Technical Report, Karibib Gold Project, 11 October 2019
Technical Report for the Karibib Gold Project in Namibia
Update of Exploration Activities
Report Prepared By:
David Underwood, BSc (Hons), Chartered Professional Geologist (SACNASP) Vice President Exploration Osino Resources Corp.
11 October 2019
Osino Resources Corp. Suite 810 – 789 West Pender Street Vancouver, BC V6C 1H2
AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019
Technical Report for the Karibib Gold Project in Namibia - Update of Exploration Activities
Report prepared for: Osino Resources Corp. Suite 810 – 789 West Pender Street Vancouver, BC V6C 1H2
Effective date: 11 October 2019 Signature date: 15 October, 2019
Report prepared by:
David Underwood BSc (Hons), Chartered Professional Geologist (SACNASP) Vice President Exploration Osino Resources Corp.
______Cover: Photo of Diamond Drilling at Twin Hills Central, Third Quarter, 2019.
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019
Table of Contents
Table of Contents ...... i List of Tables ...... iii List of Figures ...... iv 1. Summary ...... vi 2. Introduction ...... 1 2.1. Scope of Work ...... 2 2.2. Basis of Technical Report ...... 2 2.3. Qualified Person ...... 3 2.4. Site Visit ...... 3 3. Reliance on Other Experts ...... 3 4. Property Description and Location ...... 4 4.1. Mineral Tenure ...... 4 4.2. Underlying Agreements, Permits and Authorizations ...... 5 4.3. Environmental Considerations ...... 7 4.4. Mining Rights in Namibia ...... 8 5. Accessibility, Climate, Local Resources, Infrastructure and Physiography ...... 9 5.1. Accessibility ...... 9 5.2. Climate 9 5.3. Local Resources and Infrastructure ...... 10 5.4. Physiography ...... 10 6. History ...... 10 7. Geological Setting and Mineralization ...... 15 7.1. Regional Geology ...... 15 7.1. Property Geology ...... 18 8. Deposit Types ...... 24 9. Exploration ...... 28 9.1. Geochemistry ...... 28 Stream Sediment Surveys ...... 28 Soil Sampling Surveys ...... 29 Rock Chip Sampling ...... 34 9.2. Geophysical Surveys ...... 36 Regional Survey ...... 36 Geophysical Surveys at Goldkuppe (EPL3739) ...... 37
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Geophysical Surveys at Twin Hills (EPL3739, EPL6953, EPL6167, EPL5649, EPL5658, EPL5117 and EPL5196) ...... 38 9.3. Exploration in the Project's Wilhelmstal Property (EPL 3738) ...... 39 Geochemistry ...... 39 Geophysical Exploration ...... 42 10. Drilling ...... 43 Drilling at Goldkuppe, Oasis and Wedge (EPL 3739) ...... 43 Drilling at Twin Hills Project (EPL 3739, 5658, 6953, 6167, 5196, 5649) ...... 49 11. Sample Preparation, Analyses and Security ...... 59 12. Data Verification ...... 64 13. Mineral Processing and Metallurgical Testing ...... 65 14. Mineral Resource Estimates ...... 65 15. Adjacent Properties ...... 65 16. Other Relevant Data and Information ...... 66 17. Interpretation and Conclusions ...... 66 18. Recommendations ...... 67 19. References ...... 68
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List of Tables
Table 1-1: The EPLs comprising the Karibib Gold Project in Namibia...... vii Table 4-1: Details of the nine EPLs making up the Karibib Gold Project...... 5 Table 4-2: Summary of farm access agreements for the Karibib Gold Project...... 6 Table 6-1: Summary of Historic Exploration by AAPS on EPL 3738 ...... 13 Table 6-2: Historical exploration carried out in the area now covered by EPL5880...... 14 Table 7-1: General stratigraphy of the Damara Supergroup in the Central Zone of the Damara Belt with selected significant gold occurrences highlighted...... 19 Table 9-1: Summary of Targets from Geochemical and Geophysical Data...... 36 Table 10-1: Significant Intercepts from Historical and 2016 Osino Drilling at Goldkuppe...... 45 Table 10-2: Significant Intersections for 2017 RC Drilling at Goldkuppe Extensions, Oasis and Wedge...... 47 Table 10-3: Significant Intercepts 2018 Diamond Drilling at Oasis and Wedge. ... 49 Table 10-4: Significant Intercepts in Twin Hills East RC and Diamond Drill Program...... 50 Table 10-5: Significant Intersections for Twin Hills Central Diamond Drill Program...... 51 Table 10-6: DD Hole Specifications...... 57 Table 10-7: Significant DD Intersections at B1, Cheshire Cat and Birds Nest Targets...... 57 Table 10-8: RC Hole Specifications...... 58 Table 10-9: Significant Intersections at the Leatherman Target...... 58 Table 18-1: General planning for Osino’s work programs in Namibia in 2019 (prior to Twin Hills Central Discovery)...... 67
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List of Figures
Figure 1-1: Location of all Osino’s EPLs in Namibia, note the location of those EPLs that make up the Karibib Gold Project Area...... viii Figure 2-1: Location of all Osino’s EPLs in Namibia, note the location of those EPLs that make up the Karibib Gold Project Area...... 1 Figure 4-1: Location of the EPLs which make up the Karibib Gold Project Area. ... 4 Figure 7-1: Regional geological setting of the Karibib Gold Project in the Damara Belt...... 16 Figure 7-2: Regional geology of the Karibib Gold Project in the Damara Belt...... 17 Table 7-2: The lithostratigraphy of the Damara Supergroup. The Karibib Gold Project is within the ‘Swakop Zone’ or Central Zone (of the Damara Orogen)...... 20 Figure 7-3: Karibib Gold Project geology with the location of priority prospects at Twin Hills and Goldkuppe-Wedge-Oasis clusters (and other targets identified)...... 22 Figure 7-4: The Geology of the area around Goldkuppe-Oasis and Wedge...... 23 Figure 7-5: Geology of the Twin Hills East area (Wicker, 2019)...... 23 Figure 8-1: Mineralization styles in the Twin Hills Central drilling (to date)...... 25 Figure 8-2: Examples of Goldkuppe Mineralization...... 27 Figure 9-1: EPL3739 - Soil Sampling and Anomalies...... 31 Figure 9-2: EPL3739 – Geochemical Targets Along Karibib Fault...... 32 Figure 9-3: Calcrete Sampling Southwest of Twin Hills...... 32 Figure 9-4: Assays for Top of Calcrete Sampled with Percussion Rig...... 34 Figure 9-5: Rock Chip Sampling on EPL3739...... 35 Figure 9-6: Regional Magnetics (1VD) Draped onto Geology...... 37 Figure 9-7: Regional Magnetics and Ground Magnetics (brown) draped over Geology for area of EPL5649, EPL5658 EPL5117 and EPL5196...... 38 Figure 10-3: RC and Diamond Drilling at Goldkuppe Extensions, Oasis and Wedge...... 48 Figure 10-4: Twin Hills Cluster - Percussion Drilling for Bedrock Samples...... 51 Figure 10-5: Assay Results for Phase 1 Diamond Drill Program at Twin Hills Central...... 52 Figure 10-6: Simplified Geological Section through OKD005 – OKD001 – OKD002...... 53 Figure 10-7: Simplified Geological Section through OKD003 – OKD004...... 54 Figure 10-8: Phase 2 Drill Program at Twin Hills Cluster...... 56
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 iv AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019
Figure 10-9: Drill Hole Positions, Southern Part of Wilhelmstal Property...... 57 Figure 11-1: Example of Coarse Reject Duplicate results for 2018 drilling at Twin Hills East, Wedge and Oasis...... 63 Figure 11-2: Analytical results of Au in standard (CRM) G307-3 (2017 and 2018 reverse circulation and diamond drilling)...... 63
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 v AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019
1. Summary
Introduction
This technical report (the "Technical Report") was prepared pursuant to National Instrument 43-101 ("NI 43-101") in accordance with Form 43-101F1 for a Technical Report, by Mr David Underwood, BSc (Hons), Chartered Professional Geologist (SACNASP), as Vice President Exploration of Osino Resources Corp. (“Osino”) and as a Qualified Person pursuant to NI 43-101. As Mr. Underwood is the Vice President Exploration of Osino, he is not independent for the purposes of NI 43-101. This Technical Report is compiled in order to update significant and material activities of Osino on the Karibib Gold Project in Namibia (the “Project” or "Karibib Gold Project") since the date of the last technical report on the Project dated May 17, 2018 (the "2018 Technical Report"), which was prepared by SRK Consulting (South Africa) (Pty) Ltd. for Romulus Resources Ltd. ("Romulus"), which became Osino on June 26, 2018 under a reverse takeover of Romulus. Accordingly, this Technical Report refers to and incorporates much disclosure previously provided in the 2018 Technical Report.
Osino was incorporated under the laws of British Columbia on November 22, 2005, under the name "Romulus Resources Ltd.", and changed its name to "Osino Resources Corp." on June 26, 2018 pursuant to a reverse takeover transaction.
Property Description and Ownership
Osino, through its subsidiaries: Osino Gold Exploration (Pty) Ltd. (95% owned) ("Osino Exploration"), Osino Namibia Minerals Exploration (Pty) Ltd. (90% owned) ("Osino Namibia"), and Terrace Minerals Exploration (Pty) Ltd. (80% owned) ("Osino Terrace"), currently owns or has agreements in place to explore twenty-two Exclusive Prospecting Licenses (“EPLs”) in Namibia, which cover approximately 650,000ha (Figure 1-1). Of these twenty-two EPLs, the Karibib Gold Project is comprised of nine mostly contiguous EPLs; namely EPL3738, 3739, 5117, 5196, 5649, 5658, 5880, 6167, and 6953, which cover a surface area of 118,965ha. The nine Project EPLs are Active, except EPL5880 which is Pending Renewal and is expected to become Active before the end of 2019 (Table 1-1).
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 vi AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019
Table 1-1: The EPLs comprising the Karibib Gold Project in Namibia
Osino subsidiary Date (from) Date (to) Area 2 EPL No (% owned) Status [DY-MO-YR] [DY-MO-YR] (km ) Area (Ha)
EPL 3738 Osino Exploration Active 11-09-2007 12-05-2021 175.21 17,521 (95%)
EPL 3739 Osino Exploration Active 11-09-2007 15-05-2021 271.01 27,101 (95%)
EPL 5117 Osino Namibia Active 09-04-2014 08-04-2021 14.18 1,418 (90%)
EPL 5196 Osino Namibia Active 09-04-2014 08-04-2021 19.98 1,998 (90%)
EPL 5649 Osino Namibia Active 30-09-2014 15-05-2021 15.96 1,596 (90%)
EPL 5658 Osino Terrace Active 23-09-2014 22-05-2020 199.05 19,905 (80%)
EPL 5880 Osino Namibia Pending 4-10-2016 03-10-2019 473.29 47,329 (90%) Renewal
EPL 6167 Osino Exploration Active 23-02-2017 22-02-2020 15.83 1,583 (95%)
EPL 6953 Osino Exploration Active 13-06-2018 12-06-2021 5.14 514 (95%)
The Karibib Gold Project in Namibia is an early stage exploration project and comprises a group of exploration targets occurring within the Southern Central Zone of the northeast trending Neoproterozoic Damara Belt. The Project is located near the regional towns of Usakos, Karibib and Omaruru between 100 to 175km northwest of Namibia’s capital city, Windhoek. Although the area has been subjected to various phases of exploration in the past, it has not previously progressed to more advanced stages of exploration, due to a poor understanding of the structural and lithological controls of mineralization and a resulting inability to establish geological continuity, which is required for Mineral Resource delineation. This Technical Report has been compiled with the purpose of detailing the progress made in the approximately 18 months since the previous 2018 Technical Report and the significant results that were obtained through systematic regional and follow-up exploration programs on the Project.
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 vii AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019
The Project is located in central Namibia in the area known as the Central Plateau approximately 150 km northwest of the capital city of Namibia, Windhoek. The Project refers to nine contiguous or closely spaced EPLs with a combined size of 1,189.7km2 (118,965ha).
Figure 1-1: Location of all Osino’s EPLs in Namibia, note the location of those EPLs that make up the Karibib Gold Project Area.
Accessibility, Climate, Local Resources, Infrastructure and Physiography
The Project areas are road accessible via Namibia’s extensive sealed and secondary gravel road networks. Generally, travel time from Windhoek is between 3-5 hours by road to the project area. Within the Project area, access is provided on a series of non- maintained roads and cross country 4 wheeled drive tracks.
A number of regional towns and settlements are located within the general Project area, including Karibib, Omaruru and Wilhelmstal. Electrical power is readily available in most parts of the area, with 330 kV power lines within approximately 35 km of all parts of the Project area.
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 viii AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019
Coldest temperatures are recorded in the winter between June and August. Minimum temperatures are commonly below 0°C, but generally in the range between 5 °C to 25 °C. The highest temperatures occur in summer between October and March, when average temperatures range between 20 °C to 35 °C.
The average annual rainfall is approximately 239 mm per year in the Project area. Major ephemeral rivers (dry for most of the year) include the Khan River, located in the southwest of the project area, the Omaruru River, which flows through the town of Omaruru, and the Ugab River in the north. All three of these rivers drain southwest towards the Atlantic coastline.
The Project areas are located in arid to semi-arid shrub-land in the southwest, with a gradational change to mixed woodland and shrub-land in the northeast. Relief is moderate with elevation ranging from approximately 900 m in the southwest to 1900 m in the northeast, with significant hills and mountains generally associated with granitic outcrops above subdued plains.
History
Gold was first discovered in Namibia during the German colonial period (mainly in the 1850’s), however initially the occurrences of gold deposit discovery were negligibly small. More significant gold mineralization was discovered in 1917 in the Ondundu area, and this led to the mining of 614.4 kg gold from mainly alluvial sources. From 1937 to 1943 alluvial sources mined in the Epako-Otjua area, Omaruru District yielded 46.9 kg gold (Burnett, 1992).
The gold bearing district in the region of the Project hosts the Navachab gold mine, as well as the historical Onguati copper-gold and Goldkuppe small scale gold diggings. Much of the area has never been systematically exploraed as it is covered by calcrete and/or wind-blown sand. After the discovery of the Navachab gold deposit in 1984, Anglo American carried out a regional exploration program primarily using stream sampling and targeting similar stratigraphic horizons and basement domes. Known gold occurrences at other regional projects known as Goldkuppe, Albrechtshohe and Dobbelsberg were followed up with soil sampling as well as limited drilling. Further follow up exploration was done at Goldkuppe and Albrechtshohe by Helio Resources Corp in 2013. No further regional work was done (Oliver, 2014).
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In 2014, Osino's wholly owned subsidiary applied to the Ministry of Mines and Ministry of Namibia for its first EPL. In May 2016, Osino acquired its ownership interests in EPL 3738 and EPL 3739 in an arm's length transaction from Helio Resources Corp. through its subsidiary Osino Namibia. In October 2015, Osino Namibia acquired EPL 5649 in an arm's length transaction from Scarab Environmental and Geological Enterprises CC and later acquired its ownership interests in EPL 5117 and EPL 5196 in June 2017 in an arm's length transaction from Riana Getruida Scholtz. In 2018, Osino acquired EPL 5658 through Osino Terrace in an arm's length transaction from a Namibian citizen. Osino acquired EPL 6953 by way of application to the Ministry of Mines and Ministry of Namibia in June 2018. As of January 2019, Osino acquired ownership of EPL 6167 through Osino Exploration and EPL 5880 through Osino Namibia in arm's length transactions from arm's length Namibian citizens.
Geological Setting and Mineralization
The Damara Belt is comprised of a succession of predominantly sedimentary rock types that formed during the Neoproterozoic and early Palaeozoic periods in an intracontinental rift basin that was probably open to the ocean during parts of its early evolution. The initial rifting and spreading were followed by subduction and continental collisions resulting in the complex deformation and metamorphism of the sedimentary sequence. The collision or closure stage of the evolution of this belt is referred to as the Damara Orogen. The entire Damara history spans the period from approximately 900 million years (“Ma”) to 460 Ma ago (Wicker, 2019).
The Damara Orogen is divided into a series of tectonostratigraphic zones, delineated by discrete structures referred to as lineaments that may represent zones of shearing and or thrusting. As indicated above, most of the known gold mineralization occurs within the Northern-Central and the Northern Zones of the Damara Orogen (Steven, 1994).
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Deposit Types
The gold mineralization in the known deposits is contained in secondary veins, hosted by Damara age, metamorphosed, sedimentary rocks and may therefore be classified as orogenic or mesothermal gold mineralization, related to large-scale fault structures. The gold mineralization in Namibia at the Navachab Gold Deposit is associated with alteration often described as skarn minerals. The gold mineralization is therefore also frequently termed as skarn or skarnoid mineralization related to either metamorphic or granite- related hydrothermal fluids (Wicker, 2019).
The emplacement of gold bearing veins is controlled by pre-existing zones of deformation that later became zones of dilation in subsequent deformation stages. In addition to the structural control on the vein emplacement, gold mineralization is further controlled by favourable wall rocks that reacted with the mineralizing hydrothermal fluid and caused the precipitation of gold and sulphide minerals in the veins. Economic gold mineralization therefore formed in areas where the structural and wall rock compositional conditions were favourable and where the heat source and the source of the hydrothermal fluid were proximal (Wicker, 2019).
Exploration
All the licenses which make up the Karibib Gold Project are located in close proximity and in the same tectonic belt, namely the Southern Central Zone of the Damara Orogen. The Project focusses predominantly on the recently discovered Twin Hills Prospects (which include Twin Hills Central, Twin Hills West and Twin Hills East and the related Barking Dog and Clouds targets), the historically identified prospect at Goldkuppe, and the adjacent (newly discovered) mineralization at Oasis and Wedge. While the Karibib Gold Project is made up of nine licenses, this Technical Report discusses the exploration results of the Project as a whole, with only minor reference to the specific EPL on which the various prospects and targets are located. Although the focus is primarily the most recent exploration since the 2018 Technical Report, this Technical Report also summarizes the work carried out on EPL3738 (the Wilhelmstal property) and other Project areas which were previously disclosed in the 2018 Technical Report. In addition, little mention is made of work carried out to date on EPL5880, as this is ongoing and results are largely pending, and therefore not of a material nature at the date of this Technical Report.
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 xi AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019
The main emphasis of this Technical Report is to update activities and results from the Karibib Gold Project which have significantly changed since the previous 2018 Technical Report (SRK, 2018), namely: Extensive surface sampling (calcrete and soil sampling) on EPL3739, EPL5658, EPL6953, EPL6167, EPL5649 and EPL5196 Ground magnetic and airborne magnetic/radiometric surveys on EPL3739, EPL5658, EPL6953, EPL6167, EPL5649 and EPL5196; Extensive shallow percussion drilling (sampling calcrete and bedrock) on EPL5658, EPL6953, EPL6167, EPL5649 and EPL5196; and Initial (diamond and reverse circulation) drilling of new targets identified from the above work (at Twin Hills Central and Twin Hills East) on EPL3739, and EPL6953.
Drilling
This Technical Report summarizes the drilling results for drill programs undertaken by Osino since commencing exploration in Namibia on the Karibib Gold Project in mid-2016. The drilling results for the Project are from the fourth quarter 2017 to the date of this Technical Report, which includes drilling done since the date of the 2018 Technical Report.
In the fourth quarter of 2016, Osino drilled 10 diamond holes and 17 RC holes at Goldkuppe to expand and delineate gold mineralization previously intersected by BAFEX/Helio. In general, core recoveries were excellent, but in a few instances underground karst cavities were intersected.
In December 2017, Osino drilled 32 inclined RC holes (3,309m) at Oasis and Wedge, to the south of Goldkuppe as well as Calidus, Spang and North End to the north of Goldkuppe.
The best hole at Oasis was OJR210 which intersected several high grade quartz- sulphide veins occurring within or adjacent to narrow calc-silicate layers. Assays of 9.45 and 6.95g/t Au over a metre each are contained within a wide low grade halo of 49m at 0.75g/t Au. The gold mineralization at Oasis occurs within a broad unit of banded marble (which has been altered to skarn) interbedded with calc-silicate.
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 xii AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019
At Wedge, four holes were drilled to intercept gold mineralized quartz veins sampled at surface which returned assays of 5.48 and 4.15g/t Au. These veins occur within biotite schist just below the contact with the marble. The best intercept is in hole OJR215 which returned 10m @ 2.00g/t Au within intensive (diopside – garnet) skarn altered schist. Soil sampling and mapping indicates that this mineralization continues to the southwest.
Drilling was also carried out at Calidus, North End and Spang, which are located along strike, approximately 1km northeast of Goldkuppe. Minor mineralization was intersected at Calidus, North End and Spang in boudinaged, massive sulphide (pyrrhotite) zones within dolomitic marble. These sulphide zones generally occur near fold noses and are associated with skarn alteration.
A total of 7 diamond holes were drilled at Oasis during September and October of 2018. These holes were designed to follow up on the promising intercept in RC hole ORJ210 which was drilled in Q4 2017 (49m @ 0.75g/t). This diamond drill program was also aimed at understanding the style and orientation of the mineralization.
Wide zones of gold mineralization were intersected in several holes at Oasis, with best intercepts of 77m @ 0.4g/t (OJD031), 37m @ 0.5g/t (OJD028), and 37m @ 0.4g/t (OJD027). This mineralization is contained within sheeted quartz-pyrite veins associated with faulting and folding in the banded marble host lithology. These sheeted veins, which have a fairly consistent distribution and grade throughout the mineralized package, strike north-south and dip moderately to the east. This style of gold mineralization is typical of the gold deposit at the Navachab Gold Mine 30km to the southwest of the Project.
Initial drilling at Twin Hills East was carried out in April and May of 2018. A total of 19 holes (for 1904m) were drilled in altered and mineralized quartz biotite schist covering a strike extent of 1km. The drill program returned several mineralized intersections appearing to be the distal portion of a larger gold bearing hydrothermal system open in all directions as well as down dip. As a result of the initial program, follow-up drilling was planned for later in 2018.
In the fourth quarter of 2018, two lines of percussion drill holes were completed over the Twin Hills Central gold in calcrete target. The short programme confirmed a coincident bedrock gold anomaly of 400m in strike length, with values up to 2.25g/t Au and open in all directions.
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 xiii AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019
In April and May 2019, approximately 4,660m of shallow percussion drilling was completed over the rest of the Twin Hills cluster of targets as well as at Far West on the south western boundary of EPL 5649 just north of Navachab Mine. Results of this bedrock sampling program, included a maximum gold grade of 2.68g/t on the westernmost line at Twin Hills West. Bedrock mineralization was confirmed at all targets within the Twin Hills cluster including: Twin Hills Central, Twin Hills West, Clouds and Barking Dog.
In July and August of 2019, Osino completed a diamond drill program at Twin Hills Central comprising 7 holes for a total of approximately 1,475m. These holes were laid out on three section lines 400m apart, covering a total strike length of 1,200m. The holes were drilled at a declination of 60 degrees on an azimuth of 160 degrees (SSE) - perpendicular to the regional lithological strike.
Extensive mineralization was intersected in five holes confirming a strike length of more than 800m and widths of up to 200m, open along strike to the east and west and down dip. The mineralization is contained within a package of turbiditic greywackes which have been metamorphosed to biotite schists and quartz biotite schists. Gold is associated with sheeted quartz-arsenopyrite-pyrrhotite veinlets. Best intersections include:
OKD004 16-81m, 65m @ 1.37g/t Au, including 42-73m, 31m @ 2.2g/t Au. OKD007 16-23m, 7m @ 1.10g/t Au 87-90m, 3m @ 2.73g/t Au 116-133m, 17m @ 2.17g/t Au 165-176m, 11m @ 1.76g/t Au
Further details, including the locations, azimuth, dip, depths and relationships between sample length and true thickness of mineralization together with grades are provided below, in Section 10—Drilling.
Sample Preparation, Analyses and Security
Osino has industry standard, standard operating procedures (SOPs) in place for all exploration operations, including sampling, sample preparation, sample security, and analytical quality assurance and quality control (QAQC). These SOPs were verified by author and are described herein and in the 2018 Technical Report.
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The author has reviewed the surveying practice, and that for core and RC chip measurements, geological logging and sampling procedures, as practiced by Osino at their facilities in Omaruru and in the field, and is satisfied that this is in accordance with industry best practice. In addition, the author has reviewed the sample security, and sample preparation and analytical methods employed and found these to be appropriate.
All samples taken to date may be considered to be of an initial exploration nature and were not taken during a Mineral Resource delineation program. The analyses were verified by an independent QAQC procedure and were found to be acceptable for exploration sampling.
Data Verification
All Osino sample assay results have been independently monitored through a quality assurance/quality control ("QA/QC") program including the insertion of blind standards, blanks and duplicate samples. QA/QC samples make up 10% of all samples submitted. Logging and sampling are completed at Osino’s secure facility located in Omaruru near the Twin Hills Project in Namibia. Drill core is sawn in half on site and half drill-core samples are securely transported to the Actlabs sample prep facility in Windhoek, Namibia. The core is dried, crushed to 95% -10mesh, split to 250g and pulverised to 95% -150mesh. Sample pulps are sent to Actlabs in Ontario, Canada for analysis. Gold analysis is by 30g fire assay with AA finish and automatically re-analysed with Gravimetric finish if Au >5 g/t. In addition, pulps undergo 4-Acid digestion and multi- element analysis by ICP-AES or ICP-MS. Bedrock samples are prepared at Actlabs sample prep facility in Windhoek, Namibia. The rock is dried, crushed to 95% -10mesh, split to 250g and pulverised to 95% -150mesh. Sample pulps are sent to Ontario, Canada for analysis. Gold analysis is by 30g fire assay with AA finish and automatically re-analysed with Gravimetric finish if Au >5 g/t.
In the author's opinion, the quality controls and assurances methods and procedures provides a reasonable basis to plan further exploration programs.
Mineral Resources
There are no current mineral resource estimates for the Project that may be disclosed in accordance with NI 43-101.
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 xv AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019
Adjacent Properties
The Navachab Gold Mine in Namibia, was commissioned in 1989, with a resource of 10.4 Mt @ 2.4 g/t Au and a 13 year life of mine (Steven, N., et al., 2008). However, this resource increased substantially during later years following additional exploration, and in 2011 AngloGold Ashanti Limited reported in its "Anglogold Ashanti Namibia Fact Sheet 2011" an inclusive Mineral Resource of 4.95 M oz gold (Mineral Reserve 2.05 M oz gold) at its wholly owned Navachab mining operation in Namibia, after mining for 22 years (Anglogold Ashanti Limited, 2011).
The Navachab Gold Mine and Deposit is located within 10km of parts of the Osino, Karibib Gold Project licenses. The Navachab Mine is about 30km SW of the Twin Hills Central Prospect.
The Otjikoto Gold Mine in Namibia is owned by B2Gold Corp. and started production in 2014. This deposit has a published Indicated Mineral Resource of 38.4 Mt at a grade of 1.24 g/t gold (Garagan et al., 2018). These discoveries highlighted the Northern-Central (Swakop Zone) and the Northern Zone (Outjo Zone) of the Damara Orogen, sometimes referred to as the Gold Belt, and the region presents prime targets for further discovery. The Otjikoto Gold Mine is approximately 250km to the north east of the Karibib Gold Project. (Figure 2-1).
The author and qualified person for this Technical Report has been unable to verify the information above concerning the nearby mineral properties and the information is not necessarily indicative of mineralization on the Karibib Gold Project that is the subject of this Technical Report.
Qualified Person Comment
The technical information in this Technical Report has been compiled, reviewed and approved by David Underwood, a Chartered Professional Geologist (SACNASP), and Qualified Person for the purposes of NI 43-101. Mr Underwood is Vice President Exploration of Osino and is therefore not considered to be independent pursuant to NI 43-101.
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Interpretation and Conclusions
Since the compilation of the 2018 Technical Report, Osino has acquired additional licenses to secure the majority of the strike extent of the Karibib Fault Zone, as well as undertaking extensive exploration programs on the Karibib Gold Project.
Results obtained in September 2019 for drilling undertaken at the Twin Hills Central Prospect indicated a potentially significant new discovery of gold mineralization. As a result, Osino aims to modify the previously planned work programs for the Karibib Project by implementing additional drilling in the Twin Hills cluster of prospects and targets.
As the Project is an early stage exploration project with no estimated mineral resource, there is no certainty as to the mineralization or economic viability of the Project and more exploration is necessary to better ascertain any mineralization, mineral resource or economic viability. The reader is cautioned accordingly.
Recommendations
Osino budgeted C$4.3 million for exploration in Namibia during 2019. Of this, approximately C$3 million was for work on the Karibib Gold Project. The work programs implemented on the Karibib Gold Project followed those planned until September 2019 and included the following: Surface calcrete and soil sampling; Shallow percussion drilling to sample bedrock and top of calcrete (beneath surficial sand); and Target drilling on anomalies / targets identified from the above work.
Additional drilling at Twin Hills Central commenced in late-September 2019, and this program will be expanded to test new targets at Twin Hills West, Barking Dog and Clouds. Total expected drilling until the end of 2019 is anticipated to be 10,000m (in a combination of RC and DD). This drilling will replace tentatively planned drilling in the fourth quarter of 2019 at Goldkuppe-Oasis-Wedge, and also extend the planned metres that were planned initially. An additional C$1million is budgeted to complete the 2019 fourth quarter drill program and associated work.
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2. Introduction
The Karibib Gold Project is an early stage gold exploration project. It comprises a group exploration targets located on nine contiguous or closely spaced EPLs in central Namibia near the regional towns of Usakos, Karibib and Omaruru, between 100km to 175km northwest of the country’s capital, Windhoek. (Figure 2-1).
This Technical Report was prepared following the guidelines of NI 43-101 and Form 43- 101F1 pursuant thereto, for the Karibib Gold Project by Mr. David Underwood, Vice President Exploration of Osino Resources Corp. (“Osino” or the “Company”) as a qualified person pursuant to NI 43-101. Mr Underwood is Vice President Exploration of Osino and is therefore not considered to be independent pursuant to NI 43-101.
Figure 2-1: Location of all Osino’s EPLs in Namibia, note the location of those EPLs that make up the Karibib Gold Project Area.
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Osino currently owns or has agreements in place to explore twenty-two Exclusive Prospecting Licenses (“EPLs”) in Namibia (covering approximately 650,000ha). Of these twenty-two EPLs, the Karibib Gold Project is made up of nine mostly contiguous EPLs, and it is these EPLs and the Karibib Gold Project which this Technical Report covers. Osino is the majority owner, through its subsidiaries, of the nine EPLs; namely EPL3738, 3739, 5117, 5196, 5649, 5658, 5880, 6167, and 6953, covering a total surface area of 118,965ha. These EPLs are registered pursuant to the Prospecting and Mining Act 33 of 1992 of the Republic of Namibia.
This Technical Report is written to update the previous 2018 Technical Report compiled by SRK Consulting (South Africa) (Pty) Ltd., dated 17 May 2018. The 2018 Technical Report was compiled as an independent technical report for Romulus Resources Ltd. ("Romulus"), which became Osino on June 26, 2018 under a reverse takeover of Romulus. Accordingly, this Technical Report refers to and incorporates much disclosure previously provided in the 2018 Technical Report. In particular, this Technical Report documents the significant progress made on the Karibib Gold Project since the 2018 Technical Report was issued in May 2018.
2.1. Scope of Work
The scope of work, in so far as it is relevant to this Technical Report, was to provide an updated technical report on Osino’s Karibib Gold Project, inclusive of significant or material exploration since the previous 2018 Technical Report was published in May 2018. All such material exploration has been previously documented and disclosed in the Company’s news releases, but are herein explained in greater detail.
2.2. Basis of Technical Report
This report is based on information collected by Osino in the course of its ongoing exploration programs. This Technical Report is based on the exploration data previously described in the 2018 Technical Report as well as the data generated by Osino since then in the period from May 2018 to the effective date of this Technical Report. Material results have been previously reported by the Company in its continuous disclosure, including its news releases and its Management's Discussion and Analysis which can be found on SEDAR (www.sedar.com).
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2.3. Qualified Person
This Technical Report has been complied, prepared and approved by David Underwood, a Chartered Professional Geologist (SACNASP) and Qualified Person pursuant to NI 43- 101. By virtue of his education, membership of a recognized professional association and relevant work experience, Mr. Underwood is a "Qualified Person" as this term is defined by NI 43-101. However, as Mr. Underwood is Vice President Exploration of Osino he is not independent for the purposes of NI 43-101.
2.4. Site Visit Mr. Underwood regularly visits and conducts exploration at the Project for the Company in his role as Vice President Exploration of Osino, and personally visited the Project most recently from September 12 to 20, 2019. Mr. Underwood visits the Project for approximately one week every month.
3. Reliance on Other Experts
To verify title and ownership of the Project, the author has relied on the information provided by the Company and the original licenses held at Osino’s offices in Windhoek, Namibia. Accordingly, the author has not relied upon any other experts in respect of this Technical Report. The author is not aware of any litigation potentially affecting the Karibib Gold Project.
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4. Property Description and Location
Osino, through various locally held and majority owned subsidiaries is the rightful owner of nine EPLs in central Namibia covering a surface area of 118,965 Ha, which make up the Karibib Gold Project (Table 4-1). The EPLs are spread over an area in and around the regional towns and settlements of Usakos, Karibib, Omaruru and Wilhelmstal in the Erongo Region of Namibia (Figure 4-1).
Figure 4-1: Location of the EPLs which make up the Karibib Gold Project Area.
4.1. Mineral Tenure
Mineral rights in Namibia are currently administered in terms of the Minerals Act of 1992 (Namibia). This Act stipulates that the rights in relation to the reconnaissance or prospecting for, and the mining and sale or disposal of, and the exercise of control over, any mineral or group of minerals vests, notwithstanding any right of ownership of any person in relation to any land in, on or under which any such mineral or group of minerals is found, in the State. The following types of licenses are granted by the State: Non-exclusive Prospecting Licenses;
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Mining Claims; Reconnaissance License; Exclusive Prospecting License ("EPL" as defined before); Mineral deposit retention licenses; and Mining License.
Table 4-1: Details of the nine EPLs making up the Karibib Gold Project.
Osino subsidiary Date (from) Date (to) Area EPL No (% owned) Status [DY-MO-YR] [DY-MO-YR] (km2) Area (Ha)
EPL 3738 Osino Exploration Active 11-09-2007 12-05-2021 175.21 17,521 (95%)
EPL 3739 Osino Exploration Active 11-09-2007 15-05-2021 271.01 27,101 (95%)
EPL 5117 Osino Namibia Active 09-04-2014 08-04-2021 14.18 1,418 (90%)
EPL 5196 Osino Namibia Active 09-04-2014 08-04-2021 19.98 1,998 (90%)
EPL 5649 Osino Namibia Active 30-09-2014 15-05-2021 15.96 1,596 (90%)
EPL 5658 Osino Terrace Active 23-09-2014 22-05-2020 199.05 19,905 (80%)
EPL 5880 Osino Namibia Pending 4-10-2016 03-10-2019 473.29 47,329 (90%) Renewal
EPL 6167 Osino Exploration Active 23-02-2017 22-02-2020 15.83 1,583 (95%)
EPL 6953 Osino Exploration Active 13-06-2018 12-06-2021 5.14 514 (95%)
4.2. Underlying Agreements, Permits and Authorizations
The right to the EPL is administered by the state of Namibia in terms of the approved Exploration Plan provided on the application for the original EPL or the most recent renewal application of the EPL, and the EPL expires on the date as stated in Table 4-1 unless an application has been lodged for a renewal or mining license (as is the case for EPL5880).
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Surface rights, legal access
Surface rights in the Project area all belong to either private freehold farm owners or the government of Namibia. Osino does not own or hold any title to the surface rights of any land in the area.
In order to gain access to all farmland within the Project area, Osino is required to enter into written land access agreements with each individual farm owner. In general, a compensation fee is paid to the landowner as compensation for exploration activities on the specific farm. Compensation generally ranges between N$1,000 to N$10,000 (CAN$100 to CAN$1,000) per month for the farm access agreements currently in place.
Table 4-2 shows a summary of the land access agreements currently in place, which provide access to the relevant farms listed, and where they are relative to specific target areas or areas of interest within the Project Area. The farms to which Osino has signed access agreements represent approximately 80% of the main areas of interest within the Project at the time of this report.
Table 4-2: Summary of farm access agreements for the Karibib Gold Project.
General Terms Targets / Areas of Farm Name EPL (see notes below) Interest
Dobbelsberg Access granted (1) 3739, 5658 Twin Hills East (Courser) / Twinhill Access granted (1) 3739 Karibib Fault Twin Hills (Courser) / Okawayo Access granted (1) 3739, 5658 Karibib Fault Otjimbojo West Access granted (1) 3739 OJW / Karibib Fault
Goldkuppe, Calidus, Otjimbojo Ost Access granted (1) 3739 Oasis, Wedge, Dropstone, Palace, Spang 3739, 5117, Klein Okawayo Access granted (1) 5196 Rheinsheim Access granted (1) 3739 Okapawe / Karibib Fault Access negotiations Ovikenga 3739 underway (3) Omapyu Sud I Access granted (2) 3739 North End, Bulls Eye
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General Terms Targets / Areas of Farm Name EPL (see notes below) Interest
Omapyu Sud II Access granted (1) 3739 Goldkuppe, Dead Oryx, Otjakatjongo Access granted (1) 3739 Spang Wag ‘n Bietjie Access granted (1) 3739 Noitgedag Access granted (1) 3739 Neubrunn Access granted (1) 3739, 3738 Karibib Fault Cheshire Cat, B1, Albrechtshöhe Access granted (1) 3738 Leatherman Okakoara Access granted (1) 3738 Karlsbrunn Access granted (1) 3738 Geisterberg Access granted (2) 3738 Access negotiations yet to Kaliombo 3738 be started (4) Karibib Access granted (1) 5658, 5649 Beenbreek, 5658, 5117, Daheim, Spes Access granted (1) 5196 Bona Kranzberg South and Access granted (1) 5880 North Goabeb Access granted (1) 5880
(1) Access agreements in place, monthly compensation paid only when active on the farm. (2) Access agreements in place, monthly compensation paid monthly while relevant EPL/s General Terms are valid. and Notes: (3) Access agreements being negotiated; permission to work is likely in following 3 months. (none fit this description at present) (4) Access agreement negotiations yet to begin or unlikely to be needed. There are no other significant royalties, payments or agreements or risks that may affect access, title, or the right or ability to perform work exploration on the Project.
4.3. Environmental Considerations
Permits are in place to carry out exploration on all the EPLs that make up the Karibib Gold Project. In addition to the EPL documentation and related permits, which grant the right to explore for the relevant commodity groups, Osino is also required to enter into Environmental Contracts for each EPL with the Ministry of Environment and Tourism ("MET"). This contract is concluded when the MET issues an Environmental Clearance
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Certificate for each EPL granted to Osino. In order for drilling to take place, a “Notice of Intention to Drill” is submitted to the Ministry of Mines and Energy in advance of drilling.
Environmental Clearance Certificates ("ECC") have been granted for all nine EPLs which make up the Karibib Gold Project. The ECC is granted after submission to the MET of a scoping study and environmental impact assessment for the planned exploration activities on the relevant EPLs. The Project and its constituent nine EPLs have no recognized environmental liabilities, and in order to maintain good standing the company must submit environmental progress reports every six months documenting work carried out, any environmental impact and remedial actions and rehabilitation carried out.
Osino has standard operating procedures which adhere to environmental rehabilitation related to exploration programs including rehabilitation of drill sites, pits and trenches.
4.4. Mining Rights in Namibia No mining rights have been applied for to date. The Karibib Gold Project area is made up of EPL licenses which are convertible to Mining Licenses if the requirements of the licencing authorities are met. The availability of power for potential mining operations is discussed in section 5.3. It is expected that water for a potential mining operation will be sourced from the karstic marble and dolomitic marble ground water resource in the region and from the riverbed sediments of the ephemeral rivers in the area and discussed in section 5.2. This would have to be investigated once a Mineral Resource have been reported and there is a better understanding of the scale of the potential mining project. Namibia is a country with very limited water resources and the water supply of any mining project should be regarded as a serious risk that needs to be investigated once a Mineral Resource has been estimated. Waste disposal areas, the location of heap leach pads and potential possessing plant site should be studied and considered following the reporting of a Mineral Resource, but this is not regarded as a risk at this stage, preventing the commissioning or viability of a possible mining operation. Namibia is a country with a long history of diversified mining, and the sourcing of qualified mining personnel is not expected to be difficult, especially given the fact that some of the older mines are currently nearing the end of the life of mine or have already been closed.
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5. Accessibility, Climate, Local Resources, Infrastructure and Physiography
5.1. Accessibility
The Project is located in central Namibia in the area known as the Central Plateau approximately 150km northwest of the capital city of Namibia, Windhoek (Figure 2-1). Windhoek has a population of 322,500 based on a 2011 census and was expected to grow to beyond 400,000 by 2017.
The Project areas are road accessible via Namibia’s extensive sealed and well- maintained secondary gravel road networks (Figure 4-1). Generally, travel time from Windhoek is between 3 to 5 hours by road to the Project area. Within the Project area, access is provided on a series of non-maintained roads and cross-country 4-wheel drive tracks.
Table 4-2 shows a summary of the land access agreements currently in place, which provide access to the relevant farms listed, and where they are relative to specific target areas or areas of interest within the Project Area. The farms to which Osino has signed access agreements represent approximately 80% of the main areas of interest within the Project at the time of this report.
5.2. Climate Coldest temperatures typically occur in the winter months between the beginning of June and end August. Minimum temperatures are commonly below 0°C, but generally in the range between 5 °C to 25 °C in winter. Highest temperatures occur in summer between late October and end March, when average temperatures range between 20 °C to 35 °C. Rainfall varies from southwest to northeast, with average annual rainfall approximately 239 mm per year in the Karibib area (www.en.climate-data.org). Most rainfall is associated with short, but intense thunderstorms. During the rainy season from November to March, many of the ephemeral rivers flow for short periods (hours) or even months. Major rivers within the Project area include the Khan River, located in the southwest of the Project area, the Omaruru River which flows through the town of Omaruru, and the Ugab River in the north. All three of these rivers drain southwest towards the Atlantic coastline.
The climate offers no impediment to exploration in the Project area, except for difficult road access conditions during the peak rainfall periods in certain areas. Mineral
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 9 AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019 exploration activities are possible year round. Namibia is a country with a long and successful mining, exploration and development history, skilled workers may be contracted out from smaller regional centres, e.g. Karibib or the capital city Windhoek, located generally less than a 4-hour drive from all parts of the Project area
5.3. Local Resources and Infrastructure
A number of regional towns and settlements are located within the general Project area, including Karibib in the southwest, and in a north-easterly direction, Omaruru. The populations of these towns were as follows in 2011 (the last published census), Karibib 5 132, Omaruru 6 300. Electrical power is readily available in most parts of the area, with 330 kV power lines within approximately 35 km of all parts of the Project area.
5.4. Physiography
The Project areas are located in arid to semi-arid shrub-land in the southwest, with a gradational change to mixed woodland and shrub-land in the northeast. Relief is moderate with elevation ranging from approximately 900 m in the southwest to 1900 m in the northeast, with significant hills and mountains generally associated with granitic outcrops above subdued plains. The area in general supports dry land cattle ranching and game-farming as the principle agricultural activities.
6. History
Gold was first discovered in Namibia during the German colonial period (mainly in the 1850’s), however initially the occurrences of gold deposit discovery were negligibly small. More significant gold mineralization was discovered in 1917 in the Ondundu area, and this led to the mining of 614.4 kg gold from mainly alluvial sources. From 1937 to 1943 alluvial sources mined in the Epako-Otjua area, Omaruru District yielded 46.9 kg gold. (Burnett, 1992)
The gold bearing district in the region of the Project hosts the Navachab gold mine, as well as the historical Onguati copper-gold and Goldkuppe small scale gold diggings. Much of the area has never been systematically explored as it is covered by calcrete and/or wind-blown sand. After the discovery of the Navachab gold deposit in 1984, Anglo American carried out a regional exploration program primarily using stream sampling and targeting similar stratigraphic horizons and basement domes. Known gold occurrences at other regional projects known as Goldkuppe, Albrechtshohe and Dobbelsberg were
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 10 AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019 followed up with soil sampling as well as limited drilling. Further follow up exploration was done at Goldkuppe and Albrechtshohe by Helio Resources Corp in 2013. No further regional work was done. (Oliver, 2014)
In May 2016, Osino acquired its ownership interests in EPL 3738 and EPL 3739 in an arm's length transaction from Helio Resources Corp. through its subsidiary Osino Namibia. In October 2015, Osino Namibia acquired EPL 5649 in an arm's length transaction from Scarab Environmental and Geological Enterprises CC and later acquired its ownership interests in EPL 5117 and EPL 5196 in June 2017 in an arm's length transaction from Riana Getruida Scholtz. In 2018, Osino acquired EPL 5658 through Osino Terrace in an arm's length transaction from a Namibian citizen. Osino Exploration acquired EPL 6953 by way of application to the Ministry of Mines and Ministry of Namibia in June 2018. As of January 2019, Osino acquired ownership of EPL 6167 through Osino Exploration and EPL 5880 through Osino Namibia in arm's length transactions from arm's length Namibian citizens.
The 2018 Technical Report provided a comprehensive summary of the history of two EPLs (EPL3738 and EPL3739) which were, at that time, the primary focus of work by Osino. As noted in the 2018 Technical Report, EPL3739 (Otjimbojo license) is situated approximately 135 km to the northwest of Windhoek and 40 km to the town of Omaruru (Figure 4-1). EPL 5649, EPL 5658, EPL 5117 and EPL 5196 are strategically situated immediately to the west of EPL 3739, between the latter and the Navachab Mine. The Wilhelmstal area of the Project, falling within EPL 3738 is located 130 km northwest of Windhoek and to the south of EPL 3739 and 48 km east of the Navachab Gold Mine.
Anglo American Prospecting Services Namibia ("AAPS") discovered the Navachab gold deposit, and this was followed by a program of gold exploration throughout the Central Zone of the Damara Orogen. AAPS located a large Au-Cu-As anomaly at the Goldkuppe target and during 1988 conducted a drill program (percussion followed by diamond) with variable success. Further drilling (reverse circulation "RC") was conducted by AAPS during 2003. In the end, AAPS drilled 21 percussion holes totalling 530 m, 32 RC holes totalling 2,041 m and 21 NQ size diamond drilling ("DD") holes totalling 1,696 m. Au and Ag were assayed in the samples for the DD holes, the other holes only for Au. The DD cores of these holes are stored at the Geological Survey facilities in Windhoek, and the RC drill chips are not available.
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Desert Minerals Exploration (Pty) Ltd. (“Desert”) drilled 18 RC holes (OTRC 33 – 50) and three BQ-sized DD holes (OTD 22-24 for 530 m). All samples were analysed for Au. Osino has possession of the chip trays and drill core from some of the Desert drilling. Desert originally planned more extensive drilling, but this did not happen due to the financial crisis of 2008. According to Mackenzie (2015: Internal report on the resampling of the old DD holes, Goldkuppe Prospect, EPL3739, Damara Gold Project, Namibia), the remaining half of Desert’s BQ sized diamond drilling core were relocated. The historic Desert results were known to be unreliable from the previous re-assaying of their RC material (assays were undertaken without adequate quality assurance and quality control (“QAQC”) procedures, and were submitted to a non-arms-length unaccredited laboratory in Zimbabwe). BAFEX Exploration (Pty) Ltd. (which later became Osino Exploration) ("BAFEX") resampled this at 1 m sample intervals, but for the generally barren white calcareous marble, these were composited over 2 m sample intervals. Following the BAFEX QAQC procedures (inserting standards, blanks and duplicates), 311 samples were submitted to Bureau Veritas Laboratories in Swakopmund, Namibia for sample preparation and representative pulp samples were shipped to Vancouver for analysis. An inductively coupled plasma, optical emission spectroscopy ("ICP-OES") finish after an aqua regia digest of 30 g aliquots was used. These results met the BAFEX, QAQC requirement and were incorporated into their Project Database. Accordingly, the author is of the opinion that these results may not have been very reliable, especially if the certified reference materials (“CRMs”) selected did not contain appreciable amounts of carbonate minerals.
BAFEX resumed activities on the Goldkuppe target by testing the main geochemical anomalies of AAPG using scissored fans of shallow RC drilling. Six fence lines where drilled 200 m apart NS and 50 m deep -50º holes drilled E and or W off 50 m spaced collars. The drilling at Goldkuppe covered a 1.5 km strike of the target brown dolomitic marble horizon.
The three historical operators at the Goldkuppe target, AAPS, Desert, and Helio Resource Corp Inc. (“Helio”), have over the period 1984 to 2013, conducted, geochemical, geophysical, RC and diamond drilling campaigns. The total amount of RC and DD, drilling cumulatively approach 16 000 m. No gold, silver or base metal Mineral Resources have yet been declared for the Goldkuppe target, but a variety of geological, geophysical and geochemical data sets indicate that gold, in significant grades and widths has been encountered. The spatial relationships of some of the higher-grade gold intersections within the Goldkuppe target area as reported by Mackenzie (2013).
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In addition to gold exploration on the Otjimbojo property, small-scale tin mining from both cassiterite bearing alluvial sands and from small declines and open cuts, in bedrock, has been identified approximately 11 km to the southwest of the Goldkuppe hill. Gem quality cassiterite crystals have reportedly been recovered. The declines, extending for a few 10’s of metres, and long open cuts were identified in an area of approximately 1.0 km2. It is estimated that a few thousand tonnes of tin bearing granites and pegmatite were mined. No historical records are available to determine the total historical tin production within this area. A 2012 rock chip sampling programme undertaken by Helio’s personnel from exposures in underground workings indicated that 13 channel samples with an average width of 1.13 m had an average Sn grade of 0.25% Sn (Oliver 2014).
Historical exploration conducted by AAPS of EPL 3738 included a stream sediment geochemical survey, soil and rock chip geological surveys, and percussion drilling summarised in Table 6-1below.
Table 6-1: Summary of Historic Exploration by AAPS on EPL 3738
Drilling No. Holes Total (m) Best Au Percussion 45 1813 5 g/t Sample Type Number Samples Best Au Soil 2141 750 ppb Rock 207 20.7 ppm Stream 875 27 ppb
Osino has subsequently added additional licenses to the Karibib Project (EPL6953, EPL6167 and EPL5880) which further extend the license holding in the area along the prospective Karibib Fault Zone and also to include a prominent dome structure (Kranzberg dome) on EPL5880.
Historically, EPL5880 has seen exploration by numerous companies, and was the location of the first Au-mineralization located by Anglo American in the 1980’s prior to the discovery of the Navachab (gold) anomaly and mineralization. Historical work on EPL5880 is summarised in Table 6-2.
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Table 6-2: Historical exploration carried out in the area now covered by EPL5880.
Year EPL Company Mineral Exploration N/A 315 Various Bulldozing and prospecting for industrial minerals or dimension stones N/A 343 Rio Tinto Sn 1974 429 NU Exploration Pb-Zn 1985-1987 1541 Anglo American Gold, base metals Prospecting Services Namibia 1987-1989 1556 Canbra Holdings JV Gold, base metals
1986-1988 1597 Namex Gold 1992 1830 Genmin Resources Gold 2000-2009 2807 Black Range Mining Gold 2002-2006 2823 AngloGold Ashanti Gold Namibia 2010-2015 4299 Southern Cross Base and rare Rural Development metals, dimension Corp (Pty) Ltd stones, industrial minerals, nuclear fuel minerals and precious metals 2016-2019 5880 Primary Resources Base and rare Namibia metals, dimension stones, industrial minerals, nuclear fuel minerals and precious metals
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7. Geological Setting and Mineralization
7.1. Regional Geology The Karibib Gold Project is located in west-central Namibia in an area of known gold deposits hosted within the inland arm of the Pan African Neoproterozoic Damara Belt (Miller, 2008). The Damara Belt (Figure 7-1) is defined by a northeast striking Neoproterozoic fold, thrust and metamorphic belt. It reflects a Neoproterozoic rifting - accretionary event between the Congo Craton to the north and the Kalahari Craton to the south. Related orogenic belts occur along the coast of Namibia and are represented by the north trending Kaoko Belt, and the Gariep belt to the south. These rifting-accretionary cycles begin at 800 Ma to 750 Ma and are largely concluded by 600 Ma (Hoffman, et al., 1996 and De Kock et al., 2000). Peak deformation differs within the three belts with peak deformation in the Kaoko belt at 550 Ma to 580 Ma, in the Gariep Belt deformation culminated at 530 Ma to 545 Ma and in the Damara belt, deformation peaked between 500 Ma to 530 Ma.
As in many younger cordilleran environments, the Neoproterozoic collisional environments of the Damara Orogen have been divided into three major belts: The North Zone comprising an openly folded foreland basin of low metamorphic grade; Calcareous and pelitic meta-sediments, and minor volcanic rocks, of the Central Zone which were initially deposited in a back arc, passive continental margin resting on pre-Damaran basement rocks; and The Southern Zone defines the suture of zone of the Damaran Orogen that is defined by a series of southeast verging thrust belts cutting pelitic sediments, and which have been deformed under high P/low T metamorphic conditions, (Miller, 1983 and 2008).
The Damara Belt has been intruded by a suite of plutonic rocks during and after the Damara orogenic cycle. The intrusive rocks range from gabbro to diorite and various types of granite. Of these the early syn-tectonic to late tectonic I-type Salem granites are by far the most abundant. These were followed by post-tectonic I-type granites. A much later Jurassic to Cretaceous event led to the intrusion various alkaline ring complexes and granitic batholiths, as well as flood basalt provinces.
Burnett (1992) summarises the various known gold occurrences known at that time in Namibia. Gold was discovered in Namibia during the German colonial period (1850’s) in
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 15 AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019 the Sinclair Formation in the Rehoboth District in southern Namibia. The deposits were small and led to only minor exploitation. The discovery in 1917, of more significant gold mineralization in the Ondundu area, lead to the mining of 614.4kg gold from mainly alluvial sources until closure in 1963 (Burnett, 1992). The Ondundu area is approximately 150km from the Twin Hills and Goldkuppe Prospects of Osino’s Karibib Project, but occur within the same geological and tectonic belt. From 1937 to 1943 alluvial sources mined in the Epako-Otjua area, Omaruru District yielded 46.9kg gold (Oliver, 2014). The Epako area is 65km north of the Twin Hills Prospects (Karibib Project) and is within another of Osino’s EPLs (Figure 7-2).
Figure 7-1: Regional geological setting of the Karibib Gold Project in the Damara Belt.
(Source: Vollgger, et al., 2015)
The Navachab gold deposit, located some 7km away from the nearest boundary of the EPL’s of the Karibib Gold Project, and occurs within the same stratigraphy, structural setting as many of the targets within the Karibib Gold project and are therefore regarded as an adjacent property (the Mining License of the Navachab Gold Mine abuts the boundary of EPL5649 of the Karibib Gold Project). The commissioning of the Navachab Gold Mine, in the Karibib District in 1989, came as result of the more recent exploration
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Figure 7-2: Regional geology of the Karibib Gold Project in the Damara Belt.
(Source of data: Geological Survey of Namibia, 1:1.,000,000 scale vector geology map of Namibia.)
The latest mine to come into production is the Otjikoto Gold Mine that produced its first gold in 2014 (Figure 7-2). This mine is approximately 220km northeast of the Karibib Gold Project and is therefore also regarded as a distal deposit. See Section 15— Adjacent Properties for additional information about the Otjikoto Gold Mine.
The gold mineralization in the Damara Belt in general, including Otjikoto, Navachab, Ondundu and Osino’s Twin Hills Prospects (Karibib Gold Project) show various similarities including the relationship to quartz - sulphide veins hosted dominantly in schists and calc-silicate rocks. To a lesser extent gold is found within marbles and
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These discoveries and the historical gold deposits and occurrences have highlighted the Central (Swakop Zone) and Northern Zones (Outjo Zone) of the Damara Orogen, as a prime target for further discovery.
The general geology of the Damara Orogen in the vicinity of Osino’s licenses in Namibia is shown in Figure 7-2 and the generalized stratigraphy is provided in Table 7-1. This table also indicate those stratigraphic units that host gold mineralization. The more detailed lithostratigraphy of the Damara sediments that acts as hosts to the gold mineralization in this region is provided in Figure 7-3.
7.2. Property Geology
The Karibib Gold Project is located in the Southern Central Zone of the Damara Orogen in Namibia. The Project’s principle assets are the newly discovered Twin Hills Cluster of prospects and the Goldkuppe-Oasis-Wedge Cluster of prospects which are about 60km south of the Omaruru Lineament and between 30 to 55km east-northeast of the Navachab Gold Mine (Figure 7-3). The northeastern part of the Project area is largely underlain by undifferentiated syn-tectonic Salem-type granite. The bulk of the Project area is underlain by meta-sedimentary rocks of the Swakop Group, comprising the Arandis Formation (biotite schist, minor quartz schist calc-silicate rock and amphibolite), the Karibib Formation (dominantly dolomitic and calcitic marbles), and the overlying Kuiseb Formation (schistose quartz feldspar mica meta-greywacke and meta-pelite).
The sediments were deformed during poly-phase deformation and metamorphosed. In this area, the larger earlier folds have fold axes with a north-east, south-west direction, parallel to the Omaruru lineament, and these were subsequently deformed into open basin and dome structures with fold axes with a north-west, south east orientation. Later cross cutting lineaments parallel to the Welwitschia lineament are also evident in the area.
The Swakop Group sediments were intruded by a series of syn-, late-syn- and post- tectonic granite and pegmatite bodies. The pegmatite bodies host both black and
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coloured varieties of tourmaline, some of which are gem quality and are mined by small- scale miners in the area.
Table 7-1: General stratigraphy of the Damara Supergroup in the Central Zone of the Damara Belt with selected significant gold occurrences highlighted. Group Formation Member Lithologies Au Occurrences Metaturbidites and biotite Okawayo 146, Ondundo, Kuiseb schists, minor calc-silicate rocks Sandamap Noord 115, and marble Twin Hills Prospects Quartzite, schist, calc-silicate Onguati rock, marble Calcitic and dolomitic marble, Navachab 58 (Grid A), minor calc-silicate rocks and Goldkuppe, Onguati, Karibib schist Albrechtshöhe 44 dolomitic calcite marble, calcitic Otjongeama marble and dolomite, calc silicate rocks, biotite schists Omusema amphibolites (only in SCZ)
continental mafic volcanic rocks Daheim 106 Daheim Ghaub (only present in SCZ)
Swakop phyllitic schist / dropstone Kachab bearing siliciclastic rocks Biotite schist, calc-silicate rocks, Navachab Mine, Epako Oberwasser very minor felsic volcanic rocks 38 Calcitic marble Navachab Mine, Okawayo Arandis Kranzberg South 113 Biotite schist, calc-silicate rocks Navachab 58 (Eastern Spes Bona and very minor felsic volcanic Zones) rocks Glaciogenic mixtite, Banded Iron Chuos Formation Dolomitic marble, minor calc- Rössing silicate rocks and calcitic marble Pyribole calc-silicate rocks, Khan minor biotite schist, graphite
schist and marble
Feldspathic quartzite, grit and Nordenburg 76 Nosib Etusis minor calc-silicate rocks and schist
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(Source of information: compiled from Steven et al., 1994, Steven et al., 2008, Miller, 2008 and published Geological Survey of Namibia, 1:250,000 geological maps for Sheets 2114 and 2214.)
Table 7-2: The lithostratigraphy of the Damara Supergroup. The Karibib Gold Project is within the ‘Swakop Zone’ or Central Zone (of the Damara Orogen).
(Source: Hoffmann et al., 2004.)
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Significant, previously unknown or recorded gold mineralization has been discovered by Osino along the Karibib Fault Zone (KFZ) (Figure 7-4). The KFZ was originally interpreted from regional magnetic data with a length of over 100km. Osino’s Karibib Project licenses cover more than 70km of this strike extent. The KFZ has been mapped in the field by Osino geologists in the eastern and western parts of the Project area. It is the covered central portion of the KFZ where Osino has discovered the most significant new gold mineralization to date, at the Twin Hills Prospects. The Twin Hills Prospects are a cluster of gold mineralized zones associated with schists of the Kuiseb Formation. These schists are variably magnetic (due to pyrrhotite) and gold mineralization is intimately associated with the pyrrhotite and other sulphides.
The gold mineralization in the Goldkuppe area is mainly hosted in a brown dolomitic marble unit. The brown colour on surface is due to the weathering of widespread oxidised disseminated sulphides, and when fresh the dolomitic marble is a cream-white colour. The sedimentary rocks including this brown dolomitic marble are deformed into a large fold structure mapped out in detail (Figure 7-4) (Kasch, 2017). The dolomitic marble is overlain by grey marble (hanging wall) and underlain by coarse and banded white marble (footwall). These carbonate rocks belong to the Karibib Formation.
Rare outcrops of quartz-rich schist and calc-silicate rock are found in the core of this fold, where the structure is opening towards the southwest. These rocks are believed to belong to the Oberwasser Member of the Arandis Formation.
In the area southwest of the Wedge area, large areas of Kuiseb Formation biotite schists are exposed to the north and south of the Khan River.
The structural geology of the Karibib Project area is dominated by features typical of the Southern Central Zone of the Damara Belt; Basement and/or basal Damara meta- sedimentary rocks in the cores of dome and anticlinal structures and regional synclinal structures with thick packages of Kuiseb Formation schists ‘filling’ these synclines.
At least three phases of folding appear to be present in the Goldkuppe target area. Small, medium and large scale, tight to isoclinal reclined folds and sheath folds, with steep to sub-vertical fold axes and fold axial planes, dominate the structure in the Goldkuppe target area. The fold axial plane of the dominant folds is sub-vertical striking approximately northeast-southwest.
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Similarly, at least three deformation events are observed at Twin Hills East. Several structures are observed in the highly silicified and recrystallized zone associated with the Karibib Fault Zone. The presence of sheath folds associated with a NNW-SSE transport direction as well as calc-silicate “boudins” with a steep to sub vertical stretching lineation are consistent with a high strain shear zone. The sheath folds and boudins belong to the first phase of deformation identified in this area. The F1 sheath folds are affected by a SW-NE S2 cleavage associated with NE plunging F2 folds (Figure 7-5). The two generation of folds can be interpreted as two distinctive deformation periods as the S2 cleavage transects F1 folds. The third event is characterised by a dextral reactivation of the WSW-ENE structure during a WNW-ESE transtensional period (Wicker, 2019).
Figure 7-3: Karibib Gold Project geology with the location of priority prospects at Twin Hills and Goldkuppe-Wedge-Oasis clusters (and other targets identified).
(Source of data: Geological Survey of Namibia, 1:250,000 geological maps for Sheets 2114, 2116, 2214 and 2216).
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Figure 7-4: The Geology of the area around Goldkuppe-Oasis and Wedge.
Figure 7-5: Geology of the Twin Hills East area (Wicker, 2019).
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8. Deposit Types
The gold mineralization styles in the Karibib Gold Project can be broadly categorised into two main types; orogenic gold style mineralization (e.g. Twin Hills Central and East, parts of Goldkuppe and Wedge and Oasis) and metamorphic and/or felsic intrusive-related skarn-related or skarnoid gold mineralization (e.g. Goldkuppe and Goldkuppe Extensions, Albrechtshöhe).
Osino is targeting gold mineralization that fits the broad orogenic gold model. Much of the historical exploration for gold in Namibia has not taken this approach. The key regional features of the orogenic gold model, and how they relate to the Namibian and Damara Orogenic Belt setting, are: Very Large, long-lived fault structures e.g. Omaruru and Okahandja Lineament, Karibib Fault Zone. Large sedimentary (schist) and volcanic basins as a source of fluids. Compressional tectonics, which are required for pumping the fluids out of the basins and through the large structures. Zones of structural complexity and remobilization of older structures. Multiple associated gold occurrences.
All of Osino’s Project Areas, and the licenses within these areas were targeted based on these criteria and lie within areas with these types of structural corridors. The Karibib Fault Zone is regarded as a priority regional, fertile structure in the Karibib Project Area.
The Twin Hills Central and twin Hills East prospects are located along this crustal-scale lineament (Karibib Fault Zone), on the southern margin of a turbidite basin folded into a tight syncline during the Damara Orogen. The mineralization in the Twin Hills cluster of prospects and targets is 11km long, part of more than 25km strike length of anomalous geochemistry along the Karibib Fault and associated with splays and second and third order structures to the south of the Karibib Fault.
The gold mineralization is hosted by quartz biotite schists and is associated with hydrothermal alteration assemblages of quartz - sericite - pyrrhotite – arsenopyrite – pyrite (Figure 8-1).
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Figure 8-1: Mineralization styles in the Twin Hills Central drilling (to date).
The priority portion of the Twin Hills area is a structural jog on the margin of the Dobbelsberg (or northeastern extension of the Karibib) dome. Three magnetic splays, coincident with anomalous gold assays are visible in the jog.
Gold mineralization at Goldkuppe, like at Navachab, has a spatial relationship to the development of high sulphide calc-silicate zones. Disseminated sulphide concentrations, often with strong copper and gold grades, and annealed textures are composed of coarse-grained aggregates of chalcopyrite-pyrrhotite and lesser pyrrhotite. The rocks contain both calc-silicate and other metamorphic minerals including diopside, biotite- phlogopite and tremolite +/- actinolite. Less abundant, reddish-brown garnet is also present. Some of these zones may have a distal weak iron-magnesium carbonate envelope, which is particularly obvious on oxidized slabbed older drill core.
Localized very high-grade breccia zones and lower grade sheeted veinlets and small- scale breccia zones are also identified. These small veins and breccia zones lack a well- defined macroscale alteration envelop. Most of these veins appear to be dominated by quartz and sulphide minerals plus or minus phlogopite, tremolite, diopside and iron- magnesium carbonates.
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As most of the historical RC and DD holes have only been drilled to very short depths (40-50 m’s sub-surface), and it is difficult to establish the true thickness and orientation of the mineralized zones. Gold grades and widths ranging from gram to multi-gram levels have been intersected over one to several metre intervals, suggesting that the Goldkuppe target hosts a significant gold occurrence with, stratigraphic, structural and alteration similarities to the successfully exploited deposits at Navachab.
Numerous very low temperature veins are sometimes identified in field exposures, and in the upper portions of several boreholes. These veins were probably produced during protracted, low temperature, late and post-tectonic processes and are unrelated to the development of the calc-silicate bodies or auriferous vein mineralized zones at Goldkuppe.
In conclusion, it may therefore be stated that gold mineralization at Goldkuppe as at Navachab is related to structurally controlled emplacement of quarts sulphide veins and associated calc-silicate alteration. In the author's opinion, the regional and local association with the syn- to late-tectonic Salem Granite may indicate that this deposit style may be described as gold-bearing distal skarn deposits.
Examples of the mineralized veins are shown in Figure 8 2.
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Figure 8-2: Examples of Goldkuppe Mineralization.
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9. Exploration
The summary of exploration activities and results included in this section include the exploration as described in the 2018 Technical Report for EPL3738 (Wilhelmstal property) as well as the work done since then on the following EPLs; EPL3739, EPL6953, EPL6167, EPL5649, EPL5658, EPL5117 and EPL5196. However, work on EPL 5880 (Kranzberg property) is ongoing and results are largely pending, and is therefore not a material nature at the date of this report.
EPL3739 (Otjimbojo property) was explored to some extent in the past with most of the focus being on the Goldkuppe prospect and the surrounding area. Additional targets were identified on the license at Bulls Eye, Old Tin Mine, Courser (now Twin Hills / East) and Puff Adder (Figure 9 1). The other licenses have very little or no exploration history.
9.1. Geochemistry Osino and the previous license holders BAFEX/Helio carried out a series of sampling programs on EPL3739, which included stream sediment sampling, soil sampling, calcrete sampling and rock chip sampling.
Stream Sediment Surveys
BAFEX conducted two stream sediment sampling programs totalling 414 samples, covering approximately 88 km2.
The initial stream sediment sampling was conducted in the vicinity of the Twin Hills target in the south-eastern part of EPL3739 (Figure 9 1). A total of 90, -212 micron stream sediment samples (50g to 100g), including QAQC samples, were collected. In 2013, a larger-scale stream-sediment-sampling program was conducted over the greater Goldkuppe-Bull’s Eye area. A total of 322 samples (including QAQC samples) were taken. All stream sediment samples were bagged and sealed and then shipped to ACME Analytical Laboratories in Vancouver, Canada. The samples were analysed by aqua regia digestion followed by inductively coupled plasma, mass spectroscopy (“ICP-MS”) analyses, (30g aliquot).
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Soil Sampling Surveys
EPL3739 was covered by a number of large-scale soil sampling programs over various targets defined by geophysical interpretation and analysis of historic work. Most of the initial soil sampling was undertaken by BAFEX/Helio in the Goldkuppe target area and at surrounding targets. In total, 9,173 soil samples were collected (50 g to 100 g), of the - 212 micron size fraction. All soil samples were bagged and sealed. Assaying was conducted by ACME Analytical Laboratories in Vancouver, Canada. The samples were analysed by aqua regia digestion followed by ICP-MS analysis of a 30g aliquot.
An additional 2,117 soil samples, from the Twin Hills and Goldkuppe Extension grids were submitted to the Bureau Veritas Laboratory in Swakopmund using essentially the same sample preparation and analytical methods.
During 2017, Osino carried out extensive regional soil sampling programs covering most of the prospective Damara meta-sedimentary rock units in EPL3739. The sampling was carried out on 400m spaced lines with samples taken along the lines at 50 m intervals. The lines are generally orientated NNW-SSE which is roughly perpendicular to the regional strike of the sedimentary layering in the area.
During 2017 and 2018, Osino collected 18,521 soil samples within EPL3739 (including the follow-up sample grids). The samples were collected by sieving to the -212 micron fraction in the field and bagging up approximately 100g sample weight in a brown paper sample packet. The packets were submitted to the ALS Global sample preparation laboratory in Swakopmund (Namibia) and then the prepared sample shipped to the ALS Global Laboratory in Johannesburg (South Africa) (“ALS Global”). Samples were analysed using the ME-ICP61 method, which analyses for a suite of 33 elements, using a four-acid digest followed by ICP-OES. Gold is analysed by the Au-AA24 method which is a fire assay of 50g with an atomic absorption (“AA”) finish.
The regional soil sampling results identified a number of areas with above background Au (and associated elements, e.g. As, Cu in particular). Follow up soil sampling covering areas with above background Au (and associated elements) values was carried out in a number of areas on 100m or 50m line spacing and 50m or 25m sample spacing along lines. The regional grids, anomalous sample areas and identified target areas are shown in Figure 9 – 1.
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The regional and follow-up soil sampling programs carried out in 2017 confirmed and expanded a number of known geochemical anomalies from previous BAFEX work (e.g. Twin Hills and Dropstone) and identified a number of new soil geochemistry anomalies or targets (e.g. Okapawe and Wedge) (Figure 9–2).
Four new, large-scale gold anomalies were identified (Figure 9 – 2). They are situated along a structure visible in the regional magnetics, which has been named the ‘Karibib Fault’. The most significant of these is called Twin Hills (previously referred to as “Courser”) (Figure 9-2), located mainly to the south of the Karibib Fault, from the western margin of EPL3739 onto EPL’s 5196, 6953, 6167 and 5658. Other anomalous areas associated with the interpreted position of the Karibib Fault were identified at OJW, Okapawe and Dropstone (Figure 9-2).
The 2017 soil sampling program carried out at Twin Hills indicated a strong gold anomaly which disappeared underneath calcrete and sand cover towards the west in EPL’s 5196, 6953, 6167 and 5658. In May 2018, Osino embarked on a calcrete sampling program based on exploration success in Western Australia using similar techniques. After promising orientation studies, the Karibib Fault strike was sampled for 8km to the southwest of Twin Hills on a grid of 400 x 100m (Figure 9-3). The calcrete becomes buried progressively deeper under wind-blown sand to the southwest and pits were excavated to access the calcrete in the sand covered areas.
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Figure 9-1: EPL3739 - Soil Sampling and Anomalies.
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Figure 9-2: EPL3739 – Geochemical Targets Along Karibib Fault.
Figure 9-3: Calcrete Sampling Southwest of Twin Hills.
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The Twin Hills calcrete sampling program resulted in the definition of a well-defined, high tenor gold anomaly, the Twin Hills Central target (“Twin Hills Central”). The gold assays indicated a coherent linear trend following splays to the main Karibib Fault. The results contain twenty-seven assays over 30ppb Au with a peak value of 145ppb.
Twin Hills Central is 3,000m along strike and 300m wide and forms part of the overall 11km Twin Hills gold anomaly. Twin Hills Central also coincides with a magnetic bedrock anomaly due to the presence of pyrrhotite. Similar magnetic anomalies are present along the entire 11km strike length of the Twin Hills calcrete anomaly.
During Q4 2018, Osino sampled the continuation of the Karibib Fault towards the south west. This program made use of a percussion drill rig to sample the top of the calcrete layer to the south west of Twin Hills, where it is covered by wind-blown sand up to 3m in depth. Vertical holes were drilled on fence lines spaced at 800m and 100m hole spacing, see Figure 9-4. Several deeper holes were also drilled to determine the regolith thickness along the Karibib Fault which increases from Twin Hills towards the southwest. A regolith sample was submitted for analysis from each hole drilled. In addition, surface calcrete samples were collected along the contact between schist and marble to the south and south west of Twin Hills. These programs produced four low tenor gold anomalies: Quarry – Gold anomaly in marble over 1,200m in length Main Road – Gold anomaly in marble over 2,000m in length Karibib Jog – Gold anomaly in calcrete over schists, near jog on Karibib Fault West End – Gold anomaly in calcrete over schists, just to north of Navachab mining license
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Figure 9-4: Assays for Top of Calcrete Sampled with Percussion Rig.
Rock Chip Sampling
A total of approximately 618 rock samples have been collected within EPL3739 to date (Figure 9-5). Assay values of greater than 5g/t were obtained from Twin Hills, OJW, Goldkuppe and Wedge. High grade rock chip samples at Twin Hills, Goldkuppe and Wedge were followed up with drill programs. The high grade samples from OJW will be followed up with trench channel sampling in Q4 2019.
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Figure 9-5: Rock Chip Sampling on EPL3739.
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Table 9-1: Summary of Targets from Geochemical and Geophysical Data.
Exploration Rank Target Status Work Program Stage
Significant historical and Review previous work; 1. Twin Hills Central current drilling. Discoveries identify areas for further 2. Goldkuppe Potential targeted drilling economic intersection.
3. Twin Hills West Additional drill targets 4. Barking Dog Drill-tested; have been or are in the 5. Oasis mineralization process of being Prospects 6. Wedge (North and South) confirmed in identified Twin Hills East bedrock further Defined mineralization 7. Albrechts Group work required used as vector to higher 8. grades?
9. Main Road 1 & 2 10. Quarry/Southern Initial drill testing Initial RAB/RC drilling or 11. Karibib Fault Zone required / Follow- further surface sampling Targets 12. West End up required prior or airborne geophysics 13. Puff Adder to drill testing (if to prioritize RC/DD drill 14. Dropstone warranted) targets 15. Okapawe
9.2. Geophysical Surveys
Regional Survey
The Karibib Project area has been covered by a government aeromagnetic survey which (in this area) was done at a line spacing of 200m. The geology draped over the first vertical derivative magnetic image of the EPL3739 area is shown in Figure 9-6.
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Figure 9-6: Regional Magnetics (1VD) Draped onto Geology.
Geophysical Surveys at Goldkuppe (EPL3739)
The original soil grid over Goldkuppe was sampled by 50 m spaced pole-dipole induced polarisation (“PD IP”) and 25 m spaced ground-magnetics. These surveys confirmed the presence of numerous areas with sizeable IP chargeability anomalies, including amongst others the Calidus target to the north Goldkuppe.
A minor fixed loop EM survey was conducted over the massive sulphide target at Goldkuppe, but failed to identify a sizeable anomaly. Down-hole EM and magnetics were also conducted on selected drill holes (limited by the fact that some of the preferred holes had collapsed slightly or were obstructed), and identified anomalies for further testing. Finally, an orientation gravity survey was conducted over the core of the anomaly, centred on the massive sulphide target, and this confirmed that gravity anomalies underlie known gold mineralization. Both geophysical and geochemical targets identified are listed in Table 9-1.
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Geophysical Surveys at Twin Hills (EPL3739, EPL6953, EPL6167, EPL5649, EPL5658, EPL5117 and EPL5196)
The regional geology draped onto the regional first vertical derivative magnetic image, for the general area of EPL5649, EPL5658 EPL5117 and EPL5196, is shown in Figure 9-7. The strong magnetic anomaly on the border between EPL5658 and EPL3739 is related to banded iron formation contained within the Chuos Formation in the core of a regional anticline.
Figure 9-7: Regional Magnetics and Ground Magnetics (brown) draped over Geology for area of EPL5649, EPL5658 EPL5117 and EPL5196.
A detailed ground magnetic survey was carried out over the entire length of the Karibib Trend from Twin Hills East on EPL3739 to the western boundary of EPL5649. The survey was carried out on lines spaced 50m apart and orientated NW - SE. The results of this survey indicate that the gold anomaly at Twin Hills is closely associated with an anomalous magnetic response due to the presence of pyrrhotite.
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In addition, three lines of Induced Polarisation (IP) were surveyed over Twin Hills Central and Twin Hills East as an orientation exercise. The results indicate that the mineralization at Twin Hills is associated with a conductivity anomaly due to the presence of disseminated sulphides. Several structures of potential significance were also identified in the IP sections.
9.3. Exploration in the Project's Wilhelmstal Property (EPL 3738)
Geochemistry
Rock Chip Samples:
A total of 22 rock chip samples were collected by BAFEX on a widely spaced regular grid. The samples were analysed by Bureau Veritas in Swakopmund. The samples returned values of up to 2.4 g/t Au.
Stream Sediment Sampling:
BAFEX conducted a regional stream sediment sampling programme over the southern part of the Project’s Wilhelmstal property (EPL 3738) on the farm Johann Albrechtshöhe, in order to identify anomalous drainages for follow-up soil-sampling work. A total of 404 stream sediment samples were collected. Figure 9-8 shows the position of the samples. Sample size was 50-100 g and the -212 μ size-fraction was used. Samples were bagged and sealed and then shipped to ACME Analytical Laboratories in Vancouver, Canada, where they were analysed by ICP-MS following an aqua regia digestion. (Oliver, 2014).
The stream sediment sample positions and anomalous values are shown in Figure 9-8 with respect to the respective catchment areas.
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Figure 9-8: Assay Values for Stream Sediment Samples Collected by BAFEX
Soil Geochemistry:
A total of 545 soil samples (-500 μ size fraction, including QC samples) were collected on the Leatherman target. Samples were shipped to ACME Analytical Laboratories in Vancouver, Canada, where they were analysed by ICP-MS (aqua regia digestion). The soil samples were collected on a 50 m x 25 m grid covering 1,000 m x 450 m and on a 100 m x 25 m grid covering 700 m x 450 m. The main anomaly has a Au ± As ± Cu ± Fe ± W association. It trends ENE-WSW and is 800 m long and up to 70 m wide, as defined by the 30 ppb Au contour. The anomaly is open to the east along strike. Four samples within the anomaly have values over 500 ppb Au. The anomaly is underlain by sulphidised tremolite-skarn alteration within carbonates. Previous rock sampling by AAPS recorded up to 5 m grading 11.3 g/t Au. Limited rock sampling by BAFEX within this anomaly has also confirmed the presence of bedrock gold mineralisation, with values in grab samples of up to 2.4 g/t Au (Oliver, 2014) (see Figure 9-9).
Using the same methodology samples were collected from the additional grids sampled, and it may be seen that:
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The Cheshire Cat Target is an arcuate target, trending E-W to NNE-SSW. It consists of a 1.5 km long Au ± Cu soil anomaly overlying, a tremolite-altered zone of dolomitic marble with discordant quartz veining and sulphidation. Previous percussion drilling of this target by AAPS in the late 1980s intersected up to 17 m grading 2.8 g/t Au. Rock grab sampling conducted by BAFEX some 300 m SE of where AAPS drilled has recorded grades of up to 6.5 g/t Au and 0.48% Cu; and
The B1 Target is a large (1,500 m x 500 m), disjointed geochemical anomaly developed over a folded sequence of marbles, with local tremolite-sulphide alteration. A number of mineralised occurrences were identified, and rock chip sampling over these has returned results up to 2.4 g/t Au and 11.8% Cu.
Figure 9-9: Soil Samples Collected on EPL3738 by BAFEX.
Between January and June 2018, Osino collected 2,251 soil samples and 404 calcrete samples in geologically prospective areas not previously sampled by BAFEX (Figure 9-10). Three low level, single point gold in calcrete anomalies were returned and no significant soil anomalies. No follow-up work was carried out.
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Figure 9-10: Assays for Calcrete and Soil Samples Collected by Osino (OGE) EPL3738.
Geophysical Exploration
Induced polarisation (IP) surveys at Cheshire Cat confirmed that the mineralised horizon identified in soil and rock sampling is underlain by a coincident chargeability anomaly, indicating the presence of disseminated sulphides. The IP anomaly is 600 m+ long and is open along strike.
IP surveys conducted over the B1 grid resulted in the identification of a chargeability anomaly, with a coincident Au-Cu soil anomaly. The northeast trending anomaly covers approximately 1,000 m x 250 m.
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10. Drilling
Osino (and its predecessor BAFEX) have drilled a total of 73 DD holes (9,239 m), 294 RC holes (21.024 m) and 314 percussion holes (7,152 m) in the Karibib Project area. The location of the drill holes and targets drilled are shown in Figure 10-1. All drilling prior to 2017 was focussed on the Goldkuppe area and is presented in detail in Mackenzie (2016).
Figure 10-1: Collar Positions of all Drill Holes on Karibib Project.
Drilling at Goldkuppe, Oasis and Wedge (EPL 3739)
Goldkuppe is a large (3,000m long) mineralized system with gold occurring in several discontinuous, plunging shoots. The geology of the Goldkuppe Prospect is dominated by a series of interbedded marble and dolomite units belonging to the Karibib Formation. The marbles are folded into an anticline which plunges gently to the northeast with beds dipping to southeast. These marbles are underlain by biotite schists which occur in the anticline approximately 1km towards the southwest in the Oasis and Wedge area and which outcrop further to the southwest at Wedge South.
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In Q4 2016 Osino drilled 10 diamond holes and 17 RC holes at Goldkuppe to expand and delineate gold mineralization previously intersected by BAFEX (Figure 10-2). Standard DD (HQ size) and RC drilling methods were used. In general, core recoveries were excellent, but in a few instances underground karst cavities were intersected. Significant intersections in the Goldkuppe area are listed in Table 10-1.
Figure 10-2: Goldkuppe Target Area Showing the Collar Positions and Traces of 2016 Drill Program.
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Table 10-1: Significant Intercepts from Historical and 2016 Osino Drilling at Goldkuppe.
Hole No From To Width (m) Grade (Au g/t) OJD001 4 15 11 0.84 18 21 3 1.09 51 73 22 3.44 82 90 8 2.84 100 103 3 1.75 144 145 2 0.52 OJD001A 57 69 12 2.26 71 75 4 0.43 OJD001B 6 12 6 1.23 OJD002 54 55 2 2,15 OJD003 41 43 2 1 OJD004 86 88 2 0.64 OJD006 30 32 2 0.57 60 63 3 4.07 OJD007 28 30 2 16.65 86 88 2 1.45 136 142 6 1.69 153 155 2 1.24 OJD008 40 54 14 2.43 incl 1 25.45 OJD009 9 27 18 1.03 OJD010 25 29 4 1.34 OJD012 37 51 14 0.88 55 65 10 3.95 OJD013 46 48 2 1.4 69 77 8 0.86 102 107 5 2.65 OJD016 39 43 4 1.58 46 48 2 6.34 75 78 3 1.06 OJD017 26 28 2 1.64 102 109 7 0.54 OJD018 51 59 8 1.19 91 93 2 0.99 96 98 2 1.14 108 113 5 0.77 OJD019 34 38 4 0.88 89 93 4 0.55 OJD022 70 72 2 3.85 OJR022 26 34 8 1.38 OJR024 10 16 6 6.04 OJR025 42 54 12 1.51
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Hole No From To Width (m) Grade (Au g/t) OJR051 44 60 16 1.78 OJR063 66 78 12 1.87 98 102 4 3.89 OJR064 24 36 12 1.4 OJR065 4 8 4 0.89 OJR066 30 34 4 11.64 OJR072 2 22 20 4.27 incl 2 37.5 OJR073 6 14 8 0.98 OJR076 8 16 8 3.12 OJR084 14 36 22 0.5 OJR085 26 48 22 0.57 OJR086 20 22 2 8.7 OJR122 36 40 4 6.2 152 158 6 1.02 OJR125 10 22 12 0.67 OJR126 56 68 12 1.12 80 86 6 2.9 OJR128 30 40 10 1.8 86 92 6 1.56 OJR136 32 34 2 3.23 40 44 4 1.07 OJR139 46 48 2 1.61 OJR146 10 18 8 0.96 OJR162 34 36 2 1.64 OJR171 28 31 3 0.75 OJR172 8 10 2 1.05 OJR173 37 45 8 1.1 67 76 9 1.99 incl 1 12.7 129 133 4 0.81 162 169 7 1.95 incl 1 9.82 OJR176 35 38 3 2.24 40 44 4 0.98 47 51 4 0.65 OJR181 14 21 7 1.44 OJR181 26 41 15 1.26 OJR187 0 4 4 0.86 OTD022 38 42 4 8.22 100 104 4 0.64 OTD023 63 68 5 0.7 Notes: All reported intercepts are apparent widths. True widths are unknown at this stage. Intercepts are at 0.4g/t cut off, minimum 2m wide and no more that 2m internal dilution.
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In December 2017, Osino drilled 32 inclined RC holes (3,309m) at Oasis and Wedge, to the south of Goldkuppe as well as Calidus, Spang and North End to the north of Goldkuppe. Significant intersections are shown in Table 10-2. Drilling in these areas was aimed at geochemical and structural targets which had not been previously tested. See Figure 10-3.
The best hole at Oasis was OJR210 which intersected several high grade quartz- sulphide veins occurring within or adjacent to narrow calc-silicate layers. Assays of 9.45 and 6.95g/t Au over a metre each are contained within a wide low grade halo of 49m at 0.75g/t Au. The gold mineralization at Oasis occurs within a broad unit of banded marble (which has been altered to skarn) interbedded with calc-silicate.
At Wedge four holes were drilled to intercept gold mineralized quartz veins sampled at surface which returned assays of 5.48 and 4.15g/t Au. These veins occur within biotite schist just below the contact with the marble. The best intercept is in hole OJR215 which returned 10m @ 2.00g/t Au within intensive (diopside – garnet) skarn altered schist. Soil sampling and mapping indicates that this mineralization continues to the southwest (Figure 10-3).
Table 10-2: Significant Intersections for 2017 RC Drilling at Goldkuppe Extensions, Oasis and Wedge.
Hole No From To Width Grade (Au g/t) OJR188 33 36 3 1.52 39 46 7 0.76 OJR189 12 16 4 1.03 OJR201 0 3 3 1.09 9 11 2 2.24 OJR203 38 40 2 1.42 OJR205 82 84 2 0.97 OJR206 11 16 5 1.48 OJR210 82 86 4 1.91 121 124 3 3.59 within low grade halo of 49m @ 0.75g/t OJR211 113 114 4 1.38 OJR212 38 42 4 1.25 53 55 2 0.76 OJR213 18 21 3 0.83 OJR215 11 21 10 2
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Notes: All reported intercepts are apparent widths. True widths are unknown at this stage. Intercepts are at 0.4g/t cut off, minimum 2m wide and no more that 2m internal dilution.
Drilling was also carried out at Calidus, North End and Spang which are located along strike, approximately 1km northeast of Goldkuppe. Minor mineralization was intersected at Calidus, North End and Spang in boudinaged, massive sulphide (pyrrhotite) lenses within dolomitic marble (Figure 10-3). These sulphide zones generally occur near fold noses and are associated with skarn alteration.
A total of 7 diamond holes were drilled at Oasis during September and October of 2018 – significant intercepts contained in Table 10-3. These holes were designed to follow up on the promising intercept in RC hole ORJ210 which was drilled in Q4 2017 (49m @ 0.75g/t). This diamond drill program was also aimed at understanding the style and orientation of the mineralization.
Figure 10-3: RC and Diamond Drilling at Goldkuppe Extensions, Oasis and Wedge.
Wide zones of gold mineralization were intersected in several holes at Oasis, with best intercepts of 77m @ 0.4g/t (OJD031), 37m @ 0.5g/t (OJD028), and 37m @ 0.4g/t (OJD027). This mineralization is contained within sheeted quartz-pyrite veins associated with faulting and folding in the banded marble host lithology. These sheeted veins, which have a fairly consistent distribution and grade throughout the mineralized package, strike
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Table 10-3: Significant Intercepts 2018 Diamond Drilling at Oasis and Wedge.
Hole No From To Width Grade (Au g/t) OJD023 103 105 2 0.97 127 129 2 0.87 OJD026 206 209 3 0.59 OJD027 173 183 10 0.74 OJD028 83 89 6 1.74 106 108 2 1.45 OJD029 112 114 2 2.27 128 132 4 0.49 OJD030 86 91 5 1.12 OJD031 87 94 7 1.55 118 121 3 0.66 155 164 9 0.69 OJD032 31 33 2 1.01 80 83 3 0.63 OJD035 67 71 4 0.62 OJD036 78 89 11 1.31 Notes: All reported intercepts are apparent widths. True widths are unknown at this stage. Intercepts are at 0.4g/t cut off, minimum 2m wide and no more that 2m internal dilution.
Drilling at Twin Hills Project (EPL 3739, 5658, 6953, 6167, 5196, 5649)
Initial drilling at Twin Hills East was carried out in April and May of 2018. A total of 19 holes (for 1,904m) were drilled in altered and mineralized quartz biotite schist covering a strike extent of 1km – See Figure 10-4 and summary of significant intercepts in Table 10-4. The drill program returned several mineralized intersections appearing to be the distal portion of a larger gold bearing hydrothermal system open in all directions as well as down dip. As a result of the initial program, follow-up drilling was planned for later in 2018.
In Q4 2018, two lines of percussion drill holes were completed over the Twin Hills Central gold in calcrete target This drill program was essential to establish the relationship between the surface calcrete anomalies and the bedrock beneath. The short program confirmed a coincident bedrock gold anomaly of 400m in strike length, with values up to 2.25g/t Au and open in all directions.
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Table 10-4: Significant Intercepts in Twin Hills East RC and Diamond Drill Program.
Hole No From To Width Grade (Au g/t) TWD001 13 24 11 0.48 TWD003 9 19 6 0.61 TWD004 83 87 4 1.01 TWR002 14 17 3 0.89 20 21 2 0.85 TWR004 62 69 7 0.4 TWR008 8 12 4 0.48 TWR009 74 79 5 0.77 TWR012 42 44 2 0.52 73 86 13 0.6 TWR016 91 93 2 0.78 TWR017 14 20 6 0.42 TWR018 69 79 10 1.15 Notes: All reported intercepts are apparent widths. True widths are unknown at this stage. Intercepts are at 0.4g/t cut off, minimum 2m wide and no more that 2m internal dilution.
In April/May 2019, approximately 4,660m of shallow percussion drilling was completed over the rest of the Twin Hills cluster of targets as well as at Far West on the south western boundary of EPL 5649 just north of Navachab Mine. The percussion holes were drilled vertically through the calcrete cover (which varies in thickness from 3m in the east to over 50m at Far West) to sample the bedrock beneath. Results of this bedrock sampling program, included a maximum gold grade of 2.68g/t on the westernmost line at Twin Hills West. The Twin Hills West target is open to the west and south. Bedrock mineralization was confirmed at all targets within the Twin Hills cluster including: Twin Hills Central, Twin Hills West, Clouds and Barking Dog (Figure 10-4).
In July/August of 2019, Osino completed a diamond drill program at Twin Hills Central comprising 7 holes for a total of approximately 1,475m. These holes were laid out on three section lines 400m apart, covering a total strike length of 1,200m. The holes were drilled at a declination of 60 degrees on an azimuth of 160 degrees (SSE) - perpendicular to the regional lithological strike.
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Figure 10-4: Twin Hills Cluster - Percussion Drilling for Bedrock Samples.
Extensive mineralization was intersected in five holes confirming a strike length of more than 800m and widths of up to 200m, open along strike to the east and west and down dip. See Table 10-5 and Figure 10-5. The mineralization is contained within a package of turbiditic greywackes which have been metamorphosed to biotite schists and quartz biotite schists. The lithologies have been isoclinally folded with fold axial planes dipping steep towards NNW. Gold is associated with sheeted quartz-arsenopyrite-pyrrhotite veinlets. See sections in Figure 10–6 and Figure 10–7.
Table 10-5: Significant Intersections for Twin Hills Central Diamond Drill Program.
Hole ID From To (m) Width Au (g/t) X UTM 33S Y UTM 33S (m) (m) OKD001 115 219 104 0.70 600243 7584653 incl. 115 125 10 1.27 incl. 199 219 20 1.11 OKD002 21 210 189 0.69 600274 7584554 incl. 106 120 14 1.14 incl. 190 197 7 1.42
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Hole ID From To (m) Width Au (g/t) X UTM 33S Y UTM 33S (m) (m) incl. 205 210 5 1.43 OKD003 91 169 78 0.64 600615 7584795 incl. 93 116 23 1.01 OKD004 16 81 65 1.37 600648 7584703 incl. 42 73 31 2.2 OKD005 178 180 2 2.38 600200 7584746 OKD006 105 106 2 1.53 600992 7584949 160 168 8 0.80 OKD007 16 23 7 1.10 601023 7584860 87 90 3 2.73 116 133 17 2.17 165 176 11 1.76 182 188 6 1.29 Notes: All reported intercepts are apparent widths. True widths are unknown at this stage. Included intercepts are at 0.4g/t cut off, minimum 2m wide and no more that 2m internal dilution. Total intersections are unconstrained.
Figure 10-5: Assay Results for Phase 1 Diamond Drill Program at Twin Hills Central.
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Figure 10-6: Simplified Geological Section through OKD005 – OKD001 – OKD002.
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Figure 10-7: Simplified Geological Section through OKD003 – OKD004.
A second phase of drilling at Twin Hills is starting later in October 2019. The program will include RC and DD drilling for a total of 10,000m with the focus on the following priorities:
• Twin Hills Central: Approximately 5,500m of in-fill and step-out drilling aimed at expanding the mineralized horizon along strike and down dip. This drilling will consist of 23 diamond & RC holes along 7 fence lines spaced 200m apart with 100m borehole spacing. Together with the 7 Phase 1 boreholes this drilling will test a strike length of 2000m at Twin Hills Central (refer to Figure 10-8 below). • Twin Hills West: Approximately 2,000m of first pass diamond & RC drilling of recently defined bedrock gold and arsenic anomalies. This drilling comprises 9 diamond & RC holes along 3 fence lines over 600m of strike length on the coincident gold and arsenic anomaly. Twin Hills West has by far the largest arsenic anomaly in the Twin Hills Cluster and also has the highest bedrock gold value to date of 2.69g/t (refer to Figures 2 below). • Barking Dog and Clouds: Approximately 2,500m of first pass diamond & RC drilling of recently defined bedrock gold and arsenic anomalies. This drilling comprises 13 diamond & RC holes along 4 fence lines, with two lines each for Barking Dog and Clouds respectively.
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All holes are planned to be at least 200m deep and will be drilled top-to-toe at an orientation of 60 degrees towards 160 (SSE) (Figure 10-8).
The objective of the drill program is to further define the Twin Hills Central discovery, to drill test the other newly defined gold prospects and to make additional significant gold discoveries within the Twin Hills Cluster. A follow-up program of in-fill and step-out drilling is contemplated accordingly.
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Figure 10-8: Phase 2 Drill Program at Twin Hills Cluster.
Drilling on the Wilhelmstal Property (EPL 3738)
BAFEX prioritized four target areas for drilling in the southern part of the Project’s Wilhelmstal property (EPL 3738). Eight DD holes (496.4 m) and 12 RC holes (1,386 m) were drilled. The positions of the drill holes in the selected targets are shown in Figure 10-9.
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Figure 10-9: Drill Hole Positions, Southern Part of Wilhelmstal Property.
Eight DD holes were drilled at Birds Nest, Cheshire Cat and B1 to test surface anomalies. Specifications and significant intercepts are contained in Table 10-6 and Table 10-7. Twelve RC holes were drilled (1,386 m) to confirm gold mineralisation at the Leatherman Target. Table 10-8 and Table 10-9 provide the specifications and significant intersections.
Table 10-6: DD Hole Specifications.
Hole ID Easting Northing DIP Azmuth Depth No of Samples WID001 614631 7570975 -50 150 60 66 WID002 614665 7570910 -50 330 75 74 WID003 615223 7570032 -50 95 50.49 28 WID004 614404 75271017 -50 180 59.28 56 WID005 614404 7571017 -50 360 61.64 63 WID006 615293 7570026 -50 275 75 76 WID007 613016 7569835 -50 320 55 56 WID008 612944 7569773 -50 320 60 59
Table 10-7: Significant DD Intersections at B1, Cheshire Cat and Birds Nest Targets.
Hole No From Length AU (ppm) WID001 52 1 0.5 WID006 27 3 1.1 34 1 0.5 41 1 0.5 WID007 22 1 0.6 29 1 0.8 WID008 2 2 0.5 28 1 4
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Table 10-8: RC Hole Specifications.
Hole ID Easting Northing DIP Azmuth Depth No of Samples WIR001 620201 7570057 -50 360 120 68 WIR002 620302 7570082 -50 360 120 68 WIR003 620405 7570122 -50 360 140 78 WIR004 620099 7570077 -50 360 120 68 WIR005 620257 7570235 -50 360 106 58 WIR006 620258 7570235 -50 180 105 58 WIR007 620155 7570237 -50 360 105 58 WIR008 620534 7570255 -50 360 130 73 WIR009 620534 7570255 -50 180 100 55 WIR010 620615 7570165 -50 360 100 55 WIR011 620519 7570153 -50 360 120 68 WIR012 620327 7570244 -50 360 120 68
Table 10-9: Significant Intersections at the Leatherman Target.
Hole No From Length AU (ppm) WIR001 30 2 2.2 WIR002 12 2 0.6 WIR005 34 2 9.4
Drilling Pattern and Density:
The drilling done is of an exploratory nature and the drill pattern was not designed to delineate a Mineral Resource. The drilling density achieved in the different target areas are shown in Figure 10-8.
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11. Sample Preparation, Analyses and Security
The nature of the samples collected as part of the geochemical surveys for the Karibib Gold Project are discussed in Sections 9 and 10.
Core recoveries in all areas have been very good and there is no significant risk of any bias introduced as result of this.
The material intersected comprises sulfidic schists and calc-silicate rocks with quartz- carbonate veins (Twin Hills and Wedge) and dolomitic marble, calcitic marble and calc- silicate rock-types and quartz-carbonate veins (Goldkuppe, Goldkuppe Extensions and Oasis).
The more significant drilling intersections for the drilling undertaken since the data included in the 2018 Technical Report are summarised in Section 10.
During the recent drilling programs on the Karibib Gold Project (late 2017, 2018 and 2019) Osino followed the same procedures as those reviewed by SRK and commented on in the 2018 Technical Report. Osino continues to implement industry standard SOP’s including a program of standards, duplicates and blanks. All samples were under the control of the on-site geologist who supervised the collection, transport and security between the time of sample collection until shipment to the analytical facility.
In addition, pulp and coarse reject duplicates were introduced in May 2018. Pulp and coarse reject duplicate samples were initiated as standard after a review of Osino’s drilling sampling procedures by an independent Consultant Geochemist (Allen, 2018a and b). Figure 11-1 shows a graph of Coarse Reject Duplicate sampling results for 2018 drilling at Twin Hills East , Oasis and Wedge.
Since May 2018, Osino has also implemented different analytical methods for different sample types at different laboratories.
Soil samples are shipped from the field camp and storage facility to ALS Global’s sample preparation facility in Swakopmund (now relocated to Okahandja) in Namibia, prior to the prepared samples being shipped to ALS Global’s Johannesburg (South Africa)
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The sample preparation method was as follows; method code CRU-38 (fine crushing – 85% < 1 mm), SPL-21 (split sample with a riffle splitter), PUL-36 (pulverise 1.5 kg to 85% < 75 μm).
The samples were analysed using the ME-ICP61 method which includes a 33-element suite using ICP-OES after a four acid digest. Gold is analysed by the Au-AA24 method which is a fire assay of a 50g aliquot with an AA finish.
Weighted average intercepts are calculated using a 0.4g/t Au cut-off (unless otherwise stated) and may include some mineralized waste. Any individual assays over 15g/t Au are stated.
Calcrete and termite mound samples are shipped from the field camp and storage facility to Intertek’s sample preparation facility in Johannesburg, prior to the prepared samples being shipped to Intertek’s Perth (Australia) laboratory. This Laboratory is ISO 17025 accredited.
Calcrete and sand (anthill) samples are prepared at Intertek, Johannesburg, South Africa. Samples are dried, crushed to ~10mm and pulverised (300g up to 1.2kg). A split of 120g is shipped to the Intertek Analysis laboratory in Perth, Australia. Samples (10g) are leached in cyanide for 24 hours and analyzed for gold using ICP-MS with an ultra-low detection limit of 0.01ppb. Additional elements analyzed are Ag, Cu and As.
Subsequent to May 2018, all Osino’s rock samples (rock grab and drilling samples) are sent to Actlabs. Rock and RC and Diamond drilling samples are shipped from the field camp and storage facility to Actlab’s sample preparation facility in Windhoek (Namibia), prior to the prepared samples being shipped to Actlab’s Kamloops or Ancaster (Canada) laboratory. This Laboratory is ISO 17025 accredited.
Drill core is sawn in half on site and half drill-core samples are securely transported to the Actlabs sample prep facility in Windhoek, Namibia. The rock samples (RC chips, diamond drill core or rock grab) are dried, crushed to 95% -10mesh, split to 250g and
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Core Drilling Sampling: Intercepts are reported as drilled widths; more drilling is required to determine true width. DD cores are sampled at 1m intervals, continuously in the mineralized units and selectively outside of these.
Reverse Circulation Drilling Sampling: RC chips are sampled using 1m samples.
Quality Assurance and Quality Control Programs: All samples are submitted to the laboratory inclusive of field or independent QAQC check samples comprising standards, blanks and duplicates (average of 1 QAQC sample for every 15 samples). Duplicates are taken as field duplicates (half core and quarter core as a sample duplicate pair), pulp and coarse reject duplicates. Pulp and coarse reject duplicate samples were initiated as standard after a review of Osino’s drilling sampling procedures by an independent Consultant Geochemist (Allen, 2018b). The laboratory also applies their own internal QAQC program, by inserting standards and duplicates and provided the results of this.
Upon receipt of QAQC data it is reviewed and given a Pass/Fail based on qualitative and quantitative criteria. If the QAQC samples indicate a batch has “failed” the lab is instructed to re-assay it (or a part thereof) which may include the addition of more standards. With minor exceptions, most RC and DD drill data has “passed” QAQC requirements. Most standards perform within 3 standard deviations (“SD”) and more often within 2 times SD. Drill core duplicates have a higher variability which is common in gold mineralized systems.
As mentioned above, Allen (2018b) (Independent Consultant Geochemist) re-assessed all Osino’s drill sampling and QAQC procedures, as well as all Osino surface geochemistry procedures, QAQC and data (for EPL3739) (Allen, 2018a).
In the surface sampling and drilling program sampling undertaken in 2017, 2018 and 2019, Osino has carried out comprehensive QAQC checks as outlined above.
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In addition, metallic screen fire assay (SFA) analyses were carried out on selected samples from the Twin Hills East drill program of 2018 (1 x RC and 2 x DD holes). In an attempt to improve the quality of the Au analysis, Osino sent pulps for 3 entire drill holes for both 50g fire assay (FA) and metallic screen fire assay (SFA). The RC hole's Au FA results were completed in the ALS Johannesburg lab while the DDH's FA results and all the SFA results were completed by Actlabs (Ancaster). There were 569 pairs of Au analyses.
The SFA (FA-MeT) was completed on a 500g portion of pulverized sample using 30g fire assay. The sample was sieved to -150 micron. One +150-micron, coarse fraction assay was completed representing the coarse Au while two -150-micron, fine fraction assays were completed.
Allen (2019) assessed and interpreted these SFA results, noting that the SFA method is functioning adequately to concentrate the Au into the coarse fraction. There is not a significant high bias for SFA over traditional FA. The relative difference between SFA and FA is generally symmetrical indicating that that coarse gold has not been systematically lost or not sampled by FA.
The SFA for these particular drillholes therefore did not indicate any significant differences between the original fire assay and the SFA. Osino monitors the need for additional SFA on an ongoing basis (primarily through the assessment of the coarse reject duplicate results). To date no SFA analyses have been carried out on Twin Hills Central drill samples but this will take place in the fourth quarter of 2019.
The analyses of all field CRMs indicate good analytical accuracy and precision and as an example of this the results obtained for G307-3 is shown in Figure 11-2, where it may be seen that most values plot within the two times standard deviation (“SD”) interval. It should however be noted that most of the reported values are lower than the expected value and this may indicate that the results are biased lower than the expected mean. Higher grade CRMs reports satisfactory results.
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Figure 11-1: Example of Coarse Reject Duplicate results for 2018 drilling at Twin Hills East, Wedge and Oasis.
EPL3739 Drill Coarse Reject Duplicates 2
1.8
1.6
1.4
R² = 0.6012 1.2
1
0.8 Au_ppm_Parent 0.6
0.4
0.2
0 0 0.2 0.4 0.6 0.8 1 1.2 1.4 AU_ppm_Duplicate
Figure 11-2: Analytical results of Au in standard (CRM) G307-3 (2017 and 2018 reverse circulation and diamond drilling).
Specific Gravity Data Specific gravity data has not been considered herein as no Mineral Resources have been declared so far.
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 63 AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019
Adequacy Assessment The author has reviewed the surveying practice, and that for core and RC chip measurements, geological logging and sampling procedures, as practiced by Osino at their facilities in Omaruru, Namibia and in the field, and is satisfied that this is in accordance with industry best practice. In addition, the author has reviewed the sample security, and sample preparation and analytical methods employed and found these to be appropriate.
All samples taken to date may be considered to be of an initial exploration nature and were not taken during a Mineral Resource delineation program. The analyses were verified by an independent QAQC procedure and were found to be acceptable for exploration sampling.
12. Data Verification
Osino undertook extensive exercises to verify the historical information for EPL 3739, including, as applicable: verification of drill hole collar positions in the field; re-logging of available drill core; and resampling of drill core and rock chips.
For EPL 3738, much of the work done to date by qualified geologists employed by BAFEX and subsequently Osino has been the verification of historic AAPS exploration. Most of the drill holes drilled in the past were located and verified and the sampling grids could be georeferenced and some of the samples could be reanalysed and the results could be repeated. The credibility of the AAPS data has therefore been verified.
Verifications of Analytical Quality Control Data: Both BAFEX and Osino undertook an independent QAQC sampling programmes on all samples submitted for analyses. This included the submittal of blind blank, duplicate and certified reference materials to the laboratories. This enabled them to identify analytical problems with the Namibian Bureau Veritas laboratory and resulted in the decision to submit subsequent samples to Genalysis-Intertek. No problems have been identified with the latter laboratory.
In the opinion of the author, the data as described in this Technical Report is adequate for the purposes used herein.
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 64 AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019
13. Mineral Processing and Metallurgical Testing
There is no relevant information to report at present, as this is a report on early stage exploration on the Karibib Gold Project. Mineralogical and preliminary metallurgical test work will commence shortly.
14. Mineral Resource Estimates
There is no relevant information to report as to estimated mineral resources at present, as this is a report on early stage exploration on the Karibib Gold Project. Accordingly, no mineral resource estimates have yet been calculated.
15. Adjacent Properties
The Navachab Gold Mine (currently owned and operated by QKR) was commissioned in 1989 (by Anglo American), with a resource of 10.4 Mt @ 2.4 g/t Au and a 13 year life of mine (Steven, N., et al., 2008). However, this resource increased substantially during later years following additional exploration and in 2011 AngloGold Ashanti Limited reported in its "Anglogold Ashanti Namibia Fact Sheet 2011" an inclusive Mineral Resource of 4.95 M oz gold (Mineral Reserve 2.05 M oz gold) at its wholly owned Navachab mining operation in Namibia, after mining for 22 years (Anglogold Ashanti Limited, 2011).
The Navachab Gold Mine and Deposit is located within 10km of parts of the Osino, Karibib Gold Project licenses. The Navachab Mine is about 30km SW of the Twin Hills Central Prospect.
The Otjikoto Gold Mine in Namibia is owned by B2Gold Corp. and started production in 2014. This deposit has a published Indicated Mineral Resource of 38.4 Mt at a grade of 1.24 g/t gold (Garagan et al., 2018). These discoveries highlighted the Northern-Central (Swakop Zone) and the Northern Zone (Outjo Zone) of the Damara Orogen, sometimes referred to as the Gold Belt, and the region presents prime targets for further discovery. The Otjikoto Gold Mine is approximately 250km to the north east of the Karibib Gold Project (Figure 1-1).
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 65 AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019
The author and qualified person for this Technical Report has been unable to verify the information above concerning the nearby mineral properties and the information is not necessarily indicative of mineralization on the Karibib Gold Project that is the subject of this Technical Report.
16. Other Relevant Data and Information
The author does not know of any other data or information relevant to this Technical Report.
17. Interpretation and Conclusions
Since the compilation of the 2018 Technical Report, Osino has acquired additional licenses to secure the majority of the strike extent of the Karibib Fault Zone, as well as undertaking extensive exploration programs on the Karibib Gold Project.
The discovery of wide zone of gold mineralization under cover at Twin Hills Central during 2019 represents the discovery of previously unknown gold mineralization on the Karibib Gold Project. Sediment-hosted, orogenic gold deposits are often characterized by wide, lower grade gold haloes, with higher grade shoots within them. From the limited drilling and assays obtained to date, Twin Hills Central appears to be fitting into this model. The gold mineralisation is associated with sheeted quartz veinlets within a tightly folded greywacke unit. The next phase of drilling will focus on increasing the strike length and following the high grade zones at Twin Hills Central in addition to testing other prospects in the Twin Hills Cluster.
As the Project is an early stage exploration project with no mineral resource, there is no certainty as to the mineralization or economic viability of the Project and more exploration is necessary to better ascertain any mineralization, mineral resource or economic viability. The reader is cautioned accordingly.
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 66 AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019
18. Recommendations
Osino previously announced an exploration program for 2019 (Osino News Release of 6 June, 2019) (Table 18-1) and it is recommended that this program is expanded to allow the aggressive advancement of the Twin Hills Central and related prospects and targets, while continuing to identify new drill targets (e.g. further southwest along the Karibib Fault Zone and at Kranzberg).
Table 18-1: General planning for Osino’s work programs in Namibia in 2019 (prior to Twin Hills Central Discovery).
Additional drilling at Twin Hills Central will commence in October 2019, and this program will be expanded to test new targets at Twin Hills West, Barking Dog and Clouds. Expected drilling until the end of 2019 is approximately 10,000m with a mix of RC and DD. This drilling will replace tentatively planned drilling in the fourth quarter at Goldkuppe-Oasis-Wedge, and also extend the metres that were planned initially. An additional C$1million is budgeted to complete the fourth quarter drill program and associated work.
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 67 AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019
19. References
Allen, P. 2018a. Soil Geochemical Interpretation of the Karibib Project (EPL3739) Namibia. Independent Consultant Internal Memo for Osino.
Allen, P. 2018b. Karibib Project Drill Data: Au Duplicate and Metallic Screen Analysis Test (Goldkuppe). Independent Consultant Internal Memo for Osino.
Allen, P. 2019. Karibib Project Drill Data: Comparison of 3 Drill Holes Using Fire-Assay and Metallic Screen Analysis (Twin Hills East). Independent Consultant Internal Memo for Osino.
Anglogold Ashanti 2011. Namibia Fact Sheet. http://www.aga- reports.com/11/pdf/namibia.pdf
Burnett R.J. 1992. Gold. In: Hoal B.G. (Ed.) The Mineral Resources of Namibia. Ministry of Mines and Energy, Geological Survey, Republic of Namibia. 4.1 – 1 to 36.
De Kock, G.S., Eglington, B., Armstrong, R.A., Harmer, R.E., and Walraven, F. 2000. U- Pb and Pb-Pb ages of the Naauwpoort rhyolite, Kawakeup leptite and Okongava diorite: implications for the onset of rifting and orogenesis in the Damara Belt, Namibia. Communs geol. Surv. Namibia, Henno Martin Vol., 12, 81-88.
Garagan, T., Jones, K., Montano, P., and Rajala, J., "Otjikoto Gold Mine, Namibia, NI 43- 101 Technical Report" prepared for B2Gold Corp. dated December 31, 2018.
GSN Published Geology Map, 1:250,000 scale, Sheet 2114 – Omaruru.
GSN Published Geology Map, 1:250,000 scale, Sheet 2214 – Walvis Bay.
GSN Published Geology Map, 1:250,000 scale, Sheet 2116 – Okahandja.
GSN Published Geology Map, 1:250,000 scale, Sheet 2216 – Windhoek.
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 68 AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019
Hendrik, F.J., "Technical Report for the Karibib Gold Project in Namibia" prepared pursuant to National Instrument 43-101 by SRK Consulting (South Africa) (Pty) Ltd. for Romulus Resources Ltd. (now Osino Resources Corp.) dated May 17, 2018.
Hoffmann, K.-H. and Prave, A.R. 1996. A preliminary note on a revised subdivision and regional correlation of the Otavi Group based on glaciogenetic diamictites and associated cap dolostones, Communs geol. Surv. Namibia, Vol., 11, 77-82.
Hoffmann, K.H., Condon, D., Bowring, S., and Crowley, J., 2004. U-Pb zircon date from the Neoproterozoic Ghaub Formation, Namibia: constraints on Marinoan glaciation: Geology, v. 32, p. 817-821.
Kasch, K. 2017. Structural geology and its controls on the gold mineralization at Goldkuppe, gold deposit in West-Central Namibia. Unpublished report for Osino Namibia Holdings (Pty) Ltd.
Mackenzie, C. 2013. Summary Technical Report on the Gold Potential of the Goldkuppe and Surrounding Prospects, Otjimbojo Licence EPL3739, Navachab Belt, Central Namibia. Unpublished confidential report for BAFEX Exploration (Pty) Ltd.
Mackenzie, C. 2016. Brief Review of the 2016 Drilling Program, DGP Project, Namibia for Osino Resources Corp. Unpublished report for Osino Namibia Holdings (Pty) Ltd.
Miller, R. McG. 1983. The Pan-African Damara Orogen of South West Africa/Namibia, 431-515. Ion: Miller, R. McG.(Ed.) Evolution of the Damara Orogen of South West Africa/Namibia. Spec Publ. geol Soc of S. Sfr., 11, 515 pp.
Miller, R. McG., (2008). The Geology of Namibia. Volume 2, Neoproterozoic to Lower Palaeozoic. Ministry of Mines and Energy, Geological Survey of Namibia.
Oliver, J. 2014. “NI 43 – 101 Technical Report on the Goldkuppe - (gold) Damara Gold Project, West-central, Namibia. Unpublished report for BAFEX Exploration (Pty.) Ltd.
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 69 AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019
Steven, N.M., Badenhorst, F.P. and Petzel, V.F.W. (1994). A review of gold occurrences in the Northern and Central Zones of the Damara Orogen and the underlying mid- Proterozoic basement, central Namibia. Communs geol. Surv. Namibia, 9, 63-77.
Steven, N. M., Badenhorst, F. Kitt, S. and Wulff, K. (2008). The Navachab Gold Mine, Namibia: Largest non-Witwatersrand-type gold deposit in southern Africa. SEG- GSSA. Gold Workshop, Windhoek, Namibia (2010).
Vollgger, S.A., Cruden, A.R., Ailleres, L., and Cowan E.J. 2015. Regional dome evolution and its control on ore-grade distribution: Insights from 3D implicit modelling of the Navachab gold deposit, Namibia. Ore Geology Reviews, vol. 69, p268-284.
Wicker, V. 2019. Twin Hills East metaturbidite hosted gold mineralization, Damara Belt, Southern Central Zone – Namibia: New constraints from structural, mineralogical and geophysical investigations. Unpubl. Master of Science Dissertation, ENSG Nancy, France and Camborne School of Mines, UK, September 2019, 92pp.
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 70 AC/6905879.2 Technical Report, Karibib Gold Project, 11 October 2019
CERTIFICATE OF QUALIFIED PERSON
To accompany the report entitled, "Technical Report for the Karibib Gold Project in Namibia – Update of Exploration Activities" dated effective October 11, 2019 signed October 15, 2019 (the "Technical Report").
I, David Underwood, residing at 8 Duthie Dr., Knysna, South Africa, do hereby certify that:
1. I am Vice-President Exploration of Osino Resources Corp. (the "Issuer"), which has an office located at Suite 810 – 789 West Pender Street, Vancouver, British Columbia, Canada, V6C 1H2;
2. I graduated from Witwatersrand University, Johannesburg in 1987 with a B.Sc. (Hons). I have practiced my profession continuously since 1990 with experience in exploration geology, economic geology, and exploration methodology;
3. I am a Chartered Professional Geologist registered with the South African Council for Natural Scientific Professions (Pr Sci Nat No 400323/11);
4. I personally inspected the subject property most recently from September 12 to 20, 2019;
5. I have read the definition of “qualified person” set out in the National Instrument 43-101 (“NI 43-101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfil the requirements to be a “qualified person” for the purposes of NI 43-101;
6. I have prepared this Technical Report and take responsibility for all of the sections contained therein;
7. Pursuant to Section 1.5 of NI 43-101, and because I am an employee of the Issuer as Vice President Exploration, I am not independent from the Issuer;
8. My prior involvement in the subject property is limited to my role as Vice President Exploration of the Issuer, which is a role I have held since the Issuer's subsidiaries acquired its interests in the subject property;
9. I have read NI 43-101, and the Technical Report has been prepared in compliance with NI 43- 101 and Form 43-101F1;
10. To the best of my knowledge, information, and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading; and
11. I consent to the filing of the Technical Report with any applicable securities regulatory authorities, stock exchange and other regulatory authorities, as the case may be, and any publication for regulatory purposes, including electronic publication in the public company files and websites for stock exchanges and applicable regulatory authorities, including on SEDAR and the Issuer's website, accessible to the public for all or any extracts from this Technical Report.
Dated this 15th day of October, 2019.
"David Underwood" (signed) David Underwood, B.Sc. (Hons.) and Chartered Professional Geologist (SACNASP) Vice President Exploration Osino Resources Corp.
Osino Resources Corp. Suite 810 – 789 West Pender Street, Vancouver, BC, V6C 1H2 AC/6905879.2