Cadoux Maiden Ore Reserve underpins +50-year life for FYI’s HPA development

(firmenpresse) - Cadoux Maiden Ore Reserve underpins +50-year life for FYIs HPA development

Highlights:

- Cadouxs Maiden Probable Ore Reserve Estimation (ORE) of 2.89Mt grading 24.4% Al2O3 demonstrates project quality
- The ORE supports a mine life of +50 years at an 8,000tpa high purity alumina (HPA) production rate
- ORE focuses on a sub-set of the larger Cadoux kaolin deposit for optimal HPA feedstock characteristics
- FYI has customised the Ore Reserve to its HPA flowsheet to maximise processing efficiencies and product quality, providing greater operating confidence and management of kaolin feedstock
- Highlights include additional potential revenue stream opportunities
- Cadoux kaolin deposit remains open for further tonnage increases / mine life expansion.

FYI Resources Limited (ASX: FYI) is pleased to announce a maiden Ore Reserve Estimation (ORE) for its 100% owned Cadoux kaolin project (E70/4673) situated approximately ~220km northeast of Perth, Western Australia. The maiden ORE follows an updated Mineral Resource Estimation (MRE), calculated by CSA Global for the recently published Cadoux pre-feasibility study (PFS) (see ASX announcement 25 September 2018).

FYI Resources Managing Director Roland Hill commented, Cadouxs Maiden Ore Reserve, estimated by Orelogy Consulting, has a Probable Ore Reserve estimated at 2.89Mt grading 24.4% Al2O3 (see Table 1 below) and is a significant step forward in the development of our HPA strategy and provides an excellent quality benchmark for our future operations. The ORE affords FYI confidence in the quality and characteristics of the in-ground kaolin at Cadoux and how that translates into a superior and consistent quality feedstock for the HPA processing and refining.

The Cadoux kaolin ORE should be capable of supporting HPA production for more than 50 years and potential additional project revenue opportunities have been identified from byproducts derived from processing the kaolin. We are very pleased with the source and also in the upgraded confidence in the estimation due to its importance to our overall HPA strategy.

Table 1: Cadoux maiden Probable Ore Reserve Estimation, October 2018

Stage Probable Waste Total Stri
Ore Mining p

Ratio


kT AlO kT kT
%


1 172 24.8 317 489 1.8
2 175 25.1 225 400 1.3
3 175 24.5 255 430 1.5
4 165 22.7 376 541 2.3
5 165 23.4 396 561 2.4
6 192 25.9 290 482 1.5
7 247 26.1 159 406 0.6
8 130 25.5 125 254 1.0
9 92 23.5 167 258 1.8
10 169 25.6 364 533 2.1
11 275 23.0 481 756 1.8
12 347 24.4 535 882 1.5
13 225 24.8 499 724 2.2
14 363 23.5 774 1,137 2.1
All 2,89124.4 4,961 7,852 1.7
Stages

Note: The Ore Reserve was based on a staged basis using Indicated ore only. Differences may occur due to rounding

Ore Reserve Estimate

The Ore Reserve includes the information provided in the previous MRE (see ASX announcement 26 July 2017) and includes data from FYIs reverse circulation (RC) drilling program concluded in May 2018 (see ASX announcement 7 May 2018). The ORE focuses on the Indicated material of the Cadoux resource highlighted in the plan below.

The Ore Reserve was estimated in accordance with the JORC 2012 Code for the Cadoux HPA Project. The Reserve estimate is based on the Mineral Resource, metallurgical test work, processing and engineering designs, the Kwinana processing plant and associated infrastructure, cost estimation, planning inputs, variables and assumptions, marketing and pricing research, all of which is detailed in the mining section of Companys recently published PFS report.

Whilst the ORE estimates a mine life of more than 50 years, financial modelling for the project was completed on the basis of a 25-year life with various operational and financial sensitivities analysed to confirm that the project generates positive economical returns and has a reasonable likelihood of success.
https://www.irw-press.at/prcom/images/messages/2018/44985/20181023 FYI maiden Ore ReservesPRcom.001.png


Figure 1: Cadoux maiden Ore Reserve Estimate - mining area of focus

Mine Development

The Companys maiden ORE is designed to support the recently released PFS, and provides greater confidence in the mining schedules and economic assumptions of the Cadoux project.

https://www.irw-press.at/prcom/images/messages/2018/44985/20181023 FYI maiden Ore ReservesPRcom.002.png


Figure 2: Cadoux kaolin project - potential open pit outline and mine infrastructure layout

Robust Financials

The publication of the Cadoux ORE provides further financial assurance to the project to that outlined under the PFS and the associated production and cashflow models. The ORE supports the robust potential returns and results in leading project metrics for HPA production (please refer to Summary PFS project table)

JORC Code Compliance Statement

The modifying factors considered for the project are detailed in JORC 2012 Table 1, Section 4 (appended to this announcement) regarding Estimation and Reporting of Ore Reserves. These pertain to factors or assumptions regarding to mining, metallurgy, environmental, social, infrastructure, costs, revenue, marketing, project economics, risks and legal matters.

Issue of Shares to Kokardine Kaolin Vendors

Following the release of the positive results of the PFS and now the release of a Probable Ore Reserve supporting a +50 year mining life, the Directors have agreed, with the approval of shareholders, to issue the final 10 million shares to the vendors of Kokardine Kaolin Pty Ltd and the Cadoux kaolin project. Details for the approval of the proposed issue will be set out in the notice of annual general meeting.

For more information please contact:
Roland Hill
Managing Director
Tel: 0414 666 178
roland.hill(at)fyiresources.com.au

Simon Hinsley
Investor & Media Relations
Tel: 0401 809 653
simon(at)nwrcommunications.com.au

JORC Code Compliance Statement

The information in this report that relates to Ore Reserves is based on information compiled by Mr. Steve Craig, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Steve Craig is a full-time employee of Orelogy Consulting Pty Ltd and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Steve Craig gives his consent to the inclusion in the statement of the matters based on their information in the form and context in which it appears.

About FYI Resources Limited

FYI is positioning itself to be a significant producer of high purity alumina (4N or HPA) in a rapidly developing: LED, electric vehicle (EV), smartphone and television screen as well as other associated high-tech product markets.

The foundation of FYIs HPA strategy is the superior quality aluminous clay (kaolin) deposit at Cadoux and exceptional positive response that the feedstock has to the Companys moderate temperature, atmospheric pressure HCl flowsheet. The strategys superior quality attributes combine resulting in world class HPA project potential.

JORC TABLE 1 Section 4
Estimation and Reporting of Ore Reserves - Cadoux Kaolin Project

Estimation and Reporting of Ore Reserves
Criteria Explanation Commentary
Mineral Description of the The Mineral Resource Estimate used as
Resource Mineral Resource a basis for the conversion to the
estimate estimate used as a Ore Reserve was provided on 27th
for basis for the August 2018 with Mr Grant
conversi conversion to an
on to Ore Louw, employee of CSA Global, as the
Ore Reserve. Competent
Reserves Person.
Clear statement as
to whether the At a zero percent cut-off grade, this
Mineral Resources total Mineral
are reported R
additional to, or esource includes 9.6Mt of Indicated
inclusive of, the and Inferred materials with an
Ore average grade of 23.0%
Reserves.
AlO.
The Mineral Resources are reported
inclusive of the Ore
Reserves.

Site Comment on any site The Competent Person (Mr Steve Craig)
visits visits undertaken has visited the proposed mining site
by the Competent of the project in September 2018.
Person and the The following observations were
outcome of those incorporated:
visits.
· The mining area is located in the
Wheatbelt region approximately 220km
North East of Perth, accessible from
Perth by well-maintained bitumen
roads.

· The mining area is located
approximately 10 km north-northeast
of the township of Cadoux, Western
Australia. Cadoux is a small
township in the north-eastern
Wheatbelt region, within the Shire
of
Wongan-Ballidu

· The population density in the
region is low with the population of
Cadoux estimated (2016) at 67.


· The mining area is located on
private, freehold, cleared, farmland
currently used for growing
crops.

· There are no buildings or
structures within the mining
area.

· Differences in elevation are
moderate without steep slopes. Hence
no difficulties are expected in
developing site access or site
establishment.

· There are no power or water access
points within the mining area, there
is a power line immediately to the
west of the mining area and a water

pipeline is within 1km of the site.
Study The type and level A Pre-Feasibility Study (PFS) for the
status of study undertaken Cadoux High Purity Alumina (HPA)
to enable Mineral project was the basis for the
Resources to be conversion of Resources to Reserves.
converted to Ore
Reserves. The study, which indicates that the
project is technically achievable
The Code requires and economically viable, was
that a study to at compiled by GR Engineering Services
least on behalf of FYI Resources Ltd with
Pre-Feasibility input from specialist
Study level has consultants.
been undertaken to
convert Mineral The PFS was underpinned by a mine
Resources to Ore plan. The mine plan produces
Reserves. Such
studies will have high-grade alumina material for
been carried out on-site
and will have beneficiation
determined a mine . An intermediate concentrate is trans
plan that is port
technically ed to the HPA processing plant in
achievable and Kwinana.
economically
viable, and that
material Modifying The AlO grade and the mining rate
Factors have been of the ore are in line with the feed
considered. requirements of the beneficiation
and HPA processing plants.


The mine planning activities included
final and interim stage pit designs,
mine scheduling including
backfilling, and mining cost
estimations. Modifying factors
considered during the mine planning
process included slope design
criteria, mining dilution and ore
loss.

The activities and findings of all
other disciplines were summarised in
the PFS document, and detail
derivation of other modifying
factors such as processing
recoveries, costs, revenue factors,
environmental and social. Overall
the results of the PFS demonstrate
that the HPA project is technically
achievable and economically
viable.

Cut-off The basis of the Only Indicated resource materials
paramete adopted cut-off were considered as potential ore
rs grade(s) or quality material.
parameters
applied.
A 7.5% AlO ore/waste cut-off grade
was utilised in the pit optimisation
process.

No other quality parameters were
applied during the

Ore Reserve estimation.
Mining The method and As part of the PFS, a detailed mine
factors assumptions used as design and annual schedule was
or reported in the produced. This study indicated
assumpti Pre-Feasibility or that:
ons Feasibility Study
to convert the · The Ore Reserve derived from the
Mineral Resource to Mineral Resource can easily meet the
an Ore Reserve processing feed requirements for the
(i.e. either by production targets of the project.
application of
appropriate factors
by optimisation or · The ore presents near surface and
by preliminary or is easily accessible by conventional
detailed open pit mining
design). methods.

· The pit optimisation, design and
schedule process indicate a project
life of

+50-years at an ore mining rate of
approximately 53,500t per annum,
targeting HPA production between
7,000 and 8,000tpa.


· The cost of the Cadoux mining
operation accounts for only 2% of
the total HPA production
cost.

The choice, nature A conventional open pit mine method
and appropriateness was chosen as the basis of the PFS
of the selected due to the near surface presentation
mining method(s) of the mineralisation. Mining and
and other mining backfilling of pit voids is to occur
parameters on a campaign
including basis
associated design .
issues such as Overburden and beneficiation rejects
pre-strip, access, are backfilled into the pit to
etc. minimise the foot print of the
operation.


Due to the relatively small
quantities extracted, and to
maintain adequate efficiencies,
mining will be undertaken in 2 to 3
month campaigns, sufficient to
excavate and stockpile three (3)
years

ore supply on the Run of Mine (RoM)
stockpile
pad.

Mine design criteria include: minimum
mining width, ramp width and
gradient, pit exit location and
slope design
parameters.


The assumptions made No site-specific geotechnical
regarding assessment was available. The basis
geotechnical of the pit slopes and backfill slope
parameters (e.g. angles were based on assumptions
pit slopes, stope from other
sizes, etc.), grade
control and shallow oxide only mining operations.
pre-production The overall pit and backfill slope
drilling. angles were set at 35. The pit
optimisation process indicated that
the optimal pit selection was not
sensitive to slope
angles.

Further grade control drilling
programs will be considered in the
next phase of studies. The ore -
overburden boundary is defined by
the ore solid (wireframe) provided
with the resource model. Delineation
of this boundary during mining
operations will utilise survey
control. Visual checks will then be
undertaken by the equipment
operators as the visual
differentiation between ore and
waste is clear. This will ensure
that any ore material that is not
perfectly bright white will be
directed to the overburden dump.


RoM dumping strategies can be adopted
to blend materials and manage short
interval grade
variations.

The proposed mining method will not
require drilling and blasting
activities due to the weathered
nature of the materials.


The major The August 2018 Datamine Mineral
assumptions made Resource Model (Camd818) used as a
and Mineral basis for the conversion to the Ore
Resource model used Reserve.
for pit and stope
optimisation (if Only Indicated material were
appropriate). categorised as ore for the
optimisation process. Inferred
mineralisation was treated as waste.


The mining dilution Mining dilution will need to be
factors avoided as this may affect the
used. performance of the processing plant.
Dilution has been set at 0% on the
basis that appropriate procedures
and processes will be developed to
eliminate

dilutants from the ore during the
mining phase. This can be achieved
through survey control and visual
checks when excavating.


The mining recovery Mining recovery has been set at 90%
factors reflecting the need to provide
used. clean, undiluted ore to the

beneficiation plant. The ore loss is
accepted at ore/waste boundaries in
order to eliminate dilution. Ore
loss will also occur at bench floors
due to the requirement to remove
road sheeting
materials.

Any minimum mining Pit designs and interim cutbacks have
widths been designed to suit a 65t
used. excavator and 40t payload
articulated dump trucks. The
parameters used
were:

· A minimum mining width of 20m.
· One-way ramp width of 8m.
· Ramp gradient 12.5%.
The manner in which No inferred Mineral Resources have
Inferred Mineral been included in the
Resources are
utilised in mining Ore Reserves or the associated
studies and the production
sensitivity of the schedule.
outcome to their
inclusion. Within the designed final pit
inventory, the Mineral Resource
tonnages
are:

· 3,212kt Indicated. 94% of Mineral
Resource within final design
pit

· 211kt Inferred. 6% of Mineral
Resource within final design
pit


The infrastructure The PFS considers the proposed open
requirements of the cut mine plan and schedule, and
selected mining includes waste and overburden
methods. removal, ROM pads based on

domained ore, haul roads to
beneficiation plant, haulage loading
facilities, water management,
workshops, administration buildings,
traffic management and other
associated mine and facility
infrastructure
.
It is planned to conduct mining on a
contract basis to produce three (3)
years of

ore supply using 2-3 month mining
campaigns.


MetallurgThe metallurgical The proposed process flow comprises
ical process proposed the following key unit processes
factors and the -
or appropriateness of
assumpti that process to the · Wet attritioning and screening of
ons style of whole ore feed to produce a low
mineralisation. Silica screen undersize stream for
downstream processing and a
Whether the by-product Silica rich screen
metallurgical oversize
process is stream.
well-tested
technology or novel · Drying and calcination of attritioni
in ng
nature. screen undersize to activate Kaolin
in preparation for acid
The nature, amount leaching.
and
representativeness · Staged Hydrochloric Acid leaching
of metallurgical to extract Aluminium as Aluminium
test work Chloride into
undertaken, the solution.
nature of the
metallurgical · Staged precipitation of Aluminium
domaining applied Chloride concentrates via Hydrogen
and the Chloride gas phase
corresponding sparging.
metallurgical
recovery factors · Aluminium Chloride concentrate
applied. recovery, filtration and
washing.
Any assumptions or
allowances made for · Final high temperature Aluminium
deleterious Chloride calcination and conversion
elements. to High Purity Alumina
(HPA).
The existence of any
bulk sample or Historically the proposed process
pilot scale test flow has been tested successfully
work and the degree for production of Alumina from
to which such Kaolin feed
samples are stock.
considered
representative of The proposed process flow is
the orebody as a considered appropriate for the
whole recovery of HPA from Kaolin as
evidenced in recent results
For minerals that reporting an HPA product grade
are defined by a exceeding 99.99%
specification, has Al
the ore reserve 2O3.
estimation been The direct and variable testwork was
based on the based on blended and master
appropriate composites that were constructed to
mineralogy to meet be representative of the kaolin
specifications? deposit.

Test sample product were derived from
RC holes that were approximate to
the average resource grade and
deleterious element
average.

Extensive variation work on grade and
deleterious elements were also
conducted to understand the outliers
to the metallurgical response


Detailed testwork confirmed excellent
amenability to leaching and
precipitation stages. Recoveries
achieved were 99.997%
Al
2O3.
Supporting metallurgical testwork has
been conducted to date based on
batch testing and processing;
further stages of work are scheduled
for bulk product
generation.

The testwork completed to date has
been conducted based on resource
representative composites, including
allowance for separate variability
sample
testing.

Alumina recoveries and grades
corresponding to Alumina and
potential deleterious elements are
consistent with values established
based directly on the
testwork.

IMO have undertaken large scale
representative sampling of the
Cadoux kaolin deposit that is
considered appropriate for the
commodity being studied. IMO have
prior experience with this commodity
and relate that to addressing the
minerology requirements for the PFS
testwork and
review.

The minerals that define the Ore
Reserve are not based on a
specification
other than Alumina grade.
EnvironmeThe status of Botanica Consulting Pty Ltd has
ntal studies of undertaken baseline studies as well
potential as flora, fauna and other essential
environmental permitting studies at both the
impacts of the Cadoux and Kwinana project sites and
mining and have found no major impacts on the
processing environment or on mining. Please see
operation. Details body of PFS for further
of waste rock details.
characterisation
and the Hydr2o Pty Ltd conducted a hydrology
consideration of survey at the Cadoux project site
potential sites, and found that the project was not
status of design in a water reserve or sensitive
options considered area. No major surface or
and, where subterranean water issues were
applicable, the identified that would impact the
status of approvals environment or the HPA
for process residue operations
storage and waste .
dumps should be Cadoux ore and waste rock are
reported. characterised as non-acid forming
(NAF) and does not pose a threat to
water courses or subterranean water
sources. The mining operation is
small, so the footprint and
disturbance area are small. The
operations will be progressively
back filling and rehabilitating the
open
pits
.
InfrastruThe existence of Cadoux is located 220km north east of
cture appropriate Perth with the project area having
infrastructure: access to major arterial roads,
availability of rail, mains water, telephone line
land for plant and a 33KVA power line - all within
development, power, 1km of the
water, project.
transportation
(particularly for Labour, utilities, services,
bulk commodities), accommodation and transport is very
labour, accessible as there are a number of
accommodation; or small towns in the area, the major
the ease with which regional town of Wongan Hills is
the infrastructure 60kms in distance and Perth is in
can be provided, or easy driving distance of
accessed. approximately 2
hours

Costs The derivation of, All project costs (capital,
or assumptions operating, consumables, labour,
made, regarding freight etc) have been identified,
projected capital assessed and calculated by the
costs in the various expert study
study. manager
s responsible for the various
The methodology used sections of the PFS. The study
to estimate managers include GR Engineering
operating Services (GRES), Independent
costs. Metallurgical Operations (IMO), CSA
Global
Allowances made for (CSA) and Orelogy Consulting Pty
the content of Ltd.
deleterious
elements.
These groups have utilised detailed
The derivation of studies, indexed prices, public
assumptions made of reference prices etc to calculate
metal or commodity the various costs used as inputs
price(s), for the into the PFS. Please see the PFS
principal minerals report for further information.
and co-
products.
All costs are based on market rates
Derivation of as of the Q3 2018 are to a
transportation
charges. ±25% accuracy
Detailed studies by respective study
The basis for managers have identified and
forecasting or accounted for deleterious content
source of treatment within the deposit as well as in the
and refining process and refining of the HPA. The
charges, penalties deleterious element has also been
for failure to meet accounted for in the financial
specification, modelling.
etc.
All mining recovery, metallurgical,
The allowances made recovery and other technical
for royalties concerns regarding the commodity
payable, both price for HPA have been considered
Government and by appropriately qualified
private. individuals and groups in respect to
the PFS
requirements
.
FYI has used a number of sources and
differ
ent service providers in estimating
and calculating its transportation
costs. FYI believes that the freight
cost estimation is accurate and
appropriate to the PFS. Further
transportation charge details are
included in the
PFS.

Extensive studies have been
undertaken to understand and
estimate operating costs and charges
as well as penalties for
off-specification product. IMO and
GRES have particularly focused on
this area of the PFS. Further detail
is highlighted in the
PFS.

Under the operations and financial
modelling, full allowances are made
for state royalties, duties, taxes,
compensation etc. The project
financial model details the
particular financial cost, the
percentage and the amount. A 5%
state royalty has been allowed
for.

Revenue The derivation of, The Cadoux PFS financial model
factors or assumptions made provides for an array of project
regarding revenue assumptions, including costs, cost
factors including escalations, grade variations,
head grade, metal production
or commodity variation
price(s) exchange , exchange rates, etc.
rates, These assumptions have been modelled
transportation and on variations and sensitivities to a
treatment charges, range of +/- 20% on major input
penalties, net factors
smelter returns,
etc. such as grade, operating cost, capital
cost and
The derivation of
assumptions made of revenue.
metal or commodity The assumed price in the financial
price(s), for the modelling has been derived from a
principal metals, number of sources and then
minerals and discounted. The sources include
co-products. independent market research
(C
RU and Allied Market Research)
Market The demand, supply The market assessment for price and
assessme and stock situation volume/demand has been supported
nt for the particular by:
commodity,
consumption trends · 2 independent research groups (CRU &
and factors likely Allied Market
to affect supply Research)
and demand into the
future. · IMO achieving a reference price -
by purchasing HPA for independent
A customer and testing
competitor analysis
along with the · FYIs own market research and
identification of direct meetings with market
likely market participants (producers,
windows for the manufacturers and traders) in China,
product. Japan and South
Korea
Price and volume
forecasts and the · Web-based commodity trading
basis for these platform
forecasts. references
.

Economic The inputs to the The Mineral Resource estimation,
economic analysis completed by CSA Global, and mining
to produce the net schedule, completed by Orelogy
present value (NPV)
in the study, the Consulting Pty Ltd, are of sufficient
source and technical standard and level of
confidence of these accuracy taking into account all
economic inputs mining and associated activities and
including estimated contingencies.
inflation, discount
rate, The economic assumptions used in the
etc. financial modelling
are:
NPV ranges and
sensitivity to · 0.75 USD:AUD exchange rate
variations in the · 10% discount rate
significant · Contingency of 10% on Cadoux and
assumptions and 15% for Kwinana capital and
inputs. operating
costs

The financial summary and base case
NPV demonstrates a positive result.
Sensitivities and discounting ranges
have been applied to understand the
economic tolerance to various key
inputs to the base
case
. The sensitivities are generally ±20%
and despite this, the financial
result still demonstrates a positive
economic case and profit margin to
support the development of
Cadoux

Social The status of There are no existing Native Title
agreements with key claims on the Cadoux project
stakeholders and tenements. Broader stakeholder and
matters leading to community engagement will be ongoing
social licence to over the development of the
operate. project.

Other Any identified There are no obvious or likely
To the material naturally naturally occurring risks that have
extent occurring been identified or which may
relevant risks. negatively impact the Project or
, the Project
impact The status of area.
of the material legal
followin agreements and No major or material legal Agreements
g on the marketing exist in respect to the Company at
project arrangements. this
and/or stage.
on the The status of
estimati government There is one marketing arrangement
on and agreements and signed at this point (MOU) regarding
classifi approvals critical marketing of HPA in
cation to the viability of Korea
of the the project, such .
Ore as mineral tenement All statutory government agreements,
Reserves status and permits and approvals commensurate
. government and to the current status of the project
statutory are all current and in good
approvals. There order.
must be reasonable
grounds to expect A Mining Lease is yet to be granted
that all necessary for the Cadoux
Government site.
approvals will be
received within the Timeframes for Agreements appropriate
timeframes to the PFS have been handled
anticipated in the appropriately and have not put the
Pre-Feasibility or project at
Feasibility study.
Highlight and risk. Agreement timeframes in respect
discuss the to the FS will be handled with
materiality of any similar accord so as not to put the
unresolved matter future studies and project
that is dependent development at risk
on a third part on also.
which extraction of
the reserve is
contingent.

ClassificThe basis for the Probable Ore Reserves were determined
ation classification of from mineralisation classified as
the Ore Reserves Indicated Resource. This
into varying classification is reasonable because
confidence of the nature of the deposit
categories. Whether (consistency, homogeneity, low
the result variability). The risks associated
appropriately with the orebody variability appear
reflects the much lower than other project risks
Competent Persons (such as price and exchange rate
view of the variations and the requirement of
deposit. The meeting product specifications to
proportion of realise the estimated product
Probable Ore price).
Reserves that have
been derived from 100% of the Ore Reserves are
Measured Mineral classified as
Resources (if Probable.
any).

Audits The results of any The Ore Reserve estimate has been
or audits or reviews reviewed internally by Orelogy
reviews of Ore Reserve Consulting Pty Ltd. No external
estimates. reviews or audits have been
undertaken on the Ore Reserve
estimate.

DiscussioWhere appropriate a The Mineral Resource, and hence the
n of statement of the associated Ore Reserve, relate to
relative relative accuracy global
accuracy and confidence estimates.
/ level in the Ore
confiden Reserve estimate To date, there has been no commercial
ce using an approach production with FYIs HPA
or procedure deemed manufacturing process, so no
appropriate by the comparison to production or
Competent Person. reconciliation data can be
For example, the made.
application of
statistical or The Ore Reserve estimate is an
geostatistical outcome of the September 2018
procedures to Pre-Feasibility Study with
quantify the geological, mining, metallurgical,
relative accuracy processing, engineering, marketing
of the reserve and financial considerations to
within stated allow for the cost of finance and
confidence limits, tax. Engineering and cost
or, if such an estimations have been done to a ±25%
approach is not level of accuracy, consistent with a
deemed appropriate, PFS of this nature.
a qualitative
discussion of the
factors which could An NPV was estimated with FYIs
affect the relative financial model which demonstrates
accuracy and that the project is economical and
confidence of the robust.
estimate.
Sensitivity analysis undertaken
The statement should during the PFS shows that the
specify whether it project is most sensitive to a
relates to global movement in the HPA selling price.
or local estimates, The NPV is not as sensitive to
and, if local, changes in capital or operating
state the relevant costs.
tonnages, which
should be relevant The robustness of the project and the
to technical and low sensitivity to cost variations
economic provide confidence in the Ore
evaluation. Reserve estimate. However, there is
Documentation no guarantee that the HPA price
should include assumption, while reasonable, will
assumptions made be
and the procedures achieved
used.

Accuracy and
confidence
discussions should
extend to specific
discussions of any
applied Modifying
Factors that may
have a material
impact on Ore
Reserve viability,
or for which there
are remaining areas
of uncertainty at
the current study
stage.

It is recognised
that this may not
be possible or
appropriate in all
circumstances.
These statements of
relative accuracy
and confidence of
the estimate should
be compared with
production data,
where
available.

Unternehmensinformation / Kurzprofil:
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Bereitgestellt von Benutzer: irw
Datum: 24.10.2018 - 14:23 Uhr
Sprache: Deutsch
News-ID 583024
Anzahl Zeichen: 53272

contact information:
Town:

Wien

Kategorie:

Business News

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"Cadoux Maiden Ore Reserve underpins +50-year life for FYI’s HPA development
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