Resource Statement

The following table summarises the current Mineral Resource estimates for the Baobab Project using a P2O5 cut-off grade of 15%. The figures in this table are rounded to reflect the precision of estimates and include rounding errors. These estimates were first published in Avenira’s market announcement, “Maiden Indicated Mineral Resource at Baobab Phosphate Project” dated 31st August 2017. Avenira is not aware of any new information or data that materially affects the information included in that market announcement and all the material assumptions and technical parameters underpinning the estimates in that announcement continue to apply and have not materially changed.

 

Table 1 above summarises the current Mineral Resource estimate, including depletion by mining to the end of August 2017, at a P2O5 cut-off grade of 15%. The figures in this table are rounded to reflect the precision of estimates and include rounding errors.

The broader Baobab Project area covers approximately 1,163 km2 (see Figure 2). The tenement area, as previously indicated in the 11 September 2017 Exploration announcement, has been recently granted for three additional years. A Small Mine Permit (“SMP”) was granted in May 2015 over the area of thickest and highest grade mineralisation identified to date in the Gadde Bissik area and the focus of exploration has continued largely within and adjacent this area since that time, including an infill drilling campaign within the SMP to better define the geometry of the phosphate sequence (Figure 1). In addition, drilling campaigns were carried out further to the east, with the objective to increase Indicated Resources and Inferred Resources at the Gadde Escale prospect.

Resource Location and drilling plan

 

At the Gadde Bissik East area, drill holes outside and along the eastern edge of the SMP perimeter and those inside, in the southern part of the SMP, were designed to increase the Indicated Resources. An Indicated Resource of 34.9 Mt at 20.7 % P2O5 has now been estimated for this area. The drilling further east of the SMP, at a broader spaced grid, had the objective to increase the Inferred Resources. An Inferred Resource of 70 Mt at 18 % P2O5 is now estimated for this area. Further infill drilling is warranted around the better intercepts. An additional 22 diamond holes have been drilled within the resource area to the north, and in extension to the east. Assays results for these holes are pending.

At Gadde Escale (formerly Gad Escale), results from additional holes drilled at the western and southern margins of the resource area have increased the Inferred Resources. An Inferred Resource of 43 Mt at 19 % P2O5 has now been estimated. The prospect is open to the east, south and west and further drilling in this area is planned with the dual objective to increase the area of the Resource and to identify the areas of thicker, higher grade mineralisation. An additional 12 diamond holes have been drilled predominantly on the western and south-western margins of the Resource area and assay results for these are pending.

At Dinguiraye, Gandal and Gadde Bissik West, the resource extents have not changed. The mineralised domain interpretations have been updated. Those prospects warrant further investigations and drilling in those areas is planned as well as diamond-core infill drilling designed to identify the areas of thicker, higher grade mineralisation.

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