AN EVALUATION OF THE MUIRTON DIAMOND PROJECT HERBERT DISTRICT, NORTHERN CAPE PROVINCE By R.Cooke BSc.Hons. Pr.Sci.Nat. Robert Cooke Mineral Consultants Consulting Geologists Table of Contents 1. INTRODUCTION 2. GEOLOGY 3. EXPLORATION RESULTS 3.1 Geophysical Survey 3.2 Drilling and Pitting 3.3 Estimated Size of Deposits 4. RESULTS OF TRIAL MINING 5. CONCLUSIONS AND RECOMMENDATIONS 1. INTRODUCTION This report covers an evaluation of the diamond potential of the Muirton Project, situated on the farm Muirton which lies on the west bank of the Vaal River between Schmidtsdrift and Delportshoop, Northern Cape Province. The study was requested by Mr Carlos Aranjo of Regal Royal Developments (Pty) Limited and is based on a review of all prospecting and mining data and two site visits on 28 May and 29 September 1998. 2. GEOLOGY Alluvial diamonds are found in gravel deposits associated with the ancient Vaal River drainage system. The gravels in this general area have been deposited on bedrock comprising andesitic lava of the Allanridge Formation (age about 2 600 million years), sedimentary beds comprising quartzite, dolomite, limestone and shale of the Black Reef and Schmidtsdrift Formations (age about 2 300 to 2 500 million years) and shales and tillite of the Dwyka Formation (age about 350 million years). In the Muirton area the bedrock consists mainly of shales of the Dwyka Formation. Valleys coinciding with the present Vaal and Orange Rivers were formed by glaciers during Pre-Karoo times. Alluvial diamonds were subsequently deposited along these valleys during the Quaternary Period (age about 1 million years) when diamonds, eroded from kimberlite pipes and fissures, were transported by the ancient Vaal River drainage system. At Muirton alluvial diamonds are associated with: i. A palaeo channel (Deep Structure) formed in an ancient river channel. Exceptionally high-grade gravels are usually found in the deeper sections of such channels. ii. Terrace Deposits occurring on the flanks of ancient or recent river valleys. These are formed when the river finds a temporary base level. The thickness of the gravel varies widely from a single layer of pebbles to deposits filling major irregularities in the floor. The gravels consist mainly or large boulders or lava (Allanridge Formation) quartzite, and dolerite in a fine matrix of small pebbles and sand. Most or the gravels have been calcretized to varying degrees and clay is present in places. iii. Channel deposits in the present Vaal River which has a total length of 2 km on the Muirton property. Gravels are generally round in the deeper parts of the river and may be very rich locally. Areas of enrichment are usually associated with alluvial traps such as bedrock irregularities, rock bars, plunge pools and the presence or large boulders. These unstratified gravel deposits consist of well-rounded, compact boulders and pebbles of Ventersdorp (Allanridge Formation) lava, quartzite, silicified shale and agate set in a matrix of fine- to medium-grained river sand. These deposits on Muirton have been mined in the past. However, diamonds tend to be moved during floods and re-deposited in favourable alluvial traps. These areas could then be re-examined for diamond recovery. 3. EXPLORATION RESULTS 3.1 Geophysical Survey A detailed ground magnetic survey of the Muirton property was conducted by Dr. G.J. Greeff of Stellenbosch in February 1997. Geomagnetic field values in nanoteslas were recorded at ten metre intervals along eastwest lines at 100 m intervals Readings were also taken along two lines 100 m apart and parallel to the western boundary. A datum value of 27 900 nanoteslas was chosen as a base or reference in order to reduce the measured field values to more manageable readings. The following is a summary of the main results or this survey: i. The Deep Structure, located by boreholes AAB/56 and AB/6 drilled to depths of 32 and 30 metres respectively, consistently gave lower than average magnetic readings. It was concluded that this low magnetic signature is probably caused by a blanketing effect exercised by the thick layers of non-magnetic coarse- and finegrained river sand which lies within the depression. ii. An elongated anomaly of high magnetic readings was located in the eastern half of the property. The zone trends in a north-easterly direction and could be an indication of an as yet undiscovered kimberlite blow occurring along a kimberlite fissure. 3.2 Drilling and Pitting Percussion drilling was carried out in three phases, viz: Phase I (July 1996) Some 28 boreholes were drilled for a total of 254 metres. The drilling was investigating potential gravel deposits on the entire property. Results obtained were as follows: Borehole No. A1 Depth in Metres 0 - 0.5 0.5 - 4.5 4,5 - 5.0 5.0 - + Description Clay and soil Calcrete Gravel Clay and soil A2 0 - 1.0 1.0 - 5.0 5.0 - 6.0 6.0 - + Clay and soil Calcrete Gravel Shale A4 0 - 0.5 0.5 - 3.5 3.5 - 7.5 7.5 - + Clay and soil Calcrete Gravel and clay Shale B1 0 - 2.0 2.0 - 4.0 4.0 - + Clay and soil Calcrete Shale B4 0 - 2.0 2.0 - 3.0 3.0 - + Clay and soil Calcrete Shale C5 0 - 4.0 4.0 - 6.0 6.0 - 7.0 7.0 - + Clay and soil Calcrete Sand Shale C45 0 - 2.0 2.0 - 4.0 4.0 - + Clay and soil Sand Shale D4 0 - 12.9 12.9 - 13.0 13.0 - + Clay and soil Gravel Shale D5 0 – 11.7 11.7 - 12.0 12.0 - + Clay and soil Gravel Shale D6 0 - 8.0 8.0 - + Clay and soil Shale D7 0 - 8.0 8.0 - + Clay and soil Shale AB2 0 - 1.0 1.0 - 5.5 5.5 - 6.0 Clay and soil Calcrete Shale ABS 0 - 4.0 4.0 - 5.0 5.0 - 10.0 Soil Gravel Sand AB6 0 - 2.0 2.0 - 5.0 5.0 - 17.0 17.0 - 18.0 18.0 - 30.0 Soil Calcrete Gravel Gravel and sand Sand BC5 0 - 5.7 5.7 - 6.0 6.0 - 8.0 Soil Gravel Shale ABB6 0 - 5.0 5.0 - 13.0 13.0 - 15.0 Soil Sand and Gravel Clay ABB56 0 - 5.0 5.0 - 8.0 8.0 - 11.0 11.0 - 15.0 15.0 – 18.0 18.0 - 27.0 Soil Calcrete and Gravel Sand Sand and Gravel Clay Sand and Gravel ABB667 0 - 5.0 5.0 - 12.0 Soil Clay AAB56 0 - 2.0 2.0 - 5.0 5.0 - 10.0 10.0 - 16.0 16.0 - 32.0 0 - 2.0 2.0 - 6.0 6.0 - 9.0 Soil Sand and Gravel Calcrete and Gravel Sand and gravel Sand Soil Caicrete and gravel Sand and gravel B566 9.0 - 10.0 10.0 - 15.0 0 - 2.0 2.0 - 7.0 7.0 - 13.0 13.0 - + CCD889 Clay and gravel Sand Soil Sand and gravel Sand and clay Shale This drilling programme revealed the presence or terrace gravels in boreholes A1 (1.0 m), A2 (1.0 m), A4 (4.0 m), D4 (0.1 m). D5 (0.3 m) and BC5 (0.3 m). These boreholes cover an area of 90 000 m2 and indicate an average thickness or 1.1 metres. Gravels and sand layers associated with the Deep Structure were intersected in boreholes AB6 (25 m+), ABB6 (15 m+), ABB56 (22 m), AAB56 (30 m+) and B566 (13 m+). It is not possible to calculate the average gravel thickness as these beds are intercalated with layers of sand. Phase II (March 1997) Four boreholes were drilled to investigate the geomagnetic anomalies detected by Dr G.J. Greeff. A total or 192 metres was drilled on four boreholes. Results were as follows: Borehole No. Depth in Metres Description 1 0 - 9.0 9.0 - 40.0 40.0 - 55.0 Soil and clay Shale Ventersdorp lava 2 0 - 10.0 10.0 - 40.0 40.0 + Soil and clay Shale (water) Ventersdorp 3 0 - 5.0 5.0 - 20.0 20.0 - 37.0 37.0 - 55.0 Soil and calcrete Yellow clay Blue clay Powdery yellow clay 4 0 6.0 8.0 13.0 16.0 25.0 30.0 Soil Calcrete Gravel and calcrete Clay Clay and gravel Sand and Gravel (water) Clay, sand and gravel (water) - 6.0 - 8.0 - 13.0 - 16.0 - 25.0 - 30.0 - 42.0 Boreholes 1 and 2, sited to examine the magnetic anomaly, failed to intersect kimberlite. It is most unlikely that vertical percussion drilling will intersect a vertically orientated and relatively narrow ( +- 1m) kimberlite fissure. This anomaly should be investigated by means of inclined diamond drilling. Boreholes 3 and 4 were located in the area characterised by low magnetic values. Both boreholes confirmed the presence or gravels in a Deep Structure but failed to reach bedrock. Phase III (May 1998) Sixteen boreholes were drilled, with a total depth of 365 metres, to further examine the trial mining areas. Results were as follows: Borehole No. Depth in Metres Description BBC56 1.0 - 3.0 3.0 - 5.0 5.0 - 7.0 7.0 - 9.0 9.0 - 11.0 11.0 - 14.0 14.0 - 40.0 40.0 - 42.0 Sand and soil Sand and clay Coarse-grained sand Sand and gravel Clay Sand (water) Gravel Shale (?) BBC556 1.0 - 3.0 3.0 - 4.0 4.0 - 5.0 5.0 - 6.0 6.0 - 8.0 8.0 - 40.0 40.0 Gravel Gravel and clay Sand and gravel Sand Gravel and clay Gravel Shale (?) (water) BBC556 0 - 2.0 2.0 - 3.0 3.0 - 6.0 6.0 - 8.0 8.0 - 10.0 10.0 - 40.0 Gravel Gravel and sand Gravel and clay Gravel and sand Clay Gravel (water at 21 m) B56 0 - 20.0 BBCS 0 0 - 1.0 1.0 - 4.0 4.0 - 5.0 5.0 - 7.0 7.0 - 15.0 Soil 0 - 1.0 1.0 - 5.0 5.0 - 6.0 6.0 - 7.0 7-0 - 9.0 9.0 - 23.0 23.0 - 25.0 Soil BBC5S Sand Calcrete Calcrete and gravel Gravel and sand Shale Calcrete Calcrete and gravel Gravel and sand Sand Sand and gravel Shale BBCS6 0 - 5.0 5.0 - 15.0 Soil 0 - 1.0 1.0 - 2.0 2.0 - 3.0 3.0 - 4.0 4.0 - 6.0 Gravel BB554 0 - 5.0 Shale BBC566 0 - 4.0 4.0 - 5.0 5.0 - 6.0 6.0 - 13.0 13.0 - 14.0 14.0 - 20.0 20.0 - 21.0 21.0 - 24.0 24.0 - 25.0 Soil 0 - 4.0 4.0 - 8.0 8.0 - 13.0 13.0 - 15.0 15.0 - 21.0 Soil B5 0 - 3.0 3.0 - 4.0 4.0 - 6.0 6.0 - 12.0 12.0 - 15.0 15.0 - 23.0 23.0 - 43.0 Calcrete and gravel Gravel Sand gravel and calcrete Gravel and sand Grave!, clay and sand Gravel and sand (water) Gravel and sand B455 0 - 4.0 4.0 - 9.0 9.0 - 14.0 14.0 - 27.0 Soil and calcrete Gravel and sand Fine gravel and sand Sand ABB45 0 - 10.0 10 - 12.0 120 - 13.0 AB45 0 - 2.0 2.0 - 7.0 7.0 - 13.0 Sand 0 - 1.0 Soil BES BC566 AAB45 Shale Gravel and sand Sand Gravel and sand Shale Sand and calcrete Calcrete Sand Gravel and sand Gravel, clay and sand Gravel and sand Sand Shale Calcrete and sand Clay and sand Gravel. and sand Shale Soil and gravel Gravel and clay Sand Sand and gravel Sand 1.0 - 2.0 2.0 - 5.0 5.0 - 11.0 11.0 - 12.0 12.0 - 14.0 Gravel Sand and gravel Gravel and calcrete Gravel and sand Clay All boreholes located in the Deep Structure displayed a series of sandy gravels, gravels, sand and clay. The bedrock where intersected consisted of shale, but a number of boreholes did not reach the floor of the deposit. The depth or tile gravel-bearing sequence ranges from 12 m to more than 40 m below surface. This drilling further confirmed the presence of the Deep Structure, but it failed to clearly establish the nature of the gravel deposit. Unconsolidated sand seriously hampered the efficiency of recovering representative samples from such deep Intersections. A number of pits were dug in an effort to further examine the trial mining area and to prospect the soil covered area in the north-western part of the property. 3.3 Estimated Size of Deposits The following is a description of the potential size and expected grades of the various deposits on Muirton. Detailed information for calculating definite and accurate ore reserves is not available. Deep Structure The Deep Structure has not yet been accurately outlined because drilling failed to reach bedrock. However, it k estimated that this structure could be 750 m long and 220 m wide. If it is assumed that the total average thickness of the gravel is 4 m (2.5 m upper gravels and 1.5 m lower gravels) and the relative density of the rock is 2.2, the expected tonnage’s of gravels are: Upper gravels : 750 m x 200 m x 2.5 m x 2.2 825 000 tons Lower gravels : 750 m x 150 m x 1.5 m x 2.2 371 250 tons Terrace Deposits Pitting and drilling has shown that the Terrace Deposits are widely present on the farm. They occur under a soil/clay/calcrete layer of various thickness and the gravel is generally or) average about one metre thick. It is estimated that a further area of 100 000 m2 is underlain by these gravels. The size of the deposit is therefore about 220 000 tons of gravel if it is assumed that the relative density of the gravel is 2,2. RESULTS OF TRIAL MINING Trial mining on Muirton was carried out from January to September 1998 using one 14 foot rotary pan plant. During this period the recovery plant was operated only for about 6 months due to a breakdown of the screening plant in June-July. The following results were obtained from the processing of 81 284 tons of gravel: Type of Gravels Upper Gravels Lower Gravels Tonnage Treated (tons) Diamonds Recovered (Carats) Grade CPHT 56,800 24,484 205 415 0.36 1.36 Abovementioned upper gravels consist of gravels found in the upper layers of the Deep Structure and some material from the Terrace Deposits. The lower gravels were mined from near the base of the Deep Structure. The 620 carats were sold for R1 300 000 at an average price of R2 096 per carat. The following stones larger than 5 carats were included in this parcel: 70.8, 20.2, 18.6, 17.8, 10.5, 9.7, 8.5, 8.5, 7.86, 7.4, 5.9 and 5.3. CONCLUSIONS AND RECOMMENDATIONS The Muirton property has considerable potential for the recovery of high quality gem diamonds, the main target being the Deep Structure. The following is a summary of the estimated tonnages and expected grades or the various deposits. Type of Deposit Potential Indicated Grade Diamond Value Gravel Tonnage Carats / 100 tons Rand / Carat Terrace 220,000 0.3 - 1.0 R1500 - R2000 Deep Structure Upper Gravels Lower Gravels 825,000 371,250 0.3 -1.0 1.5 - 2.5 R1500 - R2000 R2000 - R3000 It is important that these potential deposits are properly investigated before commencing with commercial mining. The following prospecting work is recommended: Deep Structure: A detailed programme of reverse circulation drilling to accurately outline the gravel deposit and with the emphasis on investigating the lower gravels. Normal percussion drilling should not be used on such a relatively deep deposit that contains unconsolidated sand within the gravel sequence. Terrace Deposits: Percussion drilling to fully examine the extent and nature of these gravels on the farm. More attention should also be given to the zone immediately west of the Vaal River. The strong linear magnetic feature occurring along the eastern part of the property could be an indication of the presence or a kimberlite fissure with possible blows. Inclined diamond (core) drilling will be required to properly investigate this possibility. It is recommended that an initial drilling programme should consist of three 75 metre inclined boreholes. R.Cooke BSc.Hons. Pri.Sci.Nat. P.O. Box 10 Rondebosch 7701 Tel: +27-21-686-8443 Fax: +27-21-685-4316