Page 29 - Sundance Resources 2014 Annual Report

SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2014 27
Assaying QA/QC was undertaken using field duplicates, laboratory
replicates and internal standards with comprehensive reporting on
laboratory precision and accuracy. Metallurgical test work programs have
supported the assay grades and density values of the major mineral types.
High Grade Hematite Resources reported on Nabeba-Bamegod
Permit, Republic of Congo (Nabeba, Nabeba Northwest and Nabeba
South Deposits)
The estimated quantity and grade of near-surface, High Grade
mineralisation for the Nabeba Resources has been restricted to an area
currently covered by drilling on predominately a 100m x 100m pattern
(with some closer-spaced drilling on selected north-south lines on the
northern ridge). Sundance has completed significant drilling at the main
Nabeba Deposit of which approximately 20% has been diamond core
and 80% RC (Reverse Circulation) drilling with face-sampling hammers.
Drilling at the smaller Nabeba Northwest and Nabeba South Deposits
has been by predominately RC method although two diamond holes
were drilled at Nabeba Northwest to ensure similar physical properties
and densities applied.
The geological model at the Nabeba Main Deposit is represented by
an area approximately 2.5km (east-west) x 3km (north-south). Nabeba
Northwest covers a smaller area of approximately 1km x 1km and
Nabeba South smaller again at 500m x 500m.
Grade has been estimated by Ordinary Kriging on composited sample
results. The mineralisation and grade interpolation of drill results has
been constrained by a 3-D wireframe which encompasses all of the
near-surface contiguous High Grade material and as such, no cut-off
grades for High Grade have been required or applied. At the time of
modelling, 92% of drill sample results were full XRF analyses from Ultra
Trace Laboratories (Perth, Western Australia) and the remaining 8% were
Thermo Niton XRF (Fe only) results from the Sundance Site laboratory.
Cut-off grades for the Nabeba deposits have changed since the
previous estimation (September, 2011) and now no cutoff grades have
been applied. Resultant grades are simply a result of the grades which lie
within carefully defined mineralised domain boundaries.
A digital terrain surface (based on recent Lidar and ground surveys) has
been used to limit extrapolation of the mineralisation to the topography
of the Nabeba hill. The resource modelling has used 25m x 25m x 5m
blocks with sub-blocks to honour the constraining surfaces.
Drillhole collar survey has utilised DGPS surveying at all Deposits.
A density of 2.65 t/m3 has been used for the ‘Supergene’ and ‘Transition’
domains of High Grade Hematite, with a density of 2.50 t/m3 for the
‘Sub-Grade’ and ‘Surficial’ zones. All density values are based on results
from an assessment of physical density measurements of current drill
core and on down-hole density determination by Surtron.
Core and sample recovery has been recorded during logging. All drill
hole data is stored in an acQuire database and imported data is fully
validated. Assaying QA/QC was undertaken using field duplicates,
laboratory replicates and standards with comprehensive reporting on
laboratory precision and accuracy.
Exploration Targets
While the Company is optimistic that it will report additional resources in
the future, any discussion in relation to the potential quantity and grade
of exploration targets is only conceptual in nature. There has been
insufficient exploration to define a Mineral Resource for these exploration
targets and it is uncertain if further exploration will result in determination
of a Mineral Resource.
Forward-Looking Statement
Certain statements made during or in connection with this
communication, including, without limitation, those concerning the
economic outlook for the iron ore mining industry, expectations regarding
iron ore prices, production, cash costs and other operating results,
growth prospects and the outlook of Sundance’s operations including
the likely commencement of commercial operations of the Mbalam
Project and its liquidity and capital resources and expenditure, contain
or comprise certain forward-looking statements regarding Sundance’s
exploration operations, economic performance and financial condition.
Although Sundance believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given
that such expectations will prove to have been correct
Accordingly, results could differ materially from those set out in the
forward-looking statements as a result of, among other factors, changes
in economic and market conditions, success of business and operating
initiatives, changes in the regulatory environment and other government
actions, fluctuations in iron ore prices and exchange rates and business
and operational risk management. For a discussion of such factors, refer
to Sundance’s most recent annual report and half year report. Sundance
undertakes no obligation to update publicly or release any revisions to
these forward-looking statements to reflect events or circumstances after
today’s date or to reflect the occurrence of unanticipated events.
Country Location Permit Type Holder
Republic of Cameroon Mbalam Exploration Permit Arrete No. 003207 (EP92) Cam Iron SA (i)
Republic of Congo Nabeba-Bamegod Mining Permit Decree No. 2013-45 Congo Iron SA (ii)
Republic of Congo Ibanga Research Permit Decree No. 2013-405 Congo Iron SA (ii)
(i) Cam Iron SA holds 100% interest; Cam Iron SA is a 90%-owned subsidiary of Sundance Resources Ltd.
(ii) Congo Iron SA holds 100% interest; Congo Iron SA is an 85%-owned subsidiary of Sundance Resources Ltd.
(iii) Under the concluded Key Terms the Cameroon Government has a right to a 10% free carry interest in the Project companies pursuant to the Cameroon
Mining Code and an additional 5% interest where the equity requirements can be loaned to the State and then repaid with interest out of dividends.
(iv) Congo Government has a right to a 10% interest in Congo Iron SA pursuant to the Congo Mining Code.
(v) Should both Governments exercise rights for interest in Cam Iron SA and Congo Iron SA, then Sundance’s interests would reduce to 76.5% in each company
Details of Tenements
The Company, through its subsidiary companies, holds the following exploration/mineral research and mining permits: