- Agreement to acquire 100% of Kokkus project in exchange for:
- US$500,000 (already paid)
- US$550,000 due on Dec 2019
- US$1,750,000 due on March 2020
- Geological model considered similar to massive Russian gold deposit, Sukhoi Log (Polyus, 63 Moz Au) with folded, silicified-sericitised back shale, very little pyrite and 70-75% free gold in the oxide zone and 47% free gold in the sulphide zone (gravity tests 2019)
- Metallurgical testwork indicates potentially 50%-70% gravity recovery for both oxide and sulphide
- Current internal (JORC) resource estimates:
- “indicated”: 4.2 Mt at 1.4 g/t Au for 177.3 koz contained Au;
- “inferred”: 0.8 Mt at 0.8 g/t Au for 20 koz contained Au; and
- “total”: 5.1 Mt at 1.3 g/t Au for 197 k oz contained Au @ 0.3g/t COG
- Current resource estimates based on only 5% (250 m) of the total length of silicification and sericitised black shales (6,000 m) already mapped and sampled now available for drilling
- Estimated current strike length of at least 3.4km of good Au mineralization, which could generate an Au resource of 2.6+ million oz Au
- Total resource potential believed to be 5+ million oz Au over 7 separate Au zones
- Existing power lines on license area
Kokkus – ASTER Analysis
Advanced Spaceborne Thermal Emission and Reflection Radiometer (ASTER) data showing Sericite Alteration
Current mapping has identified intensely folded very altered banded shale & chert with a possible mylonitic structural controls on Au mineralization
The folds show internal tight isoclinal folds within a larger fold structure The Au mineralization is contained in silicified banded shales & chert layers with qtz + py veins along the banding
Potential width 50-150m, and combined length 8km. The mineralization mapped corresponds directly with ASTER alteration anomalies
Analysis using SWIR spectrometer and hand held XRF machines by the Uni of St Andrews on some Kokkus core, (2 samples) with significant Au values, confirmed that the main alteration associated with Au mineralization was strong silica and illite alteration, exactly what was seen on the ASTER images
Kokkus – Geological Map
Kokkus– 2018 Drilling Results
- Verification and exploration holes allowed SMG to convert the Kokkus resource to 5.1 Mt at 1.3 g/t Au for 197 k oz contained Au @ 0.3g/t COG
- Gravity test work using a Knellson Concentrator, indicates 70% Au recovery from the oxide zone and 47% recovery from the sulphide zone
- This 188,000 oz Au resource represents only 5% of the overall length of mineralization
KOKKUS PROJECT
Drilling Results Summary
Hole | From | To | Thickness (m) | Au g/t* |
Criteria: >3m thick >0.3g/t and max 2m internal waste. *Included intervals > 3m Thickness and average >0.5g/t Au | ||||
KK_18_DD_006 | 12,00 | 30,00 | 18,00 | 1,18 |
KK_18_DD_006 | 65,20 | 73,00 | 7,80 | 1,24 |
KK_18_DD_006 | 76,00 | 110,00 | 34,00 | 0,66 |
KK_18_DD_006 | 139,00 | 143,00 | 4,00 | 0,90 |
KK_18_DD_006 | 160,00 | 164,00 | 4,00 | 0,70 |
KK_18_DD_006 | 172,00 | 177,00 | 5,00 | 0,64 |
KK_18_DD_005 | 23,00 | 107,10 | 84,10 | 2,26 |
*Includes | 47,00 | 60,00 | 13,00 | 7,16 |
KK_18_RC_004 | 58,00 | 80,00 | 22,00 | 0,49 |
KK_18_DD_008 | 126,00 | 132,00 | 6,00 | 2,01 |
KK_18_DD_008 | 142,00 | 147,00 | 5,00 | 0,85 |
KK_18_DD_008 | 152,00 | 162,00 | 10,00 | 1,24 |
Hole | From | To | Thickness (m) | Au g/t* |
Criteria: >3m thick >0.3g/t and max 2m internal waste. *Included intervals > 3m Thickness and average >0.5g/t Au | ||||
KK_18_DD_004 | 50,00 | 57,40 | 7,40 | 0,94 |
KK_18_DD_004 | 104,00 | 126,00 | 22,00 | 1,48 |
KK_18_DD_004 | 145,00 | 154,00 | 9,00 | 3,28 |
KK_18_DD_004 | 160,00 | 169,10 | 9,10 | 0,57 |
KK_18_DD_009 | 11,00 | 36,10 | 25,10 | 0,49 |
KK_18_DD_009 | 46,50 | 49,50 | 3,00 | 1,63 |
KK_18_DD_009 | 63,50 | 69,50 | 6,00 | 1,74 |
KK_18_DD_009 | 74,00 | 77,00 | 3,00 | 0,95 |
KK_18_DD_002 | 15,10 | 19,10 | 4,00 | 0,76 |
KK_18_DD_002 | 46,00 | 58,90 | 12,90 | 0,71 |
KK_18_DD_002 | 126,40 | 143,40 | 17,00 | 0,41 |
KK_18_DD_007 | 36,00 | 48,00 | 12,00 | 0,30 |
KK_18_DD_007 | 52,00 | 59,00 | 7,00 | 0,76 |
KK_18_DD_007 | 68,00 | 124,00 | 56,00 | 0,53 |
KK_18_DD_007 | 142,00 | 147,00 | 5,00 | 0,31 |
Kokkus – Work Program / Estimated Timeline to Production
Drilling on Kokkus 1,2 & 3 |
|
2019
Q3 | Q4 |
Infill Drilling on Kokkus 1, 2 & 3 | Drilling on Kokkus 4, 5, 6 & 7 |
|
|
2020
Q1 | Q2 | Q3 | Q4 |
2018 Drilling Results | Complete Additional Analysis / Testing |
Government Submissions |
|
Targeting additional 2m oz Au JORC inferred resource | Metallurgical Hydrological Geotechnical | Local feasibility study Mining license application |
Feasibility Study | Targeted First Production |
|
|
2021
Q1 | Q2 | Q3 | Q4 | |
Financing / Construction | ||||
IPO / debt funding followed by project construction |