AN APPRAISAL REPORT ON EMERALD POTENTIAL AT WINTER LIBBOHOLE MINE- CHIEF CHITINAS AREA MKUSHI DISTRICT IN THE REPUBLIC OF ZAMBIA

By RADAR GEOLOGICAL SERVICES

Mobile: 260-1-99 854926 E-mail: mwale_mw@yahoo.com Lusaka, Zambia

For
Winter Libbohole Rainbow Farm Institute P.O. Box 840010 Mkushi, Zambia.

@23rd February, 2007. Private and Confidential. All Rights Reserved.

CONTENTS
Executive Summary 4 Synopsis 4 Location 4 Access Previous Work5 Objective of the Investigation 6 Origin of Emeralds in Zambia 6 Emerald Mineralisation Model in Ndola Rural Emerald Area 6 Summary of the Regional Geology 7 Summary of the Local Geology 7 Lithology 8 Laterite 8 Talc-Magnetite-Chloride-Amphibolite-Schist (TMS) 9 Talc Schist 9 The Pegmatite 9 The Quartz Veins 9 Tourmaline Vein 9 Beryl 9 Quartzite 9 Current Status of the Winter Mine and its Possibilities for Emerald Mineralisation 10 Reserve Status 10 Proposed Mining Method Further Exploration 10 Further Exploration 10 Interpretations and Conclusions 11 Recommendations 11 Bibliography 12 Figures 14 Annexes 17

List of Tables and Figures Figures Figure1 Figure2 Figure3 Figure4 Tables Table1 11 Page 5 14 15 16

Abbreviations Used BH TMS UTM Drill hole Talc-magnetite-chlorite-amphibolite schist. Universal Transverse Mercator

Disclaimer This report has been generated by Radar Geological Services for Winter Libbohole and reserves the right of copy right. Duplication of any part of this report is an abrogation and liable to prosecution.

Director

Executive Summary A large pit and about thirteen small trenches have been opened in the 265 hectare area. Large crystals dull green beryl samples were documented from the large pit. The plot has the favourable geology for emerald mineralization. Talc-magnetite-chlorite-biotiteamphibolite schists (TMS) underlie the plot. Other rock type includes the ridge forming quartzite. These schists have been intruded by quartz-tourmaline-feldspar-mica vein pegmatites. The feldspar has been completely kaolinised. The contacts between the schists and pegmatites composed of minute flakes of the phlogopite schists which could be the host to the beryl mineralization. 15-20 years is an estimate life span of the mine. Synopsis The Mine is wholly owned by Mr. Winter Libbohole. The Small Scale Mining Licence (GL597) was initially acquired on 20th January 2003 and is expected to expire on the 19th January 2008. However, this type of a licence may be renewed for another stipulated period. Its main activity is currently to try and mine emeralds in the Chief Chitinas area, Mkushi district. The company requested the author to carry out a geo-potential report in order to establish the possible target positions for emerald mining. The fieldwork was carried out between the 19th and 20th February 2007. The crew comprised of the author, Mr. M.Mwale (geologist), Mr. D. Banda, the mining engineer, Mr. W. Libbohole, the mine proprietor and the driver. This report gives the results of the survey. Location The prospect is located some 58km south west of the Mkushi town and about 14km from the Nkumbi turn off. From Mkushi to Nkumbi turn off is about 44km. This can be located on the 1329C1 topographic map sheet (figure1). In UTM coordinates the mine is centered on 35L 717593E-8488102N and is bound by the following coordinates: 716949 E- 8488642N 716809 E- 8488146N 717153 E- 8487407N 716824 E- 8487347N 718056 E- 8487643N 718266 E- 8488248N 718232 E- 8487948N 718787 E- 8488631N 717893 E- 8489427N The total area is 265 hectares.

Figure1. Location Map of Winter Mine Access The mine is accessed via the Mkushi-Kapiri highway to Nkumbi turn off and thence via a motorable bush track to the mine. Previous Work Data collected via oral interviews from the local people indicate that the prospect was initially discovered during the Rhokana Corporation Limiteds exploration programme of around the 1960s. The earliest work consisted of trenching, pitting and paint marking of the promising points. It was learnt that by 1996, numerous illegal activities were conducted at the prospect. During this time unknown amounts of gemstones were recovered. In 1963, C.J. Stillman, a geologist mapped the area under Geological Survey Department.

Objective of the Investigation The main objective of this research was to study the emerald potential of the plot in detail through detailed geological mapping. This meant the identification of favourable geology (a co-existence of quartz-tourmaline plus or minus muscovite mica pegmatite and talcmagnetite-biotite-phlogopite-tremolite-chlorite schist). Origin of Emeralds in Zambia The emeralds are found in Muva Supergroup rocks. These rocks are talc-chlorite schist, which appear yellowish green and the talc-magnetite-amphibolite schist. The schist was derived from ultramafic igneous rocks emplaced during the late Kibaran (Pre-Katanga) deformation event (1100 million years). The latest of this event was characteristerised by intensive pegmatitic activity with the introduction of boron, beryllium and fluorine through shear zones. The reaction of these fluids with the ultrabasic rocks resulted in crystallization of the emeralds in the contact zones between the ultrabasic rocks and the pegmatitic veins. The ultrabasic rocks provided Cr (0.07% in emerald, Silwa and Nguluwe1984) while the pegmatitic fluids provided Be. Emerald Mineralisation Model in Ndola Rural Emerald Area Emerald mineralization mainly occurs adjacent to the quartz-tourmaline pegmatite where the talc-magnetite schist has been altered to biotite tourmaline schist. The alteration zones range in thickness from 0-3m. The thickest development of alteration occurs around flatlying pegmatites. Where the pegmatites are steep, the alteration zones become narrow. The thickness of alteration zone is obviously controlled by the time allowed for the metasomatic fluids to be in contact with the host rock. Thus flat lying shear zones will allow a longer period of fluid-rock interaction than steeply dipping ones. Alteration and pegmatite intrusion are most likely related to shearing at the talc-magnetite schist - biotite schist contact, which facilitated fluid movement and emerald mineralization. The emeralds are closely associated with biotite in the talc schist but do not occur in the massive biotite-schist units, although they are found occasionally in narrow partings (25cm) of biotite schist in the talc schist. The emeralds are preferentially associated with flat-lying pegmatite bodies 30) rather than with the more steeply dipping intrusions. Within the reaction zones the emerald has several modes of occurrence: i) ii) iii) iv) in thin bands together with quartz surrounded by biotite together with quartz and tourmaline with or without biotite in biotite-rich layers within talc-biotite-tremolite schist rarely within 5-10cm outside the altered zones in the host talc magnetite schist

The best emerald mineralization is found beneath buckled gently dipping pegmatites, at the intersection of branching veins and between closely spaced veins, The emeralds commonly occur in pockets and as disseminations in the biotite schist, with individual crystals ranging in size from microscopic to as large as 25cm. Summary of the Regional Geology The rocks are all pre- Karroo, and the majority are of pre-Katanga age. There is a threefold division of the pre- Katanga succession based on lithology, structural deformation, and differing grades of metamorphism. There is no discernible break between the Mkushi Gneiss and Irumi Formations which may be genetically linked. The transition from schist to gneiss is gradual, and their interrelationship is open to alternative explanations. One view, put forward by Truter (1935), is that the whole sequence is a normal metasedimentary one, with the lower part feldspathised. Another possibility is that the transition from gneiss to schist represents a structural gradation, with the gneiss forming the cores of domes or anticlines which have been marginally sheared to phyllonitic schist. Both are in part correct. In any case, the intensity of deformation to which the Mkushi Group has been subjected has led to structural parallelism and has effaced the evidence for any discordance which may have existed. The Musofu Formation comprises conglomerates, quartzites and schists lithologically distinct from those of the Irumi Formation: Much of the sequence is composed of fine grained mica schist interbedded with thin quartzites, the latter containing many lenses of conglomerate. The boundary between these rocks and the Irumi Formation is in part over thrust, south of Musofu and across the north-west of the area. The Kalonga Formation, named after Ackermann's Kalonga Series, consists of impure, silty, and pure quartzites, siltstones and slates, and is separated from the older rocks by a strong structural and metamorphic unconformity. Narrow in folds of Kalonga metasediments form the Irumi-Mwendafie and Mwanza Chawa-Maseve synclines, but more extensive developments are found immediately to the east in the type-area (Ackermann and Forster 1960) and to the north-west in the Ndola area (Moore in prep.). In an earlier publication Stillman and Simpson (1963, p. 3) assign the massive quartzites forming the flanks of the lrumi-Mwendafie and the Mwanza Chawa-Maseve synclines to the Irumi Formation and correlate them with the Lower Muva. This assumption is based mainly on. the petrographic similarities of the quartzites to rocks which demonstrably belong to the Mkushi Group and which had been involved in all the phases of folding affecting the group. The lack of evidence in the massive quartzites of such complex folding is ascribed to their pure quartzose lithology. New evidence, based largely on photogeological interpretation of the Mkushi and adjacent areas, suggests that these socalled" Irumi quartzites" are the basal members of the Kalonga Formation. This hypothesis offers a solution to the problem of the continuity of outcrop of the quartzites in the direction of late (east-north-east) folding; it explains the persistent juxtaposition of quartzites and beds of the Kalonga Formation; and by the transfer of the" lrumi " quartzites to the Kalonga it simplifies the interpretation of the age determination from the Mtuga aplite (p. 9). Furthermore, the grounds of petrographic similarity on

which the initial correlation rests should be approached with caution, since pure quartzites generally have few diagnostic features. Rocks of Katanga age crop out along the international boundary with the Congo and in a large basin south of Lusale Hill (the Munsakamba syncline of Brock 1940, p. 101). Along the Congo border Lower Roan current-bedded feldspathic quartzites and coarse conglomerates overlie with strong unconformity quartzites and schists of the Musofu Formation and, in one locality, metasediments of the Kalonga Formation. Within the Lusale basin the Lower Roan conglomerates are succeeded by argillaceous and dolomitic rocks believed to belong to the Upper Roan. These are overstepped by a tillite which, with the overlying dolomitic limestones, shales and siltstones, is assigned to the- Kundelungu Series. Large bodies of gabbro and dolerite intrude rocks of the Irumi Formation and have undergone the same phases of metamorphism and deformation as the host-rocks. Granitic rocks are widespread, and several of the larger masses are thought to have been produced by ultra metamorphism. Granite, pegmatite and aplite dykes are common, particularly in the Mkushi Gneiss Formation, and abundant quartz and quartz-tourmaline dykes and veins in the quartzites may be equivalent to pegmatites in a different host-rock lithology. Several ages of intrusion, apparently related to the various orogenic episodes, can be recognised. The structure of the pre- Kalonga rocks is complex; a strong east-north-east (Irumide) refoliation almost obscures the evidence of early approximately north-south (Tumbide) and later north-east folding in the metasediments: It seems to be most intense in narrow belts a mile to 2 miles wide, marginal to the elongated synclines of the Kalonga Formation, and in the intervening areas the earlier structures are sometimes preserved. There is little evidence of the post-Katanga Lufilian folding, but linear and planar structures trending north-north-west and preserved in some of the areas where the eastnorth-east refoliation is weak may belong to this period of deformation. These cross earlier structures and are cut and in some cases reoriented along an even later east-northeast foliation, indicating rejuvenation on the lrumide trend after the Lufilian folding (after C.J. Stillman 1963). Summary of the Local Geology A total of 13 pits and trenches have been opened on the plot. These have since become part of the source of information for the geological mapping. The plot is underlain by talc-magnetite-chlorite-biotite-amphibolite schists. These schists have been intruded by quartz-tourmaline-feldspar-mica vein pegmatites. A narrow jointed ridge forming quartzite traverse the lower part of the plot in the northeastsouthwest direction while on the northern end the quartzite forms a hill running northsouth. The deposit type seems to be a vein stock work. Lithology Laterite The laterite forms the top most cover averaging about 2-3m. In most places it has been compacted so much that only blasting can remove it.

Talc-Magnetite-Chloride-Amphibolite-Schist (TMS) Stratigraphically, the TMS forms the bottom of the pit (as at the time of field visit). This varies in colour from light green to deep green when fresh and whitish grey when weathered. It has a got a soapy feel due to talc presence. The weathering away of the magnetite crystals leaves brown stained pits on the rock surface making it appear spotty or vuggy. Iron staining is common along the schistosity plans giving the rock a brownish tint. A massive TMS was observed at UTM-717482E-8488130N trending at 050oNE. The amphiboles are acicular. The schists are intruded by the pegmatites. Talc Schist The talc schist exists either as long shiny silvery leaf-like and flexible minerals or a massive greenish-white rock. It can easily be folded. When flaky, silvery and shiny it can almost be confused with muscovite mica schist. This was observed at UTM-717236E8487996N The Pegmatite The pegmatite is composed of quartz, black tourmaline, muscovite mica, biotite mica and feldspar. Tiny phlogopite flakes are sometimes present. Most of the feldspar, almost 80%, has been weathered to kaolin (a white clay material). The tourmaline in the pegmatite is massive but highly fractured. Inside the main pit, the pegmatite was observed at UTM717547E-8488100N trending at 038oNE. These pegmatites intrude the TMS. In the contact zone of the intrusions small brown shiny flaky minerals (phlogopite) are noted. The Quartz Veins The observed quartz veins cut the schists discordantly and are highly fractured. They are either smoky or white in colour. Tourmaline Vein The tourmaline veins exist in two forms. Either as fused acicular crystals or as large massive crystal. A large single crystal outcrops at UTM-717096E-8487986N. Beryl Dull greenish crystals were noted and reported to have come from the main pit. This is the hope of emerald mineralisation. Quartzite The quartzite in the plot form ridges. There is a northern hill locally known as Chifunda Hill. The quartzite is sheared and fractured. This has an orientation of N-S. The NE-SW

low lying ridge is narrow averaging 5m in width and banded. Vertical to subvertical fracture systems trending 026oNE are common. The low ridge cuts through the entire mine plot. Current Status of the Winter Mine and its Possibilities for Emerald Mineralisation. In the area of study all of the pits exposed all the primary conditions for emerald mineralization and one outcrop exposed good TMS. Although most pits on the northern part of the plot could not be well examined due to debris and grass coverage, it is believed that they could not provide useful information on favourable lithology for emerald mineralisation. From a geological point of view, taking into account the situation at Winter Mine it was noted that the main and active pit lies on the highest part of an anticline structure thereby exposing all favourable geology within a meters from the surface for the emerald mineralisation.
The possibilities of emerald mineralization at the moment are so evident determined by the fact that all necessary ingredients lithologies are present.

Reserve Status At the time of field investigations, it was not possible to estimate the reserves because no drilling was conducted. However, the eye view status of the mine, the life span is estimated at 15-20 years. Proposed Mining Method Further Exploration The proposed mining method is open pitting by benching. At least the benches should be of 1m high by 3m wide. A clean rump for machine entry to the pit should be designed. Figure4 shows the immediate pit extension direction to be taken when mining commences. It is also suggested that mining should be carried out in stages. In figure2 red, blue and green rectangles show phases 1, 2 and 3 respectively. The new proposed waste dumping zone is represented by the letter X on the same figure2. Further Exploration The presence of direct evidence for the presence of TMS and typical pegmatites and tourmalines favours very little further prospecting by way of drilling (reverse core method) to ascertain the findings of what the geophysical survey would show. For cost effectiveness, deep trenches approximately 5m deep may be used instead of drill holes. The core drilling of up to 40m is recommended to check the presence, thickness, attitude and possible reserves of TMS and the typical pegmatite in the extension areas. The proposed boreholes/trenches are BH1-BH10 on figure3 and the following table1 shows the exact positions to either drill or trench.

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BH identity BH1 BH2 BH3 BH4 BH5 BH6 BH7 BH8 BH9 BH10

X-coordinates Y-coordinates 717000 8488400 717400 8488400 717800 8488400 717000 8488000 717400 8488000 717800 8488000 718200 8488000 717000 8487600 717400 8487600 717800 8487600 Table1. Location of borehole/pit

Interpretations and Conclusions For emerald to exist certain conditions have to be met. First and foremost the talc magnetite-tremolite-actinolite-chlorite schist (TMS) has to co-exist together with a pegmatite vein (quartz-tourmaline-muscovite-biotite). The two components have to be in contact with each other. The pegmatite will provide the necessary fluids while the TMS will provide chromium which will give the green colouring to the emerald so formed. The
contacts between veins and the talc schist are metasomatically altered to a biotite-phlogopite rock. It is these biotite-phlogopite contact zones that form the main ore bodies yielding the

vast majority of the emeralds. In some cases mineralization extends deeper into the unaltered country rocks up to distances of 8-10 meters from the veins. Such mineralization is nevertheless much poor. In rare cases emeralds are found within the veins themselves. It should be noted that the distribution of emerald pockets even within the richest zones is very erratic and irregular. The TMS and pegmatites are essential ingredients for emerald mineralization because they are a potential source for chromium and beryl, respectively. The mine has a good potential for emerald mineralization. This is shown by the presence of beryl.

Recommendations
All the waste around and near the pit should be removed to a site preferably southeastern part of a narrow low lying quartzite ridge which traverses the entire plot. Only contacts between the pegmatite and the TMS should be targets for emerald production. During mining, strict benching of 1m high by 3m wide should be adhered to. This makes mining easier and safer. The camp position should be changed to another location also to pave way for further exploration.

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If economic production of emerald does not begin at the depth of 25-30m, then it will not be viable to continue excavating. In order to get deep seated pegmatite signatures it is recommended to carry out a spectrometric or radiometric survey. It is better to trench/pit for exploration for it cheaper. Only when this fails should drilling be employed. Bibliography Banda, G.C, 1988. Geological report for plot 373. (Kafubu block). Unpubl. Report.
Beus, A.A., 1979. Sodium a geochemical indication of emerald mineralisation in the Cordillera Oriental, Colombia. J. Geochem. Explor. 11: 195-208. Cook, D. and W. Kirk, 1995. Rocks and Minerals. Larousse, London, 192pp (p 102). ISBN 0 7523 0009 1.

Harmer, P.D., 1969. Miku beryl location: MT 3158 (Unpubl. Rep.). Hickman, A.C.J., 1972. The Miku emerald deposit. Econ. Rep. geol. Surv. Zambia 27, 35pp. Hickman, A.C.J., 1973. The geology of the Luanshya area: explanation of Degree Sheet 1328, NW quarter. Rep. geol. Surv. Zambia 46, 32pp. Kabengele, H., 1989. Application for mining licence Lubombo Mining Company Limited, plot 5G, Kafubu south Emerald Area. Unpubl. Rep. Kalasa, Y.C., 1989. Geological report for the year ending 30 November 1989, plot 11A. Unpubl. Report. Kalumba, B.M, 1989. Geological report for renewal of mining licence (ML95) Unpubl. Rep. Kamanga, R., 1990. Geological report on area PL 311. Unpubl. Rep. Kapumpa, C., 1991. Geological report for renewal of mining licence ML 119. Mendelson, F., 1959. The structure of the Roan Antelope deposit. Trans. Min. Metall. London. Mendelson, F., 1959. The geology of the Northern Rhodesia Copperbelt. Oliver and Boyd, London.

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Money, N.J., 1995. Investment opportunities in Zambia. geol. Surv. Zambia.

Mulela, L., 1993. Geological report on Mpata Hill Limited prospect. Unpubl. Rep.

Muyovwe, C. 1991. Occasional report. ZIMCO Ltd. Minex Dept. Unpubl. New, Y.Y. and G. Grundmann, 1990. Evolution of metamorphic fluids in shear zones: the record from the emeralds of Habachtal, Tauern Window, Austria. Lithos 25: 281-304. Njamu, M.F., and F.K. Sakungo, in press. Geological map of the Kafubu Emerald area, 1:50,000-scale. Unpublished. (Available on CD). Ray, A.K., 1983. Preliminary stratigraphic column of Zambia. geol. Surv. Zambia. Schmetzer, K. and H. Bank, 1981. An unusual pleochroism in Zambian emeralds. J. Gemm. 17: 443-445.
Seifert, A.V., Vrna, S. and V. ek, 2002. Lithological, geochemical and petrological research on beryl mineralisation in the Kafubu area, Zambia. Rep. Czech Geol. Surv. 2/2002, Prague, 81pp.

Sliwa, A.S. and C.A. Nguluwe, 1984. Geological setting of Zambian emerald deposits. Prec. Res. 25: 213-228. Zwaan, J.C. and J.L.R. Touret, 2000. Emeralds in Greenstone belts: the case of Sandawana,

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