Hatton W.,SRK Consulting UK Ltd |
Fardell A.,SRK Consulting UK Ltd
International Journal of Coal Geology | Year: 2012
The coal in Mozambique's Tete province has been known about for a long time, as the artist/explorer Thomas Baines first captured onto canvass a coal outcrop on the banks of the Zambezi in the late 1850s. The first geological works in the Tete province referred to the studies of coal occurrence, and were undertaken by Richard Thornton (1859), a geologist on the Zambezi expedition under Dr David Livingstone and Guyot. However, most of the recent exploration has been conducted to ascertain the economic potential of the coal resources within the region. The majority of these resources are located within remnants of the Ecca Group of rocks, of the Karoo Supergroup, in the Zambezi graben of the Tete province of Mozambique. The coalfield consists of various sub-basins and is considered the largest undeveloped coal province in the world. Amongst others, it forms host to the well publicised Moatize metallurgical and thermal coal deposit, reported to contain 2.4. Gt of coal and located within the Moatize sub-basin.In late 2004, a consortium of companies headed by Brazilian iron-ore miner, Vale, won the right to develop the Moatize coal deposit. Other companies which tendered for this right were BHP Billiton, Rio Tinto and Anglo American. Vale is partnered in this project with American Metals and Coal International (AMCI), a North American coal producer, which owns 5% of the consortium. The consortium bid $122.8. M for the rights to explore and develop the coal deposit.The allocation of the tender award to Vale opened the way for smaller investors, such as the Zambezi Energy Corporation (ZEC) who decided in late 2004 to develop a number of projects within licence blocks in the Zambezi graben. Investment within the region has accelerated rapidly over the last couple of years and the region has seen a number of developments. During this time the authors have helped to develop the potential of new coal resources and have modified the traditional coal resource estimation techniques, such that they can be used for reporting coal resources according to the terminology and guidelines given in the JORC (the Joint Ore Reserves Committee) code (JORC, 2004).The paper describes the complexities of the underlying regional and local resource geology and describes the challenges of producing resource estimates to international standards, such as JORC. © 2011 .
Davies A.A.,SRK Consulting UK Ltd |
Perkins W.F.,Aberystwyth University |
Bowell R.J.,SRK Consulting UK Ltd
Geochemistry: Exploration, Environment, Analysis | Year: 2016
Parc mine in north Wales was abandoned after closure in 1963 and spoil heaps were left to erode into the Nant Gwydyr and Conwy River. A storm event in 1964 caused the west slope of the tailings dam to collapse into the river, polluting 11 ha of farmland with lead and zinc. Reclamation work commenced in 1978 and involved reshaping the tailings pile and capping the north and central sections of the site with limestone quarry waste. The north section was also sown with metaltolerant vegetation (Festuca rubra, Argostis tenuis and Trifolium repens). The aim of the study was to understand how different reclamation surfaces affected soil chemistry using GIS. The uncapped south section, whilst having the most heavily polluted soil (74 mg/kg As, 24,000 mg/kg Pb, and 19,000 mg/kg Zn), supported the establishment of patchy but diverse metal-tolerant vegetation (Alnus incana, Fagus sylvatica, Ulex, Sorbus aucuparia). The capped north section had the least polluted soil (19 mg/kg As, 478 mg/kg Pb, and 1400 mg/kg Zn), densely vegetated with a nitrogen-fixing legume (Trifolium repens), and was able to support grazing animals, but remained visually incongruous and failed to support the re-establishment of native vegetation. The central section, which combined capping with native vegetation (Betula pubescens and Quercus petraea), was considered moderately polluted (26 mg/kg As, 3908 mg/kg Pb, and 9000 mg/kg Zn). Zinc was found to be the limiting contaminant for vegetation growth with soil concentrations exceeding 12 000 mg/kg corresponding to areas of bare ground in the south and central sections. Barium was the only element to increase in the capped sections, indicating the limestone quarry waste used to cap the tailings was most likely barium-rich. © 2016 The Author(s).
Warrender R.,SRK Consulting UK Ltd |
Pearce N.J.G.,Aberystwyth University |
Perkins W.T.,Aberystwyth University |
Florence K.M.,Aberystwyth University |
And 5 more authors.
Mine Water and the Environment | Year: 2011
This paper addresses the ability of five low-cost reactive materials to remove Zn, Pb, and Cd from Fe-poor, circum-neutral pH metal mine water in Mid-Wales, UK. Compost, fly ash, waste shell material, iron ochre, and a mixture of blast furnace slag (BFS) and basic oxygen furnace slag (BOS) were used in a series of small-scale passive treatment cells to assess metal removal from mine drainage initially containing, on average, 23.5 mg/L Zn, 0.5 mg/L Pb, and 0.05 mg/L Cd. Trial treatment cells contained between 1.5 and 12 kg of reactive media, had a 15 min residence time, and treated a discharge of up to 1 L per minute. Fly ash from a peat-fired power station was found to be the most effective material for metal removal, with concentrations reduced to 0.02 mg/L Zn, 0.0069 mg/L Pb, and 0.0001 mg/L Cd from over 1,000 L of water (between 98.6 and 99.9% removal). The other materials initially achieved high levels of metal removal (between 75 and 99.9% Zn, Pb, and Cd removed); however, all of the materials were saturated with Zn after less than 200 L of water had been treated. Metal sorption ranged from 21.4 mg/g Zn for the peat fly ash to 0.0015 mg/g Cd for the compost and BOS/BFS slag. The results of the pilot-scale field trials can be scaled to demonstrate that a modest-sized fly ash treatment cell (2.6 × 2.6 × 1 m) in size would be sufficient to remove 90% of the total metal load (Pb, Zn, and Cd) from this 10 L/min mine water discharge for a 1 year period. Importantly this research demonstrates that passive treatment for metal mine drainage can comply with water quality directives but cannot be considered a 'walk-away' solution; it requires modest (potentially annual) maintenance. © 2011 Springer-Verlag.
Idrysy H.E.,SRK Consulting UK Ltd |
Connelly R.,SRK Consulting UK Ltd
Procedia Engineering | Year: 2012
The presentation focuses on the water management aspects of mining projects, from the mine exploration phase, through mine development, to closure and rehabilitation. Based on SRK's water management experience in many mine projects across the globe, we believe that water resources and their management are often not considered early enough in the development of such projects. This often results in risks that could be mitigated easily at the start of the project becoming issues, particularly during the mine's operational phase. The presentation summarizes the critical water aspects that can present significant risk to the development of a mine and highlights the advantages of considering these water management aspects early in the project. It also presents SRK's approach to assessing mine water resources more accurately and how to prepare an effective water management plan to mitigate the risks that can otherwise adversely affect the mine's operational development, safety and productivity. © 2012 The Authors. Published by Elsevier Ltd.
Prichard H.M.,University of Cardiff |
Fisher P.C.,University of Cardiff |
McDonald I.,University of Cardiff |
Knight R.D.,University of Cardiff |
And 2 more authors.
Economic Geology | Year: 2013
The Spotted Quoll PGE-bearing Ni deposit in the Forrestania greenstone belt in the Archean Yilgarn block in Western Australia is a komatiite-associated massive sulfide orebody tectonically displaced from its original host. The brecciated ore contains clasts of quartz and garnet schist and is located along a shear zone overlain by banded iron formation (BIF) and underlain by BIF and quartz-biotite metasediments. The deformation of the ore has destroyed its magmatic textures and it has been sheared and recrystallized at amphibolite facies. Then the deformed ore has been subjected to a hydrothermal event that concentrated the PGE with Au and As, often at the edge of the Ni ore. The PGE are distributed between PGM and in solid solution in Ni sulfarsenides, and Pd also occurs in pentlandite. The PGM include sudburyite (PdSb), sperrylite (PtAs2), and irarsite (IrAsS). All six PGE and minor Au are hosted in gersdorffite (NiAsS). Two generations of gersdorffite have been recognized. A higher temperature magmatic euhedral Co-rich gersdorffite encloses Ir-, Pt- and Rh-bearing PGM surrounded by halos of Rh-, Ir-, and Os-rich gersdorffite. A lower temperature Ni-rich gersdorffite forms anhedral grains and rims on grains of nickeline (NiAs). In this low-temperature gersdorffite PGE are concentrated toward the mineral edges. Sudburyite and gold occur associated predominantly with nickeline. The PGE and gold are now predominantly associated with sulfarsenides that are the controlling factor for their distribution. © 2013 Society of Economic Geologists, Inc.
Reston M.S.,African Minerals Ltd |
Baker H.T.,SRK Consulting UK Ltd |
Elvish R.D.,BE Enterprises |
Reardon C.A.,African Minerals Ltd |
Young B.J.W.,African Minerals Ltd
IRON ORE 2011, Proceedings | Year: 2011
The Tonkolili banded iron formations (BIF), Sierra Leone, host extensive iron ore deposits which are of economic signifi cance to the seaborne iron ore trade. The deposits are dominated by a strategic JORC compliant mineral resource of 11.6 Bt grading 30.1 per cent Fe comprised of primary magnetite mineralisation in the form of a fresh metamorphosed BIF featuring a uniform mineral assemblage of quartz-magnetite ± ferro-silicate minerals. Pilot plant metallurgical test work has demonstrated that the production of a magnetite concentrate is achievable using the established benefi ciation techniques of magnetic separation and fl otation. The concentrates are high-grade, and suitable for blast furnace or direct reduced iron pellet feed. The major challenge facing the development of such magnetite deposits at industry competitive production rates is the signifi cant capital investment required for process plant and associated infrastructure. Two well-developed weathering zones exist within the deposits, and are associated with the progressive development of a tropical weathering profi le overprinting the primary BIF. These zones feature a near surface hard indurated duricrust up to 60 m thick, and a soft progressively developed saprolite between duricrust and fresh BIF. These zones have been found to be amenable to producing iron ore products including DSO lump and sinter fi nes from the duricrust, and concentrate from the saprolite. Mineral resources suffi cient to support commercial production of such iron ore products were defi ned by an intensive exploration program in 2010. African Minerals Limited has developed a three phase production strategy to progressively selffund the development of the Tonkolili strategic magnetite project by: • commencing a Phase I 12 Mt/a DSO operation in Quarter 4 2011, • increasing production in Phase II to 35 Mt/a with the commissioning of a saprolite benefi ciation plant and associated infrastructure upgrades, and • developing a 45 Mt/a Phase III operation producing high-grade magnetite concentrate. The comparatively low capital and operating costs of a duricrust DSO lump and sinter fi nes operation coupled with its proximity to ground surface make it highly attractive for the generation of early cash fl ow for the Tonkolili project. Revenue from this early production may be used to selffund the subsequent development of phases requiring progressively more signifi cant benefi ciation plant and infrastructure.
News Article | February 28, 2017
During the fourth quarter, Nordic Mines continued to make progress at the Laiva Project. The primary Management focus over the past 2 quarters has been twofold. The first has been to explore ways to reduce the mining and processing of waste material, crucial in low grade gold deposits such as Laiva. The second is to plan a drill programme which will a) allow for the mining of wider sections than previously and b) to step out to expand the resource, develop new pits and reduce the strip ratio in the early production years. Drilling will allow Management to establish the grade of the potentially immediately mineable resource and upgrade an element of the existing resource to mineable. It will also allow for accurate management of bench height and dip together with the associated strip. Management conducted a lengthy laser optical sorting programme over two years culminating in a large sorting test at Mandalay's Bjorkdal Mine in Sweden in August 2016. Optical sorting, in various forms, has been widely used in mining since the 1990's. Sorting is essentially a secondary strip. We consider the results at Bjorkdal very successful: back calculated grades reporting to the mill have been upgraded by 45%. These results confirm that optical sorting of our quartz diorite and volcanic ores is likely to form an influential element of our plan to return the Laiva deposit to long term profitable production once funded. The Laiva deposit strike length has been traced for over 8 kms. It is a relatively unexplored deposit to date and management is confident that there is potential to increase mineable resources significantly along strike and at depth; an opinion based on known mineralised and drilled outcrops and drill hole data from the historic 79,000 meters 499 hole drill programmes. Funding The Board of Directors of Nordic Mines is examining various strategic options available in order to create shareholder value and expedite taking the Laiva Mine back into production. We anticipate that some of these options will crystallize over the next month or two. The Board will announce the preferred way forward, as soon as possible. The options range from dual listing in a second major stock market, partnering with prominent gold investors, an outright sale, executing a rights issue or a combination. Due diligence is being undertaken on some of these potential options. In the meantime, Lau Su Holdings AB ("Lau Su") intends to make a further shareholder loan to the Company of USD 0.5 million as a bridge to a larger financing. Subject to terms and board approval, Lau Su has also indicated that it is prepared to underwrite a percentage of a proposed rights issue. All of Lau Su's outstanding shareholder loans would be expected to convert into ordinary shares in the Company on the same terms as the rights issue. Nordic Mines hopes to make an announcement to the market shortly in this regard. Net sales were SEK 0.0 million (SEK 0.0 million) during the fourth quarter of 2016 and year to date as the Laiva mine remains on care and maintenance and is not in production. Production costs amounted to SEK -3.8 million (SEK -2.7 million Q4 2015) during the last quarter of 2016. Even though there has not been any production during the quarter, the Company has maintained some of the organisation around the Laiva mine, for example for maintenance work and environmental supervision. The mine and the plant also have a number of fixed costs, for example balancing the water levels in the mining area, which remain even though the mine is not in production. Depreciation, amortisation and impairment losses for the fourth quarter of 2016 were SEK -3.5 million (SEK -5.8 million Q4 2015). The Company reported an operating result of SEK -12.3 million (SEK -25.0 Q4 2015). Net financial items were SEK -0.2 million (SEK 101.0 million, primarily accumulated interest). The Company's income tax for the period has an impact on profit of SEK 0.0 million (SEK 0.0 million). Loss for the period after tax amounted to SEK -12.5 million (SEK 76.1 million Q4 2015). Cash flow from operating activities including changes in working capital for the fourth quarter of 2016 amounted to SEK -7.7 million (SEK -34.3 million Q4 2015). Net cash flow from the financing operations amounted to SEK 7.0 million (SEK 48.9 million Q4 2015) during the same period. Cash and cash equivalents at the end of the period amounted to SEK 2.9 million compared to SEK 3.5 million as of 30 September 2016. Therefore the Company does not currently have sufficient funds to cover its needs for the next three months at the date of this report. If external funds are not provided, it is the assessment of the Board that there is a high risk that the Company will be facing a liquidity deficit. However, the majority owner Lau Su has announced to the Board that they are strongly committed to fulfil the new management's funding needs for the Company going forward. For more information please refer to Liquidity Risks. At the end of the period, the Group's equity was SEK 489.7 million, compared to SEK 501.9 million as of 30 September 2016. For risks related to the Company's equity, please refer to the Going Concern Principle. The equity/assets ratio was 88.7 per cent compared to 89.8 per cent as of 30 September 2016. Net debt was SEK 8.5 million compared to SEK 0.8 million as of 30 September 2016. Since the Company is currently not conducting any mining operations at the Laiva mine, only smaller investments have been made. Net investments during the quarter amounted to SEK -0.0 million, compared to SEK 0.6 million during the same quarter of 2015. As per January 2013, the Group stopped using a segment division as there has only been one productive mine in Finland within the Group, and exploration work is currently limited to an administrative scope due to cost savings. The consolidated income statements and balance sheets have been reviewed and valued thereafter. During the fourth quarter of 2016, the average number of employees was 16. No serious accidents were reported during the period. Due to cost savings, Nordic Mine's exploration work was more or less suspended at the beginning of 2013. In total, capitalised exploration expenses as of 31 December 2016 amounted to SEK 64.7 million. Mineral resource and mineral reserve, 1 January 2015, prepared by SRK Consulting UK Ltd The tables below shows the most recent update to the Mineral Resource estimate that includes ore sorting that reduces the amount of waste rock and the previous Mineral Resource estimate without sorting. The mineral resource is reported at a cut off of 0.3 g/t. The calculation of the mineral resource was based on an assumed five-year gold price of €1,225 per tr.oz (USD 1,400 per tr.oz). The mineral resource is reported at a cut-off grade of 0.6 g/t. The model for the calculation of the mineral resource is limited by an assumed gold price of €1,300 per troy ounce (USD 1,510 per troy ounce). The reported mineral resource includes the mineral reserve shown below. The mineral reserve is reported at a cut-off grade of 0.6 g/t. The calculation of the mineral reserve was based on an assumed five-year gold price of €1,020 per troy ounce (USD 1,184 per troy ounce). For definitions, see the section Definitions in accordance with SveMin. The gold market and price of gold According to LBMA (London Bullion Market Association) gold fixing, the price of gold was listed at the beginning of the quarter per troy oz at USD 1,318.65 and EUR 1,175.27, and at the end of the quarter at USD 1,159.1 and EUR 1,100.03. The Nordic Mines share has been traded on the Nasdaq Stockholm's Small Cap list since July 2008. The ticker symbol for the share is NOMI and the ISIN code is SE0007491105. As per 30 December 2016, the number of shareholders in Nordic Mines amounted to approximately 13,000. The ten largest shareholders in the Company are listed in the table below. As per 30 December 2016, the market capitalisation amounted to SEK 282.9 million divided between 565,722,756 shares with a quota value of SEK 0.5 each. Equity amounted to SEK 489.7 million at 31 December 2016, compared to SEK 501.9 million at 30 September 2016. All enterprise is associated with a certain degree of risk. Nordic Mines' operations must be assessed based on the risk, cost and difficulty that companies in the mining and exploration business often face. The risks in the majority of cases are such that the Company cannot protect itself from them. The risk faced by mining and exploration companies is mainly associated with the outcome of the exploration itself, the production and the market price on the metal markets, but there is also risk associated with licensing issues related to exploration, processing and the environment. The Group is also exposed to a number of financial risks: liquidity risk, credit risk, gold price risk and currency risk. The Board and Management attempt to address these risks by identifying, evaluating and mitigating the risks listed above where appropriate. A more detailed analysis is available in the 2015 Annual Report as well as in the prospectus from 2015, which are available on the Company's website, www.nordicmines.se. The Company currently does not have sufficient funds to cover its needs for the next three months at the date of this report. Cash and cash equivalents totalled SEK 2.9 million at the end of the fourth quarter 2016 and the Company basically does not have any income since production as the plant was closed, albeit there have been some modest timber sales in the fourth quarter. The Company is dependent on external capital contributions for continued operations. The Company does not currently have the funds to restart operations at the Laiva mine. In order to fund the restart of the Laiva mine, a capital contribution in addition to existing cash and cash equivalents would be required. This capital contribution is intended to fund working capital related to the restart, initial investments and a liquidity reserve for unforeseen costs and administration. This funding is assumed to be a combination of debt financing and additional equity contributions. If the Company fails to raise additional capital, there is a risk that a liquidity deficit will eventually occur. Given such a development, it is a risk that the Finnish composition plan would default, thus leading to a new reorganisation, bankruptcy or other winding down of the Company. On 31 July 2014, the Uleåborg District Court decided to adopt the composition plan proposal filed with the court by the administrator for Nordic Mines' Finnish subsidiary. The composition plan includes conditions that allow the Company's creditors and the composition plan supervisor, attorney Hannu Ylönen from the Krogerus law firm, to apply for the composition to be revoked under certain conditions. Ground for termination include those related to the Group companies not fulfilling their payment obligations under the composition plan. If Nordic Mines Oy breaches the composition plan, there is a risk that the Finnish composition plan will fail, which could lead to a new reorganisation, bankruptcy or other winding down of the Company. In the event the Finnish composition plan defaults, the relevant creditors' claims return to Nordic Mines Oy, at their full amount, and in the event of bankruptcy all shareholders will lose the entire amount of their previously invested share capital. A more detailed analysis on the Composition plan in Nordic Mines Oy is available in the prospectus from 2015, which is available on the Company's website, www.nordicmines.se. Sales commenced in January 2012 and essentially have consisted of a single product, doré bars, containing gold, silver and copper. A decline in the price of gold could have a negative impact on the Group's future profit as well as a negative impact on the Company's possibilities for restarting operations at the Laiva mine. Gold is quoted in USD, the majority of the costs occur in EUR and the Group is consolidated in SEK. Accordingly, the Company is directly dependent on exchange rates for these currencies. If USD strengthens against EUR, this has a positive effect. If EUR strengthens against SEK, this has a positive effect on sales, but a negative effect on costs. Nordic Mines currently has a small organisation and is dependent on a number of key individuals. A limited expected lifetime and to date weak profitability for the Laiva mine can result in restricted opportunities to recruit key personnel once the mine restarts its operations. The Company currently does not have sufficient funds to cover its needs for the next twelve months at the date of this report. The Company basically has had no income since the production at the process plant was closed down, and it is therefore dependent on external capital contributions for its continued operation. For more information please refer to Liquidity Risks above. There are no guarantees that external capital will be raised for continued operations. There are also no guarantees that, at the point in time when a decision must be made about the restart of operations, Nordic Mines will have sufficient liquidity to finance a restart of operations at the Laiva mine. In a situation where it can no longer be assumed that the Group is a going concern, there is a risk that the Group's assets and the Parent Company's carrying amounts on receivables to Group companies and participations in subsidiaries will be subject to significant impairment losses. The consolidated accounts have been prepared in accordance with the International Financial Reporting Standards (IFRS) as endorsed by the EU and recommendation RFR 1 issued by the Swedish Financial Reporting Board on Supplementary Accounting Rules for Groups, which specifies the additions to the IFRS disclosures that are required as stipulated in the Annual Accounts Act. This financial report was prepared in accordance with IAS 34, Interim Financial Reporting. The Parent Company's financial statements are prepared in accordance with the Annual Accounts Act and RFR 2, Accounting for Legal Entities. The Group uses the same accounting principles as those described in the 2015 Annual Report. No new IFRS additions or regulations that affect the Group have entered into force. The Board of Directors and the Chief Executive Officer hereby confirm that this interim report gives a true and fair view of the Company's and the Group's operations, financial position and results of operations, and describes significant risks and uncertainties faced by the Company and the companies in the Group. The report for October - December 2016 has not been reviewed by the Company's auditors. Nordic Mines is required to publish this information pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was published on 28 February 2016, at 8:00 a.m. GMT. For further information, please contact: A Mineral Resource is a concentration of occurrences of materials in or on the earth's crust in such form, quality and quantity that is of interest financially and for which financially profitable extraction is deemed possible. The location, quantity, grade, continuity and other geological characteristics of a mineral resource are measured, estimated or interpreted based on specific geological facts, tests and knowledge. On the basis of its geological certainty, a mineral resource is classified into the following categories: inferred mineral resource, indicated mineral resource and measured mineral resource. An Inferred Mineral Resource is the part of a mineral resource for which the tonnage, density of occurrences, form, physical characteristics, grade and mineral content can be estimated with a level of confidence. This is inferred from geological evidence, tests and assumed but not verified geological or grade continuity. It is based on information gathered using appropriate techniques through exploration and testing of, for example, outcrops, trenches, pits, workings and drill holes. The information is limited or of quality and reliability. An Indicated Mineral Resource is the part of a mineral resource for which the tonnage, density of occurrences, form, physical characteristics, grade and mineral content can be assumed with a level of confidence. It is based on information gathered using appropriate techniques through exploration and testing of, for example, outcrops, trenches, pits, workings and drill holes. However, this information is too inconsistent or inappropriately distributed to geological or grade continuity. A Measured Mineral Resource is the part of a mineral resource for which the tonnage, density of occurrences, form, physical characteristics, grade and mineral content can be assumed with a level of confidence. It is based on information gathered using appropriate techniques through detailed and reliable exploration and testing of, for example, outcrops, trenches, pits, workings and drill holes. This information is sufficiently consistent to geological and/or grade continuity. A Mineral Reserve is the part of a measured or indicated mineral resource that is deemed to be economically feasible for extraction. This includes diluting material and losses which may occur when the material is mined. Appropriate assessments and studies have been conducted and modified taking into consideration realistic assumptions related to mining, metallurgical, economic, marketing, legal, environmental, social and political factors. These assessments show on the reporting date that extraction can be reasonably justified. On the basis of their geological certainty, mineral reserves are classified into the following categories: probable mineral reserve and proven mineral reserve. When using the term "mineral reserve", there is an expectation that studies have been conducted at the Pre-Feasibility level as a minimum, including a mining plan that is technically appropriate and economically viable. A Probable Mineral Reserve is the part of an indicated or under some circumstances measured mineral resource for which extraction is economically viable. This includes diluting material and losses which occur when the material is mined. Studies at a minimum of the Pre-Feasibility level have been conducted and modified to take into consideration mining, metallurgical, economic, marketing, legal, environmental, social and political factors. These assessments show on the reporting date that extraction can be justified. A Proven Mineral Reserve is the part of a measured mineral resource for which extraction is deemed to be economically viable. This includes diluting material and losses which occur when the material is mined. Studies at a minimum of the Pre-Feasibility level have been conducted and modified to take into consideration mining, metallurgical, economic, marketing, legal, environmental, social and political factors. These assessments show on the reporting date that extraction justified.