NACHINGWALI EMERALD MINE GEOLOGICAL SUMMARY Page 2 of 46 CONFIDENTIALITY STATEMENT

This report contains confidential information which cannot be divulged to third Parties without the written consent of Messer’s Nachingwali Enterprises Limited and their partners.

Page 3 of 46 CONTENTS PAGE

1.0 Introduction 6 1.1 Legislation 6 1.2 License / mining right 6 1.3 Location and access of Nachingwali mine - plot 67 6 Location of Kafubu Emerald Area on Zambia map (Red square) 7 Zambian map showing Provinces 8 1.4 Figure showing size and coordinates of Nachingwali mine 9 Map showing boundary of Nachingwali mine 10 1.5 Objectives of Exploration 10 1.6 Physiogeography 11 1.7 History of the Emerald prospecting and exploration in Ndola Rural (Kafubu) 11 Emerald restricted Area 1.8 Geological controls of Emeralds mineralization in Ndola Rural(Kafubu) 12 Emerald restricted Area 1.9 Prospecting and Exploration techniques used 12 1.9.1 Geophysical magnetic survey 12 1.9.2 Geophysical radiometric survey 12 1.9.3 Geological mapping 13 1.9.4 Core drilling 13 1.9.5 Petrography analysis 13 1.9.6 Geochemical analysis 13 2.0 Previous works on Nachingwali mineral property 13 2.1 Geophysical magnetic survey 13 2.2 Pitting and Trenching 14 2.3 Geological mapping and Pit/ Trench Logging 14 2.4 Core drilling 14 Table 1: Drill holes positions, drill angle, hole bearing and drilled depth 14 3.0 Current work on Nachingwali mineral property 15 3.1 Exploration methods, procedures and instrumentation 15 3.1.1 Grid cutting 15 3.1.2 Old grid 15 3.1.3 Western grid 15 3.1.4 Eastern grid 15 3.1.5 Geophysical magnetic and radiometric survey 16 Table 2: Summary of the geophysical survey parameters 16 3.1.6 Geophysical mapping and Pit / Trenching logging 16 3.1.7 Core logging, sampling and sample analysis 17 Table 3: Sample numbers, drill hole numbers and sampled depth 17 Table 3: Continues 18 3.2 Exploration results 19 3.2.1 Magnetic results 19 3.2.2 Radiometric results 19 3.2.3 Analysis results 20 3.2.4 Microscopic Analysis results 22 Table 4: Grid location and depth of emerald – bearing thin section 22

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Table of contents continued

CONTENTS PAGE

3.2.5 Geochemical analysis results 23 3.3 Discussions 23 4.0 Laboratory study of sampled rocks 23  Introduction 23  Results 24  DH 1.6 Chlorite schist 24  DH 2.1 Actinolite – mica schist 25  DH 4.5 Mica schist 26  DH 4.6 Actinolite – Chlorite schist 27  DH 5.8 Tremolite mica schist 28  Laboratory conclusion and recommendation 29

5.0 Geological conclusion 30 Recommendation 30 Table 5: Mining plan to be 7used on the following parameter 30 Memorandum of risk 31 Figure: Distribution of various mineral deposits and occurrences in Zambia 32 Figure: Old Grid, Eastern Grid and Western Grid locations 33 Figure: Total Field Magnetic map – Western Grid 34 Figure: Total Field Magnetic map – Eastern Grid 35 Figure: Radiometric map – Old Grid 36 Figure: Radiometric map - Western Grid 37 Figure: Radiometric map - Eastern Grid 38 Figure: Core Log – ( incorporating microscopic and Geochemical 39 Analysis Result Figure: Map showing recommended pit site, Dump site and camp 40 site. Figure: Total Magnetic Intensity data 41 Photo: Exposed Tourmalinite vein 42 Photos: Exposed Tourmalinite vein 43 Photo: Excavated and exposed Tourmalinite vein 44 Photo: Drill cores from drilled holes 45 Copy: Nachingwali mining License 46

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1.0 INTRODUCTION

1.1 Legislation

Messrs NACHINGWALI ENTERPRISES LIMITED (NEL) holds the mining rights (Gemstone License) over the Nachingwali Mineral Property, Plot 67, Ndola Rural (Kafubu) Emerald Restricted Area, Zambia.

1.2 License/ Mining right Messrs NACHINGWALI ENTERPRISES LIMITED (NEL) holds license number 13630-HQ- SGL

1.3 Location and access of the Nachingwali Mineral Property.

It is located about 65Km from the nearest town, Kitwe. It is covered by quarter degree sheet 1328 Al.

Figure 1, presents the location map of Ndola Rural Emerald Restricted Area on the Copperbelt Province.

Figure 2 presents the location map of the Provinces of the Republic of Zambia The Ndola Rural Emerald Restricted Area is commonly known as the Kafubu Emerald Area after the Kafubu River which is the main river passing through the first emerald deposits to be discovered along the area.

The mineral property lies on the NKABASHILA EMERALD PROSPECT to the south of the Mitondo Stream, a tributary of the Kafue River. Access to Plot 67 is by a tarred road from Kitwe to Kalulushi (about 15Km) and, the rest of the way (about 40km), by a gravel road through Chief Nkana’s Farm Block. The road is good except for a few places that are only passable using four wheel drive (4WD) vehicles during the rainy season.

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FIGURE 01

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ABOVE: COPPERBELT PROVINCE SHOWING DISTRICTS. (Note: Lufwanyama district)

FIGURE 02 Page 8 of 46

1.4 Size of the Nachingwali Mineral Property

The Nachingwali Mineral Property measures about 99.5 hectares in size.

FIGURE 3a above and 3b below: Shows the size and boundaries of Nachingwali mine plot 67

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ABOVE FIGURE 3b: Nachingwali mine is plot 67 and marked with red boundary on the map

1.5 Objectives of the Exploration

The main objectives of the exploration were;

a. To identify emerald occurrence localities. b. To determine the best site for the mining pit. c. To determine the dump site. d. To determine the new campsite.

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1.6 Physiogeography Most of the land on the Nachingwali Mineral Property lies between 1200m and 1210m above sea level. The land is fairly flat. The Nachingwali Mineral Property is forested by the deciduous savannah - type Woodland.

1.7 History of the Emerald Prospecting and Exploration in Ndola Rural / (Kafubu) Emerald Restricted Area

The first discovery of beryl in the Kafubu Area was made in 1928 by Dicks and Baker, geologists of the Rhodesia Congo Border Concession Company (Baker, 1931). Dicks and Baker concluded their investigations in 1931 upon which they concluded that the deposit had little economic significance. In the 1940’s the deposit was further investigated by RHOKANA Company, which was followed by Rio Tinto Mineral Search of Africa in-the 1950’s. This led to the commencement of mining for emerald, in 1967 by a small private company, MIKU ENTERPRISES Limited. The rights of MIKU area were later taken over by MINDECO LIMITED, a government-owned company in 1971. Local inhabitants discovered the deposits Kamakanga, PIRALA, FIBOLELE and FWAYA- FWAYA, which led to significant production in 1974.

In 1977, systematic exploration by MINDEX, at this time the exploration department of the parastatal company Mining Development Corporation, MINDECO, was conducted. The program involved geological mapping, geophysical and geochemical surveys. The exploration covered major mining plots including KAGEM, KAMAKANGA, PIRALA, FWAYA-FWAYA, FIBOLELE and the then MINDECO Small Mines.

In 1980, a new Government controlled agency, the Reserved Minerals Corporation, was set up to conduct exploration and mining. The work of Reserved Minerals Corporation led to the delineation of a mineralization area of about 170Km squared. The area has since increased significantly following further exploration that has been conducted by individual geologists and MINEX, the mineral exploration department of the defunct Zambia Industrial and Mining Corporation, ZIMCO.

Currently the Kafubu Emerald Restricted Area produces about 20% of rough emeralds for the world market.

The most productive mines in the area are Kagem mining company limited, Kuber (Kamakanga) group of companies, Pirala mining cooperative society limited and, lately, Grizzly Mining Limited.

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1.8 Geological Controls of Emeralds Mineralization in Ndola Rural (Kafubu) Emerald area In the Kafubu Emerald Area, the Biotite phlogopite schist is the main host rock for the emeralds while the talc-magnetite schist is the minor ore (Hickman, A.C.J, 1972). The Biotite-phlogopite schist occurs in relatively thin zones around the tourmaline- quartz veins that have been emplaced in the talc-magnetite schist. It appears to have been formed by the reaction between the talc-magnetite schist and the hot tourmaline- quartz vein-forming fluids during the emplacement of the latter.

The tourmaline-quartz veins were the source of beryllium, the element that led to the formation of the mineral beryl. The talc-magnetite schist, a metamorphosed ultramafic rock, was the source of chromium, the element needed to transform beryl to emerald i.e. the element that provides the green color in emerald.

1.9 Prospecting and Exploration Techniques used in Ndola Rural

(Kafubu) Emerald Restricted Area.

The mapping of the talc-magnetite schist with tourmaline-quartz veins emplaced in it effectively maps the areas of most probable emerald mineralization. Therefore, field techniques applied in this area target the talc-magnetite, the tourmaline-quartz veins or both. Laboratory analysis is meant to investigate the possible occurrence of emeralds in the rocks.

1.9.1 Geophysical Magnetic Survey

Geophysical magnetic are used to delineate areas underlain by the talc-magnetite schist because this schist has a higher magnetic susceptibility than the other rocks in the area due to its magnetic content. A magnetometer is used for this survey.

1.9.2 Geophysical Radiometric Survey

Geophysical radiometric are used to delineate areas underlain by the tourmaline-quartz veins by measuring radiation. Tourmaline-quartz veins emit more radiation than the other rocks in the area due to the radioactive elements associated with tourmalinisation. A spectrometer is used for this survey

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1.9 .3 Geological Mapping Ground traverses and logging of excavations are used to map rock outcrops. In this area, ground traverses are not effective in most cases due to the thick laterite cover and/or soil column. Rock samples are collected.

1.9.4 Core Drilling Core Drilling is used to investigate the rocks in the subsurface. Drill holes are sited in radiometric anomalous localities where magnetic and radiometric anomalies overlap. The core is logged and sampled.

1.9.5 Petrographical Analysis Rock and core samples are cut into thin sections that are analyzed under the microscope for possible emerald occurrence.

1.9.6 Geochemical Analyses Rock and core samples are analyzed for beryllium and chromium content. Higher beryllium content is indicative of the possible occurrence of good-colored emeralds.

2.0 Previous work on the Nachingwali mineral property

Three geo-scientists, the Late Charles H. Muyovwe (Geophysicist), the Late B. M. Kalumba (Geologist) and the Late Patrick Mumba (Geologist) have worked on the Nachingwali Mineral Property. Their reports are available for the details of their surveys and findings thereof. The summaries of their surveys and findings are presented in this chapter.

2.1 Geophysical Magnetic Survey A geophysical magnetic survey was conducted over the upper eastern half of the property by the late Charles H. Muyovwe in July, 1991 (Muyovwe, 1991). This survey together with the observations of the geology in the excavations established the occurrence of talc-magnetite schist in the survey area. Appendix 2 presents his contoured total Magnetic Intensity Data Map. To understand the geology of the area, visa a vi emerald mineralization, he recommended six areas for pitting. The positions of these areas, according to his grid are;

(i) 1700E / 100N (iv) 1600E / 100N (ii) 1700E / 150N (v) 1550E / 150N (iii) 1650E / 50N (vi) 1250E / 200N

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2.2 Pitting and Trenching

Pits and trenches were dug in the localities recommended by Muyovwe. Four (4) pits/trenches were dug. The combined total depth of the pits and trenches that were dug is 23.2m.

2.3 Geological Mapping and Pit/Trench Logging

A geological mapping and pit/trench logging survey was conducted in the upper eastern half of the property by the late Kalumba in July 1992 (Kalumba, 1992). During the survey, rock specimens were collected for geochemical and petrographical analysis. This survey established the occurrence of the talc-magnetite schist and tourmaline- quartz veins, the ideal environment for emerald occurrence on the mineral property.

2.4 Core Drilling

Core drilling was conducted in five localities in Muyovwe anomalous area. A combined total drill meterage of 224 metres was attained. Drill holes 1, 2 and 6 were drilled vertical (90⁰) while drill hole 4 was drilled at an angle of 60° from surface on a bearing of N100°E while drill hole 5 was drilled at an angle of 75° from the surface on a bearing of N070°E. Table 1 presents the grid positions (according to Muyovwe’s Grid), drill angle. Hole bearing and drilled depth for each hole.

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3.0 CURRENT WORK ON THE MINERAL PROPERTY

3.1. Exploration Methods, Procedures and Instrumentation

3.1.1 Grid Cutting A 50m x 50m grid was cut over the parts of the mineral property that were not covered by C. H. Muyovwe.

A Brunton compass, 50m measuring tape and axes were used to lay the grid lines.

The grid lines were used as traverse lines in geological mapping while the good stations were used as sample points in the magnetic and radiometric surveys. The mineral property was divided into three grids for the geophysical magnetic and radiometric surveys;

3.1.2 Old Grid The Old Grid lies in the northeastern corner of the property. This grid was cut by the late Charles H. Muyovwe for his magnetic survey (Muyovwe, C.H 1992). This author used this grid for the radiometric survey. This grid has a baseline connecting beacons A and C. The baseline is on a magnetic bearing of 130°. It is 1850m long. The grid lies to the northeast of this baseline.

3.1.3 Western Grid The Western Grid lies adjacent to and to the west of the Old Grid. This grid was cut by this author. It has been used for the magnetic and radiometric survey. This grid uses the boundary A - B as the baseline. The baseline is on a magnetic bearing of 85°30’and is 1100m long. The grid lies to the South of the baseline.

3.1.4 Eastern Grid The Eastern Grid lies adjacent to and to the southwest of the old grid. This grid was cut by this author. It has been used for the magnetic and radiometric survey.

This grid uses the baseline of the old grid. It lies to the southwest of the baseline

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3.1.5 Geophysical Magnetic and Radiometric Surveys A magnetic survey and a radiometric survey were conducted along the grid-lines. Readings were taken every 25 metres.

A Geometrics G816 Magnetometer was used to collect magnetic line data. This instrument measures the vertical component of the total magnetic field in gammas or nano - Telsa (nT). The data was gridded, contoured and plotted in Geosoft V 4.2.

A Geometrics GRS 101 Scintillometer was used to collect radiometric line data. This instrument measures total counts per second. The data was gridded, contoured and plotted in Geosoft V 4.2.

Table 2 presents a summary of the geophysical magnetic and radiometric survey parameters that were used.

3.1.6 Geological Mapping and Pit/ Trench Logging The geology of the mineral property was mapped while the pits and trenches were logged.

Figure 3 presents the photographs of the main pit, trenches and drill core.

Figure 4 presents the geological map of the old grid of the Nachingwali Mineral Property.

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3.1.7 Core Logging, Sampling and Sample Analysis

The core was logged and sampled. A total of 27 core samples were collected. The core samples were submitted to the Geological Survey Department of the Ministry of Mines and Minerals Development for Thin section preparations. The thin section and the remaining parts of the samples were submitted to the Geological Survey Department of the School of Mines at the University of Zambia.

Table 3 presents the sample number and the respective sample depths.

Table 3: Sample Numbers, Drill Hole Numbers and Sampled Depth.

Sample Number Drill Hole Number Sampled Depth

DH 1.1 DH 1 l00m

DH I.2 DH 1 15.0m

DH 1.3 DH 1 20.0m

DH 1.4 DH 1 25.6m

DH 1.5 DH 1 30.0m

DH1.6 DH 1 35.0m

DH1.7 DH 1 40.0m

DH 2.1 DH 2 39.0m

DH 4.1 DH 4 15.0m

DH 4.2 DH 4 18.0m

DH 4.3 DH 4 25.0m

DH 4.4 DH 4 30.0m

DH 4.5 DH 4 35.0m

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Table 3: continued…

DH 4.6 DH 4 40.0m

DH 4.7 DH 4 45.0m

DH 4.8 DH 4 50.0m

DH 4.9 DH 4 55.0m

DH 5.1 DH 5 13.2m

DH 5.2 DH 5 15.0m

DH 5.3 DH 5 20.0m

DH 5.4 DH 5 25.0m

DH 5.5 DH 5 30.0m

DH 5.6 DH 5 33.0m

DH 5.7 DH 5 35.0m

DH 5.8 DH 5 37.0m

DH 6.1 DH 6 25.0m

A microscopic study of the thin sections was conducted by the Late Dr. Osbert N. Sikazwe, lecturer, while the remaining parts of the samples were prepared and analyzed by Mr. Josh Kasengele, Senior Technician - Geochemical Laboratory. The microscopic study analyzed the rocks for emerald occurrence while the geochemical study analyzed the rocks for Chromium and Beryllium content.

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3.2 EXPLORATION RESULTS

3.2.1 Magnetic Results The results of the magnetic survey are presented as gridded total magnetic intensity maps in figure 5.

The magnetic data display most of the mineral property as an anomaly. The only non- anomalous areas are the northeastern, southeastern and southwestern edges of the plot.

The anomaly is presented as several disjointed anomalies as a result of the faulting the area has experienced.

3.2.2 Radiometric Results The results of the radiometric surveys are presented as gridded radiometric maps (in counts per second) in figure 6.

a) The radiometric data outlines three anomalous zones: -

i. Western, ii). Northeastern and iii) Southwestern anomalies.

a) Western Anomaly This is the biggest radiometric anomaly. It is a well-defined-anomaly trending NNW-SSE. It is about 450m wide (from line 50E to line 500E of the Western Grid) and about 700m long (from line 00S of the Western Grid to the boundary GE).

b) Northeastern Anomaly This is the second biggest radiometric anomaly. It is a well-defined anomaly trending NE-SW. It is about 300m wide (from line 00N to line 300N of the Grid) and about 500m long (from line l300E to line 1800E of the Old Grid).

c) Southeastern Anomaly This is the small radiometric anomaly. It is a well-defined anomaly trending NE-SW. It is a l00m wide (from line 950E to line l050E of the Eastern Grid) and about 300m long (from line 00S to line 300S of the Eastern Grid). It is open — ended to the Southwest.

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3.2.3 Analyses Results Core Logging Results Four emerald crystals were found in core from DH4 at the core depth of 28m i.e. true depth 24.2m at the location 14m from the borehole mouth (1700E/I00N) on the magnetic bearing of N030E.

The emerald crystals were medium green in color with fractures. All the crystals were less than 1cm in diameter.

Drill core has the following rock types;

i. Talc-magnetite schist iii. Biotite Phiogopite schist ii. Quartz Mica schist iv. Tourmaline Quartz veins

These rocks exhibited intense faulting and folding. The descriptions of these rock types are given below.

Talc-Magnetite Schist The local people call this rock type PAIDAS

The talc-magnetite schist is an easily weathered rock. Its color varies from grayish green when it is fresh to brown when it is weathered.

Mineralogically, composition includes talc, chlorite, amphibole and magnetite. This rock also at crops at Trench 3 and has been exposed in the Main Pit.

Quartz-Mica Schist The local people call this type of rock CHIKUNDULU

The quartz-mica schist is a grayish cream fine grained rock. The mineralogy of this rock comprises quartz and Muscovites as the main constituents. This rock is characterized by alternating quartz-rich and mica-rich bands running parallel to the foliation. Quartz occurs as slightly strained crystals. The tourmaline found in this rock is the black variety, schorl.

This rock has also been exposed in the Main Pit.

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Tourmaline-Quartz Veins The local people call this rock type FIRESTONE because of the dominant carbon - black tourmaline.

Several localities littered with tourmaline and quartz float occur on the plot. Insitu tourmaline-quartz veins have also been observed in the Main Pit where they occur emplaced in the talc-magnetite schist. They occur as one main vein with smaller veins branching off it. The main vein has a general SE-NW strike. They are near- vertical to vertical (80-90 degrees). These veins are coarse grained. The quartz is generally of the smoky type while the tourmaline is of the euhedral crystal black type, schorl. The tourmaline content varies from trace to about 20%. Medium to coarse grained muscovite is a common accessory mineral of this rock.

This rock has also been exposed in the Main Pit and surrounding area.

Biotite-Phlogopite Schist The local people call this rock type MAALE-MAALE

The biotite-phlogopite schist occurs kin relatively thin zones around the tourmaline- quartz veins in the talc-magnetite schist. It appears to have been formed by the reaction between the talc-magnetite schist and the hot tourmaline-quartz vein- forming fluids during the emplacement of the latter. This rock varies from medium to coarse grained and is usually the richest emerald-bearing zone. It is foliated parallel to the strike of the tourmaline quartz veins.

The core logs are presented in figure 6. The descriptions of the core logs for the individual drill holes are given below:

DH1 DH 1 intercepted talc-magnetite schist at the surface down to the end of the drill hole (46m depth). The talc-magnetite schist has been cut by two tourmaline- quartz veins (from 1 8m to 20m and from 25m to 26m). The talc-magnetite schist continues beyond the end of the drill hole.

DH2 DR 2 intercepted quartz-mica schist and talc-magnetite schist. The quartz-mica schist lies from the surface down to the 37.5m depth. It has been cut by three tourmaline-quartz veins (from l0m to 16m, from 22m to 24m and from 33.5m to 34m). The quartz-mica schist is underlain by talc-magnetite schist from 37.5m depth and continues beyond the end of the borehole (40m depth). The talc- magnetite schist has been cut by a 20cm — wide tourmaline quartz vein at 38m depth.

DH4 DH 4 intercepted laterite, talc-magnetite schist, quartz-mica schist and Biotite- Phlogopite schist. Laterite starts at the surface and ends at 13m depth. The talc- magnetite schist is the main rock formation. It lies below the laterite from 13m depth and continues beyond the end of the bore hole (64m depth). This schist has been cut by a band of biotite-phlogopite schist (from 19.5m to 20m), a band of

Page 21 of 46 quartz-mica schist (from 20m to 28m) and by a tourmaline quartz vein (from 28m to 29m).

DH5 DH 5 intercepted laterite and talc-magnetite schist. Laterite starts at the surface and ends at 9m depth where talc-magnetite schist starts. The talc- magnetite schist continues beyond the end of the drill hole (44m depth).

DH6 DH 6 intercepted laterite, quartz-mica schist, talc-magnetite schist and a tourmaline-quartz vein. The laterite starts at the surface and ends at 5m depth. The quartz-mica schist lies below the laterite and continues beyond the end of the drill hole (30m depth). Talc-magnetite schist occurs as a band in the quartz-mica schist (from 24m to 25m) while the tourmaline — quartz vein is sandwiched by the talc- magnetite schist at 25m depth and the quartz-mica schist at 26m depth.

3.2.4 Microscopic Analysis Results The detailed report on the microscopic determination of the presence of emeralds in the core samples is presented in Appendix 3.

The mineral that seems to approximate emerald in its optical properties was observed in the following thin sections; DH 1.6, DH 2.1 DH 4.5, DH 4.6 and DH 5.8 (Sikazwe, 2002).

Table 4 below presents the grid location (Old Grid) and depth the thin section core samples came from.

Table 4: Grid Location and Depth of Emerald - Bearing Thin Sections.

Thin Section No. Drill Hole No. Grid Location True Depth (m)

DH 1.6 DH 1 1710E/160N 35.0

DH 2.l DH 2 1770E/130N 39.0

DH 4.5 DH 4 l7.5m, N030E from 30.3 1700E/100N

DH 4.6 DH 4 20.0m, N030E from 1 34.6 700E/100N

DH 5.8 DH 5 9.6m, N060E from 1 35.7 645E/28N

This table shows that the emeralds that were observed in thin sections lie between 30m and 40m depth.

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3.2.5 Geochemical Analysis Results

The report on the analysis of core samples for beryllium (Be) and chromium (Cr) content is presented in Appendix 4.

Beryllium content high enough to form beryl was found in the following samples; DH1.1, DH1.3, DH1.7. DH4.1, DH4.3. DH4.4, DH4.6, DH4.7, DH5.1, DH5.3, DH5.5, DH5.8 DH6.1.

Chromium content high enough to convert beryl to emerald was found in the following samples; DH4.1, DH4.2, DH4.4, DH4.6, DH4.8, DH4.9, DH5.1, DH5.3, DH5.6, DH5.7 and DH5.8.

The above results show that the following samples had positive results for both Be and Cr content; DH4.1, DH4.4, DH4.6, DH5.1. DH5.3, DH5.5 and DH5.8

This means that these samples came from localities that had a conducive environment for the formation of emeralds.

3.3 Discussion The overlapping magnetic and radiometric anomalies delineated the areas that can possibly host emeralds. The microscopic analysis of core samples identified possible emerald presence in the drill hole localities. The geochemical analyses for Be and Cr content in the core samples confirmed drill hole localities that have a conducive environment for emerald mineralization. The samples DH4.1, DH4.4, DH4.6, DH5.l. DH5.3, DH5.5 and DH5.8 showed the possible presence of chromium-containing beryl, emeralds. This was further confirmed by the presence of microscopic emeralds in the samples DH4.4 and DH4.6 (i.e. drill depth 30m and 40m) and by the presence of microscopic emeralds in the hand specimen from drill depth 28m of DH4.

4.0 LABORATORY STUDY OF RANDOMLY PICKED SAMPLED ROCKS.

 Introduction Twenty seven (27) thin sections of metamorphic rocks, various schist’s, from the emerald Mining area in Ndola Rural were submitted for microscopic examination. The purpose was to establish if at all these thin sections contained emeralds. Because emerald usually has optical characteristics that are similar to minerals such as apatite and quartz, it was decided that a rough emerald crystal co-existing with quartz be cut into a thin section for comparison. Hardness, which influences the cutting and polish ability of minerals, is different for the three minerals whose optical characters are similar. The hardness of beryl (parent to emerald) is 8, while that of quartz and apatite is 7 and 5, respectively on the Mohs Hardness Scale. Page 23 of 46

 Results

The thin section (No. KW) bearing emerald and quartz was examined. This examination showed that emerald was more strongly fractured than quartz (Photo Nos. 0 & 8) probably because it is harder. The observed fracturing must have been induced during cutting and polishing of the slab containing emerald and quartz. Emerald shows a higher relief than quartz (Photo No. 7). Furthermore, emerald showed birefringence colors that ranged from yellow tints to purplish tints (Photo No. 8). The higher order colors were probably because the thin section was thicker than normal. This point was to some extent also evidenced by the slight pleochroism (i.e. tints of green in plane polarized light) displayed by emerald (Extinction in the longitudinal crystals was parallel or sub-parallel to the c-axis.

Using the above result, the rest of the thin sections were examined to establish if they contained any emeralds. These thin sections are described below in terms of mineralogy. Photomicrographs of the same thin sections have also been taken.

 DH 1.6 (Chlorite Schist)

Mineralogy

a) Emerald, (?) - Colorless coarse grained longitudinal euhedral crystals with a fracture nearly perpendicular to the c-axis; displayed grayish birefringence colors and nearly straight extinction.

b) Magnetite - Black euhedral to sub-euhedral mineral.

c) Matrix - Fine grained and consists of chlorite + minor sericite + talc (?).

Photomicrograph DH 1.6— Shows the above minerals in cross polarized light at a magnification of X25 (i.e. X2.5 objective magnification and X1O eye piece magnification); Emerald crystals in the NW and SE corners of the photo.

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 DH 2.1 (Actinolite-Mica Schist).

Mineralogy

a) Emerald (?) - Colorless coarse grained longitudinal

b) Magnetite - Black euhedral to sub-euhedral mineral

c) Amphibole (actinolite?) - Slightly pleochroic coarse grained longitudinal sub- euhedral - euhedral crystals displaying a single direction cleavage and yellowish tints as birefringence colors; Extinction is oblique to the c-axis; Basal sections display a two directional cleavage typical of amphiboles and symmetrical extinction.

d) Muscovite: - colorless anhedral non-pleochroic mica showing high order bluish- yellow birefringence colors and a ‘chicken pox texture

e) Matrix - Fine grained and perhaps composed of chlorite + minor sericite + talc (?).

.

Photomicrograph DH 2.1 — Shows the above minerals in cross polarized light at a magnification of X25 (i.e. X2.5 objective magnification and X1O eye piece magnification); Emerald crystals occur in the NE corner.

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 DH 4.5 (Mica Schist)

Mineralogy

a) Emerald, (?) - Colorless coarse grained longitudinal euhedral crystals with a fracture nearly perpendicular to the c-axis; displayed yellowish to purplish tints birefringence colors (probably section was thicker than normal) and nearly straight extinction.

b) Magnetite:-Black euhedral to sub-euhedral mineral.

c) Muscovite:-colorless anhedral non-pleochroic mica was showing high order bluish-yellow birefringence colors and a ‘chicken pox’ texture.

d) Matrix - Fine grained and composed probably of chlorite + minor sericite + talc (?).

Photomicrograph DH 4.5 — Shows the above minerals in cross-polarized light at a magnification of XIOO (i.e. X1O objective magnification and X1O eyepiece magnification). Emerald crystals are disposed in a nearly NE-SW direction.

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 DH 4.6 (Actinolite-Chlorite Schist)

Mineralogy

a) Emerald (?) - Colorless coarse grained longitudinal euhedral crystals with a fracture nearly perpendicular to the c-axis; displayed grayish to purplish birefringence colors and nearly straight extinction; The arrangement of birefringence colors appear to show zoning.

b) Magnetite - Black euhedral to sub-euhedral mineral

c) Amphibole,(actinolite or tremolite?) - Slightly pleochroic coarse grained longitudinal sub-euhedral - euhedral crystals displaying a single direction cleavage and yellowish tints as birefringence colors; Extinction is oblique to the c-axis; Basal sections display a two directional cleavage typical of amphiboles and symmetrical extinction.

d) Muscovite:- colorless anhedral non-pleochroic mica showing high order bluish- yellow birefringence colors and a ‘chicken pox’ texture.

e) Matrix - Fine grained and perhaps composed of chlorite + talc (?)

Photomicrograph DH 4.6-. Shows the above minerals in cross polarized light at a magnification of X25 (i.e. X2.5 objective magnification and X1O eye piece magnification); Emerald longitudinal crystals are disposed in a nearly EW direction; Muscovite occurs almost at the centre of the photo.

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 DH 5.8 (TREMOLITE – MICA SCHIST)

Mineralogy

a) Emerald (?) – Colorless coarse grained longitudinal euhedral crystals with a fracture nearly perpendicular to the c-axis: displayed grayish birefringence colors’ and nearly straight extinction b) Magnetite (?) - Black euhedral to sub euhedral mineral. c) Amphibole (tremolite?) – Slightly pleochroic course grained basal euhedral crystal displaying a two directional cleavage typical of amphiboles and high order yellowish green birefringence colors’; Extinction is symmetrical. d) Muscovite - colorless anhedral non-pleochroic mica showing high order bluish – yellow birefringence colors and a ‘chicken-pox’ texture. e) Matrix – Fine grained and composed of chlorite + magnetite + muscovite + talc (?)

Photomicrograph DH 5.8 - Shows emerald in the center in cross-polarized light at a magnification of X25 (i.e. X2.5 objective magnification and X1O eyepiece magnification).

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 LABORATORY CONCLUSION AND RECOMMENDATIONS Examination of thin sections shows that some of them may contain emerald. Optical properties of emerald, however, are very close to minerals like quartz and apatite, making it very difficult to identify in thin section. Macroscopic examinations of hand specimens in fact, reveal the presence of emeralds.

It may also be necessary to do and XRD on the rocks from which thin sections were obtained in order to establish more reliably their mineralogy and our Department has this piece of equipment; where emerald will be present XRD will detect. The chemical analysis of the same rocks, particularly in terms of Be and Cr, would also help particularly when compared with the mineralogy established with XRD. For instance, the higher the Be. and Cr contents in the rocks samples the more probable the rocks will contain emerald. All the above analyses can be done in the Geology Department of the School of Mines.

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Geological Conclusion Emeralds occur on the Nachingwali Mineral Property, Plot 67, and Ndola Rural Emerald Restricted Area. The rock formation through which drill Hole DH4 passes showed the best emerald mineralization among the five drilled localities. Analyses of the core showed that emerald occurrence possibly starts at the drill depth of 15.Om. Since drill depth 15.Om of this drill hole is the beginning of in situ rock, therefore eluvial emeralds may be present in the laterite above this depth.

Recommendations It is recommended that open cast mining commences. Figure 8 presents the recommended Pit-site, the dumpsite and the campsite.

Table 5; Mining plan to be used on the following parameters;

Final Pit Slopes (maximum) 63 degrees

Maximum Pit Depth 50 metres

Pit Cross Sections 90 metres at top, 40 metres at bottom

Bench Heights 10 metres

Bench Widths 5 metres

Haulage Road Gradient 1 in 6

Depth Cut Off From 10 metres to 50 metres

Minimum Mineable Ore Thickness 10 metres

Tonnage of Material to Maximum Pit Depth 16,000,000 tones (waste plus ore)

*Tonnage of Ore to Maximum Pit Depth (Run of Mine) 75,000 tones

Waste Disposal Sites 350 to 400 metres from the Pit

Waste Dump Design End-Tip Method

Back Fill Areas in the Pit Pit to be filled

Ore recovery is estimated at about 75% of what is Insitu.

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Memorandum of risk The above conclusion represents the author’s best current estimate of the potential of the explored area with respect to the available exploration facilities.

The emerald crystals that were recovered during exploration were fractured and less than 1cm in diameter. The recovery of pieces of emerald, the presence of beryllium, chromium and micro-emeralds in the drill core has led to the assumption that emeralds of commercial value may be present in the deposit.

It must be recognized that no business is free of major risks and few exploration surveys are free of errors of omission or commission. Therefore, investors should be aware that this business has inherent risks that must be fully taken into consideration at the time of decision making.

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