Business Development of the Goleshi Mine Scoping Study Report

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Business Development of the Goleshi Mine Scoping Study Report Business Development of the Goleshi Mine Scoping Study Report In cooperation with Business Development of the Goleshi Mine Scoping Study Report GIZ Document control sheet Project data Client: Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Project title: Business Development of the Goleshi Mine Project No.: 2019-0123 Document type: Scoping Study Report Document data Document: P:\2019\2019-0123\Projekt\05\12\Report\Final\PEA Master Goleshi_FINAL16122019.docx Issued on: 16/12/2019 Revision-No.: 07 Handling and control of document Reviewed by: Prepared by: ....................................................... ...................................................... Dr. Karsten Galipp EurGeol Christian Masurenko Director International Projects Team Leader INROS LACKNER SE / ECTerra Project No. 2019-0123 Page IV Business Development of the Goleshi Mine Scoping Study Report GIZ Table of contents Document control sheet .................................................................................................... III Table of contents ............................................................................................................... IV List of Tables ...................................................................................................................... IX List of Figures .................................................................................................................... XI Abbreviations .................................................................................................................. XIV Cautionary Statement ...................................................................................................... XV 1 Executive Summary ................................................................................................. 16 1.1 Location ............................................................................................................................... 17 1.2 Licence ................................................................................................................................ 17 1.3 History ................................................................................................................................. 17 1.4 Regional and Deposit Geology ........................................................................................... 18 1.5 Historical Resources and Reserves .................................................................................... 20 1.6 1984 Historical Resources and Reserves Estimates .......................................................... 21 1.7 Reserves in Pillars and Panels ........................................................................................... 22 1.8 2008 Historical Resources and Reserves ........................................................................... 23 1.9 Exploration .......................................................................................................................... 25 1.10 Underground Exploration Drives and Raises ...................................................................... 27 1.11 Drilling ................................................................................................................................. 28 1.12 Sample Preparation, Analyses, and Security ..................................................................... 29 1.13 Mineral Resource Estimates ............................................................................................... 29 1.14 Mineral Reserve Estimates ................................................................................................. 29 1.15 Geology, Resources and Historic Mining Interpretations and Conclusions ........................ 29 1.16 Geology and Resources Recommendations ...................................................................... 32 1.16.1 Geology and Resources ................................................................................................ 32 1.16.2 Mining ............................................................................................................................ 35 1.16.3 Conceptual Mineral Processing ..................................................................................... 36 1.17 Preliminary Finance Model ................................................................................................. 38 1.17.1 CAPEX ........................................................................................................................... 38 1.17.2 Conceptual CAPEX – Observations .............................................................................. 38 1.17.3 ROM, Production and Reserves .................................................................................... 38 1.17.4 Preliminary Economic Analysis ...................................................................................... 39 1.18 Marketing ............................................................................................................................ 40 2 Introduction .............................................................................................................. 43 2.1 Overview ............................................................................................................................. 43 2.2 Sources of Information ........................................................................................................ 44 2.3 Reliance on Other Experts .................................................................................................. 44 2.4 Property Description and Location ...................................................................................... 45 2.5 Licences and Tenure .......................................................................................................... 46 2.5.1 Licencing Details ............................................................................................................ 46 2.5.2 Licensee ......................................................................................................................... 46 2.5.3 Duration ......................................................................................................................... 46 2.5.4 Re-establishing the Goleshi Mining licence ................................................................... 47 2.5.5 Independent Commission for Mines and Minerals (ICMM) – Functions ........................ 48 INROS LACKNER SE / ECTerra Project No. 2019-0123 Page IV Business Development of the Goleshi Mine Scoping Study Report GIZ 2.5.6 Privatization Agency of Kosovo (PAK)........................................................................... 49 3 Accessibility, Climate, Local Resources, Infrastructure and Physiography ....... 52 3.1 Rail ...................................................................................................................................... 52 3.2 Ports .................................................................................................................................... 52 4 History ...................................................................................................................... 53 4.1 Historical Resource and Reserves...................................................................................... 55 4.2 1984 Historical Resources and Reserves Estimates .......................................................... 56 4.3 Method for Estimation ......................................................................................................... 56 4.4 Classification and Categorization of Historic Magnesite Resources and Reserves ........... 58 4.5 2008 Historical Resources and Reserves ........................................................................... 59 4.6 Reserves in Pillars and Panels ........................................................................................... 61 5 Geological Setting and Mineralisation ................................................................... 63 5.1 Regional Geology ............................................................................................................... 63 5.2 Project Geology .................................................................................................................. 66 5.3 Deposit Geological Structure .............................................................................................. 68 5.4 Physical Criteria .................................................................................................................. 71 5.5 Chemical Criteria ................................................................................................................ 71 5.6 Loss on Ignition (LOI) Statistics .......................................................................................... 71 5.7 Deposit Genesis .................................................................................................................. 71 6 Exploration ............................................................................................................... 73 6.1 Underground Exploration Drives and Raises ...................................................................... 75 6.2 Drilling ................................................................................................................................. 83 6.3 Sample Preparation, Analyses, and Security ..................................................................... 87 6.4 Data Verification .................................................................................................................
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