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Feasibility Study Report 1 NATIONAL INSTRUMENT 43-101 Updated Independent Technical Mining Reserve Estimate and Economic Feasibility Study on the Buckreef Gold Mine Project, Tanzania, East Africa Compiled by: MaSS RESOURCES LIMITED Alistides Ndibalema BSc (Mining Engineering), MAusIMM Benjamin C. Safi, MSc (Exploration Geology), SEG Charles Sayi Mihayo, BSc (Geology) Reference No: TR_FS01/2017 Effective Date: 27th April 2017 MaSS Resources Limited Project Number: TR_FS01/2017 i TABLE OF CONTENTS TABLE OF CONTENTS ........................................................................... i LIST OF TABLES ................................................................................ vii LIST OF FIGURES ............................................................................... ix 1 SUMMARY ...................................................................................... 1 1.1 INTRODUCTION .............................................................................. 1 1.2 PROPERTY DESCRIPTION, OWNERSHIP AND SCOPE OF WORK ..... 1 1.3 ENVIRONMENT AND PERMITTING .................................................. 3 1.4 GEOLOGY AND HISTORY OF EXPLORATION .................................. 3 1.5 DATABASE AND RESOURCES ......................................................... 4 1.6 MINE DESIGN & RESERVES ........................................................... 4 1.7 DEVELOPMENT AND OPERATIONS ................................................. 7 1.8 CAPITAL COSTS ............................................................................ 10 1.9 OPERATING COSTS ....................................................................... 11 1.10 ECONOMIC ANALYSIS ................................................................ 11 1.11 CONCLUSIONS AND RECOMMENDATIONS ................................ 14 2 INTRODUCTIONS AND PROJECT DESCRIPTION ............................ 15 2.1 TERMS OF REFERENCE ............................................................... 15 2.2 INFORMATION SOURCES ............................................................. 16 3 PROPERTY DESCRIPTION AND LOCATION .................................... 17 3.1 PROPERTY LOCATION ................................................................... 17 3.2 TENURE ........................................................................................ 18 3.3 PERMITS AND PERMITTING PROCESS ......................................... 18 3.3.1 Basis for Mineral Title .............................................................. 18 3.3.2 Exploration Permits (Rights and Obligation) ............................. 18 ii 3.3.3 Project Mining Permits ............................................................. 20 4 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, PHYSIOGRAPHY & INFRASTRUCTURE ............................................................................. 22 4.1 ACCESSIBILITY ............................................................................. 22 4.2 CLIMATE, LOCAL RESOURCES AND PHYSIOGRAPHY .................. 22 4.2.1 Climate .................................................................................... 22 4.2.2 Physiography ........................................................................... 23 4.3 INFRASTRUCTURE ........................................................................ 25 5 HISTORY ...................................................................................... 26 5.1 Buckreef and Eastern Porphyry ..................................................... 26 5.2 Buckreef Prospect .......................................................................... 28 5.3 Bingwa and Tembo Prospects ........................................................ 29 5.4 Historic Mineral Reserves .............................................................. 29 5.5 Historic Production ........................................................................ 29 6 GEOLOGICAL SETTING AND MINERALIZATION ............................. 30 6.1 REGIONAL GEOLOGY ................................................................... 30 6.2 LOCAL GEOLOGICAL SETTING ..................................................... 36 6.3 DEPOSIT GEOLOGY ...................................................................... 38 6.4 MINERALIZATION .......................................................................... 40 7 DEPOSIT TYPES ........................................................................... 42 8 EXPLORATION .............................................................................. 44 8.1 Buckreef Mine Area Explorations ................................................... 44 8.2 Geophysical Survey ....................................................................... 49 8.2.1 Gravity Surveys ....................................................................... 49 8.2.2 Induced Polarisation Surveys ................................................... 49 8.3 Geochemistry Surveys on BRMA .................................................... 49 iii 9 DRILLING ..................................................................................... 50 9.1 Pre-2010 Drilling ........................................................................... 50 9.2 Mineral Resource Definition Drilling by TRX .................................. 51 9.3 Sampling Procedures ..................................................................... 52 9.4 Rock Density Measurements .......................................................... 53 10 SAMPLE PREPARATION, ANALYSIS AND SECURITY ................... 54 10.1 Quality Assurance and Quality Control ....................................... 55 11 DATA VERIFICATION ................................................................. 56 12 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ...... 58 12.1 MINERAL RESERVE ESTIMATES ................................................ 60 12.2 RESOURCE-RESERVE RECONCILIATION FACTORS .................. 61 13 MINING METHODS ..................................................................... 63 13.1 BASIS OF EVALUATION ............................................................. 64 13.2 GENERAL DESIGN CRITERIA ..................................................... 64 13.2.1 Site Description .................................................................... 64 13.2.2 Geotechnical Parameters (alistides needs a copy urgently) ..... 65 13.2.3 Economic Criteria ................................................................. 66 13.3 MINE DESIGN ............................................................................ 66 13.3.1 Mine Production Rate ............................................................ 66 13.3.2 Mining Method Overview ....................................................... 66 13.3.3 Pit Optimization and Pit Design ............................................. 67 13.3.4 COSTS AND CUT-OFF GRADE ESTIMATIONS ....................... 67 13.3.5 CUT OFF GRADE CLASSIFICATION ...................................... 69 13.4 MINE DESIGNS .......................................................................... 79 13.4.1 Buckreef Pits ........................................................................ 79 13.5 MINE PRODUCTION SEQUENCE AND SCHEDULE ..................... 88 iv 13.6 EQUIPMENT SELECTION ........................................................... 93 13.7 OPEN PIT MINING PRACTICES ................................................... 93 13.7.1 Drilling and Blasting ............................................................. 93 13.7.2 Loading of Ore and Waste ..................................................... 93 13.7.3 Haulage (alistides rewording) ................................................. 94 13.7.4 Auxiliary Pit Services and Support Equipment ...................... 94 13.8 UNDERGROUND MINING POTENTIAL ........................................ 97 13.8.1 Underground Mineralization ..................................................... 97 13.8.2 Designs .................................................................................... 98 13.8.3 Materials Inventory ................................................................... 99 13.8.4 Method Selection ...................................................................... 99 13.8.5 Production Rates .................................................................... 100 13.8.6 Equipment Selection ............................................................... 100 14 MINERAL PROCESSING AND METALLURGICAL TESTING ......... 100 14.1 INTRODUCTION ....................................................................... 100 14.2 REVIEW OF HISTORICAL TEST-WORK ..................................... 101 14.3 TRX Metallurgical Test-work ..................................................... 102 14.3.1 Metallurgical Test work by Emisha Mining Innovations ....... 103 14.3.2 Emisha’s comments on the Metallurgical test work ............. 106 14.4 GOLD RECOVERY FLOW SHEET .............................................. 106 14.5 PROCESSING PLANT EQUIPMENT AND MACHINERY ............... 107 Proposed Processing Plant and Mine Operations Buildings and Safety ......................................................................................................... 107 15 PROJECT INFRASTRUCTURE ................................................... 108 15.1 SEISMICITY .............................................................................. 110 16 COST ANALYSIS ....................................................................... 111 v 16.1 OPERATING AND CAPITAL COST ANALYSIS ............................. 111 16.2 MINING COST ESTIMATES ......................................................
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