ngualla resource prediction update - version 5

Before anything else is said, my usual disclaimer of: I’m not a resource geologist, I’m not qualified to complete JORC compliant resources, I’m more than likely completely wrong in my methodology and workings. Don’t make any investment decisions based on the information contained either here on Hotcopper or any where else you may find this information.

Resource Estimate Prediction Update - Version 5

Over the weekend I updated my resource estimate prediction for the Ngualla ‘Southern Rare Earth Zone’ and calculated an additional prediction for the ‘South Western Alluvials’ area. You will probably notice when comparing the figures between V4 and V5 estimates of the Southern Rare Earth Zone area that the contained REO have shrunk slightly. This is caused by my decision to crop out the far south western portion of the calculated area and instead include it in the South West Alluvial area calculation.

I have enforced a minimum of 1.0% cut off as predicting below this value is highly speculative without additional drill hole constraints.

In this version the South Western Alluvial (SWA) zone has been modelled for the first time. I followed the same procedure as that for the Southern Rare Earth Zone (SREZ) however cropped out areas that were beyond reasonable bounds of probability (1.6 calculated Variance). Note. I realised I should have done this for the SREZ as well but I really cant be bothered back tracking my work right now.

Something that really stands out is the relatively small contribution of total contained REO that the SWA prospect contributes to the total resource despite its large surface area. This is a consequence of the relatively thin thickness of the shallow mineralised blanket. Refer to the pictures of the cross-sections I have provided and you should be able to see this for yourself.

I’m predicting that PEK will release ‘low’ and ‘high’ grade resources for either the combined project or individual prospects. This is conclusion is based on the fact that the SWA is generally much lower grade than the SREZ prospect which could otherwise produce a standalone higher grade resource.

Total ‘Low Grade’ Resource (1.5% cut off)
The combined total REO (MT) for both prospects is estimated at 2.976 MT at a 1.5% cut-off grade and a mean of 2.528% REO. This is an excellent compromise between grade a tonnage although dropping the cut off to 1.0% would increase the contained rare earths by almost 1MT.

Total ‘High Grade’ Resource (2.5% cut off)
A cut off of 2.5% REO generates a combined resource of 1.686 MT contained rare earth oxide with an average grade of 3.287% REO. This is a juicy resource by standard and should demand a lot of attention by the bigger players.

I’m really looking forward to the actual JORC and what plays out afterward. I have little doubt we are sitting on the best grade/tonnage rare earth deposit in the world outside of China. Remember these numbers are only for the SWA and SREZ zones. Investors should also consider the low uranium/thorium content comapred to other deposits which will make the project attractive to environmentally sensitive western investors/partners.
We have been lead to believe the area to the north of SH contains a greater proportion of heavy REOs which I’m certain we will be hearing more about shortly. Not to mention all the niobium and tantalum kicking around the place!

Good luck all holders (I still haven’t sold a single share). Hopefully global markets improve propelling us to the stars.

Fence sitters this may be your last just to get in prior to JORC lift off!

P.S.
The company I have been working for over the last 3 years will be wrapping up over the next few months so if any exploration/miners /brokers out there are looking for a geologist with a diverse range of expertise and skills shoot me an email. [email protected]

Methodology (v5)
1. All drill hole intercepts to date entered into a database. All drill hole XY locations taken from reported coordinates or calculated from georeferenced image. Z coordinates extracted from publicly available SRTM 30m DEM data.
2. Assay Data Reconciled: Any intercepts on drill holes which have had assay results reported were assumed to by 0.5% REO. Any drill hole intercepts on holes without reported assays are left as dummy blanks.
3. Topography DEM generated from publicly available 30m SRTM data. Voxet nodes above topography dummied to null.
4. End of hole data points used to generate a basal isosurface.
5. Voxet(3d grid) generated for spatial extent of Southern REO and South Western Alluvials areas.
6. Assay results upscaled to 10m voxet.
7. Voxet gridded using Krigging with variography optimised from drill hole assay data. (same spatial statistics as V4 model.
8. Voxet split into three regions separated by two DEM and basal isosurface.
9. “Air" - Above DEM surface - REO property value set to 0.0%
"Ore" - Between DEM and Basal Isosurface - Modelled REO values retained
"Basal Carbonatite" - Below Basal Isosurface - REO property value set to 0.5%
10. Extracted statistics for various cutoffs percentages and regions: 4.0%, 3.0%, 2.5%, 2.0%, 1.5% & 1.0%.
11. Excel used for resource estimate calculations.


Resource prediction extents over Ngualla geochemistry map.

Rare Earth Oxide drill hole intersections

Modelled REO 1.0% Cut Off

Modelled REO 1.5% Cut Off

Modelled REO 2.0% Cut Off

Modelled REO 2.5% Cut Off

Modelled REO 3.0% Cut Off

Modelled REO 3.5% Cut Off

Modelled REO 4.0% Cut Off

Plan View of Modelled REO Prospects

Modelled REO points and grade colours from voxet models

UTM Section 9147260N

UTM Section 9147770N

UTM Section 9147970N

V5 Resource Calculations

V5 Resource Comparison Table

V5 Resource Comparison Graph