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ARIKA RESOURCES LIMITED Capital/Financing Update 2026
64420_rns_2026-05-04_14f880ed-5927-46dd-a30b-3df15bca9378.pdf
Capital/Financing Update
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ASX: ARI
ARIKA RESOURCES
ASX RELEASE: 05 May 2026
Kookynie Gold Project, WA – Exploration Update
ARIKA SECURES $211K IN EIS CO-FUNDING TO TEST HIGH-PRIORITY TARGETS AT THE KOOKYNIE GOLD PROJECT, WA
Funding to support drill testing of extensional targets at the historical high-grade Cosmopolitan gold mine, identified as part of a recent independent technical review
KEY HIGHLIGHTS
- Arika awarded a $211K EIS co-funded drilling grant for the Kookynie Gold Project.
- The grant is for deep diamond drilling to test multiple high-priority expansional targets identified at Arika’s high-grade Cosmopolitan Gold Mine, within the highly-sought after Kookynie District of WA’s Northeastern Goldfields.
- The new targets were identified as part of a detailed independent review, including a 3D reconstruction of the deposit and associated underground and open pit mine workings, by Geological Resource Estimation and Mining Consulting Group, ERM (formerly CSA Global).
- Large mineral system represents large-scale opportunity:
- Multiple parallel N-S trending primary structures Cosmopolitan/Altona/Puzzle¹ and second order NE trending linking structures (Scotchman/Irishman/Welshman trends).
- High-grade shoots controlled by dilational flexures developed at the intersection between first and second order faults.
- Strike and depth extensions remain under-explored.
- Arika’s historical Cosmopolitan and Altona Gold Mines were two of the largest and highest-grade gold producers at Kookynie during the late 19th and early 20th centuries, with reported production of²:
- 360,000oz @ 15g/t Au (Cosmopolitan)
- 89,000oz @ 30g/t Au (Altona)
- Mining ceased at both mines in approximately 1914 with the onset of WW1 and an inability to control high volumes of groundwater.
- Neither deposit has been subjected to systematic modern exploration.
- Drilling is scheduled to commence in coming months, subject to receipt of all statutory approvals.
¹ Note the Puzzle-Puzzle North Gold deposits are owned by Genesis Minerals ASX:GMD
² Cautionary Statements
The Production details for the Altona and Cosmopolitan Mines are referenced from publicly available data sources. The source and date of the production data reported has been referenced in the ASX Announcement “Metallicity Farms into Eastern Goldfields Gold Projects” dated 6 May 2019. The historical production data have not been reported in accordance with the JORC Code 2012. A Competent Person has not done sufficient work to disclose the historical production data in accordance with the JORC Code 2012. It is possible that following further evaluation and/or exploration work that the confidence in the prior reported production data may be reduced when reported under the JORC Code 2012. Nothing has come to the attention of the Company that causes it to question the accuracy or reliability of the historical production data, and an assessment of the additional exploration or evaluation work that is required to report the data in accordance with JORC Code 2012 will be undertaken as part of the Company’s development plan.
ABN: 92 086 839 992
www.arika.com.au
Phone: 08 6500 0202
Arika's Managing Director, Justin Barton, said: "We are delighted to have secured EIS co-funding support from the Western Australian Government for a part of our upcoming drilling campaign at the Kookynie Gold Project. The award of this grant represents a strong endorsement – both of the significant potential of the project and of the quality of the work being undertaken by our technical team and consultants.
"The assessment completed by ERM, in collaboration with our technical team, has been outstanding. It's been a huge effort compiling and validating all the historical data and reconstructing the Cosmopolitan ore bodies and underground mine workings. The 3D modelling now gives us the ability to look at these deposits in much greater detail than ever before, enabling us to unlock the controls on deposit geometries and determine the orientation of the high-grade shoots within each of the lodes.
"Archaean orogenic gold systems are big, and the Cosmopolitan is no exception. As a result of our recent work, we now interpret the Cosmopolitan-Altona-Puzzle deposits to be part of a single, very large mineralised system. This is further reinforced by our recognition of multiple second order NE trending structures linking each of these primary lodes. None of these have been seriously explored in the past.
"In terms of deposit models and the scale of the opportunity, we are now seeing similarities with the Sons of Gwalia and Tarmoola deposits at Leonora (owned by Genesis Minerals, ASX: GMD and Vault Minerals, ASX: VAU respectively). Like those, the Cosmopolitan – Altona – Puzzle deposits sit within major shear zones at or close to the contact between a regionally recognisable granite, and a broad sequence of intermediate-mafic volcanics and volcanosediments.
"Sons of Gwalia was discovered around the same time as the Cosmopolitan and was mined continuously from about 1896 to 1963, when the orebody was thought to have ended. Deep drilling by St. Barbara in the early-mid-2000's, and most recently by Genesis, has since continued to discover extensions to the deposit below what is now understood to be a zone of depletion where the original workings were terminated. The mine has now produced more than 6 million ounces of gold, has a current resource of 4.5 million oz, and is the deepest gold mine in Australia and the deepest trucking mine in the world, with resources confirmed by deep drilling to extend continuously to at least 2,600m below surface!
"By comparison, the Cosmopolitan orebody was mined from 1896 to about 1922 and to just 300m depth. All of the historical development was carried out 'on-ore' (refer to Plate 1 below) and, despite it being one of WA's most prominent gold mines, very little effective drill testing has been carried out beyond the old workings. Both Cosmopolitan and Altona – and numerous linking structures between them – remain open at depth and along strike, and the potential to discover extensions to each represents a huge opportunity in our portfolio alongside what is already a major growth asset at Yundamindra."
Arika Resources Limited (ASX: ARI) ("Arika" or "Company") is pleased to announce that it has been successful in its application for Round 33 of the Western Australian Government's Exploration Incentive Scheme (EIS) co-funded drilling program, covering the period from 1 June 2026 to 31 May 2027.
Under the scheme, Arika is entitled to receive up to 50% of direct drilling costs, capped at $206,213, and up to 50% of mobilisation costs, capped at $5,000, for a total refund of up to $211,213.
The funds will be used to test multiple targets identified recently at the Cosmopolitan and Diamantina 'Deeps' prospects, within the Company's 80%-owned Kookynie Gold Project (with Agreement to move to 100%, subject to completion conditions)³, located 45km south-east of Leonora in the world-class Northeastern Goldfields mining district of Western Australia.
3 Please refer to ASX announcement dated 02/02/2026 and 09/04/2026
ARIKA RESOURCES
Plate 1: Cosmopolitan Gold Mine circa 1902 – underground stope looking south with the main gold-bearing quartz lode dipping at 45 degrees towards the east. Mine workers provide scale. At this location, the reef is at least 4m wide true thickness.
EIS Co-Funded Drilling Update
The EIS co-funded drilling grant has been awarded for two 600m deep diamond drill-holes which have been designed to test the Cosmopolitan-Diamantina granite-hosted quartz-bearing lode some 200m down-dip below the deepest level of the known historical underground workings.
The targets represent potential depth extensions of modelled high-grade shoots developed along dilational flexures, where second order, NE trending linking structures are interpreted to intersect the main, N-S trending ore-hosting structure.
Table 1: EIS Co-Funded Drilling Target Summary
| MGA Zone 51 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Prospect | Prop_Hole ID | GDA2020_E | GDA2020_N | RL | Dip | Azi | Target RL | Planned EOH |
| Cosmopolitan Deeps | EIS01 | 354865 | 6753570 | 430 | -60 | 270 | -65 | 600 |
| Diamantina Deeps | EIS02 | 354865 | 6753170 | 430 | -60 | 270 | -65 | 600 |
Figures 1 to 6 present a 3D model of the Cosmopolitan-Diamantina-Cumberland gold deposits and underground workings, along with Prospect Location Plans, Drill-hole Collar Plans, Long Section (Vertical Longitudinal Projection) and Regional Project Location plans respectively.
ASX: ARI
Figure 1: 3D Model of the Cosmopolitan, Diamantina and Cumberland Gold Mines looking towards the north-west with gold-bearing lodes dipping east at about 45 degrees. The co-funded EIS diamond drill-holes, shown in purple, will be testing down-plunge extensions to the Cosmopolitan and Diamantina lodes beneath the historical workings and previous drilling. The parallel Altona line of workings are located about 1.4km east of the Cosmopolitan.
ABN: 92 086 839 992
www.arika.com.au
Phone: 08 6500 0202
ASX: ARI
Figure 2: Vertical Longitudinal Projection of the Cosmopolitan, Diamantina and Cumberland Gold Deposits looking west showing the target positions of two EIS co-funded diamond drillholes in relation to historical underground level developments, stopes, open pits and previous drilling. Whilst the upper levels of each of the deposits are largely mined out (shaded in grey), strike and depth extensions remain untested.
ASX: ARI
Figure 3: Plan view of the Cosmopolitan-Altona-Puzzle mineralised system along with associated NE trending second order linking structures identified as the Scotchman-Irishman-Welshman Trends over simplified geology.
Collar locations of the EIS co-funded diamond drillholes are labelled 'EIS01' and 'EIS02' respectively.
Note: The Puzzle-Puzzle North gold deposits are owned by Genesis Minerals ASX:GMD
ASX: ARI
Kookynie Gold Project
The 80% owned Kookynie Gold Project (Arika is moving to 100% ownership, subject to shareholder approval, refer ASX announcement 2 February 2026 and Notice of Meeting lodged 15 April 2026 for further details) is located 65km south-east of Leonora, 250km north of Kalgoorlie, Western Australia (Figures 4 & 5).
Regionally, the project is situated toward the westernmost margin of the Laverton Greenstone Belt (LGB) in the Yilgarn Craton of Western Australia. The LGB is one of several greenstone belts that collectively define the Kurnalpi tectonostratigraphic terrane of the Northeastern Goldfields 'Superterrane' and is one of the best endowed gold regions in Australia. It hosts multiple world-class producing mines, namely Sons of Gwalia at +10 million oz contained Gold, Sunrise Dam at 8 million oz contained Gold and Wallaby at 7 million oz contained gold (Standing 2008; Austin, 2022)⁴, which are located just ~40km north of Arika's Kookynie Gold Project and ~20-30km east of Arika's Yundamindra Gold Project respectively.
Total gold production from the belt is estimated to be in excess of 28 million ounces.
Arika holds significant tenure in the Kookynie area, second only to Genesis Minerals, and owns the greater portion of the two largest and highest-grade gold producing historical mines in the district, namely the Cosmopolitan and Altona Gold Mines with reported production totalling:
- 331,000oz at an average grade of 15 g/t Au (Cosmopolitan), and
- 88,700 oz Au at an average grade of 30g/t Au (Altona)
Cosmopolitan is a N-S striking granite hosted quartz lode dipping moderately east at between 33-40 degrees and ranging in thickness from 0.01m to 6m true width. The lode was mined between 1895 and 1922 over a strike length of 700m, and down-dip from surface for 550m to a maximum vertical depth of 315m. The Diamantina lode to the south and the Cumberland lode to the north combine with the Cosmopolitan for a total strike length of at least 1.1km.
Mining ceased with the onset of World War 1 as a result of low gold prices, increasing operating costs and technical challenges associated with dewatering large volumes of groundwater.
Whilst the upper portions of the Cosmopolitan, Diamantina and Cumberland are essentially mined-out, the ore-hosting structure is continuous over a strike length of at least 1.1km and remains untested north and south along strike and down-dip/down-plunge at depth below the old workings. The presence of a system of stacked parallel ore lenses have been noted and exploited in the Cosmopolitan in the shallow levels however these haven't been exploited in the Cumberland nor the deeper sections of the Cosmopolitan and present as additional targets with significant potential upside.
Recent work by Arika has also identified a series of NE trending second order linking structures located between the Cosmopolitan and Altona lodes. These are recognisable in the field and in high resolution satellite imagery by a number of shallow workings and highlighted on the maps attached as the Scotchman, Irishman and Welshman Trends. No information about these lodes has been located and none of them appear to have been effectively drill tested.
⁴ Standing, Jonathon G, Terrane Amalgamation in the Eastern Goldfields Superterrane, Yilgarn Craton: Evidence from tectonostratigraphic studies of the Laverton Greenstone Belt. Precambrian Research, V161, Issues 1-2, 15 February 2008, pages 114-134.. Austin, Joseph Martin, Testing the 'terrane-boundary' concept and geodynamics in the NeoArchean: A case study of the stratigraphy from the West and East Laverton Greenstone Belts. Queensland University of Technology 2022.
The Altona lode is located about 1.4km east of the Cosmopolitan and although worked by the same company no records of the underground workings have been located. The principal ore hosting structure is parallel to the Cosmopolitan, striking N-S and dipping at a similar moderate angle of about 45 degrees east. It can be mapped at surface for at least 2km's, evidenced by a series of shallow workings, underlays and deeper shafts centred on the Altona 'Main Shaft, an impressive 3-compartment timber underlay which was developed on the outcropping reef.
Figure 4: Arika's Kookynie Gold Project showing major mines and deposits along with key target areas and prospects over simplified geology, regional and local scale TMI. Note: Sons of Gwalia +10M oz Au includes 6M oz historical production plus 4.5M oz current resource (ref Genesis Minerals 2025 Resources and Reserves ASX: GMD)
It is evident that all of the high-grade lodes occur within wider, lower grade envelopes. Mining and processing of larger tonnages of lower-grade material will be considered as part of any future project development.
Arika's Cosmopolitan and Altona deposits, the series of mineralised linking structures between them (and Genesis's Puzzle/Puzzle North deposits) are now considered to represent a single, very large, mineralised system hosted within or close to the contact between granite (the 'Dairy Monzogranite') and a broad sequence of surrounding intermediate to mafic volcanics/volcanosediments. The entire area remains under-explored and the opportunity for discovering significant gold mineralisation is considered to be high. Timing of gold mineralisation is likely synchronous with granite emplacement.
Figure 5: Regional Location Plan: Arika's Kookynie and Yundamindra Gold Projects in relation to major mines, deposits, processing facilities and established infrastructure.
This announcement is approved by the Board of Arika Resources Limited.
ENQUIRIES
Investors
Justin Barton
Managing Director
Arika Resources Ltd
+61 8 6500 0202
[email protected]
Media
Nicholas Read
Managing Director
Read Corporate
+61 8 9388 1474
[email protected]
Competent Person Statement
The information that relates to Exploration Results is based upon information compiled by Mr Steve Vallance, who is a full-time employee of Arika Resources Ltd in the role of General Manager Exploration and Executive Technical Director. Mr Vallance is a Member of The Australian Institute of Geoscientists (AIG). Mr Vallance has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he 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' (the JORC Code 2012). Mr Vallance consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Forward-Looking Statements
This announcement may contain certain "forward-looking statements" which may not have been based solely on historical facts but rather may be based on the Company's current expectations about future events and results. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have reasonable basis. However, forward-looking statements:
(a) are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies.
(b) involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements. Such risks include, without limitation, resource risk, metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks in the countries and states in which the Company operates or supplies or sells product to, and governmental regulation and judicial outcomes; and
(c) may include, among other things, statements regarding estimates and assumptions in respect of prices, costs, results and capital expenditure, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions.
The words "believe", "expect", "anticipate", "indicate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify forward-looking statements.
All forward-looking statements contained in this presentation are qualified by the foregoing cautionary statements. Recipients are cautioned that forward-looking statements are not guarantees of future performance and accordingly recipients are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.
The Company disclaims any intent or obligation to publicly update any forward-looking statements, whether as a result of new information, future events or results or otherwise.
No New Information
To the extent that this announcement contains references to prior exploration results which have been cross referenced to previous market announcements made by the Company, unless explicitly stated, no new information is contained. The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcements and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.
About Arika Resources Limited
We are focused on delivering value to shareholders through the development and discovery of high-quality gold assets, including the Kookynie and Yundamindra Gold Projects, in Western Australia.
Arika Resources Limited is continuing to build on the potential large-scale gold footprints at the Yundamindra and Kookynie Gold Projects by expanding on known mineralisation and targeting new discoveries through a pipeline of high priority brownfield and greenfield targets.
Figure 6: Regional Location Plan: Arika's Kookynie and Yundamindra Gold Projects in relation to Perth, major regional centres and established infrastructure.
JORC Code, 2012 Edition - Table 1
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Sampling techniques | • Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. | |
| • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. | ||
| • 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. | • Results reported in this announcement relate to a compilation of extensive historical sample data relevant to the Cosmopolitan Gold Mine including underground development, underground mapping and sampling and several phases of surface Reverse Circulation and Diamond Core drilling recovered from the GSWA Mine Records of the old mine workings in Departmental files. The data was first validated and digitised by P. Dreverman and presented in WAMEX Report A67918, dated January 2004. | |
| • Industry standard sampling and assaying techniques are reported to have been used in each phase of activity on the mine. | ||
| • Whilst the occurrence of gold at Cosmopolitan is described as being moderately coarse, statistical assessment of the sampling data reports that ‘the sampling and assaying is of good quality and although the gold at Cosmopolitan can be coarse grained, the results are repeatable.’ | ||
| Drilling techniques | • Drill type (eg core, reverse circulation, open-hole hammer, rotary 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, whether core is oriented and if so, by what method, etc). | • Drilling techniques include face sampling Reverse Circulation percussion drilling and NQ/HQ size diamond core drilling. |
| Drill sample recovery | • Method of recording and assessing core and chip sample recoveries and results assessed. | |
| • Measures taken to maximise sample recovery and ensure representative 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. | • Industry standard techniques are reported to have been applied. | |
| • High water flows are reported to have potentially resulted in lower recoveries and lower grades being reported in some RC drilling. | ||
| • Statistical analysis of the historical data does not suggest that any significant bias exists between sample recovery and grade. | ||
| Logging | • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. | |
| • Whether logging is qualitative or quantitative in nature. Core (or | • The data is not being used to undertake Mineral Resource estimation, mining studies or metallurgical studies. | |
| • Logging is reported as qualitative. | ||
| • The entirety of all RC drillholes and diamond cored drillholes have been geologically logged. |
12
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Sub-sampling techniques and sample preparation | • If core, whether cut or sawn and whether quarter, half or all core taken. | |
| • 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 sample preparation technique. | ||
| • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. | ||
| • 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. | ||
| • Whether sample sizes are appropriate to the grain size of the material being sampled. | • Industry standard techniques are reported to have been used for all historical data | |
| • Reports in relation to quality control measures have not been located. | ||
| • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. | ||
| • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. | ||
| • 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. | • Industry standard techniques are reported to have been used for all historical data | |
| • XRF instruments were not used. | ||
| • Reports in relation to quality control measures have not been located. | ||
| Verification of sampling and assaying | • The verification of significant intersections by either independent or alternative company personnel. | |
| • The use of twinned holes. | ||
| • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. | ||
| • Discuss any adjustment to assay data. | • Significant historical intersections have not been verified independently and are accepted as reported. | |
| • No holes have been twinned. | ||
| • No umpire analysis has been performed. | ||
| • Extensive historical data was originally recorded in hard copy by the various company’s in charge of each phase of work. That data is available via the GSWA’s WAMEX portal. | ||
| • Arika’s field data is captured digitally. | ||
| • Data is delivered electronically to the Company’s Database Manager, ERM Technical Mining Services (formerly CSA Global), Perth and stored digitally. |
13
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Location of data points | • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. | |
| • Specification of the grid system used. | ||
| • Quality and adequacy of topographic control. | • Underground sample locations were digitized from original hard copy plans with recent sampling based upon GPS control. | |
| • Grid system datum is GDA94 MGA Zone 51 grid | ||
| • Sample location points are of sufficient accuracy given the reconnaissance nature of the exploration being undertaken. | ||
| • Recent drillhole collars have been located by licenced surveyors: | ||
| • Survey observations for non-vertical collars taken at the intersection of ground level and the top-side of the PVC collar. | ||
| • Survey observations for vertical collars taken at the centre of the collar at ground level. | ||
| • Survey Equipment: Trimble R10-2 GNSS GPS (in RTK mode) | ||
| • Control: Base receiver established at Base using multiple logging sessions processed via ‘AusPos’ with check to SSM EDA21. Expected accuracies: +/20mm horizontal and +/30mm relative to vertical survey control. | ||
| Data spacing and distribution | • Data spacing for reporting of Exploration Results. | |
| • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. | ||
| • Whether sample compositing has been applied. | • Data is not being used for Mineral Resource estimates. | |
| • No sample compositing has been applied. | ||
| Orientation of data in relation to geological structure | • Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. | |
| • 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. | • All of the historical drilling has been oriented orthogonal to the strike direction of the target structure in order to minimize any potential sampling bias. | |
| Sample security | • The measures taken to ensure sample security. | • It is unknown what levels of sample security were applied to the historical sampling. |
| Audits or reviews | • The results of any audits or reviews of sampling techniques and data. | • P. Dreverman (2004) and most recently Arika’s consultants, ERM, have reviewed the results of the data and concluded that the data quality is good. |
| • QA/QC data has been explicitly reviewed by Arika’s Database Manager ERM Technical Mining Service’s and by ARI in-house technical staff, and results provide a high-level of confidence in |
14
Criteria
JORC Code explanation
Commentary
the assay data.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Mineral tenement and land tenure status | • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, 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. | • The results of the work reported on in this announcement occur on E40/61 and 40/332, ARI’s ‘Cosmopolitan’ and Altona” Prospects. | |
| • The Kookynie Project is a Joint Venture between Arika Resources Ltd and Nex Metals. ARI holds 80% with NME holding 20%. ARI is Project Manager. | ||
| • Please refer to announcement “Metallicity Achieves Earn-In On The Kookynie & Yundamindra Gold Projects” dated 20th May 2021. | ||
| • The JV partners are not aware of any over riding royalties, native title interests, historical sites, wilderness, National Park or environmental settings associated with the areas being assessed | ||
| • No impediments exist to obtaining a license to operate over the listed tenure at the time of reporting. | ||
| Exploration done by other parties | • Acknowledgment and appraisal of exploration by other parties. | • Arika has completed a review of historical data and made numerous corrections to previously supplied data from the JV partner at the beginning of the Farm In. |
| • ARI is currently assessing all open file data relevant to the project, eg DEMIRS GSWA-WAMEX website. | ||
| • The Kookynie Area been subjected to many phases of Exploration commencing with the discovery of gold in 1897 at the Cosmopolitan Gold Mine. Extensive work by Western Mining Corporation between 1934 to 1937 with Aerial Geological and Geophysical Survey of Northern Australia (AGGNSA) between 1937 to 1940. Then with WMC at 1966 and 1986, ASARCO between 1974 to 1975, Square Gold and Minerals in 1981, CRA between 1982 and 1983, and Money Mining in 1992. Between 1993 and 2008, FMR and since 2008 it has been held between |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| A&C Mining and Nex Metals Explorations. | ||
| Geology | • Deposit type, geological setting and style of mineralisation. | • Kookynie is host to, and prospective for Orogenic-style gold deposits and VHMS-style base metal mineralisation. |
| • The project area is in the Keith-Kilkenny Tectonic Zone within the north-northwest trending Archean-aged Malcolm greenstone belt. The Keith-Kilkenny Tectonic Zone is a triangular shaped area hosting a succession of Archean mafic-ultramafic igneous and meta-sedimentary rocks. Regional magnetic data indicates the Kookynie region is bounded to the west by the north-trending Mt George Shear/Perseverance Fault, the Emu Fault and Keith-Kilkenny Shear Zone to the east and the Mulliberry Granitoid Complex to the south. | ||
| • There are several styles of gold mineralisation identified in the Kookynie region: | ||
| • The largest and highest grade gold mines historically were the Cosmopolitan and Altona Gold Mines. | ||
| • The largest system discovered to date is the high-grade mineralisation being mined by Genesis Minerals (ASX:GMD) at that company's Ulysses Gold Project, the Ulysses/Admiral/Butterfly/Orient Well area, Desdemona area and Niagara area. | ||
| • The gold mineralisation is typically shear zone controlled, associated with carbonate-chlorite-biotite-sericite-sulphide alteration +/-scheelite, +/-pyritic quartz veins hosted within north to northeast dipping structures cross-cutting 'favourable' lithologies which can also extend into shears along geological contacts. | ||
| • Gold mineralisation at Cosmopolitan, Altona and Puzzle is largely hosted by shallow east-dipping shear zones within granite – the 'Dairy Monzogranite' | ||
| • Gold mineralisation elsewhere in the Kookynie ara tends to be preferentially concentrated in differentiated dolerite sills, felsic-intermediate igneous, volcanic and volcanosedimentary |
16
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| lithologies associated with pyrite/carbonate/silica/sericite wall rock alteration. | ||
| Drill hole Information | • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: | |
| ○ easting and northing of the drill hole collar | ||
| ○ elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar | ||
| ○ dip and azimuth of the hole | ||
| ○ down hole length and interception depth | ||
| ○ 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. | • Details of the location of the two EIS co-funded diamond drillholes are included within the body of the report. | |
| • The historical drillhole database is too extensive to include in this release and in the opinion of the Competent Person is not considered material at this stage of the reporting. | ||
| Data aggregation methods | • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and 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. | ||
| • The assumptions used for any reporting of metal equivalent values should be clearly stated. | • No exploration results have been reported in this release. | |
| • Gold assay grades are indicated on the traces of historical drillholes for visualization of the distribution of gold in the historical drilling. | ||
| • No metal equivalent values have been reported. | ||
| Relationship between mineralisation widths and intercept lengths | • These relationships are particularly important in the reporting of Exploration Results. | |
| • 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’). | • The proposed EIS co-funded diamond drillholes have been designed to intersect each target orthogonal to the strike and dip to ensure that intersection lengths are as close as possible to true widths. | |
| • All of the historical drilling has similarly been oriented orthogonal to the strike and dip of the target structure. | ||
| Diagrams | • Appropriate maps and sections (with scales) and tabulations of 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. | • Relevant location maps, plans and sections are included within the report. |
| • Please see main body of the announcement for the relevant figures |
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18
Criteria
JORC Code explanation
Commentary
Balanced reporting
- Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
- All results from the work completed by ARI have been presented appropriately in an industry standard manner in a form that allows for the reasonable understanding and evaluation of exploration results.
Other substantive exploration data
- Other exploration data, if meaningful and material, should be 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.
- ARI has utilised open file GSWA data.
- The area has had significant historical production and a long history of exploration activity recorded and is accessible via the MINEDEX database.
- All material results from geochemical, geophysical, geological mapping and drilling activities related to prospects across the Kookynie Gold Project have been disclosed.
- ARI is currently assessing relevant open file historical data via WAMEX ‘A’-Reports which are accessible via DEMIRS website.
Further work
- The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
- Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
- Exploratory Reverse Circulation drilling is planned to be undertaken to test priority targets during Q3/4 2026 subject to receipt of all regulatory approvals.
- Drilling of 2x EIS Co-funded diamond drillholes to test for deep extensions to the Cosmopolitan and Diamantina gold mines is currently in planning.
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Database integrity | • Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes. | |
| • Data validation procedures used. | N/A – data reported on in this announcement is not being used for mineral resource estimation. | |
| Site visits | • Comment on any site visits undertaken by the Competent Person and the outcome of those visits. | |
| • If no site visits have been undertaken indicate why this is the case. | The Competent Person regularly visits and works on all of Arika’s project areas and is satisfied that all works are being executed to industry accepted standards. | |
| Geological interpretation | • Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit. | Given the long and well documented history of mining and exploration at Cosmopolitan, and the rigour applied by the ERM Consulting |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| • Nature of the data used and of any assumptions made. | ||
| • The effect, if any, of alternative interpretations on Mineral Resource estimation. | ||
| • The use of geology in guiding and controlling Mineral Resource estimation. | ||
| • The factors affecting continuity both of grade and geology. | Group in compiling the available data, Arika has a high level of confidence in the geological interpretation of the deposit. | |
| • Mineral Resource estimates are not currently being undertaken. | ||
| • The Cosmopolitan Orebody is described as having coarse, nuggety, specimen style gold hosted within a quartz filled shear which pinches and swells along strike and up and down-dip. These factors will potentially affect the continuity of grade throughout the deposit. | ||
| Dimensions | • The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource. | N/A – Mineral Resource estimates are not currently being undertaken |
| Estimation and modelling techniques | • The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used. | |
| • The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data. | ||
| • The assumptions made regarding recovery of by-products. | ||
| • Estimation of deleterious elements or other non-grade variables of economic significance (eg sulphur for acid mine drainage characterisation). | ||
| • In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed. | ||
| • Any assumptions behind modelling of selective mining units. | ||
| • Any assumptions about correlation between variables. | ||
| • Description of how the geological interpretation was used to control the resource estimates. | ||
| • Discussion of basis for using or not using grade cutting or capping. | ||
| • The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available. | N/A – Mineral Resource estimates are not currently being undertaken | |
| Moisture | • Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content. | N/A – Mineral Resource estimates are not currently being undertaken |
| Cut-off parameters | • The basis of the adopted cut-off grade(s) or quality parameters applied. | N/A – Mineral Resource estimates are not currently being undertaken |
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Mining factors or assumptions | • Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made. | • N/A – Mineral Resource estimates are not currently being undertaken |
| Metallurgical factors or assumptions | • The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made. | • N/A – Mineral Resource estimates and metallurgical studies are not currently being undertaken |
| Environmental factors or assumptions | • Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made. | • N/A – Mineral Resource estimates are not currently being undertaken |
| Bulk density | • Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples. | |
| • The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit. | ||
| • Discuss assumptions for bulk density estimates used in the evaluation process of the different materials. | • N/A – Mineral Resource estimates are not currently being undertaken | |
| Classification | • The basis for the classification of the Mineral Resources into varying confidence categories. | • N/A – Mineral Resource estimates are not currently being undertaken |
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21
Criteria
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| • Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data). • Whether the result appropriately reflects the Competent Person’s view of the deposit. | ||
| Audits or reviews | • The results of any audits or reviews of Mineral Resource estimates. | • N/A – Mineral Resource estimates are not currently being undertaken |
| Discussion of relative accuracy/ confidence | • Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate. • The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. • These statements of relative accuracy and confidence of the estimate should be compared with production data, where available. | • N/A – Mineral Resource estimates are not currently being undertaken |
Section 4 Estimation and Reporting of Ore Reserves
(Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.)
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Mineral Resource estimate for conversion to Ore Reserves | • Description of the Mineral Resource estimate used as a basis for the conversion to an Ore Reserve. • Clear statement as to whether the Mineral Resources are reported additional to, or inclusive of, the Ore Reserves. | • N/A – Mineral Resource estimates are not currently being undertaken |
| Site visits | • Comment on any site visits undertaken by the Competent Person and the outcome of those visits. • If no site visits have been undertaken indicate why this is the case. | • N/A – Mineral Resource estimates are not currently being undertaken |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Study status | • The type and level of study undertaken to enable Mineral Resources to be converted to Ore Reserves. | |
| • The Code requires that a study to at least Pre-Feasibility Study level has been undertaken to convert Mineral Resources to Ore Reserves. Such studies will have been carried out and will have determined a mine plan that is technically achievable and economically viable, and that material Modifying Factors have been considered. | • N/A – Mineral Resource estimates are not currently being undertaken | |
| Cut-off parameters | • The basis of the cut-off grade(s) or quality parameters applied. | • N/A – Mineral Resource estimates are not currently being undertaken |
| Mining factors or assumptions | • The method and assumptions used as reported in the Pre-Feasibility or Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. either by application of appropriate factors by optimisation or by preliminary or detailed design). | |
| • The choice, nature and appropriateness of the selected mining method(s) and other mining parameters including associated design issues such as pre-strip, access, etc. | ||
| • The assumptions made regarding geotechnical parameters (eg pit slopes, stope sizes, etc), grade control and pre-production drilling. | ||
| • The major assumptions made and Mineral Resource model used for pit and stope optimisation (if appropriate). | ||
| • The mining dilution factors used. | ||
| • The mining recovery factors used. | ||
| • Any minimum mining widths used. | ||
| • The manner in which Inferred Mineral Resources are utilised in mining studies and the sensitivity of the outcome to their inclusion. | ||
| • The infrastructure requirements of the selected mining methods. | • N/A – Mineral Resource estimates are not currently being undertaken | |
| Metallurgical factors or assumptions | • The metallurgical process proposed and the appropriateness of that process to the style of mineralisation. | |
| • Whether the metallurgical process is well-tested technology or novel in nature. | ||
| • The nature, amount and representativeness of metallurgical test work undertaken, the nature of the metallurgical domaining applied and the corresponding metallurgical recovery factors applied. | ||
| • Any assumptions or allowances made for deleterious elements. | ||
| • The existence of any bulk sample or pilot scale test work and the degree to which such samples are considered representative of the orebody as a whole. | ||
| • For minerals that are defined by a specification, has the ore reserve | • N/A – Mineral Resource estimates are not currently being undertaken |
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| estimation been based on the appropriate mineralogy to meet the specifications? | ||
| Environmental | The status of studies of potential environmental impacts of the mining and processing operation. Details of waste rock characterisation and the consideration of potential sites, status of design options considered and, where applicable, the status of approvals for process residue storage and waste dumps should be reported. | N/A – Mineral Resource estimates are not currently being undertaken |
| Infrastructure | The existence of appropriate infrastructure: availability of land for plant development, power, water, transportation (particularly for bulk commodities), labour, accommodation; or the ease with which the infrastructure can be provided, or accessed. | N/A – Mineral Resource estimates are not currently being undertaken |
| Costs | The derivation of, or assumptions made, regarding projected capital costs in the study. | |
| The methodology used to estimate operating costs. | ||
| Allowances made for the content of deleterious elements. | ||
| The source of exchange rates used in the study. | ||
| Derivation of transportation charges. | ||
| The basis for forecasting or source of treatment and refining charges, penalties for failure to meet specification, etc. | ||
| The allowances made for royalties payable, both Government and private. | N/A – Mineral Resource estimates are not currently being undertaken | |
| Revenue factors | The derivation of, or assumptions made regarding revenue factors including head grade, metal or commodity price(s) exchange rates, transportation and treatment charges, penalties, net smelter returns, etc. | |
| The derivation of assumptions made of metal or commodity price(s), for the principal metals, minerals and co-products. | N/A – Mineral Resource estimates are not currently being undertaken | |
| Market assessment | The demand, supply and stock situation for the particular commodity, consumption trends and factors likely to affect supply and demand into the future. | |
| A customer and competitor analysis along with the identification of likely market windows for the product. | ||
| Price and volume forecasts and the basis for these forecasts. | ||
| For industrial minerals the customer specification, testing and acceptance requirements prior to a supply contract. | N/A – Mineral Resource estimates are not currently being undertaken | |
| Economic | The inputs to the economic analysis to produce the net present value (NPV) in the study, the source and confidence of these economic inputs including estimated inflation, discount rate, etc. | N/A – Mineral Resource estimates are not currently being undertaken |
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| • NPV ranges and sensitivity to variations in the significant assumptions and inputs. | ||
| Social | • The status of agreements with key stakeholders and matters leading to social licence to operate. | • N/A – Mineral Resource estimates are not currently being undertaken |
| Other | • To the extent relevant, the impact of the following on the project and/or on the estimation and classification of the Ore Reserves: | |
| • Any identified material naturally occurring risks. | ||
| • The status of material legal agreements and marketing arrangements. | ||
| • The status of governmental agreements and approvals critical to the viability of the project, such as mineral tenement status, and government and statutory approvals. There must be reasonable grounds to expect that all necessary Government approvals will be received within the timeframes anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss the materiality of any unresolved matter that is dependent on a third party on which extraction of the reserve is contingent. | • N/A – Mineral Resource estimates are not currently being undertaken | |
| Classification | • The basis for the classification of the Ore Reserves into varying confidence categories. | |
| • Whether the result appropriately reflects the Competent Person’s view of the deposit. | ||
| • The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if any). | • N/A – Mineral Resource estimates are not currently being undertaken | |
| Audits or reviews | • The results of any audits or reviews of Ore Reserve estimates. | • N/A – Mineral Resource estimates are not currently being undertaken |
| Discussion of relative accuracy/ confidence | • Where appropriate a statement of the relative accuracy and confidence level in the Ore Reserve estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the reserve within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors which could affect the relative accuracy and confidence of the estimate. | |
| • The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. | ||
| • Accuracy and confidence discussions should extend to specific discussions of any applied Modifying Factors that may have a | • N/A – Mineral Resource estimates are not currently being undertaken |
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Criteria
JORC Code explanation
Commentary
material impact on Ore Reserve viability, or for which there are remaining areas of uncertainty at the current study stage.
- It is recognised that this may not be possible or appropriate in all circumstances. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.
Section 5 Estimation and Reporting of Diamonds and Other Gemstones
(Criteria listed in other relevant sections also apply to this section. Additional guidelines are available in the 'Guidelines for the Reporting of Diamond Exploration Results' issued by the Diamond Exploration Best Practices Committee established by the Canadian Institute of Mining, Metallurgy and Petroleum.)
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Indicator minerals | • Reports of indicator minerals, such as chemically/physically distinctive garnet, ilmenite, chrome spinel and chrome diopside, should be prepared by a suitably qualified laboratory. | • N/A – Exploration for diamonds and other gemstones is not currently being undertaken |
| Source of diamonds | • Details of the form, shape, size and colour of the diamonds and the nature of the source of diamonds (primary or secondary) including the rock type and geological environment. | • N/A – Exploration for diamonds and other gemstones is not currently being undertaken |
| Sample collection | • Type of sample, whether outcrop, boulders, drill core, reverse circulation drill cuttings, gravel, stream sediment or soil, and purpose (eg large diameter drilling to establish stones per unit of volume or bulk samples to establish stone size distribution). | |
| • Sample size, distribution and representivity. | • N/A – Exploration for diamonds and other gemstones is not currently being undertaken | |
| Sample treatment | • Type of facility, treatment rate, and accreditation. | |
| • Sample size reduction. Bottom screen size, top screen size and re-crush. | ||
| • Processes (dense media separation, grease, X-ray, hand-sorting, etc). | ||
| • Process efficiency, tailings auditing and granulometry. | ||
| • Laboratory used, type of process for micro diamonds and accreditation. | • N/A – Exploration for diamonds and other gemstones is not currently being undertaken | |
| Carat | • One fifth (0.2) of a gram (often defined as a metric carat or MC). | • N/A – Exploration for diamonds and other gemstones is not currently being undertaken |
| Sample grade | • Sample grade in this section of Table 1 is used in the context of carats per units of mass, area or volume. | |
| • The sample grade above the specified lower cut-off sieve size should be reported as carats per dry metric tonne and/or carats per 100 dry | • N/A – Exploration for diamonds and other gemstones is not currently being undertaken |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| metric tonnes. For alluvial deposits, sample grades quoted in carats per square metre or carats per cubic metre are acceptable if accompanied by a volume to weight basis for calculation. | ||
| • In addition to general requirements to assess volume and density there is a need to relate stone frequency (stones per cubic metre or tonne) to stone size (carats per stone) to derive sample grade (carats per tonne). | ||
| Reporting of Exploration Results | • Complete set of sieve data using a standard progression of sieve sizes per facies. Bulk sampling results, global sample grade per facies. Spatial structure analysis and grade distribution. Stone size and number distribution. Sample head feed and tailings particle granulometry. | |
| • Sample density determination. | ||
| • Per cent concentrate and undersize per sample. | ||
| • Sample grade with change in bottom cut-off screen size. | ||
| • Adjustments made to size distribution for sample plant performance and performance on a commercial scale. | ||
| • If appropriate or employed, geostatistical techniques applied to model stone size, distribution or frequency from size distribution of exploration diamond samples. | ||
| • The weight of diamonds may only be omitted from the report when the diamonds are considered too small to be of commercial significance. This lower cut-off size should be stated. | • N/A – Exploration for diamonds and other gemstones is not currently being undertaken | |
| Grade estimation for reporting Mineral Resources and Ore Reserves | • Description of the sample type and the spatial arrangement of drilling or sampling designed for grade estimation. | |
| • The sample crush size and its relationship to that achievable in a commercial treatment plant. | ||
| • Total number of diamonds greater than the specified and reported lower cut-off sieve size. | ||
| • Total weight of diamonds greater than the specified and reported lower cut-off sieve size. | ||
| • The sample grade above the specified lower cut-off sieve size. | • N/A – Exploration for diamonds and other gemstones is not currently being undertaken | |
| Value estimation | • Valuations should not be reported for samples of diamonds processed using total liberation method, which is commonly used for processing exploration samples. | |
| • To the extent that such information is not deemed commercially sensitive, Public Reports should include: | ||
| o diamonds quantities by appropriate screen size per facies or depth. | • N/A – Exploration for diamonds and other gemstones is not currently being undertaken |
26
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| ○ details of parcel valued. | ||
| ○ number of stones, carats, lower size cut-off per facies or depth. | ||
| • The average $/carat and $/tonne value at the selected bottom cut-off should be reported in US Dollars. The value per carat is of critical importance in demonstrating project value. | ||
| • The basis for the price (eg dealer buying price, dealer selling price, etc). | ||
| • An assessment of diamond breakage. | ||
| Security and integrity | • Accredited process audit. | |
| • Whether samples were sealed after excavation. | ||
| • Valuer location, escort, delivery, cleaning losses, reconciliation with recorded sample carats and number of stones. | ||
| • Core samples washed prior to treatment for micro diamonds. | ||
| • Audit samples treated at alternative facility. | ||
| • Results of tailings checks. | ||
| • Recovery of tracer monitors used in sampling and treatment. | ||
| • Geophysical (logged) density and particle density. | ||
| • Cross validation of sample weights, wet and dry, with hole volume and density, moisture factor. | • N/A – Exploration for diamonds and other gemstones is not currently being undertaken | |
| Classification | • In addition to general requirements to assess volume and density there is a need to relate stone frequency (stones per cubic metre or tonne) to stone size (carats per stone) to derive grade (carats per tonne). The elements of uncertainty in these estimates should be considered, and classification developed accordingly. | • N/A – Exploration for diamonds and other gemstones is not currently being undertaken |
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