TIDMKRPZ
RNS Number : 2343M
Kropz PLC
10 January 2023
10 January 2023
Kropz Plc
("Kropz" or the "Company")
Update of Mineral Resource Estimate for Elandsfontein
Kropz Plc (AIM: KRPZ), an emerging African phosphate producer
and developer, is pleased to announce an update to the JORC (2012)
compliant Mineral Resource Estimate ("MRE") at its South African
phosphate project, Elandsfontein Phosphate Project
("Elandsfontein") , following additional infill drilling, relogging
of historical cores and mapping of ore exposures as intersected
within the current mining horizon.
The previous resource statement was validated and published by
SRK Consulting (Pty) Ltd ("SRK") in 2018, following their peer
review of the resource estimate by Snowden Mining Industry
Consultants (Pty) Ltd.
The geology at Elandsfontein was believed to be continuous with
no major project risks or potential flaws identified associated
with the sampling, delineation, and estimation of the mineral
resources by previous authors (SRK, 2018). In July 2022, mining
operations intersected previously unknown and undefined indurated
phosphatic (phoscrete) lenses colloquially referred to as 'hard
bank'.
Based on current conditions and on-site learnings, not only from
the mining, but also from the revised geological interpretations,
it was considered prudent that the resource model be reclassified.
The estimate needed to be brought in line with the level of
confidence that reflected grade and physical properties and
continuity (mining output and plant performance), as these aspects
play a role in economic viability, and therefore associated reserve
determination.
Summary
-- The updated MRE now caters for geotechnical characteristics
of the ore in addition to the grade characteristics;
-- Increase in total phosphate resources at Elandsfontein to 106.58 million tonnes ("Mt");
-- Downgrade of much of the previously Measured resource to
Indicated, and downgrade of previously Indicated resources to
Inferred. Total Measured and Indicated resource tonnage has reduced
by approximately 76%. The updated resource now considers core
recovery, average drill hole spacing and sample count;
-- Grade has improved, with the refined lithological contacts
and improved estimates from the infill drilling and pit sampling.
This can also be confirmed from the current pit intersections;
and,
-- Proven reserve of 7.31 Mt at 10.71% P(2) O(5) .
Mark Summers, Chief Executive Officer commented:
"While the downgrade of the Measured and Indicated resource is
disappointing, it enables Kropz to move forward with a
significantly increased level of confidence, that will allow for
accurate and efficient mine planning.
"The increase in total resource, and more importantly, the
increase in grade, supported by the additional drilling programme
is excellent news, and the continued drilling planned for the year
ahead will further increase confidence, and support an increase in
reserve tonnes."
ELANDSFONTEIN RESOURCE STATEMENT AS OF 15 DECEMBER 2022
CLASS TONNES P (2) SiO Al MgO Fe CaO CONTAINED
(Mt) O(5) (2) (2) (%) (2) (%) P(2)
(%) (%) O(3) O(3) O(5)
(%) (%) (Mt)
======= ====== ====== ====== ===== ====== ====== ==========
Measured 9.40 11.21 65.58 1.13 0.16 0.90 16.10 1.05
======= ====== ====== ====== ===== ====== ====== ==========
Indicated 9.62 7.90 75.21 1.17 0.12 0.86 11.24 0.76
======= ====== ====== ====== ===== ====== ====== ==========
Total Measured
& Indicated 19.02 9.54 70.45 1.15 0.14 0.88 13.64 1.81
======= ====== ====== ====== ===== ====== ====== ==========
Inferred 87.56 7.68 73.92 1.20 0.16 1.03 11.15 6.72
======= ====== ====== ====== ===== ====== ====== ==========
Total Resources 106.58 8.01 73.30 1.19 0.16 1.00 11.59 8.54
======= ====== ====== ====== ===== ====== ====== ==========
NETT ATTRIBUTABLE (74% TO THE COMPANY)
Measured 6.96 11.21 65.58 1.13 0.16 0.90 16.10 0.78
======= ====== ====== ====== ===== ====== ====== ==========
Indicated 7.12 7.90 75.21 1.17 0.12 0.86 11.24 0.56
======= ====== ====== ====== ===== ====== ====== ==========
Total Measured
& Indicated 14.07 9.54 70.45 1.15 0.14 0.88 13.64 0.67
======= ====== ====== ====== ===== ====== ====== ==========
Inferred 64.79 7.68 73.92 1.20 0.16 1.03 11.15 4.98
======= ====== ====== ====== ===== ====== ====== ==========
Total Resources 78.87 8.01 73.30 1.19 0.16 1.00 11.59 6.32
======= ====== ====== ====== ===== ====== ====== ==========
Note: All numbers are reported to two significant figures.
Rounding may cause minor discrepancies to the numbers reported
in this table.
The revised resource estimate contains 30 additional sonic
boreholes with recoveries above 90%. The additional holes have
provided significant insight in terms of the geological
interpretation, mineralised lithologies and data confidence.
Differences are further seen in the elevation with regards to top
contact of mineralisation. The 2022 modelling further utilised
implicit modelling which creates additional refined contacts
between lithologies. The optimised modelling has contributed to
improved grades over the more accurately estimated areas and will
improve planning in terms of anticipating mineralised horizons, and
lithology types which are not always visibly distinguishable.
DIFFERENCE 2018 VS 2022 RESOURCE DECLARATION
CLASS TONNES P (2) SiO Al MgO Fe CaO CONTAINED
(Mt) O(5) (2) (2) (%) (2) (%) P(2)
(%) (%) O(3) O(3) O(5)
(%) (%) (Mt)
======= ====== ====== ====== ====== ====== ====== ==========
Total Measured
and Indicated
2022 19.02 9.54 70.45 1.15 0.14 0.88 13.64 1.81
======= ====== ====== ====== ====== ====== ====== ==========
Total Measured
and Indicated
2018 77.80 8.30 74.90 1.17 0.17 0.93 11.86 3.60
======= ====== ====== ====== ====== ====== ====== ==========
Difference
Measured
and Indicated -58.78 1.24 -4.45 -0.02 -0.03 -0.05 1.78 -1.79
======= ====== ====== ====== ====== ====== ====== ==========
Inferred
2022 87.56 7.68 73.92 1.20 0.16 1.03 11.15 6.72
======= ====== ====== ====== ====== ====== ====== ==========
Inferred
2018 23.30 5.48 82.50 1.15 0.13 0.95 7.50 1.28
======= ====== ====== ====== ====== ====== ====== ==========
Difference
Inferred 64.26 2.20 -8.58 0.05 0.03 0.08 3.65 5.44
======= ====== ====== ====== ====== ====== ====== ==========
Note: All numbers are reported to two significant figures. Rounding
may cause minor discrepancies to the numbers reported in this
table.
The 2022 reserve estimate was impacted by the reclassification
of the resource estimate. Reserves are estimated at 17.42 Mt at a
P(2) O(5) grade of 9.19% of which 7.31 Mt is proven at 10.71% P(2)
O(5) , where previously no proven tonnes were stated in 2018.
ELANDSFONTEIN RESERVE STATEMENT AS AT 15 DECEMBER 2022
CLASSIFICATION TONNES (Mt) P(2) O(5) CONTAINED
(%) P(2) O(5)
(Mt)
---------------- ----------
Proven 7.31 10.71 0.78
---------------- ---------- --------------------------
Probable 10.11 8.09 0.82
---------------- ---------- --------------------------
Total Reserve 17.42 9.19 1.60
---------------- ---------- --------------------------
NETT ATTRIBUTABLE (74% TO THE COMPANY)
Proven 5.41 10.71 0.58
---------------- ---------- --------------------------
Probable 7.48 8.09 0.61
---------------- ---------- --------------------------
Total Reserve 12.89 9.19 1.18
---------------- ---------- --------------------------
There is a 46 Mt difference between the 2018 and 2022 estimates,
which is mainly due to the downgrade in the measured and indicated
resource categories in the 2022 resource estimate.
DIFFERENCE 2018 VS 2022 RESERVE DECLARATION
RESOURCE CLASSIFICATION TONNES (Mt) P(2) O(5) CONTAINED
(%) P(2) O(5) (Mt)
============== ========== ================
Total Proven 2022 7.31 10.71 0.78
========== ============== ================
Total Proven 2018 - - -
========== ============== ================
Total Probable 2022 10.11 8.09 0.82
========== ============== ================
Total Probable 2018 63.63 9.60 6.11
========== ============== ================
Total Proven and Probable
2022 17.42 9.19 1.60
========== ============== ================
Total Proven and Probable
2018 63.63 9.60 6.11
========== ============== ================
Difference Proven and Probable -46.21 -0.41 -4.51
========== ============== ================
Note: All numbers are reported to two significant figures.
Rounding may cause minor discrepancies in this table
Competent Persons Statement
Information in this announcement pertaining to Reporting of
Sampling Techniques and Data, Exploration Results and Estimation
and Reporting of Mineral Resources has been reviewed and approved
by Vanessa Clark-Mostert, a Principal Consultant for Practara (Pty)
Ltd, Golder House, Maxwell Office Park, Magwa Crescent, Building 1,
West, Midrand, 1685, South Africa. The Company Registration number
is 2015/217925/07.
Ms Clark-Mostert is registered with the South African Council
for Natural Scientific Professionals, in the field of Geological
Science, Pr. Sci. Nat. member No. 400161/07. She holds an MSc Earth
Science Practice and Management, University of Pretoria, 2012, BSc
(Honours) Environmental and Engineering Geology, University of
Pretoria, 2002 and a BSc (Geology) from the University of Pretoria.
Ms Clark-Mostert has more than 19 years' experience in the mining
industry of which most of her working career included work as a
consultant. Roles fulfilled which is pertinent to the style of
mineralisation and mining method include Geological Consultant and
Technical advisor. Parent Companies include Anglo American, Tronox,
Richards Bay Minerals, TRG, TWP Investments, Phalaborwa Mining
Company, General Nice Mining, Norilsk & BCL, Namakwa Sands,
Assmang and Assore.
Ms Clark-Mostert is a 'Competent Person' as defined in the
SAMREC Code which allows her to act as a Competent/Qualified
Person.
Ms Clark-Mostert consents to the inclusion in this announcement
of the matters based on this information in the form and context in
which it appears. Ms Clark-Mostert confirms that the Company is not
aware of any new information or data that materially affects the
information included in the relevant market announcements, and that
the form and context in which the information has been presented
has not been materially modified.
The information in this release that relates to the Estimation
and Reporting of Ore Reserves has been compiled by Mr Christopher
Kuhl. Mr Kuhl is employed by Practara (Pty) Ltd as a Principal
Consultant to perform studies and assignments related to Mining and
Technical Advisory. Mr Kuhl is registered as a member with the
South African Institute of Mining and Metallurgy. He holds a BSc
Engineering (Mining) from the University of the Witwatersrand and a
GDE (Mineral Economics) from the University of the
Witwatersrand.
Mr Kuhl has more than 25 years' experience in the mining
industry. Parent Companies include African Rainbow Minerals and
Assore, Jubilee Platinum, Cheetah Mining, Sail and Anglo
American.
Mr. Kuhl consents to the inclusion in this report of the
contained technical information relating the Ore Reserve Estimation
in the form and context in which it appears. Mr Kuhl confirms that
the Company is not aware of any new information or data that
materially affects the information included in the relevant market
announcements, and that the form and context in which the
information has been presented has not been materially
modified.
Glossary
Term Intended generalised meaning
Competent Person A minerals industry professional who
is a Member or Fellow of the Australasian
Institute of Mining and Metallurgy, or
of the Australian Institute of Geoscientists,
or of a Recognised Professional Organisation,
as included in a list available on the
JORC and Australian Securities Exchange
websites.
----------------------------------------------------
Diamond drilling The act or process of drilling boreholes
using bits inset with diamonds as the
rock-cutting tool.
----------------------------------------------------
Governing Principles The principles governing the operation
and application of the JORC Code are
Transparency, Materiality and Competence.
Transparency requires that the reader
of a Public Report is provided with sufficient
information, the presentation of which
is clear and unambiguous, to understand
the report and not be misled by this
information or by omission of material
information that is known to the Competent
Person.
Materiality requires that a Public Report
contains all the relevant information
that investors and their professional
advisers would reasonably require, and
reasonably expect to find in the report,
for the purpose of making a reasoned
and balanced judgement regarding the
Exploration Results, Mineral Resources
or Ore Reserves being reported. Where
relevant information is not supplied
an explanation must be provided to justify
its exclusion.
----------------------------------------------------
Grade The measurement of the quantity, percentage
or quality of a metal or mineral contained
within a mineral deposit.
----------------------------------------------------
Hard bank Ore material mined in the pit, regardless
of grade, which has a strength classification
exceeding moderately strong classification
(+12.5 MPa) and or hardness classification
exceeding medium hard rock and exceeds
an in-situ width of 0.5m. The material
occurs as continuous layers when intersected.
These layers require mechanical breaking
methods to be applied to mine. This material
is to be stockpiled separately in the
short term.
----------------------------------------------------
Indicated Mineral Resource An Indicated Mineral Resource is that
part of a Mineral Resource for which
quantity, grade or quality, densities,
shape and physical characteristics are
estimated with sufficient confidence
to allow the application of modifying
factors in sufficient detail to support
mine planning and evaluation of the economic
viability of the deposit.
----------------------------------------------------
Inferred Mineral Resource That part of a Mineral Resource for which
quantity and grade or quality are estimated
from limited geological evidence and
sampling.
----------------------------------------------------
Infill drilling Drilling designed to fill or close gaps
between existing drill holes.
----------------------------------------------------
JORC The Australasian Code for Reporting of
Exploration Results, Mineral Resources
and Ore Reserves. The JORC Code is produced
by the Australasian Joint Ore Reserves
Committee ('the JORC Committee').
----------------------------------------------------
JORC Code The Australasian Code for Reporting of
Exploration Results, Mineral Resources
and Ore Reserves 2012 edition (JORC Code),
is an internationally recognised professional
code of practice which sets minimum standards
for the public reporting of Exploration
Results, Mineral Resources and Ore Reserves.
----------------------------------------------------
Losses/Modifying Factors "Modifying Factors" or losses include
mining, metallurgical, economic, marketing,
legal, environmental, social and governmental
considerations.
----------------------------------------------------
Material Circumstances are considered material
if omission or misstatement of the associated
factor, constituent or information could
influence the economic decisions of users.
As a rule of thumb, this difference would
normally be equal to or exceed 10%.
----------------------------------------------------
Materiality A Public Report contains all the relevant
information that investors and their
professional advisors would reasonably
require, and expect to find, for the
purpose of making a reasoned and balanced
judgement regarding the Exploration Results,
Mineral Resources and Mineral Reserves
being reported.
----------------------------------------------------
Measured Mineral Resource That part of a Mineral Resource for which
quantity, grade or quality, densities,
shape, and physical characteristics are
estimated with confidence sufficient
to allow the application of Modifying
Factors to support detailed mine planning
and final evaluation of the economic
viability of the deposit.
----------------------------------------------------
Mineable Those parts of the ore body, both economic
and uneconomic, that can be extracted
during the normal course of mining.
----------------------------------------------------
Mineral Resource A concentration or occurrence of material
of economic interest in or on the Earth's
crust in such form, grade, quality and
quantity that there are reasonable prospects
for eventual economic extraction.
----------------------------------------------------
Mineralisation Any single mineral or combination of
minerals occurring in a mass, or deposit,
of economic interest. The term is intended
to cover all forms in which mineralisation
might occur, whether by class of deposit,
mode of occurrence, genesis or composition.
----------------------------------------------------
Mineral Resource A concentration or occurrence of material
of economic interest in or on the Earth's
crust in such form, grade, quality and
quantity that there are reasonable prospects
for eventual economic extraction.
----------------------------------------------------
Mt Million tonnes
----------------------------------------------------
Ore Lithological units with grade exceeding
4% P(2) O(5) . It can include C to G
Unit as described in the stratigraphic
column of the area.
----------------------------------------------------
Ore Reserve The economically mineable part of a Measured
and/or Indicated Mineral Resource. It
includes diluting materials and allowances
for losses, which may occur when the
material is mined or extracted
----------------------------------------------------
P(2) O(5) Phosphorus pentoxide
----------------------------------------------------
Percussion Drilling The process of boring into rock by means
of an air- or hydraulic-powered drill
bit.
----------------------------------------------------
Probable Ore Reserve The economically mineable part of an
Indicated, and in some circumstances,
a Measured Mineral Resource. The confidence
in the modifying factors applying to
a Probable Ore Reserve is lower than
that applying to a Proven Ore Reserve.
A Probable Ore Reserve has a lower level
of confidence than a Proven Ore Reserve
but is of sufficient quality to serve
as the basis for a decision on the development
of the deposit.
----------------------------------------------------
Proven Ore Reserve The economically mineable part of a Measured
Mineral Resource. A Proven Ore Reserve
implies a high degree of confidence in
the Modifying Factors. A Proven Ore Reserve
represents the highest confidence category
of an Ore Reserve estimate. The style
of mineralisation or other factors could
mean that Proven Ore Reserves are not
achievable in some deposits.
----------------------------------------------------
SACNASP South African Council for Natural Scientific
Professionals
----------------------------------------------------
SAMREC The South African Code for The Reporting
of Exploration Results, Mineral Resources
and Mineral Reserves (The SAMREC Code)
----------------------------------------------------
Sonic Boreholes A borehole derived through sonic drilling,
a drilling technique which utilises high-frequency
energy generated inside a sonic head
to advance a core barrel downwards through
a substrate.
----------------------------------------------------
Sonic Drilling Sonic is an advanced form of drilling
which employs the use of high-frequency,
resonant energy generated inside the
Sonic head to advance a core barrel or
casing into subsurface formations.
----------------------------------------------------
Tonnage An expression of the amount of material
of interest.
----------------------------------------------------
The information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
For further information visit www.kropz.com or contact:
Kropz Plc Via Tavistock
+44 (0) 207 920
Mark Summers (CEO) 3150
Grant Thornton UK LLP Nominated Adviser
Samantha Harrison
Harrison Clarke
George Grainger +44 (0) 20 7383
Ciara Donnelly 5100
Hannam & Partners Broker
Andrew Chubb +44 (0) 20 7907
Ernest Bell 8500
Tavistock Financial PR &
IR (UK)
Nick Elwes +44 (0) 207 920
Jos Simson 3150
Emily Moss kropz@tavistock.co.uk
R&A Strategic Communications PR (South Africa)
Charmane Russell +27 (0) 11 880
3924
charmane@rasc.co.za
About Kropz Plc
Kropz is an emerging African phosphate producer with projects in
South Africa and in the Republic of Congo. The vision of the Group
is to become a leading independent phosphate rock producer and to
develop into an integrated, mine-to-market plant nutrient company
focusing on sub-Saharan Africa.
-ENDS-
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END
MSCGPUUCGUPWURU
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