Trading Symbols
AIM: UFO
FWB: I3A1
8 February
2024
Alien Metals Ltd
("Alien" or "the Company")
Iron Ore Development Study delivers excellent
project economics -
NPV10 of A$146m with additional
exploration potential
Updated Mineral Resource Estimate includes a
significant upgrade to Indicated Resources category
Alien Metals Ltd (AIM: UFO), a minerals exploration and
development company, is pleased to announce the results of the
Development Study ("Development
Study") of its' 90% owned Hancock Iron Ore Project
("Hancock Project" or "the
Project"), in the Pilbara
Region, Western Australia that has confirmed that the Project has
excellent project economics and prospectivity with extensive
untested mineralisation trends. The Study was coordinated by
experts Mining Plus Pty Ltd ("Mining Plus"), Burnt Shirt Pty Ltd
("Burnt Shirt") and
internal UFO personnel and is based on an updated Mineral Resource
Estimate ("MRE") containing a JORC Mineral Resource of 8.4Mt @ 60%
Fe.
Key financial
highlights:
· MRE of
8.4Mt @ 60% Fe JORC Mineral Resource, including an upgraded
Indicated Resource of 4.5Mt@ 60.2% Fe.
· Based on
8Mt of the Mineral Resource being converted to mining inventory,
robust project financials of the base case produced the
following:
o an average annualised
EBITDA of A$39m
o a pre-tax
NPV10 of A$146m
and a pre-tax IRR of
133%
o All in sustaining
cost of US$85/t
o Production rate of
1.25mtpa
o Initial development
Capital Cost of A$28m
Other key highlights from the Development Study
include the following:
·
High confidence in the
Capital and Operational Costs with pricing received through the
Early Contractor involvement and Preferred Tenderer process
resulting in up-to-date tendered pricing for more than 90% of the
Capital Costs and Operational Costs.
· Initial
production plan focussed on current 3.9Mt mining inventory with
further upside to mine the entire
Mineral Resource of 8.4Mt and beyond to be realised through
ongoing exploration upside. Further work confirmed a 165% increase
in Indicated Resources from 2.8mt to 4.5mt as part of an updated
Mineral Resource Statement.
· Ore
processing will utilise a mobile dry crushing and screening plant
capable of producing 1.25Mt to
1.5Mt of 100% fines product per annum on a single shift
basis. Sprint capacity of the plant working on a
double shift basis is up to 3.0Mt
per annum.
·
Low start-up cost of A$28m
capital including:
o A$18.0m for main
roads intersection and access to Site,
o A$2.5m for site
establishment and pre-production capital,
o A$6.5m of owners
costs, working capital and contingency allowances.
·
Reduction in costs achieved
through the close proximity to the Mining Hub of Newman. The
proximity allows the Company to avoid extensive construction
capital costs associated with airstrip, mining camp and associated
services.
·
Provisional export capacity
through the Port of Port Hedland has been secured and
remains on track for final approvals during the first half of
2024.
· CSA
Global conducted an independent review based on existing geological
information and a site visit to express an opinion about the
Exploration Potential of the Hancock Project. Their findings
included:
o Tenement E47/3954:
Significant exploration potential
has been identified, in addition to the 8.4Mt Mineral Resource
outside of the known Mineral Resource area;
o Tenement E47/3954:
Walk up drill targets, with
a potential to increase the existing Mineral Resource
o Hancock Project
Tenements E47/3954 and E47/5001: Significant strike lengths of Weeli Wolli
Formation BIF and Boolgeeda Iron Formations identified and
yet to be adequately explored.
· Alien has
also separately completed an additional internal review of Project
Tenement E47/5001[1], identifying (interpreted from GSWA 250k
mapping) significant underlying
geological lithologies that are suitable hosts for iron ore
mineralisation and exploration potential.
· Success
through accelerating exploration
activities could therefore significantly increase the existing
8.4Mt JORC Mineral Resources, resulting in potential for
increases to planned production and mine life.
· Alien
plans to conduct additional exploration during 2024 to target an
increase in its Mineral
Resource while preparing for the mining development and while the
requisite approvals are obtained.
·
Development Approvals currently
remain on track to be in place by mid-2024, allowing for
site development to commence in 2024 and first ore sales to be
achieved in Q1 2025.
Alwyn Vorster,
Non-Executive Chair, commented:
"The Development
Study is a significant advancement and de-risking step for the
Hancock Project. Attractive project economics highlight the
robustness of the project with its low start-up cost, sustainable
operational costs along with the significant upside from future
exploration plans.
"The geological
review recently undertaken reinforces that the Hancock Project has
significant regional exploration potential to increase the resource
base through further exploration activities, supporting the
Company's future growth and expansion aspirations.
"Alien is confident
that the global iron ore industry has a bright future, underpinned
by ongoing high demand for quality iron ore from stable
jurisdictions like Australia, where high environmental, social and
governance standards are set in the production of raw materials.
Healthy iron ore prices as experienced over the last few years will
support the Hancock Project delivering shareholder value in the
medium term."
Further
Information
Development Study#
Iron Ore Company of Australia Pty Ltd ("IOCA"), a wholly owned subsidiary of
AIM listed Alien Metals Ltd (LSE: UFO), is advancing development
activities for its Hancock Iron Ore Project (the Project) located
in the Pilbara region of Western Australia.
The project is approximately 18 kilometers north of
the township of Newman in an area renowned for producing high grade
direct ship ore and about 430 kilometers south of the deep-water
shipping Port of Port Hedland.
Figure 1: Location of the
Company's Iron Ore Projects, Western Australia
Financial highlights of the Development Study
include:
· Based on
the available Mineral Resource of 8.0(+) million tonnes, and
conservative mid-point assumptions, robust project financials are
produced including an average annualised EBITDA of A$39m, a pre-tax NPV of A$146m and a
pre-tax IRR of 133%.
· High
confidence in the Capital and Operational Costs with pricing
received through the Early Contractor involvement and Preferred
Tenderer process resulting in up-to-date tendered pricing for 92%
of the Capital Costs and 94% of the Operational Costs.
· C1 cash
cost of A$92.3/dmt delivered an average operating margin of
A$33.2/dmt.
· Initial
production plan based on 3.9Mt of contingent reserve with further
upside the JORC resource of 8.4Mt to be realised through ongoing
works.
· Low-cost
capital start up of ~A$28M.
# - The Development
Study is comprised of limited study elements at typical
Pre-Feasibility Study level (e.g. resource estimates and mining
inventory), and the majority of elements at Feasibility Study level
(e.g. cost estimates, approvals, offtake, financial modelling etc).
Table
1 - Development Study, Life of
Mine Metrics
Item
|
Unit
|
Base Case
(Mining >90% of Mineral
Resources)
|
Low Case
(Mining only current Mining
Inventory[2])
|
High Case
(Mining of Exploration Upside
tonnes)
|
Total Mined Product
|
Mt
|
8.0
|
3.9
|
10.0
|
Production Rate
|
Mtpa
|
1.25
|
1.25
|
2
|
Project Life (Production)
|
Years
|
6.4
|
3.2
|
5
|
CAPEX
|
A$m
|
28
|
28
|
28
|
AISC OPEX
|
US$/dmt
|
85
|
85
|
85
|
Iron Ore Price
|
US$/dmt
|
120
|
120
|
130
|
Realised Iron Ore Price
|
US$/dmt
|
108
|
110
|
117
|
Exchange Rate
|
US$-A$
|
0.68
|
0.70
|
0.68
|
|
|
|
|
|
Annual EBITDA
|
A$m
|
39
|
25
|
102
|
Pre-tax NPV10
|
A$m
|
146
|
40
|
343
|
Pre-tax IRR
|
%
|
133%
|
141%
|
338%
|
Payback
|
Years
|
0.77
|
0.9
|
0.30
|
The basis (identified in Table 1 as the Low Case) of
the Development Study assumed Ore Produced came only from current
Mining Inventory (3.9Mt). Even at these low tonnage levels the
Project still delivered healthy economic returns with an annualised
EBITDA of A$25m, a pre-tax NPV of A$40m and a pre-tax IRR of 141%,
total revenues of A$570m and a pre-tax net cashflow of A$51m.
The High Case includes the assumed (potential)
realisation of additional tonnes through exploration and/or
tenement boundary softening[3] allowing
production and mine life to increase.
Updated Mineral
Resource Statement (January 2024)
The Updated Mineral Resource Statement for the
Hancock Iron Ore Project is shown in Table 2. A 165% increase in
Indicated Resources of 2.8Mt to 4.5Mt total as part of an updated
Mineral Resource Statement with a consequential reduction in
Inferred Resources.
The statements have been classified by Competent
Person, Howard Baker (FAusIMM(CP)) of Baker Geological Services
(BGS). The Mineral Resource Estimate JORC Tables can be found as
Appendix 1.
Table 2 - Hancock Project
Updated Mineral Resource Statement (January 2024)
Classification
Category
|
Prospect
|
Mass (million
tonnes)
|
Average
Value
|
Fe %
|
SiO2 %
|
Al2O3 %
|
P %
|
LOI %
|
Mn %
|
Indicated
|
Sirius Extension
|
2.8
|
59.8
|
3.9
|
4.09
|
0.17
|
5.4
|
0.05
|
Ridge C
|
0.7
|
60.9
|
4.9
|
3.27
|
0.12
|
3.7
|
0.03
|
Ridge E
|
1.0
|
61.0
|
5.2
|
3.30
|
0.12
|
3.4
|
0.02
|
Sub
Total - Indicated
|
4.5
|
60.2
|
4.3
|
3.79
|
0.15
|
3.7
|
0.04
|
Inferred
|
Sirius Extension
|
3.1
|
59.6
|
4.6
|
3.99
|
0.17
|
5.2
|
0.05
|
Ridge C
|
0.4
|
60.8
|
4.6
|
3.07
|
0.14
|
4.4
|
0.03
|
Ridge E
|
0.3
|
59.8
|
4.9
|
3.64
|
0.17
|
5.0
|
0.02
|
Sub
Total - Inferred
|
3.8
|
59.7
|
4.6
|
3.88
|
0.17
|
5.1
|
0.05
|
Total
|
8.4
|
60.0
|
4.4
|
3.83
|
0.17
|
4.0
|
0.05
|
For comparison, the
former resource statement was a total of 9.1 Mt @ 60.3% Fe of which
1.7 Mt was in the Indicated category and 7.4Mt was in the Inferred
category.
Project Cost
Estimate
Capital cost estimates for the Project have been
sourced from contractor quotations, services agreements and
industry benchmarks. A summary of the Project capital cost estimate
is highlighted in Table 3.
Table 3 - Capital Cost
Summary
Item
|
Total (A$M)
|
GNH Intersection
|
6.4
|
Mine Haul Road
|
4.0
|
Site Facilities
|
7.6
|
Engineering Design
|
0.3
|
Owners Team Costs
|
0.9
|
Mine Site Establishment
|
0.8
|
Services (comms, power, water
etc)
|
3.4
|
Pre-production capital
|
1.4
|
Bonds/Guarantees
|
1.5
|
Sustaining, Cont and
Closure
|
1.9
|
Total
|
28.1
|
Operating cost estimates for the Project have been
sourced from contractor quotations, services agreements and
industry benchmarks. A summary of the Project operating cost
estimate is highlighted in Table 4.
Table 4 - Operating Cost
Summary, Base Case (Mining Inventory)
Item
|
Total (A$M)
|
A$/t ore
|
Mining
|
98.3
|
25.0
|
Processing
|
36.2
|
9.2
|
G&A
|
28.2
|
7.2
|
Logistics
|
199.5
|
50.8
|
C1 Costs
|
362.3
|
92.3
|
Freight
|
80.1
|
20.4
|
Royalties
|
41.2
|
10.5
|
AISC
|
483.5
|
123.1
|
A ranking of global iron ore producers based on their
total cash cost per tonne of ore is shown in Figure 2. The chart
also highlights where the Project will sit on the global cost
curve.
Figure 2: 2023 Iron Ore
Production ranked on Total Cash Cost (US$CFR)
Over the last five years, the average spot price is
US$117/dmt having operated in a range as high as US$227/dmt and a
low point of US$62/dmt. At the end of January the spot price of 62%
Fe, CFR into China was $134.80 which provides potential further
upside to the base cases.
Figure 3: 5-year historical
iron ore price and average
Multiple sensitivities were performed on the results
of the financial analysis. A matrix of the effect of a varying the
benchmark 62%Fe commodity price against the Project Discount Rate
is shown in Table 5.
Table 5 - Commodity Price
Against Discount Rate Sensitivity
Fe
Price[4]
(US$/t)
|
Project NPV
(A$M)
|
IRR
|
8%
|
10%
|
12%
|
110
|
2
|
1
|
1
|
15%
|
120
|
42
|
40
|
39
|
141%
|
130
|
83
|
80
|
76
|
254%
|
The financial analysis conducted on the Financial
Base Case, using Mineral Resources highlights the project's
sensitivity to key variables (see Figure 3).
The commodity price, foreign exchange, operating
expenses, and other factors were thoroughly examined to assess
their impact on cashflows. The tornado chart highlights the impact
to the project under various downside scenarios whilst highlighting
its strong upside potential.
Figure 4: Financial
Sensitivity to Base Case NPV A$149m
Additional Mining
Inventory
It is anticipated that prior to commencement of the
Project further infill drilling will occur at each deposit to
convert inferred material to the indicated category. The Company is
seeking to put in place agreements with adjoining tenement owners
to allow mining of the Company's Sirius resource up to, and/or
beyond the tenement boundary.
The potential additional mining inventory should all
the current Inferred material be upgraded to the Indicated resource
category and the tenement boundary constraints be removed from the
Sirius deposit, and Maintaining the scheduled production rate, the
estimated additional inventory would add upwards of four years mine
life beyond the currently scheduled three years.
Tenure and
Ownership
A summary of the Hancock Project tenure and ownership
is set out in Table 6.
Table 6 - Hancock Project
Tenements
Tenement
No.
|
Type
|
Status
|
Ownership
|
E 47/3954
|
Exploration
|
Granted
|
90%
IOCA
|
E 47/5001
|
Exploration
|
In
application
|
100%
IOCA
|
L 47/1063
|
Miscellaneous
|
Granted
|
100%
IOCA
|
M 47/1633
|
Mining
|
In
application
|
90%
IOCA
|
Approvals
The key next focus of the Company is to secure the
grant of the Mining Lease M 47/1633. Granting of this lease by
DMIRS allows the Company to then submit the final regulatory
documentation for key approvals that will include:
· Mining
Proposal and Closure Plan,
·
Environmental Approvals (Part IV and V), and
· Native
Vegetation and Clearing Permits.
The Company is cooperating with DMIRS on
investigations about historical (2021) breaches of regulations
regarding heritage and ground disturbance on the Hancock Project
tenements. The Company is confident that these breaches,
which were self-reported by the Company in 2023, will be addressed
without significant impacts on the project development
planning.
Infrastructure
The Project will involve the construction of an
intersection at the Great Northern Highway (GNH) followed by the
construction of an access road from GNH to the site
infrastructure.
The Project does not require a dedicated air strip or
accommodation due to the close proximity of the established mining
town of Newman.
Operations
Mining will employ a conventional drill and blast,
truck and shovel methodology which is well proven for operations of
similar geology and scale. Mining will commence at the Ridge C and
Ridge E deposits with mining at the Sirius deposit in the
proceeding years. The project will target an initial production
rate of 1.25Mt of Direct Shipping Ore (DSO) product per annum. Ore
will be hauled to multiple fingers on a Run of Mine (ROM) pad
allowing blending to achieve desired iron grade and impurity
levels.
Ore processing will utilise a mobile dry crushing and
screening plant capable of producing 1.25Mt of 100% fines product
per annum on a single shift basis. Sprint capacity of the plant
working on a double shift basis is up to 3.0Mt per annum.
Stockpiled ore product will be loaded onto quad
trailer road trains and hauled from the Project to Port Hedland via
GNH. In Port Hedland the product will be stored either in a bunker
at Utah Point or at an offsite overflow stockpile. Material from
the overflow stockpile will be campaigned to the Utah Point bunker
as required. From the bunker product will be managed by a Port
Services contractor and loaded onto ships for transport to
customers.
IOCA will provide the operation with management and
technical services with remaining site activities carried out by
contractors on services agreements.
Next
Steps
The Development Study has confirmed the potential
economic viability of the Hancock Iron Ore Project. Whilst this is
not a Definite Feasibility Study ("DFS") the costs and other inputs
are broadly to a DFS level (excluding any assumptions relating to
Inferred Resource). Once a project funding partner is identified
and terms agreed, the Company and such partner will consider
whether a formal DFS is required at that stage. IOCA is now
progressing development works towards the requirements for a Final
Investment Decision (FID). The following key activities have been
planned as part of the next phase of Project development:
· Progress
funding discussions, including self-development, possible joint
venture options and other funding arrangements
· Progress
dialog with tenement neighbours to enable viable extraction of
Sirius resource
· Complete
optimised design of Sirius haul road and pit entry which minimises
cut and fill volumes whilst having minimal impact on
environmentally and culturally sensitive areas
· Finalise
work with its consultants to determine most economical GNH
intersection design
· Finalise
work with its consultants to optimise access road alignment for
capital savings and cultural/environmental sensitivity. This will
include geotechnical sampling along preferred alignment to identify
scale of drill and blast requirements.
· Finalise
Mine Operations Centre layout for cultural and environmental
sensitivity
· Finalise
discussion with potential offtake partners to confirm desired
product specifications and market appeal.
· Continued
focus on heritage surveys:
o access to bore fields
to secure a water supply for initial infrastructure works
o access to ore
reserves and adjacent infrastructure
o clearance of
exploration potential zones
·
Exploration activities in those areas identified as having
exploration potential to target an increase in resources and
reserves after the required studies are completed.
ADDITIONAL
EXPLORATION POTENTIAL
Figure 4: Hancock Project
Tenements
Figure 5: Exploration
potential areas and Regional Potential
Mineral
Resources
· The
exploration potential areas complement the Mineral Resource shown
in Table 7 (Baker, 2024).
· The
resources for Ridge C and Ridge E are hosted in the Weeli Wolli
Formation.
· Sirius
Extension is hosted in Boolgeeda Iron Formation (see Figure 5).
· All three
of the deposits are located in E47/3954.
Table 7 - Hancock Project
Updated Mineral Resource Statement (January 2024)
Classification
Category
|
Prospect
|
Mass (million
tonnes)
|
Average
Value
|
Fe %
|
SiO2 %
|
Al2O3 %
|
P %
|
LOI %
|
Mn %
|
Indicated
|
Sirius Extension
|
2.8
|
59.8
|
3.9
|
4.09
|
0.17
|
5.4
|
0.05
|
Ridge C
|
0.7
|
60.9
|
4.9
|
3.27
|
0.12
|
3.7
|
0.03
|
Ridge E
|
1.0
|
61.0
|
5.2
|
3.30
|
0.12
|
3.4
|
0.02
|
Sub
Total - Indicated
|
4.5
|
60.2
|
4.3
|
3.79
|
0.15
|
3.7
|
0.04
|
Inferred
|
Sirius Extension
|
3.1
|
59.6
|
4.6
|
3.99
|
0.17
|
5.2
|
0.05
|
Ridge C
|
0.4
|
60.8
|
4.6
|
3.07
|
0.14
|
4.4
|
0.03
|
Ridge E
|
0.3
|
59.8
|
4.9
|
3.64
|
0.17
|
5.0
|
0.02
|
Sub
Total - Inferred
|
3.8
|
59.7
|
4.6
|
3.88
|
0.17
|
5.1
|
0.05
|
Total
|
8.4
|
60.0
|
4.4
|
3.83
|
0.17
|
4.0
|
0.05
|
Figure 6: Regional Geology
Mapping, E47/3954 and E47/5001
Exploration
potential areas (E47/3954)
During November and December 2023, ERM Australia
Consultants Pty ltd, trading as CSA Global, completed an
independent assessment of the Hancock Project and generated areas
of exploration potential. These exploration potential areas are
based on drilling results, field reconnaissance and rock chip
sampling which identified 10 polygons where there is supporting
evidence of iron mineralisation. The exploration potential polygons
(potential mineralisation) are shown in the Appendix.
The exploration potential zones focus on those areas
that are within vicinity of the existing Mineral Resource,
providing the company with near term, walk up targets to test and
potentially expand the resource.
Figure 7: Focused targets on
E47/3954 and E47/5001
Exploration of the regional targets is scheduled to
commence during the first half of 2024. The initial exploration
plans call for the high priority areas to be mapped and rock
chipped to enable further ranking of these areas before possible
drill testing later in 2024. Given the experience and geological
knowledge of the known Mineral Resource areas, the Company is
confident that these priority target areas of the Weeli Wolli
Formation BIF can be assessed rapidly to enable an aggressive
exploration program to yield positive results.
CSA Global did not visit Exploration License
Application 47/5001; however, they have identified based on a
review of available aerial imagery supported by GSWA 250k mapping,
there is evidence supporting the presence of significant strike
lengths of Weeli Wolli Formation BIF and Boolgeeda Iron Formation
particularly in the southeastern corner of the tenement (Figure 7).
The Sirius Extension deposit located in the northeast of E47/3954
is hosted in Boolgeeda Iron Formation and planned exploration in
E47/5001 will attempt to investigate for geological and
mineralisation similarities.
Figure 8:
Focused targets on E47/5001
Figure 9: Focused targets on E47/3954 and E47/5001
E47/5001 has yet to be granted. This is the subject
of the standard and regulatory process. Although the Company is
confident that E47/5001 will be granted in the first half of 2024
there is no guarantee, and this represents a risk.
Forward Work Programme
The Company will now commence
planning for:
1. a detailed mapping
programme to be completed by experienced iron ore geologists over
all Weeli Wolli Formation BIF ridges with a focus on delineating
mineralisation boundaries supported by a technical mapping report,
and
2. a focussed and
targeted exploration drilling campaign.
Geological
Risks
The main geological risk is the limited drilling data
supporting the present geometry and continuity of the exploration
potential polygons.
Hancock Project
Reserves (AIM: 26 April 2023)
Table 16 - Hancock Project
Ore Reserves
Material
|
Tonnes
(Mwmt)
|
Volume
(Mbcm)
|
Fe %
|
SiO2 %
|
Al2O3 %
|
P %
|
LOI %
|
Mn %
|
Proved
|
|
|
|
|
|
|
|
|
Probable
|
1.9
|
0.7
|
60.2
|
5.69
|
3.54
|
0.12
|
3.85
|
0.02
|
Total
|
1.9
|
0.7
|
60.2
|
5.69
|
3.54
|
0.12
|
3.85
|
0.02
|
Table 17 - Hancock Mining
Inventory
Material
|
Tonnes
(Mwmt)
|
Volume
(Mbcm)
|
Fe %
|
SiO2 %
|
Al2O3 %
|
P %
|
LOI %
|
Mn %
|
Unclassified
|
4.2
|
1.6
|
60.5
|
4.11
|
3.53
|
0.15
|
4.74
|
0.04
|
Total
|
4.2
|
1.6
|
60.5
|
4.11
|
3.53
|
0.15
|
4.74
|
0.04
|
Competent Person
Statements
The information in this announcement relating to Ore
Reserves is based on information compiled by Mr. Jeremy Peters, a
Director of Burnt Shirt Pty Ltd, a Fellow of The Australian
Institute of Mining and Metallurgy (AUSIMM) and Chartered
Professional Geologist and Mining Engineer of that organisation who
has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity that he is undertaking, to qualify as a Competent Person
as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves'. Mr. Peters consents to the inclusion in the document of
the information in the form and context in which it appears.
The information in this announcement that relates to
the Hancock Mineral Resources is based on information compiled by
Mr. Howard Baker, a Competent Person who is a Fellow of the
Australasian Institute of Mining and Metallurgy and is an employee
by Baker Geological Services Ltd. Mr. Baker has sufficient
experience relevant to the style of mineralisation and type of
deposit 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 the Reporting of Exploration
Results, Mineral Resources, and Ore Reserves (JORC Code)'. Mr.
Baker consents to the disclosure of information in this report in
the form and context in which it appears.
The information in this report that relates to
Exploration Results is based on information compiled by Mr Mark
Pudovskis. Mr Pudovskis is a full-time employee of CSA Global Pty
Ltd and is a Member of the Australasian Institute of Mining and
Metallurgy. Mr Pudovskis has sufficient experience relevant to the
style of mineralisation and type of deposit under consideration and
to the activity which he is undertaking to qualify as Competent
Person as defined in the 2012 edition of the Australasian Code for
the Reporting of Exploration Results, Mineral Resources, and Ore
Reserves (JORC Code). Mr Pudovskis consents to the disclosure of
the information in this report in the form and context in which it
appears.
The
Base Case identified includes an assumption that Inferred Mineral
Resources are mineable and a general technical and economic
assessments has been applied. This assumption does not provide
assurance of an economic development case at this stage, or to
provide certainty that the conclusions of the Development Study
will be realised.
For further information please visit
the Company's website at www.alienmetals.uk or
contact:
Beaumont Cornish Limited
(Nomad)
James Biddle / Roland
Cornish Tel: +44 (0) 207 628 3396
WH Ireland Ltd (Broker)
Harry Ansell / Katy
Mitchell Tel +44 (0) 207 220 1666
Yellow Jersey PR (Financial
PR)
Charles Goodwin /
Shivantha Thambirajah /
Soraya Jackson Tel: +44 (0) 20 3004
9512
Notes to
Editors:
Alien Metals Ltd is a mining exploration and
development Company listed on the AIM market of the London Stock
Exchange (LSE: UFO). The Company's focus is on delivering a
profitable, long life direct shipping iron ore operation based out
of the Pilbara in Western Australia. In 2019, the Company acquired
51% of the Brockman and Hancock Ranges high-grade (Direct Shipping
Ore) iron ore projects and in December 2022 moved to 90% legal and
beneficial ownership. The Company also acquired 100% of the Vivash
Gorge Iron Ore project in the west Pilbara in July 2022.
The Company acquired 100% of the
Elizabeth Hill Silver Project, which consists of the Elizabeth Hill
Historic Mining Lease and the 115km2 exploration
tenement around the mine.
In March 2022 the Company acquired
100% of the former joint venture interest in the Munni Munni
Platinum Group Metals and Gold Project in the West Pilbara, Western
Australia, one of Australia's major underexplored PGE and base
metals projects. Munni Munni holds a historic deposit containing
2.2Moz 4E PGM: Palladium, Platinum, Gold, Rhodium and sits within
the Companies Pinderi Hills prospective Nickel, Copper and PGM
tenements.
In May 2023, the Company acquired
100% of Mallina Exploration Pty Ltd and with it, the Western
Hancock Tenement. The new tenement adjoins the Company's existing
Hancock tenement, giving the entire Hancock project direct access
to the Great Northern Highway.
The Company also holds silver,
copper and base metal projects in various locations around the
world however is currently looking at the best way to divest these
for the benefit of shareholders.
Beaumont Cornish Limited ("Beaumont Cornish") is the
Company's Nominated Adviser and is authorised and regulated by the
FCA. Beaumont Cornish's responsibilities as the Company's Nominated
Adviser, including a responsibility to advise and guide the Company
on its responsibilities under the AIM Rules for Companies and AIM
Rules for Nominated Advisers, are owed solely to the London Stock
Exchange. Beaumont Cornish is not acting for and will not be
responsible to any other persons for providing protections afforded
to customers of Beaumont Cornish nor for advising them in relation
to the proposed arrangements described in this announcement or any
matter referred to in it.
Glossary
Indicated Mineral 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.
Geological evidence is derived from adequately detailed and
reliable exploration, sampling and testing gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes, and is sufficient to assume
geological and grade (or quality) continuity between points of
observation where data and samples are gathered.
Inferred Mineral 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 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. An Inferred Mineral Resource
has a lower level of confidence than that applying to an Indicated
Mineral Resource and must not be converted to an Ore Reserve.
It is reasonably expected that the majority of Inferred Mineral
Resources could be upgraded to Indicated Mineral Resources with
continued exploration.
Mining Proposal - A
document submitted to the local state authority for approval by the
Department of Mines, Industry Regulation and Safety (DMIRS), that
is required before any mining operations can commence.
Mineral Resource - A
concentration or occurrence of solid or liquid material of economic
interest in or on the Earth's crust in such form, grade (or
quality), and quantity that there are reasonable prospects for
eventual economic extraction. The location, quantity, grade (or
quality), continuity and other geological characteristics of a
Mineral Resource are known, estimated or interpreted from specific
geological evidence and knowledge, including sampling. Mineral
Resources are sub-divided, in order of increasing geological
confidence, into Inferred, Indicated and Measured
categories.
Mining Schedule -the
sequencing of operations and the assignment of equipment and
people, to ensure that the intended sequencing and production
targets are realized
Mineral resource classification - is the classification of mineral resources based on an
increasing level of geological knowledge and confidence.
Mining Inventory - As part of
the Mining Reserve process reported in RNS 26 April 202, a mining
inventory for scheduling, by pit was produced. This mining
inventory is inclusive of the Ore Reserve and is not to be
conflated with an Ore Reserve. A mining inventory has no definition
under the JORC Code and its absolute economic viability has not
been demonstrated. The mining inventory comprises that proportion
of the Inferred Mineral Resource that reports to a pit optimisation
but is excluded from inclusion in an Ore Reserve by its
classification. Its financial viability has not been demonstrated
and it is premised on both Indicated and Inferred Resources and
unclassified mineralisation.
Ore
Reserves - the parts of a
Mineral Resource that can, at present, be economically
mined
DSO - Direct Shipping Ore
Fe - Iron
Al - Aluminium
Ca - Calcium
K - Potassium
Mg - Magnesium
Mn - Manganese
Na - Sodium
P - Phosphorus
S - Sulphur
Si2O3 - Silica
Mt - Million Tonnes
BIF - Banded Iron
Formation
Dmt- dry metric tonnes
APPENDIX 1 - Mineral Resource
Estimate
JORC TABLE 1
CHECKLIST
January 2024 Mineral
Resource
Assessment
Criteria
Section 1 Sampling
Techniques and Data
(Criteria listed in the preceding section also apply to this section.)
Criteria
|
JORC Code explanation
|
|
Sampling techniques
|
·
Nature and
quality of sampling (e.g. cut channels, random chips, or specific
specialized 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 (e.g.). 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.
|
· Industry standard sampling techniques have been applied at the
Project.
· Reverse circulation drilling was used to obtain 1 m
samples.
· A
tri-cone splitter at the cyclone was used to provide two samples
splits and a bulk sample per metre.
· When
water was produced by the hole, samples were continued to be taken
with care to get as representative a sample per meter as possible.
Water was expelled after rod change to reduce the amount of water
in the ensuing samples. All efforts were made to ensure
representative samples in wet conditions were taken. Notes were
made on logging sheets for large volumes of water to ensure
interpretation was consistent in the holes. 1 m samples were taken in the majority of every hole unless
obvious non iron ore bearing lithology was identified, such as
associated dolerite mainly in the ridge area in the west of the
project.
· All diamond drilling
completed at the Sirius Extension prospect resulted in 1 m
samples with variable lengths based on geological contacts.
· All diamond drill core
was split by a contractor and sampled by IOCA geologists. The core
was then dispatched to ALS Laboratories in Malaga, Spain 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.).
|
· 1 x
Schramm track mounted T450 Reverse Circulation (RC) drill machine,
rated to 350 m RC with 6.0 m pullback, 4" rod string, on--board
350psi / 900 cfm compressor was used for all drilling done by
IOCA.
· A
Hurricane 636 Booster for extra air was also available and used
when required for deeper holes to ensure consistent sample
quality.
· The
phase 4 RC drill programme was completed by Egan drilling using
ED250 (EDR01) drill rig.
· Two
Twin diamond drill holes were completed by Top Drive using an
UDR1200HC rig.
· The
Sirius Extension diamond drilling campaign was completed by West
Core drilling using a LF90D rig.
· IOCA
do not have the specifics of the RC drill rig used by Volta in 2013
available but can confirm it was RC method.
|
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.
|
· Where
sample recovery was deemed to be less than the average a note was
made on the logging sheets.
· Where
very little sample was recovered in a meter interval this was noted
on log sheet.
· Where
water was deemed a factor to sample recovery this was noted on the
log sheet.
· Every
meter was sampled directly from a tri-cone splitter into a
pre-labelled calico sample bag mounted on the rig cyclone. Any
additional splitting was carried out at the analysis
laboratory.
· 96% of
samples were taken dry, with any wet samples being recorded on the
rig log sheet.
· The
cyclone was air flushed to clean after each 6-metre run to minimise
contamination.
· IOCA
completed two diamond drill holes in an attempt to verify the
accuracy of the RC drilling. One drill hole each was completed at
Ridge C and at Sirius Extension. BGS did not observe the diamond
drilling but has been informed by IOCA that strict supervision was
not in place at the time and as such, low core recovery rates were
left unchallenged during the drilling.
· The
diamond drilling has not been used in the MRE update with the
exception of the verification study described below.
· At
Ridge C, RC drill hole AM21RC001_006 was twinned with AMHD004 and
drill hole AM21RC002_008 was twinned with AMHD003 at Sirius
Extension.
· The
average core recovery recorded at Ridge C (AMHD004) is 58% within
the high-grade zone and 65% below the high-grade zone. All drilling
was above the water table. At Sirius Extension (AMHD003), the
average core recovery was 74%, varying from 76% above the water
table and 72%, below the water table.
· Due to
the poor core recovery within the two diamond drill holes, it is
hard to categorically determine if any bias has been introduced
through the application of RC drilling, such as loss of high-grade
fines or clay fines. However, some observations can be
made.
· Phase
2 diamond drilling at Sirius Extension resulted in an average core
recovery of 95%.
|
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.
|
· Main
lithology for each meter logged along with notes on visible
hematite or magnetite or other.
· Chip
trays of RC samples were taken and photographed.
· Diamond drill core photographed.
· Logging mainly qualitative in nature.
· Early
logging in some cases logged clay rather than BIF where BIF appears
dominant lithology.
· RQD
logging completed on the two diamond drill holes This data has not
been verified.
|
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.
|
· Tri-cone splitter attached to cyclone produced 2 samples for
laboratory submission plus larger remaining fraction per meter
drilled.
· If
sample interval not deemed necessary for laboratory submission, the
sample was left on site for later collection.
· 1 in
20 average field duplicates taken.
· Certified Reference Samples also inserted on a 1 in 20 sample
average.
· Laboratory sample preparation was to dry and
pulverize.
· Diamond drill holes cut and assayed at ALS laboratories. The
diamond data has not been used in the model update with exception
of verifying the quality of the RC data.
· As
part of the recent Sirius Extension diamond drilling campaign,
IOCA used the industry standard of inserting CRM samples,
blanks (a washed river sand) and duplicate samples. The CRMs are
sourced from Geostats Pty Ltd, Perth, WA, a global leader in the
manufacture and sale of CRMs.
· In
total, 48 CRMs were submitted, along with 15 duplicates and 22
blanks. This equates to an insertion rate of 4%, 1% and 2%
respectively. Whilst below the industry standard of 5%, the QA/QC
results are deemed acceptable with adequate variation from the
standard acceptable CRM grades received. Duplicate samples also
returned acceptable results to accept that all laboratory analysis
results are within international standards and are fit for use in
the MRE.
|
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 (e.g. standards, blanks,
duplicates, external laboratory checks) and whether acceptable
levels of accuracy (i.e. lack of bias) and precision have been
established.
|
· Intertek Genalysis, Perth, used for sample preparation and
analysis, Basic Iron Ore Package/XRF single point LOI analysis
method.
· Laboratory also used Certified Reference Materials and/or
in-house controls, blanks and replicates analysed with each batch
of samples with these quality control results reported along with
the sample values in the final report.
· Industry Standard CRM's from Geostats PTY Ltd, Perth were
inserted 1 in 20 samples on average.
· Duplicate samples from the drilling inserted on average 1 in
20 samples
· Acceptable levels of accuracy obtained from all QA/QC
results.
|
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.
|
· 4
historic drill holes drilled by Volta Mining in 2013 included in
this work were tested by a twin RC drill hole traversing across the
line of Volta drilling.
· All
data managed into central excel database.
· All
data verified for errors.
· No
adjustment to laboratory assay data done.
· The
addition of 13 diamond drill holes at Sirius Extension, used in
this update, has allowed a detailed RC bias study to be completed.
The new diamond drill data was assessed based on the location of
the water table, noted from the downhole gamma surveys. It was
found that when comparing the RC data against the diamond data,
that five of the previous RC drill holes showed a high degree of
grade smoothing below the water table.
· As a
result of the additional diamond drillholes and the review
completed, the decision was made to remove the assay data from the
grade estimate within the wet portion of the five RC drill holes
identified as showing a smoothing of grade.
|
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.
|
· Differential GPS used to locate and survey drill hole
collars.
· High
resolution topographic survey acquired for area at accuracy of 20
cm with strong correlation existing between the DGPS collars
and the topographic surface.
|
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.
|
· Drill
Spacing is variable.
o Sirius Extension = approximately 50 to 100 m section spacing
with on fence spacing from 30 to 50 m.
o Ridge C = variable but dominantly 50 m x
50 m.
o Ridge E = variable but dominantly 50 m x
50 m.
· Single
meter sample intervals in all drilling.
· Single
meter analysis of all samples.
· No
sample composites generated for sampling and assaying
purposes.
|
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.
|
· No
bias indicated through the drill orientation.
· Where
possible drill holes drilled as perpendicular to assumed geological
units to ensure minimum sampling bias.
|
Sample security
|
·
The measures
taken to ensure sample security.
|
· Samples secured in sealed bags from sample location to
laboratory with secure storage facilities in Newman and in
Perth.
· The
remaining diamond core is strapped on pallets in a secure core
cutting facility in Kalgoorlie.
· Pulps
are currently at ALS Malaga, with the plan in place to have them
returned to IOCA and stored in a secure lock-up style facility in
Carlisle, Perth.
|
Audits or reviews
|
·
The results of
any audits or reviews of sampling techniques and
data.
|
· Drilling reported here based on four RC drilling programs, the
initial program managed by 3rd party consultants with
later phases being managed by IOCA personnel.
· Company recruited Exploration Manager managed the second to
fourth drilling phases and tied in any outstanding survey and
geological issues from the phase one program managed by
3rd party contractors.
· Same
drilling company and drillers used for phase one to three (Three
Rivers Drilling) with phase four operated by Egan
drilling.
|
Section 2 Reporting of Exploration Results
(Criteria
listed in the preceding section also apply to
this section.)
Criteria
|
JORC Code explanation
|
|
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.
|
· The
Hancock Project lies within the E47/3953 tenement and is
approximately 15 km north of Newman in the East Pilbara region
of Western Australia.
· A
heritage survey has been completed [Coles & Chisholm, 2014] in
the northeast corner of the exploration tenure (approximately
19 ha), in and around the area proposed for mining for the
Sirius prospect. No heritage sites were identified.
· Significant surveys have been completed adjacent to the
Mineral Prospect, particularly on behalf of BHP and Hamersley Iron,
with a range of registered sites identified. The closest site is
Kalgan Creek.
· It is
anticipated that the level of heritage sites will be moderate,
however can be managed through either an avoidance or approval
under Section 18 of the Aboriginal Heritage Act 1972. [or
alternative approval instrument once the Aboriginal Cultural
Heritage Act 2021 has been fully implemented]. This is not
considered a constraint to mining.
· The
area is within the registered Native Title claim of the Nyiyaparli
People (WC2005/006), administered by the Karlku Nyiyaparli
Aboriginal Corporation (KNAC). The group has executed a range of
Indigenous Land Use Agreements through the area with a range of
mining companies in the area, including BHP Billiton (WI2012/005),
Hamersley Iron P/L (Rio Tinto) (WI2012/007) and FMG (WI2016/003).
As part of the mining lease and miscellaneous licence applications,
a Native Title Agreement will be expected to be entered into with
KNAC and considering the corporation's experience with mining
activities in the area, this is not considered a constraint to
mining.
· The
Hancock Project is located within the Nyiyaparli Native Title
Determination Area (WCD2018/008). Karlka Nyiyaparli Aboriginal
Corporation (KNAC) is the Registered Native Title Body Corporate
(RNTBC) and the appointed heritage body for the Nyiyaparli
People.
· Significant milestones have been achieved by IOCA in relation
to successfully negotiating a Heritage Agreement and a Mining
Agreement with KNAC. These Agreements reflect IOCA's
acknowledgement of the unique and continuing connection that
Nyiyaparli people have to the Country where we seek to operate and
support the company's commitment to build positive relationships
with Traditional Owners that are based on respect, meaningful
engagement, and trust.
· To
ensure alignment with the agreed Heritage and Mining Agreements,
IOCA will develop appropriate cultural heritage management
protocols including:
·
Detailing specific procedures to be implemented by
IOCA with Nyiyaparli people through KNAC.
·
Protecting Nyiyaparli cultural heritage and
ensuring compliance with regulatory (WA Heritage Act, 1972)
requirements.
·
Protecting Nyiyaparli anthropological,
archaeological and ethnographic sites in areas within the project
location prior to, during and post mining activities.
·
Implementing where practicable, cultural heritage
management recommendations to satisfy compliance
expectations.
·
Developing an Aboriginal Cultural Heritage
Management Plan that reflects best practice in relation to Cultural
Heritage Management and includes the company's ongoing commitment
in the delivery of Cross-Cultural Awareness to all its staff and
contractors.
· Since
November 2022 KNAC, on behalf of IOCA has conducted multiple
cultural heritage surveys. The scope of these works has
included:
·
Four archaeological site avoidance surveys of
existing tracks and drill pads on tenement E47/3954 and of the
polygon area that represents the footprint for the proposed mine
operations area.
·
Two ethnographic site avoidance surveys of the
entire E47/3954 tenement area
·
An ethnographic site identification survey of the
miscellaneous licence L37/1063 which overlays tenement E47/5001 and
represents a future access track and mine haulage road to the mine
operations area.
· Where
outcomes of heritage surveys have identified locations or material
considered by KNAC representatives as Aboriginal Places and/or
Aboriginal Objects, IOCA will work with KNAC to implement
appropriate management measures to remediate previous ground
disturbance and avoid future disturbance to cultural heritage
places and objects. In the event that it is considered necessary
for IOCA to disturb identified Aboriginal places or objects as part
of project operations, then appropriate consultation will be
undertaken with Traditional Owners and procedures adopted that are
consistent with the requirements of Aboriginal Heritage Act (1972
revised).
· A
schedule of proposed ethnographical and archaeological heritage
surveys to be conducted in 2024 to support project development had
been developed and forwarded to KNAC.
· Nine
species of national conservation significance may occur in the
region, of which five have the potential to occur in the tenement
area (being the Northern Quoll, Ghost Bat, Greater Bilby, Pilbara
Leaf-nosed Bat and Olive Python). Vegetation and landscape would
dictate that the Bats are unlikely to either forage or nest in
areas proposed for mining. Mining can occur in a manner to minimise
the impact on any other species (if they occur); however, the
location and size of the project would consider that the
significance and risk is low.
· The
area has limited diversity from a floristic standpoint, with
limited species known to occur in the area, of which none are
considered Threatened under the Biodiversity Conservation Act 2016
or Matters of National Environmental Significance (MNES) under the
Environment Protection and Biodiversity Conservation Act 1999.
Flora and Vegetation is not considered a constraint in this
project.
· No
conservation reserves or environmentally significant areas are
located within the vicinity of the proposal area.
|
Exploration done by other parties
|
·
Acknowledgment
and appraisal of exploration by other parties.
|
· The
Mineral Resource Estimate includes 4 drill holes completed by Volta
Mining in 2013. This accounts for UPDATE 15% of the drill data
available at the Sirius Extension prospect with all historic holes
being located on a single fence line.
|
Geology
|
·
Deposit type,
geological setting and style of mineralisation.
|
· The
tenement area consists of a series of low east/west running rocky
ridge lines separated by shallow valleys. The area has been
structurally deformed with the presence of numerous fold hinges,
some isoclinal, but all trending east/west with a shallow (<34°)
plunge.
· Most
of the ridge lines consist of Banded Iron which is part of the
Weeli Wolli Formation. The Weeli Wolli Formation is described as a
thick succession of jaspilite, shale, and dolerite overlying the
Brockman Iron Formation. The iron formations stand out as ridges on
which there is some exposure, but the intervening shale and
dolerite are rarely exposed.
|
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 detract from the
understanding of the report, the Competent Person should clearly
explain why this is the case.
|
· IOCA
undertook Reverse Circulation (RC) drilling at the project between
January 2021 and June 2022. Two diamond drill holes were completed
in January to February 2022.
· The
drill hole information is tabulated in Appendix 1 (addendum to main
report).
· The
table below summarises the number of drill holes, and total metres
of drilling completed at each prospect along with the number of Fe
assays collected from the 1m samples. An equal number of assays was
generated for all other elements as part of the XRF
suite.
· All
drill holes were drilled at an orientation to target as
perpendicular an intercept to the BIF as possible.
|
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.
·
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.
|
· No
data aggregation methods have been used in the reporting of the
exploration results.
|
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 (e.g. 'down hole length, true
width not known').
|
· All
drill holes were drilled at an orientation to target as
perpendicular an intercept to the BIF as possible.
|
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.
|
· Appropriate images have been put in the main body of the
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.
|
|
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.
|
· IOCA
has completed tenement scale mapping and grab sampling.
· In
total, 161 samples have been collected and analysed. Eight ridges
(A to H) have been identified and sampled. BGS visited all ridges
and general sample locations during the site visit.
· The
figure below shows the location of the grab samples and mapped
ridges.
·
|
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).
·
Diagrams clearly
highlighting the areas of possible extensions, including the main
geological interpretations and future drilling areas, provided this
information is not commercially sensitive.
|
· IOCA
plan to continue mapping and grab sampling with test pits
recommended in areas of identified high-grade from grab
samples.
· Further confirmatory diamond drilling is required to assess
for any bias introduced through RC drilling.
· A
suggested infill programme has been provided for the Sirius
Extension prospect. This consists of 11 drill holes for 1000 m
of drilling.
|
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
|
|
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.
·
Data validation
procedures used.
|
· All
data has been validated to check for gross errors with original
assay certificates being supplied by IOCA.
· Minor
transcript errors identified were reported to IOCA with corrective
measures taking place.
· Regular database updates were provided throughout the drilling
and assaying programme so that continual monitoring could be
carried out.
|
Site visits
|
·
Comment on any
site visits undertaken by the Competent Person and the outcome of
those visits.
·
If no site
visits have been undertaken indicate why this is the
case.
|
· Mr
Howard Baker of BGS visited the project in May 2022. All ridges
were visited and existing drill pads inspected.
|
Geological interpretation
|
·
Confidence in
(or conversely, the uncertainty of) the geological interpretation
of the mineral deposit.
·
Nature of the
data used and of any assumptions made.
·
The effect, if
any, of alternative interpretations on Mineral Resource
estimation.
·
The use of
geology in guiding and controlling Mineral Resource
estimation.
·
The factors
affecting continuity both of grade and geology.
|
· Based
on the work undertaken and the statistical validation steps carried
out, BGS is confident that the geological model created honours the
understanding of the local scale geology and weathering /
alteration-controlled grade distribution as accurately as possible
given the current data available.
· At
Ridge C and E, continuous units of high-grade mineralisation have
been modelled, greatly enhanced by the acquisition of a
high-resolution topographic surface and Worldview 2 aerial imagery.
Ridge C and E contain three modelled zones of high-grade
mineralisation each with a "main" zone lying as the middle
high-grade stratigraphic horizon within each ridge. The upper and
lower high-grade zones at each ridge are less continuous and
supported by less data.
· At
Sirius Extension, a single high-grade BIF domain has been modelled
with an overlying low grade cap. The high-grade BIF unit has been
split into high and low SiO2 domains based on a
statistical review.
· At
Ridge C and Ridge E, the dip of the BIF unit was inferred from the
ridge topography and the onsite observations with a shallow dip of
15 to 20 ° used.
· At
Sirius Extension, a steeply dipping BIF unit was created based on
the HW / FW contacts with the assumption that the unit forms part
of syncline extended from the neighbouring licence and where a
resource has previously been reported.
· An
overlying weathered cap has been created at Sirius Extension. This
is based on logging and geochemical data where an increase in LOI,
AL2O3 is observed along with a decrease in
Fe.
|
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.
|
· Sirius
Extension = ~450 m strike by 60 m width by 150 m
down dip
· Ridge
C = ~1,200 m strike by up to 12 m width / thickness by
150 m down dip
· Ridge
E = ~1,500 m strike by up to 10 m width / thickness by
80 m down dip
|
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.
·
The availability
of check estimates, previous estimates and/or mine production
records and whether the Mineral Resource estimate takes appropriate
account of such data.
·
The assumptions
made regarding recovery of by-products.
·
Estimation of
deleterious elements or other non-grade variables of economic
significance (e.g. Sulphur for acid mine drainage
characterization).
·
In the case of
block model interpolation, the block size in relation to the
average sample spacing and the search employed.
·
Any assumptions
behind modelling of selective mining units.
·
Any assumptions
about correlation between variables.
·
Description of
how the geological interpretation was used to control the resource
estimates.
·
Discussion of
basis for using or not using grade cutting or
capping.
·
The process of
validation, the checking process used, the comparison of model data
to drill hole data, and use of reconciliation data if
available.
|
· At
Sirius Extension and Ridge C and E, geostatistical studies were
undertaken to determine appropriate estimation
parameters.
· Due to
the limited data at Ridge C and E, all high-grade material was
combined into a single high-grade domain at each ridge for
geostatistical studies. The oxidised and fresh BIF domains across
Ridge C and E were treated as single domains for the geostatistical
studies. For Sirius Extension, geostatistical studies were
completed for the individual high and low SiO2
domains.
· A
primary search ellipse of 100 m by 50 m by 10 m was
used with a minimum of 4 samples and a maximum of 12 samples at
Sirius Extension and a minimum of 4 samples and a maximum of
16 samples at Ridge C and E. Samples were limited to 4 per drill
hole at Ridge C and E and 3 per drill hole Sirius
Extension.
· At
Sirius Extension, estimation was completed within the cap domain
and the high / low SiO2 domains with each domain treated
as a separate estimate with drill hole data coded
accordingly.
· At
Ridge C and E, estimation was completed within the individual
high-grade BIF, oxidised BIF and Fresh BIF domains.
· Modelling and grade estimation was undertaken in Leapfrog
Edge.
· A
composite length of 2 m was used at Sirius Extension and the
raw 1 m sample length was used at Ridge C and E with no
compositing.
· Fe,
SiO2, Al2O3, P, MnO and LOI were
estimated into the model using Ordinary Kriging.
· Fe was
also estimated using an Inverse Distance Weighting
algorithm.
· The
average distance of samples to estimate the block grade was between
40 and 70m.
· At
Sirius Extension, a block size of 20 m X by 10 m Y by
10 m Z was used with sub-cells of 2.5 m in the X
direction and 1.25 m in the Y and Z direction. This is less
than the sample spacing in the X direction.
· At
Ridge C and E, a block size of 20 m X by 5 m Y by
2 m Z was used with sub-cells of 5 m in the X direction
and 1.25 m in the Y and 1 m in the Z direction. This is
less than the sample spacing in the X direction.
· No
assumptions have currently been made regarding the SMU.
· Grade
correlation has been used in the modelling and domaining strategies
with statistical checks primarily on the F and SiO2
being used to guide the interpretation. No regression-based
assumptions have been applied to the estimated model.
· The
geological interpretation was used to guide the orientation of the
search ellipse used in the estimate.
· No top
capping has been applied due to the homogenous nature of the
mineralisation.
· Visual
and statistical validation checks have been completed comparing the
input sample grades and the output block model grades. No bias has
been observed. Checks were also completed on the number of blocks
estimated in each estimation run and the average distance of the
samples used to estimate the block grade.
· No
reconciliation data is available.
|
Moisture
|
·
Whether the
tonnages are estimated on a dry basis or with natural moisture, and
the method of determination of the moisture
content.
|
· Tonnage is assumed to be on a dry basis using moisture
corrected downhole gamma density data.
· At
Ridge C and E, the moisture content is based on the results from a
bulk sample which are not considered appropriate at this
stage.
|
Cut-off parameters
|
·
The basis of the
adopted cut-off grade(s) or quality parameters
applied.
|
· No
cut-off has been used in the reporting of the Mineral Resource with
an open pit optimisation being applied to determine the material
with reasonable prospects for eventual economic extraction
potential.
· The
high-grade material, being the focus of the Mineral Resource
Statement was modelled at an approximate 58% Fe cut-off.
|
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.
|
· An
open pit operation has been assumed with optimisation studies being
completed to enable the reporting of the Mineral Resource
Statement.
· To
determine the final Mineral Resource Statement, the model has been
subjected to an optimisation exercise to determine the proportion
of the material defined that has a reasonable prospect of eventual
economic extraction ("RPEEE") via open pit mining methods, as
defined in the JORC Code, 2012 edition. For Ridge C and E, the
optimisation was carried out by independent consultants Mining Plus
and for the Sirius Extension update, the optimisation was carried
out by Snowden Optiro.
· The
optimisation was based on the Indicated and Inferred mineralised
high-grade BIF material only.
· For
Ridge C and E, the optimisation used a metal price of USD162.5/t
and for Sirius Extension the optimisation used a baseline metal
price of USD175/t. The different prices used reflect the time
difference in the optimisation carried out with the optimisation
for Ridge C and E being completed for the March 2023 update and the
Sirius Extension optimisation being carried out for this update.
BGS comments that the optimisation is not sensitive to metal price
in the ranges being used and as such does not consider the
different prices used to be material to the final Mineral Resource
Statement.
|
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.
|
· IOCA
collected a bulk sample from Ridge C for testwork at ALS Metallurgy
Services ("ALS") in Perth. The metallurgical testwork program was
conducted on a single composite sample formed from five separate
samples. All material was collected from a single drill
pad.
· The
location of the bulk sample was from the drill pad of RC drill hole
AM21RC001_006 and diamond twin AMHD004.
· The
results of the testwork are summarised in the ALS report,
"Metallurgical Testwork conducted upon Iron Ore Samples from the
Hamersley Iron Ore Projects for Alien Metals Limited". Report No.
A23194, May 2022. The results of the testwork were also summarised
in a news release dated 16 June 2022.
· The
bulk sample showed the material to have a 9.7% lump and 90.3% fines
content.
· BGS
notes that a single composite sample has been collected for the
Project, with all material coming from the same drill pad on Ridge
C and averaging 62.7% Fe. The resource grade currently averages
60.3% Fe and as such, the bulk sample collected is not considered
representative of the resource grade. Further bulk sample testwork
is therefore recommended to ensure representative grade is tested
and to assess the lump / fines split across both Ridge C and E and
the Sirius Extension prospect.
|
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.
|
· IOCA
have completed flora and fauna surveys of the licence along with
native title surveys. As such, BGS and IOCA are not aware of
any factors (environmental, permitting, legal, title, taxation,
socio-economic, marketing, political, or other relevant factors)
that have materially affected the Mineral Resource
Estimate.
|
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
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.
·
Discuss
assumptions for bulk density estimates used in the evaluation
process of the different materials.
|
· Downhole gamma data has been used to assign density to the
Ridge and Sirius domains. A moisture correction factor is required
to adjust the raw caliper adjusted downhole gamma data. This can be
based on moisture content from twin diamond drill holes where a
specific moisture assay has been carried out. For Ridge C and E, a
correction factor has been selected based on the bulk sample
collected at Ridge C. ALS determined a 6% moisture content for the
bulk sample. This is however not deemed accurate due to the time
taken between collection and analysis and the various handling
steps required. The bulk sample was also open to the elements for a
period of time. However, in the absence of other data, the 6%
correction has been used. This can only be applied to the
high-grade zones and BGS notes that the application of the moisture
content from a sample at Ridge C, may not be representative of the
Ridge E and Sirius Extension high-grade material.
· For
the recent Sirius Extension drilling, moisture was collected from
core samples and the downhole gamma survey recorded moisture using
a neutron tool. The combined data resulted in a correction factor
being determined by Wireline Services Group.
· For
the high-grade BIF material, the average corrected density value
for Ridge C and E is 2.74 g/cm3 and at Sirius Extension, 2.47
g/cm3 in the material above the water table and 2.42 g/cm3 in the
material below the water table. At Ridge C and E, no
correction has been made for the Cap or fresh and oxidised domains
due to the lack of moisture data.
|
Classification
|
·
The basis for
the classification of the Mineral Resources into varying confidence
categories.
·
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).
·
Whether the
result appropriately reflects the Competent Person's view of the
deposit.
|
· The
Project has been classified as containing Indicated and Inferred
Mineral Resources. No Measured Mineral Resources have been
assigned. Infill drilling at Ridge C and E and Sirius Extension is
now on a density in places that allows a robust geological model to
be created with excellent continuity between sections. In addition,
a bulk sample collected at Ridge C confirms the location of
high-grade material, although not representative of the overall
resource grade.
· BGS
has also completed a site visit to the Project and observed the
mineralisation in the field. The addition of the topographic survey
and aerial photography has also allowed an extra level of detail to
be applied in the modelling.
· As
such, portions of the Ridge C and E and Sirius Extension prospects
have been classified as an Indicated Mineral Resource.
· Indicated Mineral Resource have been assigned to Ridge C and E
and Sirius Extension based on the following criteria:
Ridge C "Main" high-grade zone
only
Ridge E "Main" and "Upper"
high-grade zones only
Sirius Extension high grade BIF and
CAP material
An average distance between samples
used of less than 75 m
The number of samples used to
estimate grade being a minimum of 8, and
A slope of regression greater than
0.6.
· It is
noted that the CAP material is not reported within the final
Mineral Resource Statement as it is believed the low grade prevents
the material to be of economic interest.
· This
represents the material considered by BGS to have reasonable
prospects for eventual economic extraction potential.
|
Audits or reviews
|
·
The results of
any audits or reviews of Mineral Resource
estimates.
|
· The
Ridge C and E and maiden Sirius Extension resource models have been
peer reviewed by Mining Plus. However, no peer review has taken
place for the updated Sirius Extension resource model, with the
exception of internal reviews by IOCA personnel.
|
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.
·
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.
·
These statements
of relative accuracy and confidence of the estimate should be
compared with production data, where available.
|
· Based
on the work undertaken and the statistical validation steps carried
out, BGS is confident that the geological model created honours the
understanding of the local scale geology and weathering /
alteration controlled grade distribution as accurately as possible
given the current data available.
· At
Ridge C and E, continuous units of high-grade mineralisation have
been modelled, greatly enhanced by the acquisition of a high
resolution topographic surface and Worldview 2 aerial imagery.
Ridge C and E contain three modelled zones of high-grade
mineralisation each with a "main" zone lying as the middle
high-grade stratigraphic horizon within each ridge. The upper and
lower high-grade zones at each ridge are less continuous and
supported by less data.
· At
Sirius Extension, a single high-grade BIF domain has been modelled
with an overlying low-grade cap. The high-grade BIF unit has been
split into high and low SiO2 domains based on a
statistical review.
· The
slope of regression has been used as a guide to assess the quality
of the grade estimate with a slope of regression value approaching
a value of 1 being deemed a high-quality estimate. The mean slope
of regression values for the project are low to moderate, being
0.77 and 0.83 within the Ridge C and E Main domains.
· The
slope of regression results for the Sirius Extensions High and Low
SiO2 domains have values of 0.36 and 0.45 . This is
however a factor of the depth extent of the model and poor data
support with depth. In areas supported by drill data, a value of
0.6 is shown.
· Overall, the dimensions and volumes of the BIF packages are
robust although changes to the overall geometry can be expected
with further drilling.
· Given
the quantity of data at Ridge C and Ridge E, the estimate can be
considered reasonable on a local scale, especially in areas of
Indicated resource classification.
· Given
the quantity of data at Sirius Extension, the estimate can be
considered reasonable on a local scale, especially in areas of
Indicated resource classification.
|
APPENDIX 2 - Exploration Potential
Figure A2: E47/5001
interpreted Weeli Wolli BIF location plan drill hole, sheet 1 of
5
JORC Code, 2012 Edition - Table 1 report
template
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.
|
· Reverse circulation percussion (RCP) drilling, with 1m samples
obtained.
· A tri-cone splitter at the cyclone was used to obtain 2 sample
splits and a bulk sample per meter.
· A number of rock chip samples were taken from ridges F, G and
H. The exact number of samples taken from each ridge was not
recorded, and the original assay results were not provided. No
details of the methodology and representivity of the rock chip
sampling methods was recorded
|
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).
|
· Reverse circulation percussion (RCP) drilling.
· Drilling at Ridge F and Ridge G was done by Three Rivers
Drilling using a Schramm 450 RC TM.
· No details of the rigs used on the other prospects are
available.
|
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.
|
· No details of RCP sample recoveries were recorded.
· Drilling challenges included sample recovery due to the fine
nature of some material and the presence of water.
|
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.
|
· All holes were geologically logged, with two
lithologies/sample recorded. Many samples also had weathering,
colour and hardness recorded. Some samples only had the main
lithology recorded.
|
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.
|
· It is assumed that the same processes were used for the 27 RCP
holes drilled outside the resource as for the drilling supporting
the resource.
· A tri-cone splitter at the cyclone was used to obtain 2 sample
splits and a bulk sample per meter.
|
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.
|
· Intertek Genalysis, Perth, was used for sample preparation and
analysis. Method used was standard XRF (12 analytes plus LOI).
Samples were analysed for Fe, Al2O3,
SiO2, P, MgO, MnO, Na2O, CaO,
Cr2O3, S and TiO2.
· IOCA used the industry standard of inserting 5% Certified
reference material (CRM) and 5% duplicate samples at source (rate
of insertion not recorded in the report). In total, 435 duplicate
samples were submitted.
· No details of laboratory QAQC procedures were found, but it is
assumed that industry standards regarding CRMs and blanks were
applied.
|
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.
|
· No twinned holes drilled outside main deposits.
· No details of verification available
· All data is held in an excel spreadsheet
|
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.
|
· Holes were scattered (no grid), split between 6 separate
prospects.
· Differential GPS was used to locate and survey drill hole
collars.
|
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 is variable. No grid drilling was done, and the
27 RCP holes are scattered between 6 separate prospects.
· Rock chip sampling on main ridges was used to help define
areas of potential iron ore mineralisation.
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Orientation of data in relation to geological
structure
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· 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.
|
· Most holes were angled to be as close to perpendicular to the
dip of the BIF ridges as possible.
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Sample security
|
· The measures taken to ensure
sample security.
|
· All samples generated were stored in locked facilities in
Newman with RCP chip trays being stored in secure facilities in
Perth.
· Retained pulp samples are kept in secure storage in
Perth.
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Audits or reviews
|
· The results of any audits or
reviews of sampling techniques and data.
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· Unknown.
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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
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Commentary
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Mineral tenement and land tenure status
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· 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.
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· E47/3954 is held as a joint venture between the Iron Ore
Company of Australia (90%) and Windfield Metals Pty Ltd
(10%).
· The tenement was granted on 20/11/2018 and is in good
standing.
· Native title claim WC2005/006 has been determined (native
title cleared)
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Exploration done by other parties
|
· Acknowledgment and appraisal
of exploration by other parties.
|
· E47/3954 has previously been held by three
companies.
· CSR did not record any work between 1983 and 1984.
· Brockman East Pty Ltd completed geological mapping and
airborne geophysics between 2008 and 2011.
· Commodite Resources Pty Ltd conducted rock chip sampling over
the Kalgan prospect which returned several results of +55% Fe. The
work was conducted by Volta Mining Ltd.
|
Geology
|
· Deposit type, geological
setting and style of mineralisation.
|
· Stratigraphically E47/3954 lies within the Hamersley Group and
comprises ridges of Weeli Wolli Formation. The Weeli Wolli
Formation comprises an alternating approximately 450m sequence of
BIF, Shaly BIF, Shale, and intrusive dolerite units, with
individual units varying from 1m to approximately 70m in thickness.
In outcrop the BIF is typically red-black in colour. Three major
ridges of BIF have been identified within the sequence.
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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 detract from the understanding
of the report, the Competent Person should clearly explain why this
is the case.
|
· A total of 27 RCP holes, distributed between 6 different
prospects were drilled as tabulated below. Holes were angled to be
as close to perpendicular to the dip of the BIF as possible. Most
were angled at approximately 600 although some were
vertical.
Prospect
|
Holes
|
Metres
|
Central Kalgan
|
1
|
113
|
Kalgan
|
7
|
446
|
Krill Back
|
3
|
144
|
Ridge F
|
4
|
120
|
Ridge G
|
8
|
230
|
Southern Ridge
|
4
|
219
|
Total
|
27
|
1272
|
|
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.
|
· No data aggregation methods have been used
|
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').
|
· Downhole lengths of mineralisation were reported. Holes were
angled to be as close to perpendicular to the dip of the BIF as
possible.
|
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.
|
· Maps illustrating geology, field reconnaissance, drilling and
rock chip sampling ,overlain by exploration potential polygons are
included in the body of 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.
|
· Significant drill intercepts are reported in the body of 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.
|
· IOCA has identified and named eight ridges (termed Ridges A to
H) of which most have been chip samples. In addition, numerous
other smaller, discontinuous ridges have been identified but not
sampled as shown on the attached map.
· Downhole geophysical logging was used to determine the density
of the material for the resource estimation of the man deposits,
and this same density was applied to the Exploration result.
Density was considered unreliable due to poorly estimated moisture
content but used in modelling regardless.
·
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Further work
|
· The nature and scale of
planned further work (eg tests for lateral extensions or depth
extensions or large-scale step-out drilling).
· Diagrams clearly
highlighting the areas of possible extensions, including the main
geological interpretations and future drilling areas, provided this
information is not commercially sensitive.
|
· Future work should include geological remapping of the
tenement to determine if any of the small. Discontinuous BIF ridges
previously identified hold any potential mineralisation.
|