Resources & Reserves
Ore Reserves
Sundance’s High Grade Mineral Reserves currently total 517 Mt at 62.2% Fe for Stage One of the Project. The Ore Reserve contains low impurities of 4.46% Silica, 2.80% Alumina and 0.09% Phosphorus.
The Ore Reserve increase is based on the current inventory of 805.7 Mt of High Grade Hematite Resources at a grade of 57.3% Fe. The Ore Reserve includes 607 Mt of Indicated Mineral Resources being mined as Run of Mine ("ROM") Ore and fed to processing plants to produce 517 Mt of Saleable Product.This represents a conversion of 78 per cent of the Company’s total Indicated Mineral Resources. It is a 18 per cent increase to the previously reported Reserves figure (announced in December 2012) and will enable the Direct Shipping Ore (DSO) Stage One mine life of ten years to be extended to around 13 years..
Table 1 is the Global Summary of all High Grade Ore Reserves for the Mbalam-Nabeba Project. The updated Global Ore Reserves consist of the High Grade Ore Reserves from the Mbarga, Mbarga South, Nabeba, Nabeba South and Nabeba Northwest Deposits.
Table 1 Global High Grade Hematite Ore Reserve
|
Reserve Classification |
Tonnes (Mt) |
Fe (%) |
SiO2 (%) |
Al2O3 (%) |
P (%) |
LOI (%) |
|
| Ore Reserves Reported to ASX on 6 April 2011 | Probable | 251.5 | 63.6 | 3.64 | 2.54 | 0.08 | 2.42 |
| Ore Reserves Reported to ASX on 15 November 2011 | Probable | 352.3 | 62.4 | 5 | 2.6 | 0.09 | 2.6 |
| Ore Reserves Reported to ASX on 24 December 2012 | Probable | 436.3 | 62.6 | 4.43 | 2.55 | 0.09 | 2.78 |
| Ore Reserves Reported to ASX on 20 May 2015 | Probable | 517 | 62.2 | 4.46 | 2.80 | 0.09 | 3.3 |
The 2015 Ore Reserves were estimated in accordance with the JORC Code by Australian Mining Consultants Pty Ltd (AMC) and Sundance Resources. Please refer to the Competent Persons and JORC Codes (2012 Edition) statement for more information.
Table 2 High Grade Hematite Ore Reserves by Deposit
| Deposit |
Reserve Category |
Tonnes of Product (Mt) |
Fe in Product (%)) |
SiO2 in Product (%) |
Al2O3 in Product (%) |
P in Product (%) |
LOI in Product (%) |
| Mbarga | Probable | 134 | 63.1 | 4.98 | 2.70 | 0.08 | 2.09 |
| Mbarga South | Probable | 19.6 | 61.4 | 6.39 | 3.59 | 0.06 | 3.63 |
| Nabeba | Probable | 328 | 62.2 | 4.09 | 2.80 | 0.10 | 3.35 |
| Nabeba Northwest | Probable | 27.9 | 58.8 | 5.23 | 2.76 | 0.09 | 7.68 |
| Nabeba South | Probable | 7.6 | 61.1 | 3.58 | 2.59 | 0.12 | 6.45 |
| Total High Grade Hematite Ore Reserves | Probable | 517 | 62.2 | 4.46 | 2.80 | 0.09 | 3.31 |
Note: Ore Reserves are based on the estimated saleable product.
Table 3 High Grade Hematite Ore Reserves by Process Plant
| Deposit |
Reserve Category |
Tonnes of Product (Mt) |
Fe in Product (%)) |
SiO2 in Product (%) |
Al2O3 in Product (%) |
P in Product (%) |
LOI in Product (%) |
|
Mbarga DSO Plant |
Probable |
77.4 |
62.1 |
4.02 |
3.92 |
0.09 |
2.79 |
|
Mbarga Gravity Beneficiation Plant |
Probable |
76.4 |
63.8 |
6.32 |
1.69 |
0.06 |
1.77 |
|
Nabeba DSO Plant |
Probable | 243 |
62.7 |
3.43 |
3.03 |
0.10 |
3.23 |
|
Nabeba Gravity Beneficiation Plant |
Probable |
120 |
60.2 |
5.65 |
2.30 |
0.10 |
4.78 |
| Total High Grade Hematite Ore Reserves | Probable | 517 | 62.2 | 4.46 | 2.80 | 0.09 | 3.31 |
High Grade Hematite Resources
High Grade Hematite Resources currently total 805.7 Million tonnes at 57.3% Fe. The Indicated category of High Grade Mineral Resources represents 96% of the total, which further reinforces the assurance in drilling information and subsequent mineralogical and metallurgical studies. All Mineral Resources were estimated in accordance with the JORC Code (2012 Edition).
Table 4 High Grade Hematite Mineral Resources
|
Deposit
|
Category
|
Tonnes
(Mt) |
Fe
(%) |
SiO2
(%) |
Al2O3
(%) |
P
(%) |
LOI
(%) |
|
Mbalam
(All Deposits) |
Indicated
|
230.9
|
56.5
|
13.0
|
3.4
|
0.08
|
2.2
|
|
Inferred
|
28.8
|
56.6
|
16.4
|
2.9
|
0.08
|
1.3
|
|
|
Nabeba
(All Deposits) |
Indicated
|
545.9
|
57.6
|
7.2
|
4.8
|
0.11
|
4.6
|
|
Total High Grade Hematite Resources
|
805.7
|
57.3
|
9.2
|
4.3
|
0.10
|
3.3
|
|
Further breakdown of High Grade Resources by Deposit is detailed below, demonstrating the high confidence in the interpretation and geological continuity with 96% within the Indicated category:
Table 5 High Grade Resources by Deposit
|
Deposit
|
Mineralisation
|
Category
|
Tonnes
(Mt) |
Fe
(%) |
SiO2
(%) |
Al2O3
(%) |
P
(%) |
LOI
(%) |
|
Mbarga
|
High
Grade Hematite |
Indicated
|
206.1
|
56.8
|
12.8
|
3.2
|
0.08
|
2.1
|
|
Inferred
|
13.6
|
53.4
|
20.6
|
1.5
|
0.09
|
0.6
|
||
|
Mbarga South
|
Indicated
|
24.8
|
54.1
|
14.3
|
4.3
|
0.06
|
3.5
|
|
|
Metzmevin
|
Inferred
|
15.2
|
59.5
|
12.6
|
4.1
|
0.08
|
2.0
|
|
|
Nabeba Main
|
Indicated
|
485.7
|
58.1
|
7.0
|
4.8
|
0.11
|
4.2
|
|
|
Nabeba Northwest
|
Indicated
|
50.3
|
52.8
|
9.2
|
5.6
|
0.09
|
7.9
|
|
|
Nabeba South
|
Indicated
|
9.9
|
57.3
|
6.6
|
3.8
|
0.12
|
6.6
|
|
|
Sub Total
|
Indicated
|
776.8
|
57.3
|
8.9
|
4.4
|
0.10
|
3.9
|
|
|
Inferred
|
28.8
|
56.6
|
16.4
|
2.9
|
0.08
|
1.3
|
||
|
Total High Grade Hematite Resources
|
805.7
|
57.3
|
9.2
|
4.3
|
0.10
|
3.8
|
||
All six deposits are located close to the two proposed mining and processing centres at Nabeba in Congo and Mbarga in Cameroon, which are approximately 50km apart and will be joined by the proposed railway.
Itabirite Hematite
The total Project Itabirite Hematite Resource now stands at 5.638 billion tonnes at 33.4% Fe. This massive resource underpins Stage Two of the Project, which will commence approximately 10 years after the first DSO materials are mined and exported. Stage Two is expected to operate for a further minimum 15-20 years as defined in the Feasibility Study that was completed in March 2011.
Table 6 Global Itabirite Hematite Resources
|
Deposit
|
Mineralisation
|
Category
|
Tonnes
(Mt) |
Fe
(%) |
SiO2
(%) |
Al2O3
(%) |
P
(%) |
LOI
(%) |
|
Mbarga
|
Itabirite
Hematite |
Indicated
|
1,846
|
34.6
|
47.7
|
1.5
|
0.04
|
0.6
|
|
Inferred
|
2,078
|
31.8
|
48.6
|
2.9
|
0.05
|
1.3
|
||
|
Nabeba
|
Inferred
|
1,714
|
34.1
|
42.3
|
2.7
|
0.05
|
2.6
|
|
|
Sub Total
|
Indicated
|
1,846
|
34.6
|
47.7
|
1.5
|
0.04
|
0.6
|
|
|
Inferred
|
3,792
|
32.8
|
45.8
|
2.8
|
0.05
|
1.9
|
||
|
Total Itabirite Hematite Resources
|
5,638
|
33.4
|
46.4
|
2.4
|
0.05
|
1.9
|
||
Sundance drilled its first exploration hole for the Mbalam Project in June 2007. The current Resource estimate now incorporates assay results from over 1,100 drill holes totalling more than 162,000 metres of drilling.
The resource definition and development drilling undertaken by the company has primarily focused on the two principal deposits at Mbarga (in the Republic of Cameroon) and Nabeba (in the Republic of Congo). However the potential to increase total resources even further remains significant with numerous exploration targets identified for future drilling.
