Iron Ore 152-158 St Georges Terrace Perth 6000 Western Australia T + 61 (8) 9327 2000 Memo From Steven Lee Department Development and Technical Projects To Melinda Brand CC Rosalind Green Reference Yandi Geochemistry Date 08 February 2012 Number of pages 16 Preliminary results of geochemical characterisation of Yandicoogina samples Purpose and Scope This memo summarises the results of preliminary solid extra element analysis, short term liquid extract/leach testing and phase 1 acid base accounting (ABA) completed on samples obtained from the Yandi Junction South West (JSW) drilling programme completed in June 2011 and grab samples selected by mine geology in 2009 and 2011 from Junction Central (JC) and Junction South East (JSE) (Appendix 1). This follows on from grab samples collected from the active JC and JSE pits. This sampling was undertaken to comply with the RTIO Mineral Waste Management Plan. A total of 274 samples were sent off for solid geochemistry and 188 underwent short term leach testing. Material representing the following strand-tag groups were collected for analysis: • Alluvials (ALL); • Basal clay conglomerate (BCC); • Eastern clay conglomerate (ECC); • Goethite vitreous lower (GVL); • Goethite vitreous upper (GVU); • Limonitic goethite CID (LGC); • Weathered CID (WCH); and • Weeli Wolli Formation (WW). More detailed descriptions of these strand-tag groups are given in Appendix 3. Methodology In 2009 and in 2011 Mine geology collected 40 grab samples from JC and JSE. These samples were opportunistically selected from areas where mining was occurring covering material that is representative of ALL, BCC, ECC, GVL, GVU, LGC, WCH and WW. The 2009 samples were dispatched to Ultra Trace laboratory in Canning Vale for the solid extra element and short term liquid extract tests. The solid extra element analysis included Ag, B, Be, Cd, F, Hg, Mo, Se, Th and U. The 2011 samples were dispatched to ALS Chemex in Malaga for solid geochemical analysis and liquid extracts and phase 1 ABA testing. Continues Page 2 of 16 The Grab samples have been taken from Junction Central and Junction South East specifically Phil’s Creek, Hairpin North, Waterstand North, Marsh North and South and Union North and Central (Appendix 1). During March through to April 2011, RC drilling was undertaken by Resource Geology Evaluation on the Yandi Junction SW deposit. Samples were selected at random from the strand-tag groups representing ALL, BCC, ECC, GVL, GVU, LGC, WCH and WW. These samples were sent to the Ultra Trace laboratory in Canning Vale for analysis of Fe, Si, Al, P, Ti, Ca, Mg, K, As, Ba, Cl, Co, Cr, Cu, Na, Ni, Pb, Sn, Sr, V, Zn, Zr, S and Loss on ignition. Once the results were received strand-tag interpretation was completed for the drillholes and intervals were selected to undergo extra element solid analysis and short term liquid extract/leach test (for details of the test methods see Appendix 2). Additional to this, 33 samples underwent phase 1 acid base accounting (ABA) testwork (AMIRA, 2002) including acid neutralising capacity (ANC) and net acid generation (NAG) tests at ALS Chemex. Results The median solid geochemistry assay for each element is compared against the mean crustal abundances outlined in Bowen (1979). From this the global abundance index can be calculated to determine to what level an element is either elevated or enriched compared to these crustal abundances. Table 1 below summarises the results and the full details are included in Appendix 4. Results indicate: • All strand-tag units are either enriched or elevated in Fe, As and Sn; • ECC contains elevated V; • WW contains elevated Sb; and • The grab samples contain elevated levels of Ba and Se. Table 1 Summary of GAI values for enriched and elevated elements for Yandi samples Elevated Elevated (GAI ≥ 3) Strand-tag (GAI = 1 or Group Fe As 2) ALL BCC ECC GVL GVU LGC WCH WW GRAB 3 3 3 3 3 3 3 3 3 4 4 3 3 3 3 Fe,Sn Fe, Sn Fe,Sn,V Sn Sn Sn Sn Sn,Sb Ba,Sn,Se Although these elements are either enriched or elevated that does not necessarily mean the element may mobilise upon contact with water. The results of the short term leach tests are given in Table 2. These results have been compared against both background ground water (taken from mean value + 10% from Yandi water bores) and ANZECC water trigger values for Aquatic ecosystems (due to the presence of stygofauna and other aquatic animals). These have been highlighted in the table (where the lower detection limit is greater than the trigger value this also has been highlighted). The elements that exceed these values include: Ag, As, Cr, Cu, F, Hg, Ni and Pb. In the majority of cases the exceedance is due to the fact that the trigger value is less than the lower detection limit. Full details of the comparison are given in Appendix 4. Continues Page 3 of 16 Table 2 Summary of short term leach test data (median values used) Lower Detection Limit pH_LIQUID 0.1 SO4_ICP_mg_L 0.2 EC_LIQUID µS/cm 50 ALK_LIQUID 20 HCO3_mg_L 20 AG_ICP_mg_L 0.001 AL_ICP_mg_L 0.01 AS_ICP_mg_L 0.005 BA_ICP_mg_L 0.01 B_ICP_mg_L 0.01 CA_ICP_mg_L 0.05 CD_ICP_mg_L 0.0002 CL_COL_mg_L 2 CO_ICP_mg_L 0.01 CR_ICP_mg_L 0.002 CU_ICP_mg_L 0.002 F_SIE_mg_L 1 FE_ICP_mg_L 0.01 HG_FIMS_mg_L 0.001 K_ICP_mg_L 0.1 MG_ICP_mg_L 0.01 MN_ICP_mg_L 0.01 MO_ICP_mg_L 0.005 NA_ICP_mg_L 0.1 NI_ICP_mg_L 0.01 PB_ICP_mg_L 0.01 SE_ICP_mg_L 0.005 SB_ICP_mg_L 0.001 U_ICP_mg_L 0.001 ZN_ICP_mg_L 0.005 Element/oxide_ Analysis_Units ALL BCC ECC GVL GVU LGC WCH WW 6.8 8.4 132 40 40 0.001 0.22 0.005 0.03 0.1 9.3 0.0002 10 0.01 0.002 0.005 1 0.18 0.001 5.5 3.8 0.02 0.001 6.8 0.01 0.01 0.005 0.001 0.001 0.01 6.7 6.5 74.5 20 20 0.001 0.105 0.005 0.01 0.13 1.3 0.0002 13 0.01 0.002 0.002 1 0.255 0.001 1.45 1.455 0.01 0.005 12.45 0.01 0.01 0.005 0.001 0.001 0.005 7.2 12.2 265 80 80 0.001 0.05 0.005 0.03 0.31 11.8 0.0002 16 0.01 0.002 0.002 1 0.07 0.001 3.4 9.1 0.01 0.005 25.2 0.01 0.01 0.005 0.001 0.001 0.005 6.9 11.2 107 20 20 0.001 0.01 0.005 0.01 0.09 3.35 0.0002 10 0.01 0.002 0.002 1 0.07 0.001 1.7 3.48 0.01 0.005 12.5 0.01 0.01 0.005 0.001 0.001 0.005 6.8 11.8 109 20 20 0.001 0.01 0.005 0.01 0.09 3.45 0.0002 10 0.01 0.002 0.002 1 0.03 0.001 2.1 2.83 0.01 0.005 8.5 0.01 0.01 0.005 0.001 0.001 0.005 6.8 19.2 235 20 20 0.001 0.2 0.005 0.01 0.12 7.4 0.0002 40 0.01 0.002 0.004 1 0.14 0.001 2.1 7.33 0.01 0.005 28.7 0.01 0.01 0.005 0.001 0.001 0.005 6.5 15 131 20 20 0.001 0.04 0.005 0.02 0.12 4.7 0.0002 10 0.01 0.002 0.002 1 0.08 0.001 2.4 2.52 0.01 0.005 14.2 0.01 0.01 0.005 0.001 0.001 0.005 6.8 4.8 84.5 20 20 0.001 0.03 0.005 0.01 0.11 2.525 0.0002 16 0.01 0.002 0.002 1 0.07 0.001 1.4 2.56 0.01 0.005 11.95 0.01 0.01 0.005 0.001 0.001 0.005 Continues Page 4 of 16 A total of 85 Grab and drillhole samples were also sent to ALS Chemex for phase 1 ABA testing. The results are summarised in Table 3. Total sulfur was analysed using the LECO method and gave results ranging from below the detection limit of 0.01% through to the maximum of 0.1%. The calculated maximum potential acidity (MPA) for these samples range from less than 0.306 kg H2SO4/t through to 3.06 kg H2SO4/t. The lowest acid neutralisation capacity measured for these samples was <0.5 kg H2SO4/t through to a maximum of 145. In most cases the neutralising capacity of the samples was quite low. The results of the single addition NAG test ranged from pH 5.4 to 10.9, with an average of around pH 6.8. All these results indicate that the samples that have undergone phase 1 ABA testing are non-acid forming (NAF) and in most cases there is excess neutralising capacity to neutralise all of the acid that may be generated by the sample. Table 3 Summary statistics of phase 1 ABA testing Unit Measure Mean Minimum Maximum Median Total S (LECO) MPA ANC NAG % 0.02 <0.01 0.1 0.01 kg H2SO4/t 0.612 <0.306 3.06 0.306 kg H2SO4/t 7.77 <0.5 145 1.3 pH 6.89 5.4 10.9 6.7 of Conclusions and Recommendations The results indicate that soluble metals/metalloids are generally below the trigger values outlined in the ANZECC water guidelines and Yandi background water values. Where there are exceedances, the trigger values (normally associated with ANZECC water guidelines for 95% protection of freshwater species) were lower than the detection limits used in the analysis. All samples were above drinking water trigger values and stock water guideline trigger values. Continues Page 5 of 16 References AMIRA International. (2002). ARD Test Handbook. Project P387A Prediction and Kinetic Control of Acid Mine Drainage, Ian Wark Research Institute and Environmental Geochemistry International Pty Ltd. Bowen, H.J.M. (1979), Environmental Chemistry of the Elements, Academic Press, London. Lundy-Stern, T. and Green, R. (2007), Yandicoogina ARD and Geochemical Risk Assessment (RTIO-PDE-0033672). Continues Page 6 of 16 Appendix 1 Sample Location Map Continues Page 7 of 16 Hairpin East 3 Grab Samples Phil’s Creek 9 Grab Samples Junction South West 151 drillhole samples Waterstand North 8 Grab Samples Junction South Junction South East Junction Marsh North 6 Grab Samples Marsh South 3 Grab Samples Union North 9 Grab Samples Union Central 3 Grab Samples Figure 1 Location of samples collected across the various Yandicoogina Deposits Continues Page 8 of 16 Appendix 2 Testing methods • Multi-elemental solid analysis Grind sample to ~200 mesh (~50 μm) or finer and digest with aqua regain, HNO3/perchloric/HF (or make LiBO2 (lithium meteorite) bead by mixing sample with LiBO2 in Pt crucible, heat to 1000oC, dissolve in HNO3/HF); analyse by Inductively Coupled Plasma Atomic Emission Spectrophotometry (ICP-AES), Inductively Coupled Plasma Mass Spectrometry (ICP-MS) (for trace metals), Atomic Absorption Spectroscopy (AAS), Neutron Activation Analysis (NAA), or X-Ray Fluorescence (XRF) (for semiquantitative analysis) for elements of interest (Maest et. al. 2005). Elements include: Ag, B, Be, Cd, F, Hg, Mo, Se, Th, U • Multi-elemental liquid extract Water extracts are conducted on a 1:2, solid to deionised water ratio (w/w). The crushed portion of the sample (-4 mm) is used in the test and not pulverised samples. The sample/water mixture is mixed thoroughly, placed into an automatic tumbler, and left overnight (for approximately 16 hours), before the liquor is siphoned off and the pH and EC measured. The liquor is then filtered (45 µm), acidified using concentrated HNO3 before being analysed in a multi-element analysis. Elements of interest include: pH, EC, SO4, Al, As, Fe, Mn, Cu, Zn, Ca, K, Mg, Cl, Na, HCO3-, Co, Cr, Pb, Ni, F, Hg, Ba, B, Sb, Se, U, Mo, Cd, Ag Continues Page 9 of 16 Appendix 3 Yandicoogina Stratigraphy Taken from Lundy-Stern and Green (2007) Continues Page 10 of 16 Appendix 4 Geochemical Enrichment Continues Page 11 of 16 Table 4 Summary of the Global Abundance Index of samples selected as part of this study Element/oxide_ Analysis_Units Crustal abundance mg/kg FE_XRF_pct SIO2_XRF_pct AL2O3_XRF_pct P_XRF_pct TIO2_XRF_pct CAO_XRF_pct MGO_XRF_pct K2O_XRF_pct ARS_XRF_ppm BA_XRF_ppm CL_XRF_ppm CO_XRF_ppm CR_XRF_ppm CU_XRF_ppm NA_XRF_ppm NI_XRF_ppm PB_XRF_ppm SN_XRF_ppm SR_XRF_ppm V_XRF_ppm ZN_XRF_ppm ZR_XRF_ppm S_XRF_pct AG_ICP_ppm B_ICP_ppm BE_ICP_ppm CD_ICP_ppm F_SIE_ppm HG_ICP_ppm MO_ICP_ppm SB_ICP_ppm SE_ICP_ppm TH_ICP_ppm U_ICP_ppm 41000 GRAB Mean Median 3 ALL Minimum 3 Maximum 3 Mean Median 2 2 BCC Minimum 1 Maximum Mean 3 Median 3 3 Minimum 2 Maximum 3 592557 309886 1000 1 9343 1 57367 37540 50593 2 500 3 1 3 5 6 3 3 2 4 4 3 2 5 130 370 1 2 100 50 1 23000 80 14 2 1 1 1 1 1 2 2 2 1 4 2 2 2 1 3 3140 2 160 1 2 1 1 1 75 190 260 1 85 22 1 8061 0.4 2 10.2 1.7 0.42 102 2 2 20 1 1 Continues Page 12 of 16 Table 4 continued Element/oxide_ Analysis_Units Crustal abundance mg/kg FE_XRF_pct SIO2_XRF_pct AL2O3_XRF_pct P_XRF_pct TIO2_XRF_pct CAO_XRF_pct MGO_XRF_pct K2O_XRF_pct ARS_XRF_ppm BA_XRF_ppm CL_XRF_ppm CO_XRF_ppm CR_XRF_ppm CU_XRF_ppm NA_XRF_ppm NI_XRF_ppm PB_XRF_ppm SN_XRF_ppm SR_XRF_ppm V_XRF_ppm ZN_XRF_ppm ZR_XRF_ppm S_XRF_pct AG_ICP_ppm B_ICP_ppm BE_ICP_ppm CD_ICP_ppm F_SIE_ppm HG_ICP_ppm MO_ICP_ppm SB_ICP_ppm SE_ICP_ppm TH_ICP_ppm U_ICP_ppm 41000 ECC Mean Median 2 2 GVL Minimum 1 Maximum 3 Mean Median GVU 3 3 Minimum 3 Maximum 3 4 4 2 4 Mean 3 Median 3 Minimum 3 Maximum 3 4 4 2 4 592557 309886 1000 1 9343 57367 37540 50593 2 3 3 2 500 130 4 1 2 1 370 100 1 50 23000 80 14 2 2 2 1 1 2 4 2 2 2 3 2 2 2 4 3140 160 1 75 190 260 1 85 22 1 8061 0.4 10.2 1.7 0.42 102 20 1 1 Continues Page 13 of 16 Table 4 continued Element/oxide_ Analysis_Units Crustal abundance mg/kg FE_XRF_pct SIO2_XRF_pct AL2O3_XRF_pct P_XRF_pct TIO2_XRF_pct CAO_XRF_pct MGO_XRF_pct K2O_XRF_pct ARS_XRF_ppm BA_XRF_ppm CL_XRF_ppm CO_XRF_ppm CR_XRF_ppm CU_XRF_ppm NA_XRF_ppm NI_XRF_ppm PB_XRF_ppm SN_XRF_ppm SR_XRF_ppm V_XRF_ppm ZN_XRF_ppm ZR_XRF_ppm S_XRF_pct AG_ICP_ppm B_ICP_ppm BE_ICP_ppm CD_ICP_ppm F_SIE_ppm HG_ICP_ppm MO_ICP_ppm SB_ICP_ppm SE_ICP_ppm TH_ICP_ppm U_ICP_ppm 41000 LGC Mean Median 3 3 WCH Minimum 1 Maximum 3 Mean Median 3 3 WW Minimum 3 Maximum Mean 3 Median 3 3 Minimum 1 Maximum 3 592557 309886 1 1 1000 9343 57367 37540 50593 2 3 3 2 4 3 3 2 4 3 3 2 4 500 1 130 370 100 1 50 23000 1 80 14 2 2 2 2 3 2 2 2 3 2 2 2 1 3 3140 1 1 160 75 190 260 1 85 22 1 8061 0.4 10.2 1.7 0.42 102 20 1 1 1 2 Continues Appendix 5 ANZECC water guideline trigger values and Yandi background groundwater chemistry Page 14 of 16 Continues Page 15 of 16 Table 5 various trigger and background ground water (GW) values used Freshwater Aquatic Mean Yandi Alluvials GW + 10% Mean Yandi CID GW +10% Mean Yandi WW GW +10% 6 – 7.5 6.6 6.5 6.8 SO4 55 55 47 EC 968 921 948 Hardness 311 361 310 Alkalinity 224 263 pH Ag 0.00005 Al 0.055 0.1 0.077 As 0.013 0.0025 0.0021 0.131 0.119 0.283 0.324 51 55 0.0007 0.0008 137 114 Ba B 0.37 Ca Cd 0.0002 Cl 48 109 Co Cr 0.001 0.012 0.0064 Cu 0.0014 0.012 0.0045 F 0.338 0.509 Fe 0.371 0.45 0.0001 0.0001 K 8 8 11 Mg 46 55 46 0.793 1.807 Mo 0.026 0.021 Na 84 71 Hg Mn 0.00006 1.9 Ni 0.011 Pb 0.0034 Se 0.011 0.0028 0.0036 0.004 0.066 0.036 Sb U Zn 0.008 79 Continues Page 16 of 16