ALTAMIN LIMITED — Capital/Financing Update 2017

Mar 23, 2017

24 March 2017

ASX Announcement

More impressive zinc results in final batch of assays to be included in Gorno Definitive Feasibility Study

Latest drilling includes hits of up to 17% Zn+Pb with work well underway on updated resource estimate

HIGHLIGHTS

• Latest assays from ongoing resource drilling of the Colonna Zorzone zinc deposit include:

  • 5.9m grading 8.9% Zn, 1.7% Pb and 59g/t Ag in GDD132A;

• 12.6m grading 6.1% Zn, 1.6% Pb and 58g/t Ag in GDD137;

  • 5.4m grading 13.7% Zn, 3.3% Pb and 164g/t Ag in GDD144;

ASX Code EMX

ABN 63 078 510 988 PO Box 1785 West Perth WA 6872

Level 2, 20 Kings Park Road West Perth WA 6005

T: + 61 8 9321 5000 F: + 61 8 9321 7177 E: info@energiaminerals.com W: www.energiaminerals.com

Board of Directors Alexander Burns Executive Chairman Kim Robinson Managing Director Marcello Cardaci Non-Executive Director

Company Secretary Jamie Armes

• 41m grading 3.7% Zn, 1.5% Pb and 40g/t Ag, including 16.6m grading 8.6% Zn, 3.5% Pb and 51g/t Ag in GDD147; and

• 9.2m grading 4.9% Zn, 1.7% Pb and 45g/t Ag in GDD148A.

• New resource estimate to be finalised in early April 2017, underpinning the Gorno Definitive Feasibility Study (DFS) to be completed by the end of April.

• Metallurgical testwork completed with zinc oxide and zinc sulphide concentrates to be combined, producing a highly sought-after, ultra-high grade zinc concentrate grading 59% Zn with less than 1% Fe and 1.2% Pb with low impurity levels.

• Combined lead oxide and lead sulphide concentrate grade is also of high quality at 58% Pb and 558g/t silver.

• Overall metal recoveries for the DFS have been finalised at 87% for zinc, 80% for lead and 62% for silver on the assumption that no silver is payable in the zinc concentrate and 96% of metal is recovered through the Ore Sorters.

• Discussions continue with potential financiers and offtake partners.

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Energia Minerals Ltd (ASX: EMX; “Energia” or Company) is pleased to advise that it has now received the final assay results to be incorporated in the Definitive Feasibility Study (DFS) for its flagship 100%-owned Gorno Zinc Project in northern Italy, including some impressive new intercepts which further reinforce the robustness, continuity and grade of the Colonna Zorzone deposit. Metallurgical testwork for the DFS has also been completed and plant design is close to completion. Mine planning is well advanced and awaiting receipt of the revised resource before completion.

The most recent drilling has focused on defining the southern part of the Colonna Zorzone deposit, which remains open in the deeper levels to the south and west, ahead of a new resource estimate due for completion in early April 2017.

The updated resource will underpin the Definitive Feasibility Study (DFS), which remains on track to be finalised by the end of April. Work is now underway to calculate the new resource based on all of the drilling completed to date. In the meantime, drilling is continuing with two rigs operating from the base of the Exploration Decline to expand and further define the Colonna Zorzone ore body.

Diamond drilling – discussion of results and ongoing program

The Diamond drilling program for the DFS is now complete but drilling targeting resource expansion will continue.

– Diamond hole GDD132A ( 5.9m grading 8.9% Zn, 1.7% Pb, 59g/t Ag ) designed as a – replacement hole for GDD132 which encountered drilling difficulties was located 15m to the north-east of GDD132 and confirmed excellent continuity between the two holes but with increased grade and width .

This continuity was also confirmed in diamond holes GDD144 ( 5.4m grading 13.7% Zn, 3.3% Pb, 164g/t Ag ), GDD137 ( 12.6m grading 6.1% Zn, 1.6% Pb, 58g/t Ag ) and GDD148A ( 9.2m grading 4.9% Zn, 1.7% Pb, 45g/t Ag).

Diamond hole GDD147 encountered a very large interval ( 41.0m grading 3.7% Zn, 1.5% Pb, 40g/t Ag ) of largely oxidised material, essentially comprising two mineralised intervals. The first interval was at the top of the Metalifero Formation and the second was a highgrade zone ( 16.6m grading 8.6% Zn, 3.5% Pb and 51g/t Ag ) at the top of the underlying Breno Formation.

The ongoing diamond drilling program is focused on defining the limit of the Colonna Zorzone deposit below the base of the Exploration Decline to the west of holes GDD135, GDD037 and GDD147 and to the east of GDD98 and GDD100, given that the deposit remains open in these two areas. Additional in-fill drilling will also be undertaken to the south of GDD145 down to the high-grade historical drilling on the 600 level.

Metallurgy

Metallurgical testwork for the DFS is also now complete and based on results the Company has decided to combine the zinc sulphide and zinc oxide concentrates resulting in an extremely high quality product grading 59% Zn, 0.7% Fe and 1.2% Pb with low impurity levels. Testwork has also established that the combined lead concentrate will also be a high quality product grading 58% Pb, 552g/t Ag and 4.2% Zn .

Metallurgical recoveries from locked cycle testwork are 92% for zinc, 83% for lead and 65% for silver based on 85% sulphide and 15% oxide upgraded feed being delivered from the underground Ore Sorters and on the assumption that no silver is payable in the zinc concentrate. Assuming a conservative 96% recovery through the Ore Sorters, overall metal recoveries are estimated to be 87% for zinc, 80% for lead and 62% for silver.

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Energia’s Managing Director, Mr Kim Robinson, said the Company was now in the final countdown to delivery of an updated resource estimate for Gorno, which in turn would pave the way for the Definitive Feasibility Study to be completed.

“All of the assay results for inclusion in the DFS are now in, and work is well advanced on the updated resource – which we expect to finalise in early April,” he said.

“The latest results for inclusion in the resource update have been impressive, further reinforcing our confidence in the quality, robustness and continuity of the Colonna Zorzone deposit. While the component of the drilling designed to support the DFS has now been completed, additional drilling is expected to further expand the resource at depth.

“We have also now completed the metallurgical test-work required to finalise the DFS, and I’m delighted to say the results have been very impressive. We have made the decision that we will sell a combined zinc oxide and sulphide concentrate, as well as a combined lead oxide and sulphide product which will simplify transport logistics and marketing.

“Importantly, the Fe content of the zinc concentrate is extremely low, which will allow very high recoveries of zinc through the smelting and refining process. This also means that our zinc concentrate will be highly sought-after in global metals markets – giving us a very strong competitive advantage.”

“This is now a pivotal time for Energia as we bring together all the various elements we have been working on so hard for the past two years,” Mr Robinson said.

“This process will begin with the updated resource estimate early next month, and will be followed by the DFS, which we expect will provide a clear picture of the technical, commercial and financial aspects of this project.”

For and on behalf of Energia Minerals Limited.

For media enquiries contact: Kim Robinson Nicholas Read Managing Director Read Corporate +61 8 9321 5000 +61 8 9388 1474 info@energiaminerals.com info@readcorporate.com.au

Competent Person Statement

Information in this release that relates to Exploration Results is based on information prepared by Mr Kim Robinson, a Competent Person who is a Member of the Australian Institute of Geoscientists. Mr Robinson is a full-time employee of Energia Minerals Limited. Mr Robinson has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activities being undertaken 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”. Mr Robinson consents to the inclusion in this release of the matters based on their information in the form and context in which it appears.

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Figure 1: Colonna Zorzone showing completed drilling

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Table 1: Drilling location details and assay results for holes GDD132A to GDD148A

HOLE ID	Easting (m)	Northing (m)	Collar RL	Dip	Azimuth	Depth	From	Zn %	Pb %	Ag g/t	Thickness
	WGS84Z32N	WGSZ32N	(m ASL)			(m)	(m)				(m)
GDD132A	559480	5084364	865.4	-49	213	140.8	128.6	8.9	1.7	59	5.9
GDD137	559480	5084364	866.2	-34	218	259.6	239.5	6.1	1.6	58	12.6
And							257.4	1.3	0.2	4	0.7
GDD140	559498	5084360	865.3	-44	202	228.8	No Significant Intercept
GDD141	559537	5084792	945.3	37	31	122.9	No Significant Intercept
GDD142	559493	5084383	867.5	-63	125	138.3	No Significant Intercept
GDD143	559501	5084629	943.6	-55	83	73.7	55.4	8	2.4	65	2.7
GDD144	559493	5084383	867.5	-38	215	206.4	191.8	13.7	3.3	164	5.4
GDD145	559498	5084360	865.3	-35	206	318.0	305.0	1.9	0.0	32	5.4
Including							305.8	6.3	0.0	90	1.3
GDD146	559501	5084664	943.8	-19	47	59.8	49.2	1.9	0.4	22	5.6
Including							52.6	3.7	0.7	39	2.2
GDD147	559493	5084383	867.5	-36	228	221.8	163.0	3.7	1.5	40	41.0
Including							163.0	1.3	0.4	138	6.0
Including							168.0	4.7	0.5	249	1.0
Including							189.0	8.6	3.5	51	16.6
Including							189.0	19.3	7.7	166	1.0
Including							192.8	29.1	8.5	140	1.3
Including							196.3	9.9	4.7	53	7.7
GDD148	559498	5084360	865.3	-26	127	172.0	Hole Abandoned
GDD148A	559498	5084360	865.3	-26	218	295.5	268.0	4.9	1.7	45	9.2
Including							268.0	5.6	2.5	58	3.4
Including							272.1	12.7	3.7	109	1.6

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Figure 2: GDD132A, GDD137, and GDD144 Cross Section

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Figure 3: GDD143 Cross Section

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Figure 4: GDD145 Cross Section

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Figure 5: GDD146 Cross Section

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Figure 6: GDD147 Cross Section

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Figure 7: GDD148A Cross Section

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JORC Code, 2012 Edition – Table 4 Gorno Historical Exploration Drilling Results

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling		Nature and quality of sampling (eg cut channels, random		Drill core was cored using NQ core bits. NQ/T2-66 measurements ID of
techniques		chips, or specific specialised industry standard		47.6/51.7mm and an OD of 75.7/66.5mm (T2-66 is roughly equivalent to NQ)
		measurement tools appropriate to the minerals under		Core samples were half core cut using a diamond saw with half the core being
		investigation, such as down hole gamma sondes, or		dispatched to the laboratory, and half retained. Individual samples were taken
		handheld XRF instruments, etc). These examples should		on geological intervals with lengths ranging between 0.7m and 1.3m, and an ideal
		not be taken as limiting the broad meaning of sampling.		length of 1m. Core received to date is largely very competent and cuts well with
		Include reference to measures taken to ensure sample		little material loss or contamination. Cut core samples were dispatched using a
		representivity and the appropriate calibration of any		reputable contract courier from site to the laboratory where half core is dried,
		measurement tools or systems used.		then crushed and pulverised to allow 85% to pass -75µm. A 0.15g-0.25g aliquot
		Aspects of the determination of mineralisation that are		subsample of the pulverised sample was then dissolved in a four acid digest, and
		Material to the Public Report.		then analysed using an ICP-AES or ICP-AAS technique to determine grades of the
		In cases where ‘industry standard’ work has been done		following elements Pb, Zn, As, Ag, Bi, Co, Cu, Fe, Mg, Mn, Ni. Further testworks
		this would be relatively simple (eg ‘reverse circulation		may be carried out in the future for other analytes.
		drilling was used to obtain 1 m samples from which 3 kg		Duplicates, blanks and certified reference materials were inserted into sample
		was pulverised to produce a 30 g charge for fire assay’).		series at a rate of better than 3 in 20. In addition two sample batches have been
		In other cases more explanation may be required, such		dispatched to an independent laboratory for umpire analysis, results obtained
		as where there is coarse gold that has inherent sampling		support the original results received.
		problems. Unusual commodities or mineralisation types		Mineralisation can be both contained in oxides and sulphide material. Historical
		(eg submarine nodules) may warrant disclosure of		studies and recent observations show very low levels of deleterious elements in
		detailed information.		both material types, however further studies must be completed to quantify this.
				Energia has exhaustive procedures and protocols in place to ensure that ‘Industry
				Standard’ is met as a minimum.
Drilling		Drill type (eg core, reverse circulation, open-hole		Diamond Core holes description:
techniques		hammer, rotary air blast, auger, Bangka, sonic, etc) and		o T2-66 and NQ diamond core
		details (eg core diameter, triple or standard tube, depth		o NQ core oriented, T2-66 core not oriented.
		of diamond tails, face-sampling bit or other type,		o Coring bit used
		whether core is oriented and if so, by what method, etc).		o T2-66 Diamec 252 Atlas Copco rig NQ Sandvik 130, and Diamec 262.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Drill sample		Method of recording and assessing core and chip sample		To date 148 holes have been completed, recovery on these holes has been
recovery		recoveries and results assessed.		acceptable, in excess of 98%. Most recovery loss in mineralised zones is most
		Measures taken to maximize sample recovery and		likely the result of fine friable material being washed out from the core sample by
		ensure representative nature of the samples.		the drilling fluid. Observations to date suggest that this fine friable fraction is
		Whether a relationship exists between sample recovery		weathered oxidized lead and zinc sulphides, resulting in a loss of mineralized
		and grade and whether sample bias may have occurred		material from the core sample.
		due to preferential loss/gain of fine/coarse material.		Core blocks are inserted by the drillers at the end of each drilling run, noting the
				run length, and total depth. This data is then compared to the measured
				recovered core length and recoveries for each run and the entire hole are
				calculated. Given the nature of the drilling, and the type of mineralisation
				encountered to date the sample is judged as being representative.
				Given the nature of the drilling (diamond coring), and the generally competent
				nature of the mineralisation and host rock observed to date it is deemed very
				unlikely that a bias exists due to preferential loss/gain of fine/coarse material.
Logging		Whether core and chip samples have been geologically		All holes have been geologically logged on geological intervals with recording of
		and geotechnically logged to a level of detail to support		lithology, grain size and distribution, sorting, roundness, alteration,
		appropriate Mineral Resource estimation, mining studies		mineralisation, veining, structure, oxidation state, colour and geotechnical data
		and metallurgical studies.		noted and stored in the database. All holes were logged to a level of detail
		Whether logging is qualitative or quantitative in nature.		sufficient to support future mineral resource estimation, scoping studies, and
		Core (or costean, channel, etc) photography.		metallurgical investigations.
		The total length and percentage of the relevant		Oxidation, colour, alteration, roundness, sorting, sphericity, alteration and
		intersections logged.		mineralisation are logged qualitatively. All other values are logged quantitatively.
				All holes have been photographed both wet and dry, and these photos stored in
				a database.
				All holes have been logged over their entire length (100%) including any
				mineralised intersections. To date core loss is less than 2% and is noted in the
				logging.
Sub-sampling		If core, whether cut or sawn and whether quarter, half or		All core was half cut using a Diamonte table diamond saw.
techniques		all core taken.		Not applicable.
and sample		If non-core, whether riffled, tube sampled, rotary split,		Mineralised core is visually identified, and then sampled in geological intervals
preparation		etc and whether sampled wet or dry.		using 0.7-1.3m intervals, the core is then half cut and half the core is wholly
		For all sample types, the nature, quality and		sampled for that interval then inserted into pre numbered calico bags along with

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sub-sampling		appropriateness of the sample preparation technique.		QA/QC samples. The sample preparation technique is deemed appropriate.
techniques		Quality control procedures adopted for all sub-sampling		Quality control procedures include following EMX standard procedures when
and sample		stages to maximise representivity of samples.		sampling, sampling on geological intervals, and reviews of sampling techniques in
preparation		Measures taken to ensure that the sampling is		the field.
(continued)		representative of the in situ material collected, including		Field Duplicate samples are taken in the field at a rate of 1 in 20, and consist of ¼
		for instance results for field duplicate/second-half		core taken from the reserved ½ core.
		sampling.		The expected sample weight for 1m of half core T2-66 is approximately 2.7kg,
		Whether sample sizes are appropriate to the grain size		and NQ is 2.4kg. This sample weight should be sufficient to appropriately
		of the material being sampled.		describe base metal mineralisation grades from mineral particle sizes up to 5mm.
Quality of		The nature, quality and appropriateness of the assaying		The digest method and analysis techniques are deemed appropriate for the
assay data		and laboratory procedures used and whether the		samples. Four acid digestions are able to dissolve most minerals; however,
and		technique is considered partial or total.		although the term “near-total” is used, depending on the sample matrix, all
laboratory		For geophysical tools, spectrometers, handheld XRF		elements may not be quantitatively extracted. The intended analysis techniques
tests		instruments, etc, the parameters used in determining the		are ICP-AES (Atomic Emission Spectroscopy) and ICP-AAS (Atomic Absorption
		analysis including instrument make and model, reading		Spectroscopy typically used to quantify higher grade base metal mineralisation.
		times, calibrations factors applied and their derivation,		No geophysical tools, spectrometers or XRF instruments have been used.
		etc.		QA/QC samples (duplicates, blanks and standards) are inserted in the sample
		Nature of quality control procedures adopted (eg		series at a rate of better than 3 in 20. These check samples are tracked and
		standards, blanks, duplicates, external laboratory		reported on for each batch. When issues are noted the laboratory is informed
		checks) and whether acceptable levels of accuracy (ie		and an investigation begins defining the nature of the discrepancy, a suitable
		lack of bias) and precision have been established.		explanation, and whether further check assays are required. The laboratory
				completes its own QA/QC procedures and these are also tracked and reported on
				by EMX. No bias has been established to date.
Verification		The verification of significant intersections by either		Significant intersections, drill hole locations, and mineralisation in view have
of sampling		independent or alternative company personnel.		been checked by consultants in June 2015, June 2012, and March 2010. Energia
and assaying		The use of twinned holes.		Minerals personnel regularly check intersections.
		Documentation of primary data, data entry procedures,		To date 7 historical holes have been twinned, and 8 EMX holes have been
		data verification, data storage (physical and electronic)		twinned for metallurgical purposes.
		protocols.		All geological, sampling, and spatial data that is generated and captured in the
		Discuss any adjustment to assay data.		field is immediately entered into a field notebook on standard Excel templates.
				These templates are then validated each night in Micromine. This information is
				then sent to Energia’s in house database manager for further validation. If

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Verification				corrections need to be made they are corrected the following day by the person
of sampling				responsible for generating the data. Once complete and validated the data is
and assaying				then compiled into a SQL database server.
(continued)				No adjustment of assay data is required
Location of		Accuracy and quality of surveys used to locate drill holes		Collar locations are designed using data acquired from surveying existing
data points		(collar and down-hole surveys), trenches, mine workings		infrastructure using a total station. Once drilled drill holes are surveyed using a
		and other locations used in Mineral Resource estimation.		total station, and logged with an EZ -TRAC system to define azimuth and
		Specification of the grid system used.		inclination of the drill hole.
		Quality and adequacy of topographic control.		The grid system used at Gorno is WGS_1984_UTM_Zone_32N. Easting and
				Northing are stated in metres.
				Topographic control for surveyed infrastructure is from a total station
				measurements tied into multiple Italian Survey Control Points, and for
				unsurveyed infrastructure from control points noted on both hand drawn maps,
				and from RL’s noted on geological logs.
Data spacing		Data spacing for reporting of Exploration Results.		Drill hole orientation and spacing is non-uniform with multiple holes often being
and		Whether the data spacing and distribution is sufficient to		proposed to be drilled from a single exploration drive.
distribution		establish the degree of geological and grade continuity		A Mineral Resource has been established in the area of drilling, and the new
		appropriate for the Mineral Resource and Ore Reserve		drilling data has been obtained to increase the level of geological confidence in
		estimation procedure(s) and classifications applied.		the existing resource model.
		Whether sample compositing has been applied.		No sample compositing has been applied.
Orientation of		Whether the orientation of sampling achieves unbiased		The attitude of the mineralisation is thought to be generally dipping to the south
data in		sampling of possible structures and the extent to which		at approximately 30 degrees. However the level of confidence in this is low, and
relation to		this is known, considering the deposit type.		the multiple orientations of drilling suggest that some intersections may be
geological		If the relationship between the drilling orientation and		biased. True width for these intersections will be confirmed once collar surveys,
structure		the orientation of key mineralised structures is		hole deviation surveys, and geological modelling is finalized. Sections provided in
		considered to have introduced a sampling bias, this		the text show fairly accurate depictions of the attitude of the mineralised
		should be assessed and reported if material.		horizons, and angle of intersections of the drill holes.
				Sampling bias due to drilling orientation and mineralised structure orientation is
				probable and with information currently at hand is hard to precisely quantify. An
				orientation tool is now being used to orient core and this along with a more
				refined geological model should allow this to be better defined.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sample		The measures taken to ensure sample security.		Samples were dispatched from the Exploration Site using a single reputable
security				contracted courier service to deliver samples directly to the assay laboratory
				where further sample preparation and assay occurs.
Audits or		The results of any audits or reviews of sampling		Reviews of sampling techniques and material sampled are undertaken regularly
reviews		techniques and data.		to ensure any change in geological conditions is adequately accounted for in
				sample preparation. Reviews of assay results and QA/QC results occur for each
				batch. 1 in 10 checks on all compiled and entered data are completed by Energia
				Minerals.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Mineral		Type, reference name/number, location and ownership		The Gorno Lead Zinc deposit is located in the north of Italy, in the Lombardia
tenement and		including agreements or material issues with third		Province. The Gorno Project is made up of ten (10) granted tenements: Decrees
land tenure		parties such as joint ventures, partnerships, overriding		1571, 1629, 1630, 1632, 1633, 3276, 3277, 3278, 3279, 3280; and six
status		royalties, native title interests, historical sites, wilderness		applications. These leases are 100% owned and operated by Energia Italia, a
		or national park and environmental settings.		100% owned subsidiary of Energia Minerals. 1633, 1571, 1629, 1632, and 1630
		The security of the tenure held at the time of reporting		have expired at the time of release of this report, however applications for
		along with any known impediments to obtaining a		extension have been lodged, and are expected to be received shortly. All other
		licence to operate in the area.		permits are valid at the time of this report.
				All tenements are in good standing and no impediments to operating are
				currently known to exist.
Exploration		Acknowledgment and appraisal of exploration by other		A significant amount of work was undertaken by ENI subsidiaries in the region.
done by other		parties.		Drilling works completed in the period between 1964-1980 have been compiled
parties				and digitised. A significant amount of work has been completed on the Gorno
				deposit including the development of more than 230km of exploration drives,
				detailed mapping, and the mining and production of over 800,000 tonnes of high
				grade zinc concentrate. Large scale mining operations ceased at the Gorno
				deposit in 1978, and the project closed in 1980.
Geology		Deposit type, geological setting and style of		The Gorno deposit is an Alpine Type Lead-Zinc deposit (similar to Mississippi
		mineralisation.		ValleyType Lead Zinc deposits)it is broadlystratabound with some breccia

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Criteria	JORC Code explanation	Commentary	Commentary
Geology		bodies and veining also occurring. It displays generally simple mineralogy of low
(Continued)		iron	sphalerite, galena, pyrite, and minor silver. Gorno lies in a part of the Italian
		Southern Alps named “Lombard Basin”, formed by a strong subsidence occurring
		in the Permian-Triassic which allowed the subsequent accumulation of a thick
		sedimentary pile. The sedimentary sequence is constrained laterally by the
		Luganese Platform to the west and by the Atesina Platform to the east. The
		lithotypes in the southern portion of the basin are predominantly Triassic in age.
		The geological sequences of importance in relation to mineralisation, from oldest
		to youngest are as follows:
		o	Breno Formation: a back-reef limestone composed of light grey
			calcareous beds, 10 to 170 m thick. The facies indicate a
			palaeogeographical evolution from back reef to shelf environment, in low
			energy water to alternating peri-tidal cycles.
		o	Metalliferous Limestone: composed of dark grey to black limestone
			deposited in stromatolitic tidal flats, with siliceous intercalations present
			in the upper part. The dark colour suggests a stagnant anaerobic
			depositional environment with bituminous beds generally present at the
			footwall of the Metallifero. This formation represents a transitional phase
			between the underlying shelf environment and the upper sequence
			typified by a peri-continental and detrital sedimentation. Three tuffaceous
			levels are present in the Metallifero stratigraphical column. The
			pyroclastic tuffs are submarine volcanic phases which intervened during
			the deposition of the limestones, and effectively represent a control for
			the mineralized horizons, in that they are always found at the foot wall
			(Tuff 1) and at the hanging wall (Tuff 2) of the productive mineralised
			horizons.
		o	Val Sabbia Sandstone: present along the southern Lombard Basin border
			and is composed of alternating tuffaceous sandstone and green and\or
			red silt-mudstone. These were possibly derived from the erosion of
			continental sediments present to the south. The thickness varies between
			0 and 400 metres.
		o	Gorno Formation: alternating thinly bedded, black limestone and
			laminated marl deposited in protected lagoon environment with a
Geology			thickness of 0-350 metres. A thin tongue, intercalated between the

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
(Continued)				Metalliferous Limestone and the Val Sabbia Sandstone, is often
				mineralised and is referred to as the mineralised “black shales” of the
				Gorno deposits.
				o San Giovanni Bianco Formation: is composed of a thick alternation of
				marl, sandstone, siltstone and mudstone which transitions at the top of
				the unit to cellular limestone and evaporitic vuggy dolomite, estimated
				thickness of 150 metres.
				Structure in the basin is typified by E-W trending belts which can be subdivided in
				five sectors:
				o Orobic Anticline, in the northern part, which includes Palaeozoic
				successions;
				o Valtorta-Valcanale Line,oriented E-W and separating the Orobic Anticline
				to the north from the Pb-Zn mineralised belt in the south. The line is
				responsible for many of the allochthonous units;
				o Camuno Autochthonous, including the sedimentary cover, which is
				covered in the central-western part by various overthrusts and outcrops
				only in the east;
				o Para-autochthonous and allochthonous units, present over a large area
				to the south of the Valtorta-Valcanale Line and formed by the double or
				triple superimposition of the Triassic carbonate formations;
				o Fold and fold-fault zone, which constitutes the southern sector near the
				Po plains and includes Jurassic-Cretaceous formations.
				Mineralisation in the Gorno district occurs within the Camuno Autochthonous
				Zone, and the para-autochthonous, and allocthounous units. The geometry of
				the mineralised bodies is mainly stratabound with common characteristics in the
				majority of the Gorno deposits. The prevailing distribution trend is N-S and the
				shape, represented by tabular “columns”, which can be longitudinally developed
				for more than 2000 metres, with widths from 50 to 100 metres and thickness
				between 3 and 20 metres.
Drill hole		A summary of all information material to the		Information material to the understanding of the exploration results is provided
Information		understanding of the exploration results including a		in the text of the release.
		tabulation of the following information for all Material		No information has been excluded.
		drill holes:

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		o easting and northing of the drill hole collar
Drill hole Information (continued)		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		In reporting Exploration Results, weighting averaging		A nominal low cut grade of 1% Zn+Pb has been chosen to differentiate
aggregation		techniques, maximum and/or minimum grade		mineralised material from unmineralised material, once assays are returned.
methods		truncations (eg cutting of high grades) and cut-off		Aggregates were calculated as weighted averages using the above cut off grade
		grades are usually Material and should be stated.		typically allowing only 10m of total internal dilution to be included, with a
		Where aggregate intercepts incorporate short lengths of		maximum individual length of waste thickness not exceeding 4m. GDD147 is
		high grade results and longer lengths of low grade		quoted as having a 41.0m intercept, of this 20.0m is waste material.
		results, the procedure used for such aggregation should		No metal equivalents are used.
		be stated and some typical examples of such
		aggregations should be shown in detail.
		The assumptions used for any reporting of metal
		equivalent values should be clearly stated.
Relationship		These relationships are particularly important in the		All drill holes are variable orientated. Little confidence has been established in
between		reporting of Exploration Results.		the orientation of the mineralisation at this stage other than a general dip and
mineralisatio		If the geometry of the mineralisation with respect to the		strike.
n widths and		drill hole angle is known, its nature should be reported.		The mineralisation is currently thought to be roughly tabular and dipping to the
intercept		If it is not known and only the down hole lengths are		south-south west at an angle of approximately 30 degrees.
lengths		reported, there should be a clear statement to this effect		True widths of intercepts are not known at this stage. Diagrams in the text show
		(eg ‘down hole length, true width not known’).		the interpreted relationship between mineralisation intercepts and strata.
				GDD132A, GDD137, GDD144, GDD145, GDD147, and GDD148A intersect at a high
				angle, and true width is expected to be 30-50% of what is reported.
Diagrams		Appropriate maps and sections (with scales) and		Please refer to Figures 1, 2, 3, 4, 5, 6, and 7 for this data.
		tabulations of intercepts should be includedfor any

16

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		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		Where comprehensive reporting of all Exploration		The results reported in the above text are comprehensively reported in a
reporting		Results is not practicable, representative reporting of		balanced manner.
		both low and high grades and/or widths should be
		practiced to avoid misleading reporting of Exploration
		Results.
Other		Other exploration data, if meaningful and material,		A significant amount of mining, exploration, survey, and environmental data has
substantive		should be reported including (but not limited to):		been recovered from the Bergamo State Archives and is currently being
exploration		geological observations; geophysical survey results;		translated and digitized.
data		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		Future works at Gorno would include rehabilitation of exploration drives, an
		for lateral extensions or depth extensions or large-scale		exploration decline from the 940 level, and drilling diamond drill holes to test for
		step-out drilling).		continuity of the Colona Fortuna mineralisation across strike and down plunge.
		Diagrams clearly highlighting the areas of possible		Please refer to Figure 1 for areas that are open to extensions, these are shown as
		extensions, including the main geological interpretations		high priority exploration targets. Release of future detailed drilling plan data is
		and future drilling areas, provided this information is not		commercially sensitive, subject to change on review; and will not be detailed
		commercially sensitive.		here.

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