|Lurio Graphite NI 43-101 Technical Report – June 2016||view/print|
The Lurio Graphite Project in Mozambique is located approximately 80 km southwest of the port city of Pemba in the Cabo Delgado Province and contains a number of known graphite sequences. As previously reported, a series of phased, systematic exploration activities was conducted on the Project up to the end of 2014, including geological mapping, rock-chip sampling, trenching, mineralogical analysis, ground geophysical surveys and metallurgical test work.
Previous work on the Project was predominantly focussed on the Nipacue graphite sequence, which was considered to be the most promising of the sequences in the Project area. In 2015 the most prospective of the graphite layers in the Nipacue sequence, the Nipacue Outer (“NPO”) layer, was evaluated by means of a reverse circulation (“RC”) and diamond (“DD”) drilling programme in order to provide data for the preparation of a Mineral Resource estimate. Three areas on the NPO layer were selected for drilling, known as Nipacue North, Nipacue Central and Nipacue South.
The drilling programme comprised 16 RC holes for a total of 1,297 m and 22 DD holes for a total of 3,127 m in the Nipacue North area, 6 RC holes totalling 478 m in the Nipacue Central area, and 9 RC holes for 581 m in the Nipacue South area. Drill spacing was roughly 150 m along strike and 50 m down dip for both RC and DD drilling. Where alternate lines of RC and DD were drilled at Nipacue North, the drill spacing was reduced to 75 m x 50 m. Drilling was generally angled vertically downwards at -90°, although two DD drillholes were angled at -60° at Nipacue North to perpendicularly intersect the graphitic mineralisation. Four of the DD boreholes were twinned with RC boreholes for logging and grade comparison of the two drilling methods.
Mineral Resource Estimate and Technical Report
The MSA Group (Pty) Ltd (“MSA”) was commissioned to prepare Mineral Resource estimates for Nipacue North, Nipacue Central and Nipacue South and an Independent Technical Report (“the Report”) for the Project based on total graphitic carbon (“TGC”) assays from the RC and DD drillholes, density measurements from cores of the 22 DD drillholes, and data from mineralogical, metallurgical and other exploration work carried out on the Project.
The estimates represent the maiden Mineral Resource estimates for the Project, and incorporate drilling data which, in the QP’s opinion, were collected in accordance with The Canadian Institute of Mining, Metallurgy and Petroleum’s (“CIM”) “Exploration Best Practices Guidelines” (2000). The drilling assay data were validated through a rigorous QA/QC programme and in the opinion of MSA are deemed acceptable for use in the estimation of Mineral Resources.
The Mineral Resource estimates and the Report were prepared to comply with disclosure and reporting requirements set forth in the Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), the corresponding Companion Policy 43-101CP, the corresponding Form 43-101F1 Technical Report, the CIM Definition Standards – For Mineral Resources and Mineral Reserves (2014) and the CIM Best Practice Guidelines (2003).
The Mineral Resource estimates as at 1 June 2016 are presented in the table below.
|Nipacue Prospect||Mineral Resource Category||Reporting Depth (m)||Tonnes
Data has been rounded and as a result minor computational errors may occur
Mineral Resources which are not Mineral Reserves have no demonstrated economic viability
The Mineral Resource is stated as that material contained within the high-grade (“HG”) domain that has been defined at Nipacue, which is generally >4% TGC. No cut-off grade is applied within the HG domain as, in MSA’s opinion, all such contained material has “reasonable prospects for economic extraction” when considering the mining and processing assumptions applied.