CONONISH GOLD PROJECT STUDY UPDATE

RNS Number : 1668O
Scotgold Resources Ltd
25 May 2015
 

 

 

 

SCOTGOLD RESOURCES LIMITED

CONONISH GOLD PROJECT STUDY UPDATE

AND JORC 2012 ORE RESERVE ESTIMATE

Scotgold Resources Limited ('Scotgold' or 'the Company') is pleased to announce a new Ore Reserve estimate for its wholly owned Cononish Gold Project and provide an update on development activities.  The Ore Reserve estimate, compiled by Bara Consulting Ltd, has been classified and is reported as Proven and Probable, based on guidelines recommended in the JORC Code (2012).  The Cononish Gold Project is part of the Company's gold portfolio located in Scotland.

HIGHLIGHTS1

·     Total Ore Reserve estimate increased by 179% to 198,000 ounces of gold(Au) and 851,000 ounces of silver (Ag) (555,000 tonnes at 11.1g/t Au and 47.7g/t Ag respectively);

·     The maiden Proven Reserve of 24,000 ounces Au and 108,000 ounces Ag (65,000 tonnes at 11.5g/t Au and 51.5g/t Ag for respectively);

·     The mining methodology trade off study has been completed and Long Hole Open Stoping (LHOS) is confirmed as most appropriate;

·     The life of mine increases to approximately 8 years at a processing rate of 72,000tpa;

·     The new mine design and mine schedule has also been completed, enabling earlier access to higher grade ore and gold equivalent production of approximately 30,000 ounces per annum in years 2 and 3;

·     The average annual gold equivalent production increased to approx. 23,000 ounces per annum.

·     The exploration team has been enhanced with the recruitment of a Project Geologist and a structural prospectivity exercise has been commenced.

Note1: All comparisons relate to Cononish Development Plan released 30/04/2013 and available at www.scotgoldresources.com.

STUDY UPDATE

A thorough review has been undertaken of the 2013 Cononish Development Plan developed by AMC Consultants (UK) Ltd (AMC) in order to identify opportunities to not only improve on the plan but to also improve the confidence in the plan.  As a result of this review further work has been undertaken on the mining methodology, access design, geotechnical evaluation and overall mine design.

The outcome of this work is a revised Development Plan developed by Bara Consulting (Bara). This revised Development Plan is complete in all areas to at least a Prefeasibility Study level and consequently the Company is now able to estimate the Ore Reserve based on the Mineral Resource Estimate (MRE) issued in January 2015. Greater detail on the parameters derived from this work and used for the Ore Reserve estimation process is given in the following sections of this release.

Further work is still required to complete the Bankable Feasibility Study (BFS), principally to update the capital cost estimates, review and adjust as appropriate the operating cost estimates and incorporate the conceptual opportunities identified for savings.  This is expected to be completed by the end of July 2015.

The Company has also recruited a Project Geologist to the team who has previously conducted various studies on gold mineralisation in the Dalradian belt.  This additional capacity, together with a structural prospectivity study already commenced, will focus our ongoing exploration programs designed to both further build on the mineral resources at Cononish and throughout our extensive Grampian Project.

ORE RESERVE ESTIMATE

 

As at 25 May 2015 (JORC 2012 Code)

Classification

Proven

Probable

Total

Tonnes ('000)

65

490

555

Au Grade (g/t)

11.5

11.1

11.1

Au Metal (k oz)

24

174

198

Ag Grade (g/t)

51.5

47.2

47.7

Ag Metal (k oz)

108

743

851

(Bara Consulting Limited Ore Reserve Statement dated May 2015)

As at 30 April 2013 (JORC 2004 Code)

Classification

Proven

Probable

Total

Tonnes ('000)

0

200

200

Au Grade (g/t)

0

11

11

Au Metal (k oz)

0

71

71

Ag Grade (g/t)

0

45

45

Ag Metal (k oz)

0

289

289

(Development Plan dated 30 April 2013)

Variance  - Increase / (Decrease) 2013 to 2015

Classification

Proven

Probable

Total

Tonnes ('000)

n/a

145%

177%

Au Grade (g/t)

n/a

1%

1%

Au Metal (k oz)

n/a

145%

179%

Note: the Ore Reserve estimates reported Development Plan dated 30/04/2013 under the JORC 2004 code are no longer applicable (as discussed in the 2014 Annual Report) but are presented here for comparative purposes only.

 

The most significant factor underlying the increase in the 2015 Ore Reserve estimate is the Mineral Resource Estimate (MRE) published in January 2015. The increased confidence in this MRE and the consequent increase in material classified as Indicated, together with the work done to verify the modifying factors, has resulted in the estimation of both Proven and Probable categories of Ore Reserve. It should also be noted that the gold price used for the Ore Reserve estimation is now US$1,100/ounce (compared with US$1,300/ounce Au in the 2013) and the silver price used is US$15/ounce.

Commenting on the improved numbers and the estimation of a maiden Proven Ore Reserve, Scotgold CEO, Richard Gray said "We continue on track to deliver the Cononish Project into production. I believe this Ore Reserve statement highlights the robustness of the project, even using a gold price of US$1,100/ounce, some US$100 below the current market price.  This improved confidence is a material factor in our early stage discussions with potential financiers and will assist us secure the best possible financial arrangements in the coming months"

 

For further information:

 

Scotgold Resources Limited              Westhouse Securities Limited

Richard Gray

Chief Executive Officer                       Martin Davison

Tel: +44 (0)7905 884 021                   Tel: +44 (0)20 7601 6100

 

Capital Markets Consultants               Vicarage Capital Limited

Simon Rothschild                               Rupert Williams

Tel +44 (0)7703 167 065                    Tel: +44 (0)20 3651 2911

 

 

 

 

SUMMARY OF MATERIAL INFORMATION FROM REVISED DEVELOPMENT PLAN

 

1          RESOURCES CONSIDERED FOR MINING

 

The JORC 2012 compliant Mineral Resource Estimate is shown in Table 1.1 below and was compiled by CSA Global (UK) Limited. Details of the supporting work, including Section 1, 2 and 3 of the JORC 2012 Code table 1 checklist were given in the Company's announcement dated 12 January 2015.

 

Table 1.1 - Mineral Resource Estimate as at 12 January 2015

Reported at a cut off grade of 3.5g/t gold

Classification

K tonnes

Grade Au

g/t

Metal Au

Koz

Grade Ag

g/t

Metal Ag

Koz

Bulk Density

Measured - In-situ

60

15.0

29

71.5

139

2.72

Indicated - In-situ

474

14.3

217

58.7

895

2.72

Indicated - Mined Stockpile

7

7.9

2

39.0

9

2.72

Sub-total M & I

541

14.3

248

59.9

1,043

2.72

Inferred - In-situ

75

7.4

18

21.9

53

2.72

Total MRE

617

13.4

266

55.3

1,096

2.72

Reported from 3D block model with grades estimated by Ordinary Kriging with 15 m SMU Local Uniform Conditioning adjustment.  Minimum vein width is 1.2m. Totals may not appear to add up due to appropriate rounding.

(CSA Global (UK) Limited Mineral Resource Estimate as at 12 January 2015)

2        cut-off grade and modifying factors

 

2.1     Cut-off Grade

In order to simplify the calculations based on grade, the value of silver and gold were combined by the calculation of an equivalent gold value.  The calculation considered the different metal process and recoveries. The equation used for calculating equivalent Au g/t is:

Equivalent Au (g/t) = Au g/t + (Ag g/t *0.015)

A breakeven grade was calculated based on the operating costs for mining and processing as well as the prevailing metal prices.

Based on this calculation a mining cut-off of 4.6 g/t Equivalent Au (RoM) was applied in the mine plan.  Only stopes with in-situ grades above the cut-off were targeted in the plan. In limited cases it is necessary to mine lower grade blocks in order to access the targeted blocks, rather than re-developing around the lower grade blocks, and so some lower grade stope blocks are included in the plan.

A marginal pay limit was calculated in the same manner, but by setting the mining cost to zero, to determine the cut-off grade for development ore.  The marginal cut-off grade is 2.3 g/t Equivalent Au in-situ, which equates to 2.1 g/t Equivalent Au RoM grade.  To ensure at least some profit margin on marginal ore the cut-off grade applied in determining which development ore to process was set at 2.5 g/t equivalent Au RoM grade.

 

2.2     Dilution

Considerable effort went into estimating dilution.  All the current ore intersections on the 400 m Level Adit were mapped and detailed stope configurations were overlaid onto the mapping and sampling data.  Eleven different cases were analysed to determine the amount of both planned dilution and unplanned dilution that was likely to occur during mining.  Planned dilution is that waste or unpay material that is included in the stope envelope. This is normally due to the variation in vein thickness/grade or deviation of the vein away from the straight lines of the stope envelope.

Unplanned dilution is an allowance made for inaccuracies and error in the mining process, which may occur due to inaccurate drilling, deviation of the drill hole, blast damage or failure of the stope hanging or sidewall.

The estimate of the predicted dilution and the width of the vein in each of the eleven cases were plotted against each other and a regression curve determined.  The best fit for the data set was a power function, where:

Total dilution (%) = 0.792 X Width (m)(-1.638)

This formula was used to allocate dilution to each stope block in the mine plan.  The average stope dilution is 30%.

An additional source of dilution in the mine plan is development. Ore development was categorised into grade categories in the mine plan:

ü Pay - RoM grade (Eq Au g/t) > 4.6 g/t

ü Low grade - RoM grade (Eq Au g/t) < 4.6 g/t and >2.5 g/t

ü Unpay - RoM grade (Eq Au g/t) < 2.5 g/t

 

Both pay and low grade development ore will be processed and therefore have been included in the Mineral Reserve estimate.  The unpay development ore will be treated as waste material.

 

2.3     Ore Loss

An allowance was made for ore loss to account for:

ü Broken ore not recovered from stopes

ü Ore not broken due to inaccurate mining or mining complications such as stope bridging

ü Ore lost during the mucking and hauling process, between the stope and the RoM pad.

 

Based on experience from other narrow vein gold operations ore loss was set at 10%.

3        ore reserve statement

 

The geological block and structural models produced by CSA were used to develop the mine design.  The level intervals proposed by AMC were considered appropriate as was the long hole open stoping mining method.  The mine design included a rock pass system (which was not included in the AMC design) and a revised layout for the ramp systems.  The rock pass system introduced considerable more flexibility and will lead to reduced operating costs by reducing truck haul distances.  Appropriate pillars where built into the mine design.  These were based on a detailed geotechnical investigation completed in April 2015.  No Inferred Mineral Resources where included in the mine design.

 

 

An illustration showing a  vertical projection of the ore body looking north coloured by grade  can be found on the Company's website at www.scotgoldresources.com a further illustration showing a vertical projection looking north but coloured by year can also be found at www.scotgoldresources.com.

 

 

In order to confirm the economic viability, the 2015 schedule was evaluated with the 2013 estimated operating costs and capital costs, which were updated to reflect the revised layout and schedule.  No further revision to costs (quoted below) were made, as after review as part of the BFS, they are considered prudent and appropriate at a Prefeasibility Study level of +/-20%.

The operating costs used in the life of mine financial model are shown in Table 3.1.

 

Table 31 - Prefeasibility Operating Cost Estimate (LoM Averages)

Operating Cost

Mining

48.40

Processing

31.06

Administration

8.51

Total

 

The processing and administration costs have changed slightly due to the longer life.

The capital costs used in the life of mine financial model are shown in Table 3.2.

 

Table 32 - Prefeasibility Capital Cost Estimate

Capital Cost

Mine Development

3.648

Mining Equipment

2.734

Processing Plant

10.728

Tailings Facility

4.112

Infrastructure

0.996

Environmental and Social

1.174

Labour (pre-production)

0.375

Total

 

Development costs have increased due to the revised mine design.  Labour costs have increased due to an increased allowance for pre-production expenditure.  Development capital includes all waste development until the end of the mine life.

The metal prices used in calculating cash flow for this economic assessment were US$ 1,100/Au oz and US$ 15/Ag oz and an exchange rate of US$/£ 1.60 was applied.  These prices were provided by Scotgold and are considered appropriate.

The estimate showed that the planned operation returns a positive cash flow, with a pre-tax NPV of £21.3 million at a discount rate of 10 per cent and a pre-tax IRR of 45%.  This confirms that the operation is economically viable.

Bara has been commissioned by Scotgold to update the areas of work in the AMC Development Plan, which are considered to be at PFS levels, and produce a BFS.  This is expected to be completed by the end of July 2015.  The BFS is well advanced and early indications are that these numbers may be improved once opportunities already identified to reduce costs have been incorporated into the study.

Table 3.3 shows the resource estimate and the conversion of the Mineral Resource to Ore Reserve.

Table 33 - Summary of Mineral Resource to Ore Reserve Conversion

Item

Factor

Tonnes '000

Au Grade g/t

Au

'000 Oz

Ag Grade g/t

Ag

'000 Oz

Resource (Measured and indicated at 3.5 g/t cut-off)


541

14.3

249

59.9

1,042

Less unpay areas (after mining cut-off )

5 g/t

374

15.7

189

69.1

830

Dilution







Stoping

30%

99

0.9

3

4.7

15

Low Grade Development


136

6.2

27

20.9

91

With dilution


609

11.2

218

47.8

936

Less Ore loss (10%)

10%

-61

11.2

-22

47.8

-94

From Underground Mine


548

11.2

197

47.8

843

From surface stockpile


7

7.9

2

39.0

9

Total Mineral Reserve


555

11.1

198

47.7

851

 

 

The Ore Reserve statement is shown in Table 3.4. This is an estimate of the ore to be delivered to the plant.

Table 3.4 - Ore Reserve Statement

Classification

Tonnes

'000

Grade

Au g/t

Au

'000 oz

Grade

Ag g/t

Ag

'000 oz

Proven

65

11.5

24

51.5

108

Probable

490

11.1

174

47.2

743

Total

555

11.1

198

47.7

851

(Bara Consulting Limited - Ore Reserve Statement dated May 2015)

 

The Mineral Resources are declared inclusive of Ore Reserves.

 

Competent Persons Statement

 

The information in this report that relates to the 2015 Ore Reserves for Cononish Gold Project and the revised development plan is based on information compiled by Pat Willis, a Competent Person who is registered as a Professional Engineer (Pr.Eng.) with the Engineering Council for South Africa (ECSA) and a Fellow in good standing and Past President of the Southern Africa Institute of Mining and Metallurgy (FSAIMM).. Mr Willis is employed by Bara Consulting Limited, an independent consulting company. Mr Willis has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Willis consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

 

The information in this report that relates to the 2015 Mineral Resources Estimate for Cononish Gold Project (refer ASX announcement dated 22/01/2015) is based on information compiled by Malcolm Titley, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Titley is employed by CSA Global (UK) Limited, an independent consulting company. Mr Titley has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Titley consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

 

Further, the Company confirms it is not aware of any new information or data that materially affects the information contained in the original announcement and that all material assumptions and technical parameters underpinning the estimate of Resources continue to apply and have not materially changed

 

The information in this report that relates to the  Cononish Development Study Results (refer ASX announcement dated 30/4/2013)  was compiled by Mr. Martin W Staples BSc, FAusIMM., Director and Principal Mining Engineer with AMC Consultants (UK) Ltd based in the Maidenhead, UK office (now relocated to Perth W.A). Mr. Staples has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which 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. Staples consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. This information was prepared and first disclosed under the JORC Code 2004

 

Forward Looking Statement

Statements regarding plans with respect to the Company's mineral properties are forward-looking statements. There can be no assurance that the Company's plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that the Company will be able to confirm the presence of additional mineral deposits, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of the Company's mineral properties.



 

Appendix A: JORC Code, 2012 Edition - Table 1 report



 

 

Appendix B: Glossary of technical terms

Term

Description

%

Percent

°C

Celsius degrees

3D

Three-dimensional model or data

AAS

Atomic Adsorption Spectronomy

Acid test

A method of orientating a drillhole using an acid etch

Adit

Underground mining tunnel, for mining, drainage, access

Ag

Silver, atomic number: 47. Measured in parts per million (grams per tonnes)

AQ

Diamond Drill core Diameter: 27mm inside barrel

Aqua regia

Partial acid digestion method, dissolving base and precious metals but not silicates and/or alumina's

Assay

A general term for geochemical analysis of a sample

Au

Gold, atomic number: 79. Measured in parts per million (grams per tonnes)

Auriferous

Enriched in gold

Azimuth

An angular measurement in a spherical coordinate system, i.e. deviation degree relative to north

Blanks

A reference material/sample which contains zero grade, inserted to determine sampling or laboratory contamination

BQ

Diamond Drill core Diameter: 36.5mm inside barrel

Breccia

A rock that has experienced significant brittle deformation, and is composed of broken fragments typically cemented together by a fine-grained matrix

Bulk density

The mass of many particles of the material divided by the total volume they occupy. The total volume includes particle volume, inter-particle void volume, and internal pore volume

Calcareous

Enriched in calcium, typically calcium carbonate

CAPEX

Capital Costs (short for Capital Expenditure).

Carbonate

A carbonate is a salt of carbonic acid, characterised by the presence of the carbonate ion, CO32-

Chalcopyrite

One of the chief ores of copper.  Sulphide mineral, composition CuFeS2

Channel sample

A hard rock sample, typically taken perpendicular to the mineralised orientation, continuously over a set length

Chip-channel

A hard rock composite sample, typically collected using a hammer to obtain numerous fragments of rock

cm

centimetre

Collar

Geographical coordinates of the collar of a drill hole or a working portal

Compositing

The process of dividing or adding sample intervals together to form a regular length

CP

Competent Person

CRM

Certified Reference Materials, a QAQC standard sample

CSA

CSA Global (UK) Ltd

Cut-off grade

The threshold value in exploration and geological resources estimation above which mineralised material is selectively processed or estimated

Datamine

A 3D mining software package

DD

Diamond core drilling method

DGPS

Differential Global Position System

Diamond drill hole

Method of drilling, using a diamond impregnated core-bit which produces a solid cylinder of rock core

Diamond saw

Circular hand-saw, with a diamond impregnated cutting disk, typically used to collect channel samples from hard rock outcrop

Dilution

The inclusion of waste or low grade (uneconomic) material either during estimation or mining

DIP

The angle of drilling (or of a structure) relative to horizontal

DTM

Digital Terrain Model.  Three-dimensional wireframe surface model, for example, topography

Duplicates

A  QAQC sample that duplicates a previously collected sampling, employing the same collection and analysis methods

Dyke

An intrusive, microcrystalline rock, concentrated along a linear feature, typically mafic (enriched in iron and magnesium)

Easting

Coordinate axis (X) for metre based Projection, typically UTM. Refers specifically to metres east of a reference point (0,0)

Electrum

A variety of gold containing minor silver (usually ~20% weight of silver)

Elevation

Distance above a datum, typically above sea level

Ezy mark

A down-hole tool which marks the base of piece of core, while still in the core-barrel (down-hole), the marks are used to orientate drill core

Face sample

A chip or channel sample collected from an advancing underground mine drive

Fault

A planar fracture or discontinuity in a volume of rock, across which significant displacement has occurred

Fire assay

A laboratory method to analyse the total precious metal (Au, Ag, PGE) content of a sample, by fusion, furnace and cupellation followed by Spectrometry analysis

Flotation

A metallurgical process, typically used for non-acid soluble ore (e.g. sulphides) to concentrate pulverised ore minerals using flocculants

Feasibility study

A comprehensive study of a deposit in which all geological, engineering, operating, economic and other relevant factors are considered in sufficient detail that it could reasonably serve as the basis for a final decision by a financial institution to finance the development of the deposit for mineral production.

Footwall

The volume of rock which lies below a structural contact

g

Gram

g/t

Grams per tonne (equal to parts per million)

Galena

One of the chief ores of lead. A sulphide mineral, composition PbS

Geochemical sampling

In exploration, the main method of sampling for determination of presence of mineralisation.  A geochemical sample usually unites fragments of rock chipped with a hammer from drill hole core at a specific interval

Geological domain

A domain of rock that has a similar character, age, mineralisation style etc.

GPS

Global Positioning System

Gravity concentration

A metallurgical process, used to concentrate dense minerals, typically employing a centrifuge or gravity tables

Hangingwall

The volume of rock which lies above a structural contact

Histogram

Diagrammatic representation of data distribution by calculating frequency of occurrence

HQ

A diamond drill core diameter of 96 mm (outside of bit) and 63.5 mm (inside of bit)

ICP

Inductively Coupled Plasma analysis, used to analysis elemental concentrations of metals and several non-metals

IDS

Inverse Distance Squared

Implicit modelling

A method of creating digital surfaces, wireframes and models using automated processes and geological constraints

Indicated Resource

That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed

Inferred Resource

That part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability

Isatis

Geovariances' geostatistical software

JORC

Joint Ore Reserves Committee

K

Potassium

Kg

kilogram

km

kilometre

km2

Square kilometre

Kriging

Method of interpolating grade using variogram parameters associated with the samples' spatial distribution.  Kriging estimates grades in untested areas (blocks) such that the variogram parameters are used for optimum weighting of known grades.  Kriging weights known grades such that variation of the estimation is minimised, and the standard deviation is equal to zero (based on the model)

LHOS

Long hole Open Stoping method of underground mining

Lithology

Rock type: based on standard international geological classifications

Lode

Another term for a mineralised vein

LUC

Localised uniform conditioning, a non-linear "recoverable resource" estimation technique

m

metre

M

Million

Ma

Million years

Mean

Arithmetic mean

Measured Resource

that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are appropriately spaced to confirm geological and/or grade continuity to a high confidence

Median

Sample occupying the middle position in a database

Metamorphosed

Undergone physical and/or chemical change due to heat and pressure, through geological processes

MICROMINE

A 3D mining software package

Microns

A micrometre - a measurement of length - 1 x 10-6 metres

Mineralised

Enriched in concentrations of an element (e.g.) to a degree where it is economically significant

Mineral Resource

A concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction.  The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories

Minimum mining width

A minimum width, dictated by the mining method employed (open-stope, raise-bore) to which mining can realistically be achieved

mm

millimetre

MRE

Mineral Resource Estimate

Mt

million tonnes

Mtpa

Million tonnes per annum

Native Metal

A native metal is any metal that is found in its metallic form, either pure or as an alloy, in nature

NN

Nearest Neighbour, a method of assigning grades to blocks based on samples that are nearest to it

Northing

Coordinate axis (Y) for metre based Projection, typically UTM. Refers specifically to metres north of a reference point (0,0)

NQ

A diamond drill core diameter of 75.7 mm (outside of bit) and 47.6 mm (inside of bit)

Nugget

The typical difference (for an individual domain) in grade between samples taken immediately adjacent to each other

OK

Ordinary Kriging. A linear estimation technique using weights determined through variography

OPEX

Operating Costs

Orogenic

Geological term for the process of mountain building

OSGB

Ordnance Survey of Great Britain

Outcrop

Exposed rock, i.e. not covered by soil or scree

Outliers

A statistical term.  Outliers are defined as data points that do not fit into the distribution of the overall dataset

oz.

Troy ounce (31.1034768 grams)

Palaeozoic

Geological Era - from 542Ma to 251Ma

Panel chip

Chip sampling using a regular grid

Pb

Lead, atomic number 82

Pegmatite

A holocrystalline intrusive rock, dominated by quartz, feldspar, mica and associated with granitic intrusion and high grade metamorphism

Pelite

Metamorphic rock; of fine-grained sedimentary protolith

Percentile

A measure used in statistics indicating the value below which a given percentage of observations in a group of observations fall

Phanerozoic

Geological Eon - from 542Ma to the present day

PLC

Public Listed Company

Population

In geostatistics, a population formed from grades having identical or similar geostatistical characteristics.  Ideally, one given population is characterized by a linear distribution

Porphyry

An igneous rock consisting of large-grained crystals in a fine-grained matrix

Pre-feasibility study (PFS)

A comprehensive study of the viability of a mineral project that has advanced to a stage where the mining method, in the case of underground mining, or the pit configuration, in the case of an open pit, has been established, and which, if an effective method of mineral processing has been determined, includes a financial analysis based on reasonable assumptions of technical, engineering, operating and economic factors and the evaluation of other relevant factors which are sufficient for a qualified person, acting reasonably, to determine if all or part of the mineral resource may be classified as a mineral reserve

ppm

Parts per million

PQ

A diamond drill core diameter of 122.6 mm (outside of bit) and 85 mm (inside of bit)

Probable Ore Reserve

A 'Probable Ore Reserve' is the economically mineable part of an Indicated, and in some circumstances, a Measured Mineral Resource. The confidence in the Modifying Factors applying to a Probable Ore Reserve is lower than that applying to a Proved Ore Reserve.

Proterozoic

Geological Eon - from 2500Ma to 542Ma

Proved Ore Reserve

A 'Proved Ore Reserve' is the economically mineable part of a Measured Mineral Resource. A Proved Ore Reserve implies a high degree of confidence in the Modifying Factors.

Psammite

Metamorphosed sandstone

Pulps

Final stage of sample preparation prior to analysis, typically pulverised to micron size and homogenised

Pyrite

An iron sulphide with the chemical composition of FeS2

QA/QC

Quality Assurance Quality Control

Quartz

A common silicate mineral, composition SiO2

Quartz vein

Intruded vein of quartz, typically younger than the host rock

RAB

Rotary Air Blast. A form of open hole drilling where the drill cuttings are ejected by air, travelling to surface in the interface between the drill rod and the ground

RC

Reverse Circulation. A form of drilling where the drill cuttings are ejected by air, travelling to surface within an opening within the drill stem itself

Raise

A vertical underground excavation

Recovery (Drill)

Measurement of core loss (in meters( or chip sample (in mass) to ascertain total drill recovery

Reserves

Mineable geological resources

Residual sample

A sample that is shorter than the composited length, after compositing

Resources

Geological resources (both mineable and un-mineable)

RL

Reduced Level. Elevation of the collar of a drill hole, a trench or a pit bench above the sea level

ROM

Run of Mine

RQD

Rock-quality designation, a geotechnical measurement of how fractured or broken a drill intersection is

Sample

Specimen with analytically determined grade values for the components being studied

Seam filling

A Datamine process of filling a wireframe, from a designated direction, which forms a single cell that honours the true thickness of the wireframe in that direction

Shear

A structural discontinuity in a rock mass, typically resulting in non-brittle deformation and movement of blocks along a plane

Shrinkage stoping

A mining method used for steeply dipping, narrower ore bodies with self-supporting walls and ore

Sill

Variation value at which a variogram reaches a plateau

Silver

Precious metal (Ag), atomic number: 47

Single shot

A surveying method, employing single film exposures to determine the azimuth and dip of the surveying instrument downhole

SMU

Smallest Mining Unit, typically refers to a block whose dimensions match minimum mining block size expected mining methods

Snowden

International Mining and Exploration Consultancy

SOP

Standard Operating Procedure

Sphalerite

The chief zinc sulphide mineral with a chemical composition of ZnS

Standards

Certified Reference Materials (CRMs) samples which have a known constant geochemical value, inserted to ascertain laboratory precision

Stockworks

A interconnected network of veins

Strike

The orientation of a feature, in plan view, or as intersecting a horizontal plane

Sub-level stoping

Underground mining technique that involves vertical mining in a large, open stope

Sulphides

A mineral group that contains sulphur as the major anion

Support

Equal support implies that all data has the same statistical weight

SURPAC

A 3D mining software package

Swath plot

A method of block model validation using a graph that compares input grades, drill metres, block model tonnes

t

Tonnes

Telluride

A mineral group that contains tellurium as the major anion

TMF

Tailings Management Facility

Top cut

A value to which anomalously high grades are restricted to, determined by statistical methods

Topography

Detailed, precise description of the surface of the earth, based on XYZ data, to form a 3-D surface

Trench

A method of sampling across and excavated trench at surface, using either hand-tools or a mechanical back-hoe. Used to expose fresh/less-weathered rock

Tropari

A 'single-shot' method of surveying, using single film exposures to determine the azimuth and dip of the surveying instrument downhole

UC

Uniform Conditioning, a non-linear "recoverable resource" estimation technique

UTM

Universal Transverse Mercator

Variation

In statistics, the measure of dispersion around the mean value of a data set

Variogram

Graph showing variability of an element by increasing spacing between samples

Variography

The process of constructing a semi-variogram

Vein

A sheet like body of crystallized minerals intruded into a host rock

Waste

Un-mineralised rock, or rock that is uneconomic to extract/process

Wireframe

A 3-D digital model, typically an solid volume which encloses a geological domain

X

The direction aligned with the x-axis of a coordinate system

Y

The direction aligned with the y-axis of a coordinate system

Z

The direction aligned with the z-axis of a coordinate system

Zn

Zinc, atomic number 30

 

 

 


This information is provided by RNS
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