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REG - Thor Mining PLC - Drilling Results, Kelly’s Prospect

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RNS Number : 8172J  Thor Mining PLC  15 December 2022

15 December 2022

 

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

Thor Mining PLC

 

("Thor" or the "Company")

 
Kelly's Prospect
Drilling Results and a Correction to a Prior Result
Ragged Range, WA
 

The directors of Thor Mining Plc ("Thor") (AIM, ASX: THR, OTCQB: THORF) are
pleased to provide drilling results from the Kelly's Prospect, Ragged Range,
located in the Eastern Pilbara, Western Australia.

Project highlights:

§ Drilling has returned anomalous gold and copper values associated with
felsic and dacitic porphyry intrusions into the Euro Basalt at the Kelly's
Prospect, Ragged Range.

§ Best intercepts to date:

·    8m @ 1.31% Cu and 0.1g/t Au from 4m (22RRRC056), including

3m @ 2.9% Cu and 0.17g/t Au

·    1m @ 0.91 g/t Au from 40m (22RRRC049)

·    4m @ 0.1g/t Au, 0.3% Cu, 0.9% Pb, 0.2% Zn from 133m (22RRRC058)

§ QAQC Error: On 12 December 2022, the Bureau Veritas Kalgoorlie laboratory
reported to Thor that the 12.2g/t Au sample from drillhole 22RRC052 as
announced to the market (ASX/RNS: THR 4 November 2022) was an erroneous result
based on the laboratory making a sample swap with an internal standard. The
assay has subsequently reported <0.01g/t Au.

Photo 1: RC Chips from 22DDRC056 at Kelly's Ridge Prospect, Ragged Range

Nicole Galloway Warland, Managing Director of Thor Mining, commented:

"Disappointingly, due to a testing error at the Bureau Veritas laboratory, the
high-grade gold result announced in November was erroneous. Thor is
undertaking an investigation into the laboratory error to ensure that the
highest standard of procedure and reporting is provided going forward.

"These latest drill results are encouraging; however, further work is required
to fully explain why the high-grade gold and copper in surface rock chips is
not repeated in very shallow drill intersections."

 

The Ragged Range Project, located in the prospective Eastern Pilbara Craton,
Western Australia, is 100% owned by Thor Mining (covering E46/1190, E46/1262,
E46/1355, E46/1340 and E46/1393 - Figure 2 and Figure 3).

 

Figure 1: Location Plan.

 

 

Kelly's Prospect

This small reconnaissance program included six holes along Kelly's Ridge, two
below the historic Kelly's copper workings and two at the Kelly's NE Prospect
(Figure 2).

Drilling at Kelly's Ridge was designed to test below the high-grade rock
chips, returning up to 15g/t Au and 535g/t Ag along the 1km silicified ridge
at the contact between the Boobina Porphyry and Euro Basalt, as well as
testing below and along strike of the historic drillhole (DDHK2(1)) that
intersected 1.5m @ 22.97g/t gold, located at the porphyry-basalt contact
(Figure 3).  The recent drillholes appear to have stopped too short to fully
test the targeted contact, with follow-up drilling proposed angled from the
west to east.

The 4m @ 12.2g/t Au intercept from 192 to 196m in drillhole 22RRRC052 has been
assayed in one-metre intervals and report 193 to 194m 0.15g/t Au with 1.6% Zn
and 0.13% Pb and 194 to 195m reports 0.02g/t Au with 0.35% Zn (Figure 3). This
type of zinc and lead metal association is to be expected in areas with
high-grade gold results and observations of quartz sulphide material in these
two metre intervals is very encouraging.

Beneath the historic Kelly's copper workings, copper was intercepted with
anomalous gold and silver warranting further review.

At the Kelly's NE Prospect, high-grade gold (up to 7.2g/t Au) and copper (up
to 13.6 % Cu) identified in rock chips (ASX/RNS: THR 7 December 2022) was
tested by two drillholes, 22RRRC057 and 22RRC058. Wide intersections of
low-grade copper were intersected in the first hole from shallow depth with
moderate grade intercepts in the second hole both at surface and at depth.
Surprisingly the tenor of gold with the copper is subdued, from assays
received to date, compared to the surface rock chips.

Significant results received to date include (greater than 0.1% Cu and 0.1 g/t
Au):

Kelly's Ridge

·        22RRRC049:            1m @ 0.91 g/t Au from 40m

·        22RRRC052:            1m @ 0.15g/t Au and 1.6% Zn
from 196m

Kelly's Mine

·        22RRRC056:            8m @ 1.31% Cu and 0.1g/t Au
from 4m (22RRRC056), including

                                    3m @
2.9% Cu, 0.17g/t Au and 39g/t Ag from 7m

Kelly's NE

·        22RRRC057:             4m @ 0.13% Cu from 20m

·        22RRRC058:            19m @ 0.15% Cu from 8m,
including

                                    3m @
0.24% Cu from 24m, and

 
3m @ 0.29% Cu, 0.12g/t Au, 8.5g/t Ag, 1.1% Pb, and 0.25% Zn from 133m

 

(Refer to Table A for Collar information and Table B for Significant Results)

 

QAQC Error

 

On 12 December 2022, Bureau Veritas Kalgoorlie laboratory reported to Thor
that the 4m composite sample 194m to 198m at 12.2g/t Au (final assay) from
drillhole 22RRC052 and announced to market (ASX/RNS: THR 4 November 2022) was
an erroneous result based on the laboratory making a sample swap with a
standard (Figure 3). The information for this error, which was supplied by
email from the Bureau Veritas Kalgoorlie Laboratory to Thor, is stated as:

 

"We found the cause of the elevated Au in this sample to be due to a sample
swap with an internal standard from a second batch that was assayed in the
same fire as the third batch of RRRC0052 containing RRRC003867. Unfortunately,
due to human error at the QAQC stage this swap was not picked up during the
initial assays resulting in the erroneous result being reported."

 

Based on the location down the hole of the intercept (contact between Euro
Basalt and Porphyry), the position of the intercept relative to the historic
drill intercept 1.52m @ 22.97g/t Au DDHK2 and the high-grade nature of the
historic intercept, plus visible sulphide-rich quartz chips; there was no
reason for Thor to question this assay result.

 

Thor considers this is not an acceptable practice by the laboratory, for the
original Au error but also the delay in reporting the error to Thor.

 

Bureau Veritas is re-assaying  the  full sample batch (relating to 22RRC049 to
22RRC052) to ensure accuracy and integrity of data. We anticipate these
results in January 2023.

 

Next Steps

The following activities and results at Ragged Range are anticipated over the
coming weeks:

1.               Review Kelly's rock-chip and drilling data

2.               Continue regional exploration, including
reconnaissance sampling over ground in the northern portion of tenure for
prospective lithium-caesium-tantalum enriched (LCT) pegmatites

 

Figure 2: Kelly's Prospect, highlighting drill collars and high-grade gold and
copper in rock chips.

 

Figure 3: Kelly's Ridge cross section A-A', showing drill collars, historic
drill intercept and high-grade rock chip-only a small portion of assay results
received to date.

 

Figure 4: Kelly's Ridge cross section showing 22RRRC0051 and 22RRRC052.

 

 

Table A: Kelly's Prospect Drill Collar Information (MGA94 Z50)

 

 Hole ID    Easting  Northing  RL   EOH  Dip  Azi_TN  Prospect /Comments
 22RRRC049  797810   7586934   409  174  -55  230     Kelly's Ridge
 22RRRC050  797813   7586935   409  204  -65  227     Kelly's Ridge
 22RRRC051  797791   7586973   410  131  -55  230     Failed hole at 131m
 22RRRC052  797793   7586974   410  205  -65  231     Kelly's Ridge
 22RRRC053  797697   7587096   408  162  -54  231     Kelly's Ridge
 22RRRC054  797662   7587132   407  174  -55  230     Kelly's Ridge
 22RRRC055  798131   7587427   405  70   -55  253     Kelly's NE
 22RRRC056  798100   7587520   402  72   -55  250     Kelly's NE
 22RRRC057  797265   7587652   403  174  -55  215     Kelly's Copper Workings
 22RRRC058  797180   7587725   403  204  -55  270     Kelly's Copper workings

 

Table B: Kelly's Prospect Significant Drill Intercepts

 

 Hole ID  Depth  From       Interval      Au       Cu        Ag        Pb               Zn   Comment
 DESCRIPTION       (m)             (m)        g/t       %         g/t       ppm    ppm
 22RRRC049         40              1          0.91      NS        0.02      4      96
 22RRRC050                                                                                   NSI
 22RRRC051                                                                                   NSI - Hole failed
 22RRRC052         196             1          0.15      0.008     11        1320   15900
                   197             1                    0.008     4         231    3480
 22RRRC053                                                                                   NSI
 22RRRC054                                                                                   NSI
 22RRRC055                                                                                   NSI
 22RRRC056         0               12         0.14      0.9       11        41     120
 including         7               3          0.17      2.9       39        121    94
 22RRRC057         20              4          0.01      0.13      0.4       7      40
 22RRRC058         8               19         0.01      0.15      0.7       9      45
 and               133             3          0.12      0.31      8.5       10626  2453
 and               139             1          0.01      0.17      1.2       59     174
 and               169             1          0.01      0.16      1.2       25     142

Notes:

NSI = no significant intercept,

Assays pending = assays still in process at the laboratory

Cu% = copper %

Au g/t = gold in grams per tonne

1ppm = 0.0001%

 

References:

1.            DDHk2, drilled by Hawkstone 1969, Open File Annual
Report

 

This announcement is authorised for release to the market by the Board of
Directors.

 

For further information, please contact:

THOR MINING PLC

Nicole Galloway Warland, Managing Director

+61 8 7324 1935

nicole@thormining.com

 

 

Competent Persons Report

The information in this report that relates to exploration results is based on
information compiled by Nicole Galloway Warland, who holds a BSc Applied
geology (HONS) and who is a Member of The Australian Institute of
Geoscientists. Ms Galloway Warland is an employee of Thor Mining PLC. She has
sufficient experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which she is
undertaking to qualify as a Competent Person as defined in the 2012 Edition of
the 'Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves'. Nicole Galloway Warland consents to the inclusion in the
report of the matters based on her information in the form and context in
which it appears.

 

 

Updates on the Company's activities are regularly posted on Thor's website
www.thormining.com (http://www.thormining.com/) , which includes a facility to
register to receive these updates by email, and on the Company's twitter page
@ThorMining.

 

About Thor Mining PLC

Thor Mining PLC (AIM, ASX: THR; OTCQB: THORF) is a diversified resource
company quoted on the AIM Market of the London Stock Exchange, ASX in
Australia and OTCQB Market in the United States.

The Company is advancing its diversified portfolio of precious, base, energy
and strategic metal projects across USA and Australia. Its focus is on
progressing its copper, gold, uranium and vanadium projects, while seeking
investment/JV opportunities to develop its tungsten assets.

Thor owns 100% of the Ragged Range Project, comprising 92 km(2) of exploration
licences with highly encouraging early stage gold and nickel results in the
Pilbara region of Western Australia.

At Alford East in South Australia, Thor is earning an 80% interest in copper
deposits considered amenable to extraction via In Situ Recovery techniques
(ISR). In January 2021, Thor announced an Inferred Mineral Resource Estimate
of 177,000 tonnes contained copper & 71,000 oz gold¹.

Thor also holds a 30% interest in Australian copper development company
EnviroCopper Limited, which in turn holds rights to earn up to a 75% interest
in the mineral rights and claims over the resource on the portion of the
historic Kapunda copper mine and the Alford West copper project, both situated
in South Australia, and both considered amenable to recovery by way of
ISR.²³

Thor holds 100% interest in two private companies with mineral claims in the
US states of Colorado and Utah with historical high-grade uranium and vanadium
drilling and production results.

Thor holds 100% of the advanced Molyhil tungsten project, including measured,
indicated and inferred resources⁴, in the Northern Territory of Australia,
which was awarded Major Project Status by the Northern Territory government in
July 2020.  Thor executed a $8m Farm-in and Funding Agreement with
Investigator Resources Limited (ASX: IVR) to accelerate exploration at the
Molyhil Project on 24(th) November 2022.(6)

Adjacent to Molyhil, at Bonya, Thor holds a 40% interest in deposits of
tungsten, copper, and vanadium, including Inferred resource estimates for the
Bonya copper deposit, and the White Violet and Samarkand tungsten
deposits.⁵  Thor's interest in the Bonya tenement EL29701 is planned to be
divested as part of the Farm-in and Funding agreement with Investigator
Resources Limited.(6)

 

Notes

(1)
www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210127-maiden-copper.gold-estimate-alford-east-sa.pdf
(http://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210127-maiden-copper.gold-estimate-alford-east-sa.pdf)

(2)
www.thormining.com/sites/thormining/media/pdf/asx-announcements/20172018/20180222-clarification-kapunda-copper-resource-estimate.pdf
(http://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20172018/20180222-clarification-kapunda-copper-resource-estimate.pdf)
 

³
www.thormining.com/sites/thormining/media/aim-report/20190815-initial-copper-resource-estimate---moonta-project---rns---london-stock-exchange.pdf
(http://www.thormining.com/sites/thormining/media/aim-report/20190815-initial-copper-resource-estimate---moonta-project---rns---london-stock-exchange.pdf)

 (4)
www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210408-molyhil-mineral-resource-estimate-updated.pdf
(http://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210408-molyhil-mineral-resource-estimate-updated.pdf)
 

(5)
www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200129-mineral-resource-estimates---bonya-tungsten--copper.pdf
(http://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200129-mineral-resource-estimates---bonya-tungsten--copper.pdf)
 

(6)
https://thormining.com/wp-content/uploads/2022/11/20221124-8M-Farm-in-Funding-Agreement.pdf
(https://thormining.com/wp-content/uploads/2022/11/20221124-8M-Farm-in-Funding-Agreement.pdf)

 

 

1   JORC Code, 2012 Edition - Table 1

1.1         Section 1 Sampling Techniques and Data

 

 Criteria                                                 JORC Code explanation                                                            Commentary
 Sampling techniques                                      ·    Nature and quality of sampling (eg cut channels, random chips, or           Reverse circulation drill samples were collected utilising a PVC sampling
                                                          specific specialised industry standard measurement tools appropriate to the      spear on the drill cutting piles to collect a 4m composite sample weighing
                                                          minerals under investigation, such as down hole gamma sondes, or handheld XRF    approximately 3kg. Equal portions were taken from each pile to ensure
                                                          instruments, etc). These examples should not be taken as limiting the broad      representative samples and every metre was sampled. In addition, 1m samples
                                                          meaning of sampling.                                                             were collected directly off the cyclone (1/8 split), which can be assayed as

                                                                                required to replace the 4m composite sample results. In zones of visual
                                                          ·    Include reference to measures taken to ensure sample representivity         interest during drilling, these 1m splits were submitted for analysis instead
                                                          and the appropriate calibration of any measurement tools or systems used.        of the 3m composites.

                                                          ·    Aspects of the determination of mineralisation that are Material to
                                                          the Public Report.

                                                          ·    In cases where 'industry standard' work has been done this would be
                                                          relatively simple (eg 'reverse circulation drilling was used to obtain 1 m
                                                          samples from which 3 kg was pulverised to produce a 30 g charge for fire
                                                          assay'). In other cases more explanation may be required, such as where there
                                                          is coarse gold that has inherent sampling problems. Unusual commodities or
                                                          mineralisation types (eg submarine nodules) may warrant disclosure of detailed
                                                          information.
 Drilling techniques                                      ·    Drill type (eg core, reverse circulation, open-hole hammer, rotary          Reverse circulation drilling (5 ¼
                                                          air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or

                                                          standard tube, depth of diamond tails, face-sampling bit or other type,          inch diameter)
                                                          whether core is oriented and if so, by what method, etc).
 Drill sample recovery                                    ·    Method of recording and assessing core and chip sample recoveries and       Sample recovery was good. Each drill cutting pile size is logged and any
                                                          results assessed.                                                                deviation from expected is raised with the driller, and if undersize, to check

                                                                                for blockages. No sample biases are expected, and no relationship is known to
                                                          ·    Measures taken to maximise sample recovery and ensure representative        exist between sample recovery and grade.
                                                          nature of the samples.

                                                          ·    Whether a relationship exists between sample recovery and grade and
                                                          whether sample bias may have occurred due to preferential loss/gain of
                                                          fine/coarse material.
 Logging                                                  ·    Whether core and chip samples have been geologically and                    All chip samples are qualitatively geologically logged (lithology, structure,
                                                          geotechnically logged to a level of detail to support appropriate Mineral        alteration, veining, mineralisation, weathering, colour and other features).
                                                          Resource estimation, mining studies and metallurgical studies.                   No mineral resource estimation, mining studies or metallurgical studies have

                                                                                been conducted at this stage, but samples have been logged in sufficient
                                                          ·    Whether logging is qualitative or quantitative in nature. Core (or          detail to use for this function.
                                                          costean, channel, etc) photography.

                                                                                During the logging process representative samples are stored in chip trays for
                                                          ·    The total length and percentage of the relevant intersections logged.       future reference. The RC chip trays are photographed and electronically
                                                                                                                                           stored.
 Sub- sampling techniques and sample preparation          ·    If core, whether cut or sawn and whether quarter, half or all core          Drill samples were taken dry with a PVC spear as described in "Sampling

                                                        taken.                                                                           Techniques" above. The sample sizes are as per industry standard for RC

                                                                                drilling.

                                                        ·    If non-core, whether riffled, tube sampled, rotary split, etc and

                                                          whether sampled wet or dry.

                                                          ·    For all sample types, the nature, quality and appropriateness of the        Sampling is carried out using standard protocols and QAQC procedures as per

                                                        sample preparation technique.                                                    industry practice.

                                                        ·    Quality control procedures adopted for all sub-sampling stages to           Field QAQC procedures for drilling involved the use of a certified standard,
                                                          maximise representivity of samples.                                              blank and field duplicate sample submitted every 20 samples (i.e., 17 samples

                                                                                and 3 QAQC samples). These are routinely checked against originals.
                                                          ·    Measures taken to ensure that the sampling is representative of the

                                                        in situ material collected, including for instance results for field
                                                          duplicate/second-half sampling.

                                                                                All samples were sent to Bureau Veritas Laboratories in, which is an ISO 9001
                                                          ·    Whether sample sizes are appropriate to the grain size of the               accredited laboratory. Sample preparation includes sorting and drying,
                                                          material being sampled.                                                          followed by LM5 pulverising (PR303).

 Quality of assay data and laboratory tests               ·    The nature, quality and appropriateness of the assaying and                 The assay method is considered 'industry standard' and appropriate for
                                                          laboratory procedures used and whether the technique is considered partial or    exploration.
                                                          total.

                                                          ·    For geophysical tools, spectrometers, handheld XRF instruments, etc,

                                                          the parameters used in determining the analysis including instrument make and    Drill samples were assayed at Bureau Veritas Laboratories in by lead
                                                          model, reading times, calibrations factors applied and their derivation, etc.    collection fire assay with a 40g charge and AAS finish for gold with a

                                                                                detection limit of 0.01ppm (FA001)
                                                          ·    Nature of quality control procedures adopted (eg standards, blanks,

                                                          duplicates, external laboratory checks) and whether acceptable levels of
                                                          accuracy (ie lack of bias) and precision have been established.

                                                                                                                                           Internal certified laboratory QAQC was undertaken including check samples,
                                                                                                                                           duplicates, blanks and internal standards

                                                                                                                                           Handheld pXRF readings

                                                                                                                                           readings are taken on -2mm sieved samples on every drill metre, using an XTL5
                                                                                                                                           Niton  with a 40 second reading time.

                                                                                                                                           Instrument is calibrated at start of each day, along with QAQC of 1 standard
                                                                                                                                           and 1 blank. External instrument calibration completed annually.

                                                                                                                                           All drill samples are measured for magnetic susceptibility at 1m intervals
                                                                                                                                           using a hand-held magnetic susceptibility meter.
 Verification of sampling and assaying                    ·    The verification of significant intersections by either independent         All significant intersections have been verified by a company geologist and
                                                          or alternative company personnel.                                                alternative company geologist.

                                                          ·    The use of twinned holes.                                                   There are no twinned drillholes.

                                                          ·    Documentation of primary data, data entry procedures, data                  All drilling data is collected in a series of templates in excel including
                                                          verification, data storage (physical and electronic) protocols.                  geological logging, sample information, collar and survey information.

                                                          ·    Discuss any adjustment to assay data.                                       All data is digitally recorded in the company's electronic database, managed
                                                                                                                                           by external database company utilising Datashed5 software.

                                                                                                                                           No adjustments have been made to the assay data.
 Location of data points                                  ·    Accuracy and quality of surveys used to locate drill holes (collar          Drill collars were surveyed using a handheld Garmin 62s GPS with an accuracy
                                                          and down-hole surveys), trenches, mine workings and other locations used in      of +/-3m. Grid system is MGA94 zone 50 (GDA). Drill rig alignment at the
                                                          Mineral Resource estimation.                                                     collar was conducted using a north seeking gyro. Topographic control using the

                                                                                GPS is suitable for early- stage exploration.
                                                          ·    Specification of the grid system used.

                                                          ·    Quality and adequacy of topographic control.
 Data spacing and distribution                            ·    Data spacing for reporting of Exploration Results.                          Data spacing for preliminary exploration is deemed sufficient to test

                                                                                geochemical anomalies and mapped structural features. Sufficiently anomalous
                                                          ·    Whether the data spacing and distribution is sufficient to establish        assays and any other zones of interest will be assayed in more detail using
                                                          the degree of geological and grade continuity appropriate for the Mineral        the 1m samples collected off the cyclone.
                                                          Resource and Ore Reserve estimation procedure(s) and classifications applied.

                                                          ·    Whether sample compositing has been applied.
 Orientation of data in relation to geological structure  ·    Whether the orientation of sampling achieves unbiased sampling of           Orientational bias is not applicable to RC drilling at this stage but samples
                                                          possible structures and the extent to which this is known, considering the       and drill lines were orientated approximately perpendicular to the assumed
                                                          deposit type.                                                                    strike of gold mineralisation.

                                                          ·    If the relationship between the drilling orientation and the
                                                          orientation of key mineralised structures is considered to have introduced a
                                                          sampling bias, this should be assessed and reported if material.
 Sample security                                          ·    The measures taken to ensure sample security.                               All samples taken from Newman to Bureau Veritas, via registered express
                                                                                                                                           freight company.

                                                                                                                                           Sample Security levels are considered appropriate for RC Drilling.
 Audits or reviews                                        ·    The results of any audits or reviews of sampling techniques and data.       None undertaken. Thor's sampling procedure conforms to industry standard
                                                                                                                                           practice and each assay program is reviewed internally for any discrepancies.

 

1.1        Section 2 Reporting of Exploration Results

 

 Criteria                                                          JORC Code explanation                                                            Commentary
 Mineral tenement and land tenure status                           ·    Type, reference name/number, location and ownership including               Exploration results are reported on E46/1393 in Western Australia held 100% by
                                                                   agreements or material issues with third parties such as joint ventures,         Pilbara Goldfields Pty Ltd, Thor Mining PLC.
                                                                   partnerships, overriding royalties, native title interests, historical sites,
                                                                   wilderness or national park and environmental settings.

                                                                   ·    The security of the tenure held at the time of reporting along with
                                                                   any known impediments to obtaining a licence to operate in the area.
 Exploration done by other parties                                 ·    Acknowledgment and appraisal of exploration by other parties.               Sporadic surface geochemistry over tenure carried out by Great Southern Mines
                                                                                                                                                    up to 1997.

                                                                                                                                                    CRAE explored are in 1994.

                                                                                                                                                    1966 - 1974 - the area was explored by Conwest, Cominco and Hawkstone drilling
                                                                                                                                                    2 holes DDHK1 and DDHK2 with a copper focus.

                                                                                                                                                    Keely Copper Mine was worked between 1955 - 1970 intermittently.
 Geology                                                           ·    Deposit type, geological setting and style of mineralisation.               Yet to be determined
 Drill hole Information                                            ·    A summary of all information material to the understanding of the           Tables, plans and sections summarising significant drill results are included
                                                                   exploration results including a tabulation of the following information for      in the report
                                                                   all Material drill holes:

                                                                   o  easting and northing of the drill hole collar

                                                                   o  elevation or RL (Reduced Level - elevation above sea level in metres) of
                                                                   the drill hole collar

                                                                   o  dip and azimuth of the hole

                                                                   o  down hole length and interception depth

                                                                   o  hole length.

                                                                   ·    If the exclusion of this information is justified on the basis that
                                                                   the information is not Material and this exclusion does not detract from the
                                                                   understanding of the report, the Competent Person should clearly explain why
                                                                   this is the case.
 Data aggregation methods                                          ·    In reporting Exploration Results, weighting averaging techniques,           All aggregate drill intercepts are length weighted and there was no internal
                                                                   maximum and/or minimum grade truncations (eg cutting of high grades) and         dilution incorporated. No metal equivalents have been reported.
                                                                   cut-off grades are usually Material and should be stated.

                                                                   ·    Where aggregate intercepts incorporate short lengths of high-grade
                                                                   results and longer lengths of low-grade results, the procedure used for such
                                                                   aggregation should be stated and some typical examples of such aggregations
                                                                   should be shown in detail.

                                                                   ·    assumptions used for any reporting of metal equivalent

                                                                   ·    The values should be clearly stated.
 Relationship between mineralisation widths and intercept lengths  ·    These relationships are particularly important in the reporting of          All results are assumed to be true width but is not definitively known at this
                                                                   Exploration Results.                                                             stage.

                                                                   ·    If the geometry of the mineralisation with respect to the drill hole
                                                                   angle is known, its nature should be reported.

                                                                   ·    If it is not known and only the down hole lengths are reported, there
                                                                   should be a clear statement to this effect (eg 'down hole length, true width
                                                                   not known').
 Diagrams                                                          ·    Appropriate maps and sections (with scales) and tabulations of              Appropriate maps and sections are included in the report.
                                                                   intercepts should be included for any significant discovery being reported
                                                                   These should include, but not be limited to a plan view of drill hole collar
                                                                   locations and appropriate sectional views.
 Balanced reporting                                                ·    Where comprehensive reporting of all Exploration Results is not             All results have been reported
                                                                   practicable, representative reporting of both low and high grades and/or
                                                                   widths should be practiced to avoid misleading reporting of Exploration
                                                                   Results.
 Other substantive exploration data                                ·    Other exploration data, if meaningful and material, should be               No meaningful or material information has been omitted from this release.
                                                                   reported including (but not limited to): geological observations; geophysical
                                                                   survey results; geochemical survey results; bulk samples - size and method of
                                                                   treatment; metallurgical test results; bulk density, groundwater, geotechnical
                                                                   and rock characteristics; potential deleterious or contaminating substances.
 Further work                                                      ·    The nature and scale of planned further work (eg tests for lateral          It is anticipated that follow up and reconnaissance geochemistry (rockchip,
                                                                   extensions or depth extensions or large-scale step- out drilling).               soil & stream) and drilling will be undertaken over tenure , including

                                                                                Sterling and Kelly's prospects.
                                                                   ·    Diagrams clearly highlighting the areas of possible extensions,
                                                                   including the main geological interpretations and future drilling areas,
                                                                   provided this information is not commercially sensitive.

 

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