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Mariana Resources Ltd : Mariana Reports Increased High Grade Gold-Copper Resource and Maiden Zinc Resource at the Hot Maden Project
Jul. 25, 2016 08:20AM PST
Base Metals Investing AIM: MARL25 July 2016 Suite 102, 3 Eden Street North Sydney, NSW 2060 Australia THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. Mariana Reports Increased High Grade Gold-Copper Resource and Maiden Zinc Resource a t the Hot Maden Project, NE Turkey. Indicated (100% …
| AIM: MARL25 July 2016 |
Suite 102, 3 Eden Street North Sydney, NSW 2060 Australia |
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Mariana Reports Increased High Grade Gold-Copper Resource and Maiden Zinc Resource a t the Hot Maden Project, NE Turkey.
Indicated (100% basis): 2.79 Million Oz Gold + 166,000 Tonnes Cu (3.43 Million Oz Au equivalent**) Inferred (100% basis): 375,000 Oz Gold + 17,000 Tonnes Cu (439,000 Oz Gold Equivalent**), and Zinc Zone- Indicated (100% basis): 11,600 Tonnes Zinc Inferred (100% basis): 114,000 Tonnes Zinc
GUERNSEY, UK, July 25, 2016 (GLOBE NEWSWIRE) — Mariana Resources Ltd (‘Mariana’ or ‘the Company’), the AIM listed exploration and development company with projects in Turkey and South America, is pleased to announce the results of an Updated Mineral Resource estimate for the high grade gold-copper (‘Au-Cu’) Hot Maden Project (“HM”), eastern Turkey (Figure 1). The Updated Mineral Resource estimate has been prepared by independent mining consultants RungePincockMinarco Limited (“RPM”), and was based on assay results received for drill holes up to, and including HTD-62 as of June 22, 2016, and is reported in accordance with the JORC Code 2012 edition and estimated by a Competent Person as defined by the JORC Code. Drilling to date has been completed by our 70% JV partner Lidya Madencilik Sanayi ve Ticaret A.S. (“Lidya”).
Highlights:
- Significant increase in the global gold-copper resource at HM (Figures 2 & 3), with the higher confidence level Indicated Category resources rising to 3.43 Million Oz Au equivalent** and Inferred Category resources now reported at 439,000 Oz Au equivalent**. Overall resource growth has been derived from both step out drilling around main gold-copper zone together with a maiden contribution from initial drilling in the southern zone.
- The Main Zone’s Ultra High Grade Domain reports an impressive 2.08 Million Tonnes at an average grade of 32.7 g/t Au and 3.5% Cu (or 36.9 g/t Au equivalent*) for 2.47 Million Oz Au equivalent** in the Indicated Category.
- Maiden Resource for the New Southern Zone discovery, located 300m south of the Main Zone, in the Inferred Category is 1.35 Million Tonnes at an average grade of 7.2 g/t Au and 0.7% Cu for 351,000 Oz Au equivalent** from just 17 holes to date.
- Overall tonnage and grade of the Main Zone gold-copper resource (Indicated Category) has increased to 7.12 Million Tonnes and 15 g/t Au equivalent**, respectively.
- A maiden resource estimate is also reported for the zinc-(lead)-only zone in the hangingwall to the Main Zone Au-Cu resource (Figure 4). At a cut-off grade of 2% Zn, Indicated and Inferred Resources of 11,600 Tonnes Zinc and 114,000 Tonnes Zinc, respectively, are reported.
Chief Executive Officer Glen Parsons today commented: “The confidence and growth in the high grade gold-copper Hot Maden project continues to excite the Board, as well as capture market attention. Drilling to date on the project has delivered a significant increase in the Indicated Category resource at the Main Zone Au-Cu deposit, in addition to two maiden Inferred category resources at the new Southern Zone and the hangingwall zinc-(lead)-only zone.
“The upgrade in the Indicated Category resource represents a 69% increase from the August 2015 Mineral Resource estimate, and now includes an impressive 2.47 Million gold equivalent ounces with an average grade in excess of an ounce Au (and Au equivalent) per tonne. This mineralisation commences just 20m below surface. In addition, the newly discovered Southern zone has delivered a further maiden inferred resource of some 351,000 Oz gold equivalent from just 17 holes.
“To better grasp this increase, the table below compares the Main Zone Indicated Category Resource from the maiden (August 2015) Resource Estimate against this newly reported upgrade where we can see the phenomenal increase in the ounces and the confidence in category especially in the Ultra High Grade Zone:
COMPARISON OF INDICATED CATEGORY FOR THE MAIN ZONE AT HOT MADEN (2 g/t AuEq* Cut-off) (This Updated Resource Estimate to Maiden Resource estimate)
| PREVIOUSLY REPORTED- Hot Maden Deposit (100% basis) August 2015 Mineral Resource Estimate | |||||||
| Domain | Tonnes | Au | Cu | AuEq | Au | Cu | AuEq |
| t | g/t | % | g/t* | Ounces | Tonnes | Ounces** | |
| Main Zone LG | 481,000 | 0.9 | 1.0 | 2.4 | 14,000 | 5,000 | 37,000 |
| Main Zone HG | 3,199,000 | 5.2 | 1.8 | 8.0 | 537,000 | 56,000 | 822,000 |
| Main Zone UHG | 1,031,000 | 29.2 | 4.0 | 35.4 | 967,000 | 41,000 | 1,174,000 |
| Total | 4,710,000 | 10.0 | 2.2 | 13.4 | 1,518,000 | 102,000 | 2,033,000 |
THIS ANNOUNCEMENT Hot Maden Deposit (100% basis)
| Domain | Tonnes | Au | Cu | Zn | AuEq | Au | Cu | AuEq |
| t | g/t | % | % | g/t* | Ounces | Tonnes | Ounces** | |
| Main Zone LG | 463,000 | 1.1 | 1.1 | 0.3 | 2.4 | 17,000 | 5,000 | 36,000 |
| Main Zone HG | 4,501,000 | 3.9 | 1.9 | 0.2 | 6.3 | 570,000 | 87,000 | 908,000 |
| Main Zone UHG | 2,086,000 | 32.7 | 3.5 | 0.1 | 36.9 | 2,195,000 | 73,000 | 2,476,000 |
| Mixed Gold-Zinc | 17,000 | 7.5 | 3.1 | 3.6 | 11.2 | 4,000 | 1,000 | 6,000 |
| Peripheral Lodes | 60,000 | 2.1 | 0.4 | 0.4 | 2.5 | 4,000 | 5,000 | |
| Total | 7,127,000 | 12.2 | 2.3 | 0.2 | 15.0 | 2,790,000 | 166,000 | 3,431,000 |
“In addition, we have been consistently hitting reportable intercepts of zinc and, based on drilling to date, we now have a maiden metal inventory of 11,600T in Indicated and 114,000T in Inferred Resource categories. Whilst the focus of the JV remains on the high grade gold-copper zone, these zinc tonnages could also contribute to the overall economics of the project.
“The continuing planned drilling in the resource and southern areas represent a small portion of the 5 km long Hot Maden alteration zone (Figure 5), which displays prospective exploration and potential growth opportunity. Promisingly, further evidence of exploration potential to the north and south continues along this alteration zone with new priority areas being targeted, specifically the Old Russian Mining zone some further 500m to the south as well as up to 1.5km to the North of the main zone.”
The exciting milestones ahead, focussing on the rapid advancement and development of this world class asset, include:
- Continued drilling at Hot Maden to include both exploration and infill drilling,
- The Preliminary Economic Assessment( PEA), which is due end September/ early October 2016.
- The Pre-Feasibility Study (PFS), to be completed during the first half 2017.
“The Hot Maden discovery, resource milestones and defined path to ultimate production reinforces Mariana’s strategy of focussed and disciplined exploration across its strategic portfolio development curve and I look forward to updating the market accordingly.
“On an operational note, at both the Hot Maden and Ergama projects, there is no impact due to recent disturbances in Turkey. Operations are continuing normally without interruption at the project with all rigs turning in order to meet the joint ventures planned milestones.”
An updated technical report on Hot Maden is in the process of being prepared in accordance with Canadian National Instrument 43-101 (“NI 43-101”) standards.
Link to Figures: https://marianaresources.com/site/media/July_25_Maps.pdf
The July 2016 Mineral Resource Estimate in the applicable zones comprises:
Hot Maden Gold-Copper Project Update
| Hot Maden – Main Gold-Copper Zone (2 g/t AuEq Cut-off) | ||||||||||
| Indicated Mineral Resource | ||||||||||
| Domain | Tonnes | Au | Cu | Zn | AuEq | Au | Cu | AuEq | ||
| t | g/t | % | % | g/t* | Ounces | Tonnes | Ounces** | |||
| Main Zone LG | 463,000 | 1.1 | 1.1 | 0.3 | 2.4 | 17,000 | 5,000 | 36,000 | ||
| Main Zone HG | 4,501,000 | 3.9 | 1.9 | 0.2 | 6.3 | 570,000 | 87,000 | 908,000 | ||
| Main Zone UHG | 2,086,000 | 32.7 | 3.5 | 0.1 | 36.9 | 2,195,000 | 73,000 | 2,476,000 | ||
| Mixed Gold-Zinc | 17,000 | 7.5 | 3.1 | 3.6 | 11.2 | 4,000 | 1,000 | 6,000 | ||
| Peripheral Lodes | 60,000 | 2.1 | 0.4 | 0.4 | 2.5 | 4,000 | 5,000 | |||
| Total | 7,127,000 | 12.2 | 2.3 | 0.2 | 15.0 | 2,790,000 | 166,000 | 3,431,000 | ||
| Inferred Mineral Resource | ||||||||||
| Domain | Tonnes | Au | Cu | Zn | AuEq | Au | Cu | AuEq | ||
| t | g/t | % | % | g/t* | Ounces | Tonnes | Ounces** | |||
| Main Zone LG | 395,000 | 1.7 | 0.9 | 0.03 | 2.8 | 21,000 | 4,000 | 35,000 | ||
| Main Zone HG | 31,000 | 3.9 | 1.6 | 0.1 | 5.8 | 4,000 | 6,000 | |||
| Main Zone UHG | 6,000 | 39.1 | 2.1 | 0.01 | 41.6 | 7,000 | 8,000 | |||
| Mixed Gold-Zinc | 4,000 | 1.7 | 0.4 | 2.4 | 2.2 | |||||
| Peripheral Lodes | 282,000 | 3.2 | 0.9 | 0.1 | 4.3 | 29,000 | 2,000 | 38,000 | ||
| Total | 718,000 | 2.7 | 0.9 | 0.1 | 3.8 | 62,000 | 7,000 | 88,000 | ||
| Hot Maden – Southern Gold-Copper Zone (2 g/t AuEq Cut-off) | ||||||||||
| Inferred Mineral Resource | ||||||||||
| Domain | Tonnes | Au | Cu | Zn | AuEq | Au | Cu | AuEq | ||
| t | g/t | % | % | g/t* | Ounces | Tonnes | Ounces** | |||
| South Zone LG | 396,000 | 2.8 | 0.7 | 0.0 | 3.6 | 35,000 | 3,000 | 46,000 | ||
| South Zone HG | 583,000 | 5.3 | 0.7 | 0.0 | 6.1 | 98,000 | 4,000 | 114,000 | ||
| Main Zone UHG | 224,000 | 22.2 | 1.0 | 0.0 | 23.4 | 160,000 | 2,000 | 169,000 | ||
| Mixed Gold-Zinc | 44,000 | 9.0 | 1.0 | 3.2 | 10.2 | 13,000 | 15,000 | |||
| Peripheral Lodes | 104,000 | 1.9 | 0.3 | 0.0 | 2.2 | 6,000 | 7,000 | |||
| Total | 1,352,000 | 7.2 | 0.7 | 0.1 | 8.1 | 313,000 | 10,000 | 351,000 | ||
Hot Maden – Hangingwall Zinc Zone (2% Zn Cut-off)
| Indicated Mineral Resource | ||||
| Tonnes t | Zn% | Pb% | Zinc t | |
| Total | 398,000 | 2.9 | 0.6 | 11,600 |
| Inferred Mineral Resource | ||||
| Tonnes t | Zn% | Pb% | Zinc t | |
| Total | 2,871,000 | 4.0 | 0.5 | 114,000 |
This Updated Mineral Resource Estimate above has been compiled by Stewart Coates from RPM who also falls under the definition of Qualified Person (“QP”) as defined in the Canadian National Instrument “NI 43-101”. This resource estimate has been estimated in compliance with the CIM Definition Standards on Mineral Resources and Mineral Reserves and will be included in an updated NI 43-101 Technical Report on Hot Maden, within appropriate reporting requirements, which is in the process of being compiled. This report when complete will be filed on AIM as well as on SEDAR.
A detailed breakdown of the Total Mineral Resource estimate is given below:
Note:
1. The Statement of Estimates of Mineral Resources has been compiled under the supervision of Mr. Stewart Coates who is a part-time employee of RPM and a Member of the the Association of Professional Engineers and Geoscientists of the Province of British Columbia. Mr. Coates has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he has undertaken to qualify as a Competent Person as defined under the JORC Code which is accepted as a Foreign Code by CIM and NI 43-101.There are no material differences between the definitions of Measured, Indicated and Inferred Mineral Resources under the CIM Definition Standards and the equivalent definitions in the JORC Code. The Resource would report the same quantities to the same classifications under both the CIM Definition Standards and the JORC Code.
2. All Mineral Resources figures reported in the table above represent estimates based on drilling completed up to 22ndJune, 2016. Mineral Resource estimates are not precise calculations, being dependent on the interpretation of limited information on the location, shape and continuity of the occurrence and on the available sampling results. The totals contained in the above table have been rounded to reflect the relative uncertainty of the estimate. Rounding may cause some computational discrepancies.
3. *Au Equivalence (AuEq) calculated using a 100 day moving average of $US1,215/ounce for Au and $US2.13/pound for Cu as of May 29, 2016. No adjustment has been made for metallurgical recovery or net smelter return as these remain uncertain at this time. Based on grades and contained metal for Au and Cu, it is assumed that both commodities have reasonable potential to be economically extractable.
a. *-The formula used for Au equivalent grade is: AuEq g/t = Au + [(Cu % x 22.0462 x 2.13)/(1215/31.1035)] and assumes 100 % metallurgical recovery.
b. **-Au equivalent ounces are calculated by mulitplying Mineral Resource tonnage by Au equivalent grade and converting for ounces. The formula used for Au equivalent ounces is: AuEq Oz = [Tonnage x AuEq grade (g/t)]/31.1035.
4. Mineral Resource grades are estimated in accordance with the JORC Code.
5. Mineral Resources are reported on a dry in-situ basis.
6. LG = low grade, HG = high grade and UHG = ultra-high grade.
7. Reported at a 2 g/t AuEq cut-off.
8. Mineral Resources referred to above, have not been subject to detailed economic analysis and therefore, have not been demonstrated to have actual economic viability.
Resource Estimate Authorship and Methodology The Mineral Resource Estimate for the Hot Maden Project was compiled under the supervision of Mr Stewart Coates, a full time employee of RPM and a Member of the Association of Professional Engineers and Geoscientists of the Province of British Columbia. The Mineral Resource Estimate was completed using the following parameters:
- A site visit was conducted by Stewart Coates (RPM) to review the project and deposit geology, drilling, sampling and QAQC procedures. The data, drilling and geological records were found to be well maintained by Lidya and comprehensive field procedures had been developed. The site visit review concluded no significant issues were identified with regards to current geological understanding and data information.
- The Hot Maden Mineral Resource area extends over a north-south strike length of 670m (from 4,541,710mN – 4,542,380mN), has a maximum width of 105m (740,590mE – 740,695mE) and includes the 495m vertical interval from 885mRL to 390mRL.
- Drill holes used in the Mineral Resource estimate included 52 diamond holes for a total of 3,748m within the wireframes. The database contained records for 65 drill holes for 16,455m of drilling.
- Drill hole spacing is approximately 50m by 50m at the Project. Approximately 55% of current drilling is angled -60 degrees to the east, with the remaining holes angled -60 degrees to the west. Mineralisation is generally sub-vertical.
- Since the commencement of drilling Lidya has implemented a consistent QAQC system utilising standards, blanks and duplicate samples. The program included the submission of one standard every 20th sample, the submission of two blanks in every assay batch and field duplicates taken every 40th sample. All standards and blanks were obtained and certified by Geostats. Duplicates were split to quarter core with a core saw.
- Monitoring of standards, blanks and duplicates was undertaken by Lidya and Mariana geologists. Raw QAQC data was reviewed by RPM and results considered acceptable and suitable for use in Mineral Resource estimation.
- The mineralisation was constrained by resource outlines based on mineralisation envelopes prepared using a nominal 0.5g/t Au Equivalent cut-off grade for lower grade material, 3g/t Au Equivalent for higher grade material and approximately 15g/t Au Equivalent for ultra-high grade material. All mineralisation intersections were defined with a minimum down hole width of 2m.
- Samples within the wireframes were composited to even 1m intervals based on analysis of the sample lengths in the database. Top cuts were applied to the data based on statistical analysis of individual lodes. A top cut of 35g/t Au was applied within the higher grade domain (Object 101), a top cut of 175g/t Au was applied to the ultra-high grade domain (Object 102), a top cut of 20g/t Au was applied to Object 103 and a top cut of 10g/t Au was applied to Objects 2 and 3, resulting in a total of 10 samples being cut. Top cuts for the remaining elements were not required; no Au top cut was applied to the remaining lodes.
- A Surpac block model was used for the estimate with a block size of 25m NS by 25m EW by 10m vertical with sub-cells of 3.125m by 3.125m by 1.25m. This was selected as the optimal block size as a result of kriging neighbourhood analysis (KNA).
- Using parameters derived from modelled variograms, Ordinary Kriging (OK) was used to estimate average block grades in three passes using Surpac software. Linear grade estimation was deemed suitable for the Hot Maden Mineral Resource due to the geological control on mineralisation. Maximum extrapolation of wireframes from drilling was 50m down-dip and 50m along strike. This was equal to one drill hole spacing. Maximum extrapolation between drill sections was half drill hole spacing. Down-dip and along strike extrapolations were classified as Inferred Mineral Resource.
- Bulk densities within the wireframes were calculated based on a linear regression equation between Fe grade and density measurements obtained from drill core. A bulk density of 2.85t/m3 was assigned to waste material as a result of average core densities outside the wireframes. A bulk density of 2.20t/m3 was assigned to overburden.
- The Mineral Resource was classified as Indicated and Inferred Mineral Resource based on data quality, sample spacing, and lode continuity. The Indicated Mineral Resource was defined within areas of close spaced diamond drilling of less than 50m by 50m, and where the continuity and predictability of the lode positions was good. The Inferred Mineral Resource was assigned to areas of the deposit where drill hole spacing was greater than 50m by 50m, where small isolated pods of mineralisation occur outside the main mineralised zones, and to geologically complex zones.
- The high grade nature of the mineralisation and the substantial thickness and size of the deposit suggest that the project has potential for eventual economic extraction using open pit and underground mining techniques.
**ENDS**
Competent Persons
The Statement of Estimates of Mineral Resources has been compiled under the supervision of Mr Stewart Coates, who is a full time employee of RPM and a Member of the Association of Professional Engineers and Geoscientists of the Province of British Columbia. Mr. Coates has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity that he has undertaken to qualify as a Qualified Person as defined in the CIM Standards of Disclosure and as a Competent Person as defined in the JORC code (2012). Stewart Coates has consented to the inclusion in this release of the matters based on his information in the form and context in which it appears. All information relating to exploration activities has been reviewed by Eric Roth, Chief Operating Officer and Executive Director of Mariana Resources. Mr Roth holds a Ph.D. in Economic Geology from the University of Western Australia, is a Fellow of the Australian Institute of Mining and Metallurgy (AusIMM), and is a Fellow of the Society of Economic Geologists (SEG). Mr Roth has 25 years of experience in international minerals exploration and mining project evaluation.
**ENDS**
For further information please visit website at www.marianaresources.com or contact the following.
| In Australia: | ||
| Glen Parsons (CEO) | Mariana Resources Ltd | +61 2 9437 4588 |
| Eric Roth (COO) | Mariana Resources Ltd | +56 9 8818 1243 |
| Rob Adamson | RFC Ambrian Limited (Nomad) | +61 2 9250 0041 |
| Will Souter | RFC Ambrian Limited (Nomad) | +61 2 9250 0050 |
| In U.K. | ||
| Oliver Stansfield | Brandon Hill Capital (UK Broker) | +44 20 3463 5061 |
| Jonathan Evans | Brandon Hill Capital (UK Broker) | +44 20 3463 5016 |
| Camilla Horsfall | Blytheweigh (Financial PR) | +44 20 7138 3224 |
| Megan Ray | Blytheweigh (Financial PR) | +44 20 7138 3203 |
About Mariana Resources
Mariana Resources Ltd is an AIM quoted exploration and development company with an extensive portfolio of gold, silver and copper projects in South America and Turkey.
Mariana’s most advanced asset is the Hot Maden gold-copper project in north east Turkey, which is a joint venture with its Turkish JV partner Lidya (30% Mariana and 70% Lidya) rapidly advancing to development . A maiden mineral resource estimate of 2.03 Moz gold Equivalent (Indicated Category) and 0.97 Moz gold Equivalent (Inferred Category) (100% basis) was reported for Hot Maden on August 18, 2015. Elsewhere in Turkey, Mariana holds a 100% interest in the Ergama gold-copper project.
In southern Argentina, the Company’s core gold-silver projects are Las Calandrias (100%), Sierra Blanca (100%), Los Cisnes (100%), Bozal (100%). These projects are part of a 160,000+ Ha land package in the Deseado Massif epithermal gold-silver district in mining-friendly Santa Cruz Province.
Mariana acquired 100% interests in the Doña Ines gold-silver and Exploradora East copper prospects in northern Chile through the Aegean Metals Group transaction which closed in January, 2015, with Mariana exploration now being funded by Asset Chile through the provision of $1.65m for a total 50% interest.
In Suriname, Mariana has a direct holding of 10.2% of the Nassau Gold project. The Nassau Gold Project is a 28,000 Ha exploration concession located approximately 125 km south east of the capital Paramaribo and immediately adjacent to Newmont Mining’s 4.2Moz gold Merian project.
In Peru, Mariana is focusing on acquiring new opportunities which complement its current portfolio.
About Lidya Madencilik Sanayi ve Ticaret A.S. Lidya is a metal mining exploration company that has been operating in Turkey since 2009. Lidya is part of the Calik Group, one of Turkey’s largest private conglomerates with activities in the areas of mining, energy, finance, construction, textiles, telecom and media. Lidya established a strategic partnership with Canadian TSX listed mining company Alacer Gold Corp in August 2009. This was the first major international partnership in the Turkish mining sector with the primary goal of discovering and developing new gold and copper mines throughout Turkey. Alacer and Lidya are 80:20 Joint Venture partners at the Cöpler Gold Mine in central-eastern Turkey, which produced 227,000 ounces of gold during 2014 at all-in cash costs of USD 695/oz.
About RungePincockMinarco RungePincockMinarco Limited (ASX: RUL) is the world’s largest publicly traded independent group of mining technical experts, with history stretching back to 1968. RPM has local expertise in all mining regions and are experienced across all commodities and mining methods. Listed on the Australian Securities Exchange on 27 May 2008, RPM is a global leader in the provision of advisory consulting, technology and professional development solutions to the mining industry. RPM has global expertise achieved through their work in over 118 countries and their approach to the business of mining is strongly grounded in economic principles. RPM operates offices in 18 locations across 12 countries. Safe Harbour This press release contains certain statements which may be deemed to be forward-looking statements. These forward-looking statements are made as at the date of this press release and include, without limitation, statements regarding discussions of future plans, the realization, cost, timing and extent of mineral resource estimates, estimated future exploration expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, and requirements for additional capital. The words “plans”, “expects”, “budget”, “scheduled”, “estimate”, “forecasts”, “intend”, “anticipate”, “believe”, “may”, “will”, or similar expressions or variations of such words are intended to identify forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results to vary materially from those expressed or implied by such forward-looking statements, including, but not limited to: the effects of general economic conditions; the price of gold, silver and copper; misjudgements in the course of preparing forward-looking statements; risks associated with international operations; the need for additional financing; risks inherent in exploration results; conclusions of economic evaluations; changes in project parameters; currency and commodity price fluctuations; title matters; environmental liability claims; unanticipated operational risks; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or in the completion of development or construction activities; political risk; and other risks and uncertainties described in the Company’s annual financial statements for the most recently completed financial year which is available on the Company’s website at www.marianaresources.com . Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. We do not undertake to update any forward-looking statements, except in accordance with applicable securities laws.
- : JORC Code (2012) Table 1, Sections 1, 2 and 3
Exploration results at Hot Maden were reported by MARL and released to the AIM between 2014 and 2016. Mr Eric Roth, Chief Operating Officer of MARL compiled the information in Section 1 and Section 2 of JORC Table 1 in this Mineral Resource report and is the Competent Person for those sections. RPM has included these sections in their entirety to ensure that all relevant sections of Table 1 are included in this report.
Section 1 Sampling Techniques and Data
| 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. | Lidya and MARL utilised diamond drilling. Approximately 55% of drilling is angled -60 degrees to the east, with the remaining holes angled -60 degrees to the west to optimally intersect the targeted mineralised zones. Diamond core was sampled as half core at 1m intervals or to geological contacts within mineralisation and to 2m outside of mineralisation in the earlier holes. To ensure representative sampling, half core samples were always taken from the same side of the core and the full length of each hole sampled. Core samples were submitted to a contract laboratory for crushing and pulverising to produce a 50g charge for fire assay for Au, in addition to a 33 element four acid digestion with ICP-AES analysis. |
| 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). | Diamond drilling was carried out with HQ sized equipment with standard tube, with minor amounts of PQ size. |
| 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. | Core recoveries were measured and recorded in the database and recovery was generally between 90 to 100% in fresh rock. No relationship exists between sample recovery and grade. |
| 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 diamond drill holes were logged for recovery, geology and structure. All diamond core was photographed. All drill holes were logged in full. |
| 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. | Core was cut in half using a core saw at either 1m intervals or to geological contacts within mineralisation and to 2m outside of mineralisation in the earlier holes. To ensure representivity, all core samples were collected from the same side of the core. Sample preparation was conducted by a contract laboratory. After drying, the sample is subject to a primary crush, then pulverised to that 85% passing 75um. Sample sizes are considered appropriate to correctly represent the gold and copper mineralisation based on: the style of mineralisation, the thickness and consistency of the intersections, the sampling methodology and assay value ranges for Au and Cu. |
| 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. | After the sample had been prepared by the laboratory a 50g split of each sample was then subject to fire assay with AAS finish for Au. If the sample contained more than 500ppb Au, the sample was re-analysed using fire assay with a gravimetric finish. As and Sb were analysed using AAS, in addition to a 33 element four acid digestion with ICP-AES analysis. Samples in which ICP analyses returned greater than the maximum detection limit for the elements Ag (10 ppm), Cu (10,000 ppm), Fe (15%), Pb (10,000 ppm), and Zn (10,000 ppm) were reanalysed using the AAS analytical technique. Samples from Phase I (HTD-001 to HTD-007) drilling were sent to the SGS Laboratory in Ankara, Turkey. Samples from Phase II (HTD-008 to HTD-017A) were sent to the ALS Laboratory in Izmir, western Turkey. Sieve analysis was carried out by the laboratory to ensure the grind size of 85% passing 75um was being attained. QAQC procedures involved the use of certified reference materials (1 in 20) and blanks (2 inserted in each assay batch). Results were assessed as each laboratory batch was received and were acceptable in all cases. Laboratory QAQC includes the use of internal standards using certified reference material, blanks, splits and replicates. Certified reference materials demonstrate that sample assay values are accurate. Umpire laboratory test-work was completed in 2015 over mineralised intersections with good correlation of 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. | Significant intersections were visually field verified by company geologists and by Stewart Coates of RPM during the 2015 site visit. The upper (mineralised) part of HTD-017 was redrilled with similar results as recoveries in the first attempt were below requirements. No other twin holes were drilled, however infill drilling by Lidya and MARL has confirmed mineralisation thickness and tenor. Primary data was collected into either an Excel spread sheet and then imported into an Access database. Assay values that were below detection limit were adjusted to equal half of the detection limit value. |
| 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. | All drill hole collars were surveyed in UTM European Datum 1950 Zone 37 North grid system using differential GPS. Phase II of the drilling program (HTD-008 to HTD-059) were down hole surveyed at 40m intervals using a Devico survey tool. Holes drilled in Phase I (HTD-001 to HTD-007) were not down hole surveyed. RPM observes that there is little dip movement and minor amounts of azimuth movement in the surveyed holes. Topographic surface prepared from detailed 1m contour data. |
| 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. | Nominal hole spacing of drilling is approximately 50m by 50m. The mineralised domains have sufficient continuity in both geology and grade to be considered appropriate for the Mineral Resource and Ore Reserve estimation procedures and classification applied under NI 43-101 and the 2012 JORC Code. Samples have been composited to 1m lengths using fixed length techniques for use in Mineral Resource estimation. |
| 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. | Approximately 60% of current drilling is angled -60 degrees to the west, with the remaining holes angled -60 degrees to the east. Mineralisation is generally sub-vertical. No orientation based sampling bias has been identified in the data. |
| Sample security | The measures taken to ensure sample security. | Chain of custody is managed by Lidya and MARL. Samples were stored on site until collected for transport to SGS Laboratory in Ankara (Phase I drill program) or ALS Laboratory in Izmir (Phase II drill program). Lidya and MARL personnel have no contact with the samples once they are picked up for transport. Tracking sheets have been set up to track the progress of samples. |
| Audits or reviews | The results of any audits or reviews of sampling techniques and data. | Stewart Coates of RPM reviewed drilling and sampling procedures during the 2015 site visit and found that all procedures and practices conform to industry standards. |
Section 2 Reporting of Exploration Results
| Criteria | JORC Code explanation | Commentary |
| Mineral tenement and land tenure status | Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area. | The Hot Maden Project is located within Turkish Operating Licence 20050853 and Exploration Licences 201200321, 201201059 and 201201058. The licences are owned by AMG Mineral Madencilik AS, a subsidiary of Mariana Resources, and are subject to an earn-in agreement in which Lidya Madencilik has an option to earn in to a 70% interest in the concessions. The tenements are in good standing with no known impediment to future grant of a mining permit. |
| Exploration done by other parties | Acknowledgment and appraisal of exploration by other parties. | Historical mining at Hot Maden occurred in Ottoman times before any official records were kept. Russian mining occurred in the late 1800’s and early 1900’s prior to the area coming back within Turkish borders in 1921. Various geological surveys and reports completed prior to the 1990’s. Anglo Tur (subsidiary of Anglo American) drilled six holes in 1992. Data is not available. |
| Geology | Deposit type, geological setting and style of mineralisation. | The Hot Maden Project is located within the Eastern Pontides tectonic belt of northeastern Turkey, and is hosted within a Late Cretaceous age, island arc volcanic-sedimentary sequence. Gold-copper mineralisation is broadly associated within a sub-vertical, north-northeast trending fault zone (the “Hot Maden Fault Zone”), with mineralisation occurring in andesitic breccias and dacitic tuffaceous sediments as quartz-sulphide (pyrite-chalcopyrite) +/- hematite/jasperoid breccias and locally massive sulphides (pyrite-chalcopyrite). The highest grade Au-Cu mineralisation appears to lie along the eastern margin of the Au-Cu mineralised zone. Stratabound-style Zn-Pb (sphalerite-galena) anomalism flanks the Au-Cu zone to the east and locally to the west. Hydrothermal alteration adjacent to the Au-Cu zone is dominated by argillic and phyllic assemblages. |
| Drill hole information | A summary of all information material to the under-standing of the exploration results including a tabulation of the following information for all Material drill holes: easting and northing of the drill hole collar elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar dip and azimuth of the hole down hole length and interception depth hole length 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. | Exploration results are not being reported. A table of all drill hole collars with all the listed information is shown in the Appendices. All information has been included in the appendices. No drill hole information has been excluded. |
| 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. | Exploration results are not being reported. Not applicable as a Mineral Resource is being reported. Metal Au Equivalence (AuEq) calculated using a 100 day moving average of $US1,215/ounce for Au and $US2.13/pound for Cu as of May 29, 2016. No adjustment has been made for metallurgical recovery or net smelter return as these remain uncertain at this time. Based on grades and contained metal for Au and Cu, it is assumed that both commodities have reasonable potential to be economically extractable. The formula used for Au equivalent grade is: AuEq g/t = Au + [(Cu% x 22.0462 x 2.13)/(1215/31.1035)] and assumes 100% metallurgical recovery. Au equivalent ounces are calculated by mulitplying Mineral Resource tonnage by Au equivalent grade and converting for ounces. The formula used for Au equivalent ounces is: AuEq Oz = [Tonnage x AuEq grade (g/t)]/31.1035. |
| 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’). | Approximately 55% of current drilling is angled -60 degrees to the east, with the remaining holes angled -60 degrees to the west. Mineralisation is generally sub-vertical. |
| 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. | Relevant diagrams have been included within the Mineral Resource report main body of text. |
| Balanced Reporting | 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. 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. | All collar positions have been surveyed with a DGPS system using the UTM European Datum 1950 Zone 37 North system. Half of the drilling was down hole surveyed at 40m intervals using a Devico survey tool. Holes drilled in the first portion of the drilling program were not down hole surveyed. RPM observes that there is little dip movement and minor amounts of azimuth movement in the surveyed holes. Exploration results are not being reported. |
| 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. | All interpretations for Hot Maden mineralisation are consistent with observations made and information gained during drilling at the Project. |
| 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. | Infill and extensional drilling is planned at selected areas of the Hot Maden Mineral Resource. Refer to diagrams in the body of text within the Mineral Resource report. |
Section 3 Estimation and Reporting of Mineral Resources
| Criteria | JORC Code explanation | Commentary |
| 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. | The database has been systematically validated by company geologists. Original drilling records were compared to the equivalent records in the data base (where original records were available). Any discrepancies were noted and rectified. All drilling data has been verified as part of a continuous validation procedure. Once a drill hole is imported into the data base a report of the collar, down-hole survey, geology, and assay data is produced. This is then checked by a company geologist and any corrections are completed. |
| 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. | A site visit was conducted by Stewart Coates of RPM during June 2015. Stewart inspected the deposit area, drill core, outcrop and the core logging and sampling facility. During this time, notes and photos were taken. Discussions were held with site personnel regarding drilling and sampling procedures. No major issues were encountered. A site visit was conducted, therefore not applicable. |
| 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. | The confidence in the geological interpretation is considered to be good and is based on high quality diamond core drilling. Geochemistry and geological logging has been used to assist identification of lithology and mineralisation. The deposit consists of sub-vertical to steeply dipping, high-sulphidation alteration zones within a fault zone. Infill drilling has supported and refined the model and the current interpretation is considered robust. Outcrops of mineralisation and host rocks within the Project confirm the geometry of the mineralisation. Infill drilling has confirmed geological and grade continuity. |
| 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. | The Hot Maden Mineral Resource area extends over a north-south strike length of 670m (from 4,541,710mN – 4,542,380mN), has a maximum width of 105m (740,590mE – 740,695mE) and includes the 495m vertical interval from 885mRL to 390mRL. |
| 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 (eg sulphur for acid mine drainage characterisation). 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. | Using parameters derived from modelled variograms, Ordinary Kriging (OK) was used to estimate average block grades in three passes using Surpac software. Linear grade estimation was deemed suitable for the Hot Maden Mineral Resource due to the geological control on mineralisation. Maximum extrapolation of wireframes from drilling was 50m down-dip and 50m along strike. This was equal to one drill hole spacing. Maximum extrapolation between drill sections was half drill hole spacing. Down-dip and along strike extrapolations were classified as Inferred Mineral Resource. No mining has occurred, therefore reconciliation is not possible. There is little As observed in geochemical analysis of drilling, therefore not expected to occur in tailings. The deposit is high-sulphidation, so S is expected to occur as a result of processing waste. Au (g/t), Cu (%), Ag (g/t), Fe (%), Pb (%) and Zn (%) were interpolated into the block model. The parent block dimensions used were 25m NS by 25m EW by 10m vertical with sub-cells of 3.125m by 3.125m by 1.25m. The parent block size dimension was selected on the results obtained from Kriging Neighbourhood Analysis that suggested this was the optimal block size for the Hot Maden dataset. An orientated ‘ellipsoid’ search was used to select data and adjusted to account for the variations in lode orientations, however all other parameters were taken from the variography derived from Objects 1 and 101. Three passes were used for each domain. First pass had a range of 50m, with a minimum of 10 samples. For the second pass, the range was kept at 50m, with a minimum of 6 samples. For the final pass, the range was extended to 150m, with a minimum of 2 samples. A maximum of 30 samples was used for all 3 passes. No assumptions were made on selective mining units. Strong positive correlations were observed in the composite data for Cu-Ag, Fe-Ag, Cu-Fe and Pb-Zn. Moderate positive correlations were observed in the composite data for Au-Ag, Au-Cu and Au-Fe. The mineralisation was constrained by resource outlines based on mineralisation envelopes prepared using a nominal 0.5g/t Au Equivalent cut-off grade for lower grade material, 3g/t Au Equivalent for higher grade material and approximately 15g/t Au Equivalent for ultra-high grade material. All mineralisation intersections were defined with a minimum down hole width of 2m. The wireframes were applied as hard boundaries in the estimate. Top cuts were applied to the data based on statistical analysis of individual lodes. A top cut of 35g/t Au was applied within the higher grade domain (Object 101), a top cut of 175g/t Au was applied to the ultra-high grade domain (Object 102), a top cut of 20g/t Au was applied to Object 103 and a top cut of 10g/t Au was applied to Objects 2 and 3, resulting in a total of 10 samples being cut. Top cuts for the remaining elements were not required; no Au top cut was applied to the remaining lodes. Validation of the model included detailed comparison of composite grades and block grades by northing and elevation. Validation plots showed good correlation between the composite grades and the block model grades. |
| Moisture | Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content. | Tonnages and grades were estimated on a dry in situ basis. |
| Cut-off parameters | The basis of the adopted cut-off grade(s) or quality parameters applied. | The Mineral Resource has been reported at a 2g/t Au Equivalence cut-off based on assumptions about economic cut-off grades for underground mining. Reported mining grades at this cut-off are successfully mined using underground methods at other similar deposits in the region. Further mining studies are planned and an economic cut-off grade will be quantified at that time. |
| 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. | RPM has assumed that the deposit could be mined using mostly underground techniques. Mineralisation grade and thickness are deemed appropriate for underground mining. |
| 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. | Preliminary metallurgical testing has been conducted on the Hot Maden mineralisation. It is likely that processing would entail gravity separation of Au followed by flotation to produce a concentrate with expected recoveries greater than 90% for Au and Cu based on these results. Further metallurgical studies are planned. |
| 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. | No assumptions have been made regarding environmental factors. Lidya and MARL will work to mitigate environmental impacts as a result of any future mining or mineral processing. |
| 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. | A total of 1,526 density measurements were collected during the 2014-16 drilling program using the water immersion technique. All samples were in fresh rock. RPM extracted the density records and determined whether the measurements were in waste or mineralisation. Bulk densities within the wireframes were calculated based on a linear regression equation between Fe grade and specific gravity measurements. A bulk density of 2.85t/m3 was assigned to waste material as a result of average core densities outside the wireframes. A bulk density of 2.20t/m3 was assigned to overburden. Bulk density is measured. Moisture is accounted for in the measuring process and measurements were separated for lithology and mineralisation. It is assumed there are minimal void spaces in the rocks at Hot Maden. The Hot Maden Mineral Resource contains minor amounts of overburden above fresh bedrock. The value for this zone was derived from known bulk densities of similar geological terrains. |
| Classification | The basis for the classification of the Mineral Resources into varying confidence categories. Whether appropriate account has been taken of all relevant factors (ie 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 Mineral Resource is estimated here in accordance with the requirements of ‘Canadian National Instrument 43-101’ (NI 43-101) of the Canadian Securities Administrators; and in accordance with the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ prepared by the Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Geoscientists and Minerals Council of Australia (The JORC Code 2012). The Mineral Resource was classified as Indicated and Inferred Mineral Resource based on data quality, sample spacing, and lode continuity. The Indicated Mineral Resource was defined within areas of close spaced diamond drilling of less than 50m by 50m, and where the continuity and predictability of the lode positions was good. The Inferred Mineral Resource was assigned to areas of the deposit where drill hole spacing was greater than 50m by 50m, where small isolated pods of mineralisation occur outside the main mineralised zones, and to geologically complex zones. The input data is comprehensive in its coverage of the mineralisation and does not favour or misrepresent in-situ mineralisation. The definition of mineralised zones is based on high level geological understanding producing a robust model of mineralised domains. This model has been confirmed by infill drilling which supported the interpretation. Validation of the block model shows good correlation of the input data to the estimated grades. The Mineral Resource estimate appropriately reflects the view of the Competent Person. |
| Audits or reviews | The results of any audits or reviews of Mineral Resource estimates. | Internal audits have been completed by RPM which verified the technical inputs, methodology, parameters and results of the estimate. |
| 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. | The lode geometry and continuity has been adequately interpreted to reflect the applied level of Indicated and Inferred Mineral Resource. The data quality is good and the drill holes have detailed logs produced by qualified geologists. A recognised laboratory has been used for all analyses. The Mineral Resource statement relates to global estimates of tonnes and grade. This is a maiden Mineral Resource; therefore reconciliation could not be conducted. |
25 July HM Resource Update NR https://hugin.info/137803/R/2030321/755174.pdf
HUG#2030321
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