BMG Resources : Cyprus Drilling Update 28 August 2014.pdf

Hole_ID

From

To

Nickel

(%)

Copper

(%)

Cobalt

(%)

Gold

(g/t)

PEVRC002

146

147

0.212

0.184

0.035

0.61

PEVRC002

147

148

0.524

3.45

0.151

2.21

PEVRC002*

147

148

0.556

2.84

0.149

2.40

PEVRC002

148

149

0.255

0.128

0.030

0.12

PEVRC003

144

145

0.818

0.011

0.023

0.12

PEVRC004

94

95

3.59

0.603

0.199

4.08

PEVRC004*

94

95

3.78

0.614

0.208

4.69

PEVRC004†

94

95

9.45

0.384

0.481

7.12

PEVRC004

95

96

2.37

0.058

0.110

1.61

PEVRC004

96

97

0.292

0.007

0.015

0.05

PEVRC004

97

98

0.263

0.006

0.012

0.06

PEVRC005

60

61

0.004

0.32

0.005

0.01

From

To

Interval

Nickel

(%)

Copper

(%)

Cobalt

(%)

7

9

2

3.17

0.62

0.13

9

10

1

0.65

2.60

0.07

11

13

2

3.71

0.98

0.95

13

15

2

3.23

0.25

0.32

15

17

2

4.68

0.64

0.34

17

18

1

7.50

1.62

0.62

18

19

1

3.00

3.46

3.39

20

21

1

1.23

1.10

0.19

22

23

1

11.56

1.26

0.64

24

25

1

1.32

1.08

0.10

Sample_ID

East

North

Nickel

(%)

Copper

(%)

Cobalt

(%)

Gold

(g/t)

BPP14012

513771

3850073

0.122

1.29

0.019

4.22

BPP14013

513760

3850073

0.679

0.784

0.046

0.24

BPP14014A

513769

3850091

0.715

0.009

0.067

0.03

BPP14014B

513769

3850091

0.471

0.156

0.045

0.02

BPP14015

513775

3850105

0.805

0.901

0.060

0.07

BPP14016

513767

3850112

0.804

0.724

0.058

0.33

BPP14023

513777

3850010

0.450

0.796

0.035

0.10

BPP14024A

513773

3850010

0.397

0.337

0.035

0.14

BPP14024B

513773

3850010

0.376

0.227

0.018

1.07

BPP14025

513771

3850016

1.165

0.745

0.083

9.93

BPP14026

513769

3850013

0.848

0.201

0.049

0.06

Hole ID

East

North

Dip

Azimuth

Depth

PEVRC001

513858

3849964

60°

060°

199

PEVRC002

513911

3849989

70°

060°

199

PEVRC003

513912

3849991

70°

040°

199

PEVRC004

513712

3849935

60°

035°

199

PEVRC005

513707

3849936

80°

090°

115

Criteria

JORC Code explanation

Commentary

Sampling

techniques

 Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

 Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

 Aspects of the determination of mineralisation that are Material to the

Public Report.

 In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

 Reverse circulation drilling was used to obtain one (1) metre samples.

 >95 % of samples were dry.

 Individual metres contained 30 to 40 kg on average.

 Each metre was logged for geology, magnetic susceptibility and portable XRF (reconnaissance only, so not reportable).

 Selected metres were then sub-sampled for laboratory assay with dry samples collected using a riffle splitter and wet samples collected by hand.

 Laboratory samples averaged about 1.2 kg.

 Certified Reference Material (2.36 % Nickel, 1.54 % Copper, 0.12 % Cobalt; no Gold standard used), blanks and field duplicates were inserted into the laboratory sample stream and showed no anomalies.

 Samples were assayed by ALS Global with sample preparation and gold assays in Romania and base metals completed in Ireland.

Drilling

techniques

 Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

 Reverse-circulation (RC) drilling using a 5.5 inch face-sampling bit.

 Individual metres collected into large plastic bags.

Drill sample

recovery

 Method of recording and assessing core and chip sample recoveries and results assessed.

 Measures taken to maximise sample recovery and ensure representative nature of the samples.

 Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

 Individual metres were captured into large plastic bags.

 Nearly all samples were dry.

 Individual metres contained 30 to 40 kg on average.

 Sample recoveries were consistent and considered very good.

 Sub-samples for laboratory assay were collected using a riffle splitter for dry material and by hand-grab for wet material.

Logging

 Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

 Each metre was logged for geology, magnetic susceptibility and portable XRF (reconnaissance only so not reportable).

Criteria

JORC Code explanation

Commentary

 Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

 The total length and percentage of the relevant intersections logged.

Sub- sampling

techniques

and sample preparation

 If core, whether cut or sawn and whether quarter, half or all core taken.

 If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

 For all sample types, the nature, quality and appropriateness of the sample preparation technique.

 Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

 Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

 Whether sample sizes are appropriate to the grain size of the material being sampled.

 Sub-samples for laboratory assay were collected using a riffle splitter for dry material and by hand-grab for wet material.

 Certified Reference Material (2.36 % Nickel, 1.54 % Copper, 0.12 % Cobalt; no Gold standard used), blanks and field duplicates were inserted into the sample stream and showed no anomalies.

 It is believed that the sampling methods used were adequate for this type of material.

 Field duplicates repeated well.

Quality of

assay data and laboratory tests

 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

 For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

 Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

 Samples were assayed by ALS Global with sample preparation and gold assays in Romania and base metals completed in Ireland.

 Standard sample preparation techniques were employed.

 Gold was tested using 30 gram fire-assay (Au-AA25).

 Base and other metals (Ag, As, Bi, Ca, Cd, Co, Cu, Fe, Hg, Mg, Mn, Mo, Ni, P, Pb, S, Sb, Tl, Zn) were tested with a highly oxidizing digestion with ICP-AES finish (ME-ICPORE).

 Certified Reference Material (2.36 % Nickel, 1.54 % Copper, 0.12 % Cobalt; no Gold standard used), blanks and field duplicates were inserted into the sample stream and showed no anomalies.

 ALS Global inserted their QA/QC samples into the laboratory sample stream.

 Portable XRF results are qualitative and not considered reportable.

Verification of sampling

and

assaying

 The verification of significant intersections by either independent or alternative company personnel.

 The use of twinned holes.

 Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

 Discuss any adjustment to assay data.

 Field duplicates of high-grade zones repeated well.

 New results broadly confirm historic results.

Location of data points

 Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

 Drill collars only surveyed by hand-held GPS.

 No downhole surveys completed.

 All maps in UTM Zone 36; WGS 84

Criteria

JORC Code explanation

Commentary

 Specification of the grid system used.

 Quality and adequacy of topographic control.

Data spacing

and distribution

 Data spacing for reporting of Exploration Results.

 Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

 Whether sample compositing has been applied.

 No reliable data spacing for the Pevkos Prospect has been established yet.

 Sample compositing was used for some zones where indications of mineralization were weak.

Orientation

of data in relation to geological structure

 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

 If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

 Information is currently limited to assess these criteria.

 It is believed that the current work is a fair assessment of the Pevkos

Prospect.

Sample security

 The measures taken to ensure sample security.

 All samples were packed in boxes and hand delivered to the courier.

Audits or reviews

 The results of any audits or reviews of sampling techniques and data.

 None

Criteria

JORC Code explanation

Commentary

Mineral

tenement and land tenure status

 Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

 The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

 EA4318 is an exploration licence. The licence is 100 % owned by Treasure Development Limited, which is in turn 100 % owned by BMG.

 The Pevkos Propsetc is within government land and is managed by the Forestry Department. There are no European Union Nature 2000 sites within AE4318.

 The licence is secure with all payments and obligations up to date.

 No impediments to exploration are known.

Exploration done by

other parties

 Acknowledgment and appraisal of exploration by other parties.

 All known historic results have been reported to the ASX by BMG.

Geology

 Deposit type, geological setting and style of mineralisation.

 Orthomagmatic Nickel-Copper-Cobalt-Gold where sulphide-rich fluids are segregated from other magmatic fluids and deposited at or near

Criteria

JORC Code explanation

Commentary

contact zones. Well known system globally, but apparently unique in

Cyprus for an ophiolite terrain.

Drill hole

Information

 A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above sea level in

metres) of the drill hole collar

o dip and azimuth of the hole

o down hole length and interception depth

o hole length.

 If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from

the understanding of the report, the Competent Person should clearly explain why this is the case.

 All drilling information is provided in the body of the report.

 Assayed samples not reported contained only background Nickel- Copper-Cobalt-Gold and are considered barren.

Data

aggregation methods

 In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

 Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

 The assumptions used for any reporting of metal equivalent values should be clearly stated.

 Data aggregation included simple mean of field duplicates.

 Some samples were composited in the field.

Relationship

between mineralisatio n widths and intercept lengths

 These relationships are particularly important in the reporting of

Exploration Results.

 If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

 If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

 The geometry of the high-grade sulphide zones is poorly constrained, and thus the true width of the intervals is not known.

Diagrams

 Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

 See body of report

Balanced

reporting

 Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

 Apart from the intervals reported in the body of the report the rest of the holes are considered barren for Nickel-Copper-Cobalt-Gold.

Other

substantive exploration



Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and





High-grade sulphide material appears to be very friable and crumbly and may pose problems for some drilling techniques.

Some high-grade Nickel-Copper-Cobalt-Gold samples contain

data

method of treatment; metallurgical test results; bulk density,

significant Arsenic (up to 8.46 % As).

groundwater, geotechnical and rock characteristics; potential

deleterious or contaminating substances.

Further work



The nature and scale of planned further work (eg tests for lateral



Test for lateral and down-dip extensions using field mapping and

extensions or depth extensions or large-scale step-out drilling).

geophysical (EM) methods.



Diagrams clearly highlighting the areas of possible extensions,



Search for additional mineralized zones in immediate area.

including the main geological interpretations and future drilling areas,

provided this information is not commercially sensitive.