Operational Update

RNS Number : 8060U
Bushveld Minerals Limited
27 October 2017
 

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

 

27 October 2017

 

Bushveld Minerals Ltd

("Bushveld" or the "Company")

 

Operational Update - Updated CPR and Mineral Resources at the Mokopane Tin Project

 

Bushveld Minerals Limited (AIM: BMN), a mineral development company with a portfolio of vanadium and titanium-bearing iron ore, tin and coal assets in Southern Africa, is pleased to announce the release of an updated Competent Persons Report ("CPR") for the Mokopane Tin Project. The CPR is an update of previously issued reports and includes a revised cut-off grade for the Zaaiplaats Deposit.

 

Highlights:

In anticipation of the demerger of Bushveld's tin assets to form AfriTin Mining Limited, a newly formed company established for the purpose of listing on AIM shortly, the Company is required to update the CPR for the Mokopane Tin Project. The updated CPR was prepared by The MSA Group and includes a Mineral Resource Estimate ("MRE") for the Groenfontein Deposit (prepared by Mr Dexter Ferreira of Independent Resource Estimations) and an MRE for the Zaaiplaats Deposit (prepared by Mr Alan Page and Dr Hennie Theart of SRK Consulting and reviewed by Mr Jeremy Witley of the MSA Group).

 

The following points are noted:

 

·      The MRE for the Groenfontein Deposit remains unchanged from previous estimates, as reported in the original technical report (26 September 2011, re-reported 4 June 2013).

 

·      The cut-off grade for the MRE at the Zaaiplaats deposit has been revised from 0.07% Sn (as reported in the SRK MRE of 26 September 2013) to 0.1% Sn, in order to bring this cut-off grade into alignment with the 0.1% cut-off for the Groenfontein deposit.

 

·      The MRE for the Zaaiplaats Deposit (re-stated at a 0.1% Sn cut-off) is 6.216 million tonnes at a grade of 0.124% in the Inferred category and 0.017 million tonnes at 0.136% in the Indicated category. This gives total Mineral Resources of 6.233 million tonnes at 0.124% Sn, with a total tin content of 7,753 tonnes.

 

·      While the reported total tonnage of contained tin at the Zaaiplaats Deposit has been revised from 12,452 tonnes to 7,753 tonnes as a result of the higher cut-off grade, none of the other parameters of the MRE have been changed, and the reported Mineral Resources for the Zaaiplaats Deposits reflect the original MRE prepared by SRK Consulting.

 

The unchanged MRE for the Groenfontein Deposit (stated at a 0.1% cut-off) is shown below. Note that the Mineral Resources for the Groenfontein Deposit have been re-reported in accordance with JORC (2012), and details of Sampling Techniques and Data, Reporting of Exploration Results and Estimation and Reporting of Mineral Resources are reported as Appendix 1 in the form of JORC (2012) Table 1.

 

Mineral Resources for the Groenfontein Deposit as at July 2011 at a 0.1% Sn Cut Off

Category

Tonnes (millions)

Sn Grade (%)

Sn Tonnes

Measured

1.177

0.179

2,107

Indicated

1.918

0.140

2,685

Inferred

0.898

0.134

1,203

Total

3.993

0.150

5,995

 

The amended MRE for the Zaaiplaats Deposit (stated at a revised 0.1% cut-off) is shown below:

 

Zaaiplaats Mineral Resource as at 31 August 2013 (re-stated at 0.10 % Sn Cut Off).

Category

Tonnes (millions)

Sn Grade (%)

Sn Tonnes

Indicated

0.017

0.136

23

Inferred

6.216

0.124

7,730

Total

6.233

0.124

7,753

 

The Company is in the process of preparing an updated CPR on its Uis Tin Project in Namibia. It is intended that AfriTin Mining Limited will acquire the Uis Tin Project as a result of the demerger from Bushveld.  An announcement will be released upon completion of the updated CPR.

 

Fortune Mojapelo, CEO of Bushveld Minerals, said:

"The re-reporting the Mineral Resource Estimates for the Groenfontein and Zaaiplaats Deposits as part of an updated Competent Persons Report for the Mokopane Tin Project is an important step in the demerger of Bushveld Minerals to form AfriTin Limited, which we feel will unlock shareholder value for the tin assets currently within Bushveld."

 

Details of Sampling Techniques and Data, Reporting of Exploration Results and Estimation and Reporting of Mineral Resources for both the Groenfontein and Zaaiplaats Deposits are outlined in Appendix 1 and Appendix 2 below.

 

Competent Persons Statement

References in this announcement to exploration results, Mineral Resources, interpretations and prospects have been approved for release by Mr Michael Cronwright, Mr Jeremy Witley and Mr Dexter Ferreira.

 

The information in this announcement that relates to Mineral Resources is based on information compiled by Mr Jeremy Witley of The MSA Group, Johannesburg South Africa and Mr Dexter S. Ferreira. Mr Witley is registered as Professional Scientist with the South African Council for Professional Natural Scientific Professions (SACNASP) which is a Recognised Professional Organisation (RPO). Mr Witley is employed by MSA and has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Mineral Resources. Mr Witley consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

 

Mr Ferreira is registered as Professional Scientist with the South African Council for Professional Natural Scientific Professions (SACNASP) which is a Recognised Professional Organisation (RPO). Mr Ferreira is employed by Independent Resource Estimations (IRES) and has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Mineral Resources. Mr Ferreira consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

 

The information in this announcement that relates to Exploration Results, is based on information compiled by Mr Michael Cronwright of The MSA Group, Johannesburg, South Africa. Mr Cronwright has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Cronwright consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

 

 

APPENDIX 1: JORC (2012) TABLE 1 - GROENFONTEIN

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

 

 

Criteria

JORC Code explanation

Commentary

Sampling techniques

·     Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.

·     Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

·     Aspects of the determination of mineralisation that are Material to the Public Report.

·     In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

·     At Groenfontein the samples were taken from 53 HQ diameter (63.5mm) diamond core boreholes drilled.

·     The recovery logs of the core and a quick-geological log was done on site.

·     The metre marking, detailed geological logging and sample mark-up and reference/cut line was done at the core yard.

·     The objective of core sampling was to provide suitable samples for laboratory analyses of the selected mineralised zones identified during logging.

·     Core was split in half by a diamond saw at the core yard facility. Half was submitted for assay and half retained for reference purposes.

·     Sample lengths were standardised to 1 m intervals. However, sample lengths in well-mineralised zones or zones with variable mineralisation were matched accordingly and these normally varied between 0.15 m to 1.0 m. Sample intervals were chosen at the supervising geologist's discretion.

·     Certified reference materials (produced by AMIS), blanks and field duplicates were inserted by the lab into each batch at a frequency of

·     The CRMs used were AMIS0020 and AMIS0021

Drilling techniques

·     Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).

·     A total of 53 cored boreholes were drilled vertically, HQ in size (63.5 mm internal diameter) with a PQ size (85 mm internal diameter) within the weathered zone; core were not orientated.

Drill sample recovery

·     Method of recording and assessing core and chip sample recoveries and results assessed.

·     Measures taken to maximise sample recovery and ensure representative nature of the samples.

·     Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

·     Recovery logs were prepared for each drill run at the drill rig in order to monitor the core recovery.

·     Core recovery was expected to be >90% and this was achieved in all cases.

Logging

·     Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

·     Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.

·     The total length and percentage of the relevant intersections logged.

·     A preliminary quick geological log was prepared at the drill rig

·     Detailed geological logging including lithological logging, geotechnical

·     Geological logging only commenced once the core was washed, cleaned, photographed, geotechnically logged and split. 

·     The following procedures were applied during geological logging:

·     Core was sprayed with water in order to assist with the identification and description of lithology, mineralisation, alteration, colour and texture.

·     Different colours were used in the log sheets to indicate different information on the core:

·      Yellow - Comments on the lithology, colour, alteration, veins, mineralogy etc.

·      Red - Utilised to mark ore minerals such as sulphides.  Cassiterite is mostly disseminated throughout the core.

·      Blue - Indicated cutting marks, specifically for sampling.

·     The core logging process was facilitated by the use of a geological log sheet designed according to standard look-up tables and formats, to guide the geologist through a standard set of logging requirements.

·     See CPR sections 9.2.3 and 9.2.5

·     The work is undertaken according the logging standards developed by Greenhills, which are in line with international best practice.

·     The CP considers that the level of detail and quality of the work is appropriate to support the current mineral resource estimation.

Sub-sampling techniques and sample preparation

·     If core, whether cut or sawn and whether quarter, half or all core taken.

·     If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.

·     For all sample types, the nature, quality and appropriateness of the sample preparation technique.

·     Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

·     Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

·     Whether sample sizes are appropriate to the grain size of the material being sampled.

·     The objective of core sampling was to provide suitable samples for laboratory analyses of the selected mineralised zones identified during logging.

·     Sample lengths were standardised to 1 m intervals. However, sample lengths in well-mineralised zones or zones with variable mineralisation were matched accordingly and these normally varied between 0.15 m to 1.0 m. Sample intervals were chosen at the supervising geologist's discretion.

·     The half core samples were crushed and milled at Set Point Laboratories in Mokopane - See CPR Section 9.2.8.1

·     Pulp duplicates, blanks and standard material (produced by AMIS) were inserted in identical packets to the samples, one per 20 normal samples for each of the blanks, standards and lab duplicates. This was done under the supervision of a qualified geologist or experienced geotechnician from VMIC.

Quality of assay data and laboratory tests

·     The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

·     For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

·     Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

All samples were analysed by using XRF - pressed pellets and with fusions done for samples with values of >0.5% Sn.

·     Specific Gravity determinations were also performed on the pulps by Set Point using gas pycnometry.

·      No independent QA/QC procedures were implemented by Greenhills for the Groenfontein exploration programme.

·      SPL's QA/QC procedures and a summary of an audit of the results is provided in CPR Section 9.4.1.2

·      The following internal QA/QC procedure was followed:

o  QA/QC samples inserted (every twenty samples submitted contain one blank and one standard, inserted at random positions) 

o  the blank material used is commercially sourced (AMIS 0108), which contains no detectable Sn;

o  the Certified Reference Material ("CRM") used was commercially sourced AMIS 0021 which has 0.270% ±0.026% Sn with a SG of 2.74 ±0.22 g/cc and AMIS 0020 with 0.69% ±0.04% Sn;

o  field duplicates- one out of the 20 samples, are sent in with the next sample batch;

o  in addition one in twenty original samples and duplicate pulp samples were also submitted to an umpire laboratory; and

o  the samples are submitted to SPL in Isando Johannesburg for analysis for Sn, Cu and W by XRF.

Verification of sampling and assaying

·     The verification of significant intersections by either independent or alternative company personnel.

·     The use of twinned holes.

·     Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

·     Discuss any adjustment to assay data.

·     All logging and sampling was managed by a Senior Geologist from Greenhills and independent checks by a geologist from The MSA Group.

·     All hardcopies have been retained and stored at the coreshed in Mokopane

·     Electronic copies reside in XLS/Access format and backups kept at the Greenhills head office in Illovo, Johannesburg….

·     The exploration programme entailed the drilling and sampling of 53 drill holes (22 twinned with historic drill holes) during 2011.

·     Analytical data obtained from the 22 twinned drill holes were compared to the historical drill hole assay data in order to justify the incorporation of the historical data into the Mineral Resource estimation exercise. Twinning of drill holes followed by the application of comparative and correlative statistics by Independent Resource Estimations (IRES) determined that the old data is "useable". Statistical analysis between the previous drilling results and the 22 twin drill holes from the current programme indicate a very good correlation.

Location of data points

·     Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

·     Specification of the grid system used.

·     Quality and adequacy of topographic control.

·     All drill holes were drilled vertically and no orientation of the core was carried out.

·     Downhole surveys were not routinely done as initial downhole surveys indicated little or no material deviation of the drill holes

·     Drill holes drilled during this project, as well as visible historical drill holes, visible old mine workings and shafts were surveyed by Exact Survey Services using a real time differential GPS.

·     All existing historic drill hole data was transformed from the Cape System LO29/Clarke to LO29/WGS and visible historic drill holes were also re-surveyed.

·     All the drill holes were surveyed on the edge of the casing and the elevation determined on the top of the concrete cover.

·     The survey was conducted using a single control beacon (located on the farm Solomon's Tempel) approximately 1.5 km from the drilling site.

Data spacing and distribution

·     Data spacing for reporting of Exploration Results.

·     Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

·     Whether sample compositing has been applied.

·     The deposit is well drilled in the near surface mineralised areas on a grid spacing of approximately 30 m. In the less well drilled areas holes are spaced approximately 100 m apart.

·     Drilling to 30 m is sufficient to establish grade continuity consistent with that expected in a Measured Mineral Resource. The less well drilled areas are sufficiently drilled to establish continuity consistent with that expected in an Indicated or Inferred Mineral Resource.

Orientation of data in relation to geological structure

·     Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

·     If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

·     At Groenfontein the mineralisation occurs as lenticular ore bodies occur in the Lease Granite immediately below the pegmatite zone and appear to be the product of "bubbles" of tin bearing fluids which were trapped beneath the impermeable pegmatite. The mineralisation is broadly stratabound in Lease Granites which dips to the west and southwest on the property (see section 6)

·     The drill hole grid (current and historically) were drilled along a NW-SE trend parallel to the strike of the granites and geochemical anomaly identified in the 1970's (see section 8.3.1) and is considered appropriate.

Sample security

·     The measures taken to ensure sample security.

·     See section 9.2.7

Audits or reviews

·     The results of any audits or reviews of sampling techniques and data.

·     The CP, Mr Michael Cronwright (Exploration Results) of The MSA Group, has reviewed the sampling, logging practices. Mineral Resource estimation method was reviewed by Mr Jeremy Witley of the MSA Group.

·     At the time of the exploration in 2011 the work was reviewed by the CP, Dr L. Liebenberg

 

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

 

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

·     Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

·     The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

·     The Prospecting Right, LP2206 PR was granted to Greenhills on 14 July 2017 for a period of 5 years ending on 13 July 20156, and ceded to Renetype (Pty) Ltd in terms of Section 11(1) of the MPRDA on 1 December 2011.

·     Acknowledgement of renewal of the Prospecting Right by the DMR was received on 17 July 2015 and approval thereof for an additional 3 years is still pending

·     See CPR Section 4

Exploration done by other parties

·     Acknowledgment and appraisal of exploration by other parties.

·     Historical exploration has been carried out as detailed in the CPR Section 8

Geology

·     Deposit type, geological setting and style of mineralisation.

·     Included in theCPR in Sections 6 and 7

Drill hole Information

·     A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o  easting and northing of the drill hole collar

o  elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

o  dip and azimuth of the hole

o  down hole length and interception depth

o  hole length.

·     If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

·     Included in the CPR in Appendix 3 and 4

Data aggregation methods

·     In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

·     Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

·     The assumptions used for any reporting of metal equivalent values should be clearly stated.

·     Drill hole intersections were reported using downhole length weighted averaging methods.

·     A cut-off grade of 0.1 % Sn was applied and an upper limit of 0.7 % Sn (see CPR Table 11‑5, Sections 9.2 and 11.1.10)

Relationship between mineralisation widths and intercept lengths

·     These relationships are particularly important in the reporting of Exploration Results.

·     If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

·     If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known').

·     Downhole lengths are reported and the true length.

Diagrams

·     Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

·     Maps and cross sections are attached in the body of the report

Balanced reporting

·     Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

·     The Company states that all results have been reported and comply with balanced reporting.

Other substantive exploration data

·     Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

·     Not material to this report.

Further work

·     The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).

·     Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

·     See CPR Section 15.3


 

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

 

Criteria

JORC Code explanation

Commentary

Database integrity

·     Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.

·     Data validation procedures used.

The following data verification was carried out:

·    checking whether any gaps or overlaps occurred with the sample positions in the database;

·    the assay data were interrogated for zero grades and other obviously erroneous data such as negative grades;

·    drill hole collar names were checked in order to ensure no duplication of hole ID;

·    The location of each surface drill hole was checked and verified by site staff as well as the lithological and assay tagging within those drill holes;

·    Survey points denoting the locations of the holes were received and plotted in three dimensions using Datamine alongside images obtained from the mine site in order to assess whether or not the drill hole collars were in the correct place.

 

Site visits

·     Comment on any site visits undertaken by the Competent Person and the outcome of those visits.

·     If no site visits have been undertaken indicate why this is the case.

·     A site visit was made on 11 April 2011 to the Mokopane Tin Project by Dr Leon Liebenberg DSc MSc Pr.Sci.Nat, a 'Competent Person' as that term is defined in the JORC Code, and Mr Mike Lynn MSc of MSA, accompanied by Professors Morris and Richard Viljoen, representatives of Greenhills, and also 'Competent Persons'. A visit was made to the historical marked drill locations and current verification drilling activities on the property, and to the core store situated in the nearby town of Mokopane.

·     A site visit was carried out by Michael Cronwright of MSA on 13 June 2017.

Geological interpretation

·     Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit.

·     Nature of the data used and of any assumptions made.

·     The effect, if any, of alternative interpretations on Mineral Resource estimation.

·     The use of geology in guiding and controlling Mineral Resource estimation.

·     The factors affecting continuity both of grade and geology.

·     The overall geological interpretation is simplistic and local controls on grade distribution are not well understood.

·     Drilling data was used to interpret the geology together with knowledge gained during historical mining in various reports.

·     The mineralisation occurs within a single rock type and was not constrained.

·     A number of mineralised intersections along the western flank of the project area occur near the contact of the pegmatitic granite with the Lease Granite were constrained using a digital terrain model ("DTM"). This allowed for the separation of mineralisation populations and prevented smearing of the contact mineralisation with the disseminated mineralisation.

·     A more constrained interpretation could impact on the grade and tonnage of the deposit, potentially with a lower tonnage at higher grade.

Dimensions

·     The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.

·      The mineralisation dips gently to the southwest, from flat to 10°.

·      The Mineral Resource has been modelled as several sheets of mineralisation between 2 m and 20 m thick.

·      The Mineral Resource above the reported cut-off grade occurs over a strike length of approximately 1 km and between 250 m and 380 m on dip.

·      The Mineral Resource occurs from surface to less than 60 m below surface.

Estimation and modelling techniques

·     The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.

·     The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.

·     The assumptions made regarding recovery of by-products.

·     Estimation of deleterious elements or other non-grade variables of economic significance (e.g. sulphur for acid mine drainage characterisation).

·     In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.

·     Any assumptions behind modelling of selective mining units.

·     Any assumptions about correlation between variables.

·     Description of how the geological interpretation was used to control the resource estimates.

·     Discussion of basis for using or not using grade cutting or capping.

·     The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.

·     Datamine software was used to construct the geological model and wireframe and GSLIB was used to estimate metal grades and estimate the Mineral Resource.

·     The grades were estimated using Ordinary Kriging of tin grades of 1 m composites into a three dimensional block model.

·     The block model cell size is 10 mX by 10 mY by 2 mZ.

·     Distances between drill holes are typically between approximately 20 m and 40 m.

·     Samples were selected for estimation using a search ellipse orientated in the plane of mineralisation with the major direction being 140° in the horizontal plane, the semi-major being 50 °in the horizontal plane and the shortest direction being vertical.

·     The estimate was carried out in three passes

·     A top-cut of 0.70% Sn was applied to the 1 m composite data. 38 out of 4866 samples were affected by the top-cut. A number of statistical charts were examined for outlier data in order to derive the top-cut value.

·     The Mineral Resource generally occurs within the variable spaced drilled area and the extents are limited in areas by barren drill holes. Extrapolation to less than 100 m away from drill holes occurs in some areas, depending on the number of samples available to satisfy the search criteria.

·     Selective Mining Units were not estimated.

·     No deleterious elements or bi-products were estimated

·     The model was validated by trend analysis ("Swath Plots") that compare the model with the input data along a number of corridors through the model and cross validation, which interrogates the difference between the samples in the block with the block estimate.

Moisture

·     Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.

·     Tonnages were estimated on a dry basis

Cut-off parameters

·     The basis of the adopted cut-off grade(s) or quality parameters applied.

·     A preferred cut-off grade of 0.1% tin has been applied by benchmarking the project against other projects worldwide, and by applying an average cash buyer (London Metal Exchange) tin value over the past three years (~USD 18,000).

Mining factors or assumptions

·     Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.

·     Portions of the deposit could be mined by open-pit methods. The deposit is wide and occurs close to surface.

Metallurgical factors or assumptions

·     The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.

·     Cassiterite is amenable to gravity concentration methods

Environmental factors or assumptions

·     Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.

·      It is assumed that tailings and waste-rock dumps would be constructed on site as both deposits have experienced previous mining and are disturbed

Bulk density

·     Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.

·     The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc.), moisture and differences between rock and alteration zones within the deposit.

·     Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.

·     A specific gravity value of 2.65 was applied to the model in order to convert block volumes into tonnages. This figure is an average value based on the gas pycnometry data derived from the sample pulps.

Classification

·     The basis for the classification of the Mineral Resources into varying confidence categories.

·     Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).

·     Whether the result appropriately reflects the Competent Person's view of the deposit.

·     Block estimates estimated within the first variogram range of the double structure spherical models were classified as being within the Measured Mineral Resource category. The principle range of 50 m approximately represents two thirds of the total variance. Visual inspection of these blocks will reveal that they are quite contiguous along strike throughout the deposit, and not prevalent in isolated clusters.

·     Mineral Resources estimated via the second structure of the double spherical model were classified as Indicated

·     Mineral Resources estimated at about one and half times the longest variogram ranges were classified as Inferred.

Audits or reviews

·     The results of any audits or reviews of Mineral Resource estimates.

·     No audits of the estimate have been carried out.

Discussion of relative accuracy/ confidence

·     Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.

·     The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.

·     These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

·     The estimates are of a global nature, recoverable resource estimation having not been carried out.


APPENDIX 2: JORC (2012) TABLE 1 - ZAAIPLAATS

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

 

Criteria

JORC Code explanation

Commentary

Sampling techniques

·     Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.

·     Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

·     Aspects of the determination of mineralisation that are Material to the Public Report.

·     In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

·     15 channels were sampled by Greenhills by chip sampling underground and a further 15 from open pit workings. Samples were taken over 1 m intervals.

·     43 BQ size diamond drill holes (36.5 mm core diameter) were completed by Greenhills on a grid of approximately 50 m by 50 m. The holes range in depth from 19.95 m to 141.11 m and a total of 2,067.26 m were drilled in 2012 and 2013. The drill holes were samples at 1 m intervals, although the length varies in order to account for mineralisation intensity and lithological changes. The cores were cut longitudinally in half.

·     The half core samples were prepared at Set Point Laboratory's (SPL) preparation facility in Mokopane where they were crushed to 80% < 2.8, split by riffle splitter and milled to 80% < 70 µm, prior to pressed pellet or fused disk analysis by SPL in Johannesburg.

·     The chip sample pulps were prepared at SPL in Mokopane and assayed using a handheld Niton XRF.

Drilling techniques

·     Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).

·     15 channels were sampled by Greenhills by chip sampling underground and a further 15 from open pit workings.

·     43 BQ size diamond drill holes (36.5 mm core diameter) were completed by Greenhills on a grid of approximately 50 m by 50 m. The holes range in depth from 19.95 m to 141.11 m and a total of 2,067.26 m were drilled in 2012 and 2013. Core were not oriented.

Drill sample recovery

·     Method of recording and assessing core and chip sample recoveries and results assessed.

·     Measures taken to maximise sample recovery and ensure representative nature of the samples.

·     Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

·     No vugs or enriched veins were sampled by the channel samples in order to ensure that the samples were representative of the disseminated mineralisation. Sample sections were re-sampled if the faces were not accurate enough and some were extended to cover the full extent of the mineralisation. SRK examined a number of channel sample sections.

·     The core recoveries for the drilling were in excess of 98%. Some holes had excellent recoveries of close to 100%. The core observed by SRK was competent, and relatively un-fractured, supporting the good core recoveries reported.

Logging

·     Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

·     Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.

·     The total length and percentage of the relevant intersections logged.

·     All cores were geologically logged. The geologist noted lithology, colour, grain size, veins, alteration, the percentages and sizes of mafic minerals, and ore minerals such as cassiterite and sulphides, according to standard look-up tables and formats.

·     Fracture angles, core lengths, core recoveries, percentages of solid core, and Rock Quality Designation ("RQD") were recorded according to a fixed procedure and by making use of a pro-forma geotechnical log sheet.

·     Cores were photographed once marked up and cleaned.

Sub-sampling techniques and sample preparation

·     If core, whether cut or sawn and whether quarter, half or all core taken.

·     If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.

·     For all sample types, the nature, quality and appropriateness of the sample preparation technique.

·     Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

·     Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

·     Whether sample sizes are appropriate to the grain size of the material being sampled.

·     The BQ size cores were cut longitudinally in half and one half taken as the sample. Nominal 1 m sample length intervals were taken continuously through the mineralised zones for both core and chip channel samples. Lengths were shortened where a change in geology or mineralisation intensity was observed.

·     The half core samples and chip samples were prepared at Set Point Laboratory's (SPL) preparation facility in Mokopane where they were crushed to 80% < 2.8, split by riffle splitter and milled to 80% < 70 µm.

·     The sampling techniques and sizes used are considered appropriate for the fine grained cassiterite mineralisation.

·     No field duplicates (half core / adjacent twin channels) were done.

Quality of assay data and laboratory tests

·     The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

·     For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

·     Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

·     All samples were first crushed and milled at Set Point's sample prep lab in Mokopane and then the pulps were assayed using a Nition XL3d handheld XRF, and samples with values >0.01% Sn (100 ppm) were sent to Set Point (Johannesburg) for assay.

·    At the time of assaying Set Point was ISO17025 accredited for the sample preparation done, the analytical method used and the elements analysed for, apart from Sn and W.

·     All samples were analysed by using XRF - pressed pellets for samples with <0.68% Sn and fused disk for samples with >0.68% Sn.

·      For XRF using pressed pellets, an aliquot (1.3 g) and wax binder (11.7 g) are milled together. The resulting mixture is put into an aluminium cup and pressed for 15 seconds at 20 metric tons pressure for 15 seconds in a pellet press. The pressed pellet is read on an XRF spectrometer.

·      For XRF using fused disks an ignited sample mass of 1.1g is fused with 9.9g flux (lithium-tetra-borate) and fused in a clean platinum dish. The fusion melt is poured into a clean platinum mould and allowed to solidify. The solidified disc is analysed by calibrated XRF spectrometer using the "silicate" program provided by the manufacturer of the equipment.

·     The laboratory's QA/QC programme consisted of

·        For pressed pellet XRF, insertion of a CRM sample every 30 to 40th field sample and one in-house standard per 100 samples. One blank sample per 100 field samples. Three pulp duplicates per 100 field samples.

·        For fused disk XRF, a 75G Canadian CRM is used for sample preparation quality control. A fused disc of this material is inserted for every 30 to 40 samples analysed. At least one duplicate is selected for every batch or job analysed. Instrument control discs are read together with all jobs to confirm the calibration of the instrument at similar concentration levels as that of the samples. Additional repeats on the samples are also done by SPL.

·        For determination of SG using gas pycnometry two samples with certified SGs of 4.15 and 2.66 are tested daily and random duplicate samples are taken from each batch.

·        After assessing the results of SPLs QA/QC samples, it was concluded that the assays carried out by SPL are accurate and precise and free from significant contamination.

·     The company geologists routinely carried out its own QA/QC checks external to the laboratory, consisting of the insertion of CRM, blank and duplicate samples.

·     After assessing the results of the external QA/QC samples, it was concluded that the assays carried out by SPL are accurate and precise and free from significant contamination.

·     The handheld Niton XRF assays that were completed on the chip samples were verified by laboratory XRF assaying of 25 samples by SPL. The handheld XRF consistently under-reported the tin grade relative to the laboratory assay and an overall bias of 19% was noted. No corrections were applied to the data to account for the bias as the absolute bias was inconsistent.

Verification of sampling and assaying

·     The verification of significant intersections by either independent or alternative company personnel.

·     The use of twinned holes.

·     Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

·     Discuss any adjustment to assay data.

·     No independent verification sampling was completed.

·     No twin-hole drilling was performed.

·     The logging was carried out by handwritten recording of observations on a standard template and later captured digitally in Microsoft Excel spreadsheets. The data were transferred from site to the company server on a weekly basis. The company server has a back-up system.

·     No adjustments to assay data were made.

Location of data points

·     Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

·     Specification of the grid system used.

·     Quality and adequacy of topographic control.

·     A contract surveyor (Exact Survey Services) located the final collar coordinates using a real time differential Trimble GPS.

·     The drill holes were not surveyed down-the-hole. The holes are short (40-100 m in length) and little deviation is expected in the competent granite.

·     The grid system used is WGS84 LO29.

·     Bushveld Minerals commissioned Badger Mining and Consulting (Pty) Ltd to conduct a detailed survey of the old working of the Zaaiplaats Mine. This survey included two open pits (a smaller western pit and a larger eastern pit), and underground workings which connect these two pits.

·     The topographic surface was derived from SRTM data that was modified using the surveyed collar locations for an accurate fit with the collars.

·     Topographic control, is adequate for the purpose of Mineral Resource estimation but a higher resolution survey will be required as the project progresses.

Data spacing and distribution

·     Data spacing for reporting of Exploration Results.

·     Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

·     Whether sample compositing has been applied.

·     The drill holes are drilled at an approximate spacing of 50 m over the deposit with more closely spaced channel sampling in the mine exposures.

·     The data spacing and distribution are sufficient to establish grade continuity consistent with that expected in an Inferred Mineral Resource and an Indicated Mineral Resource in places.

·     For the Exploration results reported in this document the samples were composited over the mineralised lengths for the chipped channel samples. Exploration results not reported for drilling, these being superseded by the Mineral Resource estimate for which 3 m composites were used.

Orientation of data in relation to geological structure

·     Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

·     If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

·     Drill holes were drilled vertically through mineralisation that is interpreted to be gently dipping (5° to 20°). Channel samples were chipped in vertical sections.

·     No bias was considered to have been introduced by the sampling orientation.

Sample security

·     The measures taken to ensure sample security.

·     There is a documented chain of custody from the drilling rigs to the core-yard and to SPL.

·     Sample crushing and milling is carried out at an independent commercial laboratory.

Audits or reviews

·     The results of any audits or reviews of sampling techniques and data.

·     SRK examined the sampling that was carried out and considered it acceptable.

 

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

 

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

·     Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

·     The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

·     Prospecting Right (PR) LP 2205 PR with protocol reference 47/2010, issued by the Department of Minerals and Energy (DME) (now the Department on Mineral Resources (DMR) on 14 July 2010 in the name of VM Investment Company (Pty) Ltd (VMIC).  Valid for five years, from 14 July 2010 to 13 July 2015, grants exclusive prospecting rights to the holder. The PR gives VMIC the right to explore for tin, rare earth metals, fluorspar, molybdenum, gold, arsenic, uranium, zirconium, iron ore and zinc.

·     On 1 December 2011 consent in terms Section 11(1) of the MPRDA for the cession of the Prospecting Right to Renetype (Pty) Ltd was granted.

·     Acknowledgement of the renewal application was received from the DMR on 17 July 2015 and is still pending approval. Renewal will be for another 3 years.

·     The acknowledgement states that the licence remains in place until such time as a final decision is made to either grant or reject the renewal application. The renewal was still pending as at the effective date of this report.

Exploration done by other parties

·     Acknowledgment and appraisal of exploration by other parties.

·     Cassiterite was discovered in 1905 by prospectors on the farms Roodepoort 222KR, Groenfontein 227 KR and Zaaiplaats 223KR.

·     The Zaaiplaats Tin Mining Company produced cassiterite concentrate and tin metal continuously from its inception to its closure in 1989. 17,300 Tonnes of tin metal were produced from the farm Zaaiplaats. 223KR

Geology

·     Deposit type, geological setting and style of mineralisation.

·     Tin mineralisation at the project is found in the Lebowa Granite Suite, a voluminous suite of granitic rocks found above the layered mafic rocks of the Bushveld Complex.

·     Tin mineralisation is restricted to the Lease and Bobbejaankop Granites where it occurs in pipe-like bodies, sub-horizontal lenticular bodies and as a sub-horizontal disseminated low grade bodies within both granites. All tin mineralisation is in the form of cassiterite (SnO2) and is of endogenic and syngenetic origin within the granites.

·     The mineralisation for within the Mineral Resource is disseminated and occurs in five sheets within the Bobbejaankop Granite. The higher grade pipe and vein style mineralisation have been out with the more voluminous disseminated style of mineralisation remaining.

Drill hole Information

·     A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o  easting and northing of the drill hole collar

o  elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

o  dip and azimuth of the hole

o  down hole length and interception depth

o  hole length.

·     If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

·     Detailed drill hole information is not material to this report, the exploration results having been superseded by the Mineral Resource estimate.

Data aggregation methods

·     In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

·     Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

·     The assumptions used for any reporting of metal equivalent values should be clearly stated.

·     Detailed drill hole information is not material to this report, the exploration results having been superseded by the Mineral Resource estimate.

Relationship between mineralisation widths and intercept lengths

·     These relationships are particularly important in the reporting of Exploration Results.

·     If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

·     If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known').

·     Detailed drill hole information is not material to this report, the exploration results having been superseded by the Mineral Resource estimate.

Diagrams

·     Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

·     Detailed drill hole information is not material to this report, the exploration results having been superseded by the Mineral Resource estimate.

Balanced reporting

·     Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

·     Not applicable

Other substantive exploration data

·     Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

·     Not material to this report.

Further work

·     The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).

·     Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

·     No further exploration work is planned at this stage.

 

 

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

 

Criteria

JORC Code explanation

Commentary

Database integrity

·     Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.

·     Data validation procedures used.

·       SRK audited the database and was satisfied that the data are reliable.

·       The drill hole data were validated for gaps and missing intervals, unusual collar coordinates and consistency of drill hole names.

·       Below detection limit samples were assigned a value of half the detection limit.

Site visits

·     Comment on any site visits undertaken by the Competent Person and the outcome of those visits.

·     If no site visits have been undertaken indicate why this is the case.

·       A site visit was undertaken by Mr A.S. Page of SRK on the 6th of March 2013 to the Zaaiplaats exploration site, exploration core storage facility in Mokopane and the Set Point sample preparation facility in Mokopane. The Set Point Laboratories in Isando, Johannesburg, were also visited by Mr A.S Page and Dr H. F. J. Theart on the 10th of May 2013.

·       A site visit was carried out by Michael Cronwright of MSA on 13 June 2017.

Geological interpretation

·     Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit.

·     Nature of the data used and of any assumptions made.

·     The effect, if any, of alternative interpretations on Mineral Resource estimation.

·     The use of geology in guiding and controlling Mineral Resource estimation.

·     The factors affecting continuity both of grade and geology.

·       Confidence in the models is good.

·       The geological model was constructed based on surface drilling and a small amount of underground and open pit chip sampling. Reverse Circulation (RC) and Diamond Drilling (DD) exploration drilling have historically been undertaken.

·       In addition to the drilling database, used surveyed contours of the two open pits and the underground workings. The latest surface topography contours were obtained for the surface topography from the Chief Directorate Surveys and Mapping ("CDSM") South Africa for the area covering the Zaaiplaats project and its surrounds.

·       The wireframe models were constructed by linking strings generated on dip and strike sections interpreted by the company geologists that depict the geology and sample grade distribution. The mineralisation was defined using a tin grade threshold of 0.01%.

·       The five planer mineralised zones were interpreted interrupted by an east west striking fault with a throw of between 10 m and 20 m with scissor displacement.

·       No alternative interpretations were considered.

Dimensions

·     The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.

·       The Mineral Resource Extends from surface to approximately 190 m below surface. The maximum extent on the dip plane is approximately 380 m and the maximum strike length is 600 m.

·       The mineralisation is open at depth.

·       The mineralised zones are between approximately 5 m and 20 m thick.

·       The tabular mineralised zones generally dip between 5° and 15° to the northwest, with the steeper dipping areas being to the southwest.

Estimation and modelling techniques

·     The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.

·     The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.

·     The assumptions made regarding recovery of by-products.

·     Estimation of deleterious elements or other non-grade variables of economic significance (e.g. sulphur for acid mine drainage characterisation).

·     In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.

·     Any assumptions behind modelling of selective mining units.

·     Any assumptions about correlation between variables.

·     Description of how the geological interpretation was used to control the resource estimates.

·     Discussion of basis for using or not using grade cutting or capping.

·     The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.

·       Datamine Studio 3 (Datamine; Version 3.21) was used to construct the geological solids, prepare assay data for geostatistical analysis, and construct the block model. Datamine was used to estimate metal grades and estimate the Mineral Resources using Ordinary Kriging (OK). Isatis software was used for geostatistical analysis and variography.

·       The estimation was carried out by ordinary kriging (OK) of the tin grades of 3 m composite sample data into block models. The individual M Zones were treated as individual domains whereby samples from one domain were not allowed to influence another.

·       Parent cell size of 20 mX by 20 mY by 3 mZ. Diamond core drilling was on 50 m spaced sections and additional sample data were used from chip channel sections. The cell size is 2/5 of the diamond drilling section spacing and the Z cell size equals the estimation composite length.

·       The composite data from each of the five zones was investigated for outliers and top-cuts were applied to the individual zones.

·        M0 - 2100 ppm, 3/42 capped, metal reduction 42.4%

·        M1 - 3140 ppm, 8/137 capped, metal reduction, 6.7%

·        M2 - 3270 ppm, 6/126 capped, metal reduction, 5.7%

·        M3 - 2175 ppm, 5/97 capped, metal reduction, 13.4%

·        M4 - None

The large metal reduction in M0 was due to an extreme value of 19,285.8 ppm Sn).

·       A minimum of 5 composites and a maximum of 12 were used to estimate a block. The search ellipsoid for estimation was orientated in the plane of mineralisation with a dip and strike search distance of 54 m and 6 m down dip as indicated by the results of the variography.

·       The Mineral Resource was extrapolated between 50 m and 150 m from the drill holes.

·       Copper and Tungsten were estimated as potential bi-products

·       No deleterious elements were estimated.

·       A recoverable estimate was not carried out.

·       No production data were available for reconciliation.

·       The models were validated by visual validations of the estimates on a section by section basis, global statistical comparisons of the data on a zone by zone basis, as well as swath analyses which compare the model estimates in slices with the data within the slice. The results were acceptable.

Moisture

·     Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.

·       Tonnages were estimated on a dry basis

Cut-off parameters

·     The basis of the adopted cut-off grade(s) or quality parameters applied.

·       In Situ Cut-Off-Grade   0.1 % (1000 grams per tonne

Mining factors or assumptions

·     Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.

·       Portions of the deposit could be mined by open-pit methods. The deposit is wide and occurs close to surface.

Metallurgical factors or assumptions

·     The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.

·       Cassiterite is amenable to gravity concentration methods.

Environmental factors or assumptions

·     Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.

·      It is assumed that waste-rock and tailings facilities would be constructed on site. The site has experienced mining and is environmentally disturbed 

Bulk density

·     Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.

·     The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc.), moisture and differences between rock and alteration zones within the deposit.

·     Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.

·       SG was determined at Set Point Laboratories using a gas pycnometer on pulverised samples. A total of 1,486 measurements were taken in the mineralised zones and none outside of them.

·       The average SG of the samples for each M Zone is as follows:

·       M0 2.70

·       M1 2.69

·       M2 2.70

·       M3 2.69

·       M4 2.69

Classification

·     The basis for the classification of the Mineral Resources into varying confidence categories.

·     Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).

·     Whether the result appropriately reflects the Competent Person's view of the deposit.

·       Measured: The blocks must have been estimated by OK and be within the modelled orebody wireframes. At least 6 composite samples must have been used to estimate the block and the sample points used to estimate the block grade should be within the first search volume. The slope of regression should be above 0.9 and the area should be continuous between drill holes and not isolated around single drill holes.

·       Indicated: The blocks must have been estimated by OK and be within the modelled orebody wireframes. At least 5 composite samples must have been used to estimate the block and the sample points used to estimate the block grade should be within the second search volume. The slope of regression should be above 0.5 and the area should be continuous between drill holes and not isolated around single drill holes.

·       Inferred: The blocks must have been estimated by OK and be within the modelled orebody wireframes. At least 5 composite samples must have been used to estimate the block and the sample points used to estimate the block grade should be within the third search volume. The slope of regression should be between 0 and 0.5.

·       SRK is satisfied that the geological modelling honours the current geological information and knowledge. The location of the samples and the assay data are sufficiently reliable to support resource evaluation. The sampling information was acquired primarily by core drilling on sections spaced at 50 metres along strike on average. Together with these diamond drill holes there were chip sample sections taken from the old open pit faces and in underground workings in areas where the mineralisation was exposed.

Audits or reviews

·     The results of any audits or reviews of Mineral Resource estimates.

·       No audits or external reviews have been completed. The estimate was subject to SRK's internal review process.

Discussion of relative accuracy/ confidence

·     Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.

·     The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.

·     These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

·       No statistical or geostatistical procedures were used to quantify the relative accuracy of the resource.

·       SRK considers that the blocks classified in the Indicated category, have a level of confidence that is sufficient to allow the appropriate application of technical and economic parameters to support mine planning and to allow evaluation of the economic viability of the deposit. Conversely, those classified in the Inferred category, have insufficient confidence in the estimate to allow for the meaningful application of technical and economic parameters or to enable an evaluation of economic viability.

·       No production data was available to compare with the estimate, historical mining was focussed on the high grade pipes.

 

 

Technical Glossary

Blanks

Samples known to contain no mineralisation which are submitted to the laboratory to check for contamination These form part of the QA/QC.

Cassiterite

The principal tin-bearing mineral, tin oxide (SnO2). Contains 78.7% Sn

DMR

The Department of Mineral Resources (South Africa)

Field duplicates

Samples which have been relabelled and resubmitted for assay at the original laboratory in order to check the accuracy and precision of the original analysis. Also serves as a check on the appropriateness of the sample size and subsampling methodology. These form part of the QA/QC.

Fault    

A fracture or fracture zone, along which displacement of opposing sides has occurred.

Geotechnical

Relating to the engineering behaviour (rocks strength, fractures etc.) of the rock

Granite

A generic term for coarse grained igneous rock composed primarily of quartz and feldspar.

Inferred Mineral Resource

Defined by the JORC (2012) code that part of a mineral resource for 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

Indicated Mineral Resource

that part of a mineral resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed

JORC (2012)

the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2012 edition), 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")

Lease Granite

A fine-grained pink-red granite found at the Groenfontein and Zaaiplaats deposits

Lenticular

Lens-shaped

Lithological logging,

Recording of information relating to the lithology (rock type) of the drill core

Ma       

Million years.

Measured Mineral Resource

that part of a mineral 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 grade continuity

Mineralisation

commonly taken to be cassiterite

Mineralised zones

Zones with elevated amounts of cassiterite

The MSA Group

A provider of exploration, geology, mineral resource and reserve estimation, mining and environmental consulting services to the mining industry.

Ordinary Kriging

A method used to interpolate spatial data of where the error variance is minimized.

Pegmatite

Extremely coarse-grained granite

Pulp samples

Samples that have been crushed and milled (pulverised) to a fine powder.

QA/QC

Quality Assurance and Quality Control. These are measures put in place to assess the accuracy and quality of the assay data reported.

Sn

Chemical symbol for tin

SPL

Set Point Laboratories, a laboratory in Johannesburg

SRK Consulting

A consulting practise providing advice and solutions to the earth and water resource industries

Standard

A sample with with  known value of tin (or other element of interest) that is submitted to the laboratory with regular samples in order to check for accuracy and precision as part of the QA/QC

Stratabound

Bounded or contained within a geological or lithological unit

Tailings

the waste materials (residue) produced by the processing plant after extraction of valuable minerals

Uis Tin Project

A tin project in Namibia in which the Company owns a stake

Vugs

Hollow zones within the rock, that may often contain mineralisation

XRF

X-Ray Fluorescence Spectrometry.

 

 

Enquiries: info@bushveldminerals.com

 

Bushveld Minerals

+27 (0) 11 268 6555

Fortune Mojapelo




SP Angel Corporate Finance LLP

+44 (0) 20 3470 0470

Nominated Adviser & Joint Broker


Ewan Leggat




Beaufort Securities

+44 (0) 20 7382 8300

Joint Broker


Jon Belliss




Blytheweigh


Financial PR


Tim Blythe / Camilla Horsfall

+44 (0) 20 7920 3150



Gabriella von Ille

+27 (0) 711 121 907

 

 

Notes to editors

Bushveld Minerals is a diversified AIM listed mineral development company with a portfolio of vanadium, iron ore, tin and coal greenfield assets in Southern Africa and Madagascar.  The Company's flagship platform, the vanadium platform, includes the Mokopane Vanadium Project, the Brits Vanadium Project, and the Bushveld Iron Ore & Titanium Project. The tin platform comprises the Mokopane Tin Project whereas the Imaloto Coal Project, which is being developed as one of Madagascar's leading independent power producers, makes up the Company's coal platform.

 

The Company's vision is to become the largest low cost integrated primary vanadium producer through owned low-cost high-grade assets. This incorporates development and promotion of the role of vanadium in the growing global energy storage market through Bushveld Energy, the Company's energy storage solutions provider. Whilst the demand for vanadium remains largely anchored in a slow growing steel industry, Bushveld Minerals believes there is a strong potential for imminent significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries.

 

Bushveld Minerals' approach to project development recognises that whilst attractive project economics are imperative, they are insufficient to secure capital to bring them to account. A clear path to production with a visible timeframe, low capex requirements and scalability are important factors in retaining an attractive exit option. This philosophy is core to the Company's strategy in developing projects.

 

Detailed information on the Company and progress to date can be accessed on the website: www.bushveldminerals.com

 

- ENDS -


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