- Technical Report (March 2016)
The Unkur Project is interpreted as a sediment-hosted stratiform copper deposit type. The copper-bearing horizon has been traced, from historic drill holes, trenches and outcrop, for a length of about 5 kilometers northwest-southeast in the southwest limb of the Unkur Syncline. No material exploration works have yet been conducted by, or on behalf of the Company.
Eight historical diamond drill holes returned copper samples with grades greater than 0.6% Cu (the grade historically used for defining substantial mineralization). The mean length of these intersections is 13 m and the mean grade is 0.78%. The deepest intersection is 250m down hole. Within the zone of copper mineralization, silver grades were estimated by sampling composites of the copper samples. Average silver grade of these composites was 68.3 g/t. The reliability of these historical results is in doubt though, because of significant core recovery problems: recovery in the mineralized intervals was 65% on average, and as low as 31%. In addition to the poor recoveries, the overall quantity and quality of historical data are insufficient to be the basis for preparing a mineral resource estimation.
Despite the risks and uncertainties arising from data quality, SRK considers that the Unkur Project has a high exploration potential. Continuity of the mineralized horizon has been established over a strike length of at least 5 kilometers, and the extent of this horizon has not yet been closed off, either along strike or down dip. Information from geophysics, and sparse outcrop exposures, implies that the same copper-bearing horizon is also present, several kilometres away, on the northeast limb of the Unkur Syncline.
Metallurgical testing results of a single 350kg sample of the oxide copper-bearing ore of the Unkur deposit taken in December 2014 indicate that copper and silver can be recovered. Preliminary tests indicate recoveries up to 96% of both copper and silver.
In the opinion of SRK, the potential of the Unkur Project is sufficient to justify additional exploration, which will also satisfy the minimum exploration expenditure requirements. SRK has proposed a work program to delineate the copper and silver mineralization, estimate mineral resources and prepare an initial mineral resource statement and preliminary economic assessment to meet NI 43-101 disclosure guidelines.