TIDMRLD
RNS Number : 8596B
Richland Resources Ltd
22 June 2016
22 June 2016
Richland Resources Ltd
("Richland" or the "Company")
JORC Resource Estimate Update for Capricorn Sapphire Mine
Richland (AIM: RLD), the gemstones producer and developer, today
announces an updated JORC resource estimate for the group's wholly
owned Capricorn Sapphire mine, located in Queensland,
Australia.
Highlights:
-- Newly defined area of resource, which will be the focus for
mining operations over the next 12 months as production ramp-up
continues.
-- Updated Measured and Inferred Mineral Resource of 115.5
million carats of sapphire and corundum comprising:
o original JORC Code (2004) compliant historical Measured
Resource of 107.5 million carats following the mining of 1.5
million carats since July 2015; and
o additional JORC Code (2012) Inferred Resource of 8 million
carats at a grade of 10 carats per tonne recently established.
-- Expansion of project's geological and mineralisation model.
One of the Company's core objectives during Q4 2015 and H1 2016,
has been to update the geological model at the group's Capricorn
Sapphire mine and further expand the resource estimate in
compliance with the JORC Code (2012). The Capricorn Sapphire
project remains on schedule to meet its ramp-up targets in 2016,
and our geological delineation programme allows the Company to
improve and refine its mine programme and scheduling.
During 2016 to date, independent geological consultant, Mr
Andrew Cunningham, a highly experienced alluvial diamonds and
gemstone geologist, has identified and analysed the paleo channels
within which sapphires are predominantly concentrated. The
Company's new forward mining model allows for structured grade
control as increased capacity is reached across the mining
circuits.
Andrew Cunningham, independent geological consultant,
commented:
"Following 12 months of focussed geological work, the Capricorn
Sapphire mine now has a meaningful additional, independently
audited, JORC resource estimate and, perhaps almost as important, a
more detailed mine plan in place with a far greater understanding
of the geology and mineralisation of the deposit. I am now working
on a daily basis with Richland's mining team to assist in expanding
production and ensure maximum efficiency in terms of grade control
within the plant."
Bernard Olivier, Richland's CEO, commented:
"I am very satisfied with the geological work completed to date
and pleased that it has led to the development of an improved and
structured 12 month mine plan to support the ongoing efficiency of
the Capricorn Sapphire mine as production continued to ramp-up.
Following our optimisation work earlier in the year, I am pleased
with our resultant progress at the mine and look forward to
updating the market on our further progress in the next quarterly
operational and sales update."
Geological and JORC Mineral Resource Update
Geology
The Central Queensland sapphire deposit (the Anakie deposit),
which includes the Capricorn Sapphire project's licence area, is
predominantly underlain by Cainozoic and Quaternary Alluvials which
overlay polymictic gravels, which host the sapphire and associated
minerals. Sapphire mineralisation is principally associated with
Tertiary and Quaternary alluvial placers, derived through erosion
of Tertiary alkali volcanic rocks, mostly basaltic lavas,
pyroclastics and volcaniclastics of the Eastern Australian
Cainozoic Igneous Province. Sapphires and associated heavy minerals
are commonly concentrated along palaeochannels of various depths
and often comprise linear zones called "runs".
Mineral Resources
Historic JORC (2004) Measured Resource
As at June 2014, the Company's wholly owned subsidiary,
Capricorn Sapphire Pty Ltd ("Capricorn Sapphire"), held two mining
leases, ML70419 and ML70447, which had a JORC (2004) Measured
Resource of 109 million carats of sapphire and corundum. The JORC
(2004) resource estimate was based on Caldwell drilling and bulk
sampling conducted in 1991 and infill drilling in 2004 . The JORC
(2004) resource work delineated an alluvial placer area of 115 ha
and an average grade of 8 g/LCM (ca. 20 carats / tonne) was
calculated from the drilling and bulk sampling of the mining
leases. Since June 2014, Capricorn Sapphire has mined approximately
1.5 million carats from the JORC 2004 delineated resource area.
Based on the historical Measured Resource and subtracting the
carats mined since June 2014, derives an estimated total of 107.5
million carats remaining within the historically defined JORC 2004
area.
Additional JORC (2012) Inferred Resource
During the Q4 2015 and H1 2016 geological programme, a total of
12 observation pits and 24 Caldwell drill holes were completed in
the "Northern Flats" resource area, located approximately 500m
north east of the current mining area (refer to figure 1). The
Northern Flats resource area is located outside of the JORC 2004
delineated resource boundary and therefore represents an addition
to the "global" resource on the ML70419 licence.
Sample collection, geological logging, storage, transport and
treatment were all completed under the direction and supervision of
the group's independent geological consultant, Mr Andrew
Cunningham, thereby ensuring a full chain of custody. A variety of
Quality Assurance/Quality Control procedures were implemented to
ensure accurate recoveries of the treated material. A sample
treatment plant was designed and built to mimic the Capricorn
Sapphire project's existing main treatment plant, in order to
enable accurate reflection of operational recoveries. The sample
treatment plant consisted of a feed-bin, a wet screening trommel
and a two-cell, three-tray jig. All material concentrated by the
jigs was collected, bagged and sealed for further sorting at the
Company's sorting facility. All collected samples were dry sieved
using the same sieve sizes and cut-off values as used in Capricorn
Sapphire's mine production. The recovered material and subsequent
grades calculated from the sampling programme are therefore
comparable to the mining operations and not just theoretical.
The sampling and geological results were used to create a
geological and mineralisation model with a combination of key
lithological contacts and mineralisation constraints applied as the
estimation domains. All interpretation, contouring, girding and
wireframes were created using ArcGis and Micromine software. The
mineralised zones within the Northern Flats resource area were
modelled using the interpreted orientation of the sapphire bearing
gravels and mineralised domains captured by means of "spheres of
influence" to slightly more than half section spacing between
sample positions.
The Northern Flats resource area was sub-divided into three
distinct resource zones for an estimated total JORC 2012 compliant
Inferred Resources of 8,005,000 carats. The Northern Flats resource
area has an estimated average sapphire bearing gravel thickness of
1.5m with an estimated average overburden of approximately 4m and a
total average grade of 10 carats per tonne utilising the current
Capricorn Sapphire mine operation's cut-off sizes.
The Northern Flats resource area is open towards the east and
south and additional work is planned during 2016, to further
investigate and expand the current resource area.
Total Mineral Resource
The total "global" Mineral Resource for the Capricorn Sapphire
mine, as at 20 June 2016, is set out in Table 1 below.
Table 1: Mineral Resource Statement for Capricorn Sapphire
mine
Deposit Classification Tonnage Grade Contained
(ct/tonne) Carats
Northern
Flats JORC 2012 Inferred 641,000 10 8,005,000
Historic
Area JORC 2004 Measured 5,373,165 20* 107,463,293
Total: 6,014,165 115,468,293
* - Unlike the JORC 2012 Inferred Resource, the JORC 2004
Measured Resource did not utilise the same sapphire cut-off size as
the current Capricorn Sapphire mining operation. A direct
comparison can therefore not be made between the JORC 2004 and JORC
2012 grades and similarly an average total grade cannot be
calculated.
Qualified Person
The Competent Person for the new JORC (2012) resource estimate
and report dated 20 June 2016, which is now available on the
Company's website is Mr Andrew Cunningham. Mr Cunningham is an
independent geological consultant to Capricorn Sapphire, a Member
of the Australian Institute of Geoscientists and a life member of
the Geological Society of Namibia. Mr Cunningham has sufficient
experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person under the 2012 Edition
of the Australasian Code for reporting of Exploration Results,
Mineral Resources and Ore Reserves.
The technical information contained in this announcement has
been reviewed and approved by Mr Cunningham.
The historical JORC (2004) Measured Resource was calculated in
2004 by Mr Brian R. Senior, B.Sc.(Hons), M.Sc., Ph.D.,
F.Aus.I.M.M., Geological Consultant and the principal of B.R.
Senior & Associates Pty Ltd, in his capacity as a "competent
person" as required under the 2004 Edition of the "Australasian
Code of Reporting of Exploration Results, Mineral Resources and Ore
Reserves".
For more information, please contact:
Bernard Olivier Edward Nealon Mike Allardice
Chief Executive Chairman Group Company Secretary
Officer +61 409 969 955 +852 91 864 854
+61 4089 48182
Laurence Read Nominated Adviser Broker
Corporate Development Strand Hanson Shore Capital
and Communications Limited Jerry Keen (corporate
Officer James Harris broking)
+44 (0) 20 3289 Matthew Chandler Toby Gibbs / Mark
9923 James Dance Percy (corporate
+44 (0) 20 7409 finance)
3494 +44 (0) 20 7408
4090
Further information is available on the Company's website:
www.richlandresourcesltd.com. Neither the contents of the Company's
website nor the contents of any website accessible from hyperlinks
on the Company's website (or any other website) is incorporated
into, or forms part of, this announcement.
Glossary of technical terms:
"Alluvial a surficial mineral deposit formed
placer" by mechanical concentration of heavy
mineral particles from weathered rocks
in a river valley;
"cpt" carats per tonne;
"ct" carat;
"Inferred that part of a Mineral Resource for
Resource" which tonnage, grade and mineral content
can be estimated with a low level
of confidence. It is inferred from
geological evidence and assumed but
not verified geological and/or grade
continuity. It is based on information
gathered through appropriate techniques
from locations such as outcrops, trenches,
pits, workings and drill holes which
may be limited or of uncertain quality
and reliability;
"JORC" the Australasian Code for Reporting
of Exploration Results, Mineral Resources
and Ore Reserves, as published by
the Joint Ore Reserves Committee of
The Australasian Institute of Mining
and Metallurgy, Australian Institute
of Geoscientists and Minerals Council
of Australia;
"JORC (2004)" the 2004 edition of the JORC code;
"JORC (2012)" the 2012 edition of the JORC code;
"LCM" loose cubic metre;
"Measured is that part of a Mineral Resource
Resource" for which tonnage, densities, shape,
physical characteristics, grade and
mineral content can be estimated with
a high level of confidence. It is
based on detailed and reliable exploration,
sampling and testing information gathered
through appropriate techniques from
locations such as outcrops, trenches,
pits, workings and drill holes. The
locations are spaced closely enough
to confirm geological and/or grade
continuity;
"Mineral Resource" concentration or occurrence of material
of economic interest in or on the
earth's crust in such form and quantity
that there are reasonable and realistic
prospects for eventual economic extraction.
The location, quantity, grade, continuity,
and other geological characteristics
of a Mineral Resource are known, estimated
from specific geological evidence
and knowledge, or interpreted from
a well-constrained and portrayed geological
model;
"m" metre;
"Sapphire" a gem quality corundum (Al(2) O(3)
) other than ruby. Especially the
blue transparent and coloured varieties
of crystalline corundum containing
small amounts of oxides of cobalt,
chromium and titanium.
Figure 1: Global resource for the Capricorn Sapphire
project.
http://www.rns-pdf.londonstockexchange.com/rns/8596B_-2016-6-21.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
END
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