Page 41 - Sundance Resources Ltd Annual Report 2013

SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2013 39
predominately a 100m x 100m pattern (with some closer-
spaced drilling on selected north-south lines on the northern
ridge). Sundance has completed significant drilling at the main
Nabeba Deposit of which approximately 20% has been
diamond core and 80% RC (Reverse Circulation) drilling with
face-sampling hammers.
Drilling at the smaller Nabeba Northwest and Nabeba South
Deposits has been by predominately RC method although two
diamond holes were drilled at Nabeba Northwest to ensure
similar physical properties and densities applied.
The geological model at the Nabeba Main Deposit is represented
by an area approximately 2.5km (east-west) x 3km (north-south).
Nabeba Northwest covers a smaller area of approximately 1km x
1km and Nabeba South smaller again at 500m x 500m.
Grade has been estimated by Ordinary Kriging on composited
sample results. The mineralisation and grade interpolation of
drill results has been constrained by a 3-D wireframe which
encompasses all of the near-surface contiguous High-Grade
material and as such, no cut-off grades for High-Grade have
been required or applied. At the time of modelling, 92% of
drill sample results were full XRF analyses from Ultra Trace
Laboratories (Perth, Western Australia) and the remaining 8%
were Thermo Niton XRF (Fe only) results from the Sundance
Site laboratory.
Cut-off grades for the Nabeba deposits have changed since
the previous estimation (September, 2011) and now no cutoff
grades have been applied. Resultant grades are simply a result
of the grades which lie within carefully defined mineralised
domain boundaries.
A digital terrain surface (based on recent Lidar and ground
surveys) has been used to limit extrapolation of the mineralisation
to the topography of the Nabeba hill. The resource modelling has
used 25m x 25m x 5m blocks with sub-blocks to honour the
constraining surfaces.
Drillhole collar survey has utilised DGPS surveying at all Deposits.
A density of 2.65 t/m3 has been used for the ‘Supergene’ and
‘Transition’ domains of High-Grade Hematite, with a density of
2.50 t/m3 for the ‘Sub-Grade’ and ‘Surficial’ zones. All density
values are based on results from an assessment of physical
density measurements of current drill core and on down-hole
density determination by Surtron.
Core and sample recovery has been recorded during
logging. All drill hole data is stored in an acQuire database
and imported data is fully validated. Assaying QA/QC was
undertaken using field duplicates, laboratory replicates and
standards with comprehensive reporting on laboratory
precision and accuracy.
Country Location Permit Type Holder
Republic of
Cameroon
Mbalam Exploration Permit
Arrete No.003207 (EP 92)
Cam Iron SA (i)
Republic of
Congo
Nabeba-
Bamegod
Mining Permit
Decree No. 2013-45
Congo Iron SA (ii)
Republic of
Congo
Ibanga Research Permit
Decree No. 2013-405
Congo Iron SA (ii)
Details of Tenements
The Company, through its subsidiary companies, holds the following
exploration/mineral research and mining permits.
(i) Cam Iron SA holds 100% interest; Cam Iron SA is a 90%-owned subsidiary of Sundance Resources Ltd.
(ii) Congo Iron SA holds 100% interest; Congo Iron SA is an 85%-owned subsidiary of Sundance Resources Ltd.
(iii) Under the concluded Key Terms the Cameroon Government has a right to a 10% free carry interest in the project companies
pursuant to the Cameroon Mining Code and an additional 5% interest where the equity requirements can be loaned to the
State and then repaid with interest out of dividends.
(iv) Congo Government has a right to a 10% interest in Congo Iron SA pursuant to the Congo Mining Code.
(v) Should both Governments exercise rights for interest in Cam Iron SA and Congo Iron SA, then Sundance’s interests in each
would reduce to 76.5% in each company
Forward-Looking
Statement
Certain statements made during or in
connection with this communication, including,
without limitation, those concerning the
economic outlook for the iron ore mining
industry, expectations regarding iron ore prices,
production, cash costs and other operating
results, growth prospects and the outlook of
Sundance’s operations including the likely
commencement of commercial operations of
the Mbalam-Nabeba Project and its liquidity
and capital resources and expenditure, contain
or comprise certain forward-looking statements
regarding Sundance’s exploration operations,
economic performance and financial condition.
Although Sundance believes that the
expectations reflected in such forward-looking
statements in this Report are reasonable, no
assurance can be given that such expectations
will prove to have been correct.
Accordingly, results could differ materially
from those set out in the forward-looking
statements as a result of, among other factors,
changes in economic and market conditions,
success of business and operating initiatives,
changes in the regulatory environment and other
government actions, fluctuations in iron ore
prices and exchange rates and business and
operational risk management.
Sundance Resources undertakes no
obligation to update publicly or release any
revisions to these forward-looking statements
to reflect events or circumstances after
today’s date or to reflect the occurrence of
unanticipated events.