Kalman Mineral Resource

Geological Modelling

The Kalman Deposit was modelled as two geological/grade domains based on the dominant economic mineral.  A broader copper domain that averages approximately 90 m in width and an internal molybdenum domain within the copper domain that averages approximately 25 m in width.  The molybdenum domain is a molybdenum-rhenium rich zone based on encompassing any elevated molybdenum mineralisation, nominally greater than 100 ppm Mo.  The molybdenum domain is predominantly located centrally within the copper domain within the complex sequence of altered meta-sediments.  The copper domain forms an encompassing copper-gold zone also predominantly within the sequence of altered meta-sediments and was based on encompassing elevated copper mineralisation, nominally greater than 300 ppm Cu.

The impact of weathering is yet to be fully tested, with no indications to date of any significant depletion or enrichment near surface.

Block Grade Estimation

As there were no significant correlations between Au, Cu and Mo at Kalman these grade variables were estimated independently.  Although there is a strong correlation between Mo and Re these grade variables were still estimated independently for this model.

Grade estimation was by inverse distance (ID) for each domain and grade variable. Grade continuity was assumed to be anisotropic for all grade variables along the strike of the deposit (015°).  For Mo-Re hard boundaries were used for Domain 200.  Soft boundaries were used between all domains except for the contact with Domain 0 for Cu-Au-Ag grade variables.  High grade cuts were applied to the data.

Resource Classification

The Kalman Deposit was classified entirely as an Inferred Mineral Resource based primarily on the data spacing and the inclusion of some historical data. 

Under the JORC Code 2004 an “Inferred Mineral Resource” is that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence and assumed but not verified geological and / or grade continuity.  It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings, and drillholes which may be limited or of uncertain quality and reliability.

Within the CIM definitions an “Inferred Mineral Resource” is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity.  The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drillholes. 

These definitions are comparable as they emphasise both data density and geological and grade continuity.  At Kalman the nominal 100 m drill spacing is sufficient to define broad geological continuity of the host rocks and mineralisation but insufficient to identify detailed grade trends within the deposit.  On this basis alone an Inferred Resource classification is appropriate. 

Resource Estimate

The mineral resources have been estimated based on the assumption of a large scale bulk mining and flotation process route.  Based on the proposed operational scenario and taking into account the type of deposit, style of mineralisation, geometry, location of infrastructure, prevailing metal prices, the Mineral Resource is reported with a 0.2% Cu cut-off grade in Domain 100 and 0.02% Mo in Domain 200 above the -100 mRL, assuming potential open pit mining techniques, whilst material below -100 MRL is assumed to be mined by underground technique so has been reported with a 0.5% Cu cut-off grade in Domain 100 and 0.05% Mo in Domain 200.

The estimated Mineral Resource is presented in Table 1 and by Exploration Permit for Minerals (EPM) in Table 2 and Table 3. 

Resource Estimate Risk

The principle resource estimation risk is the use of historic data in the upper portions of the model.  As this data was generally collected within 150 m of surface, it is above the main molybdenum zone as we currently interpret its geometry and the risk is thus considered small.

The second principle risk is the question of geologic and grade continuity at the current 100 m by 100 m drill spacing.  Geologic continuity is considered reasonable with similar lithology and structure identifiable on adjacent sections.  Macro scale grade continuity is considered reasonable with broad zones of alteration and mineralisation appearing in similar positions on adjacent sections.  Meso scale grade continuity is a different matter but this is adequately reflected in the use of an Inferred Category for the mineral resource. 

Table 1 Kalman Inferred Mineral Resource
Domain Cut-off
Grade		 Mt Cu
(%)		 Mo
(%)		 Re
(g/t)		 Au
(g/t)		 Cu
(t)		 Mo
(t)		 Re
(Oz)		 Au
(Oz)
Copper 0.2%
Cu		 32.0 0.34 0.005 - 0.15 110 300 1500 - 156 700
Molybdenum 0.02%
Mo		 24.9 0.26 0.11 2.79 0.13 64 000 27 300 2 232 900 102 300
Open Pit 56.9 0.31 0.05 1.22 0.14 174 300 28 800 2 232 900 259 000
Copper 0.5%
Cu		 2.5 0.66 0.004 - 0.37 16 500 100 - 29 700
Molybdenum 0.05%
Mo		 1.3 0.29 0.12 2.15 0.14 3900 1500 93 300 6200
Underground 3.8 0.53 0.04 0.75 0.29 20 400 1600 93 300 35 900
Total 60.8 0.32 0.05 1.19 0.15 194 700 30 400 2 326 300 294 900
Table 2 Kalman Inferred Mineral Resource (EPM 14232)
Domain Cut-off
Grade		 Mt Cu
(%)		 Mo
(%)		 Re
(g/t)		 Au
(g/t)		 Cu
(t)		 Mo
(t)		 Re
(Oz)		 Au
(Oz)
Copper 0.2%
Cu		 16.6 0.34 0.007 - 0.15 56 700 1200 - 80 600
Molybdenum 0.02%
Mo		 7.4 0.34 0.12 2.56 0.17 25 300 8900 609 200 40 800
Open Pit 24.0 0.34 0.04 0.79 0.16 82 000 10 000 609 200 121 500
Copper 0.5%
Cu		 0.07 0.56 0.001 - 0.17 400 0 - 400
Molybdenum 0.05%
Mo		 - - - - - - - - -
Underground 0.07 0.56 0.001 - 0.17 400 0 - 400
Total 24.1 0.34 0.04 0.79 0.16 82 400 10 000 609 200 121 900
Table 3 Kalman Inferred Mineral Resource (EPM 13870)
Domain Cut-off
Grade		 Mt Cu
(%)		 Mo
(%)		 Re
(g/t)		 Au
(g/t)		 Cu
(t)		 Mo
(t)		 Re
(Oz)		 Au
(Oz)
Copper 0.2%
Cu		 15.3 0.35 0.002 - 0.15 53 600 400 - 76 100
Molybdenum 0.02%
Mo		 17.5 0.22 0.11 2.88 0.11 38 700 18 400 1 632 700 61 400
Open Pit 32.9 0.28 0.06 1.54 0.13 92 300 18 800 1 632 700 137 500
Copper 0.5%
Cu		 2.4 0.66 0.004 - 0.38 16 100 100 - 29 300
Molybdenum 0.05%
Mo		 1.3 0.29 0.12 2.15 0.14 3900 1500 93 300 6200
Underground 3.8 0.53 0.04 0.77 0.29 20 000 1600 93 300 35 500
Total 36.7 0.31 0.06 1.46 0.15 112 300 20 400 1 717 000 173 000