REG - Kropz PLC - Update Mineral Resource Estimate - Elandsfontein
20/06/2024 08:00
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RNS Number : 2029T Kropz PLC 20 June 2024
20 June 2024
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").
The significant write-down in declared Ore Reserves from 2018 to 2022 has been
partially reversed in the 2023 Ore Reserve estimate, largely due to the
additional infill drilling which was completed in 2023.
It is expected that the future drilling campaigns will continue to improve the
Mineral Resource estimates from Inferred to Measured or Indicated categories
and will enable improved conversion of the Mineral Resources to Reserves.
While both the declared Reserve tonnes and grade have increased, the grade and
tonnage estimate of the Resource has decreased. This aligns to the improved
confidence in the grade estimation of the deposit and reflects the declining
grade of the deposit over its life.
Summary
· The 2023 Reserve estimate was positively affected by the completed
infill and exploration drilling, which significantly improved the total
declared Measured and Indicated Mineral Resources. The Ore Reserves are stated
at 30 September 2023, and account for the pit depletions up until the end of
September 2023;
· Total Measured and Indicated resource tonnage has increased by
approximately 72%, while the Total resource tonnage has reduced by 30%;
· Decrease in total phosphate resources at Elandsfontein to 74.23
million tonnes ("Mt") from 106.58 million tonnes in 2022;
· Total Reserves are estimated at 26.63 Mt at a P(2)O(5) grade of
9.38% of which 16.56 Mt is Proven at 10.25% P(2)O(5,) This compares to
previous estimate at 17.42 Mt at 9.19% P(2)O(5.)
Louis Loubser, Chief Executive Officer commented:
"Our planned infill drilling campaign has proved worthwhile. Although the
changes in our Resource estimate have been substantive, our ability to
accurately predict the spatial position and grade of the ore body has improved
greatly. This has led to further accuracy and prediction improvements which
are reflected in an encouraging increase in our mineable ore Reserves."
ELANDSFONTEIN RESOURCE STATEMENT AS OF 30 SEPTEMBER 2023
CLASS TONNES (Mt) P(2)O(5) (%) SiO(2) (%) Al(2)O(3) (%) MgO (%) Fe(2)O(3) (%) CaO (%) CONTAINED P(2)O(5) (Mt)
Measured 19.96 10.25 63.86 1.22 0.15 0.79 14.68 2.05
Indicated 12.78 7.68 64.30 1.30 0.15 0.88 11.30 0.98
Total Measured & Indicated 32.74 9.24 64.03 1.25 0.15 0.83 13.36 3.03
Inferred 41.49 6.30 66.26 1.39 0.15 0.86 9.52 2.61
Total Resources 74.23 7.60 65.28 1.33 0.15 0.85 11.21 5.64
NETT ATTRIBUTABLE (74% TO THE COMPANY)
Measured 14.77 10.25 63.86 1.22 0.15 0.79 14.68 1.51
Indicated 9.45 7.68 64.30 1.30 0.15 0.88 11.30 0.73
Total Measured & Indicated 24.23 9.24 64.03 1.25 0.15 0.83 13.36 2.24
Inferred 30.70 6.30 66.26 1.39 0.15 0.86 9.52 1.93
Total Resources 54.93 7.60 65.28 1.33 0.15 0.85 11.21 4.17
Note: All numbers are reported to two significant figures. Rounding may cause
minor discrepancies to the numbers reported in this table.
The 2023 Mineral Resource Estimate (MRE) for Elandsfontein reflects
significant changes compared to 2022 and was notably affected by the completed
infill and exploration drilling. The total Measured and Indicated resources
have increased by approximately 72%, rising from 19.02 Mt in 2022 to 32.74 Mt
in 2023, despite a slight decrease in the P(2)O(5) grade from 9.54% to 9.24%.
Conversely, the total Inferred resources have decreased substantially from
87.56 Mt in 2022 to 41.49 Mt in 2023, accompanied by a decline in the P(2)O(5)
grade from 7.68% to 6.30%. This reduction in Inferred resources and the
simultaneous increase in Measured and Indicated resources indicate improved
confidence in the resource estimates due to the successful infill drilling
program. These changes highlight the enhanced accuracy in predicting the
spatial distribution and grade of the ore body, leading to a more reliable
reserve estimate and better strategic planning for future mining operations.
DIFFERENCE 2023 VS 2022 RESOURCE DECLARATION
CLASS TONNES (Mt) P(2)O(5) (%) SiO(2) (%) Al(2)O(3) (%) MgO (%) Fe(2)O(3) (%) CaO (%) CONTAINED P(2)O(5) (Mt)
Total Measured and Indicated 2023 32.74 9.24 64.03 1.25 0.15 0.83 13.36 3.03
Total Measured and Indicated 2022 19.02 9.54 70.45 1.15 0.14 0.88 13.64 1.81
Difference Measured and Indicated 13.72 -0.30 -6.42 0.10 0.01 -0.05 -0.28 1.22
Inferred 2023 41.49 6.30 66.26 1.39 0.15 0.86 9.52 2.61
Inferred 2022 87.56 7.68 73.92 1.20 0.16 1.03 11.15 6.72
Difference Inferred -46.07 -1.38 -7.66 0.19 -0.01 -0.17 -1.63 -4.11
Note: All numbers are reported to two significant figures. Rounding may cause
minor discrepancies to the numbers reported in this table.
The 2023 reserve statement for Elandsfontein reflects significant improvements
compared to the 2022 estimates, driven by changes in the resource base and a
better understanding of the modifying factors to be applied. The total proven
reserves have increased substantially from 7.31 Mt at a P(2)O(5) grade of
10.71% in 2022 to 16.56 Mt at a grade of 10.25% in 2023. Meanwhile, the total
probable reserves have remained relatively stable, showing a slight decrease
from 10.11 Mt at a P(2)O(5) grade of 8.09% in 2022 to 10.07 Mt at a grade of
8.01% in 2023. As a result, the combined total of proven and probable reserves
has risen from 17.42 Mt at a P(2)O(5) grade of 9.19% in 2022 to 26.63 Mt at a
grade of 9.38% in 2023.
These changes are largely attributable to the successful completion of infill
and exploration drilling, which significantly improved the total declared
Measured and Indicated Mineral Resources. Additionally, the enhanced
understanding of modifying factors, such as mining, metallurgical, economic,
and environmental considerations, has contributed to a more accurate and
reliable reserve estimate. This improved accuracy in predicting the spatial
distribution and grade of the ore body has bolstered confidence in the reserve
estimations and strategic planning for future mining operations.
ELANDSFONTEIN RESERVE STATEMENT AS AT 30 SEPTEMBER 2023
CLASSIFICATION TONNES (Mt) P(2)O(5) (%) CONTAINED P(2)O(5) (Mt)
Proven 16.56 10.25 1.70
Probable 10.07 8.01 0.81
Total Reserve* 26.63 9.38 2.50
NETT ATTRIBUTABLE (74% TO THE COMPANY)
Proven 12.26 10.25 1.26
Probable 7.45 8.01 0.60
Total Reserve* 19.70 9.38 1.85
*Modifying Factors:
· Mining loss of 2% applied
· 2.25% Dilution applied
DIFFERENCE 2022 VS 2023 RESERVE DECLARATION
RESOURCE CLASSIFICATION TONNES (Mt) P(2)O(5) (%) CONTAINED P(2)O(5) (Mt)
Total Proven 2023 16.56 10.25 1.70
Total Proven 2022 7.31 10.71 0.78
Total Probable 2023 10.07 8.01 0.81
Total Probable 2022 10.11 8.09 0.82
Total Proven and Probable 2023 26.63 9.38 2.50
Total Proven and Probable 2022 17.42 9.19 1.60
Difference Proven and Probable 9.21 0.19 0.9
Note: All numbers are reported to two significant figures. Rounding may cause
minor discrepancies in this table
Competent Persons Statement
The corresponding JORC Table 1 relating to the 2023 MRE and Reserve is
available on the Company's website at:
https://www.kropz.com/investors/press-releases/2024
(https://www.kropz.com/investors/press-releases/2024)
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, Unit 1, Floor 1, Building 12
Thornhill Office Park, Bekker Rd, Midrand, 1686, RSA, 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.
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.
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 (about%3Ablank) or contact:
Kropz Plc Via Tavistock
Louis Loubser (CEO) +44 (0) 207 920 3150
Grant Thornton UK LLP Nominated Adviser
Samantha Harrison +44 (0) 20 7383 5100
Harrison Clarke
Ciara Donnelly
Hannam & Partners Broker
Andrew Chubb +44 (0) 20 7907 8500
Ernest Bell
Tavistock Financial PR & IR (UK)
Nick Elwes +44 (0) 207 920 3150
Jos Simson kropz@tavistock.co.uk
R&A Strategic Communications PR (South Africa)
Charmane Russell +27 (0) 11 880 3924
Marion Brower charmane@rasc.co.za (mailto:charmane@rasc.co.za)
marion@rasc.co.za (mailto:marion@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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