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Highfield Resources (ASX:HFR) updated their Ore Reserve estimate for the Companyâs flagship Muga Potash Project (âMugaâ or âthe Projectâ). This update relates to a revised Ore Reserve Statement prepared by Highfield Resources and audited by SRK Consulting (UK) Limited (âSRKâ). The Proved and Probable Ore Reserve has been derived from the Measured and Indicated Mineral Resource of 235 million tonnes as previously reported on 10 October 2018 and comprises 108.7 million tonnes at 10.2% Potassium Oxide (âK2Oâ, potash), with a Proved Ore Reserve of 42.9 million tonnes at 10.2% K2O and a Probable Ore Reserve of 65.8 million tonnes at 10.2% K2O. As a result of new detailed 3D modelling undertaken after the release of the Muga Project Update statement dated 15 October 2018, the total Ore Reserve of 108.7 million tonnes is modestly different from the 117 million tonnes of Muga mining inventory as reported previously. Â
Specifically, it comprises the portion of the Mineral Resource classified as Measured or Indicated which is planned to be mined and processed and then transported to the point of sale. The Ore Reserve is presented concerning plant feed and inclusive of losses and dilution incurred during mining and is a subset of, and not additive to, the Mineral Resource estimate released on 10 October 2018 from which it was derived.
The reserve cut-off grade approach utilized for mining is 8% K2O with a maximum waste salt content of 30%. SRK verified the input parameters and the cut-off grade approach together with the technical justification behind the production scenario proposed by Highfield.
For the planned mine production panels, the tonnage and grade have been diluted by 15 cm of waste in the roof and the floor. The seams are also constrained by a minimum mining height of 2.1 meters which is consistent with the planned mining equipment. The shallow dipping seams to utilize a set of two parallel roadways as the primary development access, one for fresh air intake and access and the other for exhaust ventilation and conveyor belt materials handling system.
The detailed economic analysis supporting reasonable prospects for eventual economic extraction of the Mineral Resource assumes processing with conventional crushing, flotation, and crystallization.
The proposed beneficiation process consists of a hybrid of two conventional beneficiation processes for sylvanite ores, namely froth flotation and dissolution/recrystallization. Flotation is applied to the coarse fraction of the feed ore after crushing, and dissolution/recrystallization, which produces a higher quality product, is applied to fines and common fractions to achieve an overall optimum level of recovery.
The assumed capital and operating costs used to report the Ore Reserve estimate are based on the Companyâs signed agreements with contractors, detailed quotes, or estimations made by the Company and its third-party consultants as used in the Muga Project Update statement of 15 October 2018, and therefore follow the same methodology described in that announcement.
The shares of HFR closed the dayâs session at A$0.650, down by 3.704 % or 0.025 points as compared to the previous day close of A$0.675.
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