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GOLDEN IDEAS MINING Gold Project Feasibility Study RIVER NILE STATE PREPARED BY: Consultant geologist/ELhadi TAgelsir Mohammed Amjad Ahmed Faisal Batran Anas Mohammed April, 2020

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Page 1: GOLDEN IDEAS MINING

GOLDEN IDEAS MINING

Gold Project Feasibility Study

RIVER NILE STATE

PREPARED BY:

Consultant geologist/ELhadi TAgelsir Mohammed Amjad Ahmed Faisal Batran

Anas Mohammed

April, 2020

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Contents 1-lntroduction ....................................................................................................................................9

1.1Location and accessibility:...........................................................................................................9

1.2 Topography ......................................................................................................................... 10

1.3 Drainage ................................................................................................................................. 10

1.4 climates: ................................................................................................................................. 10

1.5Previous work .......................................................................................................................... 10

2-Regional geology of Bayuda desert ................................................................................................. 12

2.1Introduction............................................................................................................................. 12

2.2 Lithological rock unites of Bayuda desert .................................................................................. 14

2-2-1 High-grade Gneisses and Migmatites: ................................................................................ 16

2-2-2 The Ophiolitic Rocks:......................................................................................................... 17

2-2-3 Metavolcanosedimentary Sequences: ................................................................................ 17

2.2.4Syn-to late Orogenic Intrusions: .......................................................................................... 19

2.2.5 Post Orogenic Intrusions:................................................................................................... 21

2.2.6 Dyke Swarms .................................................................................................................... 22

2.2.7 Cretaceous – Tertiary Sediments: ....................................................................................... 23

2.2.8 Cenozoic Volcanics: ........................................................................................................... 25

2.2.9Quaternary- to Recent Sediments ....................................................................................... 25

2.2.10 The geology and Mineralization ....................................................................................... 26

3-Exploration activity (recent work) ................................................................................................... 27

3.1Remote sensing........................................................................................................................ 27

3.2 Digital Image Processing .......................................................................................................... 30

3.3 color composites ..................................................................................................................... 30

3.4 Principal Component Analysis (PCA).................................................................................... 33

3.5 Mapping of alteration zones .................................................................................................... 33

3.6 Alteration mapping using Feature Oriented PCA........................................................................ 33

3.7Conclusion & recommendations................................................................................................ 35

3.8Rock & Chip Sampling ............................................................................................................... 36

3.9 Designing a Soil Sampling Program ........................................................................................... 36

3.10 Trenching.............................................................................................................................. 41

3.11 Design and location of trenches.............................................................................................. 43

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3.12 Sampling method ................................................................................................................. 43

3.13 Sample preparation ............................................................................................................... 47

3.14 Sample Procedures and Processing......................................................................................... 48

3.15 Trenches modeling ................................................................................................................ 49

3.16 Drilling .................................................................................................................................. 53

3.17 Drilling and Sampling Procedures ........................................................................................... 55

3.17.1 Drilling and Sampling Method ............................................................................................. 55

3.17.2 Drill Sample Quality ........................................................................................................ 57

3.17.3 Drill hole Surveying......................................................................................................... 57

3.17.4 Geological Logging .......................................................................................................... 59

3.17.5 Sample preparation, analyses and security ....................................................................... 61

4.1.6 Sample Submission Procedures.......................................................................................... 61

4.1.7 Sample Preparation and Analysis ....................................................................................... 61

4. Resources estimation .................................................................................................................... 63

4.1Introduction............................................................................................................................. 63

4.2Models .................................................................................................................................... 63

4.3 Drilling modeling ..................................................................................................................... 66

4.4 Solids Models .......................................................................................................................... 69

4.5 Sample compositing ................................................................................................................ 71

4.6 Basic statistic results of the Gold assay data ........................................................................... 72

4.7 Grade outlier restriction (top cut)............................................................................................. 73

4.8 Block model ............................................................................................................................ 74

4.9 Block Constraints ..................................................................................................................... 75

4.10 Blocks and Attributes ............................................................................................................. 75

4.11 Variogram map...................................................................................................................... 77

4.12 Classification of mineral resources.......................................................................................... 81

4.13 Pit optimization ..................................................................................................................... 82

4.14 Pit Slopes .............................................................................................................................. 82

4.15 Design Parameters ................................................................................................................ 83

4.16 Classification of Mineral reserve ............................................................................................. 89

5.Mining methods ............................................................................................................................ 90

5.1 Open Pit Mine Plan.................................................................................................................. 90

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5.2 Mine design ............................................................................................................................ 91

5.3 Mine roads & ramps ................................................................................................................ 92

5.4. Waste dump design ................................................................................................................ 93

5.5. Mining Equipment .................................................................................................................. 93

5.6. Drilling and blasting ................................................................................................................ 93

6. Recovery method- Heap leaching process ...................................................................................... 94

6.1Introduction............................................................................................................................. 94

6.2 Heap Leaching Operation......................................................................................................... 97

6.3 The stages for heap leaching .................................................................................................. 100

6.4 Elution, Carbon Regeneration and Gold Room Operations ..................................................... 100

6.5Acid Wash.............................................................................................................................. 101

6.7 Electrowinning ...................................................................................................................... 101

6.8 Gold Room ............................................................................................................................ 102

7. Capital and operating costs.......................................................................................................... 103

7.1Direct Capital Costs ‐ Mining ................................................................................................... 103

7.2 Capital Cost Estimate – Process Plant and Infrastructure.......................................................... 104

7 .3 Manpower ........................................................................................................................... 107

7.4 Camp / Accommodation ........................................................................................................ 108

7.5 Plant Buildings...................................................................................................................... 108

7.6 Mine Buildings ...................................................................................................................... 108

7.7 Operating Costs – Mining ....................................................................................................... 112

7.8 Operating Cost – Plant and Infrastructure ............................................................................... 112

7.9 Summary costs ...................................................................................................................... 113

8 -References ................................................................................................................................. 115

9 -Appendices......................................................................................... Error! Bookmark not defined.

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List of figures:

- Fig.(1): location map……………………………………………………………………………….…………………….8 - Fig.(2 )Geological Map of Bayuda Desert…………………………………………………….……………………………………….12

- Fig (3) Geological map showing the lithological rock unites of Bayuda desert………………..………………………..13

- Fig (4) the lithostratigraphic sequence of Bayuda desert……………………………………………………………………14

- Fig (5): OLI colour composite obtained using bands 4, 3, 2 in RGB, respectively…………….28

- Fig.(6): OLI color composite obtained using bands 7, 5, 2 in RGB, respectively………….….30

- Fig (7):OLIcolourcomposite obtainedusingbands6,5,3inRGB, respectively………………….….31

- Fig. (8) The PCA color composite image obtained using PC4( 'hydroxyl), PC2(hydroxyl "PC4"

+ iron-oxide "PC3") and PC3 (iron- oxide) in RGB, respectively…………….………………...34

- Fig. (9)grade distribution in trenches (yellow color indicates grade greater than0.5 ppm)……48

- Fig. (10)Lithological distribution in the area (red color indicates quartz veins and veinlets, while blue color represents hosted and country rocks)…………………………………….…….49

- Fig.(11 ): solid model in term of grade distribution……………………………………..……..50

- Fig. (12): solid model in terms of lithology……………………………………………………50

- Fig. (13 )distribution of gold grade by colors: blue=0-0.5 ppm, grey=0.5-1 ppm 1green = 1-2 ppm, yellow 2-3 ppm, red greater than 3 ppm……………………………………………….…..51

- Figure (15 ) Zone One location…………………………………………………………………….……53

- Figure ( 16) Picture showing a 1m interval sieved RC chip sample in a chip tray…………….………59

- Figure (17 ). Example of an RC geological Log………………………………………………………………………..64

- Figure(18): topographic map………………………………………………….………..………66

- Figure(19):Drilling modeling………………………………………………………….……….67

- Figure(20):Combination of trenches and drill holes model……………….……………………69

- Figure (21): Different views of geological solid models……………………………………….71

- Figure (22 ): 1 meter composite length was used………………………………71

- Figure (23): a histogram showing the frequency and cumulative frequency of gold grade…....72

- Figure ( 24): Grade outlier restriction (top cut) used in the study…………………………….72

- Figure ( 25 ): Grade outlier restriction histogram…………………..………………………….73

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- Figure (26): cumulative frequency curves after appl ying cut off……………..…….……..74

- Figure (27 ): The block model of 5x5x5 m & 2.5x2.5x5 m sub block……............……………75

- Figure (28 ): Block model coloured by attribute values…………..……………………………76

- Figure (29):Variogram map………………………………………………………….…………79

- Figure (30):block model showing attribute values…………………..…………………………79

- Figure(31):Ordinary kriging (Interpolate block values using kriging with variogram parameters………………………………………………………………………………….…….83

- Figure(32):bottom view of pit in zone one………………….……………………84

- Figure (33):3D view of final pit design…………………………….…………………………..85

- Figure (34): Plane view of final pit design…………………………………………..…………86

- Figure (35):Block model and 3D pit design…………………………..………………………..87

- Figure (36):Block model and plane pit design……………………………………..…………..90

- Figure (37): open pit terminology………………………………………………………………………………………….91

- Figure (38) bench dimensions…………………………………………………………………………….……………………………91

- Figure (39) mine road and ramps design…………………………………………………………………..……………93 - Figure (40): Overall Process Flow Diagram…………………………………………...………94

-Figure (41): A design comprises 8 cells with a 100m length and 50m …...……………………95

-Figure (42) Golden Ideas main camp and office design……………………………………………………………….………106

-Figure (43): Operating Expenses Split………………………………………...………………111

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Tables & plates

Table (1): coordinates of study area……………………………………………………………….8 Table (2) summarized the spectral bands, wavelength and spatial resolution of Landsat 8….….26

Table (3) OLI bands selection for feature oriented principal component analysis……….…..33

Table (4): rock samples location & analysis…………………………………………..…………37

Table (5): Planned location of trenches……………………………………………….…………41

Table (6) proposed drilling location and depths…………………………………………………53

Table (7): Summary of ultimate pit stripping ratio……………………………………...………89

Table (8) equipment list……………………………………………...…………………………101

Table (9): heap leach plant vendor quotation…………………………..………………………103

Table (10): Labour rates and overhead costs……………………………………………...……105

Table (11) Capital Estimate Summary…………………………………………….……………108 Table (12): average open pit operating cost (US$ /t mined)……………………………………109

Table (13): average operating cost (US$ /t mined)……………………………………………..110

Table (14): Summary costs…………………………………………………………………………………………………………………110

Plate (1) High grade gneiss……………………………………………………………………………………………16 Plate (2) Muscovite schist low lain outcrop………………..…………………………………….18

Plate (3) Marble……………………………………………….…………………………………19

Plate (4) Syn Orogenic Granite…………………………………………..………………………21

Plate (5) J. Nabati complex………………………………………………………………………22

Plate (6): Dyke Swarms……………………………..…………………………………………...23

Plate (7) Cretaceous sandstone…………………………………………………………………..25

Plate (8) HudiChert………………………………………………………………………..……..25

Plate (9) Rock sampling………………………………………………………………………….40

Plate (10) Rock sampling plan& mineralization zones……………………………….………….41

Plate (11)The default sample length is 5 meter taking into account the nature of the lithology’s

and mineralization…………………………………………………………….………………….45

Plate (12) General view of the trenches…………………………………………...……………..46

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Plate(13) trench six intersecting a quartz vein…………………………………………………..46

Plate (14) Trenches samples collection…………………………..………………………………47

Plate (15)the sampling channel is marked horizontally along the trench wall using measuring

tape……………………………………………………………………………………………….48

Plate (16) Plastic sacks with sealable lids are used to transport the completed samples to the Sats Lab……………………………………………………………………………………………….50

Plate(17):Atlas Copco Explorac 100RC Drilling at Zone One……….…………………………57

Plate (18) RC samples are collected at 1 m intervals from the base of the RC cyclone with new

plastic bags……………………………………………………………………………...58 Plate (19): All collars were surveyed using differential GPS………………..…………………60

Figure (20) Picture showing a 1m interval sieved RC chip sample in a chip tray…….…………………61

Plate (21)Trimble Gps……………………………………………….……………65

Plate (22): a flat area with an impermeable foundation where heaps plant is going to be built....99

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Executive summary

The area surveyed in this study constitutes part of the eastern Bayuda Desert. It

covers about 2.2 square kilometers; the area could be reached from Khartoum by

asphalt road (Khartoum – Atbara – Berber highway) and also (Khartoum – Atbara

– Abu Hammed Railway). The area is accessible also by local ferries at Berber to

Kadabas village on the western bank of River Nile. The project area is underlain

by Late Proterozoic Basement Complex rocks that are intruded by various

anorogenic ring- complexes and overlain partially by sedimentary and basaltic

volcanics of Paleozoic to Mesozoic age the crystalline Basement Complex

rocks are exposed due to the uplifting and erosion as erosion windows. The

River Nile represents the only perennial drainage system together with the seasonal

Atbara River are the main prominent drainage system in the area. However, there

is a complete, dense dendritic, dendritic-rectangular drainage system represented

by the consequent and subsequent seasonal wadies in the western bank of the River

Nile. The area under investigation belongs to the arid region, which is

temperature ranging from 45o C up to 50o C.Bayuda Desert is situated in the great

bend of the River Nile and lies between the Nubian Shield in the east with

predominantly late Proterozoic ages, and Jebel Uweinat area to the west with

Archaean ages (Ries et.al.1985). The eastern part of the Bayuda Desert has

been the subject of previous investigations (Vail, 1971; Meinhold,1979, 1983;

Dawood, 1980; Reis et.al., 1985; Kuster and Liegeois, 2001). It is dominated by

high-grade metasediments while the Red Sea Hills sector (the Nubian Shield)

is underlain by green schist metavolcano-sedimentary sequences as suggested

by Almond and Ahmed (1987). They concluded that the high-grade rocks in the

west might represent a lower Proterozoic reworked silica basement covered

by the green schist assemblage. Exploration work conducted during this period

,remote sensing study ,collection of 59 rock samples, defining four mineralization

zones and 18 trenches of about 4392m length resulting in collection of 878 channel

samples. Next exploration phase will be deep drilling, a plan was set according to

the amount of data obtained during first phase of exploration, resource estimation,

and mine design and hence a prefeasibility study will be prepared after.

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1-lntroduction

1.1Location and accessibility:

Bayuda Desert is located in a remote area of the northern Sudan; the area surveyed

in this study constitutes part of the eastern Bayuda Desert. It covers about

2.2square kilometers and it is bounded by the following latitudes and longitude:

Table (1): coordinates of study area

Fig.(1): location map

The area could be reached from Khartoum by asphalt road (Khartoum – Atbara –

Berber highway) and also (Khartoum – Atbara – Abu Hammed Railway). The area

is accessible also by local ferries at Berber to Kadabas village on the western bank

of River Nile.

POINT NORTHING EASTING

A 17°59'44.42"N 33°39'36.66"E

B 17°59'44.42"N 33°40'47.46"E C 17°59'9.60"N 33°40'47.46"E

D 17°59'9.60"N 33°39'36.66"E

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1.2 Topography

The project area is underlain by Late Proterozoic Basement Complex rocks that

are intruded by various anorogenic ring- complexes and overlain partially by

sedimentary and basaltic volcanics of Paleozoic to Mesozoic age the crystalline

Basement Complex rocks are exposed due to the uplifting and erosion as

erosion windows. The River Nile signifies the local erosion base, the old gneisses

and migmatites of these windows form large flat pen plain, surrounded by

tableland Phanerozoic Formation. The altitudes over the erosion level. The

volcanic extrusive formed cinder cones which rise up to 300-400 meter above the

surrounding plain (Barth and Meinhold, 1979).

1.3 Drainage

The River Nile represents the only perennial drainage system together with the

seasonal Atbara River are the main prominent drainage system in thearea.

However, there is a complete, dense dendritic, dendritic-rectangulardrainage

system represented by the consequent and subsequent seasonalwadies in the

western bank of the River Nile.

1.4 climates:

The area under investigation belongs to the arid region, which is temperature

ranging from 45o C up to 50o C. The rainy season is short with low rainfall

between July - September with average less than 50 mm per annum. The winter

season extends from November to February with low temperature that sometimes

drops down to 10oC in nights.

1.5Previous work

El Rabaa (1976) defined the polymetamorphic and the multi-deformational

Basement and the rift tectonics of Bayuda Desert. Almond (1977) describedsome

selected ring complexes. Also, Dawoud (1980) conducted structuraland

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metamorphic project and mapped the Mograt area. The work of UNDPProject,

prospecting for mica in the Shereik Area, Northern Sudan, waspublished in

Technical Report No. 2 (DN/SF/UN/79 - Technical Report No.

2). Meinhold and Barth, (1979) described the geology of the BayudaDesertwithin

the work of Sudanese-German joint mineral exploration program, and produced a

geological map in a scale 1:250 000. Reis, et. al. (1985) made geochronological

and geochemical studies in NE Bayuda Desert. Almond and Ahmed (1987)

identified and named the Keraf Shear Zone.

3)Abdelsalam, etal. (1994, 1995, 1996, and 1998) investigated the KerafShearZone

and its tectonic and deformational history, based on shuttle radarimagery. They

defined four-phases of deformation. Abdelrahman (1993) recognized ophiolitic

fragments in the Keraf Shear Zone and interpreted them as remnant of a marginal

oceanic basin, which once existed betweenthe composite arc terranes of the Nubian

Shield in the east and the NileCraton in the west

4)Ibrahim (2005) he conducted a detailed exploration work includingdetailed

geological mapping, litho geochemical survey, soil and stream sediments

geochemical surveys.

5)Bailo (2000) did structural, petrological, geochronological and isotopicInvestigations of the Keraf petro tectonic assemblage. Küster and

Liégeois(2000) used Sr and Nb isotopes and geochemistry to propose that the high-grade metamorphic basement of Bayuda desert constitute a Neo-

Proterozoicoceanic convergent margin succession with limited late input of old material.Ali (2005) studies the geology and tectonic events of Bayuda desert in the

area around River Nile between Atbara and Abidiya. Nagashi (2005) study the geology and structural geology of the Bayuda desert by detailed map in the

AbuKhalag area and to apply geochemical exploration techniques to study the gold mineralization there.

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2-Regional geology

2.1Introduction

Bayuda Desert is situated in the great bend of the River Nile and lies between the

Nubian Shield in the east with predominantly late Proterozoic ages, and

Jebel Uweinat area to the west with Archaean ages (Ries et.al.1985). The eastern

part of theBayuda Desert has been the subject of previous investigations

(Vail, 1971;Meinhold,1979, 1983; Dawood, 1980; Reis et.al., 1985; Kuster and

Liegeois, 2001). It is dominated by high-grade metasediments while the Red

Sea Hills sector (the Nubian Shield) is underlain by green schist metavolcano-

sedimentary sequences as suggested by Almond and Ahmed (1987). They

concluded that the high-grade rocks in the west might represent a lower

Proterozoic reworked silica basement covered by the green schist assemblage.

Vail (1979) classified the Precambrian rocks of the Bayuda Desert into three

groups separated by unconformities:

(1) Older group of gneisses (Grey geisses);

(2) Amphibolite facies metasediments;

(3) Upper group of volcanoclastic rocks (the green schist assemblage).

Dawoud (1980) mapped the northeastern part of the Bayuda Desert where

metasediments, metavolcanics, older granites and younger granites have been

described. Abdurrahman (1993) studied the geology of the Bayuda-Gabgaba area

and classified the rock units on the basis of field evidence and previous

work into: high-grade- gneisses and migmatites, high-grade supra crustal

metasediments, low-grade metasediments, ophiolitic complex, volcano

sedimentary sequence and molasses units. Bailo (2000) described the geology

north of Latitude 18 º 30 N along the Keraf Shear Zone. KusterandLiegeois

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(2001) subdivided the high-grade metamorphic lithologies of the Bayuda Desert

into two geographical units:

Fig.(2 )Geological Map of Bayuda Desert

1) A monotousmigmatised series of mainly granitiod gneisses and

subordinate amphibolite’s in the western and central Bayuda Desert (Grey gneisses

of Vail).

2) A heterogeneous non-migmatised succession metavolcanosedimentary

sequence),which includes felsic gneisses, amphibolites, schist rocks, marbles,

quartzite in the easternBayuda Desert.

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2.2 Lithological rock unites of Bayuda desert

The lithological rock unites of Bayuda desert (fig 3-4\ 3-5) can be summarized as

follow

- Cenozoic volcanic rocks.

- Paleozoic and Mesozoic sedimentary formations.

- Paleozoic and Mesozoic igneous rocks.

- Precambrian basement complex.

Fig (3) Geological map showing the lithological rock unites of Bayuda desert.

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Fig (4) the lithostratigraphic sequence of Bayuda desert.

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2-2-1 High-grade Gneisses and Migmatites:

This rock unit is represented by high– grade of upper–amphibolite facies of

metamorphosed gneisses and migmatites with metasedimentary schist and

carbonates. Some of these gneisses are lithologically and stratigraphically similarto

the high-grade gneisses reported in J. Uweinat.The high-grade infracrustal

gneisses are founded to be overlain by high-gradesupra-crustal metasediments

and frequently contain quartzite lenses (plate 3-1).They are strongly deformed

with fold axes striking 20° 30°and gently plunging SW.In some places, the fold

axes strike E- W with gentle dip to E and W (Barth and Meinhold,1979).

Plate (1) High grade gneiss

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2-2-2 The Ophiolitic Rocks:

The origin of these ophiolitic rocks can be one of these three types of rocks;

- Sedimentary origin, some of the amphibolite show impressive features in the

field which are attributable to sedimentary origin. They are characterized by close

association with rocks of definite sedimentary origin and they develop very regular

banding similar to original bedding. This banding can be attributed to formation of

some of the amphibolites with marbles, calc-silicates, and metapelites. The

gradational contacts with other gneisses and their association with quartzite may

support that these types of amphibolites have been derived from a

sedimentary protolith.

- Igneous origin, some of the amphibolites have no gradational contact with

the adjacent sedimentary rocks. There is a general absence of marble bands in them

and have irregular shapes of outcrops. Weak relicts of ophitic and sub-ophitic

textures are common. These textures suggest an igneous origin for these units.-

Meta volcano sedimentary origin, mixed between terrigenous material, volcanic

flows and tuffaceous clasts witch they had been metamorphosed under

amphibolites facies.

These rocks founded like outcrops of serpentinized ultramafic and banded

metagabbros have been reported by Ali, (2005) between wadikurmut and

wadiAbuHaraz.

They founded vertical to sub-vertical highly deformed and sheared N-S linear belt

extending for more than 15Km.These rocks are intruded like syn-tectonic

intrusions as allochthones masses.

2-2-3 Metavolcanosedimentary Sequences:

These sequences are represented by a series of low to medium grade amphibolite

Faciesmetavolcanics and associated metasediments, which structurally overlie the

high-grade gneisses and migmatites together with the ophiolitic sequences (Hag el

khidir, 2006). They outcrop west of the River Nile as results of imbricate thrust

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faulting (Barth and Meinhold, 1979).The principal lithologies are acidic to

basic and intermediate volcanics, volcanoclastics, tuffeaous material and

turbidite sediments of pelitic and semi pelitic composition including (pyriteferous

chlorite) schist, (garnet-chlorite, muscovite) schist (plate 3-2), garnet (quartzo-

felspathic)schist, (garnet-chlorite, muscovite) schist (plate 3-2), garnet

(quartzo-felspathic) schist and meta-chert. These sediments display cyclic

graded bedding that is repeated from very coarse to medium and fine-grained

components. The cycles are separated and/or intercalated with massive volcanic

flows. These intercalations represent the best evidence of turbidity environments

(Ali, 2005).

Plate (2) Muscovite schist low lain outcrop

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Plate (3) Marble

2.2.4Syn-to late Orogenic Intrusions:

Intrusive rocks belonging to the syn- Orogenic granite include foliated

biotitegranite, biotite muscovite granite and diorites- granodiorites cutting the older

mafic ultramafic units and the associated low-medium grade

Metavolcanosedimentary sequences(Khalifa, 2008).These rocks are

cataclastically deformed andmylonitized by Keraf shear zone (Hag El khidir,

2006). The foliated biotite-granite crops out west of the River Nile. These rocks

were considered earlier by (Barth and Meinhold, 1979) as high-grade gneisses

of Abu Harik series. They are well-foliated to weekly-foliated, showing multi-

phases of deformation with numerous basic xenolithic imprints indicating their

igneous origin (plate 3-4). In area of Atbara cement quarry, these rocks were

folded in isoclinal recumbent folds verging south and refolded in gentle open

folds with axial planes plunging 15° S (Ali,2005). Mafic xenoliths have been

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found in this mica granites east of Qurunarea.This is one of the field evidence that

the granites and biotite-foliated granites are younger than the opholitic mafic

ultramafic rocks (Ali, 2005).

Plate (4) Syn Orogenic Granite

.

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2.2.5 Post Orogenic Intrusions:

The distribution of the Sudanese alkaline ring complexes is described from

five areas: The Red Sea Hills, along the Nile in the Bayuda Desert and north

Khartoum,Nuba Mountains in Kordofan, upper White Nile and the J.

Uweinat inlier inNorthwestern Sudan (Vail, 1985). The complexes in NE Sudan

were considered by Embleton et.al (1982) to probably be associated with tensional

tectonics of the Red Sea and East African Rift system.

The best examples of post-Orogenic intrusions in Bayuda desert is J.

Nabaticomplex (plate 3-5) in the north of the mapped area west of the Nile at the

fifth cataract, J. Abu Salim, J. Kurbei, J. Abu Nahal and J. Abu Handel, which

form as a ring shape structure and J. Abu Nahal is the largest continuous ring

structure inBayuda desert. These post-tectonic rocks are mainly alkali granites

and alkali syenites. The initial Sr87:Sr86 ratio shows that the Nabati complex

is not remobilized basement but intrusive granite belonging to the late

Orogenic ringcomplex of the Bayuda Desert (Mienhold, 1979). The age of

emplacement of these rocks is less than 550 Ma (Ries, et al., 1985).

Plate (5) J. Nabati complex

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2.2.6 Dyke Swarms

They are forming characteristic features in the area. Most of the dykes seem to be

emplaced after the main igneous activity and tectonic movement. Some postdated

the younger granite complexes and cross cut them. Some of the individual dykes

are irregular in form and most of them on close inspection don’t follow an ideal

straight, parallel sided course, although most of the dykes are vertical or steeply

dipping. Thicknesses range from half a meter to several meters. In some parts onset

of a particular trend displaced another set indicating different phases of

emplacement. Many of the individual dykes wedge out at their termination and

enechelon structure is a common feature. This may indicate shearing stresses rather

than tension produced by normal stresses (Dawoud, 1980). Most of the dykes are

Rhyolite, micro granites, micro syenites, trachyte, diorites, and dolerite.

Plate (6): Dyke Swarms

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2.2.7 Cretaceous – Tertiary Sediments:

These sediments have been founded uncomfortably on the basement complex in

the northern Sudan generally and were referred formerly to cretaceous sandstone

formation. They have been classified into three main unites;

- Cretaceous Nubian Sandstone, in a large continuous formation a long a narrow

belt of sedimentary rocks to the eastern side of the River Nile. These sediments are

medium grained sandstone (plate 3-6). In some places, the sandstone is overlain by

very fine grained Hudi Chert forming small outcrops rising a few meters above the

surrounding plains NE of Atbara town.

- Hudi Chert , The Hudi chert was first identified by Cox (1932) from Hudi

Railway Station about 40 km NE of Atbara and he reported that the Hudi chert is

an upper Eocene/lower Oligocene Formation, which contains some types of fossils

such as Gastropods and plant fossils (plate 3-7). The Hudichert rocks were

regarded as lacustrine chalky deposits that have been silicified into chert (Andrew

and Karkains, 1945). The source of silica was probably from silica flow from the

young volcanic activity of Jebel Umm-Marafieb of NW Berber (Kheiralla, 1966

\Barth and Meinhold, 1979).This rock unit is present as scattered yellowish

brownsub-rounded boulders that range in size from 2 to 5 cm (Hag El-kidir, 2006).

- J. Nakhara series, in the area east of the River Nile, these sediments comprise

conglomerates, pebbly sandstone and fossiliferous carbonaceous pebbly sandstone.

The lower part of these sediments is poorly sorted conglomerate, which is

only exposed east of the River Nile north and south of Artoli village (plate 3-8) .

These sediments studied by Hamed (2005) and concluded that these sediments

represent the upper part of the Nubian sandstone formation in Shendi-

Atbara region and crop out west of the River Nile between the Cenozoic

volcanics of J. Umm Arafiba and the Nile. These rocks overlie the basement

discordantly and in turn are covered unconformably by the Cenozoic volcanics.

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Plate (7) Cretaceous sandstone

Plate (8) HudiChert

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2.2.8 Cenozoic Volcanics:

First descriptions of these volcanics were given by (Andrew, 1948) and Vail

(1971) described them in more detail and related them to Tertiary-

Quaternary volcanic activity (plate 3-9). Almond et. al. (1969 and 1977)

suggested a late Pliocene to Recent ages for the younger Bayuda volcanic rocks

based on the slight degree of erosion. They are widespread in Bayuda desert to N-

W of Berber town and represented by the huge shield volcano of J. Umm Arafieba

and J. El Jar lava flow. The lava flows outcrop is faulted in the eastern side of J.

Nakhara (plate 3-8), thus showing the unconformity relationship with the

underlying sandstone (Ali, 2005). Their intrusion is connected with post-Nubian

N-S and E-W striking faults (Vail, 1978).

2.2.9Quaternary- to Recent Sediments

Most of the peneplains in Bayuda desert west of the River Nile are covered with

residual coarse sands and pebbles, which have been derived from the

Nubian Sandstones Formation. These unite of sediments represent unconsolidated

gravels; sands, clays, sandy clays and silt result from weathering of rocks. Alluvial

deposits around Nile and Wadies, Aeolian deposits like dunes or ripple marks.

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2.2.10 The geology and Mineralization

The gold mineralization in the study area is hosted by the metavolcano-

sedimentary rocks of wadi Abu Haraz, consisting mainly of amphibolite schists,

quartzites, gneisses, and some bands of marbles, and lenses of calcsilicats. These

rocks are intercalated resulting in variable succession. They are foliated sheared

and strongly deformed. The grade of metamorphism is that of amphibolite facies.

Gold Mineralization of the area is connected with quartz veins and veinlets. Most

of the major auriferous quartz veins are hosted with amphibolite schists, while the

minor bodies and veinlets are associated with gneisses. Although the shearing have

affected both the amphibolite schists and quartzite which are in contact with each

others, the auriferous quartz veins occur within the amphibolite schists probably

due to permeability of the amphibolite, that response to deformation and provide

favorable environment for the hydrothermal solutions to precipitate than that of the

brittle quartzite. This behavior suggests the lithological control of the

mineralization. At the same time the auriferous veins always occupy the planes of

the fault systems indicating structural control of the mineralization as well as its

lithological control. Alteration zone are identified on both hanging and foot walls

of the auriferous quartz veins which appear in from zones of carbonization, and

chloritization with thickness do not exceed30 cm. In some localities they contain

gold mineralization. Generally the size of auriferous quartz veins varies length

from 20 m up to 300 m average thickness 30cm.

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3-Exploration activity (recent work)

3.1Remote sensing

Remote sensing techniques have been used like images enhancements, band

combination and band rationing on satellite Landsat 7 ETM+ to identify

lithological differentiation, mineralization zones (chloritic,sericitic and phyllic

alteration signatures and gossan rich zones) and structure as shown in figures

below also regional geological survey has-been carried out to checked

remote sensing signature and improve the geological/structural maps. Also

chips samples have been collected and analyzed for gold and base metals.

Landsat 8 OLI7 images were used to determine the hydro-thermal alteration and

tectonic features in this study. Landsat 8 OLI consist 11 bands, images consist of 9

spectral bands with a spatial resolution of 30 m from Bands 1 to 7 and 9. The

resolution for Band 8 (panchromatic) is 15 m. Band 1 (ultra-blue) is useful for

coastal and aerosol studies and band 9 is useful for cirrus cloud detection. Thermal

bands 10 and 11 are useful in providing more accurate surface temperatures and

are collected at 100 m.

Landsat8Op

erationalLan

dImager(OL

I)

andTher

malInfr

ared

Sensor(

TIRS)

LaunchedFebruary1

1,2013

Bands

Wavelength(mi

crometers)

Resolution(m

eters)

Band1- Coastal aerosol 0.43 -0.45 30

Band2- Blue 0.45 -0.51 30

Band3- Green 0.53 -0.59 30

Band4- Red 0.64 -0.67 30

Band5-NearInfrared (NIR) 0.85 -0.88 30

Band6-SWIR 1 1.57 -1.65 30

Band7-SWIR 2 2.11 -2.29 30

Band8-Panchromatic 0.50 -0.68 15

Band9-Cirrus 1.36 -1.38 30 Table (2) summarized the spectral bands, wavelength and spatial resolution of Landsat 8.

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The following remotely sensed data have been used in this study: Landsat 8 OLI

data, path 173, row 48 obtained from USGS http://landsat.usgs.gov/. The

acquisition date 2018‐12‐11, with 7 multispectral bands and panchromatic of

spatial resolution 30 m and 15 m, respectively.

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Fig (5): OLI colour composite obtained using bands 4, 3, 2 in RGB, respectively.

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3.2 Digital Image Processing

Different algorithms have been utilized in this study in order to obtain different

color composite images, which are used in visual interpretation, such as:

1. Equalization histogram enhancement.

2. Pan Sharpening to obtain high resolution images.

3.3 color composites

Different color composites were created during this study. For instance, (Figure 3)

shows a false color composite of bands 7, 5and 2 in RGB, respectively. Another

color composite image was prepared by using the infrared bands of the image set,

i.e. utilizing bands 4, 3, and 2 in RGB respectively (Figure 2). The last color

composite image prepared using band 6, 5 and 3 in RGB respectively (Figure 4).

It’s very difficult to differentiate between the rock units because the area is small

and low relief topography.

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Fig.(6): OLI color composite obtained using bands 7, 5, 2 in RGB, respectively.

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Fig (7):OLI colour composite obtained using bands6,5,3inRGB, respectively

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3.4 Principal Component Analysis (PCA)

Colour composite image of PC1, PC2 and PC3 in RGB (Fig.5) has provided much

lithological information and discrimination between units. In this image, the rocks

appear in light blue color and dark brown colour

3.5 Mapping of alteration zones

Mineral deposits are valuable indicator of possible ore deposits.Alteration can be

defining any change in mineralogical composition of the rock brought about by

physical or chemical means (Guilderland Park, 1986). The most common type of

alteration is the breakdown no feldspars and ferromagnesian minerals to variety

of clays and other hydroxyl bearing minerals (Drury, 1993).Since most alterations

involve some or all of the semimetals their detection has been used for many

exploration projects (Kenea,1997).

Remote sensing and digital image process ing can be using to recognize altered

rocks because their reflectance spectra differ from those unaltered country

hydrothermal alteration zones and weathering of the sulphide mineralization

within the acid volcanic represent as significant mineral province (Elsayed

Zeinelabdein and Albieky,2008).The are generally two common types of images

used to map hydrothermal alteration: ratios and selected principal components

analysis also known as Feature Oriented PCA(Loughlin,1991).

3.6 Alteration mapping using Feature Oriented PCA.

Feature Oriented Principal Component Analysis (FOPCA) is a method to select

some bands of the image to run a principal component transformation. The selected

bands are believed to exhibit spectral information over an intended target (Crosta

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and Mc.Moore, 1989). This method developed by Loughlin (1991) to map

alteration zones.

For enhancement of both iron-oxides and hydroxyl-bearing minerals, two sets of

four OLI bands were selected, namely: bands 2, 4, 5, and 7, and bands 2, 5, 6, and

7, respectively. This selection based on the fact that the iron-oxides have

contrasting signatures in OLI bands 2 and 4, and the hydroxyl in OLI bands 6 and

7. The selected OLI bands as corresponding to the TM bands of Loughlin (1991)

are presented in Table (2).

Purpose OLIbands

Hydroxylbearingminerals Band2,5,6,and7

Ironoxides Band2,4,5,and7

Table (3).OLI bands selection for feature oriented principal component analysis.

Within the frame of this study, the FOPCA selection was conducted for the image

set of the study area. The basic statistics of the selected bands involved in the

transformation and shows the engine vector loadings of the band sets 2, 5, 6 and 7

in order to obtain the hydroxyl component. As it clear, PC4 has mapped

hydroxylated minerals as (-1.26) in OLI-6 and as (0.208) in OLI-7. Also the engine

vector loadings of 2, 4, 5 and 7 bands set chosen to obtain the Iron-oxide

component. As might be observed, PC3 has mapped iron-oxide as (1.27) in OLI

band 2 and as (0.146) in OLI band 4. A linear combination of PC4 from the first

data set and PC 3 from the second data set was produced in order to map the

hydroxyl-bearing minerals and iron oxides.

A false colour composite image "Crosta alteration image" was produced after

displaying the hydroxyl (PC4) in the Red, (hydroxyl "PC4" + iron-oxide "PC3") in

the Green and the iron- oxide (PC3) in the Blue guns (Figure).

The produced image (Fig.5) displayed the alteration zones in, Red hues and clays

minerals in white and bright blue. This result reinforced the conclusions of the

previous techniques in mapping the alteration zones.

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Fig. (8) The PCA color composite image obtained using PC4( 'hydroxyl), PC2(hydroxyl "PC4" +

iron-oxide "PC3") and PC3 (iron- oxide) in RGB, respectively.

3.7Conclusion & recommendations

Landsat ETM+ and ASTER images have been used to generate base geologic and

structural maps to understand the litho-structural setup of the area and to locate

possible targets or indicators for mineralization. Geology of the concession area

comprises underlain an assemblage of high grade metamorphosed,

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metasedimentary sequence and alkaline complex. These rock units have been

subjected to four phases of deformation. Field investigation has shown that gold

mineralization is lithologically and structurally controlled and can be found either

along the shear zones or faults (lineaments) affecting metasediments,

mesothermal gold mineralization in quartz veins (orogenic gold). Indications

of shear zone alteration mineralization such as ferruginization, silicification,

pyritization and malachite in amphibolite facies are common. Chip samples

collected during the survey shown many anomalies of gold the geochemical

anomalies coincided well with the remote sensing signatures. The geology and

structure of the area have exerted a significant control on the distribution of

gold mineralization, especially in the central part of the area where the lithological

units have been affected by major shear zones. The western part of the block area

comprises granite intruded by felsic dyke and give positive signatures of remote

sensing and intensive artisanal activities.

3.8Rock & Chip Sampling

Rock chip sampling is sampling of exposed potentially mineral-bearing rocks.

Chips are taken during initial mapping, and if promising results are returned, a

subsequent soil sampling survey undertaken. Alternatively, in many cases,

outcrops maybe either minor or non-existent, and soil sampling is a key next step

for an exploration program.

3.9 Designing a Soil Sampling Program

A sampling program was designed to ensure that it tests the structure which is

causing the geochemical anomaly. A grid of 200*200m had been proposed to

the areas of buried ore and very low degree of outcropping. A number of 56

rock samples have been collected varying in depth from 20 to 50cm. Samples

analysis results and locations are shown in below table. Analysis results show

ed gold content ranging from 0 to 15.553 ppm.

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Sample_id northing easting Gold grade g/t Rock 61 17 59 25.98 33 39 55.71 0.3

Rock 60 17 5920.1 33 40 01.1 0.8

Rock 59 17 59 26.5 33 39 55.76 1.9

Rock 58 17 59 27.99 33 39 55.94 1

Rock 57 17 59 29.58 33 39 54.44 6.1

Rock 56 17 59 28.66 33 39 53.16 1.8

Rock55 17 59 26.73 33 39 53.53 2.1

Rock 54 17 59 41.18 33 39 49.66 1.1

Rock 53 17 59 37.39 33 39 49.09 0.8

Rock 52 17 59 28.0 33 39 46.71 0.5

Rock 52 17 59 36.59 33 39 34.31 7.1

Rock 51 17 59 36.24 33 39 36 5.7

Rock 50 17 59 36.72 33 39 33.53 1.2

Rock 49 17 59 33.3 33 40 26 0.9

Rock 48 17 59 33.3 33 40 26 4.1

Rock 47 17 59 34.6 33 40 26 2.1

Rock 46 17 59 34.2 33 40 22.4 3.1

Rock 45 17 59 35.5 33 40 22.2 9.5

Rock 44 17 59 37.0 33 40 23.0 5.4

Rock 43 17 59 37.7 33 40 22.2 0.9

Rock 42 17 59 39.2 33 40 23.7 3.1

Rock 41 17 59 38 33 40 23.7 4.7

Rock 40 17 59 37 33 40 24.6 1.6

Rock 39 17 59 37.5 33 40 27.3 1.6

Rock 38 17 59 36.9 33 40 27.7 1.5

Rock 37 17 59 37.9 33 40 28.1 0.3

Rock 36 17 59 40.6 33 4028.5 18.8

Rock35 17 59 41.0 33 40 28.3 0.4

Rock 34 17 59 48.4 33 40 27.6 1.6

Rock 33 17 59 50.6 33 40 27.3 0.7

Rock 32 17 59 37 33 39 31.27 16.9

Rock 31 17 59 27.41 33 39 42.05 0.8

Rock 30 17 59 25.84 33 39 41.4 0.2

Rock 29 17 59 32.88 33 39 53.75 0.1

Rock 28 17 59 34.66 33 39 52.65 0.1

Rock 27 17 59 43.2 33 39 50.63 0.1

Rock 26 17 59 42.87 33 39 50.51 0.1

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Table (4): rock samples location & analysis

Rock 25 17 59 45.26 33 39 54.96 0.1

Rock 24 17 59 45.5 33 39 51.0 0.1

Rock 23 17 59 42.35 33 39 53.5 0.1

Rock 22 17 59 38.23 33 39 56.62 0.1

Rock 21 17 59 38.56 33 39 57.84 0.1

Rock 20 17 59 39.62 33 39 58.94 0.2

Rock 19 17 59 40.45 33 40 00.4 0.6

Rock 18 17 59 42.39 33 40 0.36 9.9

Rock 17 17 59 43.86 33 39 59 0.1

Rock 16 17 59 45.2 33 39 59.8 0.5

Rock 14 17 59 46.43 33 40 0.66 0.1

Rock 13 17 59 46.21 33 40 0.08 0.1

Rock 12 17 59 45.26 33 40 01.69 0.2

Rock 11 17 59 42.85 33 40 04.09 0.1

Rock 10 17 59 42.29 33 40 04.97 26.4

Rock 9 17 59 41.95 33 40 05.15 0.1

Rock 8 17 59 43.71 33 40 11.58 0.1

Rock 7 17 59 43.86 33 39 59.96 0.1

Rock 5 17 59 46.24 33 40 11.33 0.1

Rock 4 17 59 46.54 33 40 09.57 0.1

Rock 3 17 59 47.78 33 40 09.12 0.1

Rock 2 17 59 47.8 33 40 07.85 0.1

Rock 1 17 59 49.52 33 40 08.4 0.1

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Plate (9) Rock sampling

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Plate (10) Rock sampling plan& mineralization zones

According to the rock analysis and also geological observation the block area is

subdivided into four main mineralization zones named zone 1, 2, 3 and 4

respectively.

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3.10 Trenching

Trenches can be a quick and relatively cheap way of obtaining lithological and

structural information in areas of shallow cover. They are an excellent supplement

to Rotary air Blast (RAB) or Reverse Circulation (RC) drilling programs, where

the structural data from trench mapping is needed to complement the lithological

information obtained from the drill cuttings. The purpose of trenching is to log

structures, record lithological boundaries and obtain samples that can provide

continuous surface data for grade variations across a known or inferred mineralized

zone or structure, as well as potential extensional targets this data can be correlated

with the subsurface information from drilling. And therefore provide information

on structure, true thickness of structures, Lithology. Size and orientation of

mineralization and assist with understanding grade distribution.

19 out of 23 planned trenches were typically excavated into bedrock with a total

length 4392 m, average depth of 1-2.0 meters and a width of 1.5 meters, using an

Hyundai 220 L excavator. Loose rock is cleared away from the floor of the trench

to expose a clean smooth bedrock surface. Sample intervals, typically five meters

in length, but sometimes variable depending upon the nature of the mineralization

and bedrock. These trenches exposed the altered and mineralized trend of the study

area main zone.

The strike of the quartz veins vary from NNE-SSW, NE-SW and to N-S with the

dips varying from 75-65 degrees. The veins at some places contain sulphides

mostly near the contact with the host rock. The host rock is amphibolite schist with

or without alteration. Most of the major auriferous quartz veins are hosted with

amphibolite schist, while the minor bodies and veinlets are associated with gneiss.

Alteration zones are identified on both hanging and foot walls of the auriferous

quartz veins, generally the size of auriferous quartz vein varies from 20 m to 300 m

in length with an average thickness of 30cm.

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TRENCH NAME START END T1 17°59'41.48"N 33°40'10.12"E 17°59'39.92"N 33°40'12.31"E T2 17°59'40.95"N 33°40'9.51"E 17°59'39.43"N 33°40'11.70"E T3 17°59'40.34"N 33°40'8.99"E 17°59'38.82"N 33°40'11.13"E

T4 17°59'39.71"N 33°40'8.49"E 17°59'38.24"N 33°40'10.60"E T5 17°59'39.07"N 33°40'7.97"E 17°59'37.59"N 33°40'10.09"E

T6 17°59'38.44"N 33°40'7.49"E 17°59'36.98"N 33°40'9.50"E T7 17°59'37.74"N 33°40'7.02"E 17°59'36.38"N 33°40'8.92"E

T8 17°59'37.05"N 33°40'6.55"E 17°59'35.70"N 33°40'8.49"E

T9 17°59'36.43"N 33°40'6.01"E 17°59'35.09"N 33°40'7.94"E T10 17°59'35.84"N 33°40'5.45"E 17°59'34.44"N 33°40'7.40"E

T11 17°59'35.31"N 33°40'4.87"E 17°59'33.81"N 33°40'6.83"E T12 17°59'34.70"N 33°40'4.35"E 17°59'33.20"N 33°40'6.27"E

T13 17°59'34.08"N 33°40'3.83"E 17°59'32.64"N 33°40'5.70"E T14 17°59'33.48"N 33°40'3.28"E 17°59'32.04"N 33°40'5.18"E T15 17°59'32.84"N 33°40'2.75"E 17°59'31.45"N 33°40'4.61"E

T16 17°59'32.26"N 33°40'2.21"E 17°59'30.90"N 33°40'4.02"E T17 17°59'42.12"N 33°40'10.63"E 17°59'40.55"N 33°40'12.89"E

T18 17°59'42.75"N 33°40'11.23"E 17°59'41.10"N33°40'13.56"E

T19 17°59'43.31"N 33°40'11.87"E 17°59'41.59"N 33°40'14.30"E T20 17°59'43.94"N 33°40'12.35"E 17°59'42.20"N 33°40'14.89"E

T21 17°59'44.47"N33°40'13.08"E 17°59'42.72"N 33°40'15.57"E T22 17°59'45.03"N 33°40'13.76"E 17°59'43.24"N 33°40'16.28"E

T23 17°59'45.61"N 33°40'14.30"E 17°59'43.76"N 33°40'16.93"E

Table (5): Planned location of trenches

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3.11 Design and location of trenches

The trenches are designed perpendicular to the strike of the structures, vein(s) or

ore bodies to be investigated. The trench extended to cover at least “50” m on

either side of the mineralized zone to ensure coverage of potentially mineralized

structures in the footwall and hanging wall rocks, since there are many veinlets and

quartz stringers. A spacing of 25 m between each trench and other were selected to

ensure maximum coverage of sampling to the targeted mineralization zone.

3.12 Sampling method

Since the mineralization is dipping towards the north western direction, the

appropriate sample was taken from a channel perpendicular to that dip along the

trench wall, this is method was found be the most appropriate to be used within the

study area. One side (west wall) was selected for sampling and the sample

intervals marked out on the walls of the trench (using paint) respecting geological

boundaries. Sample log sheet was used to record lithological, structural boundaries

and the sample location, length and orientation were recorded on sample sheet,

trenches have been start from the north side of each one.

The default sample length is 5 meter taking into account the nature of the

lithology’s and mineralization. Where long areas of a single, homogenous

lithology are encountered in the trench, the first and last samples were collected

next to the lithological boundary should be one meter in length and the intervening

sample lengths may be increased to 5 m mark these intervals out along the trench

using spray paint, but adjust intervals if geological changes are encountered. Due

to the flat surface topography of the region and the uneven level of the trench floor,

the level of the sample channel is to be measured down from surface to a

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predetermined depth on the wall. The sampling channel is then to be marked

horizontally along the trench wall using nails hammered into the wall and string or

measuring tape tied horizontally between the nails. This will allow an even,

horizontal charnel along the wall.

Plate (11)The default sample length is 5 meter taking into account the nature of the lithology’s

and mineralization

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Plate (12) General view of the trenches

Plate(13) trench six intersecting a quartz vein

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Plate (14) Trenches samples collection

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Plate (15)the sampling channel is marked horizontally along the trench wall using measuring

tape

3.13 Sample preparation

All samples collected on the project by comapny were subject to quality control pr

ocedures which ensured the use of industry best practice in respect of the handling,

sampling, transport, analysis, storage and documentation of sample materials and

their analytical results.

All trench, channel, rock chip samples were crushed to a nominal crush size of 80% passing <2 mm. Samples are weighed before and after crushing.

A single tier splitter was used to produce a split of the original sample for dispatch to the assay laboratory. Sampling this split was 250 – 300 g.

Compressed air is used to clean the crusher and splitter between samples.

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Laboratory samples were placed in new plastic bags, with the sample ticket included and the sample number written on the outside of the bag. The

plastic bag containing the assay sample is then sealed with a cable tie. Plastic sacks with sealable lids are used to transport the completed samples

to the Sats Lab.For drill core, trench and rock chip sample batches a crusher flushing sample of barren vein quartz was used to clean the crusher plates

after 20 samples and at the end of individual sample batches.

3.14 Sample Procedures and Processing

Samples are received directly from the field in plastic sample bags. The sample

bags are laid out in numerical order with the plastic bags open at the top to aid in

drying.

Plate (16) Plastic sacks with sealable lids are used to transport the completed samples to the Sats

Lab

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3.15 Trenches modeling

7 trenches were (out of planned 22 trenches) analyzed for gold, so only those

trenches will be used here as an example in this technical report to demonstrate

mineralization and lithology distribution pattern of ore.

Fig. (9) grade distribution in trenches (yellow color indicates grade greater than0.5 ppm)

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Fig. (10)Lithological distribution in the area (red color indicates quartz veins and veinlets, while

blue color represents hosted and country rocks)

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Fig.(11 ): solid model in term of grade distribution

Fig. (12): solid model in terms of lithology

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Fig. (13) Distribution of gold grade by colors: blue=0-0.5 ppm, grey=0.5-1 ppm

1green = 1-2 ppm, yellow 2-3 ppm, red greater than 3 ppm

Fig. (14) Block model for first ore body

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3.16 Drilling

A total of 500 meters of drilling has been proposed. The type of drilling is

Reverse Circulation (RC) based on type of mineralization. The location and collar

of the boreholes are given in the following table:

.

Table (6) proposed drilling location and depths

NO Hole_id Y X Z Dip Azimuth Max_depth

1 H1 1989715 570875 427 -60 126 50

2 H2 1989729 570859 427 -60 126 20

3 H3 1989674 570843 427 -60 126 50

4 H4 1989720 570822 427 -60 126 50

5 H5 1989692 570862 427 -60 126 20

6 H6 1989641 570854 427 -60 126 20

7 H7 1989700 570723 427 -60 126 20

8 H8 1989632 570778 427 -60 126 20

9 H9 1989572 570734 427 -60 126 20

10 H10 1989582 570711 427 -60 126 50

11 H11 1989551 570710 427 -60 126 20

12 H12 1989563 570688 427 -60 126 50

13 H13 1989529 570659 427 -60 126 50

14 H14 1989617 570749 427 -60 126 20

15 H15 1989516 570642 427 -60 126 20

16 H16 1989660 570702 427 -60 126 20

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Reverse Circulation (RC) drilling in zone one project area commenced in February

2020. During this period, drilling was focused at zone one, figure ( ).

Figure (15) Zone One location

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3.17 Drilling and Sampling Procedures

All drilling up has been undertaken by Um Alqura RC Exploration Drilling

machine Atlas Copco Explorac 100 plate (17)

Plate(17):Atlas Copco Explorac 100RC Drilling at Zone One

3.17.1 Drilling and Sampling Method

RC samples are collected at 1 m intervals from the base of the RC cyclone with

new plastic bags, which are clearly labeled with the hole number and meter

interval. Drill chips in the bags are geologically logged and the information

recorded on a paper drill log sheets by the attending geologist. The bags are then

sealed. Below is a systematic procedure from the collection at the cyclone to the

laboratory dispatch stage:

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Each meter sample is collected from the cyclone into a plastic sample

bag measuring30 x 40 cm and weighed at the rig with the weight

recorded on the drill log sheet

The bulk sample is then passed through the integrated riffle splitter

with two sub‐sample ports, one to produce a ~3 kg sub‐sample in a 30

x 40 cm plastic bag.

When a duplicate is required, the bulk bag is passed through the riffle

splitter to produce a ~3 kg duplicate sample.

Samples tags are added to each 3 kg sample from numbered ticket

books, with the hole number and interval clearly written on the ticket

stub for reference

The bulk reject samples are then numbered and left at the drill site in

ordered lines

The riffle splitter is cleaned thoroughly with compressed air prior to

the next sample being split.

All samples (original, archive and duplicate) are then transported to the camp at the

end of the shift, where the archive sample is stored and original and duplicates

prepared for dispatch to the temporary storage facility

Plate (18) RC samples are collected at 1 m intervals from the base of the RC cyclone with new

plastic bags

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3.17.2 Drill Sample Quality

Sample recovery for the RC samples was estimated based on a 127 mm hole size

and densities of assumed density of 2.5 g/cm Sample recovery for RC samples was generally good, averaging 90%. All RC drilling was conducted in dry conditions

3.17.3 Drill hole Surveying

Drillhole locations were initially set out using a handheld GPS and marked with a

painted rock. Upon completion of the drilling, a cement marker, inscribed with the

drillhole name, was placed at the collar Figure (). After drilling, all collars were

surveyed using differential GPS (DGPS) equipment.

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Plate (19): All collars were surveyed using differential GPS

The drill rigs were aligned to the design azimuth for each hole using compasses

that were corrected for magnetic declination. A line of pegs, approximately 6 m

long and oriented to the design azimuth, is first pegged adjacent to the planned

hole collar. The drill rig is then brought into position such that the tracks are

approximately parallel to the pegged line. Offset distances from the pegs to the

tracks are then monitored by tape measure during a final adjustment to fine‐tune

the rig’s position. The rig is then regarded as being aligned to the design azimuth

and drilling commences.

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3.17.4 Geological Logging

RC drill chips were geologically logged at 1 m intervals, recording rock types,

structures, quartz veining type and percentages, sulphide occurrence and

alteration type and intensity. Sample weight, estimated recovery and quality

were also noted during logging Figure (16).

RC drill chip samples were sieved at 1 m intervals to produce a sub ‐sample to act

as a visual reference material. These samples are stored in plastic chip trays as

shown in Figure (20)

Figure (20) Picture showing a 1m interval sieved RC chip sample in a chip tray.

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Figure (16). Example of an RC geological Log.

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3.17.5 Sample preparation, analyses and security

All samples collected on the project were subject to quality control procedur

es which ensured the use of industry best practice in respect of handling,

sampling, transport, analysis, storage and documentation of sample materials and

their analytical results.

3.17.6 Sample Submission Procedures

When samples are dispatched to the laboratory, a completed sample submission for

m accompanies the samples. The submission form details the sample number

sequences and also instructs the laboratory on the elements required for analysis

and the analytical methods to be used.

3.17.6 Sample Preparation and Analysis All rock chip samples were crushed to a nominal crush size of 80% passing

<2mm. Samples are weighed before and after crushing.

A single tier splitter was used to produce a split of the original sample for dis

patch to the assay laboratory. Compressed air is used to clean the crusher

and splitter

Laboratory samples were placed in new plastic bags, with the sample ticket i

ncluded, and the sample number written on the outside of the bag. The

plastic bag containing the assay sample is then sealed with a cable tie.

A crusher flushing sample of barren vein quartz was used to clean the

crusher plates after 20 samples and at the end of individual sample batches.

All samples were analyzed for gold by Aqua Regia with lead and AAS finish

in DAL Mining laboratory.

Statements of DAL Analytical Laboratory Services

DAL Analytical Laboratory Services ensures that the laboratory staff is

competent enough to perform the analysis requested.

Use validated methods to achieve accurate and reproducible results with

equipment that is maintained and calibrated to achieve the highest levels of

performance.

Sample preparation

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Continually monitor the efficiency of crushing and pulverizing to avoid

contamination and ensure that a representative portion of each sample submitted is

prepared .Samples duplicates are created and analyzed for all rock s and drill

samples submitted.

Quality Control and Quality Assurance

DAL Analytical Laboratory Services insert references material, replicates and

blanks into randomly assigned positions with each analytical rack. These QC

samples provide a final verification of the entire analytical process.

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4. Resources estimation

4.1Introduction

The resource estimate includes data derived from RC drilling supplied by Golden

Ideas Mining. Details of this sampling and assay are described in previous sections

of this report. . Surpac Vision (6.6.2) software was used for data

compilation, domain wire‐framing, coding of composite values and for resource

estimation. The resulting estimates were imported into Surpac Vision for

resource reporting. The estimate was prepared using. Results from 16 boreholes.

The mineralized part of these boreholes were analyzed and used in the resource

estimation. A block model was created in Surpac Vision (6.6.2) software using a

block size with dimensions of 5m x 5m x 5 m.

4.2Models

Many different models were created in this study; one of the most

important models are topographic model since the quality and adequacy of

topographic control have direct affect on the resource estimation model.

Golden Ideas Mining conducted a full topographic survey program using Trimble

Gps an advance and very accurate survey tool.

Topographic model

Plate (21) Trimble Gps

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Figure (17): topographic map

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4.3 Drilling modeling

Based on the theory of geostatistics and application of Surpac software, a three

dimensional geological model of gold deposit is constructed. The process of

building the database mainly includes exploration information collecting in the

mineralized areas. Geological data include the results of RC drilling, surface pits.

The distribution of lithology and faults was recorded by geological logging

procedures, and then the verified data was imported into Surpac database

module to construct a proper format of three- dimensional geological

database. By using geological database to store geological information, the three-

dimensional geological model had been established more accurately and

comprehensively, which lays a foundation for subsequent resource evaluation. The

collected geological data of 16 drilling boreholes from the research area were

used to establish four basic tables: collar table, survey table, assay table

and lithology tables. Among them, drill hole collar table mainly includes

drill hole collar coordinates, borehole depth, borehole type and trenching

time survey table mainly includes drill hole orientation and inclination

and inclination depth; assay table mainly includes original chip or pulp

sample analysis results (including gold grade information); lithology table

mainly includes information of rock type, stratum, mineral and alteration. After

that, the established geological database is validated by three-dimensional

software, and the DTMs and 3DMs are established in Surpac software based on

proper interpretation methods.

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Figure (18): Drilling modeling

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Figure (19):Combination of trenches and drill holes model

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4.4 Solids Models

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Figure (20): Different views of geological solid models

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Solid report

4.5 Sample compositing

Geological statistical analysis of database data and estimation of block model by

sample grade or body weight require that every sample has the same

weighting which means that the entire sample should have the same sampling

lengths. Thus, the analysis results are assured in the reasonable estimation process.

Therefore, before the basic statistical analysis and variance function analysis of

samples, it is necessary to commence samples compositing. There are few

different sample combination methods which include along the sample

direction compositing method, bench compositing method, geological domain

compositing method, ore body internal compositing method and so on. For this

study, the method of compositing along trenching direction with geological region

method is adopted. In the process of sample composition, the influence of the

average lengths of original samples, exploration lines spacing, minimum mining

unit (MMU) and block model size are all considered for determination of final

compositing lengths

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Figure (21): 1 meter composite length was used

4.6 Basic statistic results of the Gold assay data

Figure (22): a histogram showing the frequency and cumulative frequency of gold grade

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Figure ( 23): Grade outlier restriction (top cut) used in the study

4.7 Grade outlier restriction (top cut)

Outlier grades were assessed by examining probability plots of the Au

assays Within the domain. Cut off was applied to be16g/t .

Figure (24): Grade outlier restriction histogram

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Figure (25): cumulative frequency curves after appl lying cut off

4.8 Block model

The block model is essentially a set of specifically sized "blocks" in the

shape of the mineralized orebody. Although the blocks all have the same

size, the characteristics of each block differ. The grade, density, rock type

and confidence are all unique to each block within the entire block model.

Three kinds of block models are found, nearest neighbor polygon, inverse

distance squared and ordinary kriging. The techniques are weighting scheme

which is based on the principle that block content is a linear combination of

the grade data or the sample around the block being estimated. The method

used in this study is inverse distance one. Once a block model is created and all

attributes defined, they must be filled by some estimation method. This is

achieved by estimating and assigning attribute values from sample data which has

X Y Z coordinates and the attribute values of interest.

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Figure (26): The block model of 5x5x5 m & 2.5x2.5x5 m sub block.

4.9 Block Constraints

This is the engine of the block model. Constraints are the logical combinations of spatial

operators and objects that may be used to control the selection of blocks from which information

may be retrieved and/or into which interpolations may be made. When applying constraints,

Surpac applies a “centroid rule”. Blocks are sub-celled along the edge of the constraint. If the

centroid of the parent or of the sub-block is “inside” a constraint, the entire sub-block or parent

block cell volume is reported, or a value is interpolated.

4.10 Blocks and Attributes

Records in the Block Model are related to blocks. These are cuboid partitions of

the modeled space and are created dynamically according to the operations

performed on the Block Model. Each block contains attributes for each of the

properties to be modeled. The properties or attributes may contain numeric or

character string values. Every block is defined by its geometric centroid and it’s

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dimensions in each axis. Blocks may be of varying size defined by the user once

the block model is created.

Figure (27): Block model coloured by attribute values

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4.11 Variogram map

Figure (28):Variogram map

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Figure (29): block model showing attribute values

Figure(30):Ordinary kriging (Interpolate block values using kriging with variogram parameters

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4.12 Classification of mineral resources

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4.13 Pit optimization

The Pit Optimizer works on a block model of the deposit where each block must

have a net value that represents the economic value that will be returned if that

block is extracted in isolation. The Pit Optimizer then considers each of these

blocks in turn to work out which combinations of blocks should be mined in order

to return the highest possible total value given mining constraints for a particular

sale price. The result is a 3D surface that represents the base / limit of the pit that

maximises the total value of the mine and any further extension of the pit will not

increase the total return

4.14 Pit Slopes

The golden ideas pit is designed for 10 m bench heights based on consideration of

the loading equipment capabilities (mining height and reach), production drill

configuration, and geo-mining conditions. The golden ideas pit is designed for 10 m

bench heights based on consideration of the loading equipment capabilities (mining

height and reach), production drill configuration, and geo-mining conditions. This

may be modified during future detailed planning and equipment selection. Factors

That May Affect the Mineral Reserve Estimate. The following factors may affect

the mineral reserve estimate

* Gold price

* US dollar exchange rates

* Geotechnical assumptions

* Ability of the mining operation to meet the annual production rate

* Mill recoveries

* Capital and operating cost estimates.

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4.15 Design Parameters

- Open pit parameters are surmised below:

* Bench height of 10 m *Bench slope 70⁰

* Berm width of 5 m

* Ramp width of 15 m * Ramp slope 10⁰

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Figure(31):bottom view of pit in zone one

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Figure (32):3D view of final pit design

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Figure (33): Plane view of final pit design

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Figure (34):Block model and 3D pit design

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Figure (35):Block model and plane pit design

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4.16 Classification of Mineral reserve

Category Ore tons Waste tons Grade g/t Gold content

g

Stripping ratio

Open Pit materials

354,811 2,004,933 3.65 1,295,060 5.6:1

Table (7): Summary of ultimate pit stripping ratio

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5. Mining methods

5.1 Open Pit Mine Plan

The pit will be mined in open pit with a generally strong and competent rock mass.

Pit slope stability will be controlled by the structural condition of the rock mass

rather than inherent weaknesses. Given the gold grades and proximity to surface,

the deposits will be mined via a conventional truck and excavator open pit mining

method. The deposits will be exploited through one pit approximately50 m deep.

Generally we can say there is scope for larger pits under improved geotechnical or

financial conditions, or an increase undefined mineralization below the base of the

pits.

Gold grade distribution and the results of preliminary mineral processing testing

indicate that ore from this deposit can be processed by conventional leaching

method. The method of material transport evaluated for this study is open pit

mining using excavators and trucks of 18cubic meter capacity.

Waste material from pit will be loaded into the haul trucks and dumped directly to

the waste dumps zone located 300 m south west of the pit opposite to ore dip

direction. Ore production is planned at a nominal rate of 500 tpd, equivalent to

167,500 tons per annum. Mining is planned on a 6 day per week schedule, with

two 8 hours shifts per day, 335 days per annum. Peak ore and waste production is

estimated at 500and 2800 tpd respectively. The average of mine stripping ratio is

5.6:1

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Figure (36): open pit terminology

5.2 Mine design

The bench design is followed as per bench elevation at 10m interval with 75º slope and2.6m bank width.

10m Bench height

3m bench width

75o Bench face angle

2.6m Bank width

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Figure (37) bench dimensions

5.3 Mine roads & ramps

Haul roads are designed at 10 % gradient with a width of 12 m on exposed

grids/triangles keeping batter slopes at 57 degrees cut and 36 degrees fill.

Figure (38) mine road and ramps design

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Road width 15m

ramp gradient 10 degree

Pit total slope 75 degree

5.4. Waste dump design

Proposed area of overburden dumping is chosen to be about 300m south west of mine area. Dump design is made for every stage of the project keeping the dump

deck height as 30m, dump slopes at 28 degrees and berm width as 30 meters for allowing safe transport.

5.5. Mining Equipment

Mine production equipment provided will be 2 excavators (1 m bucket width) and

4 trucks of 18m3 to achieve 167,500 tons of ore per annum 1 motor grader one

dozer and one drilling machine for blasting and grade control purposes.

5.6. Drilling and blasting

Mining by conventional open pit methods of drill and blast followed by load and haul will be employed. Drilling and blasting, when need, will be performed on 5m

benches. Loading of the material will be performed on two 2.5m flitches. The mining fleet as mentioned earlier, will consisting of two hydraulic excavators with

bucket capacity of 1m3, and off highway trucks with 18m3 capacity. Rigid frame

diesel trucks and their mechanical capabilities are well respected, Waste material will be hauled to the one allocated waste rock dump positions to

the west of the pit. Some waste material will be required for infrastructure such as the tailings storage facility and hauling road construction.

As a considerable fraction of the oxidized overburden is considered to be softer than the underlying fresh rock, an estimated 60% of the oxidized material will not

require blasting and will “free-dug”, or ripped with a dozer.

The pit configuration bench height and waste material type anticipated at the

project suit drill rigs capable of drilling drill holes with a diameter of 76 - 109mm.

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Drill burden, spacing and sub-drill design will be functions of the varying material

types of the deposit in terms of its geometry, geological and grade continuity.

6. Recovery method- Heap leaching process

6.1Introduction

The Golden Ideas heap leach plant design has a nominal 182,000 t

throughput capacity utilizing a primary, secondary crusher and ball mill Figure

() to generate an 80% passing 0.8-1mm product. This material is then fed through

an agglomeration drum where lime and cement are mixed to form

agglomerates for transport by conveyors to the heap leach pads via overland and

grasshopper conveyors and radial stacking system.

Figure (39): Overall Process Flow Diagram

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Figure (40): Plant Layout

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A design comprises 8 cells with a 100m length and 50m each width and designed

to receive ore in 7m lifts. A weak cyanide solution will then be introduced to the

heaped cell and gold bearing solution collected on the impermeable plastic liner

under the stacked ore (Figure (41&42).

Figure (41): A design comprises 8 cells with a 100m length and 50m

Gold bearing solution will then be pumped to a 240m3/hr carbon in column circuit

comprising 6 countercurrent carbon contact tanks for adsorption onto carbon

(Figure 42). Loaded carbon is then removed periodically reporting to the elution

circuit for gold recovery and subsequent electro winning and smelting to gold

bullion (Dore). The bullion is then shipped to the Khartoum gold refinery for

refining.

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6.2 Heap Leaching Operation

The ore will be transported from pit to the heap leaching plant located about 1000

m to the south. The actual reserves estimation is 358,811t with average grade of 3.65 g/t. The actual plant can receive 182,500 tons per annum. The ROM pad will

be used to provide a buffer between the mine and the plant. Separate stockpiles will be constructed to allow blending of different grade types to be carried out

using the front end loader, to ensure that a consistent grade and hardness will be delivered to the plant.

The process is a typical heap leaching operation consists of an open pit mine, a mill to process some or all of the heaped ore, a flat area with an impermeable

foundation where heaps are going to be built plate(22), a barren solution pond containing cyanide solution ready for heap spraying, a pregnant pond containing

cyanide solution draining from the heap area, a building housing a Merrill-Crowe or carbon adsorption process plant for precious metal recovery from the

pregnant solution, a laboratory for the analysis and classification of ore and accounting of “values” in all process streams, maintenance area for repairing trucks, tractors, drills, pumps and other mine equipment and amine administration

building.

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Plate (22): a flat area with an impermeable foundation where heaps plant is going to be built

Ore is hauled from the mine to either the heap leaching area or the milling plant

depending on ore grade and mineralogy. In either case, ore eventually finds its way

into a heap and is sprayed with a weak NaCN solution pumped from the

barren solution pond. The cyanide solution percolates through the heaped ore

becoming “pregnant” with precious metals and drains from the heap into lined run-

off ditches. The pregnant cyanide solution collects in the pregnant solution pond.

Pregnant solution is pumped from the pregnant solution pond into the precious

metal recovery plant which is activated carbon adsorption unit. The now barren

cyanide solution is pumped to a holding basin, where lime and cyanide are added

to repeat the leachingprocess. In the carbon adsorption unit, the activated carbon

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adsorbs the gold. Gold bearing carbon is chemically treated to release the gold and

is reactivated by heating for future use. The resultant gold bearing strip solution,

more concentrated than the original pregnant cyanide solution, is treated at the

process plant to produce a Dore, or bar of impure gold. The Dore is then sold or

shipped to smelter for refining. Gold can be recovered from its ores by a variety of

methods, including gravity concentration, flotation, and agitated tank leaching.

Methods similar to heap leaching can be employed: dump leaching and vat

leaching (vat leaching isthe treatment of sand or crushed ore in bedded vats with

rapid solution percolation).First typically, heap leaching is chosen for basic

financial reasons for a given situation, it represents the best return on

investment. For small operations or operations in politically unstable areas, it

may be chosen because it represents a more manageable level of capital

investment. areas, it may be chosen because it represents a more

manageable level of capital investment.

6.3 The stages for heap leaching

1. Ground Preparation and pad construction: Here the soil on a slightly sloping ground is compacted and covered by an impermeable pad (can be made of

plastic). 2. Ore stacking: Then the crushed ore is stacked in the form of big heaps.

Amount of fines is decreases as low as possible to improve permeability. 3. Then the leaching agent such as cyanide or acid is sprayed over the heap.

4. As, the reagent passes through the heap; the valuable metals get dissolved in it.

5. The solution containing metal is drained from the heap and collected in a pond and the solution is sent for subsequent process for metal recovery.

6.4 Elution, Carbon Regeneration and Gold Room Operations

The following operations will be carried out in the elution and gold room areas:

Acidwashing of carbon. Optional cold cyanide washes to remove copper and/or zinc from loaded

carbon. Stripping of gold and silver from loaded carbon using the split AARL

method. Electro winning of gold from pregnant solution. Filtration of electro winning sludge.

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Removal of mercury using a mercury retort. Smelting of retorted products to produce a gold doré.

The elution and gold room areas will operate seven days per week, with the

majority of loaded carbon preparation and stripping occurring during day shift.

6.5Acid Wash

Loaded carbon will be recovered on the loaded carbon recovery screen and

directed to the rubber lined acid wash column. The acid wash column fill

operation will be controlled manually. All other aspects of the acid wash and the

carbon transfer sequence to elution will be automated. Acid washing of the carbon

will commence after carbon transfer is complete.

Dilute hydrochloric acid, 3% w/w HCl, will be prepared prior to use and stored in

the dilute acid make‐ up tank. During acid washing, the dilute solution of

hydrochloric acid will be pumped into the column in an up‐flow direction to

remove contaminants, predominantly carbonates, from the loaded carbon. This

process improves the elution efficiency and has the beneficial effect of reducing

the risk of calcium‐magnesium 'slagging' within the carbon during the regeneration

processAfter the soak period has elapsed, the loaded carbon will be rinsed with

treated water. This rinse water will displace any residual acid from the loaded

carbon.Acid‐washed carbon will be hydraulically transferred to the elution column

for stripping.

6.7 Electrowinning

Soluble gold recovery from pregnant solution will be carried out by electrowinning

onto stainless steel cathodes. The electrowinning circuit will consist of three

electrowinning cells in parallel, each containing a number of cathodes. A

dedicated rectifier, per electrowinning cell, will supply the necessary current to

electroplate the gold onto the cathodeOnce sufficient pregnant solution is

available within one of the two pregnant solution tanks, electrowinning will

be initiated by starting the duty pregnant solution pump. The flow of pregnant

solution to the cells will be evenly split across the electrowinning distribution box

and manual control valves will assist the desired linear velocity to be achieved.

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During the electrowinning cycle the electrowinning cell discharge will be

continuously returned to the pregnant solution tank via gravity.Once the target

barren solution grades have been achieved, the electrowinning cycle is complete

and barren solution will discharge to the duty pregnant solution tank. Barren

solution from this pregnant solution tank will be returned to the leach circuit via

the barren solution pump, a number of gold room vent fans will be provided to

ensure there is adequate ventilation inside the gold room

6.8 Gold Room

Upon completion of electrowinning, precious metal sludge will be washed off the

cathodes with a high pressure cathode washer. The gold and silver bearing sludge

will gravitate to a sludge hopper, from where it will be pumped to a pressure filter.

Retort product solids will be mixed with a prescribed flux mixture (silica, nitre and

borax), prior to being charged into the diesel fired gold furnaceThe fluxes added

will react with base metal oxides to form a slag, whilst the gold remains as a

molten metalThe molten metal will be poured into moulds to form doré ingots,

which will be cleaned, assayed, stamped and stored in a secure vault ready for

dispatch.

.

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7. Capital and operating costs The basis of the mining cost estimate using analysis of different factors that may affect mining operation like gold price ,political, social and economic conditions

and also similar mining companies’ costs estimates. This mine is an open pit mine producing 500 tons ore and 2800 tons waste per day(strip ratio is found to be

5.6:1). Rock characteristics for both ore and waste are typical of those of quartz or altered chlorite schist and amphibolites material. Operating conditions, wage

scales, and unit prices are typical for Sudan mining operations. All costs listed are in US$. The key design criteria, operating schedule, equipment, personnel, supply

requirements and costs are listed below:

7.1Direct Capital Costs ‐ Mining

Equipment Number Size Cost $

Hydraulic Shovels 2 1.0 cubic meter

270,000

Front-end Loaders 2 2 cubic meter

285,000

Rear-dump Trucks 4 25 metric ton

520,000

Rotary Drills 2 20.00 cm

110,000

Bulldozers 1 60 kW

650,000

Graders 1 115 kW

185,000

Water Tankers 2 9,500 liter

130,000

Fuel Tankers 2 9,500 liter 130,000

Light Plants 4 8.9 kW

60,000

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Pickup Trucks 4 680 kg 360,000

Total 2,700,000

Table (8) equipment list

7.2 Capital Cost Estimate – Process Plant and Infrastructure

The cost estimate has been compiled from a variety of sources, including m

etallurgical test work , comminuting modeling, first principle calculations and

vendor quotations .

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Table (9): heap leach plant vendor quotation

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7 .3 Manpower

Labour rates and overhead costs for workers were based on current country rates.

The labour rates are based on a skill level and consist of a base salary and the

required overhead allowances. Overheads include such items as work permits,

health insurance, social security and production bonuses.

№ Position Quantity SaSlaries/monthly

Salaries/yearly $

1 General manager 1 3,000 36,000

2 administration and finance affairs manger

1 1,000 12,000

3 Cost accountant

1 400 4,800

4 Secretary

1 300 3,600

5 Public relation & security

1 750 9,000

6 Legal advisor

1 1,000 12,000

7 Senior geologist 1 500 6,000

8 Site manager 1 750 9,000

9 Site accountant 1 400 4,800

10 Junior Geologist 2 400 14,400

11 Mine engineer 2 500 12,000

12 Survey engineers 2 500 12,000

13 Processing engineer 3 500 18,000

14 Mine labors 15 200 36,000

15 Factory labors 10 200 24,000

16 Geologist for geoformation database support

1 400 4,800

17 Exploration labors 4 150 7,200

18 Chief of Laboratory and

Sample preparation 1 750 9,000

19 Assay lab technician 1 300 3,600

20 Lab assistant 2 200 4,800

21 Specialist of sample

preparation 2 200 4,800

22 Crusher (sample worker) 4 150 7,200

23 Camp manager 1 750 9,000

24 Technician (all technical systems of camp)

1 250 3,000

25 Cook 2 200 4,800

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26 Cook assistant 2 150 4,800

27 Logistics Driver 6 150 10,800

28 Cleaner 4 80 3,840

security 2 200 4,800

Total 14,330 296,040 $

Table (10): Labour rates and overhead costs

7.4 Camp / Accommodation

Quotations were solicited from several facility service providers for the

design, construction operation and management of a construction and operations

camp with all necessary facilities, the Turkish company (Precon )for prefabricated

buildings and office containers, was chosen to build Golden Ideas camp. The

quotation wasbased on a number of accommodation units to cover the estimated

peak number of construction workers, operationsemployees and visitors anticipated

on site at peak manning. . Water will be supplied from the River Nile at

Kadabasvillage (Allocated about 30km to east of mine site) by tanker andpower

will be generated by diesel generators.

7.5 Plant Buildings

The following plant buildings have been included in the capital estimate:

Plant warehouse and office. Reagent storage facility.

Plant workshop and office. Main office building. Plant office and control room.

Clinic and emergency response building. Plant security gatehouse.

Light vehicle workshop (shared with processing and other departments). Spare parts warehouse.

7.6 Mine Buildings

The following mine buildings have been included in the capital estimate:

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Mining office for technical Personnel. Washrooms and ablution block.

Heavy vehicle workshop Tyre bay.

Explosives storage facility.

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Figure (42) Golden Ideas main camp and office design

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Main area Cost $ Remarks

Mine equipment 2,700,000

Treatment plant 1,507,103 Including design and civil work

Generator plant 195,000 For camp and. plant

Camp and offices 250,000 Including furniture

Subtotal 4,595,620

Contingency 15% 683,343

Grand Total 5,278,963

Table (11) Capital Estimate Summary

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7.7 Operating Costs – Mining

open pit mining costs were derived from first principle based on equipment

required and include pit and dump operations, road maintenance, mine supervision

and technical services cost. These costs were then compared with several other

similar operations in Sudan for budget pricing followed by validation against a

more detailed budget estimate. The average open pit operating cost (US$ /t mined)

is shown in Table ( ).

Supplies & Materials $/mt ore 1.0

Equipment Operation $/mt ore 0.3

Salaried Labor $/mt ore 0.5

Drill & blast $/mt ore 0.6

Miscellaneous $/mt ore 0.4

Load and Haul $/mt ore 1.0

Grade Control $/mt ore 0.10

total $/mt ore 3.9

Table (12): average open pit operating cost (US$ /t mined)

7.8 Operating Cost – Plant and Infrastructure

Process plant and infrastructure operating costs have been developed based on a

treatment rate of 182,000 of ore, with the plant operating 24 h/d, 365 d/y with a

91.3% plant utilization, nominally 8,000 h/y.The OPEX has been divided into

multiple cost centers, with fixed and variable costs

The estimate comprises the following major cost centers:

Plant and related infrastructure power. Plant consumables, including mill media and liners, reagents and diesel for

fixed plant equipment and plant mobile equipment. Plant maintenance materials, including mobile equipment parts.

Laboratory. Plant and administration labour.

General and administration costs.

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Table (13): average operating cost (US$ /t mined)

7.9 Summary costs

Table (14): Summary costs

Item Description Total cost$

Waste tons 1,986,941 6,934,293

Ore tons 354,811 1,383,762

Ore transport per ton 354,811 177,405

Stripping ratio 5.6:1

Ore grade 3.65 g/t

Ore recovery 75%

Gold content before recovery

1,295,060 gm Au

Gold content after

recovery

971,295 gm Au

Process Cost tons 2,050,907$

G&A Cost tons 1,64,433$ 2,703,100

Government Royalty 7%

Gold content after royality 679,906 gram Au

gold price per gram 40$

Selling cost per kilogram 45$ 30.595$

Revenue 38,851,800

Total Costs 11,198,591

Cash Flow 27,653,209

waste mining 3.5$/t

Ore mining 3.9$/t

Ore transport 0.5$/t

Process costs 5.78 $/t

Royalty 7%

G & A cost € 3.0 $/ton

Recovery 75%

Gold price 1300$ ounce

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Figure (43): Operating Expenses Split

20%

8%

3% 24%

13%

16%

16%

0% Waste tons

Ore tons

Ore transport per ton

Process Cost per ton

G&A Cost per ton

Government Royalty

Government Royalty

Selling cost per kilogram

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8 -References

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themetallogenic evolution of selected ophiolite complexes from the Sudan.

Berliner GEWISS. Abh. A. 145, 175.

Abdelsalam, M. G. (1993), Tectonic evolution of the late Precambrian

Nakasib Suture and Oko Shear Zone, Red Sea Hills, Sudan. Ph. D. thesis, Univ.

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Abu Fatima, M. (1992), Magmatic and tectonic evaluation of the granite-

greenstone sequences of the Sinkat area, Red Sea Province, NE Sudan, M. Phil

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Andrew, G. and Karkains, G. Y. (1945): Stratigraphy Notes, Anglo-Egyption Sudan.

Sudan Notes and Records. Vol 26, pp. 157-166.

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Almond, D. C., Ahmed, F. and Khalil, D. E. (1969): An excursion to the

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Almond, D. C., and Ahmed, F. (1987): Ductile shear zones in the northern Red Sea

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Ali, E, A. (2005): The Geology and Structural Evolution of the Area around

The River Nile Between Atbara and Abidiya, Nile State, Sudan: Remote

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Ali, S. E. M.(1979): The geology of the Homogar Group Volcanic rocks,

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Barth, H. and Meinhold, K. D. (1979): Mineral prospecting in the Bayuda Desert-

1336 pp., Unpubl. Rep. Fed.Inst. Geosci. Nat Resour., Hannover.