1.

1 Important Diamond Drilling Parameters

a) Drill-hole collars: Are the precise location of a diamond drill hole starting point.
These are essentially the longitude, latitude and altitude at which a drill hole starts at in
a given coordinate system. This information is essential for plotting and mapping drill
holes in three-dimensional space allowing for creation of geological models, and
calculating resource estimates.

Examples include: Northing, Easting, Elevation, in UTM

BHID X Y Z
221836. 809938
BH01 1 8 1052.9
221839. 809939
BH02 2 0 1047.3
221840. 809939
BH03 1 3 1041.7

b) Geological logs: Are a record of the data and information identified on drilled core
and these including rock types, structures, rock competence, mineral identified &
content, and features observed. These logs are used for geological mapping,
understanding the geological context of the mineral deposit, and correlating drill holes.

Examples include rock type, color, texture, mineral content, structures (faults, folds),
water table depth.
BHID FROM TO RockType WeatheringOxidation COLOR GRAIN SIZEALTERATION Py% As% Po% Structure
BH01 74.12 75 Sch Fr Fr Gn Fg
BH01 75 75.68 Sch Fr Fr Gn Fg
BH01 75.68 75.85 Qtz Fr Fr Wt Cg
BH01 75.85 75.95 Sch Fr Fr Gn Fg
BH01 75.95 76.33 Qtz Fr Fr Wt Cg 3
BH01 76.33 77 Mdi Fr Fr Gy Mg SilStr,ChlMod,FelWk 4 MSh
BH01 77 78 Mdi Fr Fr Gy Mg SilStr,ChlMod 4 MSh
BH01 78 79 Mdi Fr Fr DkGy Mg SilStr,ChlMod 4 MSh
BH01 79 80 Mdi Fr Fr DkGy Mg SilStr,ChlMod 4 MSh
BH01 80 81 Mdi Fr Fr DkGy Mg SilStr,ChlMod 4 MSh

c) Down-hole survey: Are borehole orientations taken at intervals along the actual drill
hole. This tends to measure the deviation of a drill hole from its intended direction. This
is important for plotting, mapping and ensuring that drill hole intersects positions are as
accurate as possible there by enhancing accurate resource estimation.

Examples include: Down-hole deviation (azimuth and dip), depth measurements

FINAL DHS

BHID
AT BRG DIP EOH P-Azimuth P-Dip P-EOH
BH01 0.00 202.00 -60.36 865.00 200 -60 750
BH01 8.00 202.96 -57.05 865.00 200 -60 750
BH01 32.00 202.89 -56.92 865.00 200 -60 750
BH01 56.00 202.69 -56.82 865.00 200 -60 750
BH01 80.00 202.68 -56.69 865.00 200 -60 750
BH01 104.00 201.81 -56.59 865.00 200 -60 750
BH01 128.00 208.82 -52.54 865.00 200 -60 750

d) Drilling parameters: These are the drilling conditions and performance, encounter
during the actual drilling and including drilling speed, rotary speed, torque, drill bit
usage, penetration rate and drilling fluid properties. This information is used for
evaluating drilling efficiency, optimizing drilling practices, calculating drilling costs and
inferring geological conditions of given ground formation.

Examples include drilling speed, rotation speed, torque, bit usage, rate of penetration
(ROP) and weight on bit (WOB).
e) Analytical parameters: Samples obtained from the drill core are send to the lab for
mineralogical assaying to determine target mineral or metal content. These assays are
used to assess the grade and quality of the mineral deposit.

Examples include gold grade (ppm), copper grade (%), mineral content (e.g., pyrite,
chalcopyrite), rock chemistry and analytical method used.

1.2 In Situ Bulk Density and Dry Bulk Density

In Situ Bulk Density: Refers to the density of rock or mineral material in its natural,
undisturbed state, including the void spaces and fluid fill between particles. It is
measured in grams per cubic centimeter (g/cm³).

In situ bulk density is often used in the evaluation of iron ore deposits, where the density
of the ore body affects resource estimation and processing.

Dry Bulk Density: Is the density of the material after it has been dried to remove
moisture and excludes any voids. This measurement reflects the true density of the
solid material.

Dry bulk density is commonly used for evaluating mineral commodities such as coal to
determine its calorific value and economic potential.

1.3 Sampling QAQC

The main objective of sampling QAQC (Quality Assurance and Quality Control) is to
ensure accuracy and reliability of geochemical data collected during mineral exploration
and mining operations. This involves implementing procedures (QAQC framework)
designed to eliminate and minimize errors and biases in the sampling process, data
collection, and analysis.
Parameters used for QAQC evaluation:

1. Duplicate samples: Duplicate samples refer to the same sample being split into
two then assigned different sample IDs to assess the consistency and accuracy
of the sampling process as well as existence of nuggets. By comparing the
results of duplicate samples, it is possible to identify potential errors or biases.
2. Certified reference materials (CRMs): These are samples with known
concentrations of specific elements or minerals. They are inserted into the drilling
process at regular intervals to monitor the accuracy of the analytical methods
used. By comparing the analytical results of CRMs to their known values, it is
possible to assess the accuracy and precision of the laboratory analysis.
3. Training of project personnel:

2.1.1 Principles of Superposition and Lateral Continuity

Principle of Superposition: In undisturbed sedimentary rock sequences, the older

layers are overlain by younger layers.

This principle helps determine the relative ages of different rock units. In the context of
mineral exploration, it can be used to identify potential mineral deposits within specific
stratigraphic intervals. For example, if a known mineral deposit occurs within a particular
rock formation, the principle of superposition can guide exploration efforts to similar
formations at different depths or locations.

Principle of Lateral Continuity: Sedimentary rock layers extend laterally in all

directions until they thin out or terminate against a barrier.

This principle helps predict the lateral extent of mineral deposits. If a mineral deposit is
discovered in one location, it is likely to continue laterally within the same rock formation
until it encounters a geological barrier or changes in depositional conditions.

Application in the given examples:

  Principle of Superposition:
o Existence of Lower Hwange Sandstones on the surface in Sanyathi implies
that there are no younger formations, hence absence of coal fields.
o Existence of the Beufort units in the first five areas indicate possible
existences of the older sedimentary units with main target being the black
shale and coal group.
o

 Principle of Lateral Continuity:

o Similar stratigraphic units in the ECCA such as the upper and lower Hwange
sandstones can be model as single units all the way from Hwange to Kaonga
terminating between Kaonga and Sanyathi.
o Modelling and potential coal resource field extends can be mapped up to
barriers between Kaonga and Sanyathi, allowing for mineral rights pegging
and exploration plans.

2.2 Sharp versus Gradational Domain Boundaries

Sharp Domain Boundaries: Are characterized by a distinct and abrupt transition

between different rock types, grades or ore types. These boundaries indicate a clear
change in mineralization or lithology.

Typical example is the boundary between a high-grade gold ore zone and surrounding
low-grade material, often seen in vein-type deposits. Chromite seams in the Great Dyke
and coal seams in the Hwange basin.

Gradational Domain Boundaries: Exhibit a gradual transition between different rock

types or grades. This indicates a more complex depositional environment and a
continuous change in mineral composition.

An example is the transition from a high-grade copper zone to a low-grade copper zone
in porphyry deposits, where mineralization decreases gradually.
2.3 Diagrammatic Illustration of Grade Variations

Sharp Domain Boundary Gradational Domain Boundary

Sharp Domain Boundary Gradational Domain Boundary
# From To Length (m) Lithology Au (g/t) Category # From To Length (m) Lithology Au (g/t) Category
1 27 28 1.0 Schist 0.05 Waste 1 27 28 1.0 Quartz 9.26 High grade
2 28 29 1.0 Schist 0.07 Waste 2 28 29 1.0 Quartz 4.23 High grade
3 29 30 1.0 Pegmatite 0.01 Waste 3 29 30 1.0 Quartz 3.20 High grade
4 30 31 1.0 Quartz 5.21 High grade 4 30 31 1.0 Quartz Schist 2.45 High grade
5 31 32 1.0 Quartz 4.23 High grade 5 31 32 1.0 Quartz Schist 1.96 Low grade
6 32 33 1.0 Quartz 3.20 High grade 6 32 33 1.0 Chlorite Schist 1.10 Low grade
7 33 34 1.0 Quartz 5.50 High grade 7 33 34 1.0 Chlorite Schist 0.84 Marginal grade
8 34 35 1.0 Quartz 6.21 High grade 8 34 35 1.0 Biotite Schist 0.43 Marginal grade
9 35 36 1.0 Quartz 9.26 High grade 9 35 36 1.0 Biotite Schist 0.23 Waste
10 36 37 1.0 Granite 0.05 Waste 10 36 37 1.0 Granite 0.19 Waste
11 37 38 1.0 Granite 0.04 Waste 11 37 38 1.0 Granite 0.10 Waste
12 38 39 1.0 Granite 0.04 Waste 12 38 39 1.0 Granite 0.04 Waste
Sum of Au Grades 33.87 Sum of Au Grades 24.03
Number of Samples 12 Number of Samples 12
Arithimetic Grade 2.8225 Arithimetic Grade 2.0025

3.1: Statistical Diagram Analysis

3.1.1 The diagram provided is a histogram. Histograms are used to visualize the
distribution of numerical data by grouping data into intervals (bins) and representing the
frequency of data points within each bin with a bar.

All three histograms belong to the same data set and show a right-skewed distribution,
indicating that a majority of the data points are on the lower end. Histogram A has the
most pronounced skewness, while Histogram C has the coarsest representation due to
the larger bin size. The central tendency and dispersion measures will vary slightly
between the histograms, reflecting the differences in shape and bin size.

Histograms fall under the category of graphical statistical tools. They are valuable for
understanding the shape, central tendency, and dispersion of a dataset.
3.2 Chromite Ore Grade Analysis

3.2.1 Calculation of Variance:

To calculate the variance, we first need to find the mean of the sample values.

Mean = (20 + 27 + 36 + 38 + 32 + 28 + 19) / 7 = 28.57

Next, we calculate the squared difference between each sample value and the mean:

 (20 - 28.57)² = 72.45

 (27 - 28.57)² = 2.10
 (36 - 28.57)² = 55.45
 (38 - 28.57)² = 88.45
 (32 - 28.57)² = 11.45
 (28 - 28.57)² = 0.32
 (19 - 28.57)² = 91.45

Finally, we calculate the average of these squared differences:

Variance = (72.45 + 2.10 + 55.45 + 88.45 + 11.45 + 0.32 + 91.45) / (7-1) = 53.61

3.2.2 Calculation of Standard Deviation:

The standard deviation is the square root of the variance.

Standard Deviation = √53.61 = 7.32

3.2.3 Explanation of Standard Deviation:

The standard deviation is a better measure of spread than variance because:

Units: Standard deviation is expressed in the same units as the original data, making it
easier to interpret in the context of the dataset.
Interpretability: It provides a clearer understanding of the dispersion of data points
around the mean, allowing for more intuitive comparisons between datasets.

3.3: Diagram Analysis

3.3.1 The diagram provided is a Control Chart.

Control charts are statistical tools used to monitor a process over time and identify when
the process is out of control. They are used in quality control in QAQC protocols in
mineral exploration.

Control charts are used to:

Assay batch pass/fail protocol: Batches with QC sample plotting within the +/- 2S are
accepted as having passed while those falling outside are considered as failed batches.

Monitor process stability: Detect shifts or trends in the process that indicate a change in
the average or variability of the measured variable.

Identify special causes of variation: Distinguish between common causes of variation

(random fluctuations) and special causes of variation (abnormal events) that require
corrective action.

3.3.2 Identification of Red Dashed Lines:

 Line A: Upper limit which is the positive second standard deviation (+2S)
 Line C: Lower limit which is the negative second standard deviation (-2S)

4 Mineral Resource Estimation

4.1.1 Drill-Hole Compositing: Drill-hole compositing is a process of combining assay
values from multiple intervals within a drill hole into a single composite value. This is
done to simplify data analysis, reduce variability, and create more representative
samples for resource estimation.

The main purposes of drill-hole compositing include:

 Data Reduction: To reduce the volume of data for easier analysis and
interpretation.
 Smoothing: To smooth out short-term fluctuations in assay values and provide a
more consistent representation of the mineral grade.
 Zonal Grading: To allocate distinct grades for different mineralised zonation or
different geological stratum.
 Resource Estimation: To calculate the total mineral resource across an
intersection, cross section or block.
 Compositing by bench: In open pit gold production, grade is often composited
by benches to allow for mine planning and reconciliation.

4.1.2 Calculation of Arithmetic Average and Length-Weighted Composite Gold

Assay Value:

 Arithmetic Average: The arithmetic average is calculated by summing all the

gold assay values and dividing by the number of samples.
 Length-Weighted Composite: The length-weighted composite takes into
account the length of each sample interval when calculating the average. It is
calculated by multiplying each assay value by its corresponding interval length,
summing the products, and dividing by the total interval length.
Arithimetic Average Au Grade Weighted Au Average Grade
# Length (m) Au (g/t) # Length (m) Au (g/t) Content (g)
1 2.0 0.4 1 2.0 0.4 0.80
2 3.0 0.6 2 3.0 0.6 1.80
3 1.0 1.2 3 1.0 1.2 1.20
4 0.5 2.2 4 0.5 2.2 1.10
5 1.0 1.5 5 1.0 1.5 1.50
6 2.0 0.8 6 2.0 0.8 1.60
7 3.0 0.6 7 3.0 0.6 1.80
8 0.5 1.1 8 0.5 1.1 0.55
Sum of Au Grades 8.4 Sum of Sample Lengths 13.0
Number of Samples 8 Sum of Sample Au Content 10.35
Arithimetic Grade 1.05 Weighted Average Grade 0.80

Length-Weighted Composite of (0.80 g/t) is more representative because it accounts

for the varying lengths of the samples, providing a more accurate reflection of the
mineralization over the entire interval rather than treating each sample equally. This is
because the length-weighted composite gives greater weight to intervals with longer
lengths, reflecting the actual proportion of the mineralized zone.

4.2 Mineral Resource Classification

4.2.1 Changes in Mineral Resource Classification: As mineral resources are

explored and developed, they are upgraded through three categories.

1. Inferred Mineral Resource: The first and the lowest level of confidence, based
on limited sampling and geological information. It suggests a potential mineral
deposit but requires further exploration to confirm its existence and grade. The
resource may be based on outcrop sampling a few wide spread trenches and drill
holes at spacing in excess of 250m in Au deposits.
2. Indicated Mineral Resource: A higher level of confidence based on more
extensive sampling and geological data. It indicates a mineral deposit with a
reasonable probability of existence and grade. More drill holes have been
completed and the drilling interval is in the vicinity of 50m in Au cases.
 Reasonable three-dimensional model can be fairly delineated and probably pilot
mining has proved the economic viability of the deposit.
3. Measured Mineral Resource: The highest level of confidence, based on
detailed sampling and geological data. It represents a mineral deposit with a high
degree of certainty regarding its existence, grade, and tonnage. Drilling density is
having increased and drill hole spacing is below 25m interval. Other aspects of
the resource such as metallurgical properties, commutation properties are now
known and the resource is already being exploited.

4.2.3 Inferred mineral resources cannot be directly converted to mineral reserves.

Mineral reserves represent a portion of a mineral resource that is economically viable
and technically feasible to extract. Inferred resources require additional exploration and
feasibility studies to assess their economic viability and determine if they can be
classified as mineral reserves. The major reasons why inferred resources cannot be
converted to reserves are:

 Lack of Confidence: Inferred resources are based on limited geological

information and sampling, making them too uncertain for economic extraction
decisions.
 Insufficient Data: There is often not enough data regarding the quantity, quality,
and continuity of the deposit to justify converting inferred resources into reserves.
 Regulatory Standards: Many regulatory frameworks require a higher level of
geological confidence (indicated or measured) for resources to be classified as
reserves, ensuring that only economically viable deposits are considered for
extraction.

5 Grade Control and Mine Value Chain Reconciliation

5.1 Grade Control System

A grade control system is a set of procedures and techniques used to monitor and
manage the grade of ore extracted from a mine. It involves collecting and analyzing
data on ore grade, ore tonnage, and mine production to ensure that the ore being mined
meets the economic cutoff grade.

Purpose A grade control system:

 Optimize Profitability - Grade control helps to maximize the value of ore extracted
by ensuring that only ore with a grade above the economic cutoff is mined.
 Minimize Waste - By accurately predicting the grade of ore, grade control can help
to minimize the amount of waste rock mined.
 Improve Mine Planning - Grade control data can be used to update mine plans
and optimize production schedules.
 Reduce Dilution - Effective grade control minimizes the inclusion of waste material
in the ore, reducing dilution and ensuring that the processed material meets
specified grade thresholds.
 Ensure Compliance - Grade control systems are essential for complying with
mining regulations and reporting requirements.

5.2 Geological Activities or Components of Grade Control

1. Geological Modeling: Creating accurate geological models of the ore body,

including its grade distribution and structural features. These models are used to
predict ore grades in areas that have not yet been mined.
2. Sampling and Assaying: Collecting samples of ore from underground workings
or from the surface and analyzing them for mineral content and grade. This data
is used to verify the accuracy of geological models and to monitor ore grade
variations.

5.3 Mine Value Chain Reconciliation (MVCR)

MVCR is a process of reconciling the value of ore extracted from a mine with the value
of the products produced from that ore. It involves tracking the flow of ore through the
mining value chain, from extraction to processing and refining, to identify any
discrepancies or losses in value.
5.4 Objectives of MVCR

1. Identify Value Losses: MVCR helps to identify any losses in value that occur
during the mining process, such as losses due to dilution, processing
inefficiencies, or theft.
2. Optimize Operations: By understanding where value is being lost, mining
companies can take steps to improve their operations and increase profitability.

5.5 Spatial vs. Temporal Reconciliation

Spatial Reconciliation:

 Involves comparing the grade of ore extracted from different parts of a mine. For
example, comparing the grade of ore from different stopes or benches within a
mine.
 Example: If the grade of ore extracted from one area of a mine is significantly
lower than expected, spatial reconciliation can help to identify the cause of the
discrepancy.

Temporal Reconciliation:

 Involves comparing the grade of ore extracted over time. For example,
comparing the grade of ore mined in different months or years.
 Example: If the grade of ore being extracted from a mine is declining over time,
temporal reconciliation can help to identify the reasons for this decline and take
corrective action.

By conducting both spatial and temporal reconciliation, mining companies can gain a
better understanding of their ore grade variability and identify areas for improvement in
their operations.