Post on 10-Apr-2018
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AS
15 November 2013
Regal acquires an interest in an advanced high-grade Copper/Cobalt
Project in the Katanga Copperbelt, DRC
Regal Resources Limited (“Regal” or “the Company”) (ASX:RER) is pleased to announce the signing of a
Binding Memorandum of Understanding (“MoU”) with Traxys Europe SA (“Traxys”) to acquire, explore and
develop a potentially significant Copper and Cobalt project located in the Katanga Province of the
Democratic Republic of Congo (DRC).
Historic drill results have confirmed the potential of the project. Some of the more significant intersections
include:
o DKAL_DD006: 90.23m @ 3.38% Cu and 0.93% Co
o DKAL_DD007: 77.60m @ 4.14% Cu and 0.57% Co
o DKAL_DD019: 70.00m @ 2.22% Cu and 0.84% Co
o DKAL_DD005: 56.30m @ 2.98% Cu and 0.46% Co
o DKAL_DD019: 47.00m @ 2.07% Cu and 0.43% Co
The Kalongwe project (PR 12198) is held by La Generale Industrielle et Commerciale au Congo SPRL
(“GICC”), a DRC Registered Company. Regal and Traxys have entered into a formal and binding agreement
with GICC to acquire an immediate 60% interest in the project with the right to acquire a further 20%
interest.
Both agreements represent major milestones for Regal in achieving its strategic objective of fast tracking
the delineation of significant mineral resources and of developing early cash flow opportunities.
Highlights
• The project is located within the world class Central African Copperbelt, and is situated some 60km
from Kolwezi, an established mining centre in the Katanga Province DRC, and 15km from Kamoa,
considered to be Africa’s largest high grade copper discovery. Indicated Mineral Resources of 739
million tonnes grading 2.67% Cu
• Previous exploration drilling and exploration results indicate that the project has the potential to
support a resource of several hundred thousand tonnes of copper metal.
ABN 23 106 296 106
Level 14, 31 Queen Street
Melbourne Victoria 3000
T (+61 3) 8610 8633
F (+61 3) 8610 8666
W regalresources.com.au
ASX Announcement
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• At surface there is extensive outcrop of high grade Copper and Cobalt mineralisation. Oxide
mineralisation has been intersected in drill holes to a depth of at least 200m below surface.
• Mineralisation is of similar grade to Cu mines operating in the region.
• There is significant exploration potential, with numerous targets already defined over 2.7km of strike.
• Regal has a highly experienced copper exploration team with a track record of success of exploration
in the DRC and who have also been involved in the development of a copper mine in Katanga.
• The project offers the potential for early positive cash flow generation from semi-mechanised mining.
• Funding for acquisition, exploration and feasibility studies will be shared on a 50/50 basis with Traxys,
which helps to de-risk the path to the development of the project.
• Traxys is a leading international commodities trader as well as a global leader in financing, marketing,
distribution and financial services for the mining, metals and minerals industries.
• Regal and Traxys are jointly reviewing other copper opportunities in the DRC with the intention of
building a portfolio of strategically important projects.
Managing Director of Regal, David Young, said:
“Kalongwe presents an exciting opportunity for Regal, and appears to be an ideal project for the
Company in its current phase of development. Not only does it provide Regal with exposure to a highly
prospective copper project but it also limits, through risk sharing with a strong financial partner, the
Company’s level of investment commitment. In addition there is an existing exploration and drilling
database of substantial value that will enable the Company to advance rapidly to a resource drilling
phase, subject to confirmation of the previous drilling results. Further, there is the potential to
generate early cash flow from the semi-mechanised mining of outcropping mineralisation. Profits
generated can be used to support future exploration programmes.”
About Traxys
Traxys is a major metals and natural resources marketing, distribution, supply chain management and
trading firm with over 300 employees worldwide, over 20 global offices, and has become a global leader in
financing, marketing, distribution and financial services for the mining, metals and minerals industries. It
had an annual turnover in excess of USD 6 Billion.
The Kalongwe Copper-Cobalt Project
The Kalongwe Cu-Co deposit is located within PR 12198 which is situated in the Katanga province of DRC
approximately 60km south west of Kolwezi, an established mining and service centre, that lies close to the
western extent of the Central African Copperbelt (CACB) (Figure 1). The CACB is one of the most important
copper producing regions in the world accounting for an estimated 8% of the global mining production of
copper and is estimated to contain 50% of the copper known to exist in sediment hosted copper deposits.
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Figure 1: Map of the Central African Copper belt showing the main Cu-Co deposits and location of Kalongwe
Mineralisation at Kalongwe was first discovered in 1902, when secondary copper mineralisation was
observed to be outcropping, but little further exploration took place until 2005 when the project was
acquired by a subsidiary of Ivanplats Ltd. At around the time Ivanplats was involved Kalongwe they were
also active in delineating the giant Kamoa Copper deposit, which is located some 15kms north of Kalongwe.
Kamoa is rated as Africa's largest high-grade copper discovery and the world's largest undeveloped high-
grade copper discovery with an Indicated Mineral Resources of 739 million tonnes grading 2.67% copper,
containing 43.5 billion pounds of copper.
During 2006 and 2007 Ivanplats completed approximately 12,000m of drilling within PR 12198, of which
approximately 10,000m was diamond drilling. The programmes were undertaken by African Mining
Consultants (AMC).
Further information and commentary is set out in Annexure 2.
The drill holes were generally sited on 100m x 100m centres and most of the drilling was targeted at testing
the mineralisation of the known Kalongwe deposit, hosted by one of a series of fragments (“ecaille”) of the
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Mine Series sequence of the Roan Group, that have been mapped within the boundaries of PR 12198 over
a distance of approximately 2.7km and are exposed in the core of an anticline structure (Figure 2).
Figure 2: Re-drawn historic geology map of the prospect PR 12198 area and drilling reported by Ivanplats
The drilling was successful in defining numerous zones of high grade copper and cobalt oxide mineralisation
at the Kalongwe ecaille and also intersecting copper mineralisation in some of the other fragments of the
Roan Group.
A listing of the significant high grade copper intercepts reported at a 0.5% Cu cut off are shown in Table 1.
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Table 1: Significant drill hole intercepts at 0.5% Cu cut off as extracted from the AMC Drilling Report:
Hole ID Utm X Utm Y From (m) To (m) Intersected
Thickness (m)
Cu % Co %
DKAL_DD001 306402 8781701 90.5 110.0 19.5 3.13 0.19
DKAL_DD001 306402 8781701 133.5 160.5 27.0 2.11 0.61
DKAL_DD004 304300 8780800 128.0 161.6 33.6 2.31 0.28
DKAL_DD005 304700 8780900 71.0 127.3 56.3 2.98 0.46
DKAL_DD006 306337 8781727 30.77 121.0 90.23 3.38 0.93
DKAL_DD006 306337 8781727 71.00 168.47 41.47 3.98 0.37
DKAL_DD007 306385 8781650 49.7 126.3 77.6 4.14 0.57
DKAL_DD010 306380 8781750 49.4 128.7 79.3 3.40 0.34
DKAL_DD012 306465 8781750 103.0 141.0 38.0 1.93 0.18
DKAL_DD017 306324 8781582 111.0 131.0 20.0 3.61 0.19
DKAL_DD018 306200 8781600 8.0 40.0 32.0 2.94 0.54
DKAL_DD019 307500 8784600 32.0 102.0 70.0 2.22 0.84
DKAL_DD021 307500 8784800 18.0 65.0 47.0 2.07 0.43
DKAL_DD025 306300 8781800 36.0 60.0 24.0 2.02 0.88
DKAL_DD030 306500 8781800 135.0 165.0 30.0 2.17 0.14
DKAL_DD032 306300 8781500 65.0 83.1 18.1 2.21 0.65
DKAL_DD032 306300 8781500 91.5 104.0 12.5 3.04 0.72
DKAL_DD058 306500 8781750 142.0 146.0 4.0 3.17 0.20
Note: The mineralised interval length of intercepts shown in the table are down-hole distances and are not corrected for angle of
dip.
Coordinates for holes drilled in the programme are presented in Table 2 – at end of the Announcement as Annexure 1.
The style of mineralisation within PR 12198 is considered typical of the stratiform Cu-Co deposits found in
the Congolese part of the CACB and hosts over 90% of the known copper mines.
In the project area there is extensive outcrop of mineralisation (Figure 3) and field evidence suggest the
rocks hosting the mineralization have been structurally overprinted which has an important effect on the
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control of the location of the mineralisation. The tenor of the mineralisation has been significantly
upgraded through supergene enrichment (weathering), (Figure 3).
At the Kalongwe deposit mineralisation dips at a moderate to steep angle to the southeast and has so far
been delineated over a strike length of 450 metres (Figure 4).
Historic drill results indicate that oxide mineralisation extends to depths of up to 200m below surface and
sulphide mineralisation has been intersected in some of the deeper holes.
Figure 3: Photograph of outcropping mineralisation at Kalongwe
The structural overprint of the original mineralisation setting is considered to have important positive
implications for the possible expansion of the current known extent of mineralisation and the Company
plans to target the core of the Kalongwe anticline (over a strike length of 2.7km) which is estimated to hold
significant exploration upside, by testing through a systematic exploration programme.
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Figure 4: Cross section of the deposit area and down-hole length intercepts for copper and cobalt mineralisation (Re-
drawn from Ivanplats Drilling Report)
Future Work Plan
The Regal/Traxys technical team has been able to confirm over the course of several site visits that
significant mineralisation occurs at surface (see Figure 3). Regal has also reviewed technical information
from the Ivanplats drilling programme that was prepared by AMC and provided to the Company by GICC.
The Regal/Traxys team intends, subject to the satisfactory completion of a Stage 1 validation programme,
to rapidly progress exploration through to a resource delineation and infill drilling programmes over the
coming 12 months with the aim of delivering a JORC compliant mineral resource.
The initial work programme will involve a planned 1,000 to 1500m diamond drilling programme with the
objective of:
• verifying historic data;
• twinning previous drill holes;
• testing for continuity of mineralization between drill holes; and
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• the deepening of some of the previous drill holes.
Memorandum Of Understanding
The signing of the MoU is a significant event for the Company and represents an endorsement by Traxys of
the project, and of the Regal management and exploration team. The agreement consolidates the working
relationship the Company has established with Traxys and offers a route to potential access to funding for
future mine development.
Regal and Traxys have agreed the following key terms as part of the binding MoU:
1. The Companies have entered into an agreement to acquire an immediate 60% of an exploration permit
in the DRC for the purpose of developing a mining project.
2. Regal’s initial interest in the project will be 30% and Traxys will be 30%.
3. Regal will be responsible for managing exploration activities.
4. Regal and Traxys will contribute on an equal basis to the acquisition cost. A summary of the terms
agreed with GICC, the holder of the permit, are that GICC will be paid an initial USD1M and will receive
a further USD1M 12 months after signature of the purchase agreement. GICC undertakes to transfer
title of permit PR 12198 to a newly incorporated DRC operating company, as soon as possible after the
first payment has been made.
5. The title of PR 12198 will be transferred to a newly incorporated DRC company, in which Regal and
Traxys will hold an initial 30% interest each and CICC will have a 40% interest.
6. Both parties, should they decide to exercise their right, will also contribute equally to the future
purchase of an additional 20% in the project and the additional interest will be shared between the two
parties.
7. Each party will contribute up to USD400,000 for a first phase, Stage 1, exploration programme and will
continue to fund exploration on a 50/50 basis – while they remain involved in the project.
8. If one party withdraws and the other party remains in the project the interest of the withdrawing party
will be diluted in accordance to a standard dilution formula.
9. In the event the project is developed and commences operations , and Traxys has at least a 30% interest
in the project, Traxys will then have offtake rights on terms to be mutually agreed based on prevailing
market conditions and benchmarked on terms of similar agreements between arm’s length parties.
10. Regal and Traxys intend to jointly conduct artisanal mining/semi-mechanised operations on the permit
and to share their entitlement to the profits. This mining activity is expected to produce a very early
positive cash flow.
11. Regal has entered into a separate agreement with its Regal SK joint venture partner, Afrimines. Under
the terms of this agreement Afrimines will immediately advance Regal a sum of USD500,000. The loan
will be repaid from Regal’s share of future profits from any semi mechanised mining activities.
The purpose of the loan is to enable Regal to make its contribution to the initial payment due to the vendor
of the Project.
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Regal’s cash position as reported in the September Quarterly Report was AUD3M.
Forward-Looking Statements:
This release contains statements that are "forward-looking". Generally, the words "expect," "intend,"
"estimate," "will" and similar expressions identify forward-looking statements. By their very nature,
forward-looking statements are subject to known and unknown risks and uncertainties that may cause our
actual results, performance or achievements, or that of our industry, to differ materially from those
expressed or implied in any of our forward-looking statements. Statements in this release regarding the
Company's business or proposed business, which are not historical facts, are "forward looking" statements
that involve risks and uncertainties, such as estimates and statements that describe the Company's future
plans, objectives or goals, including words to the effect that the Company or management expects a stated
condition or result to occur. Since forward-looking statements address future events and conditions, by
their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ
materially from those currently anticipated in such statements. The potential quantity and grade of the
Exploration Target is conceptual in nature and there has been insufficient exploration to define a Mineral
Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.
Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of
the date they are made.
Competent Persons Statement
Scientific or technical information in this release has been prepared by Mr David Young and Dr Simon
Dorling and, the Company’s Managing and Technical Directors. Mr David Young and Dr Simon Dorling are
members of the Australasian Institute of Geoscientists (MAIG) and have sufficient experience which is
relevant to the style of mineralisation under consideration and to the activity which they are undertaking
to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code). Mr David Young and Dr Simon
Dorling consent to the inclusion in this report of the Information, in the form and context in which it
appears.
For further information please contact Mr David Young on (+61) 3 8610 8633.
David Young
Managing Director
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Annexure 1
Table 2: Drilling reported by Ivanplats for the Kalongwe areas.
HOLE_ID Drill_Type UTM_E UTM_N RL EOH Azimuth Dip
DKAL_DD001 DD 306402 8781701 1341 196 360 -90
DKAL_DD002 DD 306400 8781600 1351 304 360 -90
DKAL_DD003 DD 306500 8781700 1340 526 360 -90
DKAL_DD004 DD 306400 8781800 1334 276 360 -90
DKAL_DD005 DD 306303 8781697 1339 127 360 -90
DKAL_DD006 DD 306336 8781727 1337 199 252 -60
DKAL_DD007 DD 306372 8781649 1344 217 270 -60
DKAL_DD008 DD 306376 8781552 1347 197 270 -60
DKAL_DD009 DD 306276 8781452 1346 168 270 -60
DKAL_DD010 DD 306351 8781751 1336 213 270 -60
DKAL_DD011 DD 306476 8781650 1342 141 270 -60
DKAL_DD012 DD 306475 8781749 1337 224 270 -60
DKAL_DD015 DD 306300 8781598 1336 18 360 -90
DKAL_DD016 DD 306198 8781507 1335 205 360 -90
DKAL_DD017 DD 306320 8781583 1340 179 360 -90
DKAL_DD018 DD 306222 8781599 1343 139 360 -90
DKAL_DD019 DD 306322 8781696 1340 208 360 -90
DKAL_DD020 DD 306104 8781605 1344 202 360 -90
DKAL_DD021 DD 306208 8781695 1339 120 360 -90
DKAL_DD022 DD 306102 8781704 1334 205 360 -90
DKAL_DD023 DD 306198 8781700 1339 225 360 -90
DKAL_DD024 DD 306199 8781795 1333 164 360 -90
DKAL_DD025 DD 306302 8781801 1339 200 360 -90
DKAL_DD026 DD 306007 8781698 1329 168 360 -90
DKAL_DD027 DD 306322 8781894 1337 193 360 -90
DKAL_DD028 DD 306000 8781600 1334 201 360 -90
DKAL_DD029 DD 306401 8781894 1335 90 360 -90
DKAL_DD030 DD 306498 8781799 1335 322 360 -90
DKAL_DD031 DD 306100 8781503 1344 205 270 -90
DKAL_DD032 DD 306309 8781502 1343 200 360 -90
DKAL_DD033 DD 306499 8781605 1345 324 360 -90
DKAL_DD034 DD 306398 8781501 1343 374 270 -90
DKAL_DD035 DD 306494 8781499 1341 309 360 -90
DKAL_DD036 DD 306399 8781403 1342 282 360 -90
DKAL_DD037 DD 306308 8781401 1343 285 360 -90
DKAL_DD038 DD 306304 8781307 1341 213 360 -90
DKAL_DD039 DD 306200 8781301 1342 210 270 -90
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HOLE_ID Drill_Type UTM_E UTM_N RL EOH Azimuth Dip
DKAL_DD040 DD 306205 8781401 1342 241 360 -90
DKAL_DD058 DD 306502 8781757 1336 200 360 -90
DKAL_DD059 DD 306590 8781695 1339 207 360 -90
DKAL_DD060 DD 306595 8781745 1336 252 360 -90
DKAL_DD061 DD 306593 8781806 1333 253 360 -90
DKAL_DD063 DD 306605 8781843 1331 247 360 -90
DKAL_DD064 DD 306703 8781802 1334 49 360 -90
DKAL_DD066 DD 306795 8781787 1338 276 360 -90
DKAL_DD067 DD 306702 8781853 1332 19 360 -90
DKAL_DD068 DD 306501 8781904 1328 138 360 -90
DKAL_DD069 DD 306597 8781904 1327 151 360 -90
DKAL_DD070 DD 306791 8781901 1334 87 360 -90
DKAL_DD071 DD 306702 8781897 1332 94 360 -90
DKAL_DD072 DD 306724 8781847 1334 167 360 -90
DKAL_DD074 DD 306776 8781862 1335 46 360 -90
TOTAL 10,454
DKAL_RC069 RC 305900 8781500 1320 117 360 -90
DKAL_RC070 RC 305900 8781400 1320 100 360 -90
DKAL_RC071 RC 305900 8781300 1320 123 360 -90
DKAL_RC072 RC 305900 8781200 1320 136 360 -90
DKAL_RC073 RC 306000 8781300 1320 130 360 -90
DKAL_RC074 RC 306000 8781400 1320 130 360 -90
DKAL_RC075 RC 306007 8781496 1339 100 360 -90
DKAL_RC076 RC 306099 8781400 1346 110 360 -90
DKAL_RC077 RC 306100 8781300 1320 86 360 -90
DKAL_RC078 RC 305900 8781300 1400 0 360 -90
DKAL_RC079 RC 305900 8781400 1400 0 360 -90
DKAL_RC080 RC 305900 8781500 1400 0 360 -90
DKAL_RC081 RC 305900 8781600 1400 0 360 -90
DKAL_RC082 RC 305900 8781700 1320 104 360 -90
DKAL_RC083 RC 305900 8781600 1320 103 360 -90
TOATL 1,239
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Annexure 2
JORC Code, 2012 Edition – Table 1
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling
techniques
• Nature and quality of sampling (eg 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.
• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
• Aspects of the determination of mineralisation that are Material to the Public Report.
• In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘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 (eg submarine nodules) may warrant disclosure of detailed information.
• All results reported in this Press Release are extracted from a Drilling Report prepared by African Mining Consultants, of behalf of African Minerals (Barbados) sprl a subsidiary of Ivanplats Ltd.
• The Company has not undertaken any exploratory work on PR 12198.
• The Sampling Techniques are not detailed in the technical report.
Drilling techniques • Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg 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).
• The Drilling Report specifies that RC and Diamond drilling techniques were used in the project area. Details are given in the Table 1 above.
Drill sample
recovery
• Method of recording and assessing core and chip sample recoveries and results assessed.
• Measures taken to maximise sample recovery and ensure representative nature of the samples.
• 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.
• The drill sample recovery are not detailed in the Drilling Report.
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Criteria JORC Code explanation Commentary
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.
• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
• The total length and percentage of the relevant intersections logged.
• The geological logs were recorded manually on paper logs by the on-site geologists. Selective re-logging of this data was conducted preceding entry onto an Excel spreadsheet. These data include geology, weathering, alteration and information on visible mineralisation identified.
Sub-sampling
techniques and
sample
preparation
• If core, whether cut or sawn and whether quarter, half or all core taken.
• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
• For all sample types, the nature, quality and appropriateness of the sample preparation technique.
• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
• 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.
• Whether sample sizes are appropriate to the grain size of the material being sampled.
• The Sub-Sampling Techniques and sample preparation are not detailed in the technical report.
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.
• 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.
• Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.
• The quality of assay and laboratory tests are not detailed in the technical report.
Verification of
sampling and
assaying
• The verification of significant intersections by either independent or alternative company personnel.
• The use of twinned holes.
• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
• Discuss any adjustment to assay data.
• The verification of sampling and assaying are not detailed in the Drilling Report.
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Criteria JORC Code explanation Commentary
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.
• Specification of the grid system used.
• Quality and adequacy of topographic control.
• The Drilling Report specifies that all holes have UTM (WGS84) and local grid coordinates. The company has not as yet independently verified the collar positions.
Data spacing and
distribution
• Data spacing for reporting of Exploration Results.
• 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.
• Whether sample compositing has been applied.
• Data spacing (drill-hole spacing) is almost exclusively 100m and only locally less than 100m. It is sufficient for exploration target and appropriate to the geology. As this is an exploration project, infill drilling is considered necessary to confirm interpretations.
• Whether sample compositing has taken place has not been detailed in the technical report.
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.
• 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 supergene – style mineralisation is often irregular and drilling is oriented to intersect as perpendicular as possible to the gross strike and dip of the deposits. A small number of 60 degree inclined angled holes are used to test the lateral variability zones and any steeper structural mineralisation.
• No material sampling bias is considered to have been introduced by the drilling direction.
Sample security • The measures taken to ensure sample security. • The sampling security protocols are not detailed in the Drilling Report.
Audits or reviews • The results of any audits or reviews of sampling techniques and data.
• No audits and reviews are detailed in the Drilling Report.
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Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
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.
• 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.
• See text above.
Exploration done
by other parties
• Acknowledgment and appraisal of exploration by other parties.
• Between 2005 and 2007 African Minerals (Barbados) sprl (now Ivanplats) conducted 2 diamond and reverse circulation drilling programs totalling 123 holes within the larger Kalongwe area of which about 65 fall within the Kalongwe deposit area and are reported in the Drilling Report.
•
Geology • Deposit type, geological setting and style of mineralisation. • The mineralisation at Kalongwe is considered a typical example of a deeply weathered sediment-hosted copper deposit typical for the Congolese part of the Central African Copper Belt. Primary sulphide mineralisation is re-distributed during weathering from is stomatolitic dolomites host rocks. The host rocks are deformed and occur a fragments within the core of anticlines within the Lufilian Fold Belt.
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: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea
level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length.
• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not
• See information provided above in Table 2 of main Press release.
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Criteria JORC Code explanation Commentary
detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
Data aggregation
methods
• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
• The assumptions used for any reporting of metal equivalent values should be clearly stated.
• The data aggregation procedures, if applied, are not detailed in the Drilling Report.
Relationship
between
mineralisation
widths and
intercept lengths
• These relationships are particularly important in the reporting of Exploration Results.
• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).
• In general down hole length ore reported due to the vertical nature of drill holes. This leads locally to reporting of slightly longer intervals of mineralisation. However, for the supergene nature of mineralisation above 150m this has a lesser effect.
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.
• Plan and section views of the mineralisation are included in this report.
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.
• A subset of intersection above a 0.5% Cu cut off as reported in the Drilling Report are presented in the text.
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.
• Not applicable to this press release.
Further work • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
• The Company has prepared a Due Diligence field programme. (see text above).