Mineral Resources and Ore Reserves

Tajiri Project

Results from the recent air-core infill and extension drilling campaign and subsequent JORC-Compliant Mineral Resources Estimation (MRE) work have resulted in Tajiri’s Global Mineral Resources increasing to 268Mt at 3.3% THM.

The 100%-owned tenements comprise a series of higher-grade mineral sands deposits stretching along 30kms of Tanzanian coastline, including T1, T2, T3, T4, TC, Tajiri North and Vumbi deposits. The latest drilling targeted extensions to the existing T3 resource and the adjacent channel deposit, TC. The Vumbi strandline-style deposit has also been incorporated into the Global Mineral Resource estimate due to its proximity and geological similarities.

The resources combine to form part of a potential major mine development in the mineralised province south of Tanga.

The MRE was supervised and conducted by IHC Robbins’ Greg Jones, a specialist consultant in mineral sands resources, metallurgy and processing technology (refer to Competent Person statement).

Table 1 below displays the Mineral Resources estimated for the Tajiri tenement. Importantly, most of the Mineral Resources are classified as Measured (28%) or Indicated (62%) and all resources start from surface.

Notes:1 The Vumbi deposit of 29 Mt @ 3.0% THM is not shown, but is included in the Tajiri Project Global MRE of 268Mt @ 3.3% THM

Figure 1 Tajiri Project Mineral Resources (excluding Vumbi Deposit) - 3D Image showing target areas for future exploration

 

Figure 2 Tajiri Project Mineral Resources T3, T4, TC and TN deposits -3D Image showing target areas for future exploration

 

Tajiri Project Resources Remain Open

This last phase of drilling has also confirmed the potential for further upside to Tajiri project resources with several deposits remaining open and new exploration targets being generated. Furthermore, Strandline has recently acquired new prospective tenure along strike to the south of Tajiri. An updated Exploration Target will be developed and issued in due course - Figure 2 highlights the key Exploration Target areas.

The Tajiri TC and Vumbi resources remain open. The TC resource is open to the south east adjacent to the high-grade ilmenite dominant mineralisation associated with the bend in topography. Vumbi remains open along strike to the northeast.

The Company has recently secured Prospecting License PL 13336/2018 (Sakura) located to the southwest of the Tajiri tenement (refer Figure 3). The new tenement overlies 7.5km of strike continuation along the Tajiri mineralised corridor.

The current Tajiri Mineral Resources (including Vumbi) extends over 30km forming a semi continuous string of outcropping heavy mineral sands. With the Company’s Sakura tenement and adjacent Mkwaja licence to south, the strike potential has increased a further 18km. The Company will continue to evaluate Tajiri’s significant exploration and development upside over time.

Tajiri Grade Tonnage Curves

Figure 3 Tanga South Tajiri Global Mineral Resources Grade-Tonnage Curve (excluding Vumbi)

 

Figure 4 Tanga South Tajiri Global Mineral Resources Grade-THM Curve (excluding Vumbi)

 

Using an elevated cut-off grade of 2.0% THM there are 194Mt @ 3.7% THM containing 7.2Mt of contained HM and using an elevated cut-off grade of 2.35% THM there are 150Mt @ 4.1% THM containing 6.2Mt of contained heavy mineral.

Tajiri project Hosts a Valuable Titanium-Dominated Mineral Sands Assemblage

The resource update has nearly doubled the contained Heavy Mineral (HM) to over 8,800,000t from previous 4,600,000t (up 4,200,000t), comprising a high-value titanium dominated mineral assemblage. This includes contained valuable minerals rutile (580,000t), zircon (335,000t), ilmenite (5,206,000t), almandine garnet (1,477,000t).

The Tajiri T1 deposit is exceptionally rich with 10% rutile, 6% zircon and 71% ilmenite with an endowment of 1,300,000t contained heavy mineral. The remainder of the resources contain between 5% to 8% rutile and 4% to 5% zircon with an average of 11% combined rutile-zircon.

As the Global MRE has continued to grow the valuable heavy mineral (VHM) content remains high with respect to higher value rutile and zircon proportions. The garnet content has increased on a global basis with significant expansion of TC mineralisation along the “channel zone”. The recent resource expansion drilling has continued to confirm an upper ilmenite-rutile-zircon rich domain while at depth, beyond 30m, garnet typically displaces ilmenite.

Garnet is used primarily for abrasive blasting, water-filtration media, water-jet-assisted cutting, and other end uses, such as in abrasive powders, nonslip coatings, and sandpaper. The majority of garnet is used in industries such as oil and gas, energy, construction, water and wastewater treatment. The suppliers generally produce a specialised product for specific purposes in 20kg or 1000kg bulka bags. Depending on the application, garnet sizing, angularity and chemistry are the most important parameters to consider. Market pricing for garnet is relatively opaque with the USGS (Annual Mineral Report 2018 on Garnet) estimating that in 2018 the average unit value of garnet was US$210/t (similar to ilmenite pricing). The pricing is driven by quality of the product, end use application and method or size of packaging. A high portion of the garnet imported into the US was traditionally sourced from India, but more recent supply restrictions have seen more garnet sourced from Africa. Globally Australia dominates the production of industrial garnet generating approximately one third or 330,000t of garnet in 2018. This was followed by South Africa (270,000t) and India (180,000t).

The Company has undertaken bench-scale metallurgical testwork of a composited 30kg sample of garnet enriched TC channel material. The results show that an almandine garnet product was recoverable providing a potentially valuable co-product when mining mineralisation along the extensive TC Mineral Resource. Mineral classification studies, including size distribution and assessment of the angularity, show the Tajiri garnet co-product has characteristics suitable for a range of commercial applications.

Tajiri’s optimum saleable product suite will be evaluated further during subsequent feasibility study evaluation.

Tajiri T1 Mineral Resource

The Tajiri T1 deposit has an Indicated Mineral Resource of 36 million tonnes @ 3.7% THM with a valuable mineral assemblage comprising 71% ilmenite, 10% rutile and 6% zircon at a cut-off grade of 1.5% THM. Slime (defined as silt <45µm) content at this cut-off is 34%. A 30kg composite sample from the Tajiri deposit, has been subjected to sighter-scale mineral assemblage and characterisation test work performed by TZMI’s Allied Mineral Laboratories. The test work has shown potentially a lower slime content of 12% (defined as clay/silt <53 µm).

Looking at the elevated surface expression of the Tajiri deposit and cross section (Figure 8), the mineralised body shows excellent geological continuity along strike and down dip. Very low strip ratios are anticipated with a large portion of the high-grade mineral resource favourably positioned at surface.

Figure 5 Tajiri T1 Mineral Resource Grade-Tonnage Curve

 

Figure 6 Tajiri T1 Mineral Resource Block Model and Cross Section (looking north x7 vertical exaggeration)

 

Figure 7 Tajiri North TN Mineral Resource Grade-Tonnage Curve

 

Figure 8 Tajiri North TN Mineral Resource Block Model and Cross-Section (looking north x10 VE)

 

Tajiri T2 Mineral Resource

The T2 deposit has an Indicated Mineral Resource of 17 million tonnes @ 2.8% THM with a valuable mineral assemblage comprising 58% ilmenite, 7% rutile and 4% zircon with 18% almandine garnet at a cut-off grade of 1.7% THM. Slime (defined as clay and silt <45µm) content at this cut-off is 32%.

Figure 9 Tajiri T2 Mineral Resource Grade-Tonnage Curve

 

Figure 10 Tajiri T2 Mineral Resource Block Model and Cross-Section (looking north x7 VE)

 

Tajiri T3 Mineral Resource

The upgraded T3 Resource now has a combined Measured and Indicated Mineral Resource of 22 million tonnes @ 3.3% THM with a valuable mineral assemblage comprising 64% ilmenite, 7% rutile and 4% zircon at a cut-off grade of 1.7% THM. Slime (defined as silt <45µm) content at this cut-off is 37%. The extension drilling to the north and south was successful in adding 14Mt of mineral resource.

Figure 11 Tajiri T3 Mineral Resource Grade-Tonnage Curve

 

Figure 12 Tajiri T3 Mineral Resource Block Model and Cross-Section (looking north x7 VE)

 

Tajiri T4 Mineral Resource

The T4 Resource comprises Indicated Mineral Resource of 14 million tonnes @ 3.0% THM with a valuable mineral assemblage comprising 61% ilmenite, 8% rutile and 4% zircon at a cut-off grade of 1.7% THM. Slime (defined as silt <45µm) content at this cut-off is 24%. The mineralisation is outcropping and forms a 3km long sinuous strandline ridge with good grade continuity.

Figure 13 Tajiri T4 Mineral Resource Grade-Tonnage Curve

 

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Figure 14 Tajiri T4 Mineral Resource Block Model and Cross-Section (looking north x7 VE)

 

TC “Channel” Mineral Resource

The TC Channel Resource has increased substantially with a combined Measured and Indicated Mineral Resource of 90 million tonnes @ 3.7% THM with a valuable mineral assemblage comprising 44% ilmenite, 5% rutile, 3% zircon with 36% almandine garnet at a cut-off grade of 1.7% THM. Slime (defined as silt <45µm) content at this cut-off is 25%. The extensional drilling campaign to the south of the previous mineralisation has increased the resource by 80 million tonnes of which 55 million tonnes is now classified as Measured. The resource remains open to the southeast of the higher-grade material encountered at a bend in the topography. The channel target also remains open along strike to the northeast where an Exploration Target will be estimated upon the receipt of mineral assemblage and grade review of recently completed AC drilling.

Additional mineralogy test work on the garnet from Tajiri Channel has concluded that the species is almandine with more than half of the garnet sizing greater than 180µm for the samples tested. The information is positive indicating that the garnet from the project is potentially saleable with premium prices expected to be achieved for garnet exceeding 180µm.

Figure 15 Tajiri TC Channel Mineral Resource Grade-Tonnage Curve

Figure 16 Tajiri TC Channel Mineral Resource Block Model and Cross-Section (looking north x7 VE)

 

Vumbi Mineral Resource

A maiden Mineral Resource has been estimated for the Vumbi deposit. The Inferred Vumbi resource comprises 29 million tonnes at @ 3.0% THM with a valuable mineral assemblage comprising 64% ilmenite, 7% rutile and 4% zircon at a cut-off grade of 1.7% THM. Slime (defined as silt <45µm) content at this cut-off is 30%. The mineralisation remains open to the north east. A potential Exploration Target will be estimated for the north eastern extension upon completion of a field investigation.

Figure 17 Vumbi Mineral Resource Grade-Tonnage Curve

 

Figure 18 Vumbi Mineral Resource Block Model and Cross-Section (looking north x7 VE)

 

Fungoni Project

Mineral Resource Statement for Fungoni Project at May 2017

The Mineral Resource estimation was conducted by Greg Jones who is a full time employee of IHC Robbins, a specialist consultant in mineral sands resources, metallurgy and processing.

Table 1 below displays the Mineral Resources estimated for the Global Fungoni HMS Project. Importantly, the mineral resources are classified as Measured and Indicated and all commence at surface with nil, to extremely low, strip ratios.

Ore Reserve Statement for Fungoni Project at October 2017

  • Fungoni feasibility study pit design contains a Proved Ore Reserve of 12.3Mt grading 3.9% total heavy mineral (THM) for approximately 480,000 tonnes of contained heavy mineral
  • Ore Reserve underpins an initial 6.2 years of operations at a planned 2Mtpa mining rate
  • Orebody at surface, free-dig unconsolidated sands well suited to conventional open pit dry mining using excavator and truck; resulting in low operating costs
  • Measured and Indicated Mineral Resources used in defining the Proven Ore Reserves