BWA Group Plc - Findings of Testwork at the Nkoteng 1 Heavy Mineral Sands Project

BWA Group Plc - Findings of Testwork at the Nkoteng 1 Heavy Mineral Sands Project

PR Newswire

LONDON, United Kingdom, July 19

Findings of Orientation Mineral Separation Testwork at the Nkoteng 1 Heavy Mineral Sands Project, Cameroon

19 July 2023

BWA Group PLC

("BWA", or the "Company") (AQSE: BWAP)

Findings of Orientation Mineral Separation Testwork at the Nkoteng 1 Heavy Mineral Sands Project, Cameroon

BWA Group plc [AQSE: BWAP], which has mineral exploration licences in both Cameroon and Canada and is quoted on London's AQSE Growth Market, provides an update on its recently completed orientation separation testwork, carried out on 20 low-grade primary samples from the mechanised auger programme, from within the Nkoteng 1 Licence, Central Cameroon ("Nkoteng 1" or the "Nkoteng Project").

Through its subsidiary, BWA Resources Ltd ("BWAR"), BWA currently has five heavy mineral sands ("HMS") licences across two project areas in Cameroon, totalling 1,267 km2, all of which are at an early stage of exploration. The Nkoteng 1 Licence covers an area of 343 km2 and the contiguous Nkoteng 2 Licence covers an area of 500 km2, located 60 km to the northeast of Yaoundé with easy transport links to the port of Douala. The Nkoteng Licences cover a significant part of the HMS-prospective Sanaga river system. The Dehane 1, 2 and 3 Licences ("Dehane" or the "Dehane Project") cover an area of 430 km2 comprising part of the prospective Nyong river system, estuary, and coastal zone, located approximately 166 km to the west of the capital, Yaoundé and 70 km from the deep seaport and industrial zone of Kribi.

A version of this announcement including maps and photographs can be viewed on the Company's website, http://www.bwagroupplc.com/bwa-announcements.html

BWA is pleased to announce the findings of the preliminary orientation mineral separation testwork on selected low-grade samples taken from the closed barrel mechanised auger sampling programme on the Nkoteng 1 Project, reported in accordance with JORC (2012). The short shallow auger sampling programme completed in June 2022 drilled 107 holes for 193.30 metres and 171 primary samples (announcement dated 29 June 2022). The programme targeted the central sector of the licence where pitting and hand auger sampling (announcement dated 29 June 2022) identified an area of anomalous Ilmenite, Rutile, Zircon and Kyanite alluvial HMS.

The orientation analytical testwork was completed by Dipl. Ing. Uwe Bruder of Bruder Consulting Germany and comprised processing of 20 low-grade auger drill cores, composited for test work (Table 1) using simple process methods and equipment including gravity, sluice, heavy liquid and magnetic separation. A primary objective of the work to determine suitable process design and procedures for use in Cameroon, to be used for the next round of exploration drilling, planned in H2 2023. This work follows on from the granulometric and size fractioning studies on half-cores from the same samples, completed by BWA (announcement dated 7 September 2022).

The scope of works entailed:

• Compositing auger samples into 3 similar unit types (clay, sand, weathered clay).
• Orientation mineral separation processing and analytical testwork.
• Approximate recovery of heavy minerals using simple process equipment.
• Proposals for simple methods to determine the preferred analytical method for in-country analysis of heavy minerals from drill cores (equipment and test procedure).

Highlights and Commentary

Although the samples were low-grade and from areas that BWA consider to be of lower prospectivity and priority, the samples have returned positive and anomalous results. The testwork methodology and subsequent analytical flowsheet was the important aspect and deliverable of the testwork which will lead into onsite laboratory design and Standard Operating Procedures.

Test work demonstrated good recovery (>80%) of heavy minerals by simple gravity, DMS and magnetic separation within the sand size samples of the material provided. As expected, the sand composite sample contain the greatest quantity of HMS. However significant heavy minerals do occur within clay size samples, and not unexpectedly these are less easily separated, requiring additional sluice processing.

A breakdown of total heavy mineral ("THM") content from the composite samples are as follows:

>0.063 mm sample fraction (sand particle size and above):

• Clay composite sample - 0.35% THM
• Sand composite sample - 0.824% THM
• Weathering clay composite sample - 0.639% THM

<0.063 mm sample fraction (clay particle size):

• Clay composite sample - 0.408% THM
• Sand composite sample - 1.350% THM
• Weathering clay composite sample - 0.245% THM

It should be noted, the highly prospective coarse basal gravels primary target unit have not been encountered or tested as part of this study.

Outlook

The Company are processing the orientation testwork results to understand the implications. Furthermore, the results will be combined with the size fractioning studies completed in September 2022 to identify the relationships and add more information to improve the knowledge of the depositional characteristics for Nkoteng and associated licences.

This orientation testwork will lead into onsite laboratory design and Standard Operating Procedures with work in progress to source suppliers and equipment, in preparation for the planned exploration programme.

The THM% content from the samples is encouraging from low-grade areas and is reasonable from within the sand size fractions. Furthermore, recovery appears to be good from observations by Bruder Consulting from the shaking table and sluices, with recoveries indicated around 80%.

James Butterfield, interim Non-executive Chairman of BWA, commented:

"This round of orientation testwork has given BWA a clear process to follow in order to set up an in-country laboratory, as well as working towards a set of Standard Operating Procedures with which to work within, ensuring accurate and reliable analysis.BWA are also pleased with the early indications of recovery using lab-scale methods. More work is required in the future.BWA is excited about the positive outcome and is planning further exploration from the Nkoteng and Dehane sites".

Summary of Orientation Mineral Separation Testwork

In accordance with JORC (2012) reporting guidelines, a summary of the material information used is set out below. For further details, please refer to the JORC (2012) Table 1, located in the Appendix to this announcement.

The exploration programme from which the 20 primary samples were selected, consisted of 107 holes for 193.30 metres and 171 primary samples, collected within the current and paleo Sanaga river floodplain (Figure 2). The holes were mechanically drilled using a Van Walt windowless percussion sampling system with half core samples split for analysis, with the remaining half core stored in bags for reference and duplicate samples as necessary.

The 20 primary samples were composited into three lithological groups: clay, sand, and weathering clay which were tested separately, as presented in the table below and in Figure 3. The colours denominate the composite, those without colours were excluded and deemed outliers to primary lithology types. The test steps are outlined below and illustrated in Figure 3:

• PSD (particle size distribution) work on 100 grams of sample (Table 2).
• Crushing down to <6.0mm.
• Agitation of each sample in water until the clayey agglomerates had dissolved.
• Gravity sorting by shaking table (> 0.063 mm fractions) and sluice (< 0063 mm) (Figure 4 and 5). Although possible to recover below 0.063 mm, it would likely not be economic on an industrial scale.
• Drying of preconcentrates for dry magnetic separation.
• Magnetic separation for magnetic minerals, i.e., ilmenite and non-magnetic minerals, i.e., rutile and zirconium
• Heavy liquid separation (2.82 g/cm³) of magnetic and non-magnetic separation products.
• Reporting (Figure 6 and 7 and Table 2).

Geology and Geological Interpretation

The prospective Sanaga river is the main river which runs through the BWA Nkoteng 1 and 2 licence area and accommodates approximately 100 km of the river floodplain system and associated tributaries, and an even larger paleo-floodplain area, observed in satellite imagery, although this has yet to be fully ground-truthed through fieldwork.

The geological sequence generally consists of a cover of clays, overlying the target deposit layer consisting of sands and gravels, generally laying directly on the bedrock.

Surficial geology encountered during the auger programme comprised of 0.2 m of surface organic rich soil, alluvial clays and sandy clays ranging from 0 m to 4 m with an average thickness of approximately 1.3 m thick, and basal sand and gravels ranging from 0 m to 3 m thick in places.

The Nkoteng deposit is likely to be a trap placer (native) deposit. The entire stratigraphic column of the Sanaga alluvial deposits is considered potentially mineralised.

Nkoteng is located within the Yaoundé Domain of the Pan African Belt, a large nappe unit that has been thrusted southward onto the Congo Craton and is characterised by low-grade to high-grade garnet bearing metamorphosed schists, gneiss and orthogneisses.

Implications for Future Exploration

The recovery of heavy minerals in the sampled areas has yielded positive results, which is highly encouraging. The mineralisation seems to be continuing positively over a distance of 8 km. BWA is satisfied with the grade and extent of all the target minerals and is planning to conduct follow-up work in the near future across the licence holding.

Competent Person's Statement

The information in this report which relates to exploration results for the Nkoteng Project is based upon and fairly represents information collected and compiled by Mr Emmanuel Simo, MSc., Senior Geologist and Chief Geologist for BWA, who is a Member of the Australian Institute of Geoscientists.

The results were reviewed by Mr J.N. Hogg, MSc. MAIG, Principal Geologist for Addison Mining Services (AMS) and Non-executive Director of BWAR.

Mr Simo and Mr Hogg have sufficient experience relevant to the style of mineralisation, the type of deposit under consideration and to the activity undertaken to qualify as a Competent Person as defined in the JORC Code 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Mr Hogg has reviewed and verified the technical information that forms the basis of and has been used in the preparation of this announcement, including all sampling and analytical data, and analytical techniques. Mr Hogg consents to the inclusion in this announcement of the matters based on the information, in the form and context in which it appears.

Forward Looking Statement

This announcement contains forward-looking statements which involve a number of risks and uncertainties. These forward-looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this announcement. No obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

For further information on the Company, please visit http://www.bwagroupplc.com/index.htmlor contact:

BWA Group PLC James Butterfield Interim Chairman	[phone] [e-mail]
Allenby Capital Limited Corporate Adviser Nick Harriss/Lauren Wright	[phone]

Glossary of Technical Terms:

"%"	percent;
Al2O3	Aluminium Oxide;
"ALS"	Australian Laboratory Services;
"AMS"	Addison Mining Services;
"BRGM"	Bureau de Recherches Géologiques et Minié (French Geological Survey);
"BWA"	BWA Group PLC;
"DTM"	Digital Terrain Model. Computerised topographic model;
"DUP"	Décret d'Utilité Publique (Public Utility Decree);
"HMS"	Heavy Mineral Sands;
"km"	Kilometre;
"TiO2"	Titanium dioxide, also known as titanium (IV) oxide. Generally sourced from ilmenite, rutile, and anatase;
"Zr"	Zircon or Zirconium;
"JORC (2012)"	the 2012 edition of the JORC code;
"JORC"	the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, as published by the Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia;
"m"	metre;
"ME-XRF11bE"	Analysis by Fusion/XRF;
"QA/QC"	Quality assurance/quality control.
"µm"	micrometre or micron, unit of length equalling 1×10-6 metre

Table 1: Sample details.

Hole ID	From	To	Sample ID	Lith
NKA_163	0.10	1.60	26435	Plastic Clay
NKA_078	0.00	1.90	26285	Plastic Clay
NKA_124	0.10	1.90	26367	Plastic Clay
NKA_148	0.10	2.30	26409	Plastic Clay
NKA_119	0.65	1.35	26359	Plastic Clay + Saprolite
NKA_163	1.60	2.60	26436	Sand
NKA_078	1.90	4.00	26286	Sand
NKA_124	1.90	3.55	26368	Sand
NKA_148	2.30	3.30	26410	Sand
NKA_119	0.00	0.65	26358	Sand (Secondary alluvial deposits)
NKA_146	0.20	1.00	26407	Sand (Secondary alluvial deposits)
NKA_166	0.00	1.20	26440	Sand (Weathering Sand)
NKA_140	0.05	0.90	26394	Weathering Clay
NKA_121	0.10	0.70	26362	Weathering Clay
NKA_085	0.00	0.90	26297	Weathering Clay
NKA_159	0.10	1.80	26428	Weathering Clay
NKA_166	1.20	2.00	26442	Weathering Clay + Sand + Gravel + Saprolite
NKA_140	0.90	1.40	26395	Weathering Clay + Saprolite
NKA_121	0.70	1.20	26364	Weathering Clay +Ferruginous concretion
NKA_085	0.90	1.40	26298	Weathering Clay +Ferruginous concretion +Saprolite
	Composite 1 - Plastic clay
	Composite 2 - Sand
	Composite 3 - Weathering clay

The table below presents the results of the testwork. Additional work is required to understand the implications for continuing exploration, as well comparing this mineral separation work to the granulometric work.

Table 2: Results of PSD and analytical results of the THM%.

Composite	Size Fraction	PSD (passing %)	THM%
dComposite 1 - Plastic clay	> 0.5 mm	97.3	No heavy minerals
	0.25 - 0.5 mm	92.8	0.04m%
	0.063 - 0025 mm	74.4	0.31 m%
	< 0.063 mm	49.4	0.41 m%
	Total	100	0.76 m%
Composite 2 - Sand	> 1 mm	92.4	No heavy minerals
	0.5 - 1 mm	81.4	0.08 m%
	0.25 - 0.5 mm	68.9	0.20 m%
	0.063 - 0025 mm	41.4	0.54 m%
	< 0.063 mm	20.7	1.35 m%
	Total	100	2.17 m%
Composite 3 - Weathering clay	> 1 mm	88.9	No heavy minerals
	0.25 - 1 mm	68.2	0.36 m%
	0.063 - 0025 mm	51.5	0.28 m%
	< 0.063 mm	33.0	0.25 m%
	Total	100	0.89 m%

APPENDIX: Table 1 (JORC 2012)

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	AMS Commentary
Sampling techniques	Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.	Samples were generated using a mechanised windowless soil percussion machine to a maximum depth of 4.0 m. Samples were halved to accommodate duplicate samples. The locations varied between active and paleo island and riverbank channels. The sampling methods are sufficient for early-stage exploration. No handheld XRF instruments were used.
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used	Sampling was supervised by the senior BWA geologist. Samples are considered representative of the surface and are sufficient for early exploration geochemical surveys.
	Aspects of the determination of mineralisation that are Material to the Public Report.	Crushing down to <6.0mm Agitation of each sample in water until the clayey agglomerates had dissolved. Gravity sorting by shaking table (> 0.063 mm fractions) and sluice (< 0063 mm). Drying of preconcentrates for dry magnetic separation. Heavy liquid separation (2.82 g/cm³) of magnetic separation products. Reporting.
	In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.	107 holes for 193.30 metres to a maximum depth of 4.0 m to obtain 171 lithologically controlled samples of approximately 2 kg each. The sample was split in half and samples were generally between 50 - 100 cm in length and lithologically controlled. The primary sample will be sent for analysis and the remaining half is stored in plastic bags under lock and key for duplicate analysis and future reference. Samples have not been submitted for heavy mineral separation testwork to date.
Drilling techniques	Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	Closed barrel (windowless) soil sampling percussion style handheld drilling rig was employed to drill the holes. The core barrel is 63mm.
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	Core was measured by run length. Recovery review is ongoing.
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	Specialist core lifters were employed, designed for sands and gravels. Recovery was reviewed after each run by the geologist. Holes were re-drilled when recovery was deemed insufficient. Recovery review is ongoing.
	Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	No recovery vs grade work has been completed yet.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	No mineral resources are being reported. However, logging data is sufficient to support input into estimation. Recovery review is ongoing.
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.	Geological logging is qualitative.
	The total length and percentage of the relevant intersections logged.	All intersections were geologically logged.
Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken.	Half the hole is sampled. The remaining halves are used as duplicates for repeat analysis or reference.
	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	N/A
	For all sample types, the nature, quality and appropriateness of the sample preparation technique.	Samples were be submitted for HMS preparation and separation, which is considered appropriate for the deposit type.
	Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.	Duplicate samples were taken during the drilling and a percentage will be submitted for HMS separation. No duplicate analysis has been completed on separation testwork to date.
	Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.	However, duplicate samples have been taken to test for representativity. No duplicate analysis has been completed on separation testwork to date.
	Whether sample sizes are appropriate to the grain size of the material being sampled.	Granulometric studies were performed on previous sample, and preliminary analysis shows that samples are appropriate to the grain size of the material being sampled. Updated granulometric studies have been performed. More statistical work is required in this area.
Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	Samples were submitted for HMS preparation and separation, which is considered appropriate for the deposit type. XRD is required to further delineate the types of THM within the final sample.
	For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.	No geophysical tools, spectrometers or handheld XRF instruments were used in the exploration work.
	Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	Sample stream included, duplicate, blank and CRM material.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	Results not verified by external independent person at this time.
	The use of twinned holes.	N/A.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	Sample data is hand inputted into Excel and imported into Micromine for validation and 3D display.
	Discuss any adjustment to assay data.	No adjustment to assay data is required.
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	Drillholes were surveyed using a DGPS.
	Specification of the grid system used.	Data was captured and located using a Universal Transverse Mercator (UTM). The geographic coordinate reference system is WGS84 Zone 32N (UTM32N). Elevations are reported in metres above sea level.
	Quality and adequacy of topographic control.	There is no topographic DTM at present. As part of the collar survey, additional points were collected in order to create an accurate topographic surface. DTM creation is ongoing.
Data spacing and distribution	Data spacing for reporting of Exploration Results.	No exploration results are being reported.
	Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.	N/A.
	Whether sample compositing has been applied.	N/A.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.	N/A.
	If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	N/A.
Sample security	The measures taken to ensure sample security.	Samples were transported from site to Yaoundé in secure polyweave bags by the BWA geologist. Samples were taken to Afrigeolabs for granulometric studies by BWA geologists. Samples were sent to Germany via DHL for heavy mineral separation testwork. Samples arrived in Germany intact and without tampering.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	Lewis Harvey (AMS Director and Senior Geologist) completed a site visit between the 23rd and 29th of May, 2022. All findings of the visit are considered satisfactory.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria

JORC Code explanation

AMS Comments

Mineral tenement and land tenure status

• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

• BWA has been awarded Permit No. 672, an exploration licence covering 343 km2 of Central Cameroon in an area known as Nkoteng, for researching the viability of commercial exploitation of rutile sands and other minerals including gold, kyanite, ilmenite, and other related minerals.
• The permit is for three years and there is a requirement for a financial commitment of £260,000 in year 1 to be followed by £195,000 in each of years 2 and 3.
• The licence was renewed on the 23rd of September 2022 for a period of two years. (Confers article 37 of Law 2016/017 of 14 Dec 2010 on the Cameroonian Mining Code).[LH1]

• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

• All tenements are in good standing.
• BWA are unaware of any impediments that may affect the licences.

Exploration done by other parties

• Acknowledgment and appraisal of exploration by other parties.

• Rutile was discovered in Cameroon at the beginning of the century, but it was only exploited between 1935 and 1955. The total recorded production of rutile is approximately 15,000 tonnes, with a maximum of 3,320 tonnes in 1944; exploitation remained essentially artisanal.
• Historical exploration was carried out by the BRGM in 1980 and continued until 1991.
• On 28th February 1988, the Ministry of Mines, Water and Energy (MINMEE) and BRGM set up the Société d'Étude du Rutile d'Akonolinga (SERAK) with a capital of 460 million CFA francs held by a 100% subsidiary of BRGM (SEREM) and the State of Cameroon in proportions of 52% and 48% respectively.
• The evaluation of rutile resources in the Akonolinga region by SERAK has given the Djaa River some 290,000 tonnes (± 50,000 tonnes) and the Yo River some 240,000 tonnes (± 40,000 tonnes).
• During the same period, reconnaissance was carried out on the Sélé and Tédé rivers in the Nanga Eboko region. The campaign enabled resources to be estimated at: SELE River: 723,000 tonnes of rutile; TEDE River: 175,000 tonnes of rutile.
• At the moment the Akonolinga area is being developed by the French mining company ERAMET which is active in the field, while the TEDE and SELE rivers in the Nanga Eboko area are under licence from Archidona. The latter company is inactive in the field.
• No recent data on these two areas is available.
• Results are not reported in accordance with JORC (2012) and have not been independently verified by either BWA or AMS.

Geology

• Deposit type, geological setting and style of mineralisation

• Rutile, as an important component in alluvial or eluvial heavy mineral deposits, is known in southern Cameroon.
• Cameroon was the world's third largest producer of rutile from 1944 to 1950 (16,417 t).
• With an estimated potential of nearly three million tons, Cameroon has the world's second-largest supply of rutile after Sierra Leone.
• Nkoteng is located within the Yaoundé Domain of the Pan African Belt, which is a large nappe unit that has been thrusted southward onto the Congo Craton and is characterised by low-grade to high-grade garnet bearing metamorphosed schists, gneiss and orthogneisses
• Main minerals are garnet, rutile, kyanite, ilmenite and zircon.

Drill hole Information

• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
  • easting and northing of the drill hole collar
  • elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar
  • dip and azimuth of the hole
  • down hole length and interception depth
  • hole length.

• Collar coordinates and details of the holes are presented in the table below.

Heading	Count	Min	Max
EAST	107	815514	822514
NORTH	107	492007	496992
RL	107	526	581
EOH	107	0.6	4.0

• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

• N/A.

Data aggregation methods

• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

• N/A.

• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

• N/A.

• The assumptions used for any reporting of metal equivalent values should be clearly stated.

• N/A.

Relationship between mineralisation widths and intercept lengths

• These relationships are particularly important in the reporting of Exploration Results.

• Mineralisation is a river placer deposit, and the extents and geometry are unknown at this time.
• Surface sampling is early stage and designed to confirm the presence and indication of HMS mineralisation for targeting further exploration.

• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

• The holes are vertical, and the mineralisation is assumed to sub-horizontal at this time.

• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known').

• The relationship between interval and true width is not yet know.
• However, the mineralisation is sub-horizontal and interval widths are likely a reasonable reflection of true width.

Diagrams

• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

• Appropriate scaled diagrams are attached to the RNS.

Balanced reporting

• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

• All available exploration data for the Nkoteng Project has been collected and reported.
• The full implications for the data are unknown at this time.

Other substantive exploration data

• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

• No geophysical works have been completed.
• Limited mapping works have been completed.
• No additional surface sampling works have been completed.
• No metallurgical testing or bulk density work have been completed.

Further work

• The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).

• Additional drilling in prospective areas to delineate lateral extents.
• Bulk density and granulometric studies.
• Metallurgical and recovery testwork.

• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive

• Further work programmes are being developed and as such, no diagrams are available at this time.
• However, exploration is planned over the whole licence area.

[LH1]Emanuel to confirm

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