Mibra Mine – Lithium and Tantalum Resources

AMG Mineração, a subsidiary of AMG, updated its mineral resource estimates for its Mibra mine in Brazil in accordance with CIM Definition Standard and Canadian Securities Administrators’ National Instrument 43-101 (“NI 43-101”) Guidelines.

The Technical Report on Mineral Resources states that AMG Mineração’s Mibra mine has 20.3 million tonnes of measured and indicated resources, an increase of approximately 38% compared to the previous Mineral Resource Statement completed in 2013. Those resources include lithium, tantalum, niobium and tin. This report is based upon drillings and research done during the 2016-2017 core drilling campaign and certain economic assumptions that reflect today’s current market prices and extraction costs.

Based upon AMG’s targeted production level of 180k MT of lithium concentrate from 2020 onwards, AMG estimates that the current life of the mineral resource is approximately 20 years, based upon current extraction and processing costs, and current economic conditions.

Compared to the previous Mineral Resource Statement, which was completed in 2013:

  • the measured and indicated mineral resource increased by 5.5 million tonnes, to 20.3 million tonnes, an increase of approximately 38%
  • the inferred mineral resource decreased by 0.4 million to 4.2 million tonnes, indicating a positive migration from inferred to measured and indicate resources

The detailed table of the mineral resources is below:

Domain
Quantity
Grade
(‘000s tonnes) Li (ppm) Li2O (%) Ta (ppm) Ta2O5 (ppm) Nb (ppm) Sn (ppm)
Measured Mineral Resources
A 3,224 4,685 1.01 289 353 52 267
C
F 197 3,670 0.79 377 461 45 565
Total Measured 3,421 4,626 1.00 294 359 52 284
Indicated Mineral Resources
A 11,989 5,130 1.10 293 358 46 258
C 4,842 4,545 0.98 228 278 64 685
F 37 4,179 0.90 428 523 49 773
Total Indicated 16,868 4,960 1.07 275 335 51 382
Total Measured & Indicated 20,289 4,904 1.06 278 339 51 365
Inferred Mineral Resources
A 2,434 4,714 1.01 309 377 45 204
C 1,787 4,895 1.05 231 282 63 842
F
Total Inferred 4,222 4,790 1.03 276 337 53 474

*Mineral resources are not mineral reserves and do not have a demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimates. The mineral resources are reported within a conceptual pit shell at a cut-off grade of 80 ppm of Ta considering a selling price of R$316 per pound of Ta2O5, R$130 per tonne of feldspar and R$1,860 per tonne of concentrate 5.5% Li2O, a metallurgic recovery of 55 percent of tantalum, 65 percent of lithium, 10% mass recovery for feldspar.

Ancuabe Mine – Graphite Resources

GK Ancuabe Graphite Mine SA (GKAGM), a subsidiary of AMG Graphite, updated its Mineral Resource Estimation in 2013 for its Ancuabe open pit mine in Mozambique in accordance with the JORC 2012 standard.

The Ancuabe graphite deposit is located in the Cabo Delgado Province of Northern Mozambique, which is now being recognized as an important emerging graphite province. In August 2012, GK Ancuabe Graphite Mine SA was awarded a Mining Right. AMG Graphite intends to restart mining activities and production in 2017, last active under a previous owner in the 1990’s. AMG Graphite estimates upon reaching full production, the concession can produce 9,000 metric tons of flake graphite concentrate annually.

Fig. 1: View of ore body from above, looking west.

The JORC 2012 Mineral Resource Estimation states that AMG Graphite’s Ancuabe mine has 81,000 tons of flake graphite. This report is based upon drillings and research done during the 2011 drilling campaign. AMG Graphite estimates that the current life of the mineral resource is approximately 9 years. In 2016, AMG started a new drilling campaign which is expected to be completed in January 2017 in order to expand its resources in the Ancuabe mine area as well as to the eastern parts of the concession.

Classification
Domain
Total Tonnage
Avg. Grade (TGC%)
Graphite (t)
Measured Saprolite 396,819 11.17 44,325
Hard Rock 191,806 11.17 21,425
TOTAL 588,625   65,750
Indicated Saprolite 14,927 8 1,194
Hard Rock 175,347 8 14,027
TOTAL 190,274   15,221
TOTAL RESOURCES 778,899   80,971

Nipacue Graphite Deposit – Graphite Resources

Grafite Kropfmuhl de Moçambique Lda, a subsidiary of AMG Graphite, stated a Maiden Mineral Resource Estimation in 2013 for its Nipacue graphite deposit in Mozambique in accordance to the JORC 2012 standard.

The Nipacue graphite deposit is located in the Cabo Delgado Province of Northern Mozambique. The Nipacue deposit is located within a group of five contiguous mineral exploration licenses covering an area of approximately 114,000 hectares, all held by Grafite Kropfmuhl de Moçambique Lda.

The JORC 2012 Mineral Resource Estimation states that the Nipacue deposit mine has 910,000 tons of natural flake graphite. This report is based upon drillings and research done during the 2011 and 2012 drilling campaign.

Domain
Type
Measured
Indicated
Grade (TGC%)
Graphite (t)
Ramanini Saprolite 1,195,287 7.02 83,909
Hard Rock 1,767,373 2,720,706 7.02 315,064
Central Saprolite 1,651,623 5.88 97,115
Hard Rock 3,988,335 3,039,629 5.88 413,244
TOTALS 8,602,618 5,760,335   909,332

Bogala Graphite Mine – Graphite Resources

Bogala Graphite Lanka PLC, a subsidiary of AMG Mining, updated its mineral resource estimates as of January 1st, 2017 for its underground mine in Sri Lanka in accordance with the JORC 2012 standard.

The Technical Report on Mineral Resources states that Bogala Graphite mine has 124,410 tons of inferred and indicated resources, which are crystalline (vein) graphite. This report is based on core drillings and field measurements done in 2016.

Compared to the previous Mineral Resource Statement, which was completed in 2015, the 2016 resource estimation shows a decrease of 1,270 tons, or 1.01%.

Bogala estimates that the life of the mineral resource is approximately 29 years based upon current annual production of 4,200 tons. However, Bogala is planning an exploration program at the Bogala and Rangala mines with a more efficient drill rig in order to ascertain more resources.

Below is the summary report of Bogala graphite mineral resources as of January 1st, 2017:

Ore Body
Indicated
Inferred
Total (tons)
Kumbuk 10,704.79 24,881.07 35,585.86
Kumbuk Split 12,142.61 16,420.17 28,562.77
Kumbuk Off 13,702.74 13,702.74
Kumbuck Off Split 42.77 4.106.51 4,149.28
NA 2,743.68 31,674.22 34,417.90
Untapped Resource 567.49 7,424.04 7,991.53
Subtotal (tons) 26,201.33 98,208.75 124,410.08
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