Mineral Resources and Ore Reserves

Mineral Resources and Ore Reserves

Coburn Resource

Mineral Resources (Mineral Resource released 14 November 2018)

The Mineral Resource Estimate was conducted by and under supervision of IHC Robbins’ Greg Jones, a specialist consultant in mineral sands resources and metallurgy (refer to Competent Person statement).

Table 1 below displays the Mineral Resource estimated for the Coburn tenement. The Mineral Resources are classified as Measured, Indicated and Inferred.

Table 1 JORC 2012 Global Mineral Resource Estimate for the Coburn Project, at November 2018

MINERAL RESOURCE SUMMARY FOR COBURN PROJECT
Summary of Mineral Resources(1) VHM assemblage(2)
Deposit Mineral Resource Category Tonnage In situ THM THM Ilmenite Rutile Zircon Leucoxene Slimes Oversize
(Mt) (Mt) (%) (%) (%) (%) (%) (%) (%)
  Measured 119 1.5 1.3 45 5 24 6 3 6
  Indicated 607 7.7 1.3 48 7 22 5 3 3
  Inferred 880 10.4 1.2 49 7 21 4 3 1
  Total(3) 1606 19.6 1.2 48 7 22 5 3 2
(1) Mineral Resources reported at a cut-off grade of 0.8% THM
(2) Valuable Mineral assemblage is reported as a percentage of in situ THM content
(3) Appropriate rounding applied

Coburn Mineral Resources - Amy South

Table 2 JORC 2012 Mineral Resource Estimate for the Amy South - Coburn Project, at November 2018

MINERAL RESOURCE SUMMARY FOR AMY SOUTH COBURN PROJECT
Summary of Mineral Resources(1) VHM assemblage(2)
Deposit Mineral Resource Category Tonnage In situ THM THM Ilmenite Rutile Zircon Leucoxene Slimes Oversize
(Mt) (Mt) (%) (%) (%) (%) (%) (%) (%)
  Measured 119 1.5 1.3 45 5 24 6 3 6
  Indicated 607 7.7 1.3 48 7 22 5 3 3
  Inferred 728 8.8 1.2 49 7 21 4 3 1
  Total(3) 1454 18.0 1.2 48 7 22 5 3 2
(1) Mineral Resources reported at a cut-off grade of 0.8% THM Leucoxene
(2) Valuable Mineral assemblage is reported as a percentage of in situ THM content
(3) Appropriate rounding applied

The Amy South Resource has a total Mineral Resource of 1454 million tonnes @ 1.2% Total Heavy Minerals (THM) with a valuable mineral assemblage comprising 48% ilmenite, 7% rutile, 5% leucoxene and 22% zircon at a cut-off grade of 0.8% THM. Slime (defined as silt <45µm) content at this cut-off is 3%.

A 30 tonne composite sample from the mineral zones across the Amy South deposit was gathered in July 2018 and has been subjected to a comprehensive phase of LOM confirmatory design and variability studies performed by TZMI’s Allied Mineral Laboratories in Perth.

The mineralised zone for the resource remains open to the east, showing the potential for further resource expansion. In the northern half of the deposit there is scope to improve the confidence of mineralisation from Inferred to Indicated with further infill drilling which in turn may lead to additional delineation of elevated dunal grades.

The Amy North inferred mineral resource is presented in Table 3. No Ore Reserves have been declared over the Amy North mineral resources estimate.

Coburn Mineral Resource – Amy North

Table 3 JORC 2012 Mineral Resource Estimate for the Amy North- Coburn Project, at November 2018

MINERAL RESOURCE SUMMARY FOR AMY NORTH COBURN PROJECT
Summary of Mineral Resources(1) VHM assemblage(2)
Deposit Mineral Resource Category Tonnage In situ THM THM Ilmenite Rutile Zircon Leucoxene Slimes Oversize
(Mt) (Mt) (%) (%) (%) (%) (%) (%) (%)
  Inferred 151 1.6 1.1 52 5 16 5 6 2
  Total(3) 151 1.6 1.1 52 5 16 5 6 2
(1) Mineral Resources reported at a cut-off grade of 0.8% THM
(2) Valuable Mineral assemblage is reported as a percentage of in situ THM content
(3) Appropriate rounding applied

The  Amy North Resource has a total Mineral Resource of 151 million tonnes @ 1.1% Total Heavy Minerals (THM) with a valuable mineral assemblage comprising 52% ilmenite, 5% rutile, 5% leucoxene and 16% zircon at a cut-off grade of 0.8% THM. Slime (defined as silt <45µm) content at this cut-off is 6%. This total Mineral Resource classified as Inferred and has a mineralogy of 52% ilmenite, 5% rutile, 5% leucoxene and 16% zircon.

Ore Reserves (released 16 April 2019)

  • Coburn’s JORC-compliant Ore Reserve is 523Mt grading 1.11% total heavy mineral (THM) for ~5.8Mt of contained heavy mineral; This represents a 70% increase from the previous 2008 Reserve
  • The substantial increase is attributed to a combination of improved processing technology, enhanced mining methodology and higher mineral sands prices  
  • Ore Reserve underpins an initial mine life of 22.5 years at the planned mining rate of 23.4Mtpa
  • Low operating costs estimated with ore starting from surface in places, low overburden, low slimes and free digging sand suitable for conventional open pit dry mining
  • Measured and Indicated Mineral Resources used as the basis of the Ore Reserves
  • Immense potential to further increase project Reserves and mine life, through evaluation and conversion of resources extending north and along strike of the current Ore Reserves
  • The Reserve estimate confirms Coburn is one of the largest and most advanced undeveloped zircon-titanium-rich mineral sands deposits in the world.

The Coburn Project Ore Reserve is summarised in Table 1. below.

Table 1 Coburn Project JORC Compliant Ore Reserve April - 2019

ORE RESERVES SUMMARY FOR COBURN PROJECT
Deposit Reserve Category Ore Heavy Mineral
(Mt) HM (Mt) THM (%)
Coburn - Amy South Proved 106 1.16 1.10
Coburn - Amy South Probable 417 4.66 1.12
  Total(1) 523 5.83 1.11
NOTE:
(1) Total may deviate from the arithmetic sum due to rounding

Table 2 Coburn Life of Mine Product Recoveries Used in Determining the Reserves

Product WCP Recovery (%) MSP Recovery (%)2 MSP Yield to Saleable Products (%)4
Ilmenite 86.8 95.4 103.9
HiTi1 87.7 70.9 77.0
 Zircon 98.2 98.73 98.8
NOTE:
(1) HiTi product contains rutile leucuxene mineral species
(2) MSP Recoveries are for actual mineral species
(3) MSP Zircon recovery comprises 54.8% into premium zircon and further 43.9% into zircon concentrate as contained zircon.
(4) Actual yields into saleable products higher due to contributions from other mineral. For example, ilmenite product contains contribution from leucoxene that was not recovered into HiTi90 product.

Table 3: List of Experts for the Coburn Project Ore Reserve

Modifying Factor Responsible Group Responsible Person/s
Environmental, land access & community AECOM Jamie Shaw
Geology & Mineral Resource IHC Robbins Greg Jones
Hydrology & water management AECOM Robert Wallis
Tailings management Knight Piésold Brett Stevenson
Geotechnical AMC Consultants Ruth Stephenson
Mining & Ore Reserve AMC Consultants Adrian Jones
Metallurgy