Navigating and meeting the listing requirements for an Initial Public Offering (IPO) can prove a daunting task. This is particularly true for explorers considering a listing on stock-exchanges such as the SGX (Singapore) and HKEX (Hong Kong). To consider a listing, both the SGX and the HKEX require at least an Indicated Mineral Resource Estimate under international reporting standards – JORC, NI 43-101 or SAMREC – substantiated in a Competent Person’s Report. As of August 2018, the Singapore Stock Exchange allows listing with only an Inferred Resource on their Catalist board, but an Indicated Mineral Resource estimate for listing on the main board.
SRK recently assisted two clients, exploring for vein-type tungsten mineralisation in Mongolia and focusing on a magnetite skarn in Malaysia. SRK helped the clients develop an exploration strategy for their assets in view of a smooth listing process. Both companies hold mining rights over known deposits with past or current artisanal to small-scale mining, supported by historic, non-compliant resource estimates.
SRK’s first task was to conduct a review of available data, supported by a site visit, to assess whether historical drilling data and samples could form the basis of a Mineral Resource Estimate. At the magnetite skarn project, core samples had been preserved, and recommended measures included re-logging the core with selective re-sampling and twinning of key holes where samples were not available. This review also allowed SRK to identify possible by-product mineralisation that had not been considered by previous explorers of the skarn. At the tungsten project, historical Russian surface mapping and underground sampling data were compiled, interpreted and compared with SRK field observations to ascertain exact location of the veins and associated exploration work.
SRK then prepared drilling programs that would support an indicated classification. 3D geological models were developed for each project from existing surface and drilling data to better constrain the mineralised bodies. The tungsten deposits featured narrow or discontinuous mineralisation in 0.5 to 1.5 m wide quartz-wolframite veins. The magnetite skarn consisted of hectometre-sized magnetite lenses. 3D modelling allowed SRK to delineate the most prospective areas and formed the basis for drill planning. In a longer-term strategy, a broader regional exploration program was developed to identify additional potential.
An important aspect of SRK’s assistance consisted in ensuring that best industry practices were implemented, starting from the initial procurement of drilling and sampling equipment to ongoing monitoring of data quality. Tailored standard operating procedures were prepared and on-site training provided for the rig and supervising geologists that focused on appropriate sampling and QA/QC. This particularly held true for the tungsten project, as deep drilling (400-500 m) targeted coarse-grained tungsten mineralisation characterised by a strong nugget effect.
On both projects, SRK’s experts in exploration, resource geology and project evaluation contributed to training on-site staff, and the elaboration of tailored and effective exploration strategies with a fast-tracked IPO in mind.
