Nohra-Elende Exploration Target Report
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DAVENPORT RESOURCES LIMITED TECHNICAL REPORT ON THE EXPLORATION TARGET OF THE NOHRA-ELENDE SUB AREA OF THE MÜHLHAUSEN- NOHRA MINING LICENCE SOUTH HARZ POTASH PROJECT THURINGIA, GERMANY Report Date: 8th January 2019 Effective Date: 8th January 2019 Prepared By Micon International Co Limited Suite 10 Keswick Hall, Norwich, NR4 6TJ, United Kingdom Davenport Resources Ltd Table of Contents 1.0 EXECUTIVE SUMMARY ..................................................................... 1 1.1 INTRODUCTION ................................................................................. 1 1.2 PROPERTY DESCRIPTION AND LOCATION ................................. 2 1.3 LICENCES AND PERMITS ................................................................. 3 1.4 INFRASTRUCTURE ............................................................................ 3 1.5 GEOLOGY AND MINERALISATION ............................................... 4 1.6 EXPLORATION ................................................................................... 5 1.7 EXPLORATOIN TARGET ESTIMATION ......................................... 6 2.0 INTRODUCTION.................................................................................... 2 2.1 PURPOSE AND SCOPE OF REPORT ................................................ 2 2.2 CAPABILITY AND INDEPENDENCE............................................... 2 2.3 DISCLAIMER ....................................................................................... 3 3.0 GENERAL INFORMATION ................................................................. 5 3.1 KALI-INSTRUKTION AND THE GKZ SYSTEM ............................. 5 3.2 MICON APPROACH TO RESOURCE/RESERVE CLASSIFICATION ............................................................................... 7 3.2.1 Mineral Resources ......................................................................... 7 4.0 PROPERTY DESCRIPTION AND LOCATION ................................ 9 4.1 PROPERTY DESCRIPTION ................................................................ 9 4.2 PROPERTY LOCATION ...................................................................... 9 4.3 LICENCES ............................................................................................ 9 4.3.1 Mining Rights .............................................................................. 12 4.3.2 Surface Rights .............................................................................. 13 4.4 ROYALTIES ....................................................................................... 13 4.5 ENVIRONMENTAL LIABILITIES, LEGISLATIVE AND PERMITTING REQUIREMENTS ..................................................... 13 4.6 MATERIAL AGREEMENTS ............................................................. 14 4.7 OTHER SIGNIFICANT FACTORS AND RISKS ............................. 14 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ................................. 15 5.1 PROPERTY ACCESS ......................................................................... 15 5.2 CLIMATE ............................................................................................ 15 5.3 LOCAL RESOURCES AND INFRASTRUCTURE .......................... 15 5.4 PHYSIOGRAPHY ............................................................................... 16 5.5 FLORA AND FAUNA ........................................................................ 16 6.0 REGIONAL GEOLOGY ...................................................................... 17 6.1 DEPOSIT TYPES ................................................................................ 17 6.2 REGIONAL GEOLOGY AND STRUCTURAL SETTING .............. 17 6.3 LOCAL GEOLOGY ............................................................................ 18 6.4 MINERALISATION ........................................................................... 20 6.5 ECONOMIC MINERALS ................................................................... 22 6.5.1 Sylvinite – ‘Hartsalz’ ................................................................... 22 Mühlhausen-Nohra Project, January 2019 i Davenport Resources Ltd 6.5.2 Carnallitite.................................................................................... 23 6.5.3 Rock-Salt...................................................................................... 23 7.0 HISTORICAL EXPLORATION ......................................................... 24 7.1 HISTORY OF THE SOUTH HARZ POTASH DISTRICT ............... 24 7.2 HISTORIC OWNERSHIP ................................................................... 25 7.3 SOURCE DATA .................................................................................. 25 7.4 EXPLORATION ................................................................................. 26 7.5 DRILLING ........................................................................................... 33 7.6 LOGGING ........................................................................................... 33 7.7 SAMPLE PREPARATION AND ANALYSIS ................................... 34 7.7.1 Sampling ...................................................................................... 34 7.7.2 Analysis Procedures ..................................................................... 34 7.8 HISTORICAL MINERAL RESOURCE ESTIMATES...................... 35 8.0 DATA VERIFICATION ....................................................................... 38 9.0 MINERAL PROCESSING METALLURGY AND TESTING ......... 39 10.0 MINERAL RESOURCE ESTIMATE ................................................. 40 10.1 INTRODUCTION ............................................................................... 40 10.2 GEOLOGICAL INTERPRETATION AND MODELLING .............. 40 10.3 EXPLORATION TARGET ................................................................. 41 11.0 MINING METHODS ............................................................................ 49 12.0 CONCLUSIONS AND RECOMMENDATIONS ............................... 50 13.0 DATE AND SIGNATURE PAGE ........................................................ 52 14.0 REFERENCES ....................................................................................... 53 15.0 CERTIFICATE ...................................................................................... 54 16.0 GLOSSARY AND ABBREVIATIONS ............................................... 55 16.1 GLOSSARY ........................................................................................ 55 16.2 ABBREVIATIONS ............................................................................. 58 17.0 APPENDIX 1 .......................................................................................... 60 Mühlhausen-Nohra Project, January 2019 ii Davenport Resources Ltd List of Tables Table 1.1: Historical Resources for the Nohra-Elende Sub-Area ................................. 6 Table 1.2: Exploration Target Mineral Resource Estimate for the Nohra-Elende Sub- Area of the Mühlhausen-Nohra Mining Licence (Ercosplan, 2017) ... 7 Table 1.3: Exploration Target Estimate for the Nohra-Elende Sub-Area of the Mühlhausen-Nohra Mining Licence (Micon, 8th January 2019) ......... 1 Table 4.1: Mühlhausen-Nohra Mining Licence .......................................................... 13 Table 6.1: Zechstein Series Geology (after Ercosplan, Jan 2018) .............................. 19 Table 6.2: Evaporite Rock Types within the Ebeleben Licence Area ........................ 21 Table 7.1 Historically Significant South Harz Potash District Mines ........................ 24 Table 7.2: Nohra-Elende Sub-Area Drill Hole Database Summary ........................... 27 Table 7.3: Exploration Drill Holes Data within the Nohra-Elende Sub-Area ............ 28 Table 7.4: Historical Resources for the Nohra-Elende Sub-Area ............................... 36 Table 7.5: Exploration Target mineral resource estimate for the Nohra-Elende Sub- Area of the Mühlhausen-Nohra Mining Licence (Ercosplan, 2017) . 37 Table 10.1: Criteria used to define the Exploration Target ranges ............................. 44 Table 10.2: Exploration Target Estimate for the Nohra-Elende Sub-Area of the Mühlhausen-Nohra Mining Licence as at 8th January 2019 .............. 48 Mühlhausen-Nohra Project, January 2019 iii Davenport Resources Ltd List of Figures Figure 1.1: Location Map of the Mühlhausen-Nohra Mining Licence ......................... 2 Figure 3.1: Comparison of GKZ and JORC Code Resource/Reserve Classification ... 6 Figure 3.2: Exploration Results, Mineral Resources and Ore Reserves as Defined by the JORC Code .................................................................................... 7 Figure 4.1: Regional Location Map of the South Harz Potash Project ....................... 10 Figure 4.2: Location Map of the Davenport Mining and Exploration Licence Areas 11 Figure 4.3: Nohra-Elende and Mühlhausen-Keula Sub-Areas of the Mühlhausen- Nohra Mining Licence ....................................................................... 12 Figure 6.1: Geological Map of the Mühlhausen-Nohra Mining Licence Area........... 20 Figure 7.1: Drill Hole Positions and Main Mineral Distribution within the Nohra- Elende Sub-Area ................................................................................ 32 Figure 10.1: NNW-SSE Cross-Section across the Nohra-Elende Sub-Area .............. 42 Figure 10.2: Mineral distribution and Classification of the Nohra-Elende Sub-Area 43 Figure 10.3: K2O Grade Distribution in the Combined Potash Seams, Nohra-Elende Sub-Area ...........................................................................................