Independent Report on the Nickel Laterite Resource - Agata North, Philippines
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INDEPENDENT REPORT ON THE NICKEL LATERITE RESOURCE - AGATA NORTH, PHILIPPINES. Agata North Project, Agusan del Norte Province, Philippines. For TVI Resource Development (Phils) Inc. 22/F BDO Equitable Tower, 8751 Paseo de Roxas Ave Salcedo Village 1226, Makati City Philippines 01 April 2013 Mark G Gifford MSc (Hons), FAusIMM Independent Report on the Nickel Laterite Resource – Agata North, Philippines 2013 TABLE OF CONTENTS Executive Summary ................1 1.0 Introduction ................3 2.0 Location, Description and Tenement Status ................4 2.1 Location 2.2 Property Description 2.3 Tenement Type 3.0 Regional Climate, Resources, Infrastructure, Physiography and Access ..............11 3.1 Climate 3.2 Local Resources and Infrastructure 3.3 Physiography 3.4 Access 4.0 History ..............13 5.0 Geology ..............14 5.1 Regional Geology 5.2 Local Geology 5.3 Laterite Ni Deposit Geology 5.4 Other Deposit Geology 6.0 Mineralization ..............22 7.0 Exploration ..............23 7.1 MRL General Exploration (1997-2000) 7.2 MRL General Exploration (2004-2009) 7.3 MRL Laterite Ni Exploration 7.4 Drillhole Collars Survey 8.0 Sampling and Assaying ..............29 8.1 ANLP Sampling Procedure 8.2 MRL Sampling Protocols 8.3 Laboratory Sampling Protocols 8.4 Internal Check Assays (McPhar and Intertek) 8.5 External Check Assays (MRL) 8.6 Summary 9.0 Data Verification ..............41 10.0 Bulk Density Determinations ..............42 11.0 Resource Estimate ..............45 11.1 Geometric Interpretation 11.2 Exploratory Data Analysis 11.3 Variography and Estimation 11.4 Resource Classification 12.0 Conclusions .............65 13.0 References .............66 14.0 Date and Signature .............68 i Independent Report on the Nickel Laterite Resource – Agata North, Philippines 2013 LIST OF FIGURES Figure 1: Map of the Philippines showing MRL Project Areas ................4 Figure 2: MRL Tenements and Projects in the Surigao Mineral District ................5 Figure 3: Map showing broad outline of ANLP and Agata Cu-Au Prospects ................6 Figure 4: Compilation Map showing areas of mapped Ni Laterites within Surigao District ................7 Figure 5: Panoramic view of ANLP showing the main area of laterite development. ..............12 Figure 6: Geological Map of Surigao Mineral District ..............15 Figure 7: Local Geological Map of Agata North Project Area ..............17 Figure 8: ANLP Drillhole Location Map – BHP-Billiton and MRL (2007) Drilling. ..............26 Figure 9: ANLP Drillhole Location Map – All Drilling ..............28 Figure 10: Graphs of Nickel Standards Assays. ..............38 Figure 11: Comparison of Independent Checks and MRL Assays ..............42 Figure 12: Agata North Bulk Density Test Pit Location Map ..............44 Figure 13: ANLP Saprolite BD data graph – Dry Density vs Moisture All Data ..............45 Figure 14: Wireframe surfaces and drilling, Agata North (Ni on left, Fe on right side of drill trace....46 Figure 15: Block model sub-domains. ..............47 Figure 16: Histograms for composited Cr2O3 for saprolite sub-domains ..............49 Figure 17: Histogram for composited CaO in the upper limonite sub-domain ..............50 Figure 18: Contact analysis for the upper and lower limonite for Ni, Co, Al and Mn …………...51 Figure 19: Contact analysis for the upper and lower limonite for Fe, Mg, SiO2 and Cr2O3 ..............51 Figure 20: Contact analysis for the upper and lower limonite for CaO. ..............51 Figure 21: Contact analysis for the upper and lower saprolite for Ni, Co and Fe ..............52 Figure 22: Contact analysis for the upper and lower saprolite for Al, Mg, Cr2O3 and MnO ..............52 Figure 23: Contact analysis for the upper and lower saprolite for SiO2 and CaO ..............52 Figure 24: Comparison of composites against the block model for Ni in limonite. ..............59 Figure 25: Comparison of the sub-dom and dom block models for Cr2O3 in upper saprolite ............59 Figure 26: Resource classification, Agata North Deposit. ..............60 Figure 27: Grade-tonnage curve, Measured + Indicated, Limonite. ..............62 Figure 28: Grade-tonnage curve, Measured + Indicated, Saprolite ..............62 Figure 29: Grade-tonnage curve, Measured + Indicated, Upper Limonite ..............63 Figure 30: Grade-tonnage curve, Measured + Indicated, Lower Limonite ..............63 Figure 31: Grade-tonnage curve, Measured + Indicated, Upper Saprolite ..............64 Figure 32: Grade-tonnage curve, Measured + Indicated, Lower Saprolite ..............64 ii Independent Report on the Nickel Laterite Resource – Agata North, Philippines 2013 LIST OF TABLES Table 1: Agata Project Tenements held by Mindoro ..........…...8 Table 2: Climate Averages and Extremes 1961-2000 ……………11 Table 3: NAMRIA Tie Points Technical Description ……………29 Table 4: Ni Standards used at ANLP and frequency ..............33 Table 5: Variance of Original and Internal Laboratory Duplicate Analyses ……………35 Table 6: Variance of Ni Standard and Laboratory Assays ……………36 Table 7: Variance of Field Duplicate and Original Assays .............36 Table 8: Variance of Field Duplicate and Original Assays .............37 Table 9: Variance of Pulp Duplicate and Original Assays .............39 Table 10: Variance of Pulp Duplicate and Interlab Assays .............40 Table 11: Results of Independent Check on Drill Core Assays .............41 Table 12: Summary of Bulk Density Measurements .............43 Table 13: Domain and Sub-Domain codes for Agata North Laterite ……..……45 Table 14: Block Model Properties .............46 Table 15: Comparison of raw sample lengths to composite sample lengths. .............47 Table 16: Composite statistics for sub-domains .............48 Table 17: Limonite Variogram Models .............53 Table 18: Saprolite Variogram Models .............54 Table 19: Domains and sub-domains estimated for each variable .............54 Table 20: Estimation neighbourhood parameters .............55 Table 21: Percent cells in estimation runs and mean number of samples used .............56 Table 22: Composite vs. block estimate comparison .............57 Table 23: Agata North Mineral Resource Estimate as at 18th March 2010. .............60 LIST OF APPENDICIES Appendix 1: ANLP Cross-Sections Appendix 2: MRL QA/QC Procedures Appendix 3: McPhar / Intertek Sample Preparation Procedures Appendix 4: ANLP Bulk Density Data Appendix 5: ANLP Resource Estimate – Statistics and Variography Appendix 6: 2010 and 2013 Resource Comparison iii Independent Report on the Nickel Laterite Resource – Agata North, Philippines 2013 EXECUTIVE SUMMARY This Ni Laterite Resource report was prepared at the request of Yulo Perez, Manager of TVI Resource Development (Phils) Inc. It is the sixth mineral resource estimate completed over the Agata North Lateritic Nickel Project (ANLP) project, and was to estimate a resource post the review and application of further sub domains within the Agata North limonite and saprolite geological domains. ANLP is located about 47 km north-northwest of Butuan City and 73 km southwest of Surigao City, Mindanao Island, Philippines. The ANLP is one of the projects located within the overall Agata Project, which is covered by the Mineral Production Sharing Agreement (MPSA) Contract Area held by Minimax Mineral Exploration Corp. (Minimax) denominated as MPSA-134-99-XIII and approved by the Department of Environment and Natural Resources (DENR) on May 26, 1999. The Agata Project is situated along the southern part of the uplifted and fault-bounded Western Range on the northern end of the east Mindanao Ridge. green schists, ultramafics, limestones, andesite and tuff, younger limestones, intrusive, and alluvium are present within the area. The widespread occurrence of ultramafics and serpentinized ultramafics, especially along the broad ridges characterized by peneplaned topography provide a favourable environment for the development of nickel laterites. The laterite profile in the ANLP consists of the ferruginous laterite, limonite, saprolite grading to the ultramafic rock, from surface to increasing depth. The limonite zone is iron oxide-rich, where the predominant minerals are hematite, goethite and clays, and with moderate nickel content (over 1%), while the saprolite zone has much less iron-oxide, is magnesium-rich, and has a slightly higher nickel content than the limonite horizon in its upper portion. This report is based on the exploration data that were produced and compiled by previous owners Mindoro Resources Limited (MRL). Data verification performed by the author of the MRL database found no discrepancies. Hence the database is considered adequate to meet industry standards to estimate mineral resources. The resource was estimated by Mike Job, Principal Consultant, Quantitative Group Perth, using the Ordinary Kriging method. The data was domained into 5 ore types, Limonite (upper), Limonite (lower), Saprolite(upper), saprolite (lower), and Bedrock and within each domain 9 individual elements were estimated and reported upon. The resource estimate is as below: 1 Independent Report on the Nickel Laterite Resource – Agata North, Philippines 2013 Classification Sub-Domain kTonnes Ni Co Fe Al Mg SiO2 CaO Cr2O3 MnO Upper Limonite 211 0.98 0.11 49.7 3.11 0.5 2.8 0.03 3.67 1.01 Lower Limonite 27 1.13 0.15 35.5 2.57 5.1 21.1 0.22 2.86 0.85 Total Limonite 238 1.00 0.11 48.1 3.05 1.0 4.9 0.05 3.58 1.00 Measured Upper Saprolite 478 1.19 0.03 11.3 0.39 17.9 41.6 0.32 0.89 0.23 Lower Saprolite Total