TechnicalReport-2016-AvnelGold1 - Final Avnel Gold Mining Limited as Operator of SOMIKA Project Number J2227 NI43-101 Technical Report on Kalana

TechnicalReport-2016-AvnelGold1 - Final Avnel Gold...

This preview shows page 1 out of 342 pages.

Unformatted text preview: Final Avnel Gold Mining Limited as Operator of SOMIKA Project Number J2227 NI43-101 Technical Report on Kalana Main Project Kalana, Mali Issued and Signature Date: 6 May 2016 Effective Date: 30 March 2016 Qualified Persons: Ivor Jones (Executive Consultant – Applied Geosciences) Allan Earl (Executive Consultant – Mining Engineering) Glenn Bezuidenhout (Principal Process Engineer) Sybrand van der Spuy (Civil Engineer) Guy Wiid (Principal Consultant – Tailings and Waste Rock Facilities) Stephanus (Fanie) Coetzee (Principal Consultant – Environmental and Social) Avnel Gold Mining Limited: NI43-101 Technical Report SNOWDEN OFFICE Johannesburg Technology House, Greenacres Office Park, Cnr. Victory and Rustenburg Roads, Victory Park Johannesburg 2195 SOUTH AFRICA PO Box 2613, Parklands 2121 SOUTH AFRICA Tel: +27 11 782 2379 Fax: +27 11 782 2396 Reg. No. 1998/023556/07 [email protected] Website This report was compiled as a National Instrument 43-101 Standards of Disclosure for Mineral Projects Technical Report for Avnel Gold Mining Limited (Avnel) and Société d’Exploitation des Mines d’Or de Kalana, S.A. (SOMIKA) by Snowden Mining Industry Consultants (Pty) Limited (Snowden) and Denny Jones (Pty) Limited (Denny Jones) and is a summary of the Kalana Gold Project 2016 Feasibility Study Report. Unless otherwise stated, information and data contained in this Technical Report or used in its preparation have been provided by the Qualified Persons shown in Table 2.1. The information, conclusions, and estimates contained herein are based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this report. The user of this document should ensure that this is the most recent Technical Report for the property as it is not valid if a new Technical Report has been issued. 2016 Snowden Mining Industry Consultants (Pty) Limited This document, as a collective work of content and the coordination, arrangement and any enhancement of said content, is protected by copyright vested in the authors. Final May 2016 Issued by: Johannesburg Office Doc ref: Avnel Gold NI43-101 Technical Report Page 2 of 323 Avnel Gold Mining Limited: NI43-101 Technical Report TABLE OF CONTENTS 1 SUMMARY.............................................................................................................. 18 1.1 Kalana Main Project location.............................................................................18 1.2 Project Exploitation Permit (the Permit)............................................................ 18 1.3 Issuer’s interest................................................................................................. 19 1.4 Project history....................................................................................................19 1.5 Summary of geology and mineralisation...........................................................19 1.6 Summary of exploration concept.......................................................................19 1.7 Data verification.................................................................................................20 1.8.1 1.8.2 1.8.3 21 22 22 23 1.9 The estimation of dilution..................................................................................24 1.10 Mineral Reserve estimate..................................................................................25 1.11 Development and operations............................................................................ 26 1.12 Mining................................................................................................................ 26 1.13 Metallurgy.......................................................................................................... 28 1.14.4 1.15 1.14 Infrastructure 28 1.14.1 Water supply 28 1.14.2 Electrical power supply 28 1.14.3 Stormwater management 29 Process plant and mining infrastructure................................................ 29 1.14.5 Sewerage treatment 29 1.14.6 Tailings storage facility (TSF) 29 1.14.7 Waste rock dump (WRD) 30 Environmental studies, permitting and social or community impact.................30 1.16.1 1.16.2 1.16.3 1.16.4 1.17.4 May 2016 1.16 Economic analysis Capital costs Operating costs All-in-sustaining cost (AISC) Sensitivity analysis 30 32 33 33 34 1.17 Conclusions 35 1.17.1 Mineral Resource 35 1.17.2 Mining and Mineral Reserve 35 1.17.3 Metallurgy 35 Environmental studies, permitting and social or community impact................................................................................................... 36 1.17.5 Economic analysis 36 1.18.1 1.18.2 Final 1.8 Mineral Resource Geological modelling Grade estimation Mineral Resource statement 1.18 Recommendations Geology and Resources Mining 36 36 36 Page 3 of 323 Avnel Gold Mining Limited: NI43-101 Technical Report 1.18.3 1.18.4 1.18.5 2 Metallurgy............................................................................................. 37 TSF and WRD...................................................................................... 37 Environmental, permitting social considerations................................... 38 INTRODUCTION..................................................................................................... 39 2.1 Primary source documents............................................................................... 42 2.2 Avnel Gold Mining Limited (Avnel).................................................................... 43 2.3 Kalana property................................................................................................. 43 2.4 Forward looking statements.............................................................................. 44 3 RELIANCE ON OTHER EXPERTS......................................................................... 45 4 PROPERTY DESCRIPTION AND LOCATION........................................................ 46 4.1 Area and location.............................................................................................. 46 4.2 Issuer’s interest................................................................................................. 46 4.3 Mineral tenure................................................................................................... 46 4.4.2 4.4.3 4.5 4.6 4.4 Agreements 48 4.4.1 Foundation agreement 49 SOMIKA’s Shareholders’ Agreement.................................................... 49 Operatorship Agreement and Mine Services Agreement...................... 50 4.4.4 Pledge 50 Location of property boundaries........................................................................51 Royalties, back-in rights, payments, agreements, encumbrances....................53 Mining rights in the Republic of Mali..................................................... 53 4.6.1 4.7 4.8 5 Environmental permitting...................................................................................54 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY........................................................................................... 55 5.1 Topography, elevation and vegetation...............................................................55 5.2 Access............................................................................................................... 55 5.3 Proximity to population centre and transport.....................................................55 5.4 Climate and length of operating season............................................................55 5.5 6 Local resources 56 HISTORY................................................................................................................. 57 6.1 Prior ownership and ownership changes..........................................................57 6.1.1 Avnel/IAMGOLD Corporation joint venture........................................... 58 6.2 Previous exploration and development work....................................................58 6.2.1 1967 to 1991......................................................................................... 58 6.2.2 1995 to 1996......................................................................................... 59 6.2.3 Or-Bagoé regional soil geochemistry survey........................................ 61 6.3.1 Final Environmental liabilities 54 May 2016 6.3 Historical estimates Reliability of historical estimates 61 61 Page 4 of 323 Avnel Gold Mining Limited: NI43-101 Technical Report 7 6.4.1 6.4.2 6.4 Production history 63 SOGEMORK (1985 to 1991)................................................................ 63 Avnel/SOMIKA (2004 to 2015).............................................................. 64 6.5.1 6.5.2 6.5.3 6.5 Mining reconciliation 64 SOGEMORK (1985 to 1991)................................................................ 64 SOMIKA (2004 to 2013)........................................................................ 64 Mine Call Factor (MCF)........................................................................ 65 GEOLOGICAL SETTING AND MINERALISATION................................................. 66 7.1 Regional geology...............................................................................................66 7.2 Property geology............................................................................................... 68 7.3 Geology of the Kalana deposit..........................................................................70 Mineralisation of the Kalana deposit..................................................... 71 7.3.2 Flat dipping veins 72 7.3.3 Steep dipping veins 74 7.3.4 Stockwork mineralisation 74 7.3.1 7.4 Geology of other prospects of interest.............................................................. 75 7.4.1 Prospect definition 75 7.4.2 Kalanako 77 7.4.3 Djirila 80 7.4.4 Dabaran 81 7.4.5 Solomania, Tonda and other prospects................................................ 82 8 DEPOSIT TYPES.................................................................................................... 85 9 EXPLORATION....................................................................................................... 86 9.1 Avnel/SOMIKA (2004 to 2009)..........................................................................86 9.1.1 Phase 1 (May to June 2004) 86 9.1.2 Phase 2 (October to December 2004).................................................. 88 9.1.3 Phase 3 (April 2005 to June 2005) 89 9.1.4 Phase 4 (November 2005 to May 2006)............................................... 89 9.2 IAMGOLD (2009 to 2013)................................................................................. 91 9.2.1 SGS laboratories 91 9.2.2 Processing of historical exploration data on the Kalana area...............91 9.2.3 Underground exploration at Kalana deposit.......................................... 92 9.2.4 Geophysical surveys............................................................................ 93 9.2.5 Regolith and artisanal workings............................................................ 96 9.2.6 Termite mound geochemical sampling................................................. 96 9.2.7 Energy dispersive x-ray fluorescence (ED-XRF)................................ 100 9.3 Avnel (2013 to 2015).......................................................................................100 Reinterpretation using the IAMGOLD data......................................... 101 Resampling of drill samples and re-assaying using a bulk leach method................................................................................................ 101 9.3.3 Regolith and artisanal workings.......................................................... 101 9.3.1 9.3.2 10 DRILLING.............................................................................................................. 103 10.1 Final Historical drilling.............................................................................................. 103 May 2016 Page 5 of 323 Avnel Gold Mining Limited: NI43-101 Technical Report 11 10.2 Drilling by Avnel/SOMIKA (2004 to 2009)....................................................... 103 10.2.1 Phase 3 drilling (April to June 2005)................................................... 104 10.2.2 Phase 4 drilling (November 2005 to May 2006).................................. 105 10.2.3 Additional drilling 107 10.3 Drilling by IAMGOLD (January 2010 to January 2013)...................................108 10.3.1 Kalana deposit 108 10.3.2 Others prospects drilled by IAMGOLD................................................ 110 10.3.3 Procedures 113 10.3.4 Auger drilling – tailings 114 10.3.5 Downhole geophysical logging 114 10.4 Drilling by Avnel/SOMIKA (2015).................................................................... 115 SAMPLE PREPARATION, ANALYSIS AND SECURITY........................................ 117 11.1 Soil and termite mound sampling....................................................................117 11.1.1 Avnel/SOMIKA (2004 to 2006)............................................................ 117 11.1.2 IAMGOLD (2009 to 2011)................................................................... 117 11.2 11.2.1 Underground sampling 118 IAMGOLD (2009 to 2012)................................................................... 118 11.3 Drill samples – Avnel/SOMIKA (2004 to 2008)................................................118 11.3.1 Phase 3 – Q2 June 2005.................................................................... 118 11.3.2 Phase 4 – November 2005 to May 2006............................................ 118 11.4 Drill samples – IAMGOLD (2009 to 2013).......................................................118 11.4.1 Diamond drilling (DD) core samples................................................... 119 11.4.2 Reverse circulation (RC) samples 119 11.5 Re-assay campaign by Avnel (2013 to 2015)................................................. 119 11.5.1 LeachWELL method (2 kg) 121 11.5.2 Sample selection 121 11.5.3 DD and RC drillhole LeachWELL 2 kg re-assay results......................122 11.5.4 Re-assay results overall dataset (2013 to 2015)................................ 124 11.6 Drill samples – Avnel (2015)........................................................................... 125 11.6.1 Diamond drilling (DD) core samples................................................... 125 11.6.2 Reverse circulation (RC) samples 125 11.7 Specific gravity (SG) and volumetric mass density data.................................125 11.8 Quality assurance/quality control (QA/QC).....................................................126 SONAREM and SOGEMORK (1967 to 1991).................................... 126 Ashanti-JCI (1995 to 1996)................................................................. 126 Avnel/SOMIKA (2003 to 2009)............................................................ 126 IAMGOLD (2009 to 2013)................................................................... 127 Avnel (2013 to 2015).......................................................................... 129 11.8.1 11.8.2 11.8.3 11.8.4 11.8.5 11.9.1 11.9.2 11.9.3 Final 11.9 QA/QC results Blank analysis Duplicate analysis CRM analysis 133 133 134 134 11.10 Interpretation of QA/QC results – Snowden (2014)........................................134 11.11 QP’s opinion on the adequacy of sample preparation, security, and May 2016 Page 6 of 323 Avnel Gold Mining Limited: NI43-101 Technical Report analytical procedures...................................................................................... 134 12 13 14 Final DATA VERIFICATION............................................................................................ 135 12.1 Verification by Snowden (2004)...................................................................... 135 12.2 Verification by IAMGOLD................................................................................ 135 12.2.1 Assay test sampling 135 12.2.2 Remedial assay program 136 12.2.3 Bulk leach extractable gold (BLEG) versus fire assay analyses.........136 12.2.4 Monitoring analytical quality control data............................................ 137 12.2.5 Verification by Belzile Solutions Inc 137 12.3 Verification by Snowden (2013 to 2014)......................................................... 138 12.3.1 Site visit 138 12.3.2 LeachWELL process 138 12.3.3 Analytical quality control data 138 12.4 Verification by Denny Jones (2015)................................................................139 12.4.1 Site visit 139 12.4.2 Audit of assay data – July 2015 139 12.5 QP’s opinion on the adequacy of the data for the purposes used in the Technical Report..............................................................................................140 MINERAL PROCESSING AND METALLURGICAL TESTING............................... 141 13.1 Previous metallurgical testwork.......................................................................141 13.1.1 MDS testwork (2004) 141 13.1.2 DRA comminution testwork (2014) 142 13.1.3 DRA leach and detox testwork (2014)................................................ 142 13.2 DRA testwork (2015) scope............................................................................ 143 13.3 DRA testwork (2015) samples.........................................................................144 13.4 DRA testwork (2015) results........................................................................... 147 13.4.1 Ore chemical analysis 147 13.4.2 Grinding circuit power and mill sizing................................................. 148 13.4.3 Abrasion index testing 148 13.4.4 Composite testwork: leach optimisation and detox............................. 148 13.4.5 High shear reactor pilot testing........................................................... 150 13.4.6 Leach circuit design............................................................................ 151 13.4.7 Detox testwork.................................................................................... 151 13.4.8 Settling testwork................................................................................. 152 13.4.9 Variability testwork.............................................................................. 152 13.4.10 Knelson gravity concentration and intensive leach testwork and modelling............................................................................................ 154 13.5 DRA testwork recovery estimate.....................................................................155 13.5.1 Plant recovery estimate 156 13.6 Metallurgical testwork conclusions and recommendations.............................158 MINERAL RESOURCE ESTIMATE....................................................................... 160 14.1 Disclosure........................................................................................................ 160 14.2 Known issues that materially affect Mineral Resources..................................160 May 2016 Page 7 of 323 Avnel Gold Mining Limited: NI43-101 Technical Report 14.3 14.4 Approach used for modelling..........................................................................160 Data provided for estimation........................................................................... 161 Assay data used for grade estimation................................................. 162 14.4.1 14.5 Adjustment of the topographic surface wireframe...........................................162 14.6 Geological interpretation and modelling..........................................................163 14.7 Compositing of assay intervals....................................................................... 165 14.7.1 Summary statistics 165 14.7.2 Higher grade values 167 14.8 167 14.8.2 14.9.1 Volumetric mass density an...
View Full Document

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture