35% Increase of JORC Resource Upgrade at Mpokot...

35% Increase of JORC Resource Upgrade at Mpokoto Gold Project

Armadale Capital Plc

Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company

19 December 2013

Armadale Capital Plc (‘Armadale’ or ‘the Company’)

35% Increase of JORC Resource Upgrade at Mpokoto Gold Project

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce an updated JORC Code Compliant Resource estimate at the Mpokoto Gold Project in the Katanga Province in the south of the Democratic Republic of Congo (‘Mpokoto’ or ‘the Project’).

Highlights:

• 35% increase in total Mineral Resource to 510,000oz gold (‘Au’) from 11.2 million tonnes (‘Mt’) @ 1.42g/t Au at a cut-off grade of 0.5g/t (previous resource of 380,000oz Au from 7.2Mt @ 1.65g/t at a 0.5g/t cut-off)
• 65% of the updated Mineral Resource is in the Indicated category
• The Mineral Resource estimate is based upon the completion of an additional 21 diamond drill holes completed since the last resource estimate, a recent re-interpretation of the geology from164 holes drilled for a total of 18,142m –conducted by previous owners of the project
• Considerable further upside potential left– Exploration Target of 10Mt-15Mt at 1.2g/t-1.5g/t Au, as reviewed by CSA
• Defined development strategy to rapidly advance the Project through to low Capex, low Opex gold production in 24 months

Justin Lewis, Director of Armadale, said, “I am delighted to announce this 35% increase in the total gold Mineral Resource estimate at Mpokoto, demonstrating the Board’s belief that the Project has considerable further scope to become a highly attractive pre-production gold asset. The updated Mineral Resource is based on additional drilling and an increased level of confidence in the geological and resource model work that was conducted on behalf of the group. Our activities remain focused on the further delineation of gold resource ounces, together with the additional critical development work required ahead of low cost commercial gold production targeted within the next two years.”

Further Information

CSA Global Pty Ltd (‘CSA’) was engaged to complete a Mineral Resource estimate (‘MRE’) for gold mineralisation in the Mpokoto Gold Project where the group has the right to earn an 80% interest in the Project.

The MRE is based on the results obtained from 164 drill holes (18,142m), consisting of 57 reverse circulation (‘RC’) totaling 3,585m, and 107 diamond drill holes (incl. RC holes with diamond core tails) totaling 14,557m, and is classified as Indicated and Inferred. This is based on confidence in the geological interpretation and continuity from the results of the drilling campaign and surface mapping. The results of the estimate are tabulated in Table 1 below.

Table 1: Mineral Resource estimate results for Mpokoto. Au >= 0.5g/t

Weathering	Â	Classification	Â	Tonnes	Â	Au g/t	Â	Ounces
Oxide		Measured		-		-		-
		Indicated		250,000		1.46		11,700
		Sub-total		250,000		1.46		11,700
		Inferred		240,000		1.17		8,900
		Total		490,000		1.32		20,600
Transitional		Measured		-		-		-
		Indicated		870,000		1.50		42,200
		Sub-total		870,000		1.50		42,200
		Inferred		1,120,000		1.07		38,200
		Total		1,990,000		1.26		80,400
Fresh		Measured		-		-		-
		Indicated		5,970,000		1.46		280,200
		Sub-total		5,970,000		1.46		280,200
		Inferred		2,750,000		1.46		129,000
		Total		8,720,000		1.46		409,200
All		Grand Total		11,200,000		1.42		510,200

Note: The Mineral Resource was estimated within constraining wireframe solids based on geological interpretations and / or a lower Au limit of 0.2 g/t. Results are reported from blocks with a block grade of >= 0.5 g/t Au. Differences may occur due to rounding

Mineral Resource Estimation (MRE)

The classified mineralisation model is based on drill spacing which was nominally on 40m sections although drilling directions in places deviated away from the drilling section line.

The deposit has been separated into four areas, defined by intensity of drilling and changes in strike of mineralisation. The classified Mineral Resource is confined to Areas 3 and 4, with the other two areas lacking sufficient drilling to define a Mineral Resource (a map showing the drill hole locations can be found on the Company’s website at www.armadalecapitalplc.com).

Wireframe solids were generated based on geological interpretations from CSA Global, based upon lithological domains and a lower cut-off grade of >= 0.2g/t Au. A north-south fault has been interpreted to offset the mineralisation across strike between Areas 3 and 4.. Limited drilling in Area 3 (Inferred Mineral Resource) has resulted in a strike continuous mineralisation model which may be broken up following results from any subsequent drilling. Depth extents of the mineralisation model are limited to approximately 50m down dip of the deepest drill hole intercept, unless drill holes along strike allow the interpretation to continue at depth without drill support on the current section. Strike extent of mineralisation is limited to approximately half the sectional spacing beyond the drill hole limits.

The MRE consists of 12 zones of Au mineralisation and two weathering domains (oxide and fresh). Mineralisation domains were encapsulated by means of 3D wireframed envelopes. Domains were extrapolated along strike or down plunge to half section spacing or if a barren hole cut the plunge extension before this limit.

Strike extent of the mineralisation model in Area 4 is approximately 750m, plan width of the lenses and intervening waste zones pinches and swells between 100m and 200m, vertical depth of approximately 200m. Mineralisation generally outcrops at surface.

Strike extent of the mineralisation model in Area 3 is approximately 900m, plan width of the lens 6m, vertical depth ranges from 40m to 90m. Mineralisation generally outcrops at surface. Grade was interpolated into the block model using ordinary kriging. Density values of 2.2t/m³ (Oxide zone) and 2.72t/m³ (fresh zone) were assigned to the block model and used to calculate tonnages as reported in Table 1.

Classification of the Mineral Resource estimates was carried out taking into account the geological understanding of the deposit, QAQC of the samples, density data and drill hole spacing. The Indicated Mineral Resources were based upon a higher level of confidence than the Inferred resources, whereby geological and grade continuity are assumed, but not confirmed. All available data was assessed and the competent person’s relative confidence in the data was used to assist in the classification of the Mineral Resource. The current classification assignment appropriately reflects the Competent Person’s view of the deposit.

Geology and Mineralisation

Mineralisation occurs in tabular and laterally extensive stratigraphic horizons within a sedimentary sequence which consists of gold rich coarse-grained sandstone horizons interlayered with fine to very coarse layered siliciclastic units overlying metamorphic schistose basement forming a broad south southwest and west dipping re-folded fold limb, that was targeted during several drilling programs. The modelling was constrained within wireframe solids representing the interpreted geological limits of the gold mineralised sandstone units. The mineralisation in Area 4 consists of several parallel stacked lenses that are open down dip.

About Mpokoto Gold Project

Mpokoto is located in the western part of the Katanga Province approximately 250km west of Kolwezi in the Democratic Republic of Congo, and approximately 25km from the Zambian border. The area is highly prospective, with local operators including Ivanplats Limited and Glencore Plc.

Since 1998, approximately US$20 million was spent on gold exploration at the Project. In 2012, mining consultancy TetraTech completed a Mineral Resource estimation reported according to the JORC 2004 and NI 43-101 guidelines. At a cut-off of 0.5g/t Au the deposit was estimated to contain 7.2Mt at 1.6g/t Au for approximately 380,000oz Au. Of this, approximately 5.3Mt at 1.6g/t Au are classified in the Indicated category for 290,000oz Au.

This estimate includes a portion of the previously reported Exploration Target which has been tested through recent drilling and converted to an Inferred Mineral Resource (Area 3). CSA have reviewed the Exploration Target which now consists of between 10 and 15Mt at 1.2g/t-1.5g/t Au. The quantity and grade of the Exploration Target is conceptual and there has been insufficient exploration to define a Mineral Resource.

The potential for additional resources and reserves is strong. Should this target mineralisation be converted to Inferred and Indicated resources and then to reserves, it is likely that the Project throughput rate can be substantially upgraded. Resource delineation drilling programmes are planned to test the target potential.

Competent Person Statement:

Scientific or technical information in this release has been prepared by Dr Simon Dorling Phd (geol) MAIG, Principal Consultant, and Mr. David Williams BSc (Hons) MAusIMM MAIG, Principal Consultant, of CSA Global Pty Ltd. Dr Simon Dorling and David Williams are members of the Australian Institute of Geoscientists (MAIG) and each has over 20 years’ experience, which is relevant to the style of mineralisation under consideration and to the activity which they are undertaking to qualify as Competent Persons, as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code). Dr Simon Dorling and Mr. David Williams consent to the inclusion in this report of the information, in the form and context in which it appears.

A copy of the announcement, which includes a map and drawings relating to Mpokoto’s location and geology, can be found on the Company’s website at www.armadalecapitalplc.com.

**ENDS**

Enquiries:

Company

Justin Lewis, Director [phone]
Charles Zorab [phone]

Nomad and broker: finnCap Limited

Stuart Andrews/ Christopher Raggett [phone]

Press relations: St Brides Media & Finance Ltd.

Susie Geliher/Charlotte Heap [phone]
More information can be found on the website www.armadalecapitalplc.com

Notes

Armadale Capital Plc is focussed on investing in and developing a portfolio of investments, targeting the natural resources and/or infrastructure sectors. The Company, led by a team with operational experience and a strong track record in Africa, has a strategy of identifying high growth potential businesses where it can take an active role in their advancement.

Armadale holds the right to an 80% interest in the Mpokoto Gold Project in the Democratic Republic of Congo. Armadale are focused on proving up the resource potential of Mpokoto with a view to commencing commercial gold production in 2015.

Armadale also holds approximately a 40% interest in Mine Restoration Investments Ltd, a South African listed company, which aims to develop profitable operations within the South African mining industry through its coal briquetting operation in KwaZulu Natal and acid mine drainage technology in the Witwatersrand basins.

In addition, Armadale has a small portfolio of listed investments which are focused on gold production and exploration. The Directors continue to maintain an active acquisition strategy and will review investment opportunities that they believe have the potential to be accretive in terms of shareholder value.

JORC Code, 2012 Edition

JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

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

Criteria	Â	JORC Code explanation	Â	Commentary
Sampling techniques		Nature and quality of sampling (eg 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 (eg ‘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 (eg submarine nodules) may warrant disclosure of detailed information.		The deposit was sampled using both Diamond and Reverse Circulation (RC) drill holes over three drilling campaigns. Drill holes were generally drilled 50-100m apart. A total of 78 Diamond holes and 77 RC holes were drilled for a total of 18,151m (12,842m diamond; 5309m RC). The majority of the holes were drilled towards the northeast with dips varying between -50 and -60º. RC samples were collected at 1m by riffle splitter. Diamond core provided Netcom with high quality samples. Appropriate QAQC protocols were followed, including submission of field duplicates and insertion of commercial standards Diamond core in ore was NQ size, sampled every 1m in the ore zone, cut into half, whereas RC samples were obtained by 1m samples from the rig. Preliminary samples from both Diamond and RC programmes were crushed and ground to obtain a representative fraction of greater than 500g. This fraction was then dried to constant mass at 105ºC. The representative fraction was ground to 90% passing 100 micron using a laboratory mill. The samples were weighed. and mixed with a 12:22 Lithium Metaborate/Lithium Tetraborate Flux containing 4% Lithium Nitrate as an oxidising agent. The flux/sample mixture was then fused at 1050ºC. All elements were determined by X-ray Fluorescence Spectrometry (XRF). LOI was determined gravimetrically in a muffle furnace at 1000ºC.
Drilling techniques		Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg 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).		Diamond drilling comprises HQ sized core. Drilling involved coring to the end of hole. Hole depths range from ~0 to 454m. Core was oriented using single shot orientation tool. RC drilling comprised a nominal 5 ½ inch diameter face sampling hammer. Hole depths range from 0m to 150m.
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.		Diamond core recovery is logged and recorded in the database. Between 10 to 20% core loss was recorded over parts of the oxide zone. RC recovery was visually assessed and considered to be acceptable within the mineralized zones. Diamond core was reconstructed into continuous runs for orientation marking, depths being checked against the depth marked on the core blocks. RC samples were visually checked for recovery, moisture and contamination. A cyclone and splitter were used to provide a uniform sample and these were routinely cleaned. Sample Recovery is generally very high within the ore zone. No significant bias is expected, and any potential bias is not considered material at this stage of resource development.
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.		Diamond core and RC drill chips underwent detailed logging through the entire hole (at 1m intervals for RC chips), with record kept of colour, lithology, degree of oxidation, water table etc. Diamond core was geotechnically logged for recovery and RQD. Information on structure type and orientation are recorded in the database. Diamond core and RC Chip trays have been stored in Kasenge site for future reference. Diamond core and RC chip logging included records of lithology, oxidation state, colour, mineralisation, alteration and veining. Core was photographed in both dry and wet form.
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.		Diamond core was sawn in half. RC samples were collected on the rig using riffle splitters. Samples were generally dry. Samples were riffle split to obtain a representative fraction of >500g.Samples were then dried and ground to 90% passing 100 microns using laboratory mills for XRF analysis. Field QAQC procedures included the insertion of field duplicates and commercial standards for DD and RC sampling Standards were inserted at a rate of very 19th and 20th sample. RC field duplicates were taken from 1m cone split samples at the rig. Diamond holes were sampled at 1m intervals for raw assays samples. Sample sizes are considered to be appropriate to accurately represent the Au mineralisation at Mpokoto based on the thickness and consistency of the intersections, the sampling methodology and the percent value assay ranges for the primary elements.
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 (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.		The gold analysis was done at the ALS laboratory in S.A. by fire assay which is industry standard for gold. Results provide the total contained amount of gold in the samples. Not applicable to the project. Field data were all recorded on hardcopies (geological logging, sampling intervals, etc.) using a set of standard Excel templates, then manually entered into Excel spreadsheets. Data were then sent to Mrs. O. Schuh for validation. Assay files were sent to Mrs. O. Schuh upon receipt from the laboratories.
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.		Several different company personnel visually verified intersections in both diamond core and RC chips. No Twinned hole was used during any of the programmes. Field data were all recorded on hardcopies (geological logging, sampling intervals, etc.) using a set of standard Excel templates, then manually entered into Excel spreadsheets. Data were then sent to Mrs. O. Schuh for validation. Assay files were sent to Mrs. O; Schuh upon receipt from the laboratories. No adjustments were made, other than for values below the assay detection limit which have been entered as the negative of the detection limit.
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.		Drill hole collars were surveyed by differential GPS with horizontal accuracies of about 0.1m. A downhole survey point was taken every 50m by means of a single shot camera tool by the drilling contractor. The grid system is WGS_UTM84 Zone 32 The topographic surface has been generated from 2m topographic contours obtained during a topographic survey completed in 2013 by SD Géomatique. All collar locations have been picked up by means of differential GPS.
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.		Drill holes were generally drilled 10-100m apart in the area of the classified resource. The data spacing and distribution is sufficient to demonstrate spatial and grade continuity of the mineralised horizon to support the definition of Inferred and Indicated Mineral Resources under the 2012 JORC code. No composite have been applied for Diamond and RC drilling.
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.		Drilling sections are orientated Northeast - to Southwest with respect to geographic north. This orientation is perpendicular to the strike of the host-meta-sediment strata units observed at Mpokoto. The majority of the drilling is angled to the Northeast, dipping between -50 and -60º to return mineralisation intervals with thickness as true as possible. Diamond core observation confirmed the pertinence of this hole orientation. Diamond drilling confirmed that drilling orientation did not introduce any bias regarding the orientation of the gold mineralisation unit.
Sample security		The measures taken to ensure sample security.		Chain of Custody was managed by the various owners of the project. Samples were stored on site and delivered to the assay laboratory in Johannesburg by DHL and by transporter Palma sprl of Lubumbashi (DRC). Samples submission sheets were in place to track the progress of every batches of samples.
Audits or reviews		The results of any audits or reviews of sampling techniques and data.		Sampling techniques are consistent with industry standards. Consistency of data was validated by Mrs. O; Schuh while loading into the database (Depth from < Depth to; interval is within hole depth, check for overlapping samples or intervals, etc.). Any data which fails the database constraints and cannot be loaded is returned to field crew for validation, etc.). Global consistency was also checked later on by plotting sections using the database and reconciling assays against geology.

Section 2 Reporting of Exploration Results

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

Criteria	Â	JORC Code explanation	Â	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 deposit is located in exploration licence PE12897. Netcom Global Inc has the right to acquire an 80% interest in Kisenge Limited's Mpokoto Gold project The tenement is in good standing with no known impediment to future grant of a mining lease
Exploration done by other parties		Acknowledgment and appraisal of exploration by other parties.		The tenement has been explored for Au in the past. The project was established by Cluff Mining Limited in 1998, Goldfields acquired Kisenge Limited from Cluff Mining in 2003 and sold to Casa in 2007.
Geology		Deposit type, geological setting and style of mineralisation.		The Mpokoto gold mineralisation occurs in a stratified low-metamorpic siliciclastic sedimentary sequence resting on metamorphosed basement of Proterozoic age. The mineralisation occurs stratiform and occurs preferentially in coarse-sandy facies.
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: easting and northing of the drill hole collar elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar dip and azimuth of the hole down hole length and interception depth 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.		This material has been adequately reported in previous announcements.
Data aggregation methods		In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg 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.		Not reporting exploration results. Not applicable Not applicable
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 (eg ‘down hole length, true width not known’).		Drill hole angles of between -50⁰ and -60⁰ toward the northeast are adequate to drill the moderately dipping to south west units. Not reporting exploration results. Not reporting exploration results.
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.		Refer to diagrams in body of text
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 reporting exploration results.
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.		Surface sampling and mapping were completed over different field campaigns by Cluff, Goldfields and CASA. Jigsaw Geoscience was contracted to complete detailed mapping of the project. An aeromagnetic survey of the project was completed in 2005 giving further insight over the geometry of deformed host units.
Further work		The nature and scale of planned further work (eg 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.		Metallurgical test work will be completed on recently drilled resource area. Some more DD drilling is planned in untested areas to upgrade the resource, reduce spacing and test mineralisation extensions. Refer to diagrams in body of text

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	Â	JORC Code explanation	Â	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.		Data used in the Mineral Resource estimate is sourced from a data base dump, provided in the form of an MS Access database. Relevant tables from the data base are exported to MS Excel format and converted to csv format for import into Datamine Studio 3 software for use in the Mineral Resource estimate. Validation protocols for the data entered to the Data Shed database are described in Section 1. Datamine has inbuilt and operator coded drill hole validation features that test for overlapping sample intervals, differences between collar elevations and the adjacent DTM elevation, down hole survey readings with significant deviations over nominated down hole intervals. Drill holes were loaded into 3D space and visually checked for any obvious errors in survey measurements.
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.		The geological Competent Person (CP) has not visited site prior to this resource estimation due to time constraints. Plans have been made for a site visit in early 2014. The CP has extensive experience in sediment-hosted and orogenic gold deposits and has a strong structural background to be able to evaluate and interpret the deposit geology and mineralisation data based on his experience.
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.		A geological model was constructed based upon measured and observed structural and lithological data. The Competent Person has high confidence in the geological interpretation supporting the Mineral Resource. 21 diamond drill holes were completed in the past two years to complement the pre-existing 63 diamond holes and 77 RC holes. Drill hole logs, samples and assays, plus surface geological outcrop mapping form the basis of the geological interpretation. Previous Mineral Resource estimates (x2) were based upon geological interpretations with much less underlying geological factual support. The interpretations generally used the same strike and dips for the geological models as the current Mineral Resource model. Lithological logs of the conglomerates hosting the mineralisation controlled the widths and extents of the mineralisation envelopes. Mineralisation occurs in tabular and laterally extensive stratigraphic horizons. A north-south fault has been observed in drill core and outcrop cutting the mineralisation along strike between Areas 3 and 4. Limited drilling in Area 3 (Inferred Mineral Resource) has resulted in a strike continuous mineralisation model which may be broken up following results from any subsequent drilling. Depth extents of the mineralisation model are limited to approximately 50m down dip of the deepest drillhole intercept, unless drill holes along strike allow the interpretation to continue at depth without drill support on the current section. Strike extent of mineralisation is limited to approximately half the sectional spacing beyond the drill hole limits.
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.		Strike extent of the mineralisation model in Area 4 is approximately 750m, plan width of the lenses and intervening waste zones pinches and swells between 100m and 200m, vertical depth of approximately 200m. Mineralisation generally outcrops at surface. Strike extent of the mineralisation model in Area 3 is approximately 900m, plan width of the lens 6m, vertical depth ranges from 40m to 90m. Mineralisation generally outcrops at 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 (eg 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.		CAE Studio 3 (Datamine) software was used for all geological modelling, block modelling, grade interpolation, MRE classification and reporting. GeoAccess Professional and Snowden Supervisor were used for geostatistical analyses of data. The Au interpretation was based upon a lower cut-off of 0.2g/t Au and a lithological envelope (conglomerates). The MRE consists of 12 zones of Au mineralisation and two weathering domains (oxide and fresh). Mineralisation domains were encapsulated by means of 3D wireframed envelopes. Domains were extrapolated along strike or down plunge to half a section spacing or if a barren hole cut the plunge extension before this limit. Top cuts were used to constrain extreme grade values. A top cut was set to 20g/t. All samples in Area 4 were composited to 1m intervals, whilst drill hole data in Area 3 were composited to 2m intervals, based upon raw drill hole sample lengths. All drill hole data (RC and Diamond) were utilised in the grade interpolation. A block model was constructed using all mineralisation domains and weathering profiles, capped by a topographical DTM. Block sizes of 20m (X) by 20m (Y) by 10m (Z) were selected based upon typical drill hole spacing (40m along strike). The model was not rotated. Grade estimation was by Ordinary Kriging (OK) with Inverse Distance Squared (IDS) estimation concurrently run as a check estimate. A minimum of 12 and maximum of 40 samples were used in any one block estimate. A maximum of 4 composited samples per drill hole were used in any one block estimate. Cell Discretisation of 5 x 5 x 5 was used. Grade interpolation was run within the individual mineralisation domains, acting as hard boundaries. Weathering profiles were used as soft boundaries and did not control grade interpolation. The grade model was validated by 1) creating slices of the model and comparing to drill holes on the same slice; 2) swath plots comparing average block grades with average sample grades on nominated easting, northing and RL slices; and 3) mean grades per domain for estimated blocks and flagged drill hole samples. The current Mineral Resource was checked against the previously reported Mineral Resources and shown to be of an increased tonnage but similar grade. No by products were modelled. No selective mining units were assumed in this model. Only Au was modelled therefore no correlation between other variables was required.
Moisture		Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.		Tonnages are estimated on a dry basis.
Cut-off parameters		The basis of the adopted cut-off grade(s) or quality parameters applied.		The reporting cut-off grade of 0.5g/t was selected due to it being the same cut-off used to report previous Mineral Resources.
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.		It is assumed the deposit, if mined, will be developed using open pit mining methods. No assumptions have been made to date regarding minimum mining widths or dilution.
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.		Metallurgical test work since 2010 suggest the oxide mineralisation is amenable to cyanidation with good gold recoveries on CIL bottle roll tests. Recent test work has indicated heap leach as a potential processing route for achieving acceptable gold recoveries of up to 86%. Metallurgical test work since 2010 suggest the transition zone mineralisation is amenable to cyanidation with reasonable gold recoveries on CIL bottle roll tests. Recent test work has indicated heap leach as a potential processing route for achieving acceptable gold recoveries of up to 60%. Sulphide mineralisation metallurgical test work has suggested that CIL gold recoveries are at 51%. It has been recommended by previous workers that a heap leach based processing flowsheet with an appropriate sulphide mineralisation pre-treatment method (such as bio-heap leach) may be a processing method. No detailed metallurgical test work has been completed to date on the project.
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.		No environmental baseline studies have been completed to date on this project. The project area’s topography consists of gentle hills and valleys, with elevation ranging between 900m and 1200m. Vegetation is mainly indigenous savannah, open woodland, grassland plains and minor agricultural plots. Several rivers flow through the project area. The climate in the project’s region is tropical to sub-tropical with an annual rainfall of up to 1500mm. The topography around the Mpokoto deposit has space for potential tailings storage areas, waste disposal, heap leach pads and processing plants.
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.		Density measurements were taken from diamond drill core, for which there are no detailed records regarding method of measurement. It is assumed the measurements were taken using conventional wet immersion techniques (weight in air, weight in water). No information available regarding any coating of core prior to immersion. Density values were added to drill hole file and statistical analyses conducted based upon weathering profiles. Only the Fresh rock domain yielded results with an appropriate sample support, for a density value of 2.72t/m3. Oxide and Transitional zones were applied a nominal (assumed) density of 2.2t/m3.
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.		Classification of the Mineral Resource estimates was carried out taking into account the geological understanding of the deposit, QAQC of the samples, density data and drill hole spacing. The Indicated Mineral Resources were based upon a higher level of confidence than the Inferred resources, whereby geological and grade continuity are assumed, but not confirmed. All available data was assessed and the competent persons relative confidence in the data was used to assist in the classification of the Mineral Resource. The current classification assignment appropriately reflects the Competent Person’s view of the deposit.
Audits or reviews		The results of any audits or reviews of Mineral Resource estimates.		No audits or review of the Mineral Resource has been carried out to this time.
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.		An inverse distance estimation algorithm was used in parallel with the ordinary Kriged interpolation, with results very similar to the Kriged results. No other estimation method or geostatistical analysis has been performed. The Mineral Resource is a local estimate, whereby the drill hole data was geologically domained above a nominated Au cut-off grade, resulting in fewer drill hole samples to interpolate the block model than the complete drill hole dataset, which would comprise a global estimate. Relevant tonnages and grade above a nominated cut-off grade are provided in the introduction and body of this report. Tonnages were calculated by filtering all blocks above the cut-off grade and sub-setting the resultant data into bins for weathering and classification. The volumes of all the collated blocks were multiplied by the dry density value to derive the tonnages. The gold metal value (g) for each block was calculated by multiplying the Au grade (g/t) by the block tonnage. The total sum of all metal (g) for the deposit for the filtered blocks was divided by the total tonnage to derive the reportable Au grade (g/t). No production data is available to reconcile results with.