Mineral Resource and Reserve aspects of the Junior … Resource and Reserve aspects of the Junior...
Transcript of Mineral Resource and Reserve aspects of the Junior … Resource and Reserve aspects of the Junior...
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Mineral Resource and Reserve aspects of the Junior Miners on the Bushveld ComplexKen Lomberg
Extraordinary PeopleExtraordinary Outcomes
Majors - Historically• Anglo Platinum• Impala• Lonmin
Mid Tier - Producers• ARM• Aquarius Platinum• Eastplats• Northam• Xstrata
So what is a Junior Explorer?
Canadian Definition of a Junior Explorer
• No significant income from mining or other business• Funding not from previous production or investments• Funding not from single majority holding company• Principal funding from seed capital or issue of shares• Not exploration arm of a major company• Not a primary producer• Not a government organisation
ExplorationPre-
development Capex Production
Private equity funds, hedge funds
Private equity funds, hedge
funds, general public
Institutions, general public, banks
Inferred
Indicated
Measured
Probable
Proven
Pre-inferred
ResourcesBFSPFS
Juniors MajorsD
isco
very
Reserves
Ope
ratio
ns
Crossover
Junior Companies
• Platfields• Platmin• Platinum Australia• Platinum Group Metals• Platinum Mining Ventures • Ridge Mining• Sephaku• Sylvania Resources• Wesizwe Platinum
• AIM Resources• Anooraq• Barrick • Bushveld Platinum• Caledonia Mining• Eastern Platinum• Ivanplats• Jubilee Platinum• Lesego Platinum• Nkwe Platinum• Pan Palladium
ExplorationPre-
development Capex Production
Private equity funds, hedge funds
Private equity funds, hedge
funds, general public
Institutions, general public, banks
Inferred
Indicated
Measured
Probable
Proven
Pre-inferred
ResourcesBFSPFS
Juniors MajorsD
isco
very
Reserves
Ope
ratio
ns
Project Maturity
Need for accuracy at/above cut-off
Need for low level assay sensitivity
The Bushveld Complex
Economic Horizons• Merensky Reef• UG2 Chromitite Layer• Platreef• Other?
NORTHERN LIMB
FAR WESTERNBUSHVELD COMPLEX
f
f
ff
f
f
f
f
f
f
f
RUSTENBURG
BELA-BELA
Kookfontein upfold
PRETORIA
JOHANNESBURG
Spruitfontein upfold
Wolhuterskop
Pilanesberg Complex
Gap areas
0 20 40 60 80 100 km
-25°
25°-
26°-
24°-
WESTERNBUSHVELD COMPLEX
MOKOPANE
MIDDELBURG
Steelpoort fault
EASTERNBUSHVELD COMPLEX
Wonderkop fault
Kalkloof anticline
Schwerin foldDerdegelid pericline
Steelpoort pericline
BURGERSFORT
30° I
29° I
28° I
27° I
26° I
f
N
f
f
f
f
I
29°
I
28°
I
27°
Lower, Main and Upper Zone
Critical Zone
fFold axisFault
f
I
26°
-24°
I
30°
Brits Graben
f
f
ff
f
f
f
f
f
f
f
RUSTENBURG
BELA-BELA
Kookfontein upfold
PRETORIA
JOHANNESBURG
Spruitfontein upfold
Wolhuterskop
Pilanesberg Complex
Gap areas
0 20 40 60 80 100 km
- 25° 25° -
WESTERNBUSHVELD COMPLEX
28°I
27°I
26°I
I
28°I
27°
f
Brits Graben
Lower, Main and Upper Zone
Critical Zone
fFold axisFault
Northam
Amandelbult
Union
BRPM
Impala
Rustenburg Lonmin
Eastplats
Elands
Aquarius
f
f
ff
f
f
f
f
f
f
f
RUSTENBURG
BELA-BELA
Kookfontein upfold
PRETORIA
JOHANNESBURG
Spruitfontein upfold
Wolhuterskop
Pilanesberg Complex
Gap areas
0 20 40 60 80 100 km
- 25° 25° -
WESTERNBUSHVELD COMPLEX
28°I
27°I
26°I
I
28°I
27°
f
Brits Graben
Lower, Main and Upper Zone
Critical Zone
fFold axisFault
De Wildt
Madibeng
WesizweWBJV
PilanesbergSedibelo
Rooderand
Pandora
NORTHERN LIMB
FAR WESTERNBUSHVELD COMPLEX
f
f
ff
f
f
f
f
f
f
f
RUSTENBURG
BELA-BELA
Kookfontein upfold
PRETORIA
JOHANNESBURG
Spruitfontein upfold
Wolhuterskop
Pilanesberg Complex
Gap areas
0 20 40 60 80 100 km
-25°
25°-
26°-
24°-
WESTERNBUSHVELD COMPLEX
MOKOPANE
MIDDELBURG
Steelpoort fault
EASTERNBUSHVELD COMPLEX
Wonderkop fault
Kalkloof anticline
Schwerin foldDerdegelid pericline
Steelpoort pericline
BURGERSFORT
30° I
29° I
28° I
27° I
26° I
f
N
f
f
f
f
I
29°
I
28°
I
27°
Lower, Main and Upper Zone
Critical Zone
fFold axisFault
f
I
26°
-24°
I
30°
Brits Graben
f
BELA-BELA
PRETORIA
0 20 40 60 80 100 km
- 25° 25° -
24° -
MOKOPANE
MIDDELBURG
Steelpoort fault
EASTERN BUSHVELD COMPLEX
Wonderkop fault
Kalkloof anticline
Schwerin foldDerdegelid pericline
Steelpoort pericline
BURGERSFORT
30°I
29°I
f
f
f
f
f
I
29°
- 24°
I
30°Lower, Main and Upper Zone
Critical Zone
fFold axisFault
PPL
Lebowa
Modikwa
Two Rivers
Everest South
MarulaMessina
f
BELA-BELA
PRETORIA
0 20 40 60 80 100 km
- 25° 25° -
24° -
MOKOPANE
MIDDELBURG
Steelpoort fault
EASTERN BUSHVELD COMPLEX
Wonderkop fault
Kalkloof anticline
Schwerin foldDerdegelid pericline
Steelpoort pericline
BURGERSFORT
30°I
29°I
f
f
f
f
f
I
29°
- 24°
I
30°Lower, Main and Upper Zone
Critical Zone
fFold axisFault
PPL
M’Phatlele
Phosiri
Ga-Phasha
Mareesburg
Kennedy’s ValeGrootboom
Sheba’s RidgeBlue RidgeRietfontein
Tjate
Everest NorthMapoch The BergKlipriver/Tinderbox
Garatouw/Genorah
Buffelsvlei
Lower, Main and Upper Zone
Critical Zone
fFold axisFault
NORTHERN LIMB
0 20 40 60 80 100 km
MOKOPANE
29°I
28°I
I
29°I
28°
- 24° 24° -Boikgansho
PPL
Oorlogsfontein
Grass Valley
Aurora
Rooipoort
Tweespalk
MokopaneUitloop
24 Rivers
TurfspruitRietfontein
UG2 - Grade
0123456789
10D
e W
ildt
Ela
nd
Pan
dora
Mar
ikan
a
Wes
izw
e
WBJV
Rui
ghoe
k
Witk
leifo
ntei
n
Tusc
henk
omst
Roo
dera
nd
M'P
hatle
le
Ga-
Pha
sha
Sm
okey
Hills
Mar
eesb
erg
Gro
otbo
om
Spi
tsko
p
Ken
nedy
's
Eve
rest
Nor
th
Blu
e R
idge
Gra
de (g
/t)
Western Bushveld Eastern Bushveld
UG2 - Prill Split
020406080
100D
e W
ildt
Ela
ndP
ando
raM
arik
ana
Wes
izw
eW
BJV
Rui
ghoe
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itkle
ifont
ein
Tusc
henk
omst
Roo
dera
nd
M'P
hatle
leG
a-P
hash
aS
mok
ey H
illsM
aree
sber
gG
root
boom
Spi
tsko
pK
enne
dy's
Eve
rest
Nor
thB
lue
Rid
ge
Prill
Spl
it (%
)
AuRhPdPt
Western Bushveld Eastern Bushveld
Merensky - Grade
0
1
2
3
4
5
6
7
8M
arik
ana
WBJV
Wes
izw
e
Rui
ghoe
k
Roo
dera
nd
(Nkw
e)
Roo
dera
nd
Witk
leifo
ntei
n
Tusc
henk
omst
M'P
hatle
le
Ga-
Pha
sha
Spits
kop
Ken
nedy
's
Vale
Gro
otbo
om
Gra
de (g
/t)
Eastern BushveldWestern Bushveld
Merensky - Prill Split
0
50
100M
arik
ana
WBJ
V
Wes
izw
e
Rui
ghoe
kR
oode
rand
(Nkw
e)R
oode
rand
Witk
leifo
ntei
n
Tusc
henk
omst
M'P
hatle
le
Ga-
Phas
ha
Spits
kop
Kenn
edy'
sVa
leG
root
boom
Prill
Spl
it (%
) AuRhPdPt
Western Bushveld Eastern Bushveld
Platreef - Grade
012345
Gra
ss V
alle
y
Roo
ipoo
rt
Oor
logs
font
ein
Mok
opan
e
Auro
ra
Rie
tfont
ein
Boik
gant
sho
Moo
ipla
ts
Sheb
a's
Rid
ge
Losk
op
Gra
de (g
/t)
Eastern BushveldNorthern Bushveld
Platreef - Prill Split
020406080
100
Gra
ss V
alle
y
Roo
ipoo
rt
Oor
logs
font
ein
Mok
opan
e
Auro
ra
Rie
tfont
ein
Boik
gant
sho
Moo
ipla
ts
Sheb
a's
Rid
ge
Losk
op
Prill
Spl
it (%
)
AuRhPdPt
Northern Bushveld Eastern Bushveld
Barriers to Juniors
• Access to mineral tenements• Technical knowledge• Process capability and capacity• Funding
Contribution of Juniors to Exploration• Challenge paradigms• Potential of smaller deposits• Audit Trail• Good Practice• Detail audits and reviews• Open to other approaches
Res
ourc
e E
stim
atio
n
Merensky Reef Histograms
FW2
FW1a
FW1b
CrPegmatoidal Feldspathic Pyroxenite
Feldspathic Pyroxenite
Leuconorite
Mottled Anorthosite
Mer
ensk
y re
ef
PGE Concentration
1m
1m
PGE Concentration
Mer
ensk
y re
ef
FW2
FW1a
FW1b
Chromitite
Feldspathic Pyroxenite
Mottled Anorthosite
Leuconorite
1m
1m
0
Mer
ensk
y re
ef
FW2
Feldspathic Pyroxenite
Leuconorite
Pegmatoidal Feldspathic Pyroxenite
PGE Concentration
Cr
1m
1m
UG2 Chromitite Layer
0 cm
100 cm
Pyroxenite
Chromitite
Chromitite
Pegmatoidal Feldspathic Pyroxenite
Olivine bearing Pyroxenite/ Feldspathic Harzburgite
Leader Seams
Main Seam
Grade
Drilling technologies
• Diamond Drilling• HQ• NQ• BQ• TNW
Sampling
Analytical techniques
• 3PGE+Au • 6 PGE+Au • Pt, Pd, Rh, Ru, Os, Or, Au• Cu, Ni, Co• Concentrations ppm or g/t• Concentrations ppb• Detection limits• Turnaround time
• Fire Assay • Fire Assay – ICP• Fire Assay - Aquia Reqia• XRF – fusion and pellet• AA
A lot more attention to the analytical side of things
Quality Control/Quality Assurance
• Quality ControlCheck on
• Quality AssuranceDesign of Programmes
• Blanks• Duplicates• Standards
MintekAMIS
• Referee
Historic Data
• Sampling Methods• QA/QC relied on Laboratory• Use of in house laboratory• Twin/Verification drilling • Density
Audits and Reviews
• 10% of data• Swapped boreholes• Incorrect thickness
Density
• Bulk Density• Specific Gravity• Methodology
Mining Cut – UG2 Chromitite
• Grade concentrated in chromitite• Interstitial pyroxenites - low grade• Footwall mineralised• Grade histogram• Ability to undermine the leaders• Nature of upper and lower contacts
Mining Cut – Merensky Reef
• Grade is not restricted to one lithology• Hangingwall and footwall mineralised• Grade histogram• Nature of upper and lower contacts• Associated mineralisation e.g. Pseudo Reef
1m
1m
0.00 1.00 2.00 3.00 4.00 5.00 6.00
0.10
0.60
1.10
1.60
2.10
Min
ig C
ut4E Grade (g/t)
2.00
m
0.90
m
FACIES COMPARISON OVER 100cm CUTS
0.00
1.00
2.00
3.004.00
5.00
6.00
7.00
8.00
MINING CUT (cm)
PPE
(g/t)
PEGCRFW1FW3FW6FW7
PEG 3.77 4.63 5.25 5.58 5.87 6.09 6.16 6.00 5.08CR 3.22 3.80 4.31 4.68 4.95 5.15 5.25 5.21 4.81FW1 5.43 5.99 6.39 6.64 6.77 6.75 6.61 6.02 4.78FW3 6.73 6.66 6.38 5.99 5.51 4.98 4.29 3.60 2.69FW6 7.23 7.28 7.19 7.01 6.70 6.34 5.83 5.00 3.83FW7 6.29 6.20 5.88 5.39 4.82 4.20 3.51 2.84 2.04
10100 20100 30100 40100 50100 60100 70100 80100 90100
Grade vs Thickness• Concentration g/t• Content cmg/t
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
0.00 0.50 1.00 1.50 2.00 2.50
Composite Thickness (m)
Gra
de (g
/t)
0
500
1000
1500
2000
2500
3000
3500
Pd Rh Au 4E Pt Cu Ni
Data queries• Data Clustering• Outlier Analysis• Estimation of
different lithologies
• Facies
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
910111213141516171819202122
Con
tribu
tion
to m
eta
l (%)
P GE 2090 remo ved (g /t)
4.0
4.1
4.2
4.3
4.4
4.5
4.6
4.7
Mea
n P
GE2
09
0 (
g/t
)
Outliers: Mean v % Cont. Plot(A ll Data)
C ontr ibut io n to m etal ( %) Mean PG E2 090 ( g/ t)
WHY DO GEOLOGISTS TALK ABOUT FACIES?WHY DO GEOLOGISTS TALK ABOUT FACIES?•• Tool to describe variations that we observe in our reefTool to describe variations that we observe in our reef•• Essentially defines a set of attributes that makes particular reEssentially defines a set of attributes that makes particular reef ef
types unique w.r.t. grade, appearances,types unique w.r.t. grade, appearances,……•• Assists us to understand the nature of the ore bodyAssists us to understand the nature of the ore body•• Better evaluation and hence more accurate planningBetter evaluation and hence more accurate planning•• Optimise extraction of the ore bodyOptimise extraction of the ore body
Benefits of facies determination and delineation
• Identify potential grade distributions within the facies• Investigate the variability of the Merensky Reef• Improve the geostatistics• Improve the evaluation• Improve the in-situ grades inputted into the mine plans• Improve the shafts Head Grade
MERENSKY FACIES CLASSIFICATIONS
PGE Concentration
1m
1mFW2 FW2
FW1a
FW1a
FW1b FW1b
CRCR CR
Pegmatoidal Facies Contact Facies
PGE Concentration
1m
1m
Normal Split Reef WideU
G2
Cyc
le
UG
2 C
ycle
Upper Chromitite Upper Chromitite
Lower Chromitite
Middling
Footwall
Variation across project/mine - Eland Platinum Mine
Normal facies
Split Reef facies
Zilkaatsnek facies
N
Variation across project/mine - Eland Platinum Mine
Geological Losses vs Mining losses• No Reef present • Reef Undeveloped• Not a realistic chance of extraction e.g. base of a
pothole– Potholes– Dykes– Faults– Mafic Pegmatites– IRUPS
Estimation Techniques
• Seam Method• Correlation of sampling • Samples• Ordinary Kriging • Lognormal Kriging• Inverse Distance Squared
Classification
• Known Geology• Good Structure• Facies • Individual Metals
The application of good geological practice is required to obtain the best possible – most accurate – closest to the real value, estimate.
Res
ourc
e E
stim
atio
n
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Mineral Resource and Reserve aspects of the Junior Miners on the Bushveld ComplexKen Lomberg