VPTRX004 - Buckreef High Level Phase 1 Underground Potential Confirmation Drilling Programme and Cost Estimate

Transcription

1 mining energy - infrastructure - processes Block 4, Tunsgate Office Park, 30 Tunsgate Road, P.O. Box 1022, Mount Pleasant, Harare, Zimbabwe, Tel: /7 Mobile: vpinfo@virimaiprojects.co.zw; VPTRX004 - Buckreef High Level Phase 1 Underground Potential Confirmation Drilling Programme and Cost Estimate Proposal Prepared for: Tanzanian Royalty Exploration Company 82 Richmond Street West, Suite 208 Toronto, Ontario, Canada MSC 1P1 Attention: Ulrich Rath Page 1 of 22

2 Buckreef High Level Underground Potential Confirmation and Pit Infill Drilling Programme and Cost Estimate Background This note should be read in conjunction with the earlier ones: VPTRX002 - Buckreef High Level Drilling Programme and Estimate, and VPTRX003 - Buckreef High Level Underground Potential Confirmation and Pit Infill Drilling Programme and Cost Estimate Following the strong results presented in the recently completely compliant Prefeasibility Study, TRX is looking to moving ahead with the development of the Buckreef Open Pit Project. While the PFS recommended an infill drilling program within the Buckreef Mine model designed to upgrade the open pit mineable ounces, priority is now being given to conducting Phase 1 drilling to confirm the previously known strong intersections and grades for underground and therefore enhance its knowledge of the deposit at depth or beyond the open pit. Philosophy The Buckreef Mine Project underground confirmation drilling for depth is required ahead of pit infill drilling. The reason being to demonstrate the full potential value of the project and to have a Life of Mine comfort before committing more financial resources. In other words, whilst the pit is a viable and solid standalone project, what else could possibly be available beyond the pit life and could there be possibly a stage where open pit and underground production would be done at the same time. Therefore, the purpose of the initial drilling for depth is: To target the strong ore zones in terms of grade and width. To confirm previous depth interception To test the continuity of strong zones with depth Page 2 of 22

3 To test the inverted carrot thesis, which says the mineralised zones are wider with depth. To test for similarity with adjacent properties, as well as testing for Copper The drilling phases are now rearranged as follows: Phase 1: Confirmation drilling for Underground potential Phase 2: Pit infill drilling for Open Pit Resource upgrade and Feasibility Study Phase 3: Underground further drilling. Virimai Projects has updated its high-level drilling programme, as well as the capital estimate and schedule for these phases. Summary Phase 1: Confirmation drilling for Underground potential o 6565 metres o 15 holes o $1.030million ($1.200 million with down the hole geophysics and survey) o Four months schedule with two machines Phase 2: Open Pit infill drilling o 4478 metres o 29 holes o $592k o Four months schedule Phase 3: Underground further drilling (LoM) o metres o 48 holes o $4.455million o Thirteen months schedule with two machines Page 3 of 22

4 Programme estimates Buckreef High Level UG Potential Confirmation & Infill Drilling Table 1: Drilling Programme capital cost estimate Phase 1 - Confimation Drilling for Underground Potential Phase 2 - Pit Infill Drilling Phase 3 - UG Further Resource Drilling (LOM) Total UG Drilling Programe No. of holes # Type of Holes DD RC DD DD Metrage m 6,565 4,478 29,970 36,535 Av. Hole of length m HQ Drilling Costs-Contractor US$ 28, , , ,483 NQ Drilling Costs-Contractor US$ 763,935 3,487,452 4,251,387 Contractors -Mobilisation/Demob US$ 15,000 10,000 5,000 20,000 Consumables Sample bags US$ 922 3,347 4,207 5,129 Consumables String/Packaging US$ Consumables QAQC STDs (4/STD) US$ 353 1,116 1,612 1,965 Consumables Ticket books ($/50pack) US$ ,032 1,258 Sample delivery (Truck/fuel/Accom) US$ 2, ,673 11,792 Assay/analysis US$ 34,466 70, , ,809 Contigency (7.5%) US$ 63,445 36, , ,316 Subtotal Drillind and Assaying US$ 909, ,709 4,083,157 4,992,530 Consultant Project Management US$ 42,000 21, , ,500 Drilling Supervision US$ 10,000 10,000 32,500 42,500 Resouces modelling US$ 2,400 4,000 3,200 5,600 Resource Estimation & Classification US$ 7,000 12,600 9,800 16,800 Write ups US$ 1,800 3,000 2,400 4,200 Total Consultant US$ 63,200 50, , ,600 Owners Exploration team US$ 57,600 14, , ,800 Grand total US$ 1,030, ,709 4,454,757 5,484,930 Down the Hole survey and Geophysics US$ 170,000 Period two machines - months Period four machines - months Page 4 of 22

5 Table 2: Drilling Programme Schedule estimate Activity Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Drilling for Underground - Two Machines Confirmation Drilling for UG Phase 1 - Two machines Resource Modelling Estim. & Classification Further Drilling for UG Phase 3 - Two machines Resource Modelling Estim. & Classification Phase2 Pit Infill Open Pit Infill Drilling Resource Modelling Estim. & Classification - Open Pit Processing Pilot Testing - Open Pit Definitive Feasiblity Study - Open Pit Project Implementation - Open Pit??? Drilling for Underground - Four Machines Confirmation Drilling for UG Phase 1 - Four machines Resource Modelling Estim. & Classification Purther Drilling for UG Phase 3 - Four machines Resource Modelling Estim. & Classification Page 5 of 22

6 Table 3: Phase 1 Proposed drilling below the envisaged pit targeting high grade and width intersections BHID XCOLLAR YCOLLAR ZCOLLAR Depth (m) AZIMUTH(o) DIP PHASE Intersections (m) Major (From-To) Minor (From-To) Width (m) Sampling (m) 1 L9_ x 4m-5m from m L12_ ; L13_ ; x 4m from L14_ ; ; None L15_ x 1-2m from L16_ ; None L17_ L18_ L19_ x 1-2m from L19_ None L20_ ; None L21_ x 2-4m from L21_ ; None L22_ ; ; None U22_ tba None Totals 15 6,565 metres Page 6 of 22

7 Figure 1: Plan view of the section lines, extant and planned drill holes Phase 1 = Blue drill holes = Targets below envisaged pit, ug confirmation drill holes Page 7 of 22

8 Section 9 Page 8 of 22

9 Section 12 Page 9 of 22

10 Section 13 Page 10 of 22

11 Section 14 Page 11 of 22

12 Section 15 Page 12 of 22

13 Section 16 Page 13 of 22

14 Section 17 Page 14 of 22

15 Section 18 Page 15 of 22

16 Section 19 Page 16 of 22

17 Section 20 Page 17 of 22

18 Section 21 Page 18 of 22

19 Section 22 Page 19 of 22

20 Phase 2 Pit Infill Drilling Visuals Figure 2: Plan view of pit infill (red) and existing (black) drill holes in red superimposed on the resource shell Page 20 of 22

21 Figure 3: Perspective view of planned pit infill holes facing NE Figure 4: Perspective view of planned pit infill holes facing SSE Page 21 of 22

22 Figure 5: Cross section view of pit classified blocks, planned (red) and existing (black) drill holes facing NE End Wenceslaus Kutekwatekwa 9 November 2018 Page 22 of 22