A Competent Person's Report on the Shefa Yamim (Atm)

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A Competent Person's Report on the Shefa Yamim (Atm) A COMPETENT PERSON’S REPORT ON THE SHEFA YAMIM (A.T.M.) LTD PRECIOUS STONES PROJECT, NORTHERN ISRAEL October, 2017 Prepared by: J. Hattingh and L. J. Erasmus DOCUMENT CONTROL SHEET 2 AUTHOR: Dr Johan Hattingh Date: October 2017 PhD (Geology), Pr. Sci. Nat. CHECKED BY: Lourens J Erasmus Date: October 2017 Hons B Sc (Geology), B Com, MBA, Pr. Sci. Nat. APPROVED BY: Dr Johan Hattingh Date: October 2017 PhD (Geology), Pr. Sci. Nat. PREPARED FOR SHEFA YAMIM (A.T.M.) COPY COPY NO RECEIVED BY DATE Client Copy File Copy COPY NO: 1 Please sign and fax / email back to Creo Design on +27 21 880 0226 / [email protected] to acknowledge receipt. 3 Cover photo: South-eastward view from Mt. Carmel onto the Kishon River floodplain. Cover photo acknowledgement: Zilberman, E. and Sandler, A., 2013. Coastlines and morphological surfaces in the western Lower Galilee- a key to restoring relief evolution as a response to uplift and stable periods processes. Trip No. 4, Israel Geological Society Annual Meeting, Akko. 4 TABLE OF CONTENTS 1. EXECUTIVE SUMMARY ............................................................................................................... 10 2. INTRODUCTION AND TERMS OF REFERENCE............................................................................. 14 3. COMPLIANCE .............................................................................................................................. 15 3.1 Competent Person ............................................................................................................... 15 3.2 Site Visit and Data Validation .............................................................................................. 15 3.3 Reliance on other Experts .................................................................................................... 15 3.4 Declarations ......................................................................................................................... 16 4. VERIFICATION ............................................................................................................................. 16 4.1 Mineral Tenure .................................................................................................................... 16 4.2 Permitting ............................................................................................................................ 16 4.3 General ................................................................................................................................ 16 5. PROPERTY DESCRIPTION AND LOCATION .................................................................................. 17 6. GENERAL INFORMATION AND LOGISTICS ................................................................................. 21 6.1 Accessibility ......................................................................................................................... 21 6.2 Topography......................................................................................................................... 21 6.3 Drainage .............................................................................................................................. 22 6.4 Climate and Vegatation ...................................................................................................... 23 6.5 General Infrastructure ........................................................................................................ 23 7. HISTORICAL BACKGROUND ........................................................................................................ 23 8. GEOLOGICAL SETTING .............................................................................................................. ..39 8.1 Regional Geology and Setting ............................................................................................. 39 8.2 Cretaceous to Cenozoic Rocks ............................................................................................ 44 8.2.1 Rakefet-Muhraka-Kishon drainage system ................................................................ 53 8.3 Kishon Valley-fill Geology ................................................................................................... 53 8.3.1 Mid Reach .................................................................................................................. 54 8.3.2 Distal Reach ............................................................................................................... 58 8.4. Mineralisation .................................................................................................................... 59 9. EXPLORATION AND DATA COLLECTION ..................................................................................... 61 9.1 Introduction ........................................................................................................................ 61 9.2 Geological Mapping ............................................................................................................ 62 9.2.1 Topographic Data ....................................................................................................... 62 9.2.2 Government Regional Geological Mapping ............................................................... 62 9.2.3 Mt. Carmel Mapping .................................................................................................. 62 9.2.4 In-house Geological Mapping .................................................................................... 63 9.3 Geophysics ........................................................................................................................... 63 9.4 Geochemical Surveys ........................................................................................................... 63 9.4.1 Mobile Metal Ion (MMI) Technology ......................................................................... 65 9.5 Drilling Driling ...................................................................................................................... 65 9.5.1 Introduction................................................................................................................ 66 9.5.2 Drilling in the Distal Reach ......................................................................................... 66 9.5.3 Drilling in the Distal towards Mid Reach Area ........................................................... 67 9.5.4 Drilling in the Mid Reach 1st target: Tel Kashish - Jalame Junction............................ 67 9.5.4.1 Shefa Yamim SY-35 to SY-64 Drilling campaign (Zone 2, Oct 2013 ................ 70 9.5.4.2 Shefa Yamim SY-65 to SY-109 Drilling campaign (Zone 1, May-Jun 2014) ..... 72 9.5.4.3 Shefa Yamim SY-110 to SY-137 Drilling Campaign (Zone 1; July 2016) ......... 73 9.5.5 General Stratigraphy of the Mid Reach Fluvial and Alluvial Sediments .................... 74 Bulk Sampling ........................................................................................................................... 74 9.6.1 Introduction................................................................................................................ 75 9.6.2 Bulk sampling in the Kishon River Mid Reach target: Tel Kashish - 5 Jalame Junction ...................................................................................................... 76 9.6.2.1 Bulk Sampling in Zone 1 (SY-65 to SY-109 area).......................................... 77 9.6.2.2 Bulk Dampling in Zone 2 (Bulk sample in SY-982 area) ............................. 106 9.6.3 Density ................................................................................................................... 103 9.7 Thin Sections and Petrographic Descriptions ................................................................. 110 10. DATA PROCESSING ................................................................................................................. 107 10.1 Modelling ........................................................................................................................ 107 10.1.1 Mid Reach Deposit Modelling .............................................................................. 107 10.1.2 Valley Floor Modelling .......................................................................................... 107 10.1.3 Volume Estimation ............................................................................................... 115 10.2 Mineral Processing ......................................................................................................... 120 10.2.1 Mineral Process Procedure…………………………………………………………….........………..120 10.2.2 Mineral Sorting…………………………………………………………………………….......…………...126 11. MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES .................................................... 126 11.1 Introduction .................................................................................................................... 126 11.2 Geological Interpretation ............................................................................................... 126 11.2.1 Mid Reach Gravel Deposits ................................................................................. 127 11.3 Audit Procedure .............................................................................................................. 128 11.4 Mineral Resource and Reserve Estimation Methodology ............................................. 128 11.5 Quality and Quantity of Data .........................................................................................
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