-Cu zone | | | | is dominated by argillic | | | | and phyllic assemblages. | +--------------------+-------------------------+-------------------------------+ |Drill hole | * A summary of all | * Exploration results are not| |information | information material | being reported. A table of | | | to the under-standing| all drill hole collars with| | | of the exploration | all the listed information | | | results including a | is shown in the Appendices.| | | tabulation of the | * All information has been | | | following information| included in the | | | for all Material | appendices. No drill hole | | | drill holes: | information has been | | | | excluded. | | | * easting and | | | | northing of the | | | | drill hole collar| | | | * elevation or RL | | | | (Reduced Level - | | | | elevation above | | | | sea level in | | | | metres) of the | | | | drill hole collar| | | | * dip and azimuth | | | | of the hole | | | | * down hole length | | | | and interception | | | | depth | | | | * hole length | | | | * 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 | | | | understanding of the | | | | report, the Competent| | | | Person should clearly| | | | explain why this is | | | | the case. | | +--------------------+-------------------------+-------------------------------+ |Data aggregation | * In reporting | * Exploration results are not| |methods | Exploration Results, | being reported. | | | weighting averaging | * Not applicable as a Mineral| | | techniques, maximum | Resource is being reported.| | | and/or minimum grade | * Metal Au Equivalence (AuEq)| | | truncations (e.g. | calculated using a 100 day | | | cutting of high | moving average of | | | grades) and cut-off | $US1,215/ounce for Au and | | | grades are usually | $US2.13/pound for Cu as of | | | Material and should | May 29, 2016. No adjustment| | | be stated. | has been made for | | | * Where aggregate | metallurgical recovery or | | | intercepts | net smelter return as these| | | incorporate short | remain uncertain at this | | | lengths of high grade| time. Based on grades and | | | results and longer | contained metal for Au and | | | lengths of low grade | Cu, it is assumed that both| | | results, the | commodities have reasonable| | | procedure used for | potential to be | | | such aggregation | economically extractable. | | | should be stated and | The formula used for Au | | | some typical examples| equivalent grade is: AuEq | | | of such aggregations | g/t = Au + [(Cu% x 22.0462 | | | should be shown in | x 2.13)/(1215/31.1035)] and| | | detail. | assumes 100% metallurgical | | | * The assumptions used | recovery. Au equivalent | | | for any reporting of | ounces are calculated by | | | metal equivalent | mulitplying Mineral | | | values should be | Resource tonnage by Au | | | clearly stated. | equivalent grade and | | | | converting for ounces. The | | | | formula used for Au | | | | equivalent ounces is: AuEq | | | | Oz = [Tonnage x AuEq grade | | | | (g/t)]/31.1035. | +--------------------+-------------------------+-------------------------------+ |Relationship between| * These relationships | * Approximately 55% of | |mineralisation | are particularly | current drilling is angled | |widths and intercept| important in the | -60 degrees to the east, | |lengths | reporting of | with the remaining holes | | | Exploration Results. | angled -60 degrees to the | | | * If the geometry of | west. Mineralisation is | | | the mineralisation | generally sub-vertical. | | | 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 | * Relevant diagrams have been| | | sections (with | included within the Mineral| | | scales) and | Resource report main body | | | tabulations of | of text. | | | intercepts should be | | | | included for any | | | | 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 | * Accuracy and quality | * All collar positions have | | | of surveys used to | been surveyed with a DGPS | | | locate drill holes | system using the UTM | | | (collar and down-hole| European Datum 1950 Zone | | | surveys), trenches, | 37 North system. Half of | | | mine workings and | the drilling was down hole | | | other locations used | surveyed at 40m intervals | | | in Mineral Resource | using a Devico survey tool.| | | estimation. | Holes drilled in the first | | | * Where comprehensive | portion of the drilling | | | reporting of all | program were not down hole | | | Exploration Results | surveyed. RPM observes that| | | is not practicable, | there is little dip | | | representative | movement and minor amounts | | | reporting of both low| of azimuth movement in the | | | and high grades | surveyed holes. | | | and/or widths should | * Exploration results are not| | | be practiced to avoid| being reported. | | | misleading reporting | | | | of Exploration | | | | Results. | | +--------------------+-------------------------+-------------------------------+ |Other substantive| * Other exploration | * All interpretations for Hot| |exploration data | data, if meaningful | Maden mineralisation are | | | and material, should | consistent with | | | be reported including| observations made and | | | (but not limited to):| information gained during | | | geological | drilling at the Project. | | | observations; | | | | geophysical survey | | | | results; geochemical | | | | survey results; bulk | | | | samples - size and | | | | method of treatment; | | | | metallurgical test | | | | results; bulk | | | | density, groundwater,| | | | geotechnical and rock| | | | characteristics; | | | | potential deleterious| | | | or contaminating | | | | substances. | | +--------------------+-------------------------+-------------------------------+ |Further work | * The nature and scale | * Infill and extensional | | | of planned further | drilling is planned at | | | work (e.g. tests for | selected areas of the Hot | | | lateral extensions or| Maden Mineral Resource. | | | depth extensions or | * Refer to diagrams in the | | | large- scale step-out| body of text within the | | | drilling). | Mineral Resource report. | | | * Diagrams clearly | | | | highlighting the | | | | areas of possible | | | | extensions, including| | | | the main geological | | | | interpretations and | | | | future drilling | | | | areas, provided this | | | | information is not | | | | commercially | | | | sensitive. | | +--------------------+-------------------------+-------------------------------+
Section 3 Estimation and Reporting of Mineral Resources
+------------------------------------------------------------------------------+ |Criteria JORC Code explanation Commentary | +---------------------+-----------------------------+--------------------------+ |Database integrity | * Measures taken to ensure | * The database has been | | | that data has not been | systematically | | | corrupted by, for | validated by company | | | example, transcription or| geologists. Original | | | keying errors, between | drilling records were | | | its initial collection | compared to the | | | and its use for Mineral | equivalent records in | | | Resource estimation | the data base (where | | | purposes. | original records were | | | * Data validation | available). Any | | | procedures used. | discrepancies were | | | | noted and rectified. | | | | * All drilling data has | | | | been verified as part | | | | of a continuous | | | | validation procedure. | | | | Once a drill hole is | | | | imported into the data| | | | base a report of the | | | | collar, down-hole | | | | survey, geology, and | | | | assay data is | | | | produced. This is | | | | then checked by a | | | | company geologist and | | | | any corrections are | | | | completed. | +---------------------+-----------------------------+--------------------------+ |Site visits | * Comment on any site | * A site visit was | | | visits undertaken by the | conducted by Stewart | | | Competent Person and the | Coates of RPM during | | | outcome of those visits. | June 2015. Stewart | | | * If no site visits have | inspected the deposit | | | been undertaken indicate | area, drill core, | | | why this is the case. | outcrop and the core | | | | logging and sampling | | | | facility. During this| | | | time, notes and photos| | | | were taken. | | | | Discussions were held | | | | with site personnel | | | | regarding drilling and| | | | sampling procedures. | | | | No major issues were | | | | encountered. | | | | * A site visit was | | | | conducted, therefore | | | | not applicable. | +---------------------+-----------------------------+--------------------------+ |Geological | * Confidence in (or | * The confidence in the | |interpretation | conversely, the | geological | | | uncertainty of) the | interpretation is | | | geological interpretation| considered to be good | | | of the mineral deposit. | and is based on high | | | * Nature of the data used | quality diamond core | | | and of any assumptions | drilling. | | | made. | * Geochemistry and | | | * The effect, if any, of | geological logging has| | | alternative | been used to assist | | | interpretations on | identification of | | | Mineral Resource | lithology and | | | estimation. | mineralisation. | | | * The use of geology in | * The deposit consists | | | guiding and controlling | of sub-vertical to | | | Mineral Resource | steeply dipping, high-| | | estimation. | sulphidation | | | * The factors affecting | alteration zones | | | continuity both of grade | within a fault zone. | | | and geology. | Infill drilling has | | | | supported and refined | | | | the model and the | | | | current interpretation| | | | is considered robust. | | | | * Outcrops of | | | | mineralisation and | | | | host rocks within the | | | | Project confirm the | | | | geometry of the | | | | mineralisation. | | | | * Infill drilling has | | | | confirmed geological | | | | and grade continuity. | +---------------------+-----------------------------+--------------------------+ |Dimensions | * The extent and | * The Hot Maden Mineral | | | variability of the | Resource area extends | | | Mineral Resource | over a north-south | | | expressed as length | strike length of 670m | | | (along strike or | (from 4,541,710mN - | | | otherwise), plan width, | 4,542,380mN), has a | | | and depth below surface | maximum width of 105m | | | to the upper and lower | (740,590mE - | | | limits of the Mineral | 740,695mE) and | | | Resource. | includes the 495m | | | | vertical interval from| | | | 885mRL to 390mRL. | +---------------------+-----------------------------+--------------------------+ |Estimation and | * The nature and | * Using parameters | |modelling techniques | appropriateness of the | derived from modelled | | | estimation technique(s) | variograms, Ordinary | | | applied and key | Kriging (OK) was used | | | assumptions, including | to estimate average | | | treatment of extreme | block grades in three | | | grade values, domaining, | passes using Surpac | | | interpolation parameters | software. Linear | | | and maximum distance of | grade estimation was | | | extrapolation from data | deemed suitable for | | | points. If a computer | the Hot Maden Mineral | | | assisted estimation | Resource due to the | | | method was chosen include| geological control on | | | a description of computer| mineralisation. | | | software and parameters | Maximum extrapolation | | | used. | of wireframes from | | | * The availability of check| drilling was 50m down-| | | estimates, previous | dip and 50m along | | | estimates and/or mine | strike. This was equal| | | production records and | to one drill hole | | | whether the Mineral | spacing. Maximum | | | Resource estimate takes | extrapolation between | | | appropriate account of | drill sections was | | | such data. | half drill hole | | | * The assumptions made | spacing. Down-dip and | | | regarding recovery of by-| along strike | | | products. | extrapolations were | | | * Estimation of deleterious| classified as Inferred| | | elements or other non- | Mineral Resource. | | | grade variables of | * No mining has | | | economic significance (eg| occurred, therefore | | | sulphur for acid mine | reconciliation is not | | | drainage | possible. | | | characterisation). | * There is little As | | | * In the case of block | observed in | | | model interpolation, the | geochemical analysis | | | block size in relation to| of drilling, therefore| | | the average sample | not expected to occur | | | spacing and the search | in tailings. The | | | employed. | deposit is high- | | | * Any assumptions behind | sulphidation, so S is | | | modelling of selective | expected to occur as a| | | mining units. | result of processing | | | * Any assumptions about | waste. | | | correlation between | * Au (g/t), Cu (%), Ag | | | variables. | (g/t), Fe (%), Pb (%) | | | * Description of how the | and Zn (%) were | | | geological interpretation| interpolated into the | | | was used to control the | block model. | | | resource estimates. | * The parent block | | | * Discussion of basis for | dimensions used were | | | using or not using grade | 25m NS by 25m EW by | | | cutting or capping. | 10m vertical with sub-| | | * The process of | cells of 3.125m by | | | validation, the checking | 3.125m by 1.25m. The | | | process used, the | parent block size | | | comparison of model data | dimension was selected| | | to drill hole data, and | on the results | | | use of reconciliation | obtained from Kriging | | | data if available. | Neighbourhood Analysis| | | | that suggested this | | | | was the optimal block | | | | size for the Hot Maden| | | | dataset. | | | | * An orientated | | | | 'ellipsoid' search was| | | | used to select data | | | | and adjusted to | | | | account for the | | | | variations in lode | | | | orientations, however | | | | all other parameters | | | | were taken from the | | | | variography derived | | | | from Objects 1 and | | | | 101. Three passes were| | | | used for each domain. | | | | First pass had a range| | | | of 50m, with a minimum| | | | of 10 samples. For | | | | the second pass, the | | | | range was kept at | | | | 50m, with a minimum of| | | | 6 samples. For the | | | | final pass, the range | | | | was extended to 150m, | | | | with a minimum of 2 | | | | samples. A maximum of| | | | 30 samples was used | | | | for all 3 passes. | | | | * No assumptions were | | | | made on selective | | | | mining units. | | | | * Strong positive | | | | correlations were | | | | observed in the | | | | composite data for Cu-| | | | Ag, Fe-Ag, Cu-Fe and | | | | Pb-Zn. Moderate | | | | positive correlations | | | | were observed in the | | | | composite data for Au-| | | | Ag, Au-Cu and Au-Fe. | | | | * The mineralisation was| | | | constrained by | | | | resource outlines | | | | based on | | | | mineralisation | | | | envelopes prepared | | | | using a nominal | | | | 0.5g/t Au Equivalent | | | | cut-off grade for | | | | lower grade material, | | | | 3g/t Au Equivalent for| | | | higher grade material | | | | and approximately | | | | 15g/t Au Equivalent | | | | for ultra-high grade | | | | material. All | | | | mineralisation | | | | intersections were | | | | defined with a minimum| | | | down hole width of | | | | 2m. The wireframes | | | | were applied as hard | | | | boundaries in the | | | | estimate. | | | | * Top cuts were applied | | | | to the data based on | | | | statistical analysis | | | | of individual lodes. | | | | A top cut of 35g/t Au | | | | was applied within the| | | | higher grade domain | | | | (Object 101), a top | | | | cut of 175g/t Au was | | | | applied to the ultra- | | | | high grade domain | | | | (Object 102), a top | | | | cut of 20g/t Au was | | | | applied to Object 103 | | | | and a top cut of | | | | 10g/t Au was applied | | | | to Objects 2 and 3, | | | | resulting in a total | | | | of 10 samples being | | | | cut. Top cuts for the | | | | remaining elements | | | | were not required; no | | | | Au top cut was applied| | | | to the remaining | | | | lodes. | | | | * Validation of the | | | | model included | | | | detailed comparison of| | | | composite grades and | | | | block grades by | | | | northing and | | | | elevation. Validation| | | | plots showed good | | | | correlation between | | | | the composite grades | | | | and the block model | | | | grades. | +---------------------+-----------------------------+--------------------------+ |Moisture | * Whether the tonnages are | * Tonnages and grades | | | estimated on a dry basis | were estimated on a | | | or with natural moisture,| dry in situ basis. | | | and the method of | | | | determination of the | | | | moisture content. | | +---------------------+-----------------------------+--------------------------+ |Cut-off parameters | * The basis of the adopted | * The Mineral Resource | | | cut-off grade(s) or | has been reported at a| | | quality parameters | 2g/t Au Equivalence | | | applied. | cut-off based on | | | | assumptions about | | | | economic cut-off | | | | grades for underground| | | | mining. Reported | | | | mining grades at this | | | | cut-off are | | | | successfully mined | | | | using underground | | | | methods at other | | | | similar deposits in | | | | the region. Further | | | | mining studies are | | | | planned and an | | | | economic cut-off grade| | | | will be quantified at | | | | that time. | +---------------------+-----------------------------+--------------------------+ |Mining factors or | * Assumptions made | * RPM has assumed that | |assumptions | regarding possible mining| the deposit could be | | | methods, minimum mining | mined using mostly | | | dimensions and internal | underground | | | (or, if applicable, | techniques. | | | external) mining | Mineralisation grade | | | dilution. It is always | and thickness are | | | necessary as part of the | deemed appropriate for| | | process of determining | underground mining. | | | reasonable prospects for | | | | eventual economic | | | | extraction to consider | | | | potential mining methods,| | | | but the assumptions made | | | | regarding mining methods | | | | and parameters when | | | | estimating Mineral | | | | Resources may not always | | | | be rigorous. Where this | | | | is the case, this should | | | | be reported with an | | | | explanation of the basis | | | | of the mining assumptions| | | | made. | | +---------------------+-----------------------------+--------------------------+ |Metallurgical factors| * The basis for assumptions| * Preliminary | |or assumptions | or predictions regarding | metallurgical testing | | | metallurgical | has been conducted on | | | amenability. It is always| the Hot Maden | | | necessary as part of the | mineralisation. It is | | | process of determining | likely that processing| | | reasonable prospects for | would entail gravity | | | eventual economic | separation of Au | | | extraction to consider | followed by flotation | | | potential metallurgical | to produce a | | | methods, but the | concentrate with | | | assumptions regarding | expected recoveries | | | metallurgical treatment | greater than 90% for | | | processes and parameters | Au and Cu based on | | | made when reporting | these results. | | | Mineral Resources may not| * Further metallurgical | | | always be rigorous. Where| studies are planned. | | | this is the case, this | | | | should be reported with | | | | an explanation of the | | | | basis of the | | | | metallurgical assumptions| | | | made. | | +---------------------+-----------------------------+--------------------------+ |Environmental factors| * Assumptions made | * No assumptions have | |or assumptions | regarding possible waste | been made regarding | | | and process residue | environmental | | | disposal options. It is | factors. Lidya and | | | always necessary as part | MARL will work to | | | of the process of | mitigate environmental| | | determining reasonable | impacts as a result of| | | prospects for eventual | any future mining or | | | economic extraction to | mineral processing. | | | consider the potential | | | | environmental impacts of | | | | the 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 density | * Whether assumed or | * A total of 1,526 | | | determined. If assumed, | density measurements | | | the basis for the | were collected during | | | assumptions. If | the 2014-16 drilling | | | determined, the method | program using the | | | used, whether wet or dry,| water immersion | | | the frequency of the | technique. All samples| | | measurements, the nature,| were in fresh rock. | | | size and | RPM extracted the | | | representativeness of the| density records and | | | samples. | determined whether the| | | * The bulk density for bulk| measurements were in | | | material must have been | waste or | | | measured by methods that | mineralisation. | | | adequately account for | * Bulk densities within | | | void spaces (vugs, | the wireframes were | | | porosity, etc), moisture | calculated based on a | | | and differences between | linear regression | | | rock and alteration zones| equation between Fe | | | within the deposit. | grade and specific | | | * Discuss assumptions for | gravity measurements. | | | bulk density estimates | A bulk density of | | | used in the evaluation | 2.85t/m(3) was | | | process of the different | assigned to waste | | | materials. | material as a result | | | | of average core | | | | densities outside the | | | | wireframes. A bulk | | | | density of 2.20t/m(3) | | | | was assigned to | | | | overburden. | | | | * Bulk density is | | | | measured. Moisture is| | | | accounted for in the | | | | measuring process and | | | | measurements were | | | | separated for | | | | lithology and | | | | mineralisation. | | | | * It is assumed there | | | | are minimal void | | | | spaces in the rocks at| | | | Hot Maden. The Hot | | | | Maden Mineral Resource| | | | contains minor amounts| | | | of overburden above | | | | fresh bedrock. The | | | | value for this zone | | | | was derived from known| | | | bulk densities of | | | | similar geological | | | | terrains. | +---------------------+-----------------------------+--------------------------+ |Classification | * The basis for the | * The Mineral Resource | | | classification of the | is estimated here in | | | Mineral Resources into | accordance with the | | | varying confidence | requirements of | | | categories. | 'Canadian National | | | * Whether appropriate | Instrument 43-101' (NI| | | account has been taken of| 43-101) of the | | | all relevant factors (ie | Canadian Securities | | | relative confidence in | Administrators; and in| | | tonnage/grade | accordance with the | | | estimations, reliability | 2012 Edition of the | | | of input data, confidence| 'Australasian Code for| | | in continuity of geology | Reporting of | | | and metal values, | Exploration Results, | | | quality, quantity and | Mineral Resources and | | | distribution of the | Ore Reserves' prepared| | | data). | by the Joint Ore | | | * Whether the result | Reserves Committee of | | | appropriately reflects | The Australasian | | | the Competent Person's | Institute of Mining | | | view of the deposit. | and Metallurgy, | | | | Australian | | | | Geoscientists and | | | | Minerals Council of | | | | Australia (The JORC | | | | Code 2012). | | | | * The Mineral Resource | | | | was classified as | | | | Indicated and Inferred| | | | Mineral Resource based| | | | on data quality, | | | | sample spacing, and | | | | lode continuity. The | | | | Indicated Mineral | | | | Resource was defined | | | | within areas of close | | | | spaced diamond | | | | drilling of less than | | | | 50m by 50m, and where | | | | the continuity and | | | | predictability of the | | | | lode positions was | | | | good. The Inferred | | | | Mineral Resource was | | | | assigned to areas of | | | | the deposit where | | | | drill hole spacing was| | | | greater than 50m by | | | | 50m, where small | | | | isolated pods of | | | | mineralisation occur | | | | outside the main | | | | mineralised zones, and| | | | to geologically | | | | complex zones. | | | | * The input data is | | | | comprehensive in its | | | | coverage of the | | | | mineralisation and | | | | does not favour or | | | | misrepresent in-situ | | | | mineralisation. The | | | | definition of | | | | mineralised zones is | | | | based on high level | | | | geological | | | | understanding | | | | producing a robust | | | | model of mineralised | | | | domains. This model | | | | has been confirmed by | | | | infill drilling which | | | | supported the | | | | interpretation. | | | | Validation of the | | | | block model shows good| | | | correlation of the | | | | input data to the | | | | estimated grades. | | | | * The Mineral Resource | | | | estimate appropriately| | | | reflects the view of | | | | the Competent Person. | +---------------------+-----------------------------+--------------------------+ |Audits or reviews | * The results of any audits| * Internal audits have | | | or reviews of Mineral | been completed by RPM | | | Resource estimates. | which verified the | | | | technical inputs, | | | | methodology, | | | | parameters and results| | | | of the estimate. | +---------------------+-----------------------------+--------------------------+ |Discussion of | * Where appropriate a | * The lode geometry and | |relative accuracy/ | statement of the relative| continuity has been | |confidence | accuracy and confidence | adequately interpreted| | | level in the Mineral | to reflect the applied| | | Resource estimate using | level of Indicated and| | | an approach or procedure | Inferred Mineral | | | deemed appropriate by the| Resource. The data | | | Competent Person. For | quality is good and | | | example, the application | the drill holes have | | | of statistical or | detailed logs produced| | | geostatistical procedures| by qualified | | | to quantify the relative | geologists. A | | | accuracy of the resource | recognised laboratory | | | within stated confidence | has been used for all | | | limits, or, if such an | analyses. | | | approach is not deemed | * The Mineral Resource | | | appropriate, a | statement relates to | | | qualitative discussion of| global estimates of | | | the factors that could | tonnes and grade. | | | affect the relative | * This is a maiden | | | accuracy and confidence | Mineral Resource; | | | of the estimate. | therefore | | | * The statement should | reconciliation could | | | specify whether it | not be conducted. | | | 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. | | | | * These statements of | | | | relative accuracy and | | | | confidence of the | | | | estimate should be | | | | compared with production | | | | data, where available. | | +---------------------+-----------------------------+--------------------------+
25 July HM Resource Update NR: http://hugin.info/137803/R/2030321/755174.pdf
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