Ore Reserves

The Ore Reserves declared at Arcadia are defined as the portion of the in situ Measured and Indicated Mineral Resources estimates declared by the Company on 14 March 2017. Ore Reserves for the Arcadia Lithium Project are based upon a cut-off of 1 % Li2O and are contained within the practical pit design / profile with the effects of mining dilution, economic mining recovery and economic metallurgical recovery applied. It must be noted that a component of Inferred Resources has been delineated within the PFS pit design. This material has therefore accordingly been declared as part of the in pit mineral inventory, and not Ore Reserves until as such time the infill drilling and subsequent Mineral Resource upgrade are completed.

The area currently delineated by the Inferred Resource is confined to the Lower Main and Upper Pegmatites that have demonstrated strike and downdip continuity. This has been confirmed from logging of the recently completed close spaced infill drilling (assays pending).  A significant portion of these near-surface Inferred resources therefore have a strong likelihood of being upgraded to the Indicated Category.

This Ore Reserve value therefore represents the crushing plant tonnage feed and head grade for the LoM.

The current pit optimisation procedures utilised in definition of the final pit design have taken the following factors and assumptions into consideration:

  • A mining cost for RoM ore to crusher of approximately USD13/t ore
  • A total processing and export cost of approximately USD66/t ore
  • An overall process recovery of 71 % of the Li2O values;
  • Metallurgical testwork has indicated there are no deleterious elements that would impact the sale of products
  • Petalite concentrate glass and ceramic grade >4 % Li2O Price of USD400/t
  • Spodumene concentrate battery grade >6 % Li2O Price of USD540/t
  • State Royalty of 2 %
  • Minerals Marketing Corporation of Zimbabwe (MMCZ) marketing fees of 0.875 %
  • A component of Inferred Resources located within the pit mineral inventory

 

Lithium concentrate prices have been based on a number of external reports and an independent lithium marketing consultant both for the chemical and glass/ceramics markets.

The current Ore Reserve is based on all Measured and Indicated Resources (based on Mineral Resources declared March 2017) and in pit mineral inventories >1 % Li2O declared as part of this PFS and based on PFS inputs is detailed in the table below.

Arcadia Lithium Deposit Ore Reserve Estimate (>1 % Li2O)

Category

Tonnes (Mt)

Li2O (%)

Ta2O5 (ppm)

Li2O (t)

Ta2O5 (Mlbs)

Fe2O3 (%)

Proven

0.0

0.00

0

0

0.0

0.00

Probable

15.8

1.34

125

212,000

4.3

1.02

TOTAL

15.8

1.34

125

212,000

4.3

1.02

 

Drilling Completed over the Arcadia Lithium Deposit and PFS pit outline