Mulga Rock Project

Resources and Reserves

 

table 1  MULGA ROCK project ore Reserves - november 2016

Total Reserve   150 18.7 755 31.2
Deposit/Resource Classification Cut-off Grade (ppm U3O8) Tonnes (Mt)1,2 U3O8 (ppm)3 Total Metal U3O8 (Mlb)4

MULGA ROCK EAST

         
Princess Probable 150 1.1 734 1.7
Ambassador Probable 150 16.4 753 27.3
Sub-total   150 17.5 752 29.0

MULGA ROCK WEST

         
Shogun Probable 150 1.2 808 2.2
Sub-total   150 1.2 808 2.2

1. Tonnages and grades are reported including mining dilution 
2. t = metric dry tonnes; appropriate rounding has been applied and rounding errors may occur
3. Using cut combined U3O8 composites (combined chemical and radiometric grades)
4. Metallurgical plant recovery factors are not applied to Total Metal content

The information in the table above is extracted from ASX announcement entitled "Mulga Rock Project Ore Reserve Update” released on 16 November 2016. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

 


 

table 2  MULGA ROCK project mineral resource - NOVEMBER 2016

Total Resource     67.8 510 76.8
Deposit/Resource Classification Cut-off Grade (ppm U3O8) Tonnes (Mt)2 U3O8 (ppm)3 U3O8 (Mlb)

MULGA ROCK EAST

         
Princess Indicated 150 1.3 690 1.9
  Inferred 150 2.5 380 2.1
Ambassador Indicated 150 19.8 720 31.5
  Inferred 150 10.4 330 7.7
Sub-total     34.1 580 43.2

MULGA ROCK WEST

         
Emperor Inferred 150 30.8 440 29.8
Shogun Indicated 150 1.9 680 2.9
  Inferred 150 1.1 390 0.9
Sub-total     33.7 450 33.6

1. Mineral Resources are reported inclusive of Ore Reserves
2. t = metric dry tonnes; appropriate rounding has been applied and rounding errors may occur
3. Using cut combined U3O8 composites (combined chemical and radiometric grades)

The information in the table above is extracted from ASX announcement entitled "Resource Update for Mulga Rock Project" released on 8 November 2016. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

 


 

table 3  optimised mineral inventory (diluted) - november 2015

Total Inventory  51.8  820 515 270 885 460  215 
Deposit/Plus Ore Tonnes (Mt)2  Waste Tonnes (Mt)2 U3O8 (ppm)3 Cu (ppm)
Zn (ppm) Ni (ppm) Co (ppm)

MULGA ROCK EAST

             
Princess 3.7 54 450 460 815 330  175 
Ambassador 28.0 378 550 245 890 475  220 
Sub-total  31.7 432 535 270 885 460  215 

MULGA ROCK WEST

             
Emperor 14.3 319 500 - -
Shogun 5.8 69 445 - -
Sub-total  20.1  388 485 - -

1. As released to the ASX on 17 November 2015
2. t = metric dry tonnes; appropriate rounding has been applied and rounding errors may occur.
3. Using cut combined U3O8 composites (combined chemical and radiometric grades).

The information in the table above is extracted from ASX announcement entitled “Mulga Rock Project Pre-feasibility Study” released on 17 November 2015. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement of 17 November 2015.

 

This Ore Reserve is derived from Mineral Resources (Table 2) and optimised pit schedules as reported in the Pre-Feasibility Study (PFS) completed and released to the ASX on 17 November 2015.

The PFS indicated that the Project is a 17 year operation, with the maiden Ore Reserve underpinning the initial 6 years of production.  In addition to Probable Ore Reserves, Optimised Mining Inventory (OMI) has been identified (Table 3) which, if mined at currently modelled grades and with the same methods applied to the Ore Reserves, would provide production in the forecast years 7 - 17.

Cautionary Statement:

The Company advises the OMI has a reduced level of confidence compared to production derived from the Ore Reserves, as it contains a high portion of Inferred Mineral Resources.  There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources, or that the production target itself will be met by the OMI.

 

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