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Freda Rebecca

Zani-Kodo Project

Full name:
Zani–Kodo Joint Venture
Mwana interest:
Mwana Africa holds 80% in the Kilo Moto Joint Venture with SOKIMO (Société des Mines d’Or de Kilo Moto), controlled by the state-owned Office des Mines d'Or de Kilomoto (Okimo)holding the remaining 20% free interest carry in terms of an agreement signed in June 2005.


Zani–Kodo Gold Resource
Category Cut off (g/t) Tonnes (t) Grade (g/t) Ounces (oz)
Indicated 0.5 5,918,131 3.33 634,335
Inferred 0.5 32,125,518 2.27 2,340,565
Total   38,043,649 2.43 2,974,900

Note: The effective date for the Zani–Kodo resource statement is September 2013

Geology and history:
The Zani-Kodo project comprises four licences (including the Zani-Kodo mining licence) covering 1,605km² in the highly prospective Ituri district in the north-east of the country (Figure 1). The licence area is situated in the same Archaean greenstone belt that hosts the giant Kibali project (>20Moz) 60km to the NW and the Mongbwalu Project (5Moz) 30km to the SW(Figure 2).
The regional geology consists of basements gneisses and greenstone belt metasediments and minor metavolcanics. The metasedimentary sequence contains both banded and massive iron formations. Banded iron formations are the main gold host rocks. The district scale geology is shown in (Figure 3).
The historical Zani-Kodo operation reached a total production of 572,000t at 6.5g/t (mining high-grade veins), but was abandoned during the civil war in 1964. Zani-Kodo's mineralised zone is 700m in length at the surface and up to 30m wide. The Main Zone consists of silicification in sheared metasediments and banded iron formation with gold associated with sulphides. At the time of abandonment the (non-compliant) sulphide reserve was reported to be 352,000t at 8.15g/t. The location of the historical pit is shown in (Figure 4).
Current status and prospects:
In response to lower commodity prices and in line with the Company’s strategy of cutting costs, Mwana suspended exploration drilling at Zani-Kodo during Q2 of FY2014. Prior to the cessation of drilling, 42 diamond core drill holes for a total of 11,268m were completed. Results include 9m @ 6.46g/t Au and 4m @ 8.33g/t.
To end of September 2013 a total of 457 diamond holes have been completed for 104,502m.
Kodo Main:
Drilling commenced at the site of the old Kodo mine in April 2007. To date a total of 56,000m has been drilled at this location. Mineralisation has been identified to a vertical depth of 450m (open ended).
Gold is hosted in sheared black shale/BIF units close to the contact with a competent footwall metagreywacke (Figure 6). A high-grade shoot is present consisting of quartz veins and breccias (Figure 7) with pyrrhotite and arsenopyrite the dominant sulphides. This zone is up to 30m thick with a strike length of 300m.
Drilling results for the lower portion of Kodo Main are shown in (Figures 8) with the latest assay results available.
A detailed interpretation of drilling results, surface mapping and downhole structure has allowed the definition of a robust structural model of the Kodo area. The deposit is interpreted to comprise of a basal thrust along the metasandstone-BIF contact with a series of steeper hangingwall splays. Enhanced mineralization at Kodo occurs at a major frontal ramp where the dip is significantly steeper than elsewhere. A series of late NE trending normal faults have also been identified. These have allowed the wireframes to be tightly defined in specific fault blocks. The margins of the orezone are invariably sharp with <1% difference between 0 and 0.5g/t cut offs. The mineralization wireframes at 0.5g/t cut off are shown in (Figure 9).

The Zani-Kodo project total combined JORC-compliant gold resource now stands at 2.97Moz at 2.43g/t (based on a cut-off grade of 0.5g/t). This is an increase of 13% on the February 2013 resource statement, which was itself a 30% increase on the February 2012 resource statement.

Test work carried out on samples taken from the Kodo Main orebody found the ore to be non-refractory and showed higher than 90% gold extraction across all the recovery methods tested.

As part of feasibility work underway at Kodo Main, a resource-conversion drilling programme was completed in 2014. This will be followed by a geotechnical drilling programme and regional field investigations will continue during FY2015.

Zani-Kodo resources as at August 2013:
Sub area Category Tonnes (t) Grade (g/t) Au (oz)
Kodo Main Indicated 4,799,487 3.63 560,197
Kodo Main Inferred 10,330,969 3.52 1,169,293
Lelumodi Indicated 1,118,644 2.06 74,079
Lelumodi Inferred 8,154,092 1.81 474,563
Lelumodi North Inferred 1,150,062 2.34 86,532
Badolite Inferred 2,806,940 2.34 211,197
  Inferred 9,683,455 1.28 398,547
Total   38,043,649 2.43 2,974,426
Mineralisation at Kodo remains completely open at depth and based on the excellent geological continuity and in accordance with the transition towards JORC 2012 requirements, a 4th (Exploration Target) classification has been introduced for additional deep extensions at Zani Kodo. This projected target is anticipated to be in the range of 1.3 to 2.3 Mt at an average grade of 3 to 4 g/t (Note: Figures are expressed as ranges to reflect uncertainty in the estimate.) Additional drilling is required to upgrade these figures to JORC resource status.

Kodo Gold Deportment
Petrographic analysis shows that the majority of gold grains at Kodo occur either as free grains or in association with arsenopyrite or pyrrhotite, with gold occurring on grain margins or along cracks. Examples of typical gold occurrences from Kodo are shown in (Figure 10).
Metallurgical testwork has been carried out on a 150kg bulk sample from Kodo. Results are positive with results summarised in the table below. Importantly, 75.8% recoverable by gravity alone.
Process Route Gold Recovery (%)
CIL on milled ROM 96.4
Gravity and leach 94.16
Normal flotation and leach 95.61
Flash flotation and leach 91.43
Gravity, flotation on gravity tails, and leach on concentrate tails 94.13

Le Badolite
Following the definition of a >1Moz resource at Kodo drilling moved to the Badolite target 1.5km south of Kodo (Figure 5 and Figure 11). A total of 46 holes for 9,001m were completed. The drilling accurately intersected the Zani-Kodo trend as predicted with mineralization present in sheared BIF’s and quartz veins (Figure 12). Drilling results are shown in (Figure 13), with the latest assay results available.
The area is bounded to north and south by faults with a well defined orebody present (Figure 14)
The resource for Badolite (included in the total Zani Kodo resource) is as follows:
Area Cut off (g/t) Category Tonnes (t) Grade (g/t) Ounces (oz)
Badolite 0.5 Inferred 2,806,940 2.34 211,010

Zani Central:
Exploration drilling has been completed at the Zani Central target to the south of Badolite, with the two areas separated by a NE trending fault. Artisanal workings are present at surface (Figure 15) in this area as well as two historical exploration adits.
Drilling has intersected a broad zone of mineralization in sheared banded iron formations. A cross section is shown in (Figure 16) and results to date are shown in (Figure 17). The latest assay results are available. The well defined orebody is bounded to both north and south by vertical SW-NE trending faults (Figure 14).
The resource for Zani Central (included in the total Zani Kodo resource) is as follows:
Area Cut off (g/t) Category Tonnes (t) Grade (g/t) Ounces (oz)
Zani Central 0.5 Inferred 9,683,455 1.28 398,894
This area is located 4km SE of Kodo Main and is situated on a major gold in soil anomaly (Figure 5). Drilling in this area was started in 2011 and targeted the soil anomaly. Broad mineralized zones have been successfully identified over a strike length of 350m, with best intersections of 59.6m @ 2.04g/t; 51m @ 2.01g/t; 50m @ 2.51g/t and 13m @ 5.61g/t. Mineralisation is associated with silicified felsic volcanic units with a sequence dominated by metabasalts and metadolerites. Additional zones in the hangingwall of the main felsic units are associated with narrower BIF’s. Results from Lelumodi are shown in Figure 18 with a cross section shown in Figure 19. It appears that the main district-scale mineralized structure has cut up sequence along a SW-NE trending lateral ramp immediately south of Zani Central as shown in (Figure 5).
A resource has been calculated for the 350m strike length at Lelumodi which has been drilled to a spacing of 50m x 50m.
Area Cut off (g/t) Category Tonnes (t) Grade (g/t) Ounces (oz)
Lelumodi 0.5 Indicated 1,118,644 2.06 74,260
Lelumodi 0.5 Inferred 8,154,092 1.81 475,072
Total     9,272,736 1.84 549,332
Lelumodi North
Limited drilling has been carried out at the northern strike extension of Lelumodi (Lelumodi North, Figure 5). Broad mineralized zones have been successfully identified, with a best intersection of 43m @ 2.12g/t.
Based on drilling to date a resource has been defined as follows:
Area Cut off (g/t) Category Tonnes (t) Grade (g/t) Ounces (oz)
Lelumodi North 0.5 Indicated 1,150,062 2.34 86,589
The current drilling status at Lelumodi North is shown in Figure 20. This shows that only a portion of the anticipated resource has been drilled to date. As a result of the excellent geological control and the open ended nature of the mineralized zones at Lelumodi North, BMRE has also provided Exploration Target estimates for the area. This target is anticipated to be in the range of 1.5 to 3 Mt at an average grade of 2 to 2.5 g/t (Note: Figures are expressed as ranges to reflect uncertainty in the estimate). Additional drilling is required to be upgrade these figures to JORC resource status.
Exploration activites at Zani-Kodo have resulted in resource increases from 2008 to 2013 as shown in (Figure 21).
Exploration triangles for 2007 and 2013 (Figure 22) show the progress made in identifying and appraising targets, which has allowed individual targets to be rapidly brought to resource status.
Exploration targets:
Immediate, high priority exploration targets are present along strike from Lelumodi in the 4,000m gold in soil anomaly (Figure 5) and will be tested.
To the north of Kodo a series of BIF units have been identified extending towards the Mt Meyo area (Figure 23). The units strike SW-NE as a result of reorientation due to a major regional shear zone. Detailed mapping is in progress in this area and initial soil sampling has been completed.
Further targets have been identified to the south, away from the main Zani-Kodo trend where high magnetic lithologies are present in prospective structural settings. These are shown in (Figure 24). Soil sampling has been completed on several of these targets with significant anomalies defined, notably in the Grid 1 target (Figure 25).
Geological maps:
Figure 1: Distribution of Kibalian age greenstone belts with locations of major gold deposits. N.B: DRC and Tanzanian belts separated by younger East African rift. (PDF - 255KB)
Figure 2: District scale geology of Zani-Kodo District (PDF - 338KB)
Figure 3: District scale geology of Zani-Kodo District (PDF - 125KB)
Figure 4: Historical Kodo pit looking northwards (PDF - 119KB)

Figure 5: Zani Kodo Trend showing location of subareas and gold in soil anomaly, September 2013. (PDF - 255KB)
Figure 6: SW-NE cross section through Kodo Main orezone, September 2013. (PDF - 405KB)
Figure 7: Quartz rich ore zone, Kodo Main. (PDF - 132KB)
Figure 8: Results status, Kodo Main, September 2013. (PDF - 275KB)
Figure 9: Oblique view of mineralised wireframes, Kodo Main, September 2013. (PDF - 243KB)
Figure 10: Examples of typical gold occurrences from Kodo. (PDF - 200KB)
Figure 11: Badolite area looking south from Kodo. (PDF - 96KB)
Figure 12: Drilling results, Badolite area. (PDF - 96KB)
Figure 13: Cross section through Badolite zone. (PDF - 194KB)
Figure 14: Oblique view of Badolite and Zani Central orebodies (0.5g/t cut off). N.B. Both open at depth. Grid squares 500m. (PDF - 195KB)
Figure 15: Surface workings in broad zone of sheared BIFs, Zani Central, viewing SSE. (PDF - 157KB)
Figure 16: Cross section through Zani Central target. (PDF - 301KB)
Figure 17: Drilling results at end January 2012, Zani Central target. (PDF - 466KB)
Figure 18: Results to date, Lelumodi area. (PDF - 261KB)
Figure 19: Cross section, Lelumodi area (see Figure 18 for location of section line). (PDF - 110KB)
Figure 20: Drilling status, September 2013, Lelumodi North area. (PDF - 267KB)
Figure 21: Resource progress from 2008 to 2013, Zani Kodo. Points represent resource calculations. (PDF - 89KB)
Figure 22: Exploration triangles, Zani-Kodo project from initial exploration to present. (PDF - 110KB)
Figure 23: Resource progress from 2008 to 2013, Zani Kodo. Points represent resource calculations. (PDF - 290KB)
Figure 24: District scale target areas identified from aeromagnetic data. (PDF - 348KB)
Figure 25: Processed aeromagnetic data, Zani–Kodo district (PDF - 189KB)

Assay Data

Latest assay results (XLS - 1.2MB)