The mineral resources at TEAL's material projects are estimated in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 of the Canadian Securities Administrators.
Mineral resources are not mineral reserves and have not demonstrated economic viability, but are believed to have reasonable prospects for economic extraction. Indicated mineral resources are sufficiently well defined to allow geological and grade continuity to be reasonably assumed and permit the application of technical and economic parameters in assessing the economic viability of the resource.
Inferred mineral resources are estimated on limited information not sufficient to verify geological and grade continuity and to allow technical and economic parameters to be applied. Inferred mineral resources are too speculative geologically to have economic considerations applied to them to enable them to be categorized as mineral reserves and there is no certainty that mineral resources will be upgraded to mineral reserves through continued exploration.
These resource statements should be read in conjunction with the company’s final prospectus dated November 4, 2005 and the technical reports prepared by qualified persons at RSG Global (Pty) Limited in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
The Konkola North Copper Project’s resource statement was reconciled to the standards specified in the National Instrument 43-101 by Gijima AST Limited.
The Mwambashi Copper Project independent resource estimate was reconciled to the standards specified in the National Instrument 43-101, by GeoLogix Mineral Resources Consultants (Pty) Limited.
The Otjikoto Gold Project previously published an inferred resource of 1.30Moz which was verified by SRK Consulting (“SRK”) to the standards specified in the National Instrument 43-101. SRK is in the process of verifying the current 1.76Moz inferred resource.
| Mineral | Au | Contained | Total | Contained | |||
|---|---|---|---|---|---|---|---|
| Mineral | Current | Resource | Tonnes | Grade | Gold | Cu | Copper |
| project | ownership | Category | (m) | (g/t) | (Moz) | (%) | (Mlb) |
| Current Mineral Resource Estimates | |||||||
| Konkola North 1 | |||||||
| East Limb2 | 100% | Measured | 10.42 | – | – | 2.40 | 551 |
| Indicated | 3.14 | – | – | 2.24 | 155 | ||
| Inferred | 17.20 | – | – | 2.65 | 1,004 | ||
| South Limb2 | 100% | Measured | 4.42 | – | – | 2.40 | 234 |
| Indicated | 6.89 | – | – | 2.32 | 352 | ||
| Inferred | 30.55 | – | – | 1.60 | 1,077 | ||
| Area ‘A’ and | |||||||
| Area ‘A’ Extension 2 | 100% | Inferred | 184.98 | – | – | 2.65 | 10,804 |
| Kalumines 3,4 | Historic | ||||||
| 60% | inferred | 8.79 | 3.48 | 686 | |||
| Mwambashi Copper Project 5 | 70% | Measured and indicated |
9.21 | – | – | 2.02 | 410 |
| Inferred | 1.77 | – | – | 2.10 | 81,9 | ||
| Otjikoto Gold Project 6 | 100% | Inferred | 44.0 | 1.246 | 1.762 | – |
Notes:
| (1) | ZCCM-IH has buy-in rights for up to 20% (including a 5% carried interest) of the Konkola North Copper Project. |
| (2) | The mineralized zones were modelled on a 1% total copper cut-off. |
| (3) | Historical estimates dated June 1999 and pre-dating National Instrument 43-101.The source of these estimates is ARM. RSG Global concurs with TEAL that these historical estimates are relevant, however, due to insufficient data, RSG Global is unable to verify these estimates in terms of National Instrument 43-101. Nevertheless, RSG Global equates these estimates to a historical inferred mineral resource category. |
| (4) | Potentially subject to a 5% transfer obligation to the DRC under the DRC's New Mining Code. |
| (5) | The mineralized zones were modelled using a 0.5% total copper cut-off. |
| (6) | The mineralized zones were modelled on a 0.5 grams/tonne gold cut-off. |
