S o Martinho Gold Deposit Maiden JORC Estimate · São Martinho Gold Deposit Maiden JORC Estimate W...

6/10/2016 W Resources PLC | S�o Martinho Gold Deposit Maiden JORC Estimate | FE InvestEgate

http://www.investegate.co.uk/ArticlePrint.aspx?id=201606090700056299A 1/12

W Resources PLC

S�o Martinho Gold Deposit Maiden JORC Estimate

RNS Number : 6299AW Resources PLC09 June 2016

8 June 2016

W Resources Plc

("W" or the "Company")

São Martinho Gold Deposit Maiden JORC Estimate

W Resources Plc (AIM:WRES), the tungsten, copper and gold, exploration and developmentcompany with assets in Spain and Portugal, is pleased to announce a maiden JORC resource atits São Martinho Gold Deposit, which forms part of the CAA Portalegre licence in NorthernPortugal. Golder Associates carried out the mineral resource estimate and concluded that the totalresource estimate is 3Mt at 1.04g/t gold, which equates to 111,987oz in contained gold. To date, W Resources has only completed a limited confirmatory drill programme at the projectand the maiden JORC compliant mineral resource estimate provides a basis from which theCompany will look to upgrade the quality and size of the resource. Highgrade intersections included: Hole POR 962: 14.0m at 7.52 g/t Au from 31.0m, including2.0m at 49g/t from 31.0m and Hole 965: 8.0m at 6.5 g/t Au from 27.0m, which indicate thepotential for delineation of additional highergrade zones. Mineral Resources for Sao Martinho Deposit using a 0.5g/t Au cutoff grade within mineraliseddomain (Golder Associates)

Mt Au(g/t) Au content (oz)

Indicated 0.48 1.03 17,363

Inferred 2.56 1.05 94,624

Total 3.04 1.04 111,987Source: Golder Associates Assay results and geological modelling using the historic drilling data, including drilling by WResources, previously showed positive results confirming the presence of two main mineralisedzones: São Martinho West (SMW) and São Martinho East (SME). The mineralised zones occuras a series of shallow stacked lenses.



Michael Masterman, Chairman of W Resources commented: "The São Martinho Project wasadded into the CAA / Portalegre licence in September 2015 at a low cost and we have movedquickly to define a maiden resources estimate leveraging existing data and therefore also at alow cost to the Company. Our geological evaluation of the project indicates the potential toincrease the size of the indicated resource and delineate additional highgrade zones. A targeteddrill programme will be completed in the second half of 2016."

Enquiries:

W Resources Plc

Michael MastermanT: +44 (0) 20 7193 7463www.wresources.co.uk

Grant Thornton UK LLP

Colin Aaronson / Jen Clarke / Harrison ClarkeT: +44 (0) 20 7383 5100

SI Capital Joint Broker

Andy Thacker / Nick EmersonT: +44 (0) 1483 413500www.sicapital.co.uk

Gable Communications

Justine JamesT: +44 (0) 20 7193 7463M: +44 (0) 7525 324431

Northland Capital Partners Joint Broker

John Howes / Abigail Wayne (Corporate Broking)T: +44 (0) 20 03861 6625www.northlandcp.co.uk

About CAA / Portalegre

On 23 March 2012, W Resources' 100% owned subsidiary, Iberian Resources Portugal, wasawarded a licence for the exploration of the "CratoAssumarArronches area", adjacent to theoriginal São Martinho gold prospect area. Both areas are located near the town of Portalegre(Northern Alentejo) and around 200km East of Lisbon. The CAA area covers an area of188.05km² and the São Martinho area has an area of 101.7km². The expanded licence is validuntil September 2018.

Technical information in this report and on the W website has been prepared in accordance withthe JORC Code or defined by National Instrument 43101 and approved for inclusion by Mr JoséMario Castelo Branco, EuroGeol, who is a "qualified person" in respect of the AIM Rules forCompanies with over 32 years' experience in the Exploration and Mining Geology industry. MrCastelo Branco holds a B.Sc. in Geology from the University of Porto in Portugal. He is also amember of the Portuguese Association of Geologists (Number 354), the European Federation ofGeologists, the Society of Economic Geologists, the Society for Geology Applied to MineralDeposits and the Prospectors and Developers Association of Canada. The JORC Code Assessment Criteria

The JORC Code, 2012 Edition describes a number of criteria, which must be addressed in thePublic Reporting of Mineral Resource estimates. These criteria provide a means of assessingwhether or not parts of or the entire data inventory used in the estimate are adequate for thatpurpose. The Mineral Resource estimates stated in this document were based on the criteria setout in Table 1 of that Code. These criteria are discussed in the following table:Table 1: JORC Code Table 1

JORC Code Assessment Criteria Comment

Section 1 Sampling Techniques and Data

Sampling Techniques The Sao Martinho deposit was sampled using diamonddrill holes (DD) and Reverse Circulation (RC) drill holes.Nature and quality of sampling (e.g. cut



channels, random chips, or specificspecialised industry standard measurementtools appropriate to the minerals underinvestigation, such as downhole gammasondes, or handheld XRF instruments, etc.). These examples should not be taken aslimiting the broad meaning of sampling. Include reference to measures taken to ensuresample representivity and the appropriatecalibration of any measurement tools orsystems used. Aspects of the determination ofmineralisation that are Material to the PublicReport. In cases where 'industry standard'work has been done this would be relativelysimple (e.g. 'reverse circulation drilling wasused to obtain 1 m samples from which 3 kgwas pulverised to produce a 30 g charge forfire assay'). In other cases more explanationmay be required, such as where there iscoarse gold that has inherent samplingproblems. Unusual commodities ormineralisation types (e.g. submarine nodules)may warrant disclosure of detailedinformation.

All sampling at Sao Martinho was collected by diamond

drill and reverse circulation drilling drilled by the

operators Drillcon, Genfor, CGS/Geonor and Terratec.

Core drilling was used to obtain core samples.

Sampled intervals included zones of visible sulfide

mineralisation and alteration/veining along with zones of

gossanisation. Sampling was taken also above and

below mineralisation/alteration on 12 m intervals when

applicable.

Trenches were excavated using a backhoe digger to a

depth of 1 m to 2 m or to the bedrock to avoid surficial

clays. Rock chip sampling from trenches was

performed to determine whether prospective Au

mineralised material may yield any anomalous Au

values and not to determine average grades.

All rock samples were packed on thick plastic bags with

sample reference indicated both in the outside and

inside with permanent ink marker pens.

Drilling Techniques DD method uses NQ and HQ drill sizes. Core was not

oriented.

RC drilling, during the 2007, 2012 and 2013 campaigns,

used 140 mm and 114 mm diameter facesampling bits.

Since 2012 all drill holes have been subject to

downhole surveying, to record variations from the

original inclination. Surveys have been recorded at

varying intervals, using EZTrac from Reflex

Instruments. Previous campaigns use the survey

obtained from the collar.

Drill type (e.g. core, reverse circulation,openhole hammer, rotary air blast, auger,Bangka, sonic, etc.), and details (e.g. corediameter, triple or standard tube, depth ofdiamond tails, face‑sampling bit or othertype, whether core is oriented and if so, bywhat method, etc.).

Drill Sample Recovery Sample recovery was assessed visually, recorded onto

a logging sheet, photographed (partially) and inserted in

an Excel spreadsheet.Method of recording and assessing core andchip sample recoveries and results assessed. Measures taken to maximise sample recoveryand ensure representative nature of thesamples. Whether a relationship exists between samplerecovery and grade and whether sample biasmay have occurred due to preferentialloss/gain of fine/coarse material.Logging Logging was performed after core fragment

reconstruction in the core trays, and a line was marked

along the core axis.Whether core and chip samples have been



geologically and geotechnically logged to alevel of detail to support appropriate MineralResource estimation, mining studies andmetallurgical studies. Whether logging is qualitative or quantitativein nature. Core (or costean, channel, etc.),photography. The total length and percentage of therelevant intersections logged.

Diamond core was recently geotechnically logged, andcomplete data (recovery, RQD, joint orientation,spacing, roughness and weathering) was recorded ontoa logging sheet and inserted in an Excel spreadsheet. Geological core logging was systematically done. Datacollection (lithology, alteration, structural datamineralisation and sampling intervals) was recordedonto a log sheet and inserted in an Excel spreadsheet. All drill holes have been logged in full.

Sub‑Sampling Techniques and SamplePreparation

The core was cut by diamond saw along a line markeddown the centre of the core, splitting the core into twoequal halves. One half of the core sample intervalsselected was sent for analysis and the remaining corewas retained in wooden core boxes for future reference. The RC drilling sampling (1/8 of the drill material) isperformed at the drill site and all rejects (7/8 of the drillmaterial) are transported to a storage facility. The historical sampling at Sao Martinho was analysedby multielemental analytical methods (not fullyspecified) or Fire Assay for gold. Since 2007 the core samples were shipped to ALSLaboratory in Seville, Spain for assaying. At ALSfacilities, samples were crushed (70% <2 mm), dried,split and pulverised (85% <75 µm) to produce arepresentative sub‑sample for analysis by: Four aciddigestion and multielement ICPME (ref. MEMS61)determination of 48 elements. Gold by Fire Assay andICPAES finish (Ref. AuAA25). Samples exceedingthe upper detection limit are reassayed by the methodref. AuGRA21 (Au by fire assay and gravimetric finish). The following elements were included in the analysis:Au, Ag, Al, As, Ba, Be, Bi, Ca, Cd, Ce, Co, Cr, Cs, Cu,Fe, Ga, Ge, Hf, ln, K, La, Li, Mg, Mn, Mo, Na, Nb, Ni, P,Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr, Ta, Te, Th, Ti, Tl, U,V, W, Y, Zn, Zr.

If core, whether cut or sawn and whetherquarter, half or all core taken. If non‑core, whether riffled, tube sampled,rotary split, etc., and whether sampled wet ordry. For all sample types, the nature, quality andappropriateness of the sample preparationtechnique. Quality control procedures adopted for allsub‑sampling stages to maximiserepresentivity of samples. Measures taken to ensure that the sampling isrepresentative of the in situ materialcollected, including for instance results forfield duplicate/secondhalf sampling. Whether sample sizes are appropriate to thegrain size of the material being sampled.

Quality of Assay Data and LaboratoryTests

Since 2007 drilling campaigns, internationally certifiedstandards and blanks were regularly introduced amongcore samples. Internal laboratory cross checking methods areimplemented by ALS. Assay data reported as per laboratory final reports andcertificates.

The nature, quality and appropriateness ofthe assaying and laboratory procedures usedand whether the technique is consideredpartial or total. For geophysical tools, spectrometers,handheld XRF instruments, etc., theparameters used in determining the analysisincluding instrument make and model,reading times, calibrations factors appliedand their derivation, etc.



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.

Verification of Sampling and Assaying No twin drill holes are currently available. Primary logging paper sheets are stored at the office,data entered into Excel spreadsheets as is and coded,both stored in the server and in an external hard drive. Since 2007 all Iberian Resources core boxes arephotographed and a photo archive is maintained withinthe drilling database.

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.

Location of Data Points Locations of the Iberian Resources drill holes carriedout prior to 2007 were assumed from historicaltopographic maps. For the drill holes carried out after2007 the location was taken from the drilling loggingsheets. Historical drill hole locations were converted from thelocal Portuguese coordinate system to internationalUTM Datum WGS84. The coordinates from a few drillholes were collected graphically from hardcopy mapsand checked in the field when possible. The Grid system is WGS84UTMZONE29N. Topographic information has been sourced from apublically available database ReNEP produced byPortuguese Geographic Institute.

Accuracy and quality of surveys used to

locate drill holes (collar and downhole

surveys), trenches, mine workings and other

locations used in Mineral Resource

estimation.

Specification of the grid system used.

Quality and adequacy of topographic control.

Data Spacing and Distribution The drill holes completed at Sao Martinho weredesigned for testing different targets and have irregularspacing. The general spacing is around 100 m by 100 m in theWest Block and 20 m by 20 m to 30 by 30 m in the EastBlock and considered sufficient to establish MineralResource. Data spacing and distribution is currently considered bythe Competent Person to be sufficient for Indicated andInferred Mineral Resources.

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.

Orientation of Data in Relation to

Geological Structure

The orientation of drilling is, in most of cases,approximately perpendicular to the strike of the mainlithologies foliation. The dip of the drill holes is not perpendicular to the truedip of the mineralised loads, so the intersections do notrepresent true widths.

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 drillingorientation and the orientation of keymineralised structures is considered to haveintroduced a sampling bias, this should beassessed and reported if material.Sample Security Samples are kept in labelled wooden (at Iberian

facilities in Armamar) and cardboard (at LNEG facilities

in Lisbon) core boxes in a locked building.

Drill cores from the Portoglobal campaigns from 1996

and 1997 are yet not located.

Industry standard practices are applied.

The measures taken to ensure samplesecurity.

Audits and Reviews Golder has not undertaken audits or reviews of the

sampling techniques and data. Golder is not aware of

any audits or reviews carried out by other parties.The results of any audits or reviews ofsampling techniques and data.Section 2 Reporting of Exploration Results

Mineral Tenement and Land Tenure

Status

Exploration license MN/PP006/12 signed on 23th March

2012 between Iberian Resources Portugal Recursos

Minerais Unipessoal Lda, 100% owned by W

Resources Plc, and the Portuguese Ministry of

Economy and Employment.

An addendum to the contract dated from 29th

September 2015 incorporates the block of Sao Martinho

into the initial license and extends the contract until 29

September 2018.

Type, reference name/number, location andownership including agreements or materialissues with third parties such as jointventures, partnerships, overriding royalties,native title interests, historical sites,wilderness or national park andenvironmental settings. The security of the tenure held at the time ofreporting along with any known impedimentsto obtaining a licence to operate in the area.Exploration Done by Other Parties The first exploration campaigns were carried out

between 1989 and 1993 by the Rio Tinto's Portuguese

subsidiary Riofinex, which included trenching and

drilling of the first diamond holes in the project area,

with four holes located at Sao Martinho.

Portuglobal and Auspex carried out more trenching and

new diamond drilling in Sao Martinho during the period

1996 to 1997.

Iberian Resources acquired the Portalegre project

(partly coincident with present CAA license) in 2007

carrying out further trenching and drilling in all sectors

using diamond and reverse circulation methods. This

contract expired in 2012.

Acknowledgment and appraisal ofexploration by other parties.

Geology The Sao Martinho gold deposit is located in eastcentral

Portugal within the southern trend of the Tomar

Cordoba Shear Zone (TCSZ) which separates two

major tectonostratigraphic zones within the Iberian

massif: the Central Iberian Zone to the north and the

Ossa Morena Zone to the south. The TCSZ comprises

a geologically complex zone of intense deformation and

metamorphism with sinistral displacement of up to 300

km where rocks are arranged in a flower structure with



the oldest formations, with the Blastomylonitic Belt (BB)at its core. The Portuguese sector of the TCSZ comprises a seriesof faultbounded, polymetamorphic structuraltectonicsubdomains defined as a flowerlike structure centredaround a core of migmatitic gneisses termed theBlastomylonitic Belt. Studies indicate that the complexgeometry of this region reflects the structure developedduring Variscan transcurrent movements parallel to theorogen trend, and that the TCSZ is made up of asystem of composite flowerlike structures with oppositeNE and SW verging narrow asymmetric folds withsteep axial planes, superimposed on previous Variscanand Cadomian tectonic fabrics. Gold deposits are hosted in the NeoproterozoicSerie Negra rocks, which is metamorphosed toamphibolite facies to at Sao Martinho. SaoMartinho is characterised by two distinct episodesof gold mineralisation. The first comprisesdisseminated and veinlet styles of mineralisationand is closely associated with foliationparallelquartz veinlets. The second episode, of probablymagmatic origin, is associated with quartz veinscrosscutting the foliation. Alteration is difficult torecognise at Sao Martinho but silicification,choritisation, muscovitisation/sericitisation plustourmalinitisation, albitisation and carbonatisationare recognised.

Deposit type, geological setting and style ofmineralisation.

Drill hole information Not applicable. Exploration results have previouslybeen reported. This Table relates to the reporting of theMineral Resource estimates.

Data aggregation methods For the resource estimate, samples return with belowdetection limit grades are replace with half the detectionlimit and samples with grades above upper detectionlimit is replace with the upper detection limit. No metal equivalents used or stated.

Relationship between mineralisation

widths and intercept lengths

Drill intersections are not reported as true widths.

Diagrams Not applicable. Exploration results have previouslybeen reported. This Table relates to the reporting of theMineral Resource estimates.

Balance reporting Not applicable. Exploration results have previouslybeen reported. This Table relates to the reporting of theMineral Resource estimates.

Other substantive exploration data Not applicable. Exploration results have previouslybeen reported. This Table relates to the reporting of theMineral Resource estimates.

Further work Further work will include detailed interpretation ofresults and further diamond core drilling.

Section 3 Estimation and Reporting of Mineral Resources

Database Integrity All drill holes and trenching data is contained in anExcel database and stored by Iberian. Validations in



Measures taken to ensure that data has notbeen corrupted by, for example, transcriptionor keying errors, between its initial collectionand its use for Mineral Resource estimationpurposes. Data validation procedures used.

the database were carried out to prevent the accidentalduplication, alteration or deletion of records suitable foruse during this resource estimate.

Site Visits A site visit was carried out by Jorge Peres (SeniorResource Geologist and MAusIMM member) to thearea during the period of 5 to 7 May 2016. The purposeof the visit was to hold discussions with project staff andgain familiarity with the deposit geology and scale,check land topography and confirm explorationactivities locations. The region presents acceptable infrastructure withpaved roads, the municipality of Alter do Chao islocated at less than 5 km from the area. Unpavedroads crossing the area are in good condition and agood relation is maintained with the land owners. Landuse and topography should not be an impediment indeveloping the site and no restrictions in space areidentified. Drill holes and trenches locations were confirmed usinga handheld GPS unit. Drill cores are stored in twolocations: the Laboratorio Nacional de Energia eGeologia (LNEG) in Lisbon and the Iberian Resourcesfacilities in Armamar (northern Portugal). Six of the drillholes were reviewed against the geology logging andassay reports and are considered consistent andappropriately stored. Documents are kept at Iberian Resources office inArmamar in a well organised manner.

Comment on any site visits undertaken by theCompetent Person and the outcome of thosevisits. If no site visits have been undertaken indicatewhy this is the case.

Geological Interpretation Iberian provided interpreted mineralisation wireframeswith base on the continuity of Au grades between drillholes and alignment with the directions from thefoliation measured from the drill cores. The Au cutoffgrade of 0.3 g/t was applied to define the limits of themineralisation. Golder used the wireframes to define the majordirections and to support creating a mineralisationindicator envelope defined by Au samples above 0.3g/t. Samples inside the envelope were included withinthe mineralised zone.

Confidence in (or conversely, the uncertaintyof) the geological interpretation of themineral deposit. Nature of the data used and of anyassumptions made. The effect, if any, of alternativeinterpretations on Mineral Resourceestimation. The use of geology in guidingand controlling Mineral Resourceestimation. The factors affecting continuity both of gradeand geology.Dimensions The mineralised zone is approximately 2 000 m long

and aligned northwest southeast (NWSE) by 700 mwide and split in two sectors, West and East. Themineralisation goes from surface outcrops, detected bysoil sampling anomalies, to a maximum depth of 150 m

The extent and variability of the MineralResource expressed as length (along strike orotherwise), plan width, and depth below



surface to the upper and lower limits of theMineral Resource.

below the surface in the deepest zone.

Estimation and Modelling Techniques The overall drill holes spacings are around 100 m in theWest and 20 m to 30 m in the East block. Thecomposites database length is 2 m for estimationpurposes. The mineralisation zone was defined by an IndicatorKriging of Au grades above a threshold of 0.3 g/t Au. Samples inside the mineralised zone were used tocreate an Au indicator variogram reflecting the medianAu grade threshold The resource estimate was carried out by the MultipleIndicator Kriging method. The block model used a regular individual cell size of 5m in X and Y, and 2 m in Z within an effective localestimation panel of 50 m in X and Y, and 12 m in Z. The estimation was conducted in three passes with thesearch ellipse and number of samples increasing foreach pass. The first pass used search of 30 m in X by25 m in Y by 7.5 m in Z, increasing by 2x in pass twoand 3x in pass three. An highgrade cut of 15 g/t Auwas applied to the first pass while a highgrade cut of 4g/t Au was used for the remaining two passes of theestimation process. The model was validated visually and statistically usingcomparisons to composite data statistics, swath plotsand evaluation of the grade estimation smoothing effect.

The nature and appropriateness of theestimation technique(s) applied and keyassumptions, including treatment of extremegrade values, domaining, interpolationparameters, and maximum distance ofextrapolation from data points. If a computerassisted estimation method was choseninclude a description of computer softwareand parameters used. The availability of check estimates, previousestimates and/or mine production recordsand whether the Mineral Resource estimatetakes appropriate account of such data. The assumptions made regarding recovery ofby‑products. Estimation of deleterious elements or othernon‑grade variables of economicsignificance (e.g. sulfur for acid minedrainage characterisation). In the case of block model interpolation, theblock size in relation to the average samplespacing and the search employed. Any assumptions behind modelling ofselective mining units. Any assumptions about correlation betweenvariables. Description of how the geologicalinterpretation was used to control theresource estimates. Discussion of basis for using or not usinggrade cutting or capping. The process of validation, the checkingprocess used, the comparison of model datato drill hole data, and use of reconciliationdata if available.Moisture All tonnages are based on volume measurements

converted using dry bulk densities.Whether the tonnages are estimated on a drybasis or with natural moisture, and themethod of determination of the moisture



content.Cutoff Parameters The resource model is constrained by assumptions

about economic cutoff grades. The mineralisation isconfined by an indicator envelope based on a 0.3 g/t Aucutoff grade. The tabulated resources are reportedusing Au cutoff grade of 0.5 g/t which was applied on ablock by block basis.

The basis of the adopted cutoff grade(s) orquality parameters applied.

Mining Factors or Assumptions The Mineral Resource estimation approach hasassumed that mining will take place using an open pit,selective mining method. The vertical block size is 2 m,expanded to 12 m for estimation, which forms the basisof the assumed vertical selectivity in the MineralResource estimate.

Assumptions made regarding possible miningmethods, minimum mining dimensions andinternal (or, if applicable, external) miningdilution. It is always necessary as part of the processof determining reasonable prospects foreventual economic extraction to considerpotential mining methods, but theassumptions made regarding mining methodsand parameters when estimating MineralResources may not always be rigorous. Where this is the case, this should bereported with an explanation of the basis ofthe mining assumptions made.Metallurgical Factors or Assumptions No metallurgical assumptions have been made.

The basis for assumptions or predictionsregarding metallurgical amenability. It isalways necessary as part of the process ofdetermining reasonable prospects foreventual economic extraction to considerpotential metallurgical methods, but theassumptions regarding metallurgicaltreatment processes and parameters madewhen reporting Mineral Resources may notalways be rigorous. Where this is the case,this should be reported with an explanationof the basis of the metallurgical assumptionsmade.Environmental Factors or Assumptions Golder is not aware of any environmental issues that

would affect the eventual economic extraction of thedeposit.Assumptions made regarding possible waste

and process residue disposal options. It isalways necessary as part of the process ofdetermining reasonable prospects foreventual economic extraction to consider thepotential environmental impacts of themining and processing operation. While atthis stage the determination of potentialenvironmental impacts, particularly for agreenfields project, may not always be welladvanced, the status of early consideration ofthese potential environmental impacts shouldbe reported. Where these aspects have notbeen considered this should be reported with



an explanation of the environmentalassumptions made.Bulk Density A dry Bulk density value of 2.7 t/m3 was assigned to the

entire model on a block by block basis. The density value was provided by Iberian Resourcesand has been assumed based on measurements of thesimilar rock units from other projects in that area.

Whether assumed or determined. If assumed,the basis for the assumptions. If determined,the method used, whether wet or dry, thefrequency of the measurements, the nature,size and representativeness of the samples. The bulk density for bulk material must havebeen measured by methods that adequatelyaccount for void spaces (vugs, porosity, etc.),moisture and differences between rock andalteration zones within the deposit.Discuss assumptions for bulk densityestimates used in the evaluation process ofthe different materials.Classification The Mineral Resource was classified according to the

following criteria and assumptions:Indicated Resources: Mineralisation is part of the East

Block, and��Blocks are estimated in the first pass��The average distances of samples used during

estimation is less than 30 m��The number of drill holes is greater or equal to

3.Inferred Resources: remaining blocks in East Block an

all blocks from West Block, estimated on first orsecond passes, generally representing zones withdiscontinuous or low sampling coverage, howeverwith grade extrapolation limited to half of the drillholes distances.

The basis for the classification of the MineralResources into varying confidencecategories. Whether appropriate account has been takenof all relevant factors, i.e. relative confidencein tonnage/grade estimations, reliability ofinput data, confidence in continuity ofgeology and metal values, quality, quantityand distribution of the data. Whether the result appropriately reflects theCompetent Person(s)' view of the deposit.Audits or Reviews No audits or reviews have been undertaken on this

Mineral Resource estimate.The results of any audits or reviews ofMineral Resource estimates.Discussion of RelativeAccuracy/Confidence

The Sao Martinho Mineral Resource is an estimate ofthe global insitu Au grades and no production data ortests are available to compare with this resourceestimate. The quality of the mineralisation model and theresource estimate is directly associated with the risksinherent to the deposit. Recommendations to improvethe quality of future model updates are:Infill drilling at 25 m x 25 m grid in the West Block.New drilling over the NW extension of the East Block.Density measurements on existing and future core

samples.Weathering surface modelling. The relative accuracy is reflected in the MineralResource classification discussed above that is in linewith industry acceptable standards

Where appropriate a statement of the relativeaccuracy and confidence level in the MineralResource estimate using an approach orprocedure deemed appropriate by theCompetent Person. For example, theapplication of statistical or geostatisticalprocedures to quantify the relative accuracyof the resource within stated confidencelimits, or, if such an approach is not deemedappropriate, a qualitative discussion of thefactors that could affect the relative accuracyand confidence of the estimate. The statement should specify whether itrelates to global or local estimates, and, if



local, state the relevant tonnages, whichshould be relevant to technical and economicevaluation. Documentation should includeassumptions made and the procedures used. These statements of relative accuracy andconfidence of the estimate should becompared with production data, whereavailable.

This information is provided by RNSThe company news service from the London Stock Exchange

END DRLUWAURNBANRAR

S o Martinho Gold Deposit Maiden JORC Estimate · São Martinho Gold Deposit Maiden JORC Estimate W...

Documents

Transcript of S o Martinho Gold Deposit Maiden JORC Estimate · São Martinho Gold Deposit Maiden JORC Estimate W...