TIDMKDNC
RNS Number : 0959C
Cadence Minerals PLC
07 October 2022
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Mineral Resource Increase & Upgrade at the Amapá Iron
Project
Cadence delivers an increase to JORC Resource tonnes at the
Amapá Iron Ore Deposit, including a substantial uplift in Resource
Categorisation.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to
announce that DEV Mineração S/A ("DEV") has completed a new Mineral
Resource Estimate ("MRE") in compliance with the Australian Code
for Reporting of Exploration Results, Mineral Resources and Ore
Reserves ("JORC Code, 2012") for the Amapá Iron Ore Project
Brazil.
Highlights:
-- Substantial increase in total Measured, Indicated and
Inferred Mineral Resources, to 276.24 Million Tonnes ("Mt") grading
38.33% Fe
-- New Measured Resource of 55.33 Mt grading 39.26% Fe
-- Measured and Indicated Resource increase to 229.48 Mt at
38.76% Fe, from 176.7 Mt at 39.75% Fe ([1]) , reported within an
optimised pit shell and using a cut-off grade of 25% Fe.
-- Inferred Mineral Resource increased to 46.76 Mt at 36.20% Fe,
from 8.7Mt at 36.9% Fe, reported within an optimised pit shell and
using a cut-off grade of 25% Fe.
Cadence CEO Kiran Morzaria commented:
"The main aim of our new mineral resource statement was to
provide a sound basis for pre-feasibility studies. In particular,
to convert a significant portion of the indicated mineral resource
into the measured category. The results reported today have
achieved this goal and more.
The results clearly indicate the robustness and consistency of
the Amapá resource.
As we move closer to the next stage of development, this higher
degree of certainty in our mineral resource estimate provides more
funding options for the Project. The new measured resource and the
overall increase in the mineral resource provides a sound basis for
an initial 15-year mine life, with the potential to expand this
further by upgrading the 46.76 Mt of inferred resources."
Assumptions and Method of MRE
Prominas Mining Ltd ("Prominas") was commissioned by DEV
Mineração S/A ("DEV") to complete a JORC Code (2012) compliant MRE
on the 100% owned mineral assets of DEV comprising the Amapá Iron
Ore Deposit ("Amapá" or the "Project") located in Amapá State,
Brazil. DEV holds the mining rights to the Project, and Cadence,
via a joint venture company, owns 27% of DEV. The classification of
Mineral Resources was considered appropriate on the basis of
geological confidence, drill spacing, sample interval, QAQC and
estimation performance.
Before this MRE, the most recent MRE on the Amapá Project was
completed in 2020 by Cadence ("2020 MRE"). The 2020 MRE was
estimated following the Canadian Institute of Mining, Metallurgy
and Petroleum (CIM) "Estimation of Mineral Resources and Mineral
Reserves Best Practice Guidelines" (CIM, 2019). The 2020 MRE was
limited to the Friable Hematite, Friable Itabirite and Friable
Altered Itabirite material types. While the current MRE included
these material types plus Colluvium and Canga material within the
resource statement. This inclusion of Colluvium and Canga into the
MRE was deemed appropriate as it was used as ore in historic
production. The inclusion of Colluvium and Canga in the MRE
represents the majority of the increase in the current MRE.
The geologic units that underlie the region consist of Archean
basement rocks, TTG terrains (Guianense Complex, Tumucumaque
Complex and Água Fria Metatonalite), discordantly overlaid by
Paleoproterozoic greenstone belts (Vila Nova Group), in turn,
overlain by Cenozoic lateritic deposits and Quaternary alluvial
materials. In the Amapá System area, the iron ore (oxide and
silicate facies itabirites), calc-silicate and carbonatic rocks
occur in two regions. The first is a synform (locally named
APW/APS) above the unit of metabasic rocks (mainly amphibolites)
and quartz mica schist biotite and muscovite-bearing schist, where
the mine is located. The second is Dragão, a mineralised body
located 3.5km to NE with orientation NW/SE , assumed as a potential
resource and not included in this mineral resources estimate .
Mineralisation extends approximately 6.5km in strike length,
1.5km in width, and exists in some areas to more than 100m in
depth. Geological processes have weathered this proto-resource, the
hard itabirite (ITC), actually considered waste, transforming part
of the volume into mineral resources, the soft itabirite (ITB)
illustrated in Figure 1 -Amapá Iron Ore Mineralisation here
A 3D geological model was built by an implicit modelling method
based on interpreted geological domains using the drillhole
database and study of the old sections provided by DEV , then used
to flag the sample data for statistical analysis and to limit the
resource estimation. For this study, statistical and geostatistical
analysis was carried out on drilling data composited to 4 m
downhole for APW/APS only. This included variography to model
spatial continuity relationships in the geological domains.
Geostatistical analysis and interpolation were undertaken using
MinePlan(c) proprietary software. The Ordinary Kriging
interpolation method was used for the estimation of Fe, Al(2) O(3)
, SiO(2) , P, and Mn, using variogram parameters defined from the
geostatistical analysis for the APW/APS domains.
Wet Bulk density values for the Amapá deposit were assigned
based on data provided by DEV. The density values were assigned to
15 lithologies based on almost 678 density samples for friable and
compact material collected from 2006 to 2012.
Mineral Resource Statement
The MRE has been reported at a cut-off grade of 25% Fe
constrained by a resource open pit and the topography dated April
2014 (grey surface in Figure 1 here ), in line with the Reasonable
Prospects For Eventual Economic Extraction (RPEEE) principle. The
MRE has been estimated, considering a product revenue of US$ 120/t.
The geotechnical parameters, metallurgical recovery and updated
mining costs were all provided by DEV.
Table 1: Gross and attributable Mineral Resources for the Amapá
Iron Ore Project at a Cut-Off Grade reported within an optimised
pit and above a cut-off grade of 25% Fe
Classification Material Tonnage Attributable Fe SiO(2) Al(2) P Mn
(Mt) Tonnage (%) (%) O(3) (%) (%)
(Mt) (%)
--------
Friable Altered
Measured Itabirite 33.31 8.99 38.47 30.42 7.22 0.170 1.19
---------------- ------------------- -------- ------------- ------ ------- ------ ------ -----
Friable Itabirite 14.65 3.96 39.55 36.50 2.81 0.086 0.88
------------------------------------ -------- ------------- ------ ------- ------ ------ -----
Friable Haematite 0.69 0.19 62.63 4.32 2.20 0.226 0.38
------------------------------------ -------- ------------- ------ ------- ------ ------ -----
Colluvium 5.84 1.58 38.80 21.66 11.89 0.177 0.70
------------------------------------ -------- ------------- ------ ------- ------ ------ -----
Canga 0.84 0.23 50.03 5.68 10.60 0.971 0.18
------------------------------------ -------- ------------- ------ ------- ------ ------ -----
Sub-total 55.33 14.94 39.26 30.40 6.54 0.161 1.03
------------------------------------ -------- ------------- ------ ------- ------ ------ -----
Friable Altered
Indicated Itabirite 66.43 17.94 37.41 32.11 6.73 0.173 1.29
---------------- ------------------- -------- ------------- ------ ------- ------ ------ -----
Friable Itabirite 37.14 10.03 39.73 35.73 2.91 0.103 0.92
------------------------------------ -------- ------------- ------ ------- ------ ------ -----
Friable Haematite 1.5 0.41 57.53 12.85 2.18 0.113 0.43
------------------------------------ -------- ------------- ------ ------- ------ ------ -----
Colluvium 64.22 17.34 37.98 23.11 11.86 0.140 0.58
------------------------------------ -------- ------------- ------ ------- ------ ------ -----
Canga 4.86 1.31 48.81 8.98 10.08 0.579 0.21
------------------------------------ -------- ------------- ------ ------- ------ ------ -----
Sub-total 174.15 47.02 38.60 28.75 7.86 0.156 0.91
------------------------------------ -------- ------------- ------ ------- ------ ------ -----
Mea. + Friable Altered
Ind. Itabirite 99.74 26.93 37.76 31.55 6.89 0.172 1.26
---------------- ------------------- -------- ------------- ------ ------- ------ ------ -----
Friable Itabirite 51.79 13.98 39.68 35.95 2.88 0.098 0.91
------------------------------------ -------- ------------- ------ ------- ------ ------ -----
Friable Haematite 2.19 0.59 59.14 10.16 2.19 0.149 0.41
------------------------------------ -------- ------------- ------ ------- ------ ------ -----
Colluvium 70.06 18.92 38.05 22.99 11.86 0.143 0.59
------------------------------------ -------- ------------- ------ ------- ------ ------ -----
Canga 5.7 1.54 48.99 8.49 10.16 0.637 0.21
------------------------------------ -------- ------------- ------ ------- ------ ------ -----
Sub-total 229.48 61.96 38.76 29.15 7.54 0.157 0.94
------------------------------------ -------- ------------- ------ ------- ------ ------ -----
Friable Altered
Inferred Itabirite 11.27 3.04 37.01 31.98 6.40 0.190 1.67
---------------- ------------------- -------- ------------- ------ ------- ------ ------ -----
Friable Itabirite 3.09 0.83 38.60 35.35 3.28 0.144 1.41
------------------------------------ -------- ------------- ------ ------- ------ ------ -----
Friable Haematite 0.53 0.14 50.06 21.36 2.88 0.094 0.85
------------------------------------ -------- ------------- ------ ------- ------ ------ -----
Colluvium 30.21 8.16 34.80 26.20 12.92 0.107 0.53
------------------------------------ -------- ------------- ------ ------- ------ ------ -----
Canga 1.66 0.45 47.19 11.60 9.98 0.381 0.27
------------------------------------ -------- ------------- ------ ------- ------ ------ -----
Sub-total 46.76 12.63 36.20 27.62 10.49 0.139 0.86
------------------------------------ -------- ------------- ------ ------- ------ ------ -----
TOTAL 276.24 74.58 38.33 28.89 8.04 0.154 0.93
-------- ------------- ------ ------- ------ ------ -----
Notes:
(1) The Mineral Resource is considered to have reasonable
prospects for eventual economic extraction based on an optimised
pit shell
(2) Cut-off grade of 25% Fe applied
(3) Tonnages are reported as wet tonnes
(4) Mineral Resources are not reserves until they have
demonstrated economic viability based on a Feasibility Study or
Pre-Feasibility Study
(5) The Mineral Resource Estimate has an effective date of 31
August 2022
(6) Mineral Resources have been classified in accordance with
the Australian Code for Reporting of Exploration Results. Mineral
Resources and Ore Reserves (JORC Code 2012)
(7) The attributable tonnes represent the part of the Mineral
Resource that will be attributable to Cadence Minerals' 27%
interest in the Project
(8) The operator is DEV
A 3D schematic model of the Amapá Mineral Resource Estimate is
available here
Prominas notes that the Mineral Resource has a reasonable
prospect for eventual economic extraction but is not currently
considered Ore Reserves. Ore Reserves are estimates of the tonnage
and grade or quality of material contained in a Mineral Resource
that can be economically mined and processed. To be considered an
Ore Reserve , modifying factors must be applied to the MRE as part
of the preparation of a Pre-Feasibility or Feasibility Study . The
estimated amount of saleable material contained in the final
product must demonstrate a positive net present value using an
appropriate discount rate and must demonstrate that eventual
extraction could be reasonably justified.
Prominas are not aware of any factors (environmental,
permitting, legal, title, taxation, socio-economic, marketing,
political, or other relevant factors) that have materially affected
the Mineral Resource Estimate. The data used for the MRE update
were drill hole databases with proper validations , topographic
surveys and the previous Mineral Resource models provided by DEV
with the work undertaken by Prominas , which included several site
visits during 2021.
As required per the JORC Code 2012. Table 1 needed for the
reporting of MREs is available here
Competent Person's Statement
The information that relates to Mineral Resources is based on
information compiled by Geraldo Majella, who is an associate of
Prominas and a Member of the Australian Institute of Geoscientists
(AIG). Geraldo Majella has sufficient relevant experience to the
style of mineralisation and type of deposit under consideration and
to the activity for which he is undertaking to qualify as a
Competent Person as defined in the JORC Code (2012). Geraldo
Majella consents to the inclusion in the announcement of the
matters based on their information in the form and context in which
it appears and confirms that this information is accurate and not
false or misleading.
Kiran Morzaria has also reviewed and approved the technical
information in his capacity as a qualified person under the AIM
Rules.
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.
Forward-Looking Statements
Certain statements in this announcement are or may be deemed to
be forward-looking statements. Forward-looking statements are
identi ed by their use of terms and phrases such as "believe"
"could" "should" "envisage" "estimate" "intend" "may" "plan" "will"
or the negative of those variations or comparable expressions
including references to assumptions. These forward-looking
statements are not based on historical facts but rather on the
Directors' current expectations and assumptions regarding the
Company's future growth results of operations performance , future
capital and other expenditures (including the amount, nature and
sources of funding thereof) competitive advantages business
prospects and opportunities. Such forward-looking statements re ect
the Directors' current beliefs and assumptions and are based on
information currently available to the Directors. Many factors
could cause actual results to differ materially from the results
discussed in the forward-looking statements including risks
associated with vulnerability to general economic and business
conditions competition environmental and other regulatory changes
actions by governmental authorities the availability of capital
markets reliance on key personnel uninsured and underinsured losses
and other factors many of which are beyond the control of the
Company. Although any forward-looking statements contained in this
announcement are based upon what the Directors believe to be
reasonable assumptions. The Company cannot assure investors that
actual results will be consistent with such forward-looking
statements.
Glossary
Al(2) O(3) Aluminium oxide is a chemical compound of
aluminium and oxygen .
Block model A three-dimensional electronic model in
which geological characteristics and qualities
are housed.
Canga An iron-rich rock formed where material
weathered from an original iron ore deposit
has been cemented by iron minerals.
Colluvium Loose. unconsolidated material that accumulates
above the weathering iron ore bodies.
Core A cylindrical section of a naturally occurring
substance. Most core samples are obtained
by drilling with special drills into the
substance, such as sediment or rock, with
a hollow steel tube, called a core drill
. The hole made for the core sample is called
the "core hole."
Cut-off grade The lowest grade of mineralised material
that qualifies as ore in a given deposit
or rock of the lowest assay included in
an ore estimate.
Drillhole A drill hole formed by the act or process
of drilling boreholes using bits as the
rock-cutting tool. The bits are rotated
by various types and sizes of mechanisms
motivated by steam, internal-combustion,
hydraulic, compressed air, or electric engines
or motors.
Fe Chemical symbol for iron. It is a metal
that belongs to the first transition series
and group 8 of the periodic table . It is
by mass the most common element on Earth
, right in front of oxygen (32.1% and 30.1%.
respectively), forming much of Earth's outer
and inner core . It is the fourth most common
element in the Earth's crust .
Feasibility This study is the most detailed and will
study determine definitively whether to proceed
with the Project. A detailed feasibility
study will be the basis for capital appropriation
and will provide the budget figures for
the Project. Detailed feasibility studies
require a significant amount of formal engineering
work, are accurate to within 10-15% and
can cost between 1/2 -1 1/2 % of the total
estimated project cost.
Itabirite Itabirite is a banded quartz hematite schist,
very similar to banded iron formation in
appearance and composition. Friable Itabirite
is extensively weathered leading to disaggregation
of the individual mineral grains comprising
the rock;
Haematite An iron oxide mineral with the chemical
formula Fe(2) O(3) ;
Grade Relative quantity or the percentage of ore
mineral or metal content in an ore body;
Indicated Mineral That part of a Mineral Resource for which
Resources 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 drillholes.
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;
Inferred Mineral That part of a Mineral Resource for which
Resources 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;
Interpolation Estimation of a statistical value from its
mathematical or graphical position intermediate
in a series of determined points;
Kt Thousand tonnes;
Lithologies The lithology of a rock unit is a description
of its physical characteristics visible
at outcrop , in hand or core samples , or
with low magnification microscopy. Physical
characteristics include colour, texture,
grain size, and composition;
Measured Mineral The part of a Mineral Resource for which
Resources tonnage , densities , shape , physical characteristics
, grade , and mineral content can be estimated
with a high level of confidence.
Mineral Reserves The economically mineable part of a Measured
and/or Indicated Mineral Resource. It includes
diluting materials and allowances for losses,
which may occur when the material is mined.
Appropriate assessments and studies have
been carried out and include consideration
of and modification by realistically assumed
mining , metallurgical , economic , marketing
, legal , environmental , social , and governmental
factors. These assessments demonstrate at
the time of reporting that extraction could
reasonably be justified. Ore Reserves are
subdivided in order of increasing confidence
into Probable Ore Reserves and Proved Ore
Reserves.
Mineral Resource A concentration or occurrence of material
of intrinsic economic interest in or on
the Earth's crust in such form , quality
, and quantity that there are reasonable
prospects for eventual economic extraction.
The location , quantity , grade , geological
characteristics , and continuity of a Mineral
Resource are known , estimated , or interpreted
from specific geological evidence and knowledge.
Mineral Resources are subdivided, in order
of increasing geological confidence into
Inferred , Indicated and Measured categories.
Mn Chemical symbol for Manganese. It has an
atomic number 25. It is not found as a free
element in nature; it is often found in
minerals in combination with iron .
Implicit modelling Implicit modelling is generated by computer
algorithms directly from a combination of
measured data and user interpretation. The
modelling requires a geologist's insight
, but this is made in the form of trends
, stratigraphic sequences , and other geologically
meaningful terms. This approach is faster
, more flexible , and fundamentally better
suited to modelling geology.
Modifying factors The term 'modifying factors' is defined
to include mining , metallurgical , economic
, marketing , legal , environmental , social
and governmental considerations.
Net present This is the difference between the present
value value of cash inflows and the present value
of cash outflows over a period of time.
NPV is used in capital budgeting and investment
planning to analyse the profitability of
a projected investment or Project.
Open pit An excavation or cut made at the surface
of the ground for the purpose of extracting
ore and which is open to the surface for
the duration of the mine's life
Ordinary kriging In the estimation of mineral resources by
geostatistical methods , the use of a weighted
moving-average approach both to account
for the estimated values of spatially distributed
variables, and to assess the probable error
associated with the estimates.
P The chemical symbol for Phosphorus with
atomic number 15.
Pit Optimisation A process whereby a series of optimised
shells for open pits are generated each
corresponding to a specific commodity price
assumption.
Pit shell A design of a open-pit obtained from the
process of open-pit optimisation
Pre Feasibility Is more detailed than a Scoping Study. A
study Prefeasibility study is used in determining
whether to proceed with a detailed feasibility
study and as a " reality check " to determine
areas within the Project that require more
attention. Pre-Feasibility stud ies are
done by factoring known unit costs and by
estimating gross dimensions or quantities
once conceptual or preliminary engineering
and mine design has been completed. Pre-Feasibility
studies have an accuracy within 20-30%.
Scoping study An order of magnitude study is an initial
financial appraisal of a mineral resource.
Depending on the size of the Project , an
order of magnitude study may be carried
out. It will involve a preliminary mine
plan and is the basis for determining whether
to proceed with more detailed engineering
work. Order-of-magnitude studies are developed
by copying plans and factoring known costs
from existing projects completed elsewhere
and are accurate to within 40-50%;
SiO(2) Silicon dioxide, also known as silica, is
an oxide of silicon most commonly found
in nature as quartz and in various living
organisms. In many parts of the world, silica
is the major constituent of sand .
Strike This is the direction of the line formed
by the intersection of a fault , bed, or
other planar feature and a horizontal plane.
Strike indicates the attitude or position
of linear structural features such as faults,
beds, joints, and folds.
t Tonnes
- Ends -
For further information:
Cadence Minerals plc +44 (0) 7879 584153
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD
& Broker) +44 (0) 207 220 1666
James Joyce
Darshan Patel
([1]) Cadence Minerals 2 November 2020 Update Mineral Resource
Estimate - Amapa Iron Ore, Available at
https://www.londonstockexchange.com/news-article/KDNC/updated-mineral-resource-estimate-amapa-iron-ore/14739627.
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