Ni Laterite Template – Cleaned Corrections TEMPLATE 1D GEOLOGICAL SOCIETY OF THE PHILIPPINES SPECIFIC OUTLINE OF TECHNICAL REPORT FOR EXPLORATION RESULTS AND MINERAL RESOURCES OF NICKEL LATERITE DEPOSITS General Notes: 1. This Outline is for the use of geologists in the minerals industry for reporting Exploration Results and Mineral Resources specifically for Nickel Laterite deposits. It serves to improve the TR-FORM 1 of the Philippine Mineral Reporting Code (“PMRC”) Implementing Rules and Regulations (“IRR”) of 2010 with respect to the abovementioned deposits. 2. In this document, the Current TR-FORM 1 is shown on the left column while the Specific Proposed Revision is shown on the right column. 3. The headings (X.) and sub-headings (X.X) are mandatory sections and sub-sections in the Technical Report; while the bullet points and sub-bullet points are guidance notes relevant to the headings and sub-headings. 4. In the Specific Proposed Revision, changes to the Current Form are shown in red while the guidance notes are shown as indented blue italics when unchanged and as indented red italics when changed or added. Notes to the deletion/revision of some original sections are shown in green. CURRENT FORM 1.0 1.1 1.2 1.3 1.4 1.5 2.0 2.1 2.2 2.3 2.4 SPECIFIC PROPOSED REVISION TITLE PAGE Title of the Report Include Location of the Project and Mining Rights Coverage (in the title) Include Location of Project (in the title) Name and professional designation of each of the CPs Effective date of the Report 1.0 CERTIFICATES AND CONSENTS OF CPs FOR TECHNICAL REPORTS Certificates and Consents of CPs for Technical Reports Scope of Work of each CP involved Reliance on Other Experts indicating therein objective, nature and coverage Signatures of CP 2.0 TITLE PAGE Title of the Technical Report Include Location of the Project and Mining Rights Coverage (in the title) Name and professional designation of each of the CPs Effective date of the Technical Report CERTIFICATES AND CONSENTS OF CPs FOR TECHNICAL REPORTS Certificates and Consents of CPs for Technical Reports Scope of Work of each CP involved Signatures of CP 1 Ni Laterite Template – Cleaned Corrections 3.0 EXECUTIVE SUMMARY 3.0 4.0 4.1 TABLE OF CONTENTS Listing of the contents of the report 4.0 4.2 4.3 4.4 Listing of Figures and Tables Listing of photographs if applicable Listing of attachments or appendices 5.0 5.1 INTRODUCTION Who commissioned the report preparation and to whom it should be submitted Purpose for which the report was prepared Scope of Work or Terms of Reference Duration of the preparation, including field visits and verification Members of the technical report preparation team 5.2 5.2 5.3 5.4 5.0 5.5 5.6 Host company representative. Compliance of report with PMRC 6.0 RELIANCE ON OTHER EXPERTS OR CPs If a CP relied on the report, opinion, statement of a legal or another expert, who is not a CP on matters pertaining to the mineral project, the CP may include a disclaimer of responsibility on such information incorporated in the technical report. 6.0 TENEMENT AND MINERAL RIGHTS Description of mineral rights Location of area, Barangay, Municipality, Province Coordinate locations as per MGB 7.0 6.1 7.0 7.1 7.1.1 7.1.2 7.1.3 Number of claims and hectares covered by EP/MPSA/FTAA mode of EXECUTIVE SUMMARY TABLE OF CONTENTS Listing of the contents of the Technical Report Listing of Figures and Tables Listing of photographs if applicable Listing of Appendices including data provided by the Issuer (Note: “attachment” is the same as “appendix” and therefore removed to avoid ambiguity) INTRODUCTION Who commissioned the Technical Report preparation and to whom it should be submitted Purpose for which the Technical Report was prepared Scope of Work or Terms of Reference Duration of the preparation, including field visits and verification Members of the Technical Report preparation team Issuer’s representative Compliance of Technical Report with PMRC RELIANCE ON OTHER EXPERTS OR CPs If a CP relied on the report, opinion, statement of a legal or another expert, who is not a CP on matters pertaining to the mineral project, the CP may include a disclaimer of responsibility on such information incorporated in the Technical Report TENEMENT AND MINERAL RIGHTS Description of mineral rights o Location of area, Barangay, Municipality, Province o Coordinate locations as per Mines and Geosciences Bureau (MGB) o Number of tenements and hectares covered 2 Ni Laterite Template – Cleaned Corrections agreement 7.1.4 Type of permit or agreement with government 7.2 7.3 7.4 7.5 7.6 7.6.1 7.6.2 o History of mineral rights Current owners of mineral rights Validity of current mineral rights (state date of validity of rights at the date of reporting) Agreements with respect to mineral rights. In order to make clear the net revenue that may be derived from the project, include the following: Royalties, taxes, advances and similar payments paid or to be paid by the company to the mineral rights holder, joint venture partner(s), government, Indigenous People, local government, and others Receivables and payable sums to the company and mineral rights holder. Type of permit or agreement with government - Exploration Permit (EP), Mineral Production Sharing Agreement (MPSA), Financial or Technical Assistance Agreement (FTAA) o Tenement map History of mineral rights Current owners of mineral rights Validity of current mineral rights (state date of validity of rights at the date of reporting) Agreements with respect to mineral rights In order to make clear the net revenue that may be derived from the project, include the following: o Royalties, taxes, advances and similar payments paid or to be paid by the Issuer to the mineral rights holder, joint venture partner(s), government, Indigenous People, local government, and others o Receivables and payable sums to the Issuer and mineral rights holder 8.0 GEOGRAPHIC FEATURES 8.0 8.1 Location and accessibility 8.1 8.2 Topography, physiography, drainage and vegetation 8.2 8.3 Climate, population 8.4 Land Use 8.5 Socio Economic Environment 8.6 Environmental features GEOGRAPHIC FEATURES Location and Accessibility Map showing geographic features Physiography, Climate and Vegetation Topography Drainage (Note: “Climate” has been included in section 8.2 and “Population” included in section 8.4 as “Demography”) 8.3 8.4 8.5 Land Use and Infrastructure Socio-Economic Environment Demography Environmental Features 3 Ni Laterite Template – Cleaned Corrections 9.0 9.1 PREVIOUS WORK History of previous work 9.2 Briefly describe essential work done by previous workers Conclusions of each of the previous workers 9.3 10.0 10.1 9.0 PREVIOUS WORK History of previous work o Arrange significant historical/previous work and discussion chronologically (e.g., by date and company) from oldest to most recent work (e.g., use table listing) o Indicate sources of information (references) by bibliographic citation (personal communication or any previous published/unpublished report) Briefly describe essential work done by previous workers Conclusions of each of the previous workers HISTORY OF PRODUCTION Production history of district and area, if any Which areas were mined within the subject tenement area General description of mining, ore beneficiation, concentrate, mineral product market Tonnage mined and sold 10.0 HISTORY OF PRODUCTION Production history of district and area Which areas were mined within the subject tenement area General description of mining, ore beneficiation, concentrate, mineral product market Production statistics o Whenever available, cite historical annual production figures such as tonnage and grade 11.0 REGIONAL GEOLOGY 11.1 REGIONAL AND DISTRICT GEOLOGY Regional Geologic Setting 11.1 Regional Geological Setting Regional Geological Map 11.2 Stratigraphy 11.2 Regional Stratigraphy Regional Geological Section(s) 11.3 Structural Geology 11.3 Regional Structures 11.4 Mineralization location(s) and general description 11.5 Historical Geology 10.2 10.3 10.4 11.0 11.4 Prospects and/or Deposits Mineralization location(s) and general description (Note: Historical Geology is not relevant to PMRC technical reporting) 4 Ni Laterite Template – Cleaned Corrections 12.0 12.1 12.2 MINERAL PROPERTY GEOLOGY Geological work undertaken by the company in the property, to include scale of mapping and laboratory tests undertaken for the samples Rock types and their geological relationships 12.0 o 12.3 Description of various geological structures and their trends 13.0 13.2 MINERALIZATION IN THE MINERAL PROPERTY Overview of the mineralization (as per reference reports) Type of mineralization as mapped 13.3 Style of mineralization 13.4 Wall rock alteration, paragenesis 13.5 13.6 Geological structures Localization of the deposit 13.7 Length, width, depth of mineralization 13.1 MINERAL PROPERTY GEOLOGY Local geological setting of the Mineral Property 13.0 Rock types and their geological relationships o Local Stratigraphy – lithological definition, extent and correlation with regional rock formation. Show stratigraphic column o Petrographic studies o Age dating Local Structures o Description of various geological structures and their trends, e.g., Lineaments and Faults Geological model as shown in Map, Sections and Level Plans MINERALIZATION IN THE MINERAL PROPERTY Overview of the Mineralization Type(s) of Mineralization o Mineralization domain types if more than one (i.e. Limonite, Saprolite, etc) Style of Mineralization o Mineral Deposit Model showing Mineralization patterns and grade distribution shown in Sections, Level Plans and/or Isopach Map(s) o Ore/gangue mineralogy, e.g., in Limonite and Saprolite o Other mineralogical studies – SEM/microprobe, XRD, etc. (Note:”Wall rock alteration, paragenesis” is not applicable to Nickel Laterite Deposits) Geological structures Localization of the deposit and continuity of Mineralization Mineralization controls – e.g., lithological, supergene oxidation/enrichment, etc. Geometry of the Mineralization o Length, width, and depth of 5 Ni Laterite Template – Cleaned Corrections 13.8 13.9 Element grade levels and patterns Development of “ore shoots” 13.10 Continuity of mineralization 14.0 EXPLORATION 14.1 Geological work (by issuer) 14.1.1 Geological data generated from mapping and surface sampling 14.1.2 Geological map and sections 14.1.3 Sample location map 14.2 Surface sampling (Refer to PMRC Table 1) 14.2.1 Outcrop sampling (grab or measured) 14.2.2 Trench sampling (measured vertical, horizontal, etc) 14.2.3 Test pit sampling (measured vertical, horizontal, etc) Mineralization Element grade levels and patterns (Note: section 13.9 – “Development of “ore shoots” deleted since applicable only to Vein-type) (Note: section 13.10 - “Continuity of mineralization” is lumped with “Localization of the deposit” above) 14.0 14.1 Geological work (by Issuer) Geological data generated from mapping and sampling Geological Map, Sections and Level Plans o Isopach Maps (for Limonite and Saprolite) (Note: “Sample location map” is inserted under section 14.2) 14.2 Sampling (Refer to PMRC Table 1) 14.4 Exploration Geochemistry (by issuer or previous work) 14.4.1 Describe geochemical survey type: drainage, soil, rock, vegetation, bogs, etc. 14.4.2 Describe sampling and analytical methods employed 14.4.3 Define background, threshold and anomaly levels for the elements determined 14.4.4 Apply synthesis and interpretive techniques (for single and multi EXPLORATION 14.3 In situ sampling (measured) o Channel sampling o Bulk sampling Trench sampling (measured vertical, horizontal, etc.) Test pit sampling (measured vertical, horizontal, etc.) Sample location Map(s) Exploration Geochemistry (by Issuer or previous work) Describe geochemical survey type: drainage, soil, rock, vegetation, bogs, etc. Describe sampling and analytical methods employed o Laboratory(ies) utilized o Quality Assurance/Quality Control measures employed o Detection limits of analytical method(s) Describe background, threshold and anomaly levels for the elements determined Describe synthesis and interpretive techniques (for single 6 Ni Laterite Template – Cleaned Corrections element) to bring out significant geochemical features related to mineralization. 14.4.5 Describe geochemical anomalies detected 14.4.6 Relate geochemical findings to geology and mineralization. 14.5 14.5.1 14.5.2 14.5.3 14.5.4 Applied Geophysics (by issuer or previous work) Describe geophysical method used and objective of the survey Describe the whether a geophysical contractor, independent consultant or an inhouse staff was engaged in the conduct of the geophysical survey Describe equipment used, its limitations and the survey parameters adopted Describe how it was carried out (design of stations with respect to mineralization trends) 14.5.5 Describe interpretive tools used 14.4 14.5.6 Discuss essential results with respect to the objective 14.5 and multi element) to bring out significant geochemical features related to Mineralization. Describe geochemical anomalies detected with use of maps Relate geochemical findings to Geology and Mineralization Applied Geophysics (by Issuer or previous work) Describe geophysical method(s) used and objective of the survey Describe whether a geophysical contractor, independent consultant or an in-house staff was engaged in the conduct of the geophysical survey Describe equipment used, its limitations and the survey parameters adopted Describe how it was carried out (design of stations with respect to Mineralization trends) o Describe location method(s) of survey grid or tracks Describe the data processing and interpretive tools used Describe geophysical anomalies detected with use of Maps, Sections and Level Plans, if any Relate geophysical findings to Geology and Mineralization Remote Sensing (by Issuer or previous work), if any Describe Remote Sensing method(s) used and objective of the survey(s) Describe whether a remote sensing contractor, independent consultant or an in-house staff was engaged in the conduct of the remote sensing survey Describe equipment used, its limitations and the survey parameters adopted Describe how it was carried out (design of stations with respect to Mineralization trends Describe the data processing and interpretive tools used 7 Ni Laterite Template – Cleaned Corrections 14.3 Drilling and sampling (Refer to PMRC Table 1) 14.3.1 Describe type of drilling program (DDH, RC drilling, auger, etc) 14.6 14.3.2 Drill site spacing, depth of drilling 14.3.3 Describe Core logging, (lithological, core recovery, specific gravity, geotechnical, etc) 14.3.4 Drill sample method and interval (regular interval or composite) 14.3.5 Drill core photographs 14.6 Sample Preparation, Analyses and Security 14.6.1 Dispatch method 14.6.2 Preparation and assay facility (inhouse, contracted or commercial) 14.6.3 Sample preparation (description) 14.6.4 Analytical methods used (describe types of methods employed and effective grade 14.7 Describe remote sensing features with use of Maps Relate remote sensing findings to Geology and Mineralization Drilling and Sampling (Refer to PMRC Table 1) Describe type of drilling program o Types - DDH, auger, etc. o Drilling contractor(s) o Drilling equipment o Drill diameter size(s) o Downhole surveys and instrument used o Drillhole collar survey Drill site spacing, depth of drilling, hole orientation, number of drill holes and meterage Describe logging o Geological logging (lithological, weathering, Mineralization, etc.) o Geotechnical logging (drill diameter size, Rock Quality Designation (RQD), no. of fractures, rock strength etc.) o % Drill Recovery Bulk density measurements Drill Sampling method and interval o regular interval or composite o whole core, half core, quarter core Drill core photography Sample Preparation, Analyses and Security Sample Dispatch, Security and Chain of Custody o Site Security – location, personnel and security protocols Preparation and assay facility o In-house, contracted or commercial Sample preparation o Description and procedures flow sheet Analytical methods used o Describe types of methods employed and effective grade 8 Ni Laterite Template – Cleaned Corrections range) 14.6.5 Quality Assurance /Quality Control of sample preparation and analysis (demonstrate with data, the precision and accuracy of analytical determinations from internal and external control standards, and check assays) 14.6.6 Statement of the CP on the quality of sample security, preparation and analysis 15.0 MINERAL RESOURCES ESTIMATE 15.1 Database used in the estimation of resources 15.2 Integrity of database 15.3 Data verification and validation (limitations) 15.4 cut-off grades used in the estimations 15.5 Mineral Resource estimation method range Quality Assurance /Quality Control of sample preparation and analysis o Demonstrate with data, the precision and accuracy of analytical determinations from internal and external control standards, duplicates, blanks and check assays Laboratory audits Statement of the CP on the quality of sample security, preparation and analysis 15.0 MINERAL RESOURCE ESTIMATE State historical Mineral Resource estimate(s), if available Database used in the current estimation of Mineral Resources o Current and/or historic database o Type of sample database – drillcore, trench channel samples o Survey data o Assay data o Bulk density, moisture and swell factor data Integrity of database o Drill hole database and software used o Accuracy of drill collar locations, drill orientation and downhole surveys o Drill diameter sizes and recoveries o Other physical measurements relevant to Mineral Resource estimation, eg. bulk density, moisture, swell factor etc. Data verification and validation o Verification of drill logs and assays o Validation of historical data used in the current Mineral Resource estimates (Note: “cut-off grades used in the estimations” is a sub-bullet point under “Mineral Resource estimation method used”) o Resource domains used – e.g., Limonite vs. Saprolite, etc. Mineral Resource estimation method 9 Ni Laterite Template – Cleaned Corrections used 15.6 Mineral Resource categories used (PMRC/JORC) 15.6 Mineral Resources estimates 16.0 INTERPRETATION AND CONCLUSIONS Synthesis of all the data Discuss the adequacy of data, overall data integrity and areas of uncertainty. Overall conclusions by the CP The CP must discuss whether the completed project met the objectives set forth. 16.1 16.2 16.3 16.4 16.0 used o Basic statistics of the raw data (mean, minimum, maximum, standard deviation, normal or lognormal population, etc.) o Conventional methods – triangular, polygonal, rectangular o Computer-based geostatistical methods using wireframes, domains, variography, block modeling etc. o Top cut and cut-off grade(s) used in the estimations Mineral Resource categories used o Bases for categorization o Separate resources of Limonite from Saprolite Mineral Resources estimates o If there is a previous Mineral Resource estimate, explanation of variance can be added o Validation of Mineral Resource Model and Estimate - e.g., manual inspection of block model grades compared to actual or composite grades of drillholes and /or underground workings plotted in Sections and/or Level Plans o Specify the swell factor, bulk density, moisture content, and drill hole spacing considered for each resource classification o Quantity should be in wet metric tonnes (WMT) and dry metric tonnes (DMT) o Indicate average Ni, Fe and Co content in % dry basis INTERPRETATION AND CONCLUSIONS Synthesis of all the data Discuss the adequacy of data, overall data integrity and areas of uncertainty Overall conclusions by the CP The CP must discuss whether the completed project met the objectives set forth 10 Ni Laterite Template – Cleaned Corrections 17.0 17.1 RECOMMENDATIONS Based on the Summary and Conclusions, a series of recommendations are made to guide management on the course of action to take. Be it positive or negative, the CP should ascertain that there is adequate reason for such recommendations. 17.0 RECOMMENDATIONS Based on the Conclusions, a series of recommendations are made to guide management on the course of action to take. Be it positive or negative, the CP should ascertain that there is adequate reason for such recommendations 18.0 18.1 REFERENCES List of references used, whether published or unpublished 18.0 REFERENCES List of references used, whether published or unpublished 19.0 19.1 19.2 APPENDICES List of tables List of figures 19.0 APPENDICES 19.3 19.4 List of Photographs Database used 19.5 Other Relevant Data Maps Sections and Level Plans Photographs (Note: “Database used” is already taken care of under “Other Relevant Data”) Other Relevant Data 11