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As the development plan for Wonarah is now for a larger downstream fertiliser operation rather than a DSO operation, Minemakers has recently been focussed upon broader areas of mineralisation, which could be mined at a lower grade as this will be feed to a beneficiation plant. Additionally, should the IHP be adopted, a lower P2O5 ore grade with a higher silica content will be required.
Minemakers' independent geostatistical consultants, MPR Geological Consultants Pty Ltd ("MPR"), were requested to analyse Minemakers' extensive drill data base to re-estimate resources, based on the requirement to feed a beneficiation plant.
The new resource estimates, at a 10% cut-off are as follows:
---------------------------------------------------------------------------- Measured Indicated Measured + Indicated Inferred Mt P2O5% Mt P2O5% Mt P2O5% Mt P2O5%--------------------------------------------------------------------------------------------------------------------------------------------------------Arruwurra 25.7 18.7 27.7 17.8 53.4 18.2 82 16----------------------------------------------------------------------------Main Zone 52.6 21.8 194 17.4 247 18.3 460 18----------------------------------------------------------------------------Total 78.3 20.8 222 17.5 300 18.3 542 18----------------------------------------------------------------------------
The Measured and Indicated Resource categories can be used in due course as the basis for determination of Proven and Probable Reserve estimates as part of the ongoing BFS.
Although it is not certain that future drilling will be successful, infill drilling has the potential to convert a significant portion of the Inferred Resources to higher confidence categories.
As feed to an IHP kiln is likely to be at a lesser grade, resources combined for the two deposits estimated at a 5% cut-off are as follows, and they indicate the very large size of the Wonarah deposit:
---------------------------------------------------------------------------- Measured Indicated Measured + Indicated Inferred Mt P2O5% Mt P2O5% Mt P2O5% Mt P2O5%-------------------------------------------------------------------------------------------------------------------------------------------------------- 82.3 20.2 391 13.2 473 14.4 933 13----------------------------------------------------------------------------
The extent to which mining, metallurgical, infrastructure, permitting, marketing and other financial factors may affect the Mineral Resource Estimates has not yet been established. Mineral Resources that are not Mineral Reserves do not have demonstrated economic validity.
The following table compares the 2012 estimated resources to the previous 2010 estimate. As that latter estimate did not include Measured Resources, the 2012 Measured and Indicated categories were combined for comparative purposes.
MAIN ZONE ARRUWURRA------------------------------------ ------------------------------------ Mt P2O5% Mt P2O5%------------------------------------ ------------------------------------------------------------------------ ------------------------------------November November2011 2011 Indicated 252 18.2 Indicated 51 18.3 Inferred 395 18 Inferred 84 16------------------------------------ ------------------------------------Current Current Indicated 247 18.3 Indicated 53.4 18.2 Inferred 460 18 Inferred 82 16------------------------------------ ------------------------------------------------------------------------ ------------------------------------Differences Differences------------------------------------ ------------------------------------Indicated -2% 1% Indicated 5% 0%------------------------------------ ------------------------------------Inferred 16% 0% Inferred -2% 0%------------------------------------ ------------------------------------
