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MINERAL COMMODITIES LTD — Capital/Financing Update 2018
Sep 5, 2018
65371_rns_2018-09-05_2834388f-f591-4608-8ffc-e05909b8b626.pdf
Capital/Financing Update
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MINERAL COMMODITIES LTD ABN 39 008 478 653 Email: [email protected] Web: www.mncom.com.au
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Australian Securities Exchange Company Announcements Office
06 September 2018
MUNGLINUP GRAPHITE PROJECT TESTWORK DELIVERS POSITIVE VARIABILITY RESULTS
HIGHLIGHTS
-
High grade concentrate (95.0% to 98.3%) produced in all variability tests, highlighting the reliability of the flowsheet selected in the PFS to consistently produce high Total Graphitic Carbon (“TGC”) grade concentrates
-
Concentrate flake size distribution aligns with geological modelling of the resource, with flake size increasing with depth and towards the granitic intrusion (including a significant increase in concentrate flake sizes for Halberts South pit)
-
Testwork results to be used to optimise the mining schedule and plant design with respect to blending strategy and desliming
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Geo-metallurgical model and re-optimisation of the mining schedule underway to further improve project economics through optimisation of the basket price
-
Further metallurgical testwork on optimisation of concentrate sizing and grades expected to be completed mid-September in advance of delivery of the feasibility study in December 2018
Mineral Commodities Ltd (ASX: MRC) (“the Company” or “MRC”) is pleased to announce the results of its Phase 2 Variability Testwork Program on the Munglinup Graphite Project.
A total of 20 diamond drill core samples have undergone size by assay analysis, with a subset of 15 samples taken through laboratory scale testwork at ALS using the standard flowsheet selected in the PFS[1] , in addition to 2 composite samples and a bulk near-surface sample. The samples were sourced from diamond drill core from the Halberts Main and Halberts South deposits.
Concentrate Grades
High-grade final concentrates were produced in all cases with a TGC content of 95.0% to 98.3% after 5 stages of cleaning by flotation (Figure 1). The results highlight that the flowsheet consistently produces high-grade concentrates from feed grades ranging from 6.3% to 36.6% TGC. The potential to further optimise the flowsheet is currently under evaluation.
1 Refer ASX Release, “MRC Munglinup Graphite PFS Confirms Robust Project” dated 30 May 2018
39 – 43 Murray Road North WELSHPOOL Western Australia 6106 PO Box 235 WELSHPOOL DC WA 6986
Telephone: +61 8 6253 1100 Fax: +61 8 9258 3601 Email: [email protected]
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MINERAL COMMODITIES LTD
ABN 39 008 478 653 Email: [email protected] Web: www.mncom.com.au
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Figure 1 - TGC grade at each stage
Flake Size Distribution
The concentrates’ flake size distribution increases with depth down hole (Figure 2) and there is a significantly higher proportion of +150µm material in the concentrates produced from the Halberts South samples. The PFS economics were based on the concentrate containing an average of 37.4% of product coarser than 150µm. Analysis of the flotation concentrates for the variability testwork shows that this is a reasonable assessment though probably conservative. The concentrate sizing increases with depth and location, with ore from Halberts South producing significantly coarser concentrate. This aligns with MRC’s geological modelling which predicts coarser flakes at depth and closer to the heat source – in this case an interpreted granite intrusion to the southeast.
A new master composite formed from ore from Halberts South and the southern part of Halberts Main has circa 44% of the concentrate in the +150µm fraction. By comparison, the Halberts South concentrates have 45% to 76.5% of the concentrate in the +150µm fraction (Figure 2).
39 – 43 Murray Road North WELSHPOOL Western Australia 6106 PO Box 235 WELSHPOOL DC WA 6986
Telephone: +61 8 6253 1100 Fax: +61 8 9258 3601 Email: [email protected]
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MINERAL COMMODITIES LTD
ABN 39 008 478 653 Email: [email protected] Web: www.mncom.com.au
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Figure 2 - Percentage of concentrate in +150µm fraction as a function of hole depth. Holes GAMD002, GAMD008, GAMD018, GAMD022, and GHD-002 are from Halberts Main.
The improved understanding of the concentrates’ flake size distribution allows for optimising the mining schedule to bring forward the production of coarse concentrates through prioritizing mining of Halberts South and potentially the southern half of Halberts Main. Infill drilling between Halberts Main and Halberts South provides additional value-enhancing potential. Effectively, this will allow for optimising the basket price achieved for Munglinup concentrate.
Grade-Recovery Curves
The grade-recovery curves for the samples tested to date (Figure 3) highlight four groups of results:
-
well-performing graphitic gneiss ore with TGC recoveries of 88% to 97.4%;
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ironstone-rich ore with recoveries of 73.8% to 76.4% (Comps 12, 13, 17);
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near surface ore with recoveries of 62.6% to 71.3%, (Comp 1, Near Surface Pilot Sample); and
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very high-grade ores with recoveries of 56% to 83.7% (Comp 2, Comp 5 and Near Surface Pilot Plant).
39 – 43 Murray Road North WELSHPOOL Western Australia 6106 PO Box 235 WELSHPOOL DC WA 6986
Telephone: +61 8 6253 1100 Fax: +61 8 9258 3601 Email: [email protected]
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MINERAL COMMODITIES LTD
ABN 39 008 478 653 Email: [email protected] Web: www.mncom.com.au
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----- Start of picture text -----
High grade samples
Ironstone
Near surface
samples
samples
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Figure 3 - Grade-Recovery curves for Munglinup ores
All variability tests produced high-grade concentrates as discussed above. The majority of the samples achieved a TGC recovery of more than 88%.
The ironstone-rich ore samples are susceptible to losses to rougher tails but behave as per conventional graphitic gneiss ores after the rougher concentrate is reground. The recovery losses are due to poorly liberated composites that are lost to rougher flotation tails. Additional testwork shows that it is possible to improve recoveries on these ores by around 13% (absolute) through regrinding the rougher tails followed by scavenger flotation. However, the ironstone content is roughly 11% in Halberts Main, and consequently the additional capital for rougher tails regrind and scavenger flotation may be difficult to justify. Instead, MRC will look to manage areas of high ironstone content through a separate stockpiling and a blending strategy as its preferred option, with a rougher regrind and scavenger circuit as an alternative.
The key driver of the poor recoveries for the near surface ores are losses of circa 20% to the deslime circuit prior to the rougher flotation. Desliming was required in the original master composite testwork to reduce reagent consumption and improve concentrate quality. The near surface ore has a significantly higher fines content (including graphitic fines) due to weathering. The proportion of near surface ore in the plant feed will be controlled through blending.
The highest-grade samples under-performed with respect to recoveries relative to other samples, with significant losses to the deslime circuit and to the flotation tails. A blending strategy will be used to control the feed grade to the flotation plant and ensure sufficient residence times in the flotation cells to maximize recoveries. In addition, by-passing the deslime circuit on blended ore will be tested to improve recoveries.
Telephone: +61 8 6253 1100 Fax: +61 8 9258 3601 Email: [email protected]
39 – 43 Murray Road North WELSHPOOL Western Australia 6106 PO Box 235 WELSHPOOL DC WA 6986
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MINERAL COMMODITIES LTD ABN 39 008 478 653 Email: [email protected] Web: www.mncom.com.au
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Composites Samples & Blending
The PFS Master Composite produced a high-grade concentrate (95.5% TGC) at good recoveries (89%). The Master Composite sample contained 18% ironstone ore in the feed– significantly higher than the 11% average expected for Halberts Main. Near surface ore (<12m depth) constituted circa 9% of the sample. The concentrate produced had 37.4% of the material in the +150µm fraction.
The ‘New Master Composite’ sourced from recent drilling in the southern half of Halberts Main and Halberts South shows that desliming is not necessarily required to produce a high-grade concentrate (95.6% TGC). Higher recoveries are achievable in the range of 85% to 94% without desliming. Approximately 56% of the sample was from Halberts South. Near surface material constituted 18% of the feed. The concentrate produced had 44% of the material in the +150µm fraction – a significant increase over the PFS Composite.
The results from the tests on the composites show that a blending strategy is effective in reducing adverse impacts of near-surface (highly weathered) ores and ironstone rich ore types.
Summary
The Phase 2 Metallurgical testwork program has shown that:
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the Munglinup flowsheet is resilient with respect to concentrate grades;
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has identified blending as the preferred strategy for addressing different ore types; and
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highlighted opportunities for further improvements on project economics through optimising the mining schedule to produce coarser concentrates.
Testwork is continuing to generate additional marketing samples and investigate the potential for further improvements in concentrate flake size distributions and grades.
MRC’s Executive Chairman Mark Caruso commented, “ These results highlight the robustness of the Munglinup Graphite Project, with no fatal flaws identified. This Tier 1 project continues to meet and then exceed our expectations, and we expect further economic upside from optimising the mining schedule. We are on schedule to deliver the feasibility study at the end of this year – just 15 months following acquisition of this greenfields project at the end of 2017.”
- ENDS -
39 – 43 Murray Road North WELSHPOOL Western Australia 6106 PO Box 235 WELSHPOOL DC WA 6986
Telephone: +61 8 6253 1100 Fax: +61 8 9258 3601 Email: [email protected]
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MINERAL COMMODITIES LTD ABN 39 008 478 653 Email: [email protected] Web: www.mncom.com.au
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For enquires regarding this release please contact:
Phil Retter: Manager – Investor Relations & Corporate Affairs
T: +61 8 6253 1100 | D: +61 8 6253 1152 | M +61 407 440 882
About Mineral Commodities Ltd:
Mineral Commodities Ltd (ASX: MRC) is a global exploration and mining company with a primary focus on the development of high-grade mineral deposits within the industrial minerals, base metals, bulk commodities and precious metals sectors.
The Company is a leading producer of zircon, rutile, garnet and ilmenite concentrates through its Mineral Sands Operation at Tormin, located on the west coast of South Africa. The planned development of the Munglinup Graphite Project, located near Esperance in Western Australia, is consistent with the Company’s strategy to capitalise on the fast growing sustainable renewable energy storage and electric vehicle revolution as well as downstream vertically integrated value-adding.
The Company has also secured first-mover advantage in Iran, considered the most prospective and underdeveloped mineral resource country in the world, and has also entered into agreements and applied for tenements over a number of prospective areas in Western Australia targeting vanadium, lithium, channel iron ore and gold/copper.
39 – 43 Murray Road North WELSHPOOL Western Australia 6106 PO Box 235 WELSHPOOL DC WA 6986
Telephone: +61 8 6253 1100 Fax: +61 8 9258 3601
Email: [email protected]
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MINERAL COMMODITIES LTD ABN 39 008 478 653 Email: [email protected] Web: www.mncom.com.au
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Competent Persons Attributions
Exploration Results
The information in this report that relates to Exploration Results, is based on information compiled by Mr Daniel Hastings, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Mr Hastings is an employee of Hastings Bell Pty Ltd and a consultant to the Company. Mr Hastings has sufficient experience relevant to the type of deposit under consideration to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012 Edition). Mr Hastings consents to the inclusion in the report of the matters based on the reviewed information in the form and context in which it appears.
Metallurgical Testwork
The variability metallurgical testwork was managed by Mr David Pass of Battery Limits. Mr Pass has sufficient experience that is relevant to the style of mineralisation and types of testwork under consideration and to the activity being undertaken 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 Pass is a Member of The Australasian Institute of Mining and Metallurgy and is employed by Battery Limits, an Australian based consultancy specialising in processing of graphite concentrates. Mr Pass consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
39 – 43 Murray Road North WELSHPOOL Western Australia 6106 PO Box 235 WELSHPOOL DC WA 6986
Telephone: +61 8 6253 1100 Fax: +61 8 9258 3601 Email: [email protected]
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MINERAL COMMODITIES LTD ABN 39 008 478 653 Email: [email protected] Web: www.mncom.com.au
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Variability Testwork Sample Data & Locations
The samples used in the variability testwork were sourced from various depths from six diamond drill holes in Halberts Main (Figure 4) and two diamond drill holes in Halberts South (Figure 5).
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Figure 4 - Location of drill holes at Halberts Main used to produce the metallurgical variability samples and showing the proposed pit optimisation outline.
Telephone: +61 8 6253 1100 Fax: +61 8 9258 3601 Email: [email protected]
39 – 43 Murray Road North WELSHPOOL Western Australia 6106 PO Box 235 WELSHPOOL DC WA 6986
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MINERAL COMMODITIES LTD
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ABN 39 008 478 653 Email: [email protected] Web: www.mncom.com.au
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Figure 5 - Location of drill holes at Halberts South used to produce the metallurgical variability samples and showing the proposed pit optimisation outline.
39 – 43 Murray Road North WELSHPOOL Western Australia 6106 PO Box 235 WELSHPOOL DC WA 6986
Telephone: +61 8 6253 1100 Fax: +61 8 9258 3601 Email: [email protected]
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MINERAL COMMODITIES LTD ABN 39 008 478 653 Email: [email protected] Web: www.mncom.com.au
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Munglinup Graphite Project (JORC Code, 2012 Edition – Table 1 report)
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
| Criteria | Commentary | |
|---|---|---|
| Sampling | | The historical resource database consists of 161 air core holes and 38 |
| techniques | diamond holes representing 6612m of drilling and 2738 analyzed drill | |
| samples. | ||
| | Air core (undertaken by Graphite Australia) ore zone intervals were sampled | |
| every meter using a scoop spear and the material bagged and numbered. | ||
| Waste was not sampled except for a small buffer either side of the | ||
| mineralisation. | ||
| | Diamond drilling (undertaken by Graphite Australia) ore zone intervals were | |
| sampled every meter except for ore boundaries where longer or shorter | ||
| interval was taken. Waste was not sampled except for a small buffer either | ||
| side of the mineralisation. | ||
| | The drill results are from Reverse Circulation (RC) drilling carried out during | |
| March 2018. | ||
| | One meter samples were collected from the drill cyclone and splitter into | |
| calico bags and the reject into plastic bags. | ||
| | Diamond core (PQ and HQ3) was cut into quarter core for assay at the MRC | |
| Welshpool office using a diamond impregnated blade on a core saw. Quarter | ||
| core samples were generally 1 metre in length and honored geological | ||
| contacts. | ||
| Drilling | | Diamond drilling was done using HQ and PQ triple tube. |
| techniques | | The mineralisation occurs from surface and drilling was done to a maximum |
| of 80m depth. | ||
| Drill sample | | No continuous data was recorded on air core or chip recovery. Only poor |
| recovery | sample quality and recovery was recorded for air core. | |
| | Due to the style of the deposit it is considered that any material loss is not | |
| significant to the estimation of mineralisation. | ||
| | Generally, drill core recovery was above 95%. Core recovery was measured | |
| and compared directly with drill depths to determine sample recoveries. | ||
| | Diamond core was reconstructed into continuous runs on an angle iron | |
| cradle for orientation marking however given the weathered nature of the | ||
| core, no drill sections could be reconstructed with confidence. | ||
| | Depths were checked against the depth given on the core blocks and rod | |
| counts were routinelycarried out bythe drillers. | ||
| Logging | | The historical resource database consists of 161 air core holes and 38 |
| diamond holes representing 6604m of drilling that were initially logged by | ||
| onsite geologists. Historical diamond core was relogged and resampled in | ||
| 2016. | ||
| | The data and results obtained from the 2012-2013 (Graphite Australia) | |
| drilling campaign were compared with the new logging and lab results from | ||
| 2016 (AEMCO) as well as the historical logging and grades from the 1986 | ||
| diamond holes by Sons of Gwalia. The two datasets were correlated to an | ||
| acceptable level. |
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Telephone: +61 8 6253 1100 Fax: +61 8 9258 3601 Email: [email protected]
PO Box 235 WELSHPOOL DC WA 6986
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| Criteria | Commentary | |
|---|---|---|
| | A comprehensive logging system was developed and included alteration | |
| (type, style and intensity), grain size, rock type / lithology, colour, minerals, | ||
| textures, fabric, parent rock (where fresh), sedimentary setting and, graphite | ||
| class and grade. | ||
| | 8 new diamond holes were drilled in the phase 1, 2018 drilling program and | |
| were logged in full using the comprehensive logging system previously | ||
| developed. | ||
| | Geotechnical aspects in the form of RQD parameters were also recorded for | |
| the diamond core as well as specific structures and details in this regard e.g. | ||
| alpha angles. | ||
| Sub-sampling | | Air core was sampled using a scoop spear. |
| techniques | | Diamond core was cut by a diamond impregnated blade core saw and half |
| and sample | core sampled. Re-sampling of the remaining core in 2016 for data validation | |
| preparation | purposes (422 core samples including 26 duplicates and 19 repeat samples) | |
| used quarter core. | ||
| | Duplicates (quarter core) were taken every 20 meters. | |
| | New diamond core (PQ and HQ3) was cut into quarter core onsite using a | |
| diamond impregnated blade on a core saw. Quarter core samples generally | ||
| 1 metre or less in core length are submitted to the lab labelled with a single | ||
| sample name. Samples are generally defined according to geological unit | ||
| boundaries. | ||
| | The drill sample sizes are considered to be appropriate to correctly represent | |
| mineralisation at Munglinup based on the style of mineralisation, the | ||
| thickness and consistency of the intersections, the sampling methodology | ||
| and anticipatedgraphitepercent value ranges. | ||
| Quality of | | Standards were inserted every 20 meters. No blanks were used in addition |
| assay data | to normal laboratory QAQC protocols. | |
| and | | Sample analysis was undertaken by Nagrom in Perth for the Graphite |
| laboratory | Australia samples. | |
| tests | | Sample analysis was undertaken by ALS Geochemistry for the phase 1, 2018 |
| MRC drilling program in Perth. | ||
| | The graphite content is reported as Total Graphitic Carbon (TGC). Prepared | |
| samples were dissolved in HCl over heat until all carbonate material is | ||
| removed. The residue is then heated to drive off organic content. The final | ||
| residue is combusted in oxygen with a Carbon-Sulphur Analyser and | ||
| analysed for Total Graphitic Carbon (TGC). | ||
| | Sample analysis was undertaken by Analabs in Perth for the Gwalia Minerals | |
| NL samples. Two methods were used. | ||
oFixed carbon (>40%C) – C graphite is determined as an expression of |
||
| fixed carbon which is calculated by subtracting the sum of the | ||
| percentages of moisture in the sample, volatile matter and ash from | ||
| 100 (BS1016 methodology) | ||
oFixed carbon (<40%C) - the sample is washed with organic solvents, |
||
| filtered and washed with NaOH solution, the sample is then attacked | ||
| with hot 1:1 HCL to remove carbonates, washed and dried at 105oC, | ||
| the residue is analysed for carbon by converting the carbon to CO2 | ||
| in a Leco furnace and measuringbyinfra-red. |
39 – 43 Murray Road North WELSHPOOL Western Australia 6106
Telephone: +61 8 6253 1100 Fax: +61 8 9258 3601
Email: [email protected]
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| Criteria | Commentary | |
|---|---|---|
| | Eleven check samples (pulps) from Analabs were sent to Classic Laboratories | |
| for cross checks. Classic Laboratories washed the samples with dilute HCL to | ||
| remove carbonates, ash at 450oC to remove organic carbon and assay by | ||
| Leco furnace for the remaining fixed carbon / C graphite. Check assays >10% | ||
| fixed carbon were all within ±10% of the original Analabs assay. Analabs | ||
| assays within the range 5% -10% fixed carbon were approximately 15% | ||
| lower than Classics check assays. | ||
| Verification of | |
Four twin holes were drilled by Graphite Australia near (8-14m) the historical |
| sampling and | diamond holes by Sons of Gwalia. | |
| assaying | | The historical database containing drilling data and results was provided by |
| Graphite Australia. A review of the data was done by the project field | ||
| geologist Mr. Luke Forti and the accuracy of the data was discussed with him | ||
| during a number of meetings with AEMCO during 2015. Confirmation on | ||
| the integrity and accuracy of the data was provided. | ||
| | A visual review of the diamond core was then done by AEMCO in 2016 to | |
| confirm the historical logging by Graphite Australia. Any outstanding | ||
| information was recovered from the diamond core and updated geological | ||
| logs were created. | ||
| | Diamond core was relogged and resampled in 2016. 422 Core samples were | |
| re-analyzed by Nagrom during April 2016, including 26 duplicate and 19 | ||
| repeat samples to confirm grade results. GGC01, GGC08 & GGC09 standards | ||
| were used. | ||
| | The data and results obtained from the 2012-2013 (Graphite Australia) | |
| drilling campaign were compared with the new logging and lab results from | ||
| 2016 (AEMCO) as well as the historical logging and grades from the 1986 | ||
| diamond holes by Sons of Gwalia. Any discrepancies or errors were either | ||
| corrected or the results rejected. | ||
| | The geological logging of all drill core was undertaken by trained geological | |
| staff at the MRC offices in Welshpool, WA. | ||
| | Sample information is recorded at the time of sampling in electronic and | |
| hard copy. | ||
| | Mr. Chris de Vitry of Manna Hill Geoconsulting visually verified geological | |
| observations of some of the reported Diamond drill holes at Halberts Main | ||
| and Halberts South. He also toured site after the conclusion of the drill | ||
| program. | ||
| Location of | | All historical exploration drill hole collars were re-surveyed to 0.05m accuracy |
| data points | by Esperance Surveys in July 2016. In total 90% (179 holes) were re-surveyed | |
| to confirm location integrity. Average variation from the original field survey | ||
| in all directions was less than 2m. Air core holes were down hole surveyed at | ||
| the end of the hole only. Diamond drill holes were surveyed at 30m depth | ||
| and the end of hole. | ||
| | Local grids were established at each of the prospects then later converted to | |
| GDA94. Hole collars were surveyed by GPS. | ||
| | Phase 1, 2018 drill holes have been surveyed by hand-held GPS only at this | |
| stage. The RL values were derived by fitting the collars to a LIDAR | ||
| topographic surface. |
39 – 43 Murray Road North WELSHPOOL Western Australia 6106
Telephone: +61 8 6253 1100 Fax: +61 8 9258 3601 Email: [email protected]
PO Box 235 WELSHPOOL DC WA 6986
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MINERAL COMMODITIES LTD ABN 39 008 478 653 Email: [email protected] Web: www.mncom.com.au
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| Criteria | Commentary | |
|---|---|---|
| | The dip and azimuth of some of the diamond holes were measured at the | |
| collar only by the supervising geologist given the very short depths of the | ||
| drill holes. | ||
| Data spacing | | Drill spacing: |
| and | oHalberts Main Zone: (Drill Grid 50 x 20m). |
|
| distribution | oHalberts South Zone: (Drill Grid 40 x 20 & 40 x 10 infill) |
|
oHarris Area: (Drill Grid 40 x 20m) |
||
oMcCarthy West Area: (Drill Grid 40 x 20) |
||
oMcCarthyEast Area:(Drill Grid 40 x 10) |
||
| Orientation of | |
The deposits were drilled at approximately -60° to intersect the mineralised |
| data in | zoned approximately orthogonal to the interpreted dip and strike of the | |
| relation to | geological units. | |
| geological | | The interpreted mineralised zones correlated extremely well with historical |
| structure | interpretations done by Sons of Gwalia in the 1980’s and 1990’s and high | |
| degree of confidence in the orientation and zoning of the graphite | ||
| mineralisation is noted. | ||
| Sample | | Graphite Australia followed a disciplined QA/QC process as is evident from |
| security | their database and chain of command documents. | |
| | AEMCO followed the same procedure and personally took all resampled | |
| material to Nagrom and ALS. AECOM also recovered the processed sample | ||
| material for storage with the remaining core and air core samples at a | ||
| secured location in Welshpool, WA. | ||
| | Recent drilling samples have been retained at ALS. Residual core samples | |
| are stored at the MRC offices in Welshpool,WA. | ||
| Audits or | | An audit was conducted by Coffey Mining Pty Ltd in 2011 prior to the |
| reviews | additional drilling undertaken by Graphite Australia. The review stated: | |
| “Resources and reserves are assessed to be non-JORC compliant, given the | ||
| age and the lack of available core. However, given the level of | ||
| documentation provided, and the extent to which an auditable trail exists in | ||
| relation to the modelled resources and reserves, the metrics presented are | ||
| credible and serve as basis for project decision making.” | ||
| | The 2012-2013 exploration work done by Graphite Australia during was | |
| reviewed and completed by AEMCO in 2015 and 2016 and from this review a | ||
| maiden JORC 2012 resource was determined. | ||
| | The recent 2018 drilling program data has been reviewed by Mr. Chris de | |
| Vitry of Manna Hill Geoconsulting. The review indicated that the procedures | ||
| were satisfactory and fit for purpose, and that the assays reported to date | ||
| were acceptable. |
39 – 43 Murray Road North WELSHPOOL Western Australia 6106 PO Box 235 WELSHPOOL DC WA 6986
Telephone: +61 8 6253 1100 Fax: +61 8 9258 3601
Email: [email protected]
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MINERAL COMMODITIES LTD ABN 39 008 478 653 Email: [email protected] Web: www.mncom.com.au
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Section 2 Reporting of Metallurgical Results
(Criteria listed in the preceding section also apply to this section.)
| Criteria | Commentary | Commentary |
|---|---|---|
| Mineral tenement | | The tenements (M74/75 & E74/505) are situated on the Ravensthorpe SI |
| and land tenure | 51-5 and North-Over 3031, 1:250,000 and 1:100,000 geological sheets | |
| status | respectively. | |
| | Mining Lease 74/245 was granted on the 26 August 2010 for a term of 21 | |
| years. The Lease is 685 hectares in area. | ||
| | Exploration License 74/505 of 2 block size was granted on 23 October | |
| 2012 for a period of 5 years. | ||
| | Gold Terrace Pty Ltd are the current registered owners of the Munglinup | |
| Mining Lease (M74/245) and Exploration License E74/505. | ||
| | There is a caveat on the tenements relating to a 2% gross royalty liability | |
| with Adelaide Prospecting as the beneficiary. | ||
| | The fully granted mining lease is valid to August 2031. | |
| | The tenements are located in a fully gazetted mining reserve, with no | |
| native title orprivate land ownershipissues. | ||
| Metallurgical work | |
Significant previous metallurgical testwork has been undertaken. Early |
| done by other | tests achieved an average of 85% C in con at 95% recovery, with rougher | |
| parties | float followed by 5 stages of cleaning on mixed (un-sized) ore. Later tests | |
| focused just on rougher flotation in +300micron, and +150/-300micron | ||
| size ranges. Excellent recoveries of +150micron material (~98%) at | ||
| relatively low con grades (~60%C) was seen. Reasonable recoveries of | ||
| +300micron material was seen at higher cons grades. These tests | ||
| however left significant graphite in the oversize/undersize and artificially | ||
| inflated the graphite grade in target size ranges to more than 30%. | ||
| | Overall, more than 20 specific metallurgical studies were undertaken on | |
| the Munglinup Graphite mineralisation, predominantly in the late 1980’s | ||
| and early 1990’s. This testwork culminated in the release of a Feasibility | ||
| Study by Gwalia Minerals in 1991. | ||
| | In 2011, Graphite Australia commissioned Nagrom to undertake various | |
| metallurgical tests on a 2t bulk sample. As a result of this testwork, a | ||
| conceptual flowsheet was developed based on a beneficiation circuit with | ||
| unit operations that are conventional and well proven in the industry. A | ||
| circuit comprising feeder and trommel, desliming, classification, gravity, | ||
| milling, flotation, drying, screening and bagging was considered. This | ||
| forms the base case for this study. This flowsheet and historical data was | ||
| reviewed by Battery Limits and deemed reasonable however further | ||
| optimisation is possible and additional metallurgical testwork has been | ||
| undertaken to address this. | ||
| | No specific allowances have been made for deleterious elements. Any | |
| non-graphite material that reports to the graphite concentrate is deemed | ||
| to be dilutionary in nature only and does not attract any specific penalties | ||
| beyond the reduction in concentrate price based on the graphite | ||
| concentrate purity as is standard in the industry. This was confirmed by | ||
| the recent metallurgical testwork reported in company announcement 8th | ||
| Feb 2018. |
39 – 43 Murray Road North WELSHPOOL Western Australia 6106
Telephone: +61 8 6253 1100 Fax: +61 8 9258 3601
Email: [email protected]
PO Box 235 WELSHPOOL DC WA 6986
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MINERAL COMMODITIES LTD ABN 39 008 478 653 Email: [email protected] Web: www.mncom.com.au
==> picture [147 x 58] intentionally omitted <==
| Criteria | Commentary | Commentary |
|---|---|---|
| | An 8t bulk sample was extracted from the Halberts Main deposit to be | |
| used for metallurgical test work undertaken by Nagrom in 2011. This | ||
| sample does include material from the three mineralisation types. The | ||
| sample has ultimately been deemed only partially representative as it does | ||
| not include material from depth. Recent metallurgical testwork utilised a | ||
| master composite derived from historical drilling core and that has been | ||
| selected to provide high representivity of the deposit. | ||
| | Both historical and recent work have been done on the mineralogy of the | |
| deposit. The latest petrographical study was conducted on 12 samples | ||
| from drill core that are representative of the deposit. The petrographical | ||
| nature of the graphite mineralisation at Munglinup is well understood and | ||
| shows that the final product will be able to meet the required | ||
| specifications mineralogically. | ||
| Geology | | The Munglinup area comprises Archean to Paleoproterozoic, |
| metamorphosed granitic and other metamorphic rocks of the Albany– | ||
| Fraser Orogen, typically hornblende (± garnet) gneiss and migmatite. | ||
| | Within the gneissic rock mass, rocks containing the Munglinup graphite | |
| deposits consist of a succession of tightly folded metasedimentary rocks | ||
| with a consistent dip to the southeast. | ||
| | The classification scheme most widely accepted for graphite deposits was | |
| introduced by Cameron (1960). It classifies known graphite deposits into | ||
| five categories reflecting the different types of graphite. | ||
| | Using this classification scheme, it is most likely that the Munglinup | |
| deposit can be characterized as a type 1, disseminated flake graphite in | ||
| silica-rich meta-sediments deposit. | ||
| Drill hole | | This information is included in previous Company Announcements |
| Information | including those release on 11/09/2017, 13/09/2017 and 08/02/2018. | |
| | The coordinates for the holes used in the metallurgical testwork have been | |
| previously reported as stated in the bullet point above and 2018 diamond | ||
| drill holes are tabulated below. | ||
| Data aggregation | | No cut-off grades were applied to exploration data. |
| methods | | The master composite that was produced for the metallurgical testwork |
| was representative of the modelled orebody in that the grade distribution | ||
| and material types matched the overall mineralisation modelled. |
39 – 43 Murray Road North WELSHPOOL Western Australia 6106 PO Box 235 WELSHPOOL DC WA 6986
Telephone: +61 8 6253 1100 Fax: +61 8 9258 3601
Email: [email protected]
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MINERAL COMMODITIES LTD
ABN 39 008 478 653 Email: [email protected] Web: www.mncom.com.au
==> picture [147 x 58] intentionally omitted <==
| Criteria | Commentary | Commentary |
|---|---|---|
| Relationship | | Inclined air core and diamond drilling (HQ3) was done to try and intersect |
| between | the different graphite zones as close to true width as possible. The | |
| mineralisation | intercept widths are nevertheless apparent (down-hole) and do not | |
| widths and | represent true width. Average dip angle was 60°. | |
| intercept lengths | ||
| Diagrams | | Drill hole collar location plans and sections given in previous Company |
| Announcements including those release on 11/09/2017, 13/09/2017 and | ||
| 08/02/2018. Drillhole locations for the variability samples are provided in | ||
| this release. | ||
| Sample | | Twenty samples were selected from diamond drill cores from lithologically |
| preparation and | continuous graphitic sections of holes in Halberts Main (GAMD002, | |
| processing | GAMD008, GAMD010, GAMD018, GAMD022 and GHD002) and Halberts | |
| methods applied | South (GHD004 and MHD001). | |
| | The sample size was dependent on the continuity of the section and | |
| ranged from 1.6kg to 14.0kg | ||
| | The samples were crushed to minus 3.35mm and assayed. The crushed | |
| samples were also sized, and each size fraction assayed for Total Carbon | ||
| (TC), Total Graphitic Carbon (TGC), SiO2 and S. | ||
| | For the flotation tests, a 1kg sub-sample was stage ground in a rod mill to | |
| 100% passing 1mm. The feed material was deslimed at 25 microns and | ||
| then processed using a standard flotation flow sheet comprising rougher | ||
| flotation, followed by five stages of cleaning with regrind prior to each | ||
| stage of cleaner flotation. | ||
| | The concentrates produced were assayed for Total Carbon, Total Graphitic | |
| Carbon(TGC),SiO2,S and Al,Ca,Mg,and Fe. |
39 – 43 Murray Road North WELSHPOOL Western Australia 6106 PO Box 235 WELSHPOOL DC WA 6986
Telephone: +61 8 6253 1100 Fax: +61 8 9258 3601 Email: [email protected]
Page 16
MINERAL COMMODITIES LTD ABN 39 008 478 653 Email: [email protected] Web: www.mncom.com.au
==> picture [147 x 58] intentionally omitted <==
List of Diamond Drill Holes drilled at Munglinup during Phase 1, 2018 Drilling Program
| Prospect | Hole_ID | Hole Type | NAT_GRID_ID | NAT_EAST | NAT_NORTH | Elevation | Survey_Method | Azimuth | Dip | Max_Depth | Drilling_Company |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Halberts Main | GDH001 | HQ3 | GDA94-MGA Zone 51 | 0301528 | 6273008 | 106 | GPS | 258 | 65 | 80 | OnQExploration |
| Halberts Main | GDH002 | PQ3 | GDA94-MGA Zone 51 | 0301568 | 6272723 | 97 | GPS | 250 | 70 | 48 | OnQExploration |
| Halberts Main | GDH003 | HQ3 | GDA94-MGA Zone 51 | 0301655 | 6272842 | 99 | GPS | 85 | 68 | 50 | OnQExploration |
| Halberts South | GDH004 | PQ3 | GDA94-MGA Zone 51 | 0301847 | 6271363 | 83 | GPS | 245 | 75 | 41 | OnQExploration |
| Halberts South | GDH005 | PQ3 | GDA94-MGA Zone 51 | 0301901 | 6271363 | 85 | GPS | 55 | 68 | 43 | OnQExploration |
| Halberts South | MDH001 | PQ3 | GDA94-MGA Zone 51 | 0301888 | 6271304 | 84 | GPS | 18 | 63 | 56 | OnQExploration |
| Halberts Main | MDH002 | PQ3 | GDA94-MGA Zone 52 | 0301646 | 6272593 | 92 | GPS | 93 | 72 | 54 | OnQExploration |
| Halberts Main | MDH003 | PQ3 | GDA94-MGA Zone 53 | 0301450 | 6273137 | 100 | GPS | 242 | 67 | 37 | OnQExploration |
39 – 43 Murray Road North WELSHPOOL Western Australia 6106 PO Box 235 WELSHPOOL DC WA 6986
Telephone: +61 8 6253 1100 Fax: +61 8 9258 3601 Email: [email protected]
Page 17