SGS MINERALS SERVICES – T3 SGS 1344 06-2014

AUTOMATED CORE LOGGING

CORE SERVICES SGS offers integrated support at every stage of exploration, development and operations. We recognize the importance and value of your core - what it represents today and in the future, as your project progresses. Diligent care and use of this key resource includes ensuring:

• Proper handling practices. • Effective documentation of as many

chemical and physical parameters as possible with state-of-the-art techniques such as hyperspectral imaging.

• Secure chain of custody for core, data and samples.

SGS’ technical activities and supervision skills are globally accepted by financiers, environmental agencies and the international mining community. We bring these capabilities to you, your project, your site or your mine gate with our core services package.

Why don’t you take advantage of this expertise to gain a competitive edge!

AUTOMATED CORE LOGGING

SCOPE AND BENEFITS

To maximize return of the considerable investment in drilling and extracting core, SGS has coupled our geological and metallurgical expertise and on-site management strengths, with our partner Corescan’s (www.corescan.com.au) automated core logging capability, to create an industry leading combination for comprehensive core characterization.

The generation of consistent and objective data for core and chip samples can give exploration and mining professionals an increased level of confidence in the data available to them, allowing them to focus their energy, time and experience on building a more

accurate geological model with a level of mineralogical detail than has never been available previously.

The potential applications of automated core logging can include:

• Providing additional, consistent mineralogical and textural information over a wide spatial area.

• Ensuring the maximum geological information is obtained from drill core, today and in the future.

• Improving the depth and confidence of information in resource block models.

• Assisting with the refinement of geometallurgical models for ore processing and mine planning purposes.

Photo courtesy of Corescan, our partner for hyperspectral analysis. www.corescan.com.au

SGS MINERALS SERVICES – T3 SGS 1344 2

Our high-throughput core imaging system generates objective digital mineralogy and textural data that is suitable for import into standard modeling databases. On-site automated core-logging bridges the gap between subjective manual logging and time-intensive, lab-based automated mineralogy techniques such as QEMSCAN.

Automated core logging capability can be installed in exploration camps, mine sites, SGS sample preparation facilities or as a part of SGS on-site mine labs. The resulting logs, sections and data files can be viewed and accessed digitally anywhere in the world in a cloud based application.

Hyperspectral core imaging is one of the latest innovative techniques aiding industry in crossing traditional field-service boundaries. This service and its varied applications, help add long term value to exploration, development and production activities. The data can be used in:

• Long term strategic exploration planning.

• Development of the deposit block model.

• Geometallurgy. • Block model preparation and resource

modeling. • Operational mine planning. • Metallurgical performance

management. • Development of environmental

strategies and activities. • Closure planning.

Even archived core can be analysed to provide a consistent data set when historical logs are out-dated, lost or incomplete, and can provide security against potential future core loss or damage.

APPLICATIONS

RESOURCE DEVELOPMENT

• Guiding exploration strategy vectoring to mineralization. • Detecting blind mineralization

using a minerals systems approach.

• Mapping the distribution of key alteration minerals.

• Developing bedrock maps. • Drill target delineation. • Planning of drill hole placement. • Correllating structural features

with alteration and orebody geometry.

• Mapping important textural and mineralogical parameters.

• Contributing to ore genesis models.

• Defining zones of environmental sensitivity.

• Delineating target zones for assaying to maximize exploration spend.

• Characterising and preserving internal and Geological Survey archival core using a non-destructive methodology with output that can be made available digitally to stakeholders.

• Creating consistent data sets that allow for the correlation of archival and contemporary sampling or DDH programs.

• Easy sharing of information among globally-dispersed project teams.

• Creation of perpetual digital logs and high resolution digital core photographs of all core or cuttings for archival and regulatory purposes.

PRE-FEASIBILITY AND FEASIBILITY

• Enhance sample selection for pre-feasibility and feasibility metallurgical, geometallurgical and mineralogical test programs: • Provide mineralogical data

to help develop and populate geological block models.

• Optimize infill drilling programs. • Ensure representative sampling

and compositing. • Detection and spatial mapping

of alteration phases that have potential to impact processing performance and design.

• Define domains as part of geometallurgical sampling and related flowsheet development.

Mosaics of entire drill holes can be roamed interactively…

DEPTH

Mosaics of entire drill holes can be roamed interactively…

DEPTH

Photo courtesy of Corescanwww.corescan.com.au

SGS MINERALS SERVICES – T3 SGS 1344 3

• Spatially illustrate project results for investors or prospective technical partners.

• Document the percentage of core recovered which can impact the assignment of analytical grade data to blocks during resource modeling.

• Provide basic geotechnical data and trends for rock competency assessment.

• Correllate mineralogy, texture and structural features with geotechnical results for site and closure planning.

• Map distribution of acid consuming and generating minerals for environmental planning.

• Assess environmental and geotechnical drilling in support of planning activities related to site layout and infrastructure.

• Maintain comprehensive digital records to ensure project continuity and regulatory due diligence.

PRODUCTION

• Rapid analysis of bench blast chips to support ROM blending or stockpile management.

• Automate the relogging of legacy core for direct correlation with newer interpretations.

• Guide mine exploration for orebody extensions and expansions.

• Map various mineralogical (e.g. oxide and sulphide) zones for year-on-year mine planning purposes.

• Provide data for the forecast and management of long term processing adjustments related to changes in clay or alteration mineral (e.g. chlorite) abundances and distribution.

MINERAL GROUP SELECTED IDENTIFIABLE MINERALS

Iron oxides Hematite, goethite, martite, magnetite

Al(OH) group Paragonite, muscovite, phengite, illite, pyrophyllite, kaolinite, halloysite, dickite, smectite varieties, gibbsite

Sulphates Alunite, jarosite, gypsum

Si(OH) group Opaline silica, hydrothermal quartz with fluid inclusions

Fe(OH) group Saponite, nontronite

Mg(OH) group Chlorites (Mg, Fe), biotite, phlogophite, antigorite, tremolite, actinolite, talc, hornblende, brucite, palygorskite

Carbonate group Calcite, dolomite, Fe-dolomite, magnesite, ankerite, siderite, Cu carbonates

Selected OH bearing silicates Epidote, prehnite, tourmaline, topaz

Selected Zn silicates / phosphates Sauconite, tarbuttite

Selected zeolites Laumonite, heulandite, mordenite, natrolite, various

Selected REE bearing minerals Praseodymium, monazite, bastnasite, pyrochlore, carbonates

Selected neosilicates Garnets, olivine

Selected massive sulphides Sphalerite, pyrite

Ammonium bearing minerals NH-alunite, buddingtonite

Table 1 - Minerals Responsive to Hyperspectral Imaging Courtesy of Corescan www.corescan.com.au

Photo courtesy of Corescan www.corescan.com.au

SGS MINERALS SERVICES – T3 SGS 1344 4

WHAT MINERALS SHOW USEFUL HYPERSPECTRAL RESPONSE?Our hyperspectral technology covers the spectral region in which a wide range of alteration minerals and metamorphic facies indicators exhibit spectral absorption features. Table 1 lists the common minerals that can be identified with hyperspectral imaging. Others can be possible, please contact us for more details.

WHAT DEPOSIT TYPES IS AUTOMATED CORE LOGGING USEFUL FOR? Clays, micas and alteration minerals provide valuable exploration, diagenetic and lithological information. Automated core logging is especially useful, therefore, for the following project types:

• Intrusion related and porphyry style deposits hosting copper, molybdenum, gold, base metal, tungsten and tin.

• High and low sulphidation epithermal gold deposits.

• Volcanogenic and sedimentary hosted massive sulphide and gold deposits.

• Skarns. • Intrusion or shear zone hosted gold

deposits. • Iron oxide-copper-gold (IOCG)

deposits. • Sandstone and unconformity hosted

uranium deposits. • Kimberlites. • Rare Earth Element deposits. WHAT APPLICATIONS

AND KEY BENEFITS CAN AUTOMATED CORE LOGGING BRING?While it is beyond the scope of this document to list in detail all the potential applications that hyperspectral analysis can assist with, Table 2 lists several key benefits that arise for a variety of common ore deposit types. If you have

specific interests, please contact SGS.

WHAT METALLURGICAL PROCESSING ISSUES CAN AUTOMATED CORE LOGGING ASSIST WITH? Many clays, micas and alteration minerals contribute to metallurgical difficulties. Automated core logging can help understand these issues by providing consistent quantitative distribution data during project development and mine operation.

DEPOSIT TYPE KEY BENEFIT FROM HYPERSPECTRAL IMAGING

Intrusion and porphyry style deposits

Identification and distribution of alteration and clay mineral assemblages and some ore minerals.

Epithermal gold

Identification and distribution of alteration, amorphous silica veining and replacement and clay mineral assemblages.

Archean shear hosted gold

Identification and distribution of alteration assemblages in which gold is hosted. Extent and location of shear zone.

Carlin-type gold

Identification and distribution of carbonate, clay (including ammoniated species), carbonaceous zones.

Unconformity type uranium Identification and distribution of clay zones is critical in Athabasca Basin uranium deposits.

Bauxite

Identification and distribution of “reactive silica” (kaolinite) zones that poison the Bauer process. Identification of aluminum species.

Iron oreIdentification and distribution of iron species and gangue mineralogy including clays and silicates.

Polymetallic massive sulphide deposits

Identification and distribution of alteration minerals and clay.

REE deposits Identification of REE species and host REE minerals as well as typical alteration assemblages.

SkarnDelineation of skarn alteration mineralogy, zonation and extent.

Kimberlites Identification of clays and micas and their zonations.

LateritesIdentification of mineralogy related to both Fe/Ni and Al-rich deposits.

Potash Identification of both ore and ore-related alteration and gangue mineralogy.

Table 2 - Benefits of Hyperspectral Analysis for Specific Deposit Types

SGS MINERALS SERVICES – T3 SGS 1344 5

PROJECT DEVELOPMENT

• Provide data to assist with developing lithological and structural geological domains to assist with sample selection for met/min programs.

• Flag the presence of potentially hazardous mineral or structural zones.

• Document changes in colour which can indicate amenability to ore sorting.

• Map of oxide-sulphide transition zones.

MINE PLANNING AND OPERATIONS

• Predict changes in weathering, alteration or lithology that could signal potential changes in hardness which can impact on grindability.

• Understand the distribution of clays that are an important factor in flotation and leach unit operations or tailings disposal.

• Address reduction in flotation recoveries due to chlorite or talc overloading.

• Map the distribution of sericite and muscovite and the impact of this on rheology.

TECHNICAL OVERVIEWCorescan´s HCI-3 hyperspectral technology offers a variety of components that can analyse core, cuttings or chips. The unit consists of:

• An integrated RGB (red green blue) digital camera for true colour “regular” core or chip photography (not false colour) at a resolution of 50µm.

• A 3-D laser profiler with a vertical resolution of 15 µm that measures physical textures and crack morphology to enable the documentation of structural features and “core recovery”.

• High resolution VNIR-SWIR (Visible-Near Infrared, Shortwave Infrared) spectrometers that identify and quantify phases at 3.84 nm spectral resolution. These are displayed in false colour.

• A unique co-registered spectrometer configuration that scans each core channel independently, using a linear “pushbroom” methodology which facilitates more consistent and rapid mineral mapping.

• Integrated, secure, internet-based data management and visualisation software platform (www.coreshed.com) which is globally accessible.

• Data generated is suitable for use in third-party statistical and modeling packages.

• Data interface to acQuire NEO

AVAILABILITY AND GEOGRAPHIC DISTRIBUTION SGS is known for precision, accuracy and exceeding the industry standard. We lead the market in remote on-site analytical operations, with over 100 facilities distributed around the world in some of the harshest environments. This new hyperspectral service is available throughout this network, and can be placed in:

• Exploration camps to support mid-to-late stage exploration project drilling programs.

• Core libraries to image archival and in-coming core for the enhancement

of existing data sets for model refinement.

• SGS commercial geochemistry or sample preparation laboratories in areas of high exploration activity to allow multi-user accessibility.

• SGS’ on-site mine labs to meet development and mine expansion needs.

In each scenario, this service can be integrated into SGS’s core services package, providing comprehensive field services including sample handling, imaging, cutting or splitting, sampling and all related data handling, meaning that you can have automated core logging:

• On-site, anywhere in the world, right where and when you need it.

• Turnkey, so you get the data you need to do your interpretations, modeling and planning without the operational headaches.

• Run and supported by technical experts that know their business and have experience with the local operational logistics.

SGS understands that it takes a dedicated support team to ensure that operations and cutting-edge equipment mix well. We have operating XRF and ICP-MS instrumentation in on-site labs in Vietnam, Mongolia and Africa to prove it. As well, we have established over 85 on-site and mobile sample prep units in places as remote as the DRC, Eritrea and Malaysia.

Automated ‘Pseudo’ RQD values are generated for metallurgical modeling by the client

Rock Quality Designation – degree of jointing or fracture in a rock mass (%)

Photo courtesy of Corescan www.corescan.com.au

SGS MINERALS SERVICES – T3 SGS 1344 6

© S

GS

Gro

up M

anag

emen

t S

A –

201

4 –

All

right

s re

serv

ed -

SG

S is

a r

egis

tere

d tr

adem

ark

of S

GS

Gro

up M

anag

emen

t S

A

CONTACT INFORMATION

Email us at minerals@sgs.comwww.sgs.com/mining

THE FUTURE: A PARTNERSHIP OF EXPERTSThe combination of SGS’ on-site operational successes and our established technical strengths with Corescan´s innovative automated core logging capabilities, has resulted in a truly ground breaking service offering. It is now possible for the mineral sector to access this comprehensive service, backed by the logistic and technical strengths of SGS’s remote operations expertise.

Central to this agreement is the two companies’ joint collaboration on future technology and application developments. The relationship with leading automated core logging technology developer, Corescan, demonstrates SGS’ ongoing commitment to providing leading edge integrated exploration services.

Core box scale photographs with mineral overlays show mineral changes in context with structural and physical parameters…

Distribution of gypsum (red=high abundance, blue=low abundance) in core.Courtesy of Corescan www.corescan.com.au

Partnership between SGSand Corescan Pty Ltd