TIDMWRES

RNS Number : 0331C

W Resources PLC

05 February 2020

5 February 2020

W Resources Plc

("W" or the "Company")

Régua Commencement and Updated Régua JORC Resource Estimate

W Resources Plc (AIM:WRES), the tungsten, tin and gold mining company with assets in Spain and Portugal, is pleased to announce the start of operations at its Régua tungsten mine in Northern Portugal following the release of an updated Régua Australasian Joint Ore Reserves Committee ("JORC") resource estimate.

Highlights

-- JORC resource estimate update confirms 4.47Mt at 0.27% WO(3) with initial mining focused on the higher-grade areas of the orebody close to the surface.

   --    Operations commence to access and start trial mining of thick high-grade tungsten ore zones 
   --    The process plant will be built on lean capital cost estimate of EUR1.5m 

-- Plant configuration includes equipment from La Parrilla tailings plant, spirals from Wolf Minerals Limited and selected new equipment

JORC Resource Estimate

In preparation for the development and mine development work, Golder Associates Pty Ltd ("Golder") has updated the JORC compliant resource estimates for the project incorporating the results of 10,308m of drilling conducted over the last few years. The previous JORC complaint resource estimates were announced by the Company on 27 October 2015.

The revised JORC resource estimates are set out in the below table:

 
    Régua Mineral Resource as at 30 January 2019 reported at 
                      a 0.1% WO(3) cut-off grade 
--------------------------------------------------------------------- 
 Class               Tonnes (Mt)     WO(3) (%)       WO(3) metal (kt) 
--------------  ----------------  ------------  --------------------- 
 Measured                      -             -                      - 
 Indicated                  3.74          0.28                   10.6 
 Inferred                   0.72          0.21                    1.5 
--------------  ----------------  ------------  --------------------- 
 Total *                    4.47          0.27                   12.1 
--------------  ----------------  ------------  --------------------- 
 * NB: Numbers may not add exactly due to rounding. 
 

Golder resources statement is available on the W Resources website: https://wresources.com/projects/regua/

Mine Start

Mining operations will commence in February with the development drives in the first of two and potentially three adits (near horizontal tunnels) to allow W to access and start mining the thick high-grade ore zones and test two different mining methods: room and pillar; and sublevel stoping. Adit mining has been contracted to Empresa Portuguesa de Obras Subterrâneas, S.A. ("EPOS"), a highly experienced Portuguese mining operator.

Ore will be trucked on the newly constructed haul road to the existing crusher plant at the process plant site. A waste landfill will be created in a nearby quarry improving the restoration stage of the benches. A contract for fixed unit cost haulage and crushing was signed in June 2019 with Francisco Pereira Marinho e Irmãos, S.A. ("FPM").

Plant Configuration

The development of the Régua trial mine process plant is being delivered on a lean capital basis and will leverage the existing crusher plant, selected equipment from the La Parrilla tailings plant in Spain, including parts of the old concentrator plant, spirals purchased from Wolf Minerals Limited administrators and selected new equipment.

In the initial trial mine operation, high-grade Régua ore will be processed using crushing, mill and spiral equipment to produce an 8-12% WO(3) concentrate which will then be trucked to the La Parrilla processing plant for upgrade to 60% WO(3) concentrate and purification. This will maximise synergies between La Parrilla and Régua and keep the processing plant capital cost to an estimate of EUR1.5m. The incremental concentrate tonnage from Régua will boost final La Parrilla concentrate production.

Michael Masterman, Chairman of W Resources commented: "This will be W's second tungsten mine to come on stream, following the start of production at La Parrilla at the end of last year. It's great to kick-off mining and development of Régua, where we see significant synergies between La Parrilla and Régua with materially lower capital costs at the Régua plant site and increased La Parrilla final concentrate production.

"The trial mine development of Régua adds significant value to this important Portuguese tungsten mine and de-risks the project while at the same time initiating first Régua tungsten production. The development will have a positive environmental contribution with the progressive rehabilitation of an existing quarry and will create jobs in the northern region of Portugal.

"It was important prior to the commencement of initial trial mine operations to update our resource estimates and it's pleasing to confirm indicated resources of 3.74m tonnes at 2,800ppm WO(3) which is nearly 3-times the grade of the La Parrilla deposit in Spain. The initial 4-6 months of mining will provide the additional information to assess reserve estimates and the results from the trial mine will feed into full mine production. The technical information gained in the trial mine phase will allow us to evaluate if we build a larger scale plant at Régua which will yield costs reductions or alternatively continue with the production of intermediate concentrate production and processing at La Parrilla. Mining operations and associated optimisation will be enhanced through this trial mine phase."

La Parrilla has continued to increase production going into the New Year with initiative to increase production rates being rapidly implemented and due for completion in February. W Resources has moved to full quarterly production reporting and will provide a full update in April following the close of the March quarter.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Enquiries:

 
 W Resources Plc                  Grant Thornton UK LLP 
  Michael Masterman                Colin Aaronson / Seamus Fricker 
  T: +44 (0) 20 7193 7463          T: +44 (0) 20 7383 5100 
  www.wresources.com 
 Joint Broker                     Joint Broker 
  Turner Pope Investments (TPI)    Alternative Resource Capital / 
  Ltd                              Shard Capital 
  Andy Thacker / Zoe Alexander     Alex Wood 
  T: +44 (0) 203 657 0050          T:+44 (0) 207 186 9004 
  www.turnerpope.com               www.altrescap.com 
                                   Damon Heath 
                                   T:+44 (0) 207 186 9952 
                                   www.shardcapital.com 
 Alma PR 
  Justine James 
  M: +44 (0) 7525 324431 
  wres@almapr.co.uk 
 

The information in this report which relates to Mineral Resources is based on information provided to and compiled by Mr Andrew Weeks, who is a full-time employee of Golder Associates Pty Ltd, and a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Weeks has sufficient relevant experience to the style of mineralisation and type of deposits under consideration and to the activity for which he is undertaking to qualify as a Competent Person as defined in the JORC Code (2012 Edition).

Annexure 1:

Section 1: Sampling Techniques and Data

 
 JORC Code Assessment Criteria                Comment 
 Sampling Techniques                          Rock chip sampling from outcrops 
  Nature and quality of sampling               and trenches was performed to determine 
  (e.g. cut channels, random chips,            whether prospective tungsten mineralised 
  or specific specialised industry             lithology (skarn) may yield any anomalous 
  standard measurement tools appropriate       tungsten values and not to determine 
  to the minerals under investigation,         average grades. These samples have 
  such as downhole gamma sondes,               not been used in this resource estimate. 
  or handheld XRF instruments,                 Samples weighing from 500 g to 1 
  etc.). These examples should                 kg were taken from each sampling 
  not be taken as limiting the                 location, and its position was recorded 
  broad meaning of sampling.                   with a hand-held GPS. 
  Include reference to measures                Diamond drilling was used to obtain 
  taken to ensure sample representivity        core samples. 
  and the appropriate calibration              Sampled intervals included visual 
  of any measurement tools or systems          scheelite bearing mineralised skarns 
  used.                                        identified under UV light and two 
  Aspects of the determination                 1 metre samples taken immediately 
  of mineralisation that are Material          above and immediately below the mineralised 
  to the Public Report. In cases               sample. 
  where 'industry standard' work               All rock samples were bagged for 
  has been done this would be relatively       shipment to the laboratory inside 
  simple (e.g. 'reverse circulation            cotton bags with the number written 
  drilling was used to obtain 1                on the outside. The cotton bag is 
  m samples from which 3 kg was                put in a plastic bag which includes 
  pulverised to produce a 30 g                 a tag with the sample number inside 
  charge for fire assay'). In other            as well as the same number written 
  cases, more explanation may be               on the outside of the plastic bag, 
  required, such as where there                in both cases in waterproof ink. 
  is coarse gold that has inherent 
  sampling problems. Unusual commodities 
  or mineralisation types (e.g. 
  submarine nodules) may warrant 
  disclosure of detailed information. 
                                             ------------------------------------------------------------ 
 Drilling Techniques                          Core was obtained with an Acker drill 
  Drill type (e.g. core, reverse               rig with wireline capability. 
  circulation, open-hole hammer,               B146 (132 mm recovered core) was 
  rotary air blast, auger, Bangka,             used for ensuring high recovery along 
  sonic, etc.), and details (e.g.              the weathered/fractured surficial 
  core diameter, triple or standard            rock mass, while otherwise PWL (85 
  tube, depth of diamond tails,                mm recovered core) and HWL (63.5 
  face--sampling bit or other type,            mm recovered core) was used. 
  whether core is oriented and                 All drill holes were surveyed at 
  if so, by what method, etc.).                the collar surface by high-resolution 
                                               topographic survey. Data for Eastings, 
                                               Northings and RL was recorded in 
                                               PT TM06/ETRS89, WGS84-UTM-ZONE29N. 
                                               All drill holes have been subject 
                                               to downhole surveying to record variations 
                                               from the original hole inclination. 
                                               Surveys have been recorded at varying 
                                               intervals, using EZ-Trac from Reflex 
                                               Instruments. 
                                               Core was oriented in selected holes 
                                               using ACT II RD from Reflex Instruments. 
                                             ------------------------------------------------------------ 
 Drill Sample Recovery                        Sample recovery was assessed visually, 
  Method of recording and assessing            recorded onto a logging sheet, photographed 
  core and chip sample recoveries              and inserted in an Excel spreadsheet. 
  and results assessed. 
  Measures taken to maximise sample 
  recovery and ensure representative 
  nature of the samples. 
  Whether a relationship exists 
  between sample recovery and grade 
  and whether sample bias may have 
  occurred due to preferential 
  loss/gain of fine/coarse material. 
                                             ------------------------------------------------------------ 
 Logging                                      Logging was performed after core 
  Whether core and chip samples                fragment "puzzle" reconstruction, 
  have been geologically and geotechnically    and a line was marked down the centre 
  logged to a level of detail to               of the core. 
  support appropriate Mineral Resource         Diamond core was geotechnically logged, 
  estimation, mining studies and               and complete data (recovery, RQD, 
  metallurgical studies.                       joint orientation, spacing, roughness 
  Whether logging is qualitative               and weathering) was recorded onto 
  or quantitative in nature. Core              a logging sheet and inserted in an 
  (or costean, channel, etc.),                 Excel spreadsheet. 
  photography.                                 Diamond core was geologically logged, 
  The total length and percentage              and complete data (lithology, alteration, 
  of the relevant intersections                structural data and mineralisation) 
  logged.                                      was recorded onto a coded logging 
                                               sheet and inserted in an Excel spreadsheet. 
                                               All drill holes have been logged 
                                               in full. 
                                             ------------------------------------------------------------ 
 Sub--Sampling Techniques and                 The core was cut by diamond saw along 
  Sample Preparation                           a line marked down the centre of 
  If core, whether cut or sawn                 the core, splitting the core into 
  and whether quarter, half or                 two equal halves. One quarter of 
  all core taken.                              the PWL core and one half of the 
  If non--core, whether riffled,               HWL core was sent for analysis and 
  tube sampled, rotary split, etc.,            remaining core was retained in wooden 
  and whether sampled wet or dry.              core boxes for future reference. 
  For all sample types, the nature,            Half and quarter core samples were 
  quality and appropriateness of               sent to ALS Laboratory in Seville, 
  the sample preparation technique.            Spain for assaying. 
  Quality control procedures adopted           At ALS facilities, samples were crushed 
  for all sub--sampling stages                 (70%<2 mm), dried, split and pulverised 
  to maximise representivity of                (85%<75um) to produce a representative 
  samples.                                     sub sample for analysis by Aqua Regia 
  Measures taken to ensure that                digestion, combined ICP-MS and ICP-AES 
  the sampling is representative               (ref. ME-MS41) and lithium borate 
  of the in situ material collected,           fusion with XRF finish for tungsten 
  including for instance results               (ME-XRF10). 
  for field duplicate/second-half              The following elements were included 
  sampling.                                    in the analysis: Ag, Al, As, Au, 
  Whether sample sizes are appropriate         B, Ba, Be, Bi, Ca, Cd, Ce, Co, Cr, 
  to the grain size of the material            Cs, Cu, Fe, Ga, Ge, Hf, Hg, In, K, 
  being sampled.                               La, Li, Mg, Mn, Mo, Na, Nb, Ni, P, 
                                               Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr, 
                                               Ta, Te, Th, Ti, Tl, U, V, W, Y, Zn, 
                                               Zr, WO(3) . 
                                             ------------------------------------------------------------ 
 Quality of Assay Data and Laboratory         Short wave UV light was used to identify 
  Tests                                        the presence of scheelite in the 
  The nature, quality and appropriateness      core but was not use as a quantitative 
  of the assaying and laboratory               or semi-quantitative method. 
  procedures used and whether the              Internationally certified standards 
  technique is considered partial              and blanks were regularly introduced 
  or total.                                    among core samples with frequency 
  For geophysical tools, spectrometers,        of 1 in 20 approximately. 
  handheld XRF instruments, etc.,              Internal laboratory cross checking 
  the parameters used in determining           methods are implemented by ALS. 
  the analysis including instrument            Assay data reported as per laboratory 
  make and model, reading times,               final reports and certificates. 
  calibrations factors applied 
  and their derivation, etc. 
  Nature of quality control procedures 
  adopted (e.g. standards, blanks, 
  duplicates, external laboratory 
  checks) and whether acceptable 
  levels of accuracy (i.e. lack 
  of bias) and precision have been 
  established. 
                                             ------------------------------------------------------------ 
 Verification of Sampling and                 Verification of significant intersections 
  Assaying                                     by alternative company personnel. 
  The verification of significant              Primary logging paper sheets stored 
  intersections by either independent          at office, data entered into Excel 
  or alternative company personnel.            spreadsheets as is and coded, both 
  The use of twinned holes.                    stored in the server and in an external 
  Documentation of primary data,               hard drive. 
  data entry procedures, data verification,    All core boxes are photographed, 
  data storage (physical and electronic)       and a photo archive is maintained 
  protocols.                                   within the drilling database. 
  Discuss any adjustment to assay 
  data. 
                                             ------------------------------------------------------------ 
 Location of Data Points                      Drill hole collars survey by precision 
  Accuracy and quality of surveys              DGPS with GPRS on-line processing 
  used to locate drill holes (collar           with 10 mm accuracy and Total Station. 
  and downhole surveys), trenches,             Grid system PT-TM06/ETRS89, WGS84-UTM-ZONE29N. 
  mine workings and other locations            Topographic information has been 
  used in Mineral Resource estimation.         sourced from a publicly available 
  Specification of the grid system             database ReNEP produced by Portuguese 
  used.                                        Geographic Institute. 
  Quality and adequacy of topographic 
  control. 
                                             ------------------------------------------------------------ 
 Data Spacing and Distribution                Completed drill holes were designed 
  Data spacing for reporting of                for testing different targets and 
  Exploration Results.                         have irregular spacing. 
  Whether the data spacing, and                Data spacing is irregular but is 
  distribution is sufficient to                close to 40 m by 40 m which is considered 
  establish the degree of geological           sufficient to quantify mineralisation 
  and grade continuity appropriate             continuity and support the Mineral 
  for the Mineral Resource and                 Resource estimate at the current 
  Ore Reserve estimation procedure(s)          assigned classification 
  and classifications applied.                 Data spacing and distribution is 
  Whether sample compositing has               currently considered by the Competent 
  been applied.                                Person to be sufficient only for 
                                               Indicated and Inferred Mineral Resources. 
                                             ------------------------------------------------------------ 
 Orientation of Data in Relation              The orientation of drilling is approximately 
  to Geological Structure                      perpendicular to the strike of the 
  Whether the orientation of sampling          mineralised bodies. 
  achieves unbiased sampling of                The dip of the drill holes is not 
  possible structures and the extent           always perpendicular to the true 
  to which this is known, considering          dip of the skarn bodies due to local 
  the deposit type.                            variations and deformation, so the 
  If the relationship between the              intersections may not represent true 
  drilling orientation and the                 widths. This is not considered to 
  orientation of key mineralised               adversely impact the resource estimate. 
  structures is considered to have 
  introduced a sampling bias, this 
  should be assessed and reported 
  if material. 
                                             ------------------------------------------------------------ 
 Sample Security                              Samples are kept in labelled wooden 
  The measures taken to ensure                 core boxes in a locked building. 
  sample security.                             Industry standard practices are applied. 
                                             ------------------------------------------------------------ 
 Audits and Reviews                           Golder has not undertaken audits 
  The results of any audits or                 or reviews of the sampling techniques 
  reviews of sampling techniques               and data. Golder is not aware of 
  and data.                                    any audits or reviews carried out 
                                               by other parties. 
                                             ------------------------------------------------------------ 
 
   Section 2 Reporting of Exploration Results 
--------------------------------------------------------------------------------------------------------- 
 JORC Code Assessment Criteria                Comment 
                                             ------------------------------------------------------------ 
 Mineral Tenement and Land Tenure             At Régua, a Trial mine license 
  Status                                       CE-142 has been granted to IRP, 100% 
  Type, reference name/number,                 owned by W Resources Plc. 
  location and ownership including 
  agreements or material issues 
  with third parties such as joint 
  ventures, partnerships, overriding 
  royalties, native title interests, 
  historical sites, wilderness 
  or national park and environmental 
  settings. 
  The security of the tenure held 
  at the time of reporting along 
  with any known impediments to 
  obtaining a licence to operate 
  in the area. 
                                             ------------------------------------------------------------ 
 Exploration Done by Other Parties            Previous exploration activities were 
  Acknowledgment and appraisal                 undertaken in the 1980s by "Minas 
  of exploration by other parties.             de Santa Leucádia, Lda" and 
                                               "Rio Tinto Finance and Exploration, 
                                               Ldt." (Riofinex). 
                                             ------------------------------------------------------------ 
 Geology                                      Scheelite bearing skarns within impure 
  Deposit type, geological setting             carbonate horizons of a pre-Ordovican 
  and style of mineralisation.                 greywacke-schist sequence, which 
                                               has been affected by contact metamorphism 
                                               from Hercynian granites. 
                                             ------------------------------------------------------------ 
 Drill hole information                       Not applicable. 
  A summary of all information 
  material to the understanding 
  of the exploration results including 
  a tabulation of the following 
  information for all Material 
  drill holes: 
  Easting and northing of the drill 
  hole collar 
  Elevation or RL (Reduced Level-elevation 
  above sea level in metres) of 
  the drill hole collar 
  Dip and azimuth of the hole 
  Down hole length and interception 
  depth 
  Hole length 
                                             ------------------------------------------------------------ 
 Data aggregation methods                     Not applicable. 
  In reporting Exploration Results,            No equivalent values are used. 
  weighting averaging techniques, 
  maximum and/or minimum grade 
  truncations (e.g. cutting of 
  high grades) and cut-off grades 
  are usually material and should 
  be stated. 
  Where aggregate intercepts incorporate 
  short lengths of high-grade results 
  and longer lengths of low grade 
  results, the procedure used for 
  such aggregation should be stated 
  and some typical examples of 
  such aggregations should be shown 
  in detail. 
  The assumptions used for any 
  reporting of metal equivalent 
  values should be clearly stated. 
                                             ------------------------------------------------------------ 
 Relationship between mineralisation          Drill intersections are not reported 
  widths and intercept lengths                 as true widths. 
  These relationships are particularly 
  important in the reporting of 
  Exploration Results. 
  If the geometry of the mineralisation 
  with respect to the drill hole 
  angle is known, its nature should 
  be reported. 
  If it is not known and only the 
  down-hole lengths are reported, 
  there should be a clear statement 
  to this effect (e.g. 'downhole 
  length, true width not known'). 
                                             ------------------------------------------------------------ 
 Diagrams                                     All diagrams contained in this document 
  Where possible, maps and sections            are generated from spatial data displayed 
  (with scales) and tabulations                in industry standard mining and GIS 
  of intercepts should be included             packages. 
  for any material discovery being 
  reported if such diagrams significantly 
  clarify the report. 
                                             ------------------------------------------------------------ 
 Balance reporting                            Not applicable. 
  Where comprehensive reporting 
  of all Exploration Results is 
  not practicable, representative 
  reporting of both low and high 
  grades and/or widths should be 
  practiced to avoid misleading 
  reporting of Exploration Results. 
                                             ------------------------------------------------------------ 
 Other substantive exploration                Not applicable. 
  data 
  Other exploration data, if meaningful 
  and material, should be reported 
  including (but not limited to): 
  geological observations; geophysical 
  survey results; geochemical survey 
  results; bulk samples - size 
  and method of treatment; metallurgical 
  test results; bulk density, groundwater, 
  geotechnical and rock characteristics; 
  potential deleterious or contaminating 
  substances. 
                                             ------------------------------------------------------------ 
 Further work                                 WRES and IRP have received the necessary 
  The nature and scale of planned              permits to begin a trial mine at 
  further work (eg. tests for lateral          the deposit. 
  extensions or depth extensions 
  or large-scale step-out drilling). 
  Diagrams clearly highlighting 
  the areas of possible extensions, 
  including the main geological 
  interpretations and future drilling 
  areas, provided this information 
  is not commercially sensitive. 
                                             ------------------------------------------------------------ 
 
   Section 3 Estimation and Reporting of Mineral Resources 
--------------------------------------------------------------------------------------------------------- 
 JORC Code Assessment Criteria                Comment 
                                             ------------------------------------------------------------ 
 Database Integrity                           All drilling data is contained in 
  Measures taken to ensure that                an Excel database and stored by IRP. 
  data has not been corrupted by,              Validation in the database is set 
  for example, transcription or                to prevent the accidental duplication, 
  keying errors, between its initial           alteration or deletion of records 
  collection and its use for Mineral           The database is suitable for use 
  Resource estimation purposes.                during this resource estimate. 
  Data validation procedures used. 
                                             ------------------------------------------------------------ 
 Site Visits                                  Golder personnel visited the project 
  Comment on any site visits undertaken        area in May 2016 and again in April 
  by the Competent Person and the              2019 on behalf of the Competent Person. 
  outcome of those visits.                     No issues were identified during 
  If no site visits have been undertaken       the site visit that prevent the declaration 
  indicate why this is the case.               of Mineral Resources. 
                                             ------------------------------------------------------------ 
 Geological Interpretation                    IRP has carried out interpretation 
  Confidence in (or conversely,                of the mineralisation and weathering. 
  the uncertainty of) the geological           IRP is confident in the overall geological, 
  interpretation of the mineral                weathering and mineralisation interpretation 
  deposit.                                     of the deposit. The mineralisation 
  Nature of the data used and of               interpretation comprised 72 vertical 
  any assumptions made.                        sections aligned to azimuth N210. 
  The effect, if any, of alternative           Three-dimensional wireframe modelling 
  interpretations on Mineral Resource          was carried out by IRP using Surpac(R) 
  estimation. The use of geology               software. The interpretation was 
  in guiding and controlling Mineral           imported by Golder to Vulcan software 
  Resource estimation.                         for sample flagging and constraining 
  The factors affecting continuity             grade estimations. 
  both of grade and geology.                   The mineralisation consists of mineralised 
                                               skarn horizons hosted within calcsilicate-altered 
                                               schists and greywackes. The deposit 
                                               is cross cut by a fault splitting 
                                               the deposit into two separate areas. 
                                               The skarn units continue across the 
                                               fault although the orientation or 
                                               the mineralisation is different for 
                                               each fault block. 
                                             ------------------------------------------------------------ 
 Dimensions                                   The mineralised zone is approximately 
  The extent and variability of                900 m long (north west-south east) 
  the Mineral Resource expressed               by 400 m wide. The mineralisation 
  as length (along strike or otherwise),       goes from surface outcrop to approximately 
  plan width, and depth below surface          300m below the surface in the deepest 
  to the upper and lower limits                zone. 
  of the Mineral Resource. 
                                             ------------------------------------------------------------ 
 Estimation and Modelling Techniques          The estimation technique used for 
  The nature and appropriateness               the Mineral Resource estimation is 
  of the estimation technique(s)               the geostatistical method of Ordinary 
  applied and key assumptions,                 Kriging. Parameters were derived 
  including treatment of extreme               from variograms to estimate the average 
  grade values, domaining, interpolation       grade for WO(3) , As and S. 
  parameters, and maximum distance             Block sizes were selected with respect 
  of extrapolation from data points.           to the nominal drilling spacing to 
  If a computer assisted estimation            support acceptable local estimation 
  method was chosen include a description      quality. 
  of computer software and parameters          The block size selected is 10 m (X) 
  used.                                        by 10 m (Y) by 5 m (Z). The sub-block 
  The availability of check estimates,         size is 2 m (X) by 2 m (Y) by 1 m 
  previous estimates and/or mine               (Z). 
  production records and whether               All samples were composited to 2 
  the Mineral Resource estimate                m for estimation purposes. 
  takes appropriate account of                 The estimation was conducted in three 
  such data.                                   passes with the search size increasing 
  The assumptions made regarding               for each pass. 
  recovery of by--products.                    High grade spatial restraining was 
  Estimation of deleterious elements           applied for grade estimation of individual 
  or other non--grade variables                domains. The thresholds used to restrict 
  of economic significance (e.g.               high grades was based on the assessment 
  sulphur for acid mine drainage               of sample statistics and probability 
  characterisation).                           plots and ranged from 1.4 to 1.5% 
  In the case of block model interpolation,    WO(3) . Restraining of high grades 
  the block size in relation to                above these thresholds was within 
  the average sample spacing and               a 25 m by 25 m by 5 m search radius 
  the search employed.                         Each individual domain was estimate 
  Any assumptions behind modelling             separately and an unfolding technique 
  of selective mining units.                   was applied in the northern domains 
  Any assumptions about correlation            to allow the estimation to better 
  between variables.                           capture mineralisation continuity 
  Description of how the geological            within the domains 
  interpretation was used to control           The model was validated visually 
  the resource estimates.                      and statistically using comparisons 
  Discussion of basis for using                to composite data statistics, swath 
  or not using grade cutting or                plots and evaluation of the grade 
  capping.                                     estimation smoothing effect. 
  The process of validation, the 
  checking process used, the comparison 
  of model data to drill hole data, 
  and use of reconciliation data 
  if available. 
                                             ------------------------------------------------------------ 
 Moisture                                     All Mineral Resource tonnages are 
  Whether the tonnages are estimated           reported on a dry basis. 
  on a dry basis or with natural 
  moisture, and the method of determination 
  of the moisture content. 
                                             ------------------------------------------------------------ 
 Cut-off Parameters                           The resource model is constrained 
  The basis of the adopted cut-off             by assumptions about economic cut-off 
  grade(s) or quality parameters               grades. The tabulated resources were 
  applied.                                     reported using cut-off grade of 0.1% 
                                               WO(3) which was applied on a block 
                                               by block basis. 
                                             ------------------------------------------------------------ 
 Mining Factors or Assumptions                This Mineral Resource statement assumes 
  Assumptions made regarding possible          mining by underground stoping or 
  mining methods, minimum mining               benching techniques. 
  dimensions and internal (or, 
  if applicable, external) mining 
  dilution. 
  It is always necessary as part 
  of the process of determining 
  reasonable prospects for eventual 
  economic extraction to consider 
  potential mining methods, but 
  the assumptions made regarding 
  mining methods and parameters 
  when estimating Mineral Resources 
  may not always be rigorous. Where 
  this is the case, this should 
  be reported with an explanation 
  of the basis of the mining assumptions 
  made. 
                                             ------------------------------------------------------------ 
 Metallurgical Factors or Assumptions         No metallurgical assumptions have 
  The basis for assumptions or                 been made. 
  predictions regarding metallurgical 
  amenability. It is always necessary 
  as part of the process of determining 
  reasonable prospects for eventual 
  economic extraction to consider 
  potential metallurgical methods, 
  but the assumptions regarding 
  metallurgical treatment processes 
  and parameters made when reporting 
  Mineral Resources may not always 
  be rigorous. Where this is the 
  case, this should be reported 
  with an explanation of the basis 
  of the metallurgical assumptions 
  made. 
                                             ------------------------------------------------------------ 
 Environmental Factors or Assumptions         The municipality of Armamar has approved 
  Assumptions made regarding possible          (early 2015) the new Land Use Plan. 
  waste and process residue disposal           The Régua project area is included 
  options. It is always necessary              as potential for a future tungsten 
  as part of the process of determining        operation, so it is assumed that 
  reasonable prospects for eventual            process and waste disposal infrastructures, 
  economic extraction to consider              as well as water storage, should 
  the potential environmental impacts          be acceptable as part of any mining 
  of the mining and processing                 operation. 
  operation. While at this stage               A baseline environmental study for 
  the determination of potential               the trial mine has been presented 
  environmental impacts, particularly          to the authorities and approved for 
  for a greenfield project, may                obtaining the trial mining license 
  not always be well advanced,                 and a complete environmental impact 
  the status of early consideration            study is expected to be presented 
  of these potential environmental             in early 2020 for the grant of final 
  impacts should be reported. Where            mining license. 
  these aspects have not been considered 
  this should be reported with 
  an explanation of the environmental 
  assumptions made. 
                                             ------------------------------------------------------------ 
 Bulk Density                                 Bulk density values were assigned 
  Whether assumed or determined.               based on mineralisation and fault 
  If assumed, the basis for the                block. The bulk densities were based 
  assumptions. If determined, the              on immersion measurements from median 
  method used, whether wet or dry,             density of 1,889 samples from 27 
  the frequency of the measurements,           DDH were used in determining the 
  the nature, size and representativeness      assigned values. 
  of the samples.                              Dry bulk density ranges from 2.87 
  The bulk density for bulk material           to 2.90 t/m(3) for fresh material. 
  must have been measured by methods 
  that adequately account for void 
  spaces (vugs, porosity, etc.), 
  moisture and differences between 
  rock and alteration zones within 
  the deposit. 
  Discuss assumptions for bulk 
  density estimates used in the 
  evaluation process of the different 
  materials. 
                                             ------------------------------------------------------------ 
 Classification                               The Mineral Resources were classified 
  The basis for the classification             according to the following criteria 
  of the Mineral Resources into                and assumptions: 
  varying confidence categories.                *    Measured Resources: Due to the data scarcity and 
  Whether appropriate account has                    complexity of parts the mineralisation lode system, 
  been taken of all relevant factors,                no Measured material has been defined for Régua 
  i.e. relative confidence in tonnage/grade          deposit. 
  estimations, reliability of input 
  data, confidence in continuity 
  of geology and metal values,                  *    Indicated Resources: the area of Régua deposit 
  quality, quantity and distribution                 classified as Indicated Resources; 
  of the data. 
  Whether the result appropriately 
  reflects the Competent Person(s)'             *    Grades are estimated in Pass 1 or Pass 2. 
  view of the deposit. 
 
                                                *    Mineralised domain intersected by more than 2 drill 
                                                     holes 
 
 
                                                *    Inferred Resources: all remaining estimated blocks, 
                                                     generally represented by discontinuous and 
                                                     geologically complex zones with poor drilling 
                                                     coverage. 
                                             ------------------------------------------------------------ 
 Audits or Reviews                            No audits or reviews have been undertaken 
  The results of any audits or                 on this Mineral Resource estimate. 
  reviews of Mineral Resource estimates. 
                                             ------------------------------------------------------------ 
 Discussion of Relative Accuracy/Confidence   The Mineral Resources are an estimate 
  Where appropriate a statement                of the global in situ grades. No 
  of the relative accuracy and                 production data or tests are available 
  confidence level in the Mineral              to compare with this resource estimate. 
  Resource estimate using an approach          The relative accuracy is reflected 
  or procedure deemed appropriate              in the Mineral Resource classification 
  by the Competent Person. For                 discussed above that is in line with 
  example, the application of statistical      industry acceptable standards. 
  or geostatistical procedures 
  to quantify the relative accuracy 
  of the resource within stated 
  confidence limits, or, if such 
  an approach is not deemed appropriate, 
  a qualitative discussion of the 
  factors that could affect the 
  relative accuracy and confidence 
  of the estimate. 
  The statement should specify 
  whether it relates to global 
  or local estimates, and, if local, 
  state the relevant tonnages, 
  which should be relevant to technical 
  and economic evaluation. Documentation 
  should include assumptions made 
  and the procedures used. 
  These statements of relative 
  accuracy and confidence of the 
  estimate should be compared with 
  production data, where available. 
                                             ------------------------------------------------------------ 
 

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END

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February 05, 2020 04:55 ET (09:55 GMT)

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