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Bezant Resources PLC (BZT)

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Wednesday 06 April, 2022

Bezant Resources PLC

Cyprus Joint Venture Update

RNS Number : 3923H
Bezant Resources PLC
06 April 2022
 

6 April 2022

 

  Bezant Resources PLC ("Bezant") & Caerus Mineral Resources PLC   ("Caerus")

Mineral Resource Estimate for the Troulli Au and Cu Project, Cyprus

 

Bezant Resources  (AIM: BZT), and Caerus Mineral Resources  (LON: CMRS) the exploration and resource development companies (the "Companies") with a Joint Venture ("JV") focused on the Troulli Mine Development Project and other copper-gold JV targets in Cyprus, are pleased to announce the results of an independent Initial Mineral Resource Estimate, reported in accordance with JORC Code (2012), in respect of the Troulli Cu-Au project ("Troulli" or the "Troulli Project").

 

Highlights :

·   Independent Indicated and Inferred Mineral Resources Estimates for Troulli , reported in accordance with JORC Code (2012) prepared by Addison Mining Services Limited ("AMS"). The input databases for the waste dumps and hard rock estimates, included:

72 diamond and open hole percussion drillholes, totalling 3,393.30 metres.

208 trench channels for 692.17 metres.

· At a selected cut-off grade of 0.5% Cu, a hard rock resource estimate of approximately 2.7 million tonnes at a Cu equivalent grade of 0.74% CuEq (0.51% Cu and 0.26 g/t Au) has been established

· A Total Hard Rock Resource Estimate of approximately 4.9 million tonnes at 0.41% Cu and 0.2 g/t Au for 20,000 t of Cu metal and 31,000 ounces of Au, from a cut-off grade of 0.26% Cu equivalent.

· The Hard Rock Resource Estimate is comprised of:

Indicated Gossan Resources of 260,000 tonnes at 0.18% Cu and 0.91 g/t Au for 460 t of Cu and 7,700 ounces of Au.

Inferred Gossan Resources of 180,000 tonnes at 0.14% Cu and 0.47 g/t Au for 260 t of Cu and 2,800 ounces.

Inferred Breccia Resources of 4.4 million tonnes at 0.43% Cu and 0.14 g/t Au for 19,000 t of Cu and 21,000 oz of Au.

· Inferred waste and tailings dump resources of approximately 93,000 tonnes at 0.76% Cu and 0.12 g/t Au for 710 tonnes of Cu and 360 oz of Au.

 

Outlook

The Companies will focus on a number of priorities including the upgrading and expansion of the mineral resource, completion of metallurgical test work, environmental baseline studies and the Environmental and Social Impact Assessment, continuing development of a mine plan and, submission of a Mining Licence application. Specifically, the near-term programme will include:

Continued resource development and the further expansion of the larger Troulli deposit with the on-going drilling and evaluation of multiple copper and gold-bearing gossans occurring within a 1km radius of the Troulli deposit that have been partially drilled and sampled by Caerus in the past few months.

The drilling of high-grade mineralisation at the Anglisides satellite Project, already broadly defined by Caerus drilling, with a view to the future delivery of this feedstock to the Troulli processing plant for extraction of both copper and gold.

Further work will be undertaken to evaluate the Kokkinopetra Project, located 1.5km from Troulli and within an acceptable haul distance for any payable mineralisation that may be defined.

In parallel with the expansion of the resource, Caerus plans, with guidance from external independent consultant, AMS, to complete infill drilling to upgrade the recently announced mineral resource. This workplan will also include drilling of presumed extensions to mineralisation identified during the current drill programme and include;

· providing AMS with the results of metallurgical test work being undertaken by Jubilee Metals Group as part of the process of upgrading the mineral resource.

· completing the ongoing Environmental baseline study and the Environmental and Social Impact Assessment being undertaken by an independent Cypriot-based consulting group.

· begining the process of mine design and planning based on feedback from both Jubilee Metals Group Plc and the environmental consulting group.

· completing the submission of a Mining Licence application.

 

Colin Bird, Executive Chairman of Bezant Resources, commented :

"This is a very encouraging start and provides a good foundation for the expansion of the Mineral Resource as we start to include extensions to the mineralization and the area between Troulli and Kokkinapetra. On the back of these Maiden Resource figures we are pleased to announce that we are preparing to commence mine design in parallel with the on-going metallurgical test work. We look forward to the next round of drilling starting in a few weeks' time and the steady growth of the Mineral Resource as we work towards the development of a new mining venture in Cyprus."

 

Martyn Churchouse, CEO of Caerus Minerals, further commented :

"We are delighted with the Maiden mineral resource estimate for Troulli that provides the Joint Venture with the foundation for the continued expansion of the resource as we drill out other known targets located along the 1.5km strike length between Troulli and Kokkinopetra.

This is a significant step along the road to becoming a producer with the future development of Troulli potentially being our first revenue event. With Bezant now committing to mine design, we are able to move to the next stage in the metallurgical test work and plant configuration process. Once we have guidance on likely annual plant capacity we will be able to marry resource tonnes to throughput and start the process of optimisation and providing detail of targeted metal production.

Early indications from metallurgical test work suggest that the lower grade hard rock resource, that below the 0.5% CuEq cut-off may be amenable to low-cost heap leaching adding significantly to the Total hard rock resource by a further 2.5 million tonnes.

The Exploration Team have identified possible extensions to the current mineral resource and these will be drilled out along with the focused targeting of copper - gold gossans that we have already drill-tested and therefore have a high degree of confidence in our ability to define further resources.

The parallel drill programme at the Anglisides satellite project has the potential to deliver easily accessible high-grade feed for any future Troulli plant that can extend the life of the operation.

I would like to thank the Exploration Team for their hard work and dedication in completing the release of a Maiden resource within 9 months of acquisition of the licence and also, AMS for their excellent and highly professional approach in the generation of the resource."

Overview

The Companies are pleased to announce the results of an independent Mineral Resource Estimate, reported in accordance with JORC (2012), for Troulli prepared by independent consultant Addison Mining Services Limited ("AMS").

This Mineral Resource Estimate, effective as of 22nd March 2022 for the Troulli deposit comprises:

· A Total Hard rock resource estimate of approximately 4.9 million tonnes at 0.41% Cu and 0.2 g/t Au for 20,000 t of Cu metal and 31,000 ounces of Au, including.

Indicated Gossan Resources of 260,000 tonnes at 0.18% Cu and 0.91 g/t Au for 460 t of Cu and 7,700 ounces of Au.

Inferred Gossan Resources of 180,000 tonnes at 0.14% Cu and 0.47 g/t Au for 260 t of Cu and 2,800 ounces.

Inferred Breccia Resources of 4.4 million tonnes at 0.43% Cu and 0.14 g/t Au for 19,000 t of Cu and 21,000 oz of Au.

· Inferred waste and tailings dump resources of approximately 93,000 tonnes at 0.76% Cu and 0.12 g/t Au for 710 tonnes of Cu and 360 oz of Au.

 

Competent Person's Indicated and Inferred Mineral Resource Estimate, Reported in Accordance with the JORC Code (2012 edition)

Further to the drilling conducted in 2021 and 2022, the Company commissioned AMS to complete an independent Mineral Resource Estimate. The Mineral Resource Estimate is based on all the available data from the waste dumps and hard rock area collected up to the 22nd of March 2022. Assay results for copper and silver are pending for 15 drillholes. 

 

The Mineral Resource Estimate has been reported in accordance with the Joint Ore Reserve Committee (JORC) Code, 2012 edition.

 

Summary of Resource Estimate and Reporting Criteria

In accordance with the JORC Code (2012), a summary of the material information used to estimate the updated Mineral Resource Estimate is set out below (for further detail please refer to the JORC (2012) Table 1, set out in the Appendix to this announcement).

 

Geology and Geological Interpretation

The geology of the two prospect areas at Troulli are described as follows:

 

The waste dumps constitute a heterogenous mixture of mineralised mine waste and ROM that has been deposited erratically during mine operations throughout the 1960s and 1970s.The material is a mixture of clay, sands and poorly sorted rock, ranging in size from cobbles to boulders. The material consist of two dominant horizons, the "A" and "B" horizons, the "B" horizon is a thin (typically 30 -50 cm) horizon containing supergene enriched copper which underlies the "A" horizon.

 

The hard rock area is comprised of volcanic rocks of the Troulli Inlier and identified as belonging to the Basal Group (BG), Lower Pillow Lavas and Upper Pillow Lavas.

 

The BG are the oldest rocks outcropping in the Troulli Inlier and are typically identified by an assemblage of visible or microscopic epidote, quartz, chlorite and the presence of Fe and Cu minerals including accessory pyrite. BG rocks generally resist erosion due to their pervasive silicification. Volcanic breccias are also widespread throughout the BG.

 

The Lower Pillow Lavas (LPL) typically have a dark brown to khaki colour with celadonite commonly forming coatings. Pillow rims are typically glassy, and quartz may form amygdales. The LPL are largely missing from the stratigraphic succession mapped around Troulli Mine-Kokkinopetra area.

 

The Upper Pillow Lavas (UPL) cover approximately 70% of the Troulli Inlier. They typically have a pink to light-grey colour, with olivine pseudomorphs, fresh green diopside, abundant calcite fracture fill and amygdales, and zeolites including analcime. Spaces between pillows in the UPL are often filled with a mixture of red calcareous sediments and umberiferous material. The UPL includes pillowed lavas, non-pillowed lava flows, interbedded tuffs and sediments, fine grained basaltic dykes and microgabbroic quartz-basaltic dykes.

 

Gossans, formed due to the oxidation of sulphide material and resultant acid generation, are recorded occurring across the Troulli Inlier, including: the Eastern Gossan Hill (directly to the south of the Troulli Mine pit); the gossan at Kokkinopetra; small gossans at Mavromoutti (300m east of Troulli Mine); and at Kokkinomoutti.

 

Drilling Techniques and Hole Spacing

The Mineral Resource Estimates includes information from 72 diamond and open hole percussion drillholes, totalling 3,393.30 metres and 208 trench channels for 692.17 metres.

Drill core diameter was PQ and HQ, depending upon depth. Double tube type was used for the diamond drilling. Some of the diamond core has been orientated. The open hole percussion drilling used a drill bit size of 20 cm / 8 inches.

Drilling within the hard rock area ranges from approximately 15-15 m x 30x30 m centres within the most densely tested area situated in the central area with several step-out put holes designed to explore for further mineralisation.

The dump areas have channel samples every 5 m along an excavated trench with a total of 11 trenches. The trenches are centred between 15 and 40 m apart.

The distribution of drillholes within the hard rock area is sufficient to establish the degree of geological and grade continuity appropriate for classification of Inferred and Indicated resources as defined by the JORC Code (2012).

The distribution of trench channel sampling within the dumps area is sufficient to establish the degree of geological and grade continuity appropriate for a JORC (2012) Inferred classification of resources.

Sampling and Sub-Sampling Techniques

Within the hard rock area, diamond drill core and percussion chips were used to obtain samples for geological logging and sampling. Diamond drilling geological and analytical data is recorded into excel, with recovery and RQD data recorded on paper at the drill site. Percussion chips were logged on paper at the drill site.

 

The whole drillhole is routinely sampled and intervals measure approximately 1 m, half core in the diamond holes and percussion riffle splits for two metres. Samples typically weigh between approximately 0.5-3kg, with half core and chip sub-samples retained for reference.

 

Trench channel samples within the dumps, were vertical channels, cut into the wall of an excavated trench (revealing the various dump horizons). Samples were dictated by the horizons and were generally a metre in length. The channel was around 10 cm in width, 5 cm in depth and weighed between 3-5 kg per sample. Geological and sample data was recorded on hard copy and later digitised.

 

Samples were sent to ALS Seville or SGS Ankara for preparation and multi-element analysis by ICP and Au by FA. Half core, percussion and channel samples were reduced to -75um and 50g sub-samples taken for analysis.

 

QC samples were regularly inserted into the diamond and trench sample stream. QC samples consisted of CRMs, blank material and ¼ core field duplicates. There were no QC samples inserted into the percussion drillholes sample stream. However, subsequent riffle split duplicates have shown acceptable repeatability.

 

Diamond Core Recovery

A total of 1,912 diamond core recovery measurements exists in the database for the drilling with average core recovery of 97%. Core recovery is measured over run lengths.

 

Estimation Methodology

The database for use as input for mineral resource modelling and estimation has been validated and verified by AMS. Micromine 2022 3D geological modelling and estimation software was used for import, validation and QC verification assessment, 3D solid modelling, geostatistics and block model interpolation, grade estimation and block model reporting. Data checks include checks for overlapping and missing intervals, drill hole trace errors, missing survey data, lithology and collars.

Wireframe solid models were created for the hard rock and waste dump areas, based on lithological contacts. The wireframes were generated using Micromine's implicit modelling functionality. Interpretation of the mineralised domains was guided by geological interpretation of the deposit incorporating lithological boundaries. Separate Copper and Gold grade domain shells representing mineralized and unmineralized material were created withing the Gossan and Breccia.

The wireframes were used to restrict a block model of cell size 10 mE x 10 mN x5 mZ in the hard rock area, based on drill spacing of ~15 m in parts of the gossan, sub blocking was used to preserve domain boundaries before being regularized to account for dilution. In the dump areas a block model with cell size 5 mE x 5 mN and variable Z was used. Using ordinary kriging Cu, Au and Ag values were interpolated on a domain-by-domain basis using incrementally larger search radii.

 

The resource has identified potentially economic material from surface to approximately five metres below surface within the dump areas and from surface to approximately 150 metres below within the hard rock area.

 

Bulk Density

 

The resource database contains 436 bulk density measurements within the hard rock area and 58 measurements within the dumps area. For the purpose of Mineral Resource Estimation, the following default bulk density values were assigned on a dry basis. Dump material was given a bulk density of 1.89 g/cm3; mineralized gossan, 2.14 g/cm3 and mineralized breccia, 2.36 g/cm3. For a hard rock deposit the bulk density values are low, however the gossan material is highly porous while the breccia is frequently subject to intense argillic alteration. Further bulk density measurements are advised to better understand the density of the different material types.

 

Classification Criteria

The Troulli deposit, has been classified as an Inferred and Indicated Mineral Resource in accordance with JORC (2012) based on a combination of drill spacing, geological confidence, grade continuity, and consideration of data quality. Indicated resources were classified in the Gossan only where drill spacing was completed on a ~15 m grid. Within the breccia further geological understanding and infill drilling is required before Indicated resources are warranted, all breccia material was classified as Inferred. All dump material was classified as Inferred.

 

Reasonable Prospect of Eventual Economic Extraction

Based on the orientations, thickness and depths to which the deposit has been modelled, open pit mining is the anticipated mining methodology. No pit optimization has been used to constrain the Resource at this stage as mineralization remains open laterally and use of pit optimization at this stage is considered overly conservative.

In the absence of metallurgical testwork (which is ongoing) the following parameters are assumed for all material types, for gold 95% recovery, 3% refining reduction costs, and a base gold price of $1900/oz, for copper 85% recovery and 5% smelter reductions, with a base copper price of $8000/t. Combined processing and G&A costs are envisaged to be in the region of $17/ROMt and mining by open pit in the region of $3. The following parameters indicate a break even mill cut-off grade of approximately 0.25% Cu equivalent or 0.3 g/t Gold equivalent, which seems reasonable for identifying material which has a reasonable prospect of eventual economic extraction. Silver credits are not considered in the cut-off determination and Ag is reported as a by-product only.

It is anticipated that no grade control or selective mining will be employed for the dump material which is reported as a global resource (no cut-off grade applied).

 

Environmental and Social Considerations

No Protected sites have been identified within the project area. It should be noted that the village of Troulloi is within less than 500 m of the mineral resource area and this may represent a permitting risk . Since the original granting of the historic Mining Lease at Troulli prior to the Turkish invasion in 1974, the village of Troulli recognised the potential economic importance of the mine to the local community.  In recent years due to the close proximity of the project to the village, the Council and local leaders took the highly pragmatic and extraordinary measure of having the mine property placed under the village jurisdiction so that it may have a voice in its future development and share in the potential benefit that the project could bring to the community.  To the Company's knowledge, this is the only such project in Cyprus whereby the Community has taken such a positive and pragmatic approach to a potential future mine development.

 

 

Resource Estimate Results

The approximate tonnage, grade and contained metals reported in this Inferred and Indicated Mineral Resource Estimates are presented in the following tables. The following should be noted:

· Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

· Further exploration is required to convert Inferred Mineral Resources into Indicated Mineral Resources, as the amount of data and geological understanding increases the grade and tonnage of Mineral Resources may increase or decrease.

· The effective date is 22nd March 2022.

· All Caerus drillholes have assays for Au, however multielement (including Cu and Ag assays) remain outstanding for 15 drillholes, 12 of which are within the Resource area and mainly within the breccia domain. Logging has identified sulphides including chalcopyrite in these drillholes and it seems reasonable to ignore these drillholes (treated as null) for the estimation of Cu. Once outstanding assays are received the Resource models should be updated. The additional data may serve to increase or decrease the tonnage and grade of the mineral resource estimate.

· Values presented in the table below are generated at full precision before being rounded to two significant figures to reflect the Competent Persons view of the accuracy of the estimate. As such discrepancy may be present between individual values and totals.

· Cu Equivalent (CuEq%) is used to determine material which has a reasonable prospect of eventual economic extraction for hard rock material. CuEq% = Cu%*0.871+Au g/t. It is the opinion of the Company and the Competent Person that all elements included in the CuEq calculation (Cu and Au) have a reasonable prospect of being recovered and sold. 

 

Table 1: Hard Rock Mineral Resource Estimates.

Cut-off

CuEq %

Tonnes

CuEq %

Cu

%

Au g/t

Ag g/t

Cu

(t)

Au (oz)

Ag

(oz)

Gossan

Indicated

0.50

210,000

1.1

0.20

1.1

6.3

410

7,100

42,000

0.40

230,000

1.1

0.19

1.0

6.3

440

7,300

46,000

0.30

260,000

0.99

0.18

0.93

6.3

460

7,700

52,000

0.26

260,000

0.97

0.18

0.91

6.2

460

7,700

53,000

Inferred

0.50

86,000

0.71

0.20

0.59

3.1

170

1,600

8,400

0.40

150,000

0.61

0.15

0.52

2.9

230

2,500

14,000

0.30

170,000

0.57

0.14

0.49

2.8

250

2,700

16,000

0.26

180,000

0.55

0.14

0.47

2.8

260

2,800

16,000

Breccia

Inferred

0.50

2,400,000

0.71

0.55

0.18

1.1

13,000

14,000

88,000

0.40

3,400,000

0.63

0.49

0.16

1.0

17,000

17,000

110,000

0.30

4,200,000

0.58

0.45

0.15

0.92

19,000

20,000

120,000

0.26

4,400,000

0.56

0.43

0.14

0.91

19,000

21,000

130,000

Total Hard Rock Indicated plus Inferred

0.50

2,700,000

0.74

0.51

0.26

1.6

14,000

22,000

140,000

0.40

3,800,000

0.65

0.46

0.22

1.4

17,000

27,000

170,000

0.30

4,600,000

0.60

0.42

0.20

1.3

20,000

30,000

190,000

0.26

4,900,000

0.58

0.41

0.20

1.3

20,000

31,000

200,000

 

Table 2: Tailings and dump material Inferred Resources, reported globally (no cut-off grade applied).

Area/Horizon

Tonnes

Cu

%

Au g/t

Ag g/t

Cu (t)

Au (oz)

Ag (oz)

Junction A

14,000

0.46

0.12

1.4

62

51

630

Main Zone A

45,000

0.4

0.13

1.1

180

190

1,500

Tailings A

14,000

0.21

0.17

1.4

30

79

630

 

 

 

 

 

 

 

 

Junction B

2,800

2.6

0

0

73

0

0

Main Zone B

11,000

2.9

0

0

320

0

0

Tailings B

6,000

0.6

0.17

0.98

36

32

190

 

 

 

 

 

 

 

 

Total Inferred

93,000

0.76

0.12

1.0

710

360

3,100

 

Supporting Images

Supporting images can be found at the following links.

·     Figure 1, overview map of exploration drilling and channel sampling, with approximate surface expression of resources. http://www.rns-pdf.londonstockexchange.com/rns/3923H_1-2022-4-5.pdf

· Figure 2, example cross section of hard rock Cu resource. http://www.rns-pdf.londonstockexchange.com/rns/3923H_2-2022-4-5.pdf

· Figure 3, example cross section of hard rock Au resource. http://www.rns-pdf.londonstockexchange.com/rns/3923H_3-2022-4-5.pdf

Competent Person's Statement (Mineral Resources)

 

The Troulli resource estimate was prepared by Mr R. J. Siddle, MSc, MAIG Senior Resource Geologist for Addison Mining Services Ltd. and Competent Person. Mr. Siddle is an independent Competent Person within the meaning of the JORC Code (2012). Mr. Siddle and has reviewed and verified the technical information that forms the basis of, and has been used in the preparation of, the Mineral Resource Estimate and this announcement, including analytical data, diamond and percussion drill hole logs, QC data, density measurements, and sampling. Mr. Siddle consents to the inclusion in this announcement of the matters based on the information, in the form and context in which it appears. Mr. Siddle has also reviewed and approved the technical information in his capacity as a Competent Person as defined by the JORC Code (2012) .

 

 

For further information on the Company, please contact:

 

 

 

Caerus Mineral Resources plc

Bezant Resources plc

Website

www.caerusmineralresources.com

www.bezantresources.com

Company Contact

Martyn Churchouse

Chief Executive Officer

[email protected]

+44 (0)1249 782162

 

Colin Bird
Executive Chairman

[email protected]

+44 (0)20 3416 3695 

 

Broker

Novum Securities

Jon Bellis

+44 (0) 20 7399 9425

 

Novum Securities

Jon Bellis

+44 (0) 20 7399 9400

 

Nominated Adviser

Not applicable

Beaumont Cornish Limited
Roland Cornish
+44 (0) 20 7628 3396

About Bezant Resources:  Bezant Resources is a focused on developing its pipeline of copper gold projects to provide a new generation of economically and socially sustainable mines and in addition to its joint venture with Caerus Mineral Resources in relation to Cyprus has copper projects in Namibia, Zambia, Philippines and Argentina and a manganese project in Botswana.

About Caerus Mineral Resources : Caerus Mineral Resources is a European focused copper-gold resource development and exploration company with a portfolio of mineral exploration licences located in Cyprus. The Country has a well-developed infrastructure and history of mineral exploration and production, which has been dormant over the last 50 years and provides significant undiscovered value and can be followed on Twitter at @CaerusMineral.

Qualified Person :In accordance with AIM Note for Mining and Oil & Gas Companies, June 2009 ("Guidance Note"), Colin Bird, CC.ENG, FIMMM, South African and UK Certified Mine Manager and Director of Bezant Resources Plc, with more than 40 years' experience mainly in hard rock mining, is the qualified person as defined in the Guidance Note of the London Stock Exchange, who has reviewed the technical information contained in this press release.

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic pursuant to the Market Abuse (Amendment) (EU Exit) regulations (SI 2019/310).

 

Glossary of technical terms :

"Ag"

silver;

"Au"

gold

"AuEq"

gold equivalent

"BG"

basal Group, oldest rocks outcropping in the Troulloi Inlier

"Breccia"

rock which has been fractured or broken insitue by processes in the earths crust, including fracturing by hydrothermal fluids perculating the rock under high pressure or by tectonic activity.

 

"CRM"

Certified Reference Material; standards.

"Cu"

copper

"CuEq"

copper Equivalent

"Fe"

iron

"g"

grammes;

"Gossan"

is intensely oxidized, weathered or decomposed rock, usually the upper and exposed part of a mineral deposit. The weathering process can result in enrichement of immobile metals and elements and depletion of mobile metals and elements.

 

"g/t"

grammes per tonne; equal to ppm

"ICP"

inductively coupled plasma;

"Inferred resource"

that part of a Mineral Resource for which quantity and grade (or quality) are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade (or quality) continuity. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes;

"Indicated resource"

that part of a Mineral Resource for which quantity, grade (or quality), densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit.

"JORC"

the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, as published by the Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia;

"JORC (2012)"

the 2012 edition of the JORC Code;

"km"

kilometre

"LPL"

Lower Pillow Lavas,

"m"

metre;

"Mineral Resource"

a concentration or occurrence of material of economic interest in or on the earth's crust in such form and quantity that there are reasonable and realistic prospects for eventual economic extraction. The location, quantity, grade, continuity, and other geological characteristics of a Mineral Resource are known, estimated from specific geological evidence and knowledge, or interpreted from a well-constrained and portrayed geological model;

"Mt"

million tonnes;

"oz"

troy ounce;

"ppm"

Parts per million, equal to g/t

"QA/QC"

quality assurance/quality control

"ROM"

Run of mine

"UPL"

Upper Pillow Lavas

"Zn"

zinc.

"%"

percent

 

 

 

APPENDIX: Table 1 (JORC 2012)

Section 1 Sampling Techniques and Data 

(Criteria in this section apply to all succeeding sections.)

Criteria

JORC Code explanation

AMS Commentary

Sampling techniques

· Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

· Diamond and open hole percussion drilling has been completed in the hard rock area in 2021/2022.

· Vertical trench channel sampling was employed in 2021/2022 around the dump areas.

· Trench channels were 1 m in length, weighing approximately 3-5 kg.

· Drill core samples were half core with an average length of 1 m.

· Nature of sampling is appropriate for both styles of mineralisation.

· Handheld preliminary XRF instruments were used as a guide for geologists throughout the trench sampling. No XRF data was used in the mineral resource estimates.

· Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used

· Channel and drillhole sampling were supervised by Caerus geologists and samples were constrained to lithological boundaries were possible.

· Efforts to ensure sample representativity for the drilling include:

Always sampling the same side of the core, while leaving the orientation line in place (where applicable).

Large diameter drilling was used to try and obtain the most representative sample possible.

No specific measures to ensure representativity for the trench channel samples were completed, other than sampling to horizons.

Trench samples tried to include a representative mix of the various sizes of material, i.e., clays, sands, pebbles, cobbles, and boulders.

· Aspects of the determination of mineralisation that are Material to the Public Report.

· Caerus Minerals sent all percussion, diamond and trench samples to ALS Seville or SGS Ankara for preparation and multi-element analysis by ICP and gold by FA.

· ALS Seville and SGS Ankara are accredited and conforms with ISO9001:2008.

· In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

· Diamond drill core, percussion chips and trench channel sampling methods were used to obtain samples for geological logging and sampling. 

· Trench logging was completed on hardcopy and transferred to Excel.

· Drill core logging is recorded digitally into Excel. Recovery and RQD data is recorded on paper at the drill site and later transferred to Excel.

· Percussion holes were logged on paper at the drill site and later transferred to Excel.

· The entire trench channel and drillhole is routinely sampled.

· Drillhole sampling intervals measure approximately 1 m, half core sent for analysis, with half core retained for reference.

· Percussion holes were riffle split composites of two metres, weighing approximately 0.5-3 kg.

· Trench channels were generally 1 m in length, weighing approximately 3-5 kg.

· Diamond, percussion and trench samples sent to ALS Seville or SGS Ankara for preparation and multi-element analysis by ICP and Au by FA.

· Half core, percussion chips and trench samples were dried, reduced to -75 microns and 50g sub-sample taken for analysis.

Drilling techniques

 

· Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

· A total of 72 diamond and open hole percussion drillholes, totalling 3,393.30 metres and 208 trench channels for 692.17 metres were used as the input databases for geological modelling and resource estimation.

· Drill core diameter was PQ and HQ, depending upon depth.

· Percussion hole diameter was 20cm / 8 inches.

· Standard tube was used for diamond drilling.

· Some angled diamond core was orientated using the reflex ACT III.

Drill sample recovery

 

· Method of recording and assessing core and chip sample recoveries and results assessed.

· Total core recovery, Rock Quality Designation (RQD were recorded on hardcopy tables for the diamond drilling at the drill site.

· A total of 1,912 core recovery measurements exists in the database for the drilling with average recovery of 97%. recovery is measured over run lengths.

· A selection of recoveries were verified by AMS on the site visits.

· Measures taken to maximise sample recovery and ensure representative nature of the samples.

· Sample recovery is 97%. However, efforts to maximise sample recovery for the drilling include:

Slowing drill rate in areas of broken ground,

Reducing run lengths in areas of broken ground.

Use of specific drilling fluids (stabilised slurries) in broken ground areas.

· Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

· Au and Cu grades were plotted in scattergrams against recovery data and no obvious relationship appeared.

· Additional work is required to ensure that there is no sample bias.

Logging

 

· Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

· Core logging was recorded directly into Excel, using templates provided by AMS.

· Standard Operating Procedures were provided by Wardell Armstrong and have been reviewed by AMS.

· Logging records lithology, textures, mineralisation, weathering, alteration and veining where appropriate.

· Geotechnical and geological data for the drill holes has been reviewed and verified during the site visits.

· The core and channel logging has been completed to a sufficient level of detail to support appropriate Mineral Resource Estimations.

 

· Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

· Drill core was qualitative and quantitative in nature.

· DH lithology, alteration, mineralisation and structural observations were recorded by variable interval based on characteristic similarities and change boundaries.

· Summary interval information was inputted to Excel, comprising code field and codes to describe logged lithology, alteration, mineralisation and major structure for the interval.

· Core is routinely photographed.

· Channel sample logging was qualitative and quantitative in nature and not photographed.

· Channel samples identified the horizons and cursory observations were appropriate.

· The total length and percentage of the relevant intersections logged.

· All drill core and percussion chips were logged in their entirety.

· Dump channel samples were logged in their entirety.

Sub-sampling techniques and sample preparation

 

· If core, whether cut or sawn and whether quarter, half or all core taken.

· Core was cut in half using a core saw. And percussion chips were split.

· Field duplicates are quarter core or riffle spilt.

· Trench channels were excavated using a geological hammer.  A channel approximately 10 cm wide and 5 cm deep was excavated in the wall of a trench to obtain a 3-5 kg sample.

· All sampling was supervised by a Company geologist.

· If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

· Channel samples were not split. They were sent to ALS Seville as 3-5 kg samples.

· Percussion samples were riffle split at the rig and were generally dry when split.

· For all sample types, the nature, quality and appropriateness of the sample preparation technique.

· Channel samples and drilling procedures, sample size, preparation and analysis are considered appropriate for the mineralogy and deposit type and are sufficient for use in mineral resource estimation.

· Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

· All half core was taken on the left side.

· Samples were constrained by lithology but were 1 m in length where possible or divided equally where necessary.

· No quality control procedures for representivity were employed as part of the trench channel sampling.

· Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

· Field duplicate scattergram analysis of the diamond drilling, percussion drilling and trench sampling samples shows a moderate to good correlation between the original and duplicate gold samples.

· Whether sample sizes are appropriate to the grain size of the material being sampled.

· Sample size is considered appropriate for the style of mineralization and grain size.

Quality of assay data and laboratory tests

 

· The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

· Commercial laboratories ALS Seville and SGS Ankara (ISO9001:2008) were used for drill chips, core and trench sampling.

· Both laboratories were used due to the long turnaround times for analysis.

· Multi-element analysis, including Pb, Zn, Cu, Ag by ICP-MS were completed on all samples.

· Au was completed by 50g FA.

· Over limits samples were re-analysed using ore grade methods of determination.

· Sample analytical techniques are considered in line with industry standard for this style of mineralisation.

· Given the expected grades, lithology and deposit type, the laboratory procedures are considered appropriate for this level of classification.

· AMS would recommend acid soluble analysis on oxide copper samples.

 

· For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

· No geophysical tools or spectrometers were used in the exploration and resource work.

· Handheld XRF instruments were used in the exploration for the trenching.

· No XRF data has been used in the mineral resource estimate work.

· Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

 

· Caerus Minerals conducted a QC programme of inserting quarter core field and channel duplicates, coarse blank material and CRMs into the diamond sample stream.

· No primary QC samples were inserted into the percussion sample stream. However, subsequent riffle split duplicate analysis shows no serious issues.

· No significant issues were identified in the QC data.

· The nature and quantity of QC data, procedures employed, level of accuracy and precision are considered acceptable for the assigned resource classification.  The quality of assay data and laboratory tests is acceptable for the resource classification for this deposit.

· Shewhart Plots of the QC samples showed no sample bias and CRMs returned within acceptable limits.

· Nelson rules of monitoring were applied.

· The nature and quantity of QC data for the channel sampling, procedures employed, level of accuracy and precision are considered acceptable for the assigned resource classification. 

 

Verification of sampling and assaying

 

· The verification of significant intersections by either independent or alternative company personnel.

· Drill core has been verified by AMS geologists on the two site visits.

· Mineralised intersections were discussed on the site visits.

· Four verification samples have been submitted to ALS Loughrea for independent analysis; the results are currently pending.

· No significant issues in the drill logging were observed.

· The logging is accurate and suitable for Mineral Resource Estimation.

 

· The use of twinned holes.

· Three percussion holes were "twinned". The reason was to extend the hole as the percussion hole terminated in mineralisation.

· TR21DH003 vs TR21DD013a

· TR21DH005 vs TR21DD025

· TR21DH006 vs TR21DD026

· The lithological logging varied between the percussion and diamond holes.

· Samples from diamond drilling were composited to two metres, in line with the percussion holes and compared in scattergrams.

· Gold analysis showed a reasonable correlation while Cu showed a reasonably poor correlation. However, there are outstanding Cu analyses.

· Additional statistical analysis is required in this space.

 

· Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

· GPS collar, survey excel data, and laboratory analytical data transferred from lab.csv, is copied and pasted into Excel.

· Recovery and RQD data is recorded on paper and transferred into Excel.

· AMS imported to Micromine 3D geological modelling software.

· AMS have imported and validated numerous databases and provided assistance and guidance, prior to delivery of the final database.

· The Company's database is comprised of two Excel workbooks (1 for the trenches and 1 for the hard rock area)

· Analytical certificates (used in the estimation) generated by the laboratory was imported into Micromine and cross-referenced against the Company's database by merging data and [IF] formulas and validations.

· No copy and paste errors were found in the assay file.

 

· Discuss any adjustment to assay data.

· No adjustment to the analytical data was considered necessary, other than conversion of ppm to % where applicable.  Raw analytical data remained unchanged.

Location of data points

 

· Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

· Trench channel samples were surveyed by DGPS.

· Drillhole collars were surveyed by DGPS up to drillhole 21, drillholes 22-40 are pending DPGS survey.

· Drillhole surveys were competed at 30 m regular intervals using a REFLEX™ tool.

 

· Specification of the grid system used.

· Data was captured and located using a Universal Transverse Mercator (UTM).

· The geographic coordinate reference system used by the client was World Geodetic System 1984 Zone 36 North ('WGS84 / UTM36N').

· Elevations are reported in metres above sea level.

· Quality and adequacy of topographic control.

· Topographic DTM taken from 1m resolution drone survey.

· Topographic control is sufficient for level of resource category.

Data spacing and distribution

 

· Data spacing for reporting of Exploration Results.

· Drilling within the hard rock area ranges from approximately 15-15m x 30x30m centres within the most densely tested area situated in the central area with several step-out put holes designed to explore for further mineralisation.

· The dump areas have channel samples every 5 m along an excavated trench with a total of 11 trenches. The trenches are centred between 15 and 40 m apart.

 

· Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

· The distribution of drillholes and dump channel sampling is sufficient to establish the degree of geological and grade continuity appropriate for JORC (2012) Indicated and Inferred classification of resources.

· Whether sample compositing has been applied.

· Samples were not composited

 

Orientation of data in relation to geological structure

 

· Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

· Drilling and sampling is generally vertical to intercept mineralised structures as close to perpendicular to dip and strike as practicable.

· Some angled holes are designed to intercept the basement contacts perpendicularly, however the orientation of mineralization in the breccia is poorly defined but interpreted to dip ~45 to the south.

· 3D review of sections shows that there appears to be no sample bias introduced by drilling orientation except for some drillholes which may be sub parallel to breccia mineralization.

· If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

· The hard rock mineralisation is a relatively flat lying gossan and vertical drillholes reduces the bias by sampling on a perpendicular plane where possible.

· The dumps are a relatively flat lying deposition horizon and vertical channels reduces the bias by sampling on a perpendicular plane where possible.

· Review of drilling and channel sections with the lithological units appear to show no obvious bias.

Sample security

 

· The measures taken to ensure sample security.

· Drill core, percussion chips and trench samples are transported from site to the logging facility in securely covered core boxes, polyweave bags (as appropriate) by Company geologists.

· Core is logged and sampled in secure facility.

· Samples are bagged in plastic bags and labelled with individual sample numbers. Each bag is sealed. 

· Plastic bags are placed in dry weave bags.

· Samples are delivered to laboratory by courier in secured polyweave rice sacks.

· Couriers transported the samples to ALS or SGS. The couriers sign for the samples and were then responsible for the chain of custody.

· All samples have arrived in good condition at ALS Seville / SGS Ankara.

 

Audits or reviews

 

· The results of any audits or reviews of sampling techniques and data.

· Two separate AMS site visits have been conducted to the Troulli Project.

· Data has also been reviewed regularly by AMS.

· The Company sends regular databases for import and validation.

· Findings were satisfactory and suitable for use in mineral resource estimation.

 

Section 2Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria

JORC Code explanation

AMS Comments

Mineral tenement and land tenure status

 

· Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

· Exploration licence number AE 4848 is located in central southern Cyprus, approximately 12 km north of the city of Larnaca.

· The licence covers an area of 1km².

· Exploration licence AE 4642 is wholly owned by New Cyprus Copper PA Ltd, a subsidiary of Caerus Mineral Resources.

· The licence is valid until late March 2027 subject to annual renewal over a 5 year granted term.

· The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

· All tenements are in good standing.

· AMS are unaware of any impediments that may affect the licences.

Exploration done by other parties

 

· Acknowledgment and appraisal of exploration by other parties.

· The licence is focused on the historic Troulli mine, which was prematurely closed in 1974 at the time of the Turkish Invasion.

· The mine was operated by a local company.

· There are no records of the exploration carried out or any production records. These were destroyed during the invasion.

 

Geology

 

· Deposit type, geological setting and style of mineralisation

· The waste dumps constitute a heterogenous mixture of mineralised mine waste and ROM that has been deposited erratically during mine operations throughout the 1960s and 1970s.The material is a mixture of clay, sands and poorly sorted rock, ranging in size from cobbles to boulders.

· The hard rock area is comprised of volcanic rocks of the Troulloi Inlier and identified as belonging to the Basal Group (BG), Lower Pillow Lavas and Upper Pillow Lavas.

· Troulli gold and copper mineralisation is hosted by pillow lavas and controlled by faulting and are typical of stockwork-type VMS mineralisation found in Cyprus.

· Main metallic minerals are pyrite and chalcopyrite with patch chalcocite, bornite, sphalerite, malachite and covellite.

 

Drill hole Information

 

· A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

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.

· No exploration results are being reported in this release.

· 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.

· No exploration results are being reported in this release.

Data aggregation methods

 

· In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

· No exploration results are being reported in this release.

· Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

· No exploration results are being reported in this release.

· The assumptions used for any reporting of metal equivalent values should be clearly stated.

· No exploration results are being reported in this release.

Relationship between mineralisation widths and intercept lengths

 

· These relationships are particularly important in the reporting of Exploration Results.

· No exploration results are being reported in this release.

· If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

· No exploration results are being reported in this release.

· 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').

· No exploration results are being reported in this release.

Diagrams

 

· Appropriate maps and sections (with scales) and tabulations of 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.

· No exploration results are being reported in this release.

Balanced reporting

 

· Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

· No exploration results are being reported in this release.

Other substantive exploration data

 

· Other exploration data, if meaningful and material, should be reported including (but not limited to): geological 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.

 

· Metallurgical testwork samples have been submitted to Jubilee Metals Group. The results are pending.

 

Further work

 

· The nature and scale of planned further work (e.g., tests for lateral extensions or depth extensions or large-scale step-out drilling).

· Surface drilling and trenching works testing open strike extent to the north and west and infill drilling within current inferred resource limits to increase confidence and resource class.

· Drilling on ancillary deposits within the mine area (i.e., Kokkinopetra to the east).

· Additional trenching in dumps area to the west of the Main Zone.

· Increased metallurgical and recovery test work including acid soluble Cu.

· Structural interpretation and 3D modelling.

 

· Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive

· Appropriate scaled diagrams and maps areas for areas of possible extensions are included within the AMS Troulli JORC (2012) Resource Statement and Technical Report.

 

 

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

Criteria

JORC Code explanation

AMS Comments

Database integrity

 

· Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.

· Analytical data is copied and pasted into Excel by the Company.

· AMS has cross referenced the analytical database with laboratory certificates in Micromine.

· Micromine 2022 3D geological modelling and estimation software was used for import, validation and QAQC verification assessment.

· Basic core and sample storage, handling, data capture are considered satisfactory.

· However, database management, transfer methodologies and data validation procedures require attention.

· The database is suitable for use for use in Mineral Resource Estimates for the hard rock and dump deposits.

· Data validation procedures used.

· Micromine 2022 software was used to validate the channel sampling and drillhole databases.

· Data checks include overlapping and missing intervals, trace errors, missing survey and coordinate data, lithology, consistency of sample lengths interval files. Checks for out-of-range values were also made.

· AMS have imported numerous database versions throughout the exploration programme and numerous minor typographical and depth errors were found within the database, consisting of overlapping intervals, code errors, exceeding hole depths, missing survey data etc.

· All errors were identified and fixed prior to modelling and estimation.

· The estimation database is considered robust and suitable for input into estimation.

Site visits

 

· Comment on any site visits undertaken by the Competent Person and the outcome of those visits.

 

· The Competent Person for the Resource Estimate is Mr. Richard Siddle.

· Mr Siddle's site visit was completed on 28th to the 30th of March 2022.

· Lewis Harvey (AMS Senior Exploration Geologist) has also visited the site to carry out additional checks and assist with data preparation, prior to resource estimation. Mr Harvey's visit was completed between the 14th and 17th of February 2022.

· The purposes of the visits were to verify data collection methodologies, site location and infrastructure, geology and verify the presence of mineralisation.

· Site visits have not identified any issues relating to the reporting of mineral resources.

· If no site visits have been undertaken indicate why this is the case.

· N/A

Geological interpretation

 

· Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit.

· Based upon the level of available information, geological and deposit complexity, interpretation of the main lithological boundaries and controls to mineralisation are considered satisfactory and appropriate for the assigned resource classes.

· Controls on the gossan mineralization are reasonably tight in areas of closest spaced drilling.

· Further drilling is required to better understand mineralization within the breccia.

· The dump deposition is highly variable and is assigned a resource class appropriate to its variability.

 

· Nature of the data used and of any assumptions made.

· Drillhole lithological and analytical information, dump channel sampling and analytical information, and prospect scale surface geological mapping, were used in the geological interpretation and creation of solid wireframes.

· The hard rock mineralisation is modelled as a flat lying gossanous unit, sitting atop of a mineralised breccia.

· The breccia is currently interpreted to dip ~45 degrees to the south.

· The dumps form a highly variable and heterogenous mix of mineralised waste and ROM.

· It is assumed that the deposition by truck was extremely variable with areas of higher and lower grade.

· There are no other assumptions made.

· The effect, if any, of alternative interpretations on Mineral Resource estimation.

· A small mafic dyke was intercepted in one hole which may affect future models.

· However, at the level of information this interpretation remains unsupported by drill data.

· Further interpretation and incorporation of faulting into the model is required.

· The use of geology in guiding and controlling Mineral Resource estimation.

· Drillhole and trench channel lithological and analytical information were used in geological interpretation.

· Logging of the gossan and breccia were used to nest grade shells of mineralized and unmineralized material within those unit.

· The factors affecting continuity both of grade and geology.

· The understanding of grade continuity is reflected in the classification of the mineral resources.

Dimensions

 

· The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.

· Dumps

The resource has identified potentially economic waste / ROM from surface to approximately five metres below surface.

Mineralisation is currently tested across a 300 m "strike" length (over two dump areas) and between 30 and 100 m in width.

· Hard rock area

The resource has identified potentially economic waste / ROM from surface to approximately 100 metres below surface.

Mineralisation is currently tested across a 350 m strike length and approximately 350 m in width.

Mineralisation is trending approximately 340 degrees.

 

Estimation and modelling techniques

 

· The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.

· AMS completed wireframe solid models for the dumps and hard rock area based on lithological boundaries and created nested grade shells where applicable.

 

· The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.

· There are no previous estimates.

· There are no historical production records available to validate against.

· The assumptions made regarding recovery of by-products.

· In the absence of metallurgical testwork (which is ongoing) the following parameters are assumed for all material types, for gold 95% recovery, 3% refining reduction costs, and a base gold price of $1900/oz, for copper 85% recovery and 5% smelter reductions, with a base copper price of $8000/t. Combined processing and G&A costs are envisaged to be in the region of $17/ROMt and mining by open pit in the region of $3. The following parameters indicate a break even mill cut-off grade of approximately 0.25% Cu equivalent or 0.3 g/t Gold equivalent, which seems reasonable for identifying material which has a reasonable prospect of eventual economic extraction. Silver credits are not considered in the cut-off determination and Ag is reported as a by-product only.

· It is anticipated that no grade control or selective mining will be employed for the dump material which is reported as a global resource (no cut-off grade applied).

· Estimation of deleterious elements or other non-grade variables of economic significance (e.g. sulphur for acid mine drainage characterisation).

· No estimation of deleterious elements has been made at this time.

· In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.

· The block spacing is 1/2 to 1/5 of the data spacing.

 

· Any assumptions behind modelling of selective mining units.

· No selectivity is assumed for the dump area and it is anticipated that the majority of the material will be extracted without grade control or selection.

· In the hard rock area 5 m flitches with a minimum mining width of 5 m is assumed. This was incorporated into the block model by regularizing the block model.

· Any assumptions about correlation between variables.

· Cu and Au domains were modelled separately, Ag was modelled as part of the Au domain.

· Description of how the geological interpretation was used to control the resource estimates.

· The dump and hard rock wireframes were generated using Micromine's implicit geology modelling functionality.

· In the hard rock area the mineralization was constrained to the gossan and breccia solid models.

· Discussion of basis for using or not using grade cutting or capping.

· Top cutting was not applied.

· In the estimates of dump material gold grades greater than 0.5 g/t Au were clamped to a 10m radius and ignored outside of this radius. This threshold was based on inspection of the histograms for Au in the domain and inspection of grades in cross section.

· The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.

· The block model was validated visually in cross section to inspect assay grades vs block grades.

· Particular attention was given to areas of low grade that may be influenced by higher grade samples within search radii.

· The mean values of the input data were compared against the output data along with comparison of histograms.

·

Moisture

 

· Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.

· Tonnages are estimated on a dry basis.

Cut-off parameters

 

· The basis of the adopted cut-off grade(s) or quality parameters applied.

· For the purpose of reporting resources with reasonable prospect of eventual economic extraction a cut-off grade of 0.26% CuEq was used.

Mining factors or assumptions

 

· Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining 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.

· It is assumed mining will be by open pit methods.

· Mining is cost is expected to be in the region of $3 per tonne

Metallurgical factors or assumptions

 

· The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.

· In the absence of metallurgical testwork (which is ongoing) the following parameters are assumed for all material types, for gold 95% recovery, 3% refining reduction costs, and a base gold price of $1900/oz, for copper 85% recovery and 5% smelter reductions, with a base copper price of $8000/t. Combined processing and G&A costs are envisaged to be in the region of $17/ROMt and mining by open pit in the region of $3. The following parameters indicate a break even mill cut-off grade of approximately 0.25% Cu equivalent or 0.3 g/t Gold equivalent, which seems reasonable for identifying material which has a reasonable prospect of eventual economic extraction. Silver credits are not considered in the cut-off determination and Ag is reported as a by-product only.

· It is anticipated that no grade control or selective mining will be employed for the dump material which is reported as a global resource (no cut-off grade applied).…

 

Environmental factors or assumptions

 

· Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to 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.

 

· Environmental impact assessment studies commenced in March 2022. The outcomes are not available.

· AMS has not reviewed any Environmental, Social and Permitting (ES&P) documents or licences.

· No Protected sites have been identified within the project area. It should be noted that the village of Troulloi is within less than 500 m of the mineral resource area and this may represent a permitting risk. Since the original granting of the historic Mining Lease at Troulli prior to the Turkish invasion in 1974, the village of Troulli recognised the potential economic importance of the mine to the local community.  In recent years due to the close proximity of the project to the village, the Council and local leaders took the highly pragmatic and extraordinary measure of having the mine property placed under the village jurisdiction so that it may have a voice in its future development and share in the potential benefit that the project could bring to the community.  To the Company's knowledge, this is the only such project in Cyprus whereby the Community has taken such a positive and pragmatic approach to a potential future mine development.

Bulk density

 

· Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.

· The bulk density was calculated using the Archimedes method weighting the samples in air and water using a precision balance.

· Checks were made on core using the weight vs volume method.

· Bulk density within the dumps was calculated using the volume of water vs weight of material extracted method.

· Several bulk density measurements were carried out on most of the drillholes, in both mineralised and un-mineralised samples.

· The resource database contains 436 bulk density measurements within the hard rock area and 58 measurements within the dumps area.

·

· The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit.

· No bulk material was measured.

· Samples were sealed to account for porosity and this is reflected in the low bulk density used in estimation.

· Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.

· The resource database contains 436 bulk density measurements within the hard rock area and 58 measurements within the dumps area. For the purpose of Mineral Resource Estimation, the following default bulk density values were assigned on a dry basis. Dump material was given a bulk density of 1.89 g/cm3; mineralized gossan, 2.14 g/cm3 and mineralized breccia, 2.36 g/cm3. For a hard rock deposit the bulk density values are low, however the gossan material is highly porous while the breccia is frequently subject to intense argillic alteration. Further bulk density measurements are advised to better understand the density of the different material types.

Classification

 

· The basis for the classification of the Mineral Resources into varying confidence categories.

· In the resource estimation of the Troulli project, the above definitions have been taken into consideration when applying resource classification.

· It was the opinion of the Competent Person that within some areas of the deposit sample density, Quality Control data, density determinations and drilling recoveries were sufficient to allow classification of some Indicated Resources.

·

· Whether appropriate account has been taken of all relevant factors (i.e. relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).

· The Troulli deposit, has been classified as an Inferred and Indicated Mineral Resource in accordance with JORC (2012) based on a combination of drill spacing, geological confidence, grade continuity, and consideration of data quality. Indicated resources were classified in the Gossan only where drill spacing was completed on a ~15 m grid. Within the breccia further geological understanding and infill drilling is required before Indicated resources are warranted, all breccia material was classified as Inferred. All dump material was classified as Inferred.

· Whether the result appropriately reflects the Competent Person's view of the deposit.

· The result reflects the quality and quantity of data, geostatistical analysis of correlation and relationship between mineralised samples and the Competent Person's view of the deposit.

·

Audits or reviews

 

· The results of any audits or reviews of Mineral Resource estimates.

· The 2022 Mineral Resource has been reviewed internally as part of normal validation processes by AMS.

· The AMS 2022 resource estimate has not been audited or reviewed externally at the time of writing.

 

Discussion of relative accuracy/ confidence

 

· Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.

· It is the Competent Person's opinion that the level of confidence is consistent with the level of Inferred and Indicated categorised mineral resources.

 

· The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.

· The estimate of dump material should be considered a global estimate.

· Within the Gossan material which is classified as measured the estimate can be considered a local estimate.

· Inferred resources should be considered a global estimate.

· These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

· There are no historical production records available from the deposit.

 

 

 

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