Page 21 - Sundance Resources Ltd Annual Report 2013

SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2013 19
grading 36.5% Fe. This means the Project has
now defined 2.33Bt of Itabirite Resources at Mbarga
in Cameroon and 1.72Bt at Nabeba in the Republic
of Congo.
These massive Itabirite Resources are geologically-
located directly below the High-Grade Hematite
Resources and will underpin Stage Two of the Project.
Stage Two provides the long term mine life benefits of
at least an additional 15 years following completion of
the Stage One DSO production.
To the end of June 2013, Sundance had completed
1,192 drill holes on the Project area for a total of
167,358m of drilling.
While sufficient Mineral Resources and Reserves have
now been defined to underpin the DFS, Sundance
also continues to invest in its exploration activities to
evaluate expansion options for the Project well
into the future.
High Grade Hematite Ore Reserves
The High-Grade Hematite Ore Reserve for
Stage One of the Project increased during
the year to 436.3Mt grading 62.6% Fe.
ORE RESERVES, MINERAL
RESOURCES AND EXPLORATION
TARGETS
Throughout the year, the Mbalam-Nabeba Iron Ore Project’s Reserves and Mineral Resources were
increased significantly and all permit holdings were renewed and maintained in compliance with
Cameroon and Congo statutory obligations.
Of most significance was the increase of Stage One
High-Grade Hematite Reserves to 436.3Mt grading
62.6% Fe, as announced in December 2012. This is
an increase of 24 per cent over last year’s reported
Reserves figure.
This upgraded estimate is significant because
it underpins more than 12 years of high-grade
production at 35 million tonnes a year, as planned
under Stage One of the Project. Stage One originally
had a forecast life of only 10 years but increases in the
High-Grade Hematite Reserve will enable this to be
extended to approximately 12 years.
All Ore Reserves have been estimated in accordance
with the JORC Code (2004 edition) by Australian
Mining Consultants (AMC).
The Ore Reserve increase is based on the current
inventory of 775.4Mt of High-Grade Hematite
Resources at 57.2% Fe, representing a conversion
of 58% of the total Indicated Mineral Resources
(748.0Mt).
The first stage of resource drilling of the Itabirite at the
Nabeba Deposit was completed in September 2012.
Evaluation of this data resulted in a significant increase
of the Project Itabirite Hematite Resource to 4.05Bt
Ore Reserves
(Ore Products)
Reserve
Classification
Tonnes
(Mt) of
product
Fe
(%) in
product
SiO2
(%) in
product
AI2O3
(%) in
product
P
(%) in
product
LOI
(%) in
product
Mbarga and Mbarga South
DSO Product Probable 83.9 63.6 4.6 2.3 0.08 1.7
Transition Upgraded
Product
Probable 43.1 63.0 8.0 1.2 0.05 1.3
Total Mbarga and
Mbarga South Product
Probable 127.0 63.4 5.8 1.9 0.07 1.6
Nabeba, Nabeba North West and Nabeba South
DSO Product Probable 249.7 62.8 3.3 3.0 0.10 3.1
Sub-Grade and Transition
Upgraded Product
Probable 59.6 60.1 6.5 2.1 0.08 4.0
Total Nabeba, Nabeba
North West and Nabeba
South Product
Probable 309.3 62.3 3.9 2.8 0.09 3.3
Total Ore Reserves Probable 436.3 62.6 4.4 2.6 0.09 2.8
Notes:
Data is reported to significant figures and differences may occur due to rounding
Mineral Resources are reported inclusive of Ore Reserves