NAMIBIAN PROJECTS 

Hope Copper-Gold VMS Project

The Hope Copper-Gold VMS Project comprises EPL5796, EPL6605 and EPL7170 (application), which cover 345km2, 579km2 and 310km2 respectively, totalling over 1,200km2 within the Matchless Copper Belt in Namibia. These tenures are located in central Namibia and straddle the boundary between the Erongo and Khomas regions; about 200km to the southwest of Windhoek, the capital of Namibia and 150km southeast from Walvis Bay on well-maintained gravel roads (Figure 1).

Virgo holds a 70% interest in the company that holds EPL5796 with option to increase to 90%; as well as an 80% interest in the company that holds EPL6605 and will hold EPL7170 if it is granted.

The key aspects of the Hope Copper-Gold VMS Project include:

  • Exclusive Prospecting Licences EPL 5796 and EPL7170 are located in the Namib-Naukluft Park (Namibian state protected area). Other mines and advanced mineral resource projects within Namibian state protected areas (or previously located within before being excluded) include: Langer Heinrich Uranium Mine owned by Paladin Energy (currently on Care and Maintenance), Skorpion Zinc Mine owned Vedanta Zinc International and Husab Uranium Mine owned by China General Nuclear Power Group; as well as the Etango Project owned by Bannerman Resources and the Reptile (Tubas and Tumas) and Inca projects owned by Deep Yellow. EPL6605 is located outside the Namib-Naukluft Park.
  • Hope Copper-Gold VMS Project contains multiple high-grade copper sulphide lenses including the Hope, Gorob-Vendome and Anomaly prospects; that are characteristic of the Matchless Copper Belt (Figure 2), which hosts two significant underground copper mines: Otjihase Mine and Matchless Mine (>16Mt @ 2.2% Cu & 1.2g/t Au and ~3Mt @ 2.2% Cu & 0.5-1.5g/t Au respectively)
  • Total combined resource estimate across Hope, Gorob-Vendome and Anomaly prospects of approximately 10.2Mt @ 1.9% Cu and 0.3g/t Au in accordance with JORC (2012) with 193kt of contained copper metal plus 103koz of gold and possible silver credits (Table 1)
  • Excellent prospects for growth of the current mineral resources and further discoveries as no modern, regional-scale exploration has been apply to the area
  • Historic drilling not assayed for gold but newer drill holes and surface rockchip samples indicate gold grades from 0.1 to 6.8g/t Au
  • The project comes with an extensive exploration database that contains 203 diamond drill holes have been completed for 33,500m of drilling
  • 140m deep exploration shaft in place and accessible on the project with 50m ore drives on two levels completed for metallurgical bulk sample
  • Metallurgical test work resulted in the recovery of 96% of the copper to a concentrate at 30% Cu grade via floatation
  • SRK completed an underground mining scoping study on the Hope Copper Project in 2012, which is readily updateable on the basis of current metal prices and increased mineral resources
  • Excellent infrastructure including road, rail and power facilities in close vicinity to the projects
  • Only 150km by road from the Walvis Bay deep-water port and rail network, which gives the project access to the Tsumeb smelter in northeast Namibia.

Figure 1: Location of the Hope Copper-Gold Project relative to infrastructure and other mines/mineral project developments.

Figure 2:  Copper Sulphide Mineralisation from the Hope Prospect

Table 1: Hope Copper Project Resource estimate in compliance with JORC (2012).

Rhinelands Copper Project

The Rhinelands Copper Project (Virgo interest 90%) covers an area of 185 km2 and is located approximately 400 kilometres to the northwest of Windhoek, the capital of Namibia (Figure 1). The project is easily accessed from the nearest major town of Otjiwarongo located approximately 200 km to the southeast on well-maintained gravel roads.

The key aspects of the Rhinelands Copper Project include:
  • Historic exploration by Falconbridge (1960-70s) identified two significant copper prospects in the Rhinelands Project area (Figure 2): Block E and G along the highly prospect Rehderstal Fault.

  • Block G prospect is the most advanced prospect within the Rhineland Project with three diamond core drill holes completed in 1969:


      • Drill hole RG1 intersected: 19.3m @ 1.53% Cu and 35.7g/t Ag from 25m, including 11.6m @ 2% Cu and 50.1 g/t Ag. Copper mineralisation included malachite, chalcocite, cuprite and bornite
      • Drill hole RG2 also intersected mineralisation returning 6.1m @ 0.71% Cu and 16.5g/t Ag from 85.5m depth
      • Trench sampling produced 25m @ 0.95% 


    • Drilling of a single hole at the Block E prospect in 1969 returned similar results to the Block G deep drilling proving that mineralisation continues to approximately 170m depth and that the width of the mineralisation is substantial


      • Drill hole RE1 intersected: 4.6m @ 0.3% Cu (visual est.) from 95.4m and 16.25m @ 0.3% Cu (visual est.) from 152.3m
      • Trench sampling produced 8m @ 1.7% Cu

  • Copper mineralisation associated with copper-magnetite-hematite-quartz veining and brecciation and is therefore interpreted to be IOCG-style

  • Rhinelands has demonstrated significant copper and gold exploration upside with prospective geology for nine kilometres of strike along the mineralised Rehderstal Fault

  • The Rhinelands Project also contains fluorspar mineralisation with a significant, historic Non-JORC mineral resource.
  • Excellent infrastructure: well-maintained gravel roads, powerline within 10km and rail within 100km

  • Historic IP target needs to be followed up with drilling. IP target anomaly underlain by magnetic anomaly at 350m below surface

  • First phase exploration to consist of drilling IP anomaly above the magnetic anomaly zone
Figure 1: Location of the Rhinelands Copper Project

Figure 2: Location of the Block G and E Prospects

BOTSWANA PROJECTS
Kalahari Copper Belt Project
  • Virgo Resources has acquired a 100% interest in the Kalahari Copper Belt Project located in western Botswana
  • Kalahari Copper Belt is an under-explored, emerging copper province that hosts major development projects including Cupric Canyon Capital’s Zone 5 deposit and MOD Resource’s T3 deposit
  • Kalahari Copper Belt has yielded several significant, copper discoveries by for Cupric Canyon Capital (US Private Equity) and MOD Resources (ASX: MOD; +A$50m Market cap)
  • In June 2019, MOD Resources announced they are set to be acquired by miner Sandfire Resources via a A$167 million scrip and cash deal.
  • In July 2019, Cupric Canyon Capital announced signing of a US$650 million project funding package to commence development of their high-quality Khoemacau Copper-Silver Underground Mining Project
  • Prospecting licences area in excess of 15,035km2 and are interpreted to cover a strike length of more than 200km of favourable geology with the multiple targets
  • Known deposits generally occur at the contact of the low and medium intensity magnetic features and are spatially associated with elongated, magnetic dome features
  • Northernmost licenses are proximal to some of the largest and highest-grade copper resources in the entire Kalahari Copper Belt:
  • Zone 5 (100Mt @ 2% Cu and 20g/t Ag)
  • Zone 5 Nth (26Mt @ 2% Cu and 40g/t Ag)
  • The two most promising areas on Virgo’s tenements, where the rocks of the copper mineralisation stratigraphic level are interpreted are shown in Figure 1 in yellow outlines
  • Magnetic domes represent volcanic basement rocks interpreted to be the source of copper mineralisation in the Kalahari Copper Belt
  • Magnetic domes are juxtaposed to major structures that were part of the original extensional rift architecture and have focused mineralising fliuds
  • Northern area has the most favourable infrastructure setting along the entire belt (power and water)
  • First phase exploration to consist of airborne/ground geophysical surveys and soil sampling program to identify new targets ahead of a maiden drilling program
  • Botswana is a stable, pro mining jurisdiction, supportive of mineral exploration and development
Virgo licenses are marked below with the red outline