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Artemis Resources Limited Capital/Financing Update 2014

Jun 29, 2014

10429_rns_2014-06-29_5da10ea3-7120-4877-8ba7-58afe4b692d5.pdf

Capital/Financing Update

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ASX Announcement 30 June 2014

COMPLETION OF GOLD PROJECT ACQUISITION – UPDATE ON WEST PILBARA RESOURCE STATUS

WEERIANNA GOLD PROJECT AND WEST PILBARA EXPLORATION

  • Completion of acquisition of ex-Homestake gold project increases Artemis gold inventory

  • Weerianna contains 70,000 oz gold (Au) resource with potential for significant resource additions

  • Potential exploration/development synergies with Artemis’ nearby Carlow Castle project

  • Carlow Castle Prospect contains 40,000 oz Au (and 2,500t copper) resource – and remains open

  • Artemis is a major tenement holder in the West Pilbara with key base metals and gold prospects

  • A complete review of all geophysical data has been initiated to refine proposed drill program design

  • Rights issue to raise up to $1.27 million (before costs) to primarily fund exploration of West Pilbara project

Artemis Resources Limited (ASX: ARV) is pleased to announce the completion of the acquisition of 51% of the Weerianna gold project and to provide additional background information regarding the existing JORC (2012) resource estimates for the Weerianna and Carlow Castle Prospects. This information was inadvertently omitted from Artemis’ ASX announcement “ Acquisition of Gold Deposit to Kickstart Pilbara Exploration ” dated 26 June 2014. The acquisition of the Weerianna Gold Project (Figure 1) enhances the Company’s existing West Pilbara Project.

With the inclusion of Weerianna, the gold inventory controlled by Artemis** in the West Pilbara has now increased to 110,000 oz (Table 1). The Company’s objective is to significantly increase the gold and base metal inventory of its West Pilbara Project, including at Weerianna, with exploration drilling.

Table 1: West Pilbara Project – JORC (2012) Inferred Resource Table

Project Cutoff Grade
(Aug/t)		 Tonnes (t) Au (g/t) Cu (%) Contained Au
(oz)		 Contained Cu
(t)
Weerianna 1.0 1,005,000 2.2 - 70,000 -
Carlow Castle 1.0 416,000 2.9 0.6% 40,000 2,500

Note: Rounding may result in apparent inconsistencies within this table *Resources reported as 100%

The Weerianna Gold Project (ARV 51%) currently hosts an Inferred Mineral Resource of 1 million tonnes at 2.2 g/t Au for a total of 70,000 ounces of gold using a 1.0 g/t Au cut-off grade, estimated in accordance with JORC (2012). Excellent potential exists for a substantial increase in tonnage as the current resource is open at depth and along strike.

The Carlow Castle prospect (ARV 100%) is located 7 km southwest of the Weerianna project, part of Artemis’ West Pilbara portfolio (Figure 1), and currently hosts an Inferred Mineral Resource of 416,000 tonnes at 2.9 g/t Au and 0.6% copper (Cu) for total contained metal of approximately 40,000 ounces of Au and 2,500 tonnes of Cu, estimated in accordance with JORC (2012).

The acquisition of Weerianna is part of an ongoing process of aggregating tenements in the West Pilbara area that are geographically proximate and geologically contiguous with the potential of hosting an economically viable resource.

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Artemis Resources Limited ABN: 80 107 051 749 Telephone: +61 2 9078 7670 | Facsimile: +61 2 9078 7661 | Email: [email protected] Level 9, 50 Margaret Street, SYDNEY NSW 2000 | PO Box R933 Royal Exchange, NSW 1225 Australia

www.artemisresources.com.au

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Figure 1: Location Plan – Artemis West Pilbara tenure and Weerianna Gold Project

Key Acquisition Terms

As per Artemis’ 26 June 2014 announcement, the Weerianna Gold Project is the sole asset of Australian private company Western Metals Pty Ltd and is located within Mining Lease M47/223 (Figure 1). The key terms of the acquisition are as follows:

  • Artemis acquires 51% of Western Metals Pty Ltd from the Vendor (an unrelated party to the Company) for 76,562,500 fully paid Artemis shares at a deemed price of $0.004 per share (a premium to current share price), and 76,562,500 unlisted options with exercise price $0.003 and expiry date of 30 June 2016. The Vendor shall be entitled to a free carried interest (in respect of its retained share) up to a decision to mine and a gross royalty of 2%.

  • Artemis has an option to acquire a further 29% to take its interest in Western Metals Pty Ltd to 80%, on the same terms pro rata as it has acquired the 51% i.e. 43,535,539 shares and 43,535,539 unlisted options with the same terms outlined above.

  • The Weerianna tenement is subject to a plaint. The vendor has advised that it has met its minimum expenditure commitment and that the plaint has no merit (refer ASX announcement 26 June 2014).

ASX Announcement dated 30 June 2014

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Weerianna Gold Resource

A Mineral Resource estimate incorporating all drilling on the Weerianna Gold Project was undertaken in August 2009 by an independent consultancy group. While no significant exploration activities affecting the resource have been completed since that time, the Inferred Mineral Resource was recently reviewed by the same consultancy group and upgraded to comply with JORC (2012). The review resulted in an estimate of an Inferred Mineral Resource containing 70,000 ounces of gold (see Appendix and Table 2). A density of 2.2t/m[3] (oxide), 2.6t/m[3] (transitional) and 2.8t/m[3] (primary) was used to estimate resource block tonnage for all lodes.

Table 2: Weerianna Gold Deposit – Inferred Mineral Resource Estimate (above 1g/t Au)

Material Tonnes(t) Au(g/t) Contained Au(oz)
Oxide 125,000 2.31 9,000
Transitional 710,000 2.16 49,000
Primary 171,000 2.12 12,000
GRAND TOTAL 1,005,000 2.17 70,000

Note: Rounding may result in apparent inconsistencies within this table *Resources reported as 100%

The Weerianna gold deposit is located within a chert-ultramafic schist sequence, on the overturned eastern limb of an east-northeast trending syncline (Figure 2). The Weerianna JORC (2012) Mineral Resource was estimated based on a combination of 147 RC and 5 diamond drill holes drilled by Noranda and Homestake between 1986 and 1997 (refer to ASX announcement dated 26 June 2014). Drill hole spacing throughout the Weerianna deposit is primarily on a semiregular grid of 25m along-strike, with 20m average spacing across-strike. Hole depths range from 30 to 180 metres and were drilled either to grid north or south (generally orthogonal to strike), and angled -60°. Sampling was conducted primarily on 1m intervals and analysed by either aqua regia digestion or fire assay.

Four distinct mineralisation zones comprise the deposit, with an overall east-west trend and steep dip of approximately -80° towards grid south. The deposit has been defined as extending 600m along-strike, currently with a maximum down-dip extent of 110m. Mineralisation at Weerianna is associated with quartz veins, which are controlled by the degree of schistosity present. Gold mineralisation was digitised on cross sections, and snapped to drill intercepts, using an approximate lower cut-off grade of 0.5 g/t Au. Sectional envelopes were then linked to form 3D solids. Further details of the deposit geology, drilling techniques, assay analysis and interpolation methodology are listed in the Appendix following this report.

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Figure 2: Weerianna Gold Project (M47/223) – Geology and Mineralisation

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The resource was estimated using ordinary kriging interpolation for all lodes, with interpolation estimated independently for each lode and restricted to blocks located within each lode. Top-cuts of either 10g/t or 20g/t were applied to selected lodes in order to constrain extreme values and reduce their impact on estimated grades. Lodes were classified as Inferred on the basis of drillhole spacing, sampling, lode geometry, bulk density and confidence in grade continuity. A drill hole plan and schematic cross section are included in the Appendix to this announcement.

Detailed studies have yet to be undertaken to assess the viability of economically extracting and processing the Weerianna Mineral Resource, however the Company will test the Weerianna deposit with further drilling down dip and along strike with the objective of expanding the resource inventory. Drill planning is currently underway.

Carlow Castle Gold-Copper Resource

A Mineral Resource estimate for the Carlow Castle (South) Project was undertaken in 2013 by an independent consultancy group in order to comply with JORC (2012) guidelines. While that resource estimate was first released publicly in the Artemis 2013 Annual Report, details of the Inferred Resource estimation methodology are now provided below. The estimation resulted in an Inferred Mineral Resource containing 40,000 ounces of gold and 2,500 tonnes of copper (Cu) (see Appendix and Table 3).

Table 3: Carlow Castle (South) Au-Cu Deposit – Inferred Mineral Resource Estimate (above 1g/t Au)

Material Tonnes(t) Au(g/t) Cu(%) Contained Au(oz) Contained Cu(t)
Oxide/Supergene 62,000 6.3 0.9 13,000 500
Primary 354,000 2.3 0.6 26,000 2100
GRAND TOTAL 416,000 2.9 0.6 40,000 2500

*Note: Rounding may result in apparent inconsistencies within this table

The Carlow Castle (South) JORC (2012) Mineral Resource was estimated based essentially on 64 RC drill holes drilled by Legend Mining between 1995 and 2000. All holes were drilled at approximately 60 degree dips and approximately orthogonal to strike (Figure 3). A further 21 holes (including four diamond drill holes) were completed prior to the Legend drilling and these holes were utilised in the geological modelling stage, however only the Legend drill holes were used in the grade modelling due to their greater reliability.

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Figure 3: Carlow Castle South – Geology and Drillhole Plan (see Legend on Figure 3a)

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Figure 3a: Carlow Castle South – Legend to Figure 3

Mapping of the surface outcrop and drilling at Carlow Castle has outlined a number of narrow sub parallel vein zones with gold +/- copper mineralisation, however Carlow Castle South is primarily hosted within two steep north dipping sub parallel mineralised shears. Further details of the deposit geology, drilling techniques and analysis methodology are listed in the Appendix following this report.

The mineralisation was digitised on cross sections, snapping to the drill intercepts, using a lower cut-off grade of 0.5 metal content, where the metal content is defined as the total of Au g/t and Cu%. This cut-off was chosen to define the mineralised envelope because the copper and gold are both strongly associated with each other in the veins and are both potentially economically recoverable with a gram of gold (1 gram = $41) worth approximately the same as 1% copper (10 kilograms = $70) considering the extra cost of extraction and smelter charges for copper.

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Figure 4: Carlow Castle South – Cross section (506,825E) of Drillholes and Mineralised Zones

The two mineralised zones on each cross section were then linked by wireframes to produce solids. Since no proper lithological logs were available it was assumed that the upper 25 metres were oxidised with the deeper portion of the veins in the primary zone. Separate wireframes were produced for the Oxide and Primary zones in each of the two mineralised shears.

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The grades were interpolated into the model cells using an Inverse Distance Cubed (ID3) algorithm. The grades in each mineralised shoot were wireframed and modelled separately as were the Oxide and Primary zones with only the grades within each respective wireframe being used to extrapolate grades within each wireframe.

Conservative bulk densities of 2.0t/ m[3] in the oxide zone and 2.6t/ m[3] in the primary zone, based on standard values for basalt that hosts the mineralised shears, were used to convert volumes to tonnes. The modelling indicated that the grades in the oxide zone are significantly higher than in the primary zone, possibly due to supergene enrichment.

The Carlow Castle resource was classified by the independent consultant as Inferred based on the spacing of the drilling and quality of the data used in the estimation.

Detailed studies have not been undertaken to assess the viability of economically extracting and processing the Carlow Castle Mineral Resource, however additional drilling is envisaged to test the additional resource potential.

Refer to ASX announcement dated 26 June 2014 for details of current plaint action.

Rights Issue

On 26 June 2014, Artemis announced a pro rata non-renounceable rights issue (“Rights Issue”) of up to 425,798,911 new shares on the basis of one (1) new share for every two (2) shares held by eligible shareholders on 8 July 2014 (“Record Date”), at an issue price of $0.003 per share with one (1) free attaching option (exercisable at $0.003 on or before 31 July 2016) for every four (4) new shares issued, to raise up to approximately A$1.27 million (before costs).

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ABOUT ARTEMIS RESOURCES

Artemis Resources Limited is a resources exploration company with a focus on its prospective Mount Clement (gold), Eastern Hills (antimony), Yandal (gold) and West Pilbara (gold and base metals) projects in Western Australia. These projects have significant exploration potential and close proximity to existing important deposits or producing mines. Artemis aims to develop a significant gold inventory through exploration and acquisitions which have the potential to become mines and create shareholder value.

For further information, please contact:

Guy Robertson Executive Director Phone: +61 2 9078 7670 Email: [email protected] Web Site: www.artemisresources.com.au

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Figure 4
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Figure 5: ARV Project Locations

Competent Person Statements

The information in this document that relates to Weerianna Mineral Resources is based on information compiled or reviewed by Mrs Fleur Muller, who is a Member of The Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mrs Muller is a consultant to Artemis Resources Ltd, and is employed by Geostat Services Pty Ltd. Mrs Muller has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mrs Muller consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

The information in this document that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves at Carlow Castle is based on information compiled by Mr Philip A Jones, who is a Corporate Member of The Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists and independent consultant to the Company. Mr Jones has sufficient experience which is relevant to the style of mineralisation and type of deposit 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’. Mr Jones consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this document that relates to other Exploration Results is based on information compiled or reviewed by Mr Trevor Woolfe, who is a Member of The Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Woolfe is a consultant to the Company, and is employed by Alexander Cable Pty Ltd. Mr Woolfe has sufficient experience which is relevant to the style of mineralisation and type of deposit 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’. Mr Woolfe 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 report contains forecasts, projections and forward looking information. Such forecasts, projections and information are not a guarantee of future performance and involve unknown risks and uncertainties, many of which are out of Artemis’ control. Actual results and developments will almost certainly differ materially from those expressed or implied. Artemis has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. To the maximum extent permitted by applicable laws, Artemis makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assumes no liability for (1) the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission from, any information, statement or opinion contained in this report and (2) without prejudice to the generality of the foregoing, the achievement or accuracy of any forecasts, projections or other forward looking information contained or referred to in this report.

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APPENDIX

JORC Code, 2012 Edition – Table 1: Weerianna

Section 1 Sampling Techniques and Data

(Criteriainthis sectionapply to allsucceeding sections.) sectionapply to allsucceeding sections.)
Criteria JORC Code explanation Commentary
Sampling Nature and quality of sampling (eg cut channels,
Reverse circulation drilling was used to obtain 1m
techniques random chips, or specific specialised industry drill chip samples from which a sample was
standard measurement tools appropriate to the collected for submission to the laboratory for
minerals under investigation, such as down hole analysis. Diamond drillholes were sampled at 1m
gamma sondes, or handheld XRF instruments, intervals and half core splits sent to the laboratory.
etc). These examples should not be taken as
limiting the broad meaning of sampling.		 Samples from each RC interval were collected in a
cyclone and split using a 3 level riffle splitter. Wet
Include reference to measures taken to ensure samples were grab sampled for assay and the
sample representivity and the appropriate residual sample left to dry for later resampling if
calibration of any measurement tools or systems gold values were returned in the initial grab
used. sample.
Aspects of the determination of mineralisation Several drill campaigns were conducted and
that are Material to the Public Report. samples submitted under different conditions:
In cases where ‘industry standard’ work has
WRC001-WRC024: Composite samples over
been done this would be relatively simple (eg 4m were submitted for Au (20gm AAS) at
‘reverse circulation drilling was used to obtain 1 SGS Laboratories, Perth. Anomalous 4m
m samples from which 3 kg was pulverised to composite samples were then re-run by fire
produce a 30 g charge for fire assay’). In other assay of the individual 1m samples.
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.
WRC025-WRC046 had 1m samples sent to
SGS Labs for analysis by AAS determination
on 20gm samples after aqua regia digestion.
Samples > 0.5 g/t Au were repeated by fire
assay using a 50gm sample.

WRC047-WRC086 were subject to a similar
laboratory analysis as above, with initial AAS
determination after aqua regia digestion,
followed by fire assay analysis on samples
>0.5 g/t Au. Samples returning >5 g/t Au
were re-checked by fire assay using a re-
split from the original coarse residue.

WRC087-WRC132 had 1m samples sent to
AAL for analysis by 50gm fire assay.

Analysis procedure for WRC133-WRC147 is
not detailed in technical reports, however, it
is believed that 1m samples were submitted
for 50gm fire assay.
Drilling Drill type (eg core, reverse circulation, open-hole
According to historical annual reports, RC drilling
techniques hammer, rotary air blast, auger, Bangka, sonic, utilised a nominal 4½ inch diameter face-sampling
etc) and details (eg core diameter, triple or hammer.
standard tube, depth of diamond tails, face-
sampling bit or other type, whether core is
oriented and if so, by what method, etc).		 Diamond drillholes were drilled using the HQ triple
tube method.
Drill sample Method of recording and assessing core and Recoveries for diamond holes (DDH) were
recovery chip sample recoveries and results assessed. recorded by the geologist in the field at the time of
Measures taken to maximise sample recovery & drilling/logging.
ensure representative nature of the samples. Recoveries for diamond holes are variable but
Whether a relationship exists between sample generally poor.

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Criteria JORC Code explanation JORC Code explanation Commentary Commentary
recovery and grade and whether sample bias As only 5 diamond holes were drilled, analysis
may have occurred due to preferential loss/gain was not conducted to determine any relationships
of fine/coarse material. between sample recovery and grade.
Logging Whether core and chip samples have been Systematic logging describes the drillhole lithology
geologically and geotechnically logged to a level and quartz veining to a level of detail to support
of detail to support appropriate Mineral appropriate Mineral Resource estimation.
Resource estimation, mining studies and
metallurgical studies.		 Qualitative logging of samples included (but was
not limited to) lithology, mineralogy, veining and
Whether logging is qualitative or quantitative in weathering.
nature. Core (or costean, channel, etc)
photography.		 Quantitative information was not available at the
time of resource estimation, however this will be
The total length and percentage of the relevant followed up by due diligence of the database and
intersections logged. associated reports.
Every metre (100%) of RC and DD drilling was
geologically logged and sampled.
Sub- If core, whether cut or sawn and whether Details of core sampling have not yet been found
sampling quarter, half or all core taken. in historical reports but will be covered in due
techniques
and sample
preparation
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.		 diligence.
All RC samples were collected in a cyclone and
split using a 3 level riffle splitter to maximise and
maintain a consistent and representative sample.
The majority of samples were dry. Wet RC
samples were grab sampled.
Quality control procedures adopted for all sub-
sampling stages to maximise representivity of
samples.		 RC sampling methods were to industry standard
and appear appropriate for the style of
mineralisation.
Measures taken to ensure that the sampling is
representative of the in situ material collected,
including for instance results for field		 Limited field duplicates and coarse residue resplits
were collected and analysed.
duplicate/second-half sampling. A sample size of 2-4kg was collected and
Whether sample sizes are appropriate to the
grain size of the material being sampled.		 considered appropriate and representative for the
grain size and style of mineralisation
Quality of The nature, quality and appropriateness of the Samples dried, jaw and roll crushed, split and
assay data assaying and laboratory procedures used and pulverised in a steel mill. Assays from earlier RC
and whether the technique is considered partial or holes analysed by AAS determination on 20gm
laboratory total. sample after aqua regia digestion. Samples
tests For geophysical tools, spectrometers, handheld
XRF instruments, etc, the parameters used in
determining the analysis including instrument		 >0.5g/t Au repeated by fire assay on 50g charge.
Assays from later RC holes were determined by
50g fire assay.
make and model, reading times, calibrations Assay and lab techniques were industry standard
factors applied and their derivation, etc. at the time of collection and appropriate for the
Nature of quality control procedures adopted (eg style of mineralisation.
standards, blanks, duplicates, external No geophysical or hand-held tools were reported
laboratory checks) and whether acceptable as being utilised for the drilling programs in
levels of accuracy (ie lack of bias) and precision question.
have been established. Limited field duplicates and coarse residue
resplits were collected and analysed.
Verification The verification of significant intersections by A very small number of coarse residue samples
of sampling either independent or alternative company (40) were submitted to an umpire laboratory for
and assaying personnel. independent analysis. The dataset was
The use of twinned holes. considered too small for meaningful conclusions to
be derived.
Documentation ofprimary data, data entry

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Criteria JORC Code explanation JORC Code explanation Commentary Commentary
procedures, data verification, data storage No twinning of holes has been conducted to date,
(physical and electronic) protocols. according to historical reports.
Discuss any adjustment to assay data. Limited verification was performed by Geostat
Services at the time of resource estimation in
2009.
No adjustments of assay data have yet been
discovered in historical reports.
Location of Accuracy and quality of surveys used to locate Drilling was performed prior to 2000 and as such,
data points drill holes (collar and down-hole surveys), hole locations were surveyed by local contract
trenches, mine workings and other locations surveyors, and assumed to be accurate.
used in Mineral Resource estimation. Downhole surveys using camera in rods for RC
Specification of the grid system used. holes WRC133-146. Other RC holes to be
Quality and adequacy of topographic control. reviewed in due diligence. Downhole surveys
using Eastman camera for 4 diamond holes
WDH002, 032, 103, 106.
Grid system used is MGA 94 (Zone 50), with
conversion of coordinates to a local grid for
resource estimation and planning.
Topography surface generated from surveyed drill
collars.
Data spacing
Data spacing for reporting of Exploration Holes drilled on a total of 18 drill sections with an
and Results. average 25m spacing along-strike and 20m
distribution Whether the data spacing and distribution is across-strike.
sufficient to establish the degree of geological Data spacing is considered sufficient for the
and grade continuity appropriate for the Mineral establishment and classification of an Inferred
Resource and Ore Reserve estimation resource with respect to this style of
procedure(s) and classifications applied. mineralisation.
Whether sample compositing has been applied. WRC001-WRC024: Composite 4m samples were
submitted for analysis. Anomalous 4m composite
samples were then re-run by fire assay of the
individual 1m samples. All later RC holes were not
composited and were sampled at 1m intervals.
Orientation Whether the orientation of sampling achieves Most drill holes are planned to intersect the
of data in unbiased sampling of possible structures and interpreted mineralised structures/lodes as close
relation to the extent to which this is known, considering to a perpendicular angle as possible (subject to
geological the deposit type. physical access).
structure
If the relationship between the drilling orientation
Drilling orientation and subsequent sampling is
and the orientation of key mineralised structures unbiased in its representation of reported material.
is considered to have introduced a sampling
bias, this should be assessed and reported if
material.
Sample The measures taken to ensure sample security. As the drilling was undertaken from 1986-1996,
security detailed documentation of chain of custody was
not widespread industry standard at that time.
Audits or The results of any audits or reviews of sampling Comparisons were made between aqua regia and
reviews techniques and data. fire assay (repeat) methods on WRC025 to
WRC086 to assess reliability. It was considered
that fire assays are reliable and should replace
aqua regia assays for resource modelling and
other applications.
Comparison of 628 repeats with original samples
show a close and acceptable reconciliation.

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Criteria JORC Code explanation Commentary Commentary
It is acknowledged that there could be variability
imposed by the use of three different laboratories
over the various programs and minor variations in
sampling, preparation and analysis methods.

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 M47/223 – 100% held by Western Metals Pty
tenement and ownership including agreements or material Ltd
land tenure
status		 issues with third parties such as joint ventures,
partnerships, overriding royalties, native title
interests, historical sites, wilderness or national		 Artemis proposing to acquire 80% from Western
Metals (see body of this report)
park and environmental settings. The tenement is in good standing and no known
The security of the tenure held at the time of
reporting along with any known impediments to		 impediments exist (see map elsewhere in this
report for location).
obtaining a licence to operate in the area.
Exploration Acknowledgment and appraisal of exploration Noranda drilled three percussion holes (WPH1-
done by other by other parties. 3) in the period 1978-1985. Between 1986 and
parties 1988, a large RC drilling campaign involving
132 RC holes (WRC01-132) was completed.
Five diamond drillholes were also drilled using
HQ triple tube for a total of 462m. In 1988
Noranda became Pioneer Minerals, then
Plutonic Gold in 1990; which was subsequently
taken over in 1998 by Homestake Gold Mining.
In 1990, Homestake completed a preliminary
sectional resource estimate of 238,300t @
3.49g/t Au, using a 1g/t Au lower cut-off and a
specific gravity of 2.0 down to a depth of 50-
60m. This was followed by a further 15 RC
drillholes (WRC133-147) drilled in 1996/97 to
test the depth and strike extent of the known
mineralisation.
Geology Deposit type, geological setting and style of The geological setting of the Weerianna gold
mineralisation. deposit is within a chert-ultramafic schist
sequence between two basaltic terrains. The
deposit lies on the overturned eastern limb of an
east-northeast trending syncline, located
northwest of the main regional anticlinal
structure. Mineralisation at Weerianna is
associated with quartz veins within chlorite-
serpentinite schists with variable degrees of
silicification and carbonate alteration. Quartz
veining is controlled by the schistosity, which
forms parallel to the bedding orientation of the
host rocks.
Drill hole A summary of all information material to the Drillhole details are listed in Table 3 in the report
Information understanding of the exploration results above.
including a tabulation of the following
information for all Material drill holes:		 Details are provided in local grid co-ordinates.
The MGA equivalents are being confirmed
o easting and northing of the drill hole collar during the due diligence period.
o elevation or RL (Reduced Level – elevation
above sea level in metres) of the drill hole
collar
o dip and azimuth of the hole

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Criteria JORC Code explanation JORC Code explanation JORC Code explanation Commentary Commentary
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 No exploration results are reported in this
aggregation averaging techniques, maximum and/or announcement.
methods minimum grade truncations (eg cutting of high
grades) and cut-off grades are usually Material
and should be stated.		 Exploration results have been reported
previously in historical annual reports as length-
weighted averages. An example would be from
Where aggregate intercepts incorporate short WRC-17 as follows:
lengths of high grade results and longer lengths
of low grade results, the procedure used for
such aggregation should be stated and some		 From (m)
To (m)
Au_Ave
47
48
9
48
49
4.805
typical examples of such aggregations should 49
50
1.46
be shown in detail. 50
51
1.07
The assumptions used for any reporting of
metal equivalent values should be clearly
stated.		 Weighted average=
((1x9)+(1x4.805)+(1x1.46)+(1x1.07))/(1+1+1+1) =
4m at 4.09 g/t Au
No metal equivalents are used for reporting.
Relationship These relationships are particularly important in Specific exploration results and intercept
between the reporting of Exploration Results. lengths are not provided in this release.
mineralisation
widths and If the geometry of the mineralisation with Where possible, drillholes were aligned to
intercept lengths respect to the drill hole angle is known, its
nature should be reported.		 intersect the mineralisation as close to
perpendicular as possible, thus reflecting close
If it is not known and only the down hole lengths to true width.
are reported, there should be a clear statement
to this effect (eg ‘down hole length, true width
not known’).
Diagrams Appropriate maps and sections (with scales) A planview of drillhole collar locations and
and tabulations of intercepts should be included schematic cross section are shown below.
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.

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Criteria JORC Code explanation JORC Code explanation Commentary Commentary
Balanced Where comprehensive reporting of all It is not practical to report all exploration results.
reporting 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.		 Exploration results of all drilling have been
reported in historical annual reports where the
length-weighted average has exceeded 1g/t Au.
Holes where no significant assays have been
returned have also been reported.
Other Other exploration data, if meaningful and No other significant exploration work has been
substantive material, should be reported including (but not done by Artemis or Western Metals Pty Ltd to
exploration data limited to): geological observations; geophysical date.
survey results; geochemical survey results; bulk
samples – size and method of treatment;
metallurgical test results; bulk density,
groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
Further work The nature and scale of planned further work Subject to completion of the proposed
(eg tests for lateral extensions, depth acquisition, Artemis will plan to undertake initial
extensions or large-scale step-out drilling). review of all existing data for the project and
Diagrams clearly highlighting the areas of
possible extensions, including the main
geological interpretations and future drilling		 define a work program to assess the exploration
potential and design additional drilling to confirm
and expand the existing resource.
areas, provided this information is not The resource is open at depth, and also
commercially sensitive. between the respective mineralisation zones.
Diagrams will be provided once Artemis has
completed its reviews and planning.

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1 also applyto this section.) (Criteria listed in section 1 also applyto this section.) (Criteria listed in section 1 also applyto this section.)
Criteria JORC Code explanation Commentary
Database Measures taken to ensure that data has not been An Access 2007 database and Excel files were
integrity corrupted by, for example, transcription or keying supplied to Geostat Services for use in the
errors, between its initial collection and its use for 2009 resource estimate.
Mineral Resource estimation purposes. Data validaton steps included, but were not
Data validation procedures used. limited to the following:
-
Validation through database

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Criteria JORC Code explanation JORC Code explanation Commentary Commentary
constraints eg overlapping/missing
intervals, intervals exceeding
maximum depth, missing assays.
-
Validation through 3D visualisation in
3D software to check for any obvious
collar, downhole survey, or assay
import errors.
Limited random checks were conducted
between reported assays in annual reports
with those supplied to Geostat.
Site visits Comment on any site visits undertaken by the Geostat did not undertake a site visit, as the
Competent Person and the outcome of those visits. original intention of the resource estimate was
If no site visits have been undertaken indicate why
this is the case.		 for a private company and not for public
release.
Geological Confidence in (or conversely, the uncertainty of ) The confidence in the geological interpretation
interpretation the geological interpretation of the mineral deposit. is considered to be relatively good.
Nature of the data used and of any assumptions Detailed geological logging and surface
made. mapping allow extrapolations of mineralisation
The effect, if any, of alternative interpretations on intersections from section to section.
Mineral Resource estimation. The Mineral Resource is relatively robust and
The use of geology in guiding and controlling
Mineral Resource estimation.		 well-defined from existing drillholes, and as
such, alternative interpretations will result in
similar tonnage and grade.
The factors affecting continuity both of grade and
geology.		 Geological boundaries generally correspond
well with the spatial locations of the
mineralisation.
Quartz vein zones associated with schistosity
are interpreted to be the key factors affecting
mineralisation continuity.
Dimensions The extent and variability of the Mineral Resource Four mineralisation zones comprise the
expressed as length (along strike or otherwise), deposit with an overall E-W trend and steep
plan width, and depth below surface to the upper dip of approximately -80° towards grid south.
and lower limits of the Mineral Resource. The combined mineralisation zones extend
over 600m along strike, with maximum down-
dip extent of 110m.
Estimation and The nature and appropriateness of the estimation The Mineral Resource was estimated using
modelling technique(s) applied and key assumptions, ordinary kriging (OK) interpolation in Surpac
techniques including treatment of extreme grade values, mining software.
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.
Four distinct mineralisation zones comprise the
deposit with an overall E-W trend and steep
dip of approximately -80° towards grid south.
16 wireframes were delineated from sectional
outlines to represent all mineralisation within
The availability of check estimates, previous these zones. Each wireframe was treated as a
estimates and/or mine production records and separate interpolation domain, with
whether the Mineral Resource estimate takes interpolation of grades limited to blocks within
appropriate account of such data. each domain (wireframe).
The assumptions made regarding recovery of by- A top-cut of either 10 or 20 g/t Au was applied
products. to selected lodes where the coefficient of
Estimation of deleterious elements or other non-
grade variables of economic significance (eg		 variation was high and/or there was a large
variance present.
sulphur for acid mine drainage characterisation). A minimum of 4 composites and a maximum of

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Criteria JORC Code explanation JORC Code explanation Commentary Commentary
In the case of block model interpolation, the block 25 composites were used in interpolation of
size in relation to the average sample spacing and grades into blocks.
the search employed. A block model of parent cell size 4m (N) x
Any assumptions behind modelling of selective 12.5m (E) x 5m (RL) sub-celled to 1m x 6.25m
mining units. x 2.5m was used for resource estimation.
Any assumptions about correlation between Search ellipses for initial interpolation of
variables. grades comprised 50m x 25m x 10m. A
Description of how the geological interpretation
was used to control the resource estimates.		 second subsequent interpolation pass was
employed with expanded search ellipses in
order to fill blocks in areas of sparse drill
Discussion of basis for using or not using grade density within the lodes.
cutting or capping. 2 earlier non-JORC compliant resource
The process of validation, the checking process
used, the comparison of model data to drill hole
data, and use of reconciliation data if available.		 estimates were available for comparison, albeit
with smaller datasets and were consistent
given the drilling at the time in comparison with
the current Geostat estimate.
No assumptions have been made regarding
recovery of by-products.
No estimation of any deleterious elements has
been made.
A combination of assays and lithology were
used to define the wireframe envelopes, with a
cut-off of approximately 0.5 g/t Au to separate
mineralisation from waste.
The resource estimate was validated by visual
validations on screen, global statistical
comparisons of input composite grades and
block grades, and local grade/depth graphical
relationships.
Moisture Whether the tonnages are estimated on a dry basis
Tonnages are estimated on a dry basis.
or with natural moisture, and the method of
determination of the moisture content.
Cut-off The basis of the adopted cut-off grade(s) or quality A nominal cut-off of 1.0g/t Au corresponds with
parameters parameters applied. the visual mineralisation as determined by
quartz veining within schistosity and effectively
maps the mineralised zones. This cut-off was
also chosen to reflect reasonable prospect for
economic extraction at the appropriate grade
population.
Mining factors Assumptions made regarding possible mining The mining scenario of the deposit as shown
or assumptions methods, minimum mining dimensions and internal to be economically viable would likely be a
(or, if applicable, external) mining dilution. It is small open pit. Geostat has not fully assessed
always necessary as part of the process of the potential mining parameters. Further
determining reasonable prospects for eventual studies are planned to address possible
economic extraction to consider potential mining mining scenarios given current economic
methods, but the assumptions made regarding factors.
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.
Metallurgical The basis for assumptions or predictions regarding Geostat is not aware of specific metallurgical
factors or metallurgical amenability. It is always necessary as testwork to date at Weerianna.
assumptions part of the process of determining reasonable
prospects for eventual economic extraction to		 It is thought that simple CIL/CIP gold recovery

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Criteria JORC Code explanation JORC Code explanation Commentary Commentary
consider potential metallurgical methods, but the methods may be appropriate but is yet to be
assumptions regarding metallurgical treatment confirmed.
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.
Environmental Assumptions made regarding possible waste and No assumptions at this stage in regards to
factors or process residue disposal options. It is always environmental factors or assumptions have
assumptions necessary as part of the process of determining been made.
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.
Bulk density Whether assumed or determined. If assumed, the
basis for the assumptions. If determined, the		 An assumed density of 2.2t/m3(oxide), 2.6t/m3
(transitional) and 2.8t/m3(primary) was used to
method used, whether wet or dry, the frequency of estimate resource block tonnage for all lodes.
the measurements, the nature, size and These are considered to be in line with
representativeness of the samples. regional estimates.
The bulk density for bulk material must have been No bulk density measurements have been
measured by methods that adequately account for conducted to date. This is planned as a priority
void spaces (vugs, porosity, etc), moisture and to validate current assumed densities.
differences between rock and alteration zones
within the deposit.		 A digital terrain model (DTM) has been used to
discriminate between the oxide, transitional
Discuss assumptions for bulk density estimates and primary boundaries and is based on
used in the evaluation process of the different geological logging of the drill holes.
materials.
Classification The basis for the classification of the Mineral Mineral Resources have been classified in the
Resources into varying confidence categories. Inferred category in accordance with the JORC
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		 Code 2012 guidelines. Classification of the
resource involved several criteria, including
drillhole spacing, sampling density, sampling
locations, lode geometry, QAQC, bulk density
and confidence in grade continuity.
data). Lodes were classified as Inferred on the basis
Whether the result appropriately reflects the
Competent Person’s view of the deposit.		 of the above criteria and this is considered
appropriate given the existing data.
The resource estimate and classification result
reflects the view of the Competent Person.
Audits or The results of any audits or reviews of Mineral No audits or reviews of the Geostat resource
reviews Resource estimates. have been conducted to date. Artemis plans to
conduct a full review of the Mineral Resource.
Discussion of Where appropriate a statement of the relative The relative accuracy of the Mineral Resource
relative accuracy and confidence level in the Mineral is reflected in the classification of the Mineral
accuracy/ Resource estimate using an approach or Resource in the Inferred category as per the
confidence procedure deemed appropriate by the Competent guidelines of the 2012 JORC Code.
Person. For example, the application of statistical
orgeostatisticalprocedures toquantify the relative		 Relative accuracy and confidence has been

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Criteria JORC Code explanation JORC Code explanation Commentary Commentary
accuracy of the resource within stated confidence assessed through validation of the model as
limits, or, if such an approach is not deemed outlined above.
appropriate, a qualitative discussion of the factors
that could affect the relative accuracy and
confidence of the estimate.		 The Mineral Resource statement reflects the
assumed accuracy and confidence as a global
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
Details of historical production and the exact
location of extraction are not available and
hence are not appropriate to compare to this
most recent resource estimate.
procedures used.
These statements of relative accuracy and
confidence of the estimate should be compared
with production data, where available.

JORC Code, 2012 Edition – Table 2: Carlow Castle

Section 1 Sampling Techniques and Data

Section 1 Sampling Techniques and Data Section 1 Sampling Techniques and Data Section 1 Sampling Techniques and Data
(Criteriainthis sectionapply to allsucceeding sections.)
Criteria JORC Code explanation Commentary
Sampling Nature and quality of sampling (eg cut channels, The only samples used in the resource
techniques random chips, or specific specialised industry estimate are splits of chips collected during
standard measurement tools appropriate to the Reverse Circulation (RC) drilling and split
minerals under investigation, such as down hole diamond core.
gamma sondes, or handheld XRF instruments,
etc). These examples should not be taken as
limiting the broad meaning of sampling.		 No records available on actual splitting and
sampling or QA/QC procedures followed.
Include reference to measures taken to ensure
sample representivity and the appropriate
calibration of any measurement tools or systems
used.		 All drill holes were sampled the whole length of
the holes. The RC samples were taken at
fixed 1m intervals however the diamond core
sample intervals appear to have been
governed by logged lithologies.
Aspects of the determination of mineralisation that
are Material to the Public Report.		 No details are available on the assay methods
used for the diamond drill core however the
In cases where ‘industry standard’ work has been RC drill samples were analysed by Genalysis
done this would be relatively simple (eg ‘reverse Labs using the B/AAS method (Aqua Regia
circulation drilling was used to obtain 1 m samples digest (10g charge)/Atomic Absorption
from which 3 kg was pulverised to produce a 30 g Spectroscopy finish).
charge for fire assay’). In other cases more
explanation may be required, such as where there
is coarse gold that has inherent sampling
problems. Unusual commodities or mineralisation
types (eg submarine nodules) may warrant
disclosure of detailed information.
Drilling Drill type (eg core, reverse circulation, open-hole All the drilling used in the resource modelling
techniques hammer, rotary air blast, auger, Bangka, sonic, was RC drilling and diamond drilling. No
etc) and details (eg core diameter, triple or records available describing the drilling
standard tube, depth of diamond tails, face- procedures followed.
sampling bit or other type, whether core is oriented
and if so, by what method, etc).
Drill sample Method of recording and assessing core and chip No records are available describing the sample
recovery sample recoveries and results assessed. qualities and recoveries.
Measures taken to maximise sample recovery and
ensure representative nature of the samples.

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Criteria JORC Code explanation JORC Code explanation Commentary Commentary
Whether a relationship exists between sample
recovery and grade and whether sample bias may
have occurred due to preferential loss/gain of
fine/coarse material.
Logging Whether core and chip samples have been No geological logs available for drilling
geologically and geotechnically logged to a level of samples. The mineralisation is however
detail to support appropriate Mineral Resource controlled by shears easily recognised by
estimation, mining studies and metallurgical assay results.
studies.
Whether logging is qualitative or quantitative in
nature. Core (or costean, channel, etc)
photography.
The total length and percentage of the relevant
intersections logged.
Sub-sampling If core, whether cut or sawn and whether quarter, No details available on sampling methods
techniques and half or all core taken. used.
sample
preparation		 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.
Quality of The nature, quality and appropriateness of the Copies of “original” laboratory assay results as
assay data and assaying and laboratory procedures used and spread sheets are only available for RC
laboratory tests whether the technique is considered partial or total. drilling. These records indicate that normal
For geophysical tools, spectrometers, handheld
XRF instruments, etc, the parameters used in
determining the analysis including instrument make
and model, reading times, calibrations factors		 laboratory QA/QC procedures were followed
with regular insertion of standards and blanks
and duplicates. Repeatability was within
expected limits.
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.
Verification of The verification of significant intersections by either
No independent verification of the data was
sampling and independent or alternative company personnel. made by AM&A.
assaying The use of twinned holes. No twinned holes have been drilled to check
Documentation of primary data, data entry quality of original drilling.
procedures, data verification, data storage No documentation of data collection, data
(physical and electronic) protocols. entry, data verification procedures and data
Discuss any adjustment to assay data. storage protocols available.
Location of Accuracy andquality of surveys used to locate drill Norecords available describing themethod(s)

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Criteria JORC Code explanation JORC Code explanation Commentary Commentary
data points holes (collar and down-hole surveys), trenches, used to survey drill hole collars. The accuracy
mine workings and other locations used in Mineral of drill hole collar surveys cannot be verified.
Resource estimation.
Specification of the grid system used.
Quality and adequacy of topographic control.
Data spacing Data spacing for reporting of Exploration Results. AM&AA believe that the spacing of the drilling
and distribution
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		 along the shears at Carlow Castle South, on
sections at approximately 50m spacing, is
sufficient for an Inferred resource estimate
only.
procedure(s) and classifications applied. Since the bulk of the sampling used in the
Whether sample compositing has been applied. resource estimates, the RC drilling, is sampled
at fixed 1m intervals there was no sample
compositing.
Orientation of Whether the orientation of sampling achieves The intersection angle of the drilling with
data in relation unbiased sampling of possible structures and the respect to the mineralisation was variable, but
to geological extent to which this is known, considering the generally at approximately 50-70 degrees,
structure deposit type. making most drill intersections longer than the
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.		 true width of the mineralisation. The resource
modelling software uses the data in 3D and so
compensates for the wider apparent
thicknesses.
Sample The measures taken to ensure sample security. No records are available describing the
security procedures followed to ensure sample security
so tampering is possible.
Audits or The results of any audits or reviews of sampling There have been no audits or reviews of the
reviews techniques and data. sampling techniques or data.

Section 2 Reporting of Exploration Results

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

Criteria
JORC Code explanation		 Commentary Commentary Commentary Commentary Commentary Commentary 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 resource lies entirely within 47/1797-1 which is
registered with Legend Mining Limited and is due to
expire on 6/5/2018 after being extended from 6/5/2013.
Artemis Resources Ltd, through its wholly owned
subsidiary KML No. 2 Pty Ltd, purchased the tenement
from Legend Mining Ltd on the 12th June 2012. At the
time of this report ownership of licence 47/1797-I was in
the process of being transferred to Artemis Mining Ltd
through the Western Australian Department of Mines
and Petroleum. See body of report for comments on
plaint action.
Exploration
done by other
parties

Acknowledgment and appraisal of
exploration by other parties.
The RC drilling which makes up most of the sampling
data used for the resource estimate was carried out by
Legend Mining Limited
Geology

Deposit type, geological setting and style
of mineralisation.
The gold/copper mineralisation is structurally controlled
by faulting in basalts and may be related to nearby
dolerite intrusion
Drill hole
Information

A summary of all information material to
the understanding of the exploration		 Series Type Company Year
Drilled		 No.
Holes		 Total
**Depth **
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Criteria
JORC Code explanation		 Commentary Commentary Commentary Commentary Commentary Commentary
results including a tabulation of the
following information for all Material drill
holes:
o easting and northing of the drill hole
collar
o elevation or RL (Reduced Level –
elevation above sea level in metres)
of the drill hole collar
o dip and azimuth of the hole
o down hole length and interception
depth
o hole length.

If the exclusion of this information is
justified on the basis that the information
is not Material and this exclusion does not
detract from the understanding of the
report, the Competent Person should
clearly explain why this is the case.		 CC RC Legend 1995-2000 64 4,182.00
CT ? ? ? 5 305.00
DDH Diamond Consolidated
Goldfields		 1969 4 429.50
PDH Rotary
Percussion		 Amax 1972 12 255.50
TOTAL 85 5,172.00
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.
All intersections quoted in text are length weighted
averages and all resource estimates are tonnage
weighted averages

All resource grades quoted are for gold and copper
individually. Au ppm + Cu% was used to determine
modelling limits since Au ppm has an approximate
equal contained metal value as Cu%.
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 resource modelling was carried out in 3D and all
apparent widths accounted for in the estimation method.
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.
Drill hole collar plan and representative cross section of
the deposit and mineralisation are included in the body
of this report.
Balanced
reporting

Where comprehensive reporting of all
Exploration Results is not practicable,
The composite grades used in all the drill holes in the
resource model are as follows:

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Criteria JORC Code explanation
Commentary
representative reporting of both low and
high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
Hole ID
Stratigraphy
From
To
Au g/t
Cu ppm
CC42
OXIDE
13
31
0.36
3,722
CC42
SULPHIDE
31
32
0.42
1,750
CC42
SULPHIDE
47
63
3.95
8,880
CC43
OXIDE
21
29
0.79
7,148
CC43
SULPHIDE
29
68
0.52
7,073
CC43
SULPHIDE
77
93
3.60
5,251
CC44
OXIDE
3
28
0.96
5,859
CC44
SULPHIDE
37
50
2.01
5,290
CC45
SULPHIDE
62
73
0.57
3,464
CC45
SULPHIDE
80
90
2.40
6,506
CC46
SULPHIDE
46
60
0.71
5,216
CC46
SULPHIDE
69
74
0.92
6,134
CC47
OXIDE
6
12
0.36
3,108
CC47
OXIDE
16
21
1.66
4,232
CC48
SULPHIDE
37
38
0.70
1,388
CC49
SULPHIDE
70
81
0.87
2,494
CC50
SULPHIDE
41
51
1.11
5,681
CC51
OXIDE
20
30
0.69
4,252
CC51
SULPHIDE
30
40
0.88
3,182
CC51
SULPHIDE
43
62
2.35
7,229
CC52
OXIDE
3
17
9.39
12,226
CC56
OXIDE
26
30
0.40
1,586
CC56
SULPHIDE
30
38
0.67
4,325
CC56
SULPHIDE
50
57
0.89
8,606
CC56A
SULPHIDE
54
68
0.79
6,548
CC57
SULPHIDE
63
65
0.63
4,687
CC57
SULPHIDE
107
115
0.68
4,281
CC59
SULPHIDE
67
70
0.29
2,639
CC60
SULPHIDE
44
57
0.06
831
CC60
SULPHIDE
58
76
0.96
2,707
CC61
SULPHIDE
81
90
0.15
851

The assays for highest grade hole, CC52, in the oxide zone are
as follows:
Hole ID
Stratigraphy
From
To
Au g/t
Cu ppm
CC52
OXIDE
3
4
2.40
4,296
CC52
OXIDE
4
5
7.33
4,515
CC52
OXIDE
5
6
7.23
15,900
CC52
OXIDE
6
7
28.62
33,600
CC52
OXIDE
7
8
15.55
23,100
CC52
OXIDE
8
9
0.38
918
CC52
OXIDE
9
10
4.41
3,923
CC52
OXIDE
10
11
29.41
12,400
CC52
OXIDE
11
12
3.10
5,921
CC52
OXIDE
12
13
1.84
4,426
CC52
OXIDE
13
14
9.35
48,800
CC52
OXIDE
14
15
3.76
5,716
CC52
OXIDE
15
16
17.01
3,537
CC52
OXIDE
16
17
1.05
4,116
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.

No other exploration data other than local geology maps
were considered in the resource estimate.
Further work

The nature and scale of planned further
work (eg tests for lateral extensions or
depth extensions or large-scale step-out

Further detailed mapping, trenching, geochemical
sampling and infill drilling was recommended, especially
to test potential for highgrademineralisationat the

Criteria JORC Code explanation

Hole ID Stratigraphy From To Au g/t Cu ppm
CC52 OXIDE 3
4		 2.40 4,296
CC52 OXIDE 4
5		 7.33 4,515
CC52 OXIDE 5
6		 7.23 15,900
CC52 OXIDE 6
7		 28.62 33,600
CC52 OXIDE 7
8		 15.55 23,100
CC52 OXIDE 8
9		 0.38 918
CC52 OXIDE 9
10		 4.41 3,923
CC52 OXIDE 10
11		 29.41 12,400
CC52 OXIDE 11
12		 3.10 5,921
CC52 OXIDE 12
13		 1.84 4,426
CC52 OXIDE 13
14		 9.35 48,800
CC52 OXIDE 14
15		 3.76 5,716
CC52 OXIDE 15
16		 17.01 3,537
CC52 OXIDE 16
17		 1.05 4,116
Other Other exploration data, if meaningful and No other exploration data other than local geology maps
substantive material, should be reported including were considered in the resource estimate.
exploration (but not limited to): geological
data observations; geophysical survey results;
geochemical survey results; bulk samples
– size and method of treatment;
metallurgical test results; bulk density,
groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
Further work The nature and scale of planned further Further detailed mapping, trenching, geochemical
work (eg tests for lateral extensions or sampling and infill drilling was recommended, especially
depth extensions or large-scale step-out to test potential for highgrademineralisation at the

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Criteria JORC Code explanation
Commentary		 JORC Code explanation
Commentary		 JORC Code explanation
Commentary		 JORC Code explanation
Commentary
drilling).
intersection of two major shear trends (EW with NS).
Diagrams clearly highlighting the areas of
possible extensions, including the main
geological interpretations and future
drilling areas, provided this information is
not commercially sensitive.
Section 3 Estimation and Reporting of Mineral Resources
(Criterialistedinsection 1, andwhererelevantinsection 2, also apply to this section.)
Criteria JORC Code explanation Commentary
Database Measures taken to ensure that data has not been Data used as received but checked for Hole ID
integrity corrupted by, for example, transcription or keying and sample interval errors by MineMap ©
errors, between its initial collection and its use for software. Some RC sample assays in
Mineral Resource estimation purposes. database were checked against laboratory
Data validation procedures used. spread sheets and no errors were found.
Site visits Comment on any site visits undertaken by the No representative from AM&A has visited the
Competent Person and the outcome of those visits. site. It was not considered necessary for an
If no site visits have been undertaken indicate why
this is the case.		 Inferred resource estimate considering that the
deposit modelled has a thin Quaternary soil
cover making it impossible to view fresh
outcrop.
Geological Confidence in (or conversely, the uncertainty of ) The mineralisation is controlled by shears
interpretation the geological interpretation of the mineral deposit. dipping steeply to the north with some higher
Nature of the data used and of any assumptions
made.		 grade mineralisation may be located at the
intersection of the main EW structures with
mineralised NS shears. The mineralisation
The effect, if any, of alternative interpretations on
Mineral Resource estimation.		 cannot be mapped at the surface due to soil
cover however can be confidently interpreted
from drilling data. Some supergene effects
The use of geology in guiding and controlling may have remobilised and possibly enriched
Mineral Resource estimation. some of the mineralisation in the upper
The factors affecting continuity both of grade and oxidised zone.
geology.
Dimensions The extent and variability of the Mineral Resource The mineralisation is not properly closed off
expressed as length (along strike or otherwise), along strike or down dip.
plan width, and depth below surface to the upper
and lower limits of the Mineral Resource.
Estimation and The nature and appropriateness of the estimation The resource modelling was done with
modelling technique(s) applied and key assumptions, MineMap © software by interpolating grades
techniques including treatment of extreme grade values, into a digital block model using an Inverse
domaining, interpolation parameters and maximum Distance Cubed (ID3) algorithm confined by
distance of extrapolation from data points. If a wire framing of the >0.5 Au ppm + Cu%
computer assisted estimation method was chosen mineralised zones with 50m search radii along
include a description of computer software and and across strike and 20m up and down dip.
parameters used. AM&A considers that these modelling
The availability of check estimates, previous parameters are appropriate for an Inferred
estimates and/or mine production records and resource of the type and style of mineralisation
whether the Mineral Resource estimate takes being modelled.
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

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Criteria JORC Code explanation JORC Code explanation Commentary Commentary
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.
Moisture Whether the tonnages are estimated on a dry basis
All tonnes and grades are on a dry basis.
or with natural moisture, and the method of
determination of the moisture content.
Cut-off The basis of the adopted cut-off grade(s) or quality The resource modelling was confined by wire
parameters parameters applied. framing of the >0.5 Au ppm + Cu% mineralised
zones.
Au ppm + Cu% was used to determine
modelling limits since Au ppm has an
approximate equal contained metal value as
Cu%.
Mining factors Assumptions made regarding possible mining No mining factors were considered for the
or assumptions methods, minimum mining dimensions and internal resource estimate although it was assumed
(or, if applicable, external) mining dilution. It is that it is most likely that if the deposit is
always necessary as part of the process of eventually mined it will be mined using the
determining reasonable prospects for eventual open pit mining method.
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.
Metallurgical The basis for assumptions or predictions regarding
Only basic gravity and floatation/cyanidation
factors or metallurgical amenability. It is always necessary as testing was done on representative samples
assumptions part of the process of determining reasonable collected from the mineralised zone. This
prospects for eventual economic extraction to testing showed that gravity and cyanidation will
consider potential metallurgical methods, but the recover most of the contained gold.
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.
Environmen-tal
Assumptions made regarding possible waste and No environmental factors were considered
factors or process residue disposal options. It is always however the tenement has sufficient suitable
assumptions necessary as part of the process of determining area to accommodate a small mining and
reasonable prospects for eventual economic processing operation including provision for
extraction to consider the potential environmental waste disposal.
impacts of the mining andprocessing operation.

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Criteria JORC Code explanation JORC Code explanation Commentary Commentary
While at this stage the determination of potential There are no obvious especially
environmental impacts, particularly for a environmentally sensitive areas in the vicinity
greenfields project, may not always be well of the deposit although the usual impact
advanced, the status of early consideration of studies and government environmental laws
these potential environmental impacts should be and regulations will need to be complied with.
reported. Where these aspects have not been
considered this should be reported with an
explanation of the environmental assumptions
made.
Bulk density Whether assumed or determined. If assumed, the An bulk density of 2.0 was used in the
basis for the assumptions. If determined, the assumed oxide zone and 2.6 in the primary
method used, whether wet or dry, the frequency of zone. These values are typical, if slightly
the measurements, the nature, size and conservative, for the rock types found at
representativeness of the samples. Carlow Castle South. Further test work is
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		 essential on representative samples of the
rock types found at Carlow Castle South
before any further resource modelling is
carried out
within the deposit.
Discuss assumptions for bulk density estimates
used in the evaluation process of the different
materials.
Classification The basis for the classification of the Mineral The resource was classified by AM&A as
Resources into varying confidence categories. Inferred based on the spacing of the drilling
Whether appropriate account has been taken of all and quality of the data used in the estimation.
relevant factors (ie relative confidence in AM&A believes that this classification to be
tonnage/grade estimations, reliability of input data, appropriate.
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 The results of any audits or reviews of Mineral No audits or reviews of the Mineral Resource
reviews Resource estimates. Estimates have been made.
Discussion of Where appropriate a statement of the relative The drill hole spacing is too wide to provide
relative accuracy and confidence level in the Mineral sufficient confidence in the resource estimate
accuracy/ Resource estimate using an approach or for a higher level resource category. The
confidence procedure deemed appropriate by the Competent quality of the data is considered to be
Person. For example, the application of statistical reasonable for a resource estimate but
or geostatistical procedures to quantify the relative unfortunately due to the lack of adequate
accuracy of the resource within stated confidence reporting the QA/QC of this data cannot be
limits, or, if such an approach is not deemed confirmed.
appropriate, a qualitative discussion of the factors
that could affect the relative accuracy and		 All quoted estimates are global for the deposit.
confidence of the estimate. No mine production has been recorded at the
The statement should specify whether it relates to deposit.
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.

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