BRIGHTSTAR RESOURCES LIMITED — Capital/Financing Update 2014

Jun 4, 2014

S TONE R ESOURCES A USTRALIA L IMITED

ASX
Announcement

5
June
2014

_**Mineral

Resource
Review
of
Brightstar
Project**_

**Western

Australia**

Introduce

Stone
Resources
Australia
Limited
(Stone)
is
pleased
to
announce
the
completion
of
a review
by
CSA
Global
Pty
Ltd
(CSA)
of
its
Mineral
Resource
estimates
(MRE),
specifically the
Alpha,
Ben
Hur
and
Delta
deposits
within
the
Brightstar
Project
in
Western
Australia, located
approximately
40km
North
of
Laverton
in
Western
Australia
as
released
to
the Australian
Stock
Exchange
(ASX)
on
the
23[rd] April
2013
(Figure
1).

==> picture [405 x 341] intentionally omitted <==

Figure
1:
Location
of
the
Brightstar
Project

The
project
area
is
split
into
Southern
and
Northern
tenements,
480km²
and
440km², respectively.
The
Southern
group
of
tenements,
located
approximately
40km
southeast of
Laverton,
consist
of
the
Alpha,
Beta,
and
Gamma
project
areas.

The
Northern
group
of
tenements,
located
approximately
50km
north
of
Laverton include
the
Delta,
Ben
Hur
(formerly
Epsilon)
and
Eta
project
areas
(Figure
2).

==> picture [329 x 401] intentionally omitted <==

----- Start of picture text -----

BEN
HUR
DELTA
ALPHA
----- End of picture text -----

Figure
2:
Tenement
Diagram
for
Alpha,
Ben
Hur
and
Delta
deposits
within
the Brightstar
Project
Area

Geology

The
area
is
located
in
the
north
Laverton
Greenstone
Belt
on
the
southern
extremity
of the
Duketon
Greenstone
Belt
(DGB)
in
the
north-­‐eastern
sector
of
the
Eastern
Goldfields Superterrane
of
the
Yilgarn
Craton.

_Southern

Tenements_

The
geology
of
the
Alpha
Project
is
comprised
of
foliated
basalt
and
mafic
schist.
The upper
tertiary
surface
can
be
up
to
10m
thick.
It
includes
recently
deposited
soil
or hardpan
up
to
4m.
Beneath
the
surface
layer
is
saprolite
which
has
been
described
as soft,
machine-­‐rippable,
indurated
in
places.
Basement
rock
within
the
area
is
comprised of
mafic
volcanic
rocks
with
interleaved
narrow
units
of
ultramafic
rocks,
some
dolerite and
interflow
volcanogenic
sediments.

The
Beta
Project
is
centred
on
the
Burtville
Shear
that
trends
from
near
Sunrise
Dam
to Burtville.
In
the
area
of
Beta
this
shear
is
known
as
the
Mikado
Shear.
The
deposit
occurs along
the
Eastern
Margin
of
the
Laverton
Tectonic
zone,
which
hosts
the
major
gold occurrences
(>
1Moz)
of
Granny
Smith,
Sunrise
Dam,
Keringal,
and
Red
October
(all owned
by
other
companies).
The
dominant
rock
types
include
a
sequence
of
a metamorphosed
ultramafics,
high
magnesian
basalt,
tholeitic
basalts,
dolerite,
gabbros, plus
minor
greywacke
and
siltstone.
Lithological
contacts
are
generally
intensely sheared
and
altered.

The
Gamma
Project
is
situated
to
the
east
of
the
Laverton
tectonic
lineament
and
is
on the
eastern
limb
of
the
Erlistoun
Syncline.
The
geology
is
one
of
a
north
east
trending greenstone
belt
of
mafic/ultramafic
volcanic
rocks
intruded
by
stocks
and
dykes
of granite
and
porphyry.
Gold
mineralization
is
associated
with
quartz
veins
and
stringer veins
in
shear
zones
that
trend
north
easterly,
parallel
to
the
strike
of
the
rocks.

_Northern

Tenements_

The
Delta
Project
occurs
within
the
Duketon
Greenstone
Belt,
formerly
known
as
Cork Tree
Well,
and
lies
along
the
western
limb
of
the
Erlistoun
synclinal
structure.
The sequence
includes
mafic
volcanic
lavas,
tuffs,
and
tuffaceous
sediments
with
minor interflow
graphitic
shales
and
banded
iron
formation.
Mineralization
at
the
Cork
Tree Well
Mine
was
hosted
within
interflow
cherts
and
sediments
which
contained
pervasive pyrite,
pyrrhotite
and
magnetite
mineralization.
The
sediments
which
host
the
gold mineralization
have
been
intruded
by
concordant
porphyry
sills
which
extend
the
length of
the
mineralized
zone.

The
Ben
Hur
Project
(formerly
Epsilon)
is
situated
in
a
narrow
section
of
the
Duketon Greenstone
Belt
which
strikes
north
from
Laverton
to
Duketon.
The
greenstone
belt
is approximately
100km
long
and
10km
wide
in
the
south
broadening
to
over
40km
wide in
the
north.
The
local
stratigraphy
consists
of
mafic
and
minor
ultramafic
units
within
a sequence
of
sheared
metasediments
and
felsic
volcaniclastic
rocks.
Major
strike
shearing is
present
running
the
length
of
the
tenement
with
the
gold
mineralization
being associated
with
the
shearing
and
localised
in
a
differentiated
doleritic
sill
in
the
central part
of
the
area.

**Exploration

and
Drilling**

The
Brightstar
Project
area
has
a
relatively
long
exploration
history.
The
exploration methods
include
geological
mapping,
geophysical
surveying,
geochemical
sampling, auger
sampling,
rock
chip
sampling
and
drilling.
A
variety
of
drilling
methods
were utilized
to
explore
the
Brightstar
area.
RAB
and
AC
drilling
were
the
major
drilling methods.
RC
drilling
was
carried
out
on
lesser
extent
and
only
a
few
diamond
drillholes were
drilled
in
the
area.

At
the
commencement
of
drilling
in
2011,
a
new
QAQC
programme
was
implemented
to ensure
that
the
accuracy
and
repeatability
of
sample
results
being
reported
by
Bureau Veritas
were
of
a
standard
to
be
used
in
feasibility-­‐style
resource
estimation.

Since
2011,
Stone
has
conducted
RC
drilling
with
two
rigs
for
an
initial
program
of approximately
35,000m
on
its
three
largest
North
Laverton
Resources
–
Alpha,
Ben
Hur and
Delta.
The
purpose
of
the
drilling
was
to
explore
the
general
structure
of
the
deposit, establish
the
contours
of
altered
rocks
and
mineralisation
associated
with
them,
and also
to
produce
preliminary
resource
estimates
for
the
deposits.

Stone
has
completed
the
following:

• 46
  RC
  drill
  holes
  for
  5,053m
  in
  Alpha
  area
  in
  2012
  -­‐
  2013,

• 191
  RC
  drill
  holes
  for
  21,269m
  in
  Ben
  Hur
  area
  in
  2012
  and

• 75
  RC
  drill
  holes
  for
  12,033m
  in
  Delta
  area
  in
  2012
  (Figure
  ).

==> picture [396 x 283] intentionally omitted <==

Figure
3:
Drilling
RC
Holes
at
Delta
in
2012

Available
information,
including
field
checks,
indicate
that
the
Brightstar
Project
area was
surveyed
during
the
2011
-­‐
2013
drilling
programmes
with
all
drill
collars
being
set into
a
surveyed
grid
and
levels
recorded.

The
drilling
rig
cyclone
was
regularly
cleaned
out
and
flushed
at
rod
changes
in
RC drilling
program.
This
was
to
prevent
any
smearing
of
grade
between
1m
sample intervals.

Samples
were
routinely
collected
in
plastic
bags
on
a
single
meter
basis
but composites
of
4m
were
initially
collected
through
spear
sampling
of
the
bags
and forwarded
to
the
laboratory
for
assay
in
a
cloth
(calico)
bag.
In
many
cases
the
decision to
collect
single
metre
samples
within
all
mineralized
areas
directly
for
assay
may
have been
made.

Speared
and/or
riffle
split
RC
and
air-­‐core
drill
samples
were
submitted
for
fire
assay. There
were
split
repeats
of
drill
samples
submitted
every
25m
in
RC
and
AC.
In
addition, re-­‐splits
of
anomalous
4m
composites
where

0.3g/t
Au
were
re-­‐sampled/
tube sampled
from
drill
plastic
bags
into
calico
bags
as
1m
sample
repeats.

Internal
laboratory
checks
as
standard
laboratory
repeats
were
conducted.
Placer,
under the
previous
Golden
Cross
JV,
collected
1m
interval
samples
by
riffle
splitting
into
2-­‐3kg sub
samples
for
assay.
Composite
samples
over
a
2
to
4m
interval
were
collected
in some
programs
by
spear
sampling
the
bulk
1m
sample.
Where
composite
results exceeded
0.2g/t
Au
they
were
re
sampled
by
collecting
a
1m
riffle
split
sample.

All
holes
were
logged
using
Stone’s
internal
standard
logging
codes.

**Sampling

and
Analysis**

Samples
were
submitted
with
pre-­‐set
numbering
allowing
for
submission
of
duplicates at
regular
25
sample
intervals.
Duplicate
assays
were
unknown
to
the
laboratories. Sample
standards
or
blanks
were
submitted
in
drilling
by
Stone
and
repeatability
has been
determined
as
being
high
from
the
duplicates
submitted.

Fire
assaying
with
a
40g
charge
was
completed
initially.
Screen
Fire
Assaying
was conducted
on
some
drill
core
samples
at
Kalgoorlie
Assay
Laboratories
and independently
in
Perth
for
intervals
where
high
grade,
interpreted
‘nuggetty’
gold previously
had
been
reported
in
fire
assay
results.
Screen
fire
results
were
generally similar
or
higher
than
the
fire
assay
results.
The
presence
of
visible
gold
in
diamond
drill core
was
the
reason
for
conducting
Screen
Fire
Assaying.

QAQC
processes
were
checked
by
CSA
for
sampling
and
assaying.
The
results
for Standards,
Blanks
and
duplicates
analysis
are
within
the
accuracy
limits
for
these analytical
techniques
and,
on
the
whole,
show
the
quality
of
the
analytical
work
to
be satisfactory.

**Resource

Estimation**

A
total
of
1,395
RC
and
3
diamond
drill
holes
in
Alpha
area,
929
RC
drill
holes
in
Ben
Hur and
908
RC
drill
holes
in
Delta
area
were
used
in
the
resource
modelling.
The exploration
for
the
three
deposits
primarily
was
on
a
20m
by
20m
drilling
pattern, grading
to
a
25m
by
60m
patterns
at
depth.
The
database
used
for
resource
estimation was
reviewed
and
validated
for
obvious
errors
by
SKR
prior
to
commencing
the resource
estimation.

The
mineralisation
constraints
have
been
based
on
sectional
interpretations
generated on
approximate
20m
sections
and
is
based
on
a
0.3g/t
Au
nominal
lower
cut-­‐off
grade. The
cut-­‐off
grade
was
selected
as
it
represented
a
natural
‘geological’
cut-­‐off
that captures
the
anomalous
intercepts.

It
was
also
selected
as
suitable
when
open
cut methods
are
being
targeted
and
recoverable
resource
estimation
is
to
be
considered.

All
samples
were
flagged
according
to
the
mineralised
domains
they
fall
into
based
on the
constructed
wireframes.
The
most
of
samples
are
1m
length.
Compositing
to
1m length
has
no
effect
on
the
variability
of
the
grade
distribution.
For
the
resource estimation,
the
current
model
has
individually
assessed
the
high-­‐grade
outliers.
Top Cuts
were
used
to
treat
the
high-­‐grade
outliers
of
Au
based
on
a
review
of
the
domain histogram,
log
probability
plot.

Variography
and
evaluation
of
suitable
estimation
parameters
based
on
the
final variogram
models
were
undertaken
based
on
1m
composites.
The
variography
indicates that
moderate
levels
of
short
range
variability
exist,
which
is
consistent
with
a
vein
and stockwork
mineralisation
style.

Block
model
was
initially
created
as
separate
geological
block
models
with
varying
sub-­‐ block
resolution
for
mineralisation,
waste,
dump,
weathering
and
mining
boundaries whilst
maintaining
a
majority
(parent
cell)
assigning
approach
for
the
Alpha,
Ben
Hur and
Delta
deposits,
respectively.
A
block
model
was
created
using
5.0mE
×
10.0mN
× 5.0mRL
parent
blocks.
Sub-­‐cells
were
generated
down
to
0.5mE
×
2.0mN
×
0.5mRL
as appropriate
to
honour
wireframe
lodes
and
regolith
interpretations
during
model construction.

Ordinary
Kriging
(OK)
was
used
to
estimate
3D
blocks
for
Au
variables.
Quantitative Kriging
Neighbourhood
Analysis
was
used
to
optimise
parameters
for
the
Kriging
search strategies.

CSA
reviewed
the
modelling
methods,
estimation
criteria,
resource
classification
and
the MRE
results.
CSA
also
conducted
a
site
visit
and
laboratory
inspections.

The
Alpha,
Ben
Hur
and
Delta
Mineral
Resources
have
been
classified
and
reported
in accordance
with
The
Australasian
Code
for
Reporting
of
Mineral
Resources
and
Ore Reserves
(JORC
Code
2012
Version).
Resource
classification
is
based
on
confidence
in the
geological
domaining,
drill
spacing
and
geostatistical
measures.

There
are
historic
open
pits
at
the
Alpha
and
Delta
deposits;
The
Ben
Hur
deposit
is being
considered
by
Stone
as
an
open
pit
operation
in
the
near
future.
CSA
has
not received
open
pit
design
yet.

The
qualitative
assessment
of
sandstone
and
clay
content
of
the
mineralised
zones
has been
built
into
the
model.
Relative
sandstone
and
clay
content
affects
the
processing
of the
ore.
Assumptions
are
based
on
DFS
metallurgical
test
work.

The
review
has
confirmed
that
the
methods
and
results
of
the
MRE
and
the
classification of
Measured,
Indicated
and
Inferred
resources
(Table
1)
were
properly
completed. Together
with
the
supplementary
work
completed
by
CSA,
the
MRE
results
are confirmed
to
be
in
compliance
with
the
2012
edition
of
Australian
Code
for
Reporting
of Exploration
Results,
Mineral
Resources
and
Ore
Reserves
(2012
JORC
Code).

**Table
1:

Brightstar
Project
-­‐
Mineral
Resource
Estimate
Results
for
Alpha,
Ben
Hur
and Delta
Deposits**

	_In-situ_Mineral Resources Grade Tonnage Reported above a Cut-off Grade of 0.5g/t Au	_In-situ_Mineral Resources Grade Tonnage Reported above a Cut-off Grade of 0.5g/t Au	_In-situ_Mineral Resources Grade Tonnage Reported above a Cut-off Grade of 0.5g/t Au	_In-situ_Mineral Resources Grade Tonnage Reported above a Cut-off Grade of 0.5g/t Au
Deposit	Category	Tonnes (kt)	Grade(g/t)	Ounces (koz)
Alpha	Measured	623	1.6	33
	Indicated	374	2.1	25
	Meas+Ind	997	1.8	58
	Inferred(approx.)	455	3.3	48
Ben Hur	Measured	2,434	1.6	125
	Indicated	1,672	1.4	77
	Meas+Ind	4,105	1.5	202
	Inferred(approx.)	1,665	1.6	87
Delta	Measured	1,220	1.9	76
	Indicated	944	1.9	57
	Meas+Ind	2,164	1.9	133
	Inferred(approx.)	1,696	1.9	104

For
further
information,
please
contact:

Yong
Han,
Director,
CEO Wenhua
Shan,
Chief
Geologist

Sheng
Lu,
Deputy
CEO
&
Joint
Company
Secretary

Tony
Lau
Wai
Ming,
Joint
Company
Secretary

Telephone:
0061-­‐8-­‐9277
6008;
Fax:
0061-­‐8-­‐9277
6002 Company
email
address: info@stoneral.com.au

Competent Persons Statement

The information in this report that relates to Mineral Resources is based on information compiled by Dr. Bielin Shi, who is a member of the Australasian Institute of Mining and Metallurgy and of the Australian Institute of Geoscientists. Dr. Shi is an employee of CSA Global Pty. Ltd. Dr. Shi 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 (CP) as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr. Shi consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

==> picture [571 x 271] intentionally omitted <==

ALPHA Resource Drilling

==> picture [571 x 229] intentionally omitted <==

ALPHA Resource Drilling Intersection

==> picture [571 x 359] intentionally omitted <==

BEN HUR Resource Drilling

==> picture [571 x 260] intentionally omitted <==

BEN HUR Resource Drilling Intersection

==> picture [571 x 348] intentionally omitted <==

DELTA Resource Drilling

==> picture [571 x 260] intentionally omitted <==

DELTA Resource Drilling Intersection

ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars
Hole_ID	East	North	RL	Azimuth	Dip	Depth(m)
SAR0001	473272.049	6822531.633	490.505	213.8	-62.7	160
SAR0401	473230.069	6822542.576	490.243	208.6	-53	140
SAR0601	473197.084	6822565.521	490.531	208.1	-58	160
SAR1001	473124.362	6822601.418	490.645	208.3	-56.5	170
SAR1201	473092.26	6822625.176	489.915	209	-57.4	160
SAR1202	473051.303	6822559.509	489.898	211.3	-55.4	80
SAR1401	473028.175	6822598.435	489.919	207.5	-57.6	120
SAR1403	473006.97	6822564.327	489.78	211.3	-60.3	75
SAR1601	472962.954	6822569.177	489.302	209.7	-60.5	70
SAR1801	472960.82	6822641.653	489.894	208	-59	150
SAR1803	472925.14	6822584.547	489.167	209	-59.9	70
SAR20001	470066.619	6824531.677	474.684	235.1	-60.2	120
SAR20002	470135.129	6824574.481	474.624	232.1	-61.5	120
SAR20003	470201.513	6824616.29	473.897	233.7	-58.2	108
SAR20004	470271.269	6824659.332	473.895	235.3	-60.8	120
SAR2601	472817.483	6822716.289	491.334	208.2	-58.5	122
SAR2603	472793.743	6822676.038	488.551	208.6	-59	80
SAR2801	472780.117	6822729.627	488.935	209.3	-59.4	40
SAR3201	472683.276	6822725.848	488.165	208.7	-61.6	140

ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars
Hole_ID	East	North		RL		Azimuth		Dip		Depth(m)
SAR4001	472570.582	6822847.629		487.036		206.7		-58.8		120
SAR5005	472449.898	6822856.315		486.708		216.2		-61.9		120
SAR5801	472297.551	6822926.018		488.936		213.5		-60.7		70
SAR5802	472322.325	6822952.982		487.679		218		-61		100
SAR6002	472285.357	6822972.147		488.128		216		-60.7		70
SAR6003	472321.071	6823011.595		486.404		218.8		-60.9		130
SAR6201	472291.22	6823038.05		485.724		218.5		-61.3		110
SAR6203	472256.328	6823000.164		487.986		218.8		-62.9		70
SAR6401	472257.126	6823060.354		485.259		221.2		-62.3		120
SAR6403	472228.016	6823028.45		486.013		217.8		-60.9		70
SAR6601	472243.937	6823105.429		485.021		218.8		-63.9		135
SAR6801	472214.467	6823131.833		484.307		218.7		-60.1		135
SAR6802	472169.578	6823083.403		484.905		219.6		-59.3		70
BEN HUR Drill Hole Collars
HoleID	East	North	RL		Azimuth		Dip		Depth(m)
DBR0301	437840.2	6884146	478.021		256		-60		127
DBR0302	437864.6	6884152	477.971		256		-60		157
DBR0401	437854.8	6884098	478.391		256		-60		127
DBR0402	437876.8	6884103	478.405		256		-60		151
DBR0403	437807.6	6884087	478.025		256		-60		66
DBR0404	437840.3	6884094	478.178		256		-60		91
DBR0701	437798.1	6884189	477.442		256		-60		114
DBR0801	437884.2	6884055	478.531		256		-60		156
DBR0802	437909.2	6884060	478.74		256		-60		186
DBR11307	437522	6885485	477.195		256		-60		139
DBR11701	437343.6	6885495	475.648		256		-60		96
DBR11702	437367	6885498	475.717		256		-60		132
DBR11705	437461.4	6885519	476.482		256		-60		78
DBR11706	437485.8	6885527	476.747		256		-60		102
DBR1201	437900	6884007	478.861		256		-60		163
DBR1202	437948.2	6884020	478.847		256		-60		190
DBR1203	437878.3	6884000	478.712		256		-60		133
DBR12101	437332.2	6885543	475.361		256		-60		103
DBR12102	437356.8	6885547	475.545		256		-60		24
DBR4406	438053.2	6883631	481.259		256		-60		198
DBR4701	437613.6	6884657	480.273		256		-60		48
DBR4702	437634.1	6884663	480.467		256		-60		78
DBR4703	437658.4	6884669	480.633		256		-60		103
DBR4704	437681.8	6884674	480.838		256		-60		127
DBR4705	437762.3	6884694	481.724		256		-60		103
DBR4706	437786.9	6884700	481.856		256		-60		127
DBR5505	437697.3	6884783	480.767		256		-60		87
DBR5506	437725.5	6884789	481.061		256		-60		102

BEN HUR Drill Hole Collars	BEN HUR Drill Hole Collars	BEN HUR Drill Hole Collars	BEN HUR Drill Hole Collars	BEN HUR Drill Hole Collars	BEN HUR Drill Hole Collars	BEN HUR Drill Hole Collars	BEN HUR Drill Hole Collars	BEN HUR Drill Hole Collars	BEN HUR Drill Hole Collars
HoleID	East	North	RL	Azimuth		Dip		Depth(m)
DBR5901	437606.1	6884812	479.859	256		-60		84
DBR9701	437437.5	6885257	476.789	256		-60		126
DBR9702	437460	6885264	476.761	256		-60		162
DBR9705	437534.5	6885289	477.558	256		-60		78
DBR9706	437572.7	6885291	477.977	256		-60		114
DELTA Drill Hole Collars
Hole_ID	East	North	RL		Azimuth		Dip		Depth(m)
SDR098801	441723.445	6864939.878	470.737		255		-60		138
SDR099601	441714.507	6865019.833	471.088		255		-60		160
SDR099602	441748.632	6865029.808	469.501		255		-60		190
SDR100401	441720.855	6865103.974	469.751		255		-60		204
SDR100402	441757.056	6865114.556	468.637		255		-60		241
SDR101201	441697.951	6865181.058	469.836		255		-60		162
SDR101202	441732.145	6865191.335	468.961		255		-60		186
SDR105201	441624.006	6865574.949	469.482		255		-60		157
SDR106001	441618.105	6865656.598	469.988		255		-60		151
SDR106801	441586.064	6865721.194	469.263		255		-60		169
SDR107601	441616.711	6865821.497	472.728		255		-55		229
SDR112401	441473.356	6866278.142	469.925		255		-60		97
SDR113201	441422.114	6866349.403	469.923		255		-60		79
SDR113202	441464.315	6866360.722	470.221		255		-60		114
SDR113203	441485.825	6866366.218	470.295		255		-60		138
SDR120401	441294.886	6867062.451	470.332		255		-60		130
SDR120801	441307.451	6867106.077	470.484		255		-60		138
SDR121201	441357.09	6867159.882	470.727		255		-60		117
SDR122001	441335.796	6867237.936	470.882		255		-60		174
SDR122002	441377.425	6867250.478	471.137		255		-60		210
SDR122801	441316.142	6867317.097	470.506		255		-60		204
SDR122802	441349.598	6867325.969	470.734		255		-60		240
SDR123601	441269.704	6867387.131	470.604		255		-60		138
SDR123602	441353.009	6867409.726	470.855		255		-60		222
SDR124001	441358.754	6867452.359	470.732		255		-60		192
SDR124401	441357.487	6867493.302	470.925		255		-60		150
SDR125201	441320.187	6867565.683	471.179		255		-60		192
SDR126206	441170.452	6867649.513	470.507		255		-60		120
SDR126801	441120.2	6867677.209	470.341		255		-60		138
SDR126802	441172.721	6867691.376	470.514		255		-60		140
SDR126803	441244.768	6867712.177	470.838		255		-60		32
SDR126804	441316.015	6867730.608	471.099		255		-60		120
SDR127201	441164.525	6867731.842	470.334		255		-60		120
SDR127202	441227.041	6867748.592	470.618		255		-60		120

DELTA Drill Hole Collars	DELTA Drill Hole Collars	DELTA Drill Hole Collars	DELTA Drill Hole Collars	DELTA Drill Hole Collars	DELTA Drill Hole Collars	DELTA Drill Hole Collars	DELTA Drill Hole Collars	DELTA Drill Hole Collars	DELTA Drill Hole Collars	DELTA Drill Hole Collars
Hole_ID	East		North		RL	Azimuth		Dip		Depth(m)
SDR127203	441293.681		6867767.769		470.894	255		-60		126
ALPHA Significant Intersections
Hole_ID		mFrom		mTo			Thickness(m)		Au(g/t)
SAR0001		83		84			1		2.07
SAR0401		111		113			2		2.59
SAR0601		109		110			1		2.00
SAR0601		111		112			1		1.27
SAR0601		117		121			4		11.84
SAR0601		125		128			3		9.79
SAR1001		124		125			1		1.26
SAR1001		157		158			1		4.31
SAR1201		126		127			1		1.02
SAR1201		127		128			1		3.66
SAR1201		129		130			1		1.89
SAR1801		101		103			2		2.12
SAR2002		49		50			1		1.84
SAR2601		106		108			2		2.47
SAR2601		109		110			1		1.58
SAR3003		42		43			1		1.09
SAR3201		39		40			1		1.74
SAR4001		46		48			2		2.58
SAR4001		52		53			1		4.48
SAR4001		54		55			1		1.10
SAR5801		40		41			1		1.21
SAR6203		50		51			1		2.32
SAR6401		84		87			3		3.20
SAR6403		43		44			1		1.67
SAR6601		112		115			3		6.27
SAR20005		88		90			2		1.82
SAR20705		81		82			1		1.80
BEN HUR Significant Intersections
Hole_ID		mFrom		mTo			Thickness(m)		Au(g/t)
DBR0403		37		38			1		12.6
DBR0403		38		39			1		12.8
DBR0404		63		64			1		3.95
DBR0404		70		71			1		17.87
DBR0404		71		72			1		8.67
DBR0701		32		33			1		4.96
DBR0804		46		47			1		3.71
DBR0804		60		61			1		3.24

DBR0804	67	68	1	13.8
DBR0805	78	79	1	5.92
DBR0805	85	86	1	5.63
DBR0805	87	88	1	4.85
DBR10105	66	67	1	5
DBR10105	77	78	1	4.37
DBR10506	76	77	1	6.73
DBR10506	77	78	1	18.2
DBR10506	80	81	1	4.48
DBR10905	55	56	1	3.97
DBR1101	29	30	1	4.54
DBR1105	59	60	1	17
DBR1105	64	65	1	5.29
DBR11301	73	74	1	3.91
DBR11702	131	132	1	4.17
DBR1201	92	93	1	13.13
DBR1201	94	95	1	3.88
DBR1201	121	122	1	3.37

DELTA Significant Intersections	DELTA Significant Intersections	DELTA Significant Intersections	DELTA Significant Intersections	DELTA Significant Intersections
Hole_ID	mFrom	mTo	Thickness(m)	Au(g/t)
SDR100401	169	170	1	1.15
SDR102001	88	89	1	1.7
SDR102001	125	126	1	1.87
SDR102001	126	127	1	2.77
SDR102001	127	128	1	1.69
SDR102002	169	170	1	1.61
SDR102002	171	172	1	3.12
SDR102002	172	173	1	3.57
SDR102002	173	174	1	1.05
SDR102801	119	120	1	1.23
SDR102801	120	121	1	1.07
SDR102801	121	122	1	1.29
SDR102802	153	154	1	1.58
SDR102802	155	156	1	14.2
SDR102802	156	157	1	7.47
SDR102802	157	158	1	3.04
SDR102802	158	159	1	1.14
SDR102802	160	161	1	5.13
SDR102802	161	162	1	1.13
SDR103601	120	121	1	3.34
SDR103601	121	122	1	4.41
SDR103601	122	123	1	1.2

SDR103601	123	124	1	1.01
SDR103601	124	125	1	15.24
SDR103601	125	126	1	8.91
SDR103601	126	127	1	2.81
SDR103601	127	128	1	1.66
SDR103601	130	131	1	1.51
SDR103601	131	132	1	3.54
SDR103601	132	133	1	2.05
SDR103601	133	134	1	16.32
SDR103601	134	135	1	8.11
SDR103601	135	136	1	10.12

**Appendix

JORC
Table
1
Compliance**

Section
1
Sampling
Techniques
and
Data

Criteria	JORC Code explanation	Commentary
Sampling techniques	• Nature and quality of sampling (eg	• The Alpha deposit was drilled
	cut channels, random chips, or	primarily in a nominal 20m by 20m
	specific specialized industry standard	spacing in areas; a total of 1349
	measurement tools appropriate to the	historic RC drill holes, and 46 infill
	minerals under investigation, such as	RC drill holes drilled in 2012.
	down hole gamma sondes, or	• The Ben Hur deposit was drilled
	handheld XRF instruments, etc).	primarily in a nominal 20m by 20m
	These examples should not be taken	and 40m by 20m spacing in areas; a
	as limiting the broad meaning of	total of 929 historic RC drill holes,
	sampling.	and 191 infill RC drill holes drilled
	• Include reference to measures taken	in 2012.
	to ensure sample representatively and	• The Delta deposit was drilled
	the appropriate calibration of any	primarily in a nominal 20m by 20m
	measurement tools or systems used.	and 40m by 20m spacing in areas; a
	• Aspects of the determination of	total of the historic RC drill holes,
	mineralisation that are Material to the	and 75 infill RC drill holes drilled in
	Public Report.	2012.
	• In cases where ‘industry standard’	• The drilling programs in Alpha, Ben
	work has been done this would be	Hur and Delta areas were designed
	relatively simple (eg ‘reverse	to optimallyintersect the
	circulation drilling was used to obtain	mineralised zones.
	1 m samples from which 3 kg was	• Sampling was carried out under
	pulverised to produce a 30 g charge	Stone’s supervision according to its
	for fire assay’). In other cases more	QAQC protocols and procedures.
	explanation may be required, such as	This included the use of field
	where there is coarse gold that has	duplicates, commercially prepared
	inherent sampling problems. Unusual	blanks and certified reference
	commodities or mineralisation types	materials.
	(eg submarine nodules) may warrant	• The orientation of the mineralisation
	disclosure of detailed information.	had been determined by mapping
		and previous diamond and RC
		drilling. This was confirmed in the
		latest drilling campaign.
		• Drill core was split to produce
		samples ranging from 2.5 to 3.5kg in
		weight. In the assay laboratory the
		samples were crushed pulverised
		and subsampled to produce a 50g
		charge for fire assaying with an
		AAS finish. This gave a total
		determination of Au.
Drilling techniques	• Drill type (eg core, reverse circulation,	• The drilling rig cyclone was
	open-hole hammer, rotary air blast,	regularly cleaned out and flushed at
	auger, Bangka, sonic, etc) and details	rod changes in RC drilling program.
	(eg core diameter, triple or standard	This was to prevent any smearing
	tube, depth of diamond tails, face-	of grade between 1m sample
	sampling bit or other type, whether core	intervals.
	is oriented and if so, by what method,
	_etc). _
Drill sample	• Method of recording and assessing core	• A record ofqualitative sample

Criteria	JORC Code explanation	Commentary	Commentary
recovery	and chip sample recoveries and results		recovery and moisture content was
	assessed.		recorded by field assistants under
	• Measures taken to maximise sample		the supervision of the rig geologist.
	recovery and ensure representative	•	Weight checks were done
	nature of the samples.		periodically at the rig. Overall
	• Whether a relationship exists between		sample weight and quality was
	sample recovery and grade and whether		good. The rig geologist closely
	sample bias may have occurred due to		monitored the rig to ensure the
	preferential loss/gain of fine/coarse		entire sample was collected in both
	material.		bulk plastic & calico bag prior to
			removal from the cyclone splitter,
			and action was taken if sample
			weights showed marked variations.
Logging	• Whether core and chip samples have	•	All RC chips were logged at the
	been geologically and geotechnically		drill-rig-site for main/subordinate
	logged to a level of detail to support		lithology, colour, grainsize,
	appropriate Mineral Resource		regolith, alteration, oxidation and
	estimation, mining studies and		mineralisation.
	metallurgical studies.	•	Geological logging is both
	• Whether logging is qualitative or		qualitative and quantitative in
	quantitative in nature. Core (or		nature. The lithology, colour, grain
	costean, channel, etc) photography.		size, regolith, alteration, oxidation,
	• The total length and percentage of the		veining and mineralisation were
	relevant intersections logged.		recorded. Sulphide and vein content
			were logged as a percentage of the
			interval. Representative chips were
			collected in chip trays for each 4m
			interval and retained on site (no
			photographs).
		•	All of the drilling was geologically
			logged.
Sub-sampling	• If core, whether cut or sawn and	•	The RC samples were sub-sampled
techniques and	whether quarter, half or all core taken.		using a rig mounted, self-levelling
sample preparation	• If non-core, whether riffled, tube		cone splitter. The vast majority of
	sampled, rotary split, etc and whether		the samples were dry with rare
	sampled wet or dry.		moist and wet samples recorded on
	• For all sample types, the nature, quality		the sampling sheet.
	and appropriateness of the sample	•	The sample preparation followed
	preparation technique.		industry best practice in sample
	• Quality control procedures adopted for		preparation involving oven drying
	all sub-sampling stages to maximise		and pulverisation of the entire
	representivity of samples.		~3kg sub-sample using LM5
	• Measures taken to ensure that the		grinding mills to a grind size of
	sampling is representative of the in situ		85% passing less than 75 microns.
	material collected, including for	•	Field duplicates were collected and
	instance results for field		assessed to determine cone splitter
	duplicate/second-half sampling.		repeatability; results showed
	• Whether sample sizes are appropriate		reasonable repeatability.
	to the grain size of the material being	•	Commercially prepared and
	sampled.		certified reference materials
			(standards and blanks) along with
			field duplicates were inserted at a
			ratio of 1:20 into the sample string.
			The QAQC results from this
			program were considered to be
			acceptable.
		•	Sample recoveries were recorded
			byStone's field staff. Apertures in

Criteria	JORC Code explanation	Commentary	Commentary
			the cone splitter were adjusted to
			maintain a sample weight between
			2.5 and 3.5kg. Periodic sample
			weighing was carried out to ensure
			an even split between duplicate
			samples by the cone splitter.
		•	The sample sizes are considered to
			be appropriate and to correctly
			represent mineralisation at the
			deposit based on the style of
			mineralisation (lode/ mesothermal
			gold), the thickness and
			consistency of the intersections,
			the sampling methodology and
			assayranges returned forgold.
Quality of assay data	• The nature, quality and appropriateness	•	A 50g charge for the Fire Assaying
and laboratory tests	of the assaying and laboratory		was employed. This is considered
	procedures used and whether the		to be an appropriate sub-sample
	technique is considered partial or total.		size for a total determination of
	• For geophysical tools, spectrometers,		gold.
	handheld XRF instruments, etc, the	•	No geophysical tools were used to
	parameters used in determining the		determine any element
	analysis including instrument make and		concentrations.
	model, reading times, calibrations	•	Sample preparation checks for
	factors applied and their derivation,		fineness were carried out by the
	etc.		laboratory as part of their internal
	• Nature of quality control procedures		procedures to ensure the grind size
	adopted (eg standards, blanks,		of 85% passing 75 micron was
	duplicates, external laboratory checks)		achieved. Laboratory quality
	and whether acceptable levels of		control involved the use of certified
	accuracy (ie lack of bias) and precision		reference material, blanks, splits
	have been established.		and replicates as part of the in
			house procedures. These results
			were used along with Stone’s
			quality control data to illustrate that
			there was no systematic bias and
			that results had an acceptable level
			ofprecision and accuracy.
Verification of	• The verification of significant	•	The Senior Exploration Geologist
sampling and	intersections by either independent or		from Stone has visually verified the
assaying	alternative company personnel.		significant intersections using
	• The use of twinned holes.		material collected in the diamond
	• Documentation of primary data, data		cores and RC chip trays.
	entry procedures, data verification,	•	There were twinned holes drilled at
	data storage (physical and electronic)		Ben Hur deposit in 2012; No
	protocols.		twinned holes were drilled at the
	• Discuss any adjustment to assay data.		Alpha and Delta deposit;
		•	The primary data was collected by
			using logging software that was
			installed on a Toughbook™. This
			software contained standard lookup
			tables for the logging codes. The
			collected data was subsequently
			validated according to Stone’s
			proceduresprior to being sent to
			Kalgoorlie Assay Laboratories. At
			this point further validations were
			carried outprior to uploadingthe

Criteria	JORC Code explanation	Commentary
		data into a SQL database.
		• No adjustments were made to the
		assaydata.
Location of data	• Accuracy and quality of surveys used to	• Post drilling a hand-held GPS was
points	locate drill holes (collar and down-hole	used to record the drill hole
	surveys), trenches, mine workings and	coordinates. These locations were
	other locations used in Mineral	used by Stone's Mine Surveyors
	Resource estimation.	who employed a Real Time
	• Specification of the grid system used.	Kinematic (RTK) Differential GPS
	• Quality and adequacy of topographic	to pick up the collar of the holes.
	control.	The RTK method provides
		positional precision up to 10mm.
		Down-hole surveys were carried
		out every 30m using a Camteq
		Electronic Multi-shot camera.
		Regular re-surveying was carried
		out to check the quality of readings.
		• All work was carried out in the
		Geocentric Datum of Australia
		1994 (GDA94) within the zone 51
		projection.
Data spacing and	• Data spacing for reporting of	• This programme of resource
distribution	Exploration Results.	definition drilling conducted at the
	• Whether the data spacing and	Alpha, Ben Hur and Delta deposits
	distribution is sufficient to establish the	were on an approximate 20m by
	degree of geological and grade	20m spacing, along strike and down
	continuity appropriate for the Mineral	dip.
	Resource and Ore Reserve estimation	• 20m by 20m spacing at the Alpha,
	procedure(s) and classifications	Ben Hur and Delta deposits has
	applied.	been considered sufficient to
	• Whether sample compositing has been	establish geological and grade
	applied.	continuity according to the
		Australian JORC 2012 code; This
		code has been used as a reference
		on reporting results to the ASX and
		the public.
		• No compositing has been applied to
		the exploration samples.
Orientation of data	• Whether the orientation of sampling	• Pit mapping and structural
in relation to	achieves unbiased sampling of possible	measurements have been taken at
geological structure	structures and the extent to which this is	the deposits and they confirm the
	known, considering the deposit type.	orientation of mineralisation
	• If the relationship between the drilling	defined by the drilling. Based upon
	orientation and the orientation of key	the above information the drilling
	mineralised structures is considered to	for both programs has been largely
	have introduced a sampling bias, this	perpendicular to the mineralisation
	should be assessed and reported if	with some minor exceptions due to
	material.	constraints enforced by mining
		activities and infrastructure.
		• No significant orientation bias has
		been identified in the data at this
		point.
Sample security	• The measures taken to ensure sample	• Once the samples had been
	security.	collected and checked by the field
		staff they were placed into
		polyweave bags. These samples
		were then taken to a secure

Criteria	JORC Code explanation	Commentary
		laydown area at the Alpha, Delta
		mine site. Toll Priority transported
		the samples to Perth to the assay
		laboratory who stored them in a
		locked yard. A series of well tested
		digital and paper tracking
		mechanisms were used by Stone to
		track the progress of the sample
		batches.
Audits or reviews	• The results of any audits or reviews of	• An external review was carried out
	sampling techniques and data.	by CSA in July 2012. The sampling
		techniques and quality of samples
		were found to be satisfactory.

**Section

2
Reporting
of
Exploration
Results**

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

Criteria	JORC Code explanation	Commentary
Mineral tenement	• Type, reference name/number, location	• The Alpha deposit is located in
and land tenure	and ownership including agreements or	M38/1058, M38/1056, M38/1057,
status	material issues with third parties such as	M38/968, and P38/3834 mining
	joint ventures, partnerships, overriding	licences.
	royalties, native title interests, historical	• The Ben Hur deposit is located in
	sites, wilderness or national park and	M38/339 mining licences.
	environmental settings.	• The Delta deposit is located in
	• The security of the tenure held at the time	M38/346 mining licences.
	of reporting along with any known	• Stone Gold Mining Limited has a
	impediments to obtaining a licence to	100% interest in these tenements.
	operate in the area.	• The tenements are in good standing
		with no known impediments.
Exploration done by	• Acknowledgment and appraisal of	• Exploration by other parties has
other parties	exploration by other parties.	been reviewed and taken into
		account when exploring. Previous
		parties conducted rock chip
		sampling, mapping and drilling.
		This report only concerns
		exploration results collected by
		Stone.
Geology	• Deposit type, geological setting and style	• Gold mineralisation is both
	of mineralisation.	structurally and lithologically
		controlled and occurs in a series of
		stepped lodes.
		• The mineralized zone at Alpha is
		based on a single, shear hosted
		lode. The lode is shallow north
		dipping within the oxide position
		and steepens to around 50° to 60° in
		fresh rock. The shear geometry
		plunges around 10° to 150° to the
		northwest (300°).
		• The main mineralised zone at Ben
		Hur is contained within a vertical to
		steeply east dipping, sheared quartz
		dolerite unit which is 40m to 50m
		thick and strikes north northwest
		over the length of the lease.
		• The mineralization in Delta deposit
		is associated with steep east dipping
		sedimentary units, in particular the
		chert horizon located on the
		footwall of the sediment sequence.
Drill hole	• A summary of all information material to	• Refer to Tables 1 & 2 and Section
Information	the understanding of the exploration	1.
	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

Criteria	JORC Code explanation	Commentary
	the drill hole collar
	o dip and azimuth of the hole
	o down hole length and interception
	depth
	o hole length.
	• If the exclusion of this information is
	justified on the basis that the information
	is not Material and this exclusion does
	not detract from the understanding of the
	report, the Competent Person should
	clearly explain why this is the case.
Data aggregation	• In reporting Exploration Results,	• All of the reported intersections
methods	weighting averaging techniques,	have a lower cut-off of 0.5g/t with a
	maximum and/or minimum grade	maximum internal dilution of two
	truncations (eg cutting of high grades)	consecutive samples. No top-cuts
	and cut-off grades are usually Material	were applied. Individual 1m results
	and should be stated.	>1 g/t Au are also included.
	• Where aggregate intercepts incorporate	• Higher grade (generally >5g/t)
	short lengths of high grade results and	intervals within results were
	longer lengths of low grade results, the	reported alongside the overall
	procedure used for such aggregation	intersection, where a substantial
	should be stated and some typical	proportion of the total gold in an
	examples of such aggregations should be	intersection was contained within
	shown in detail.	the high-grade sub-interval(s) or
	• The assumptions used for any reporting	grades were materially higher than
	of metal equivalent values should be	adjacent assays. For example, in a
	clearly stated.	run of 1-2 g/t results, assays over
		5.0 g/t Au would be reported as a
		sub-interval; in a run of 2-6 g/t
		assays, results >10 g/t Au would be
		reported as a sub-interval. In these
		instances generally a maximum
		internal dilution of two consecutive
		samples was used. No top cuts were
		applied.
		• No metal equivalents were used.
Relationship between	• These relationships are particularly	• The main zone of mineralisation at
mineralisation	important in the reporting of Exploration	the Alpha, Ben Hur and Delta
widths and intercept	Results.	deposits are broadly 310°-trending
lengths	• If the geometry of the mineralisation with	structure that dips approximately
	respect to the drill hole angle is known,	65°to the south-west. Slightly
	its nature should be reported.	obliquely striking mineralisation is
	• If it is not known and only the down hole	most strongly formed in the
	lengths are reported, there should be a	footwall but also exists in the
	clear statement to this effect (eg ‘down	hangingwall to the main zone.
	hole length, true width not known’).	• Drill holes, where possible were
		designed to be perpendicular to the
		lodes, however, in some cases local
		infrastructure inhibited this.
		• All of the intersections are given in
		down hole metre lengths.
Diagrams	• Appropriate maps and sections (with	• Refer to previous announcements
	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.

Criteria	JORC Code explanation	Commentary
Balanced reporting	• Where comprehensive reporting of all	• All results were reported for the
	Exploration Results is not practicable,	entire drill programs.
	representative reporting of both low and
	high grades and/or widths should be
	practiced to avoid misleading reporting
	of Exploration Results.
Other substantive	• Other exploration data, if meaningful and	• No other exploration data that has
exploration data	material, should be reported including	been collected is considered to be
	(but not limited to): geological	meaningful or material to this
	observations; geophysical survey results;	announcement.
	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	• Currently, over 4,000m further
	work (eg tests for lateral extensions or	Phase II resource definition
	depth extensions or large-scale step-out	diamond and RC drilling is planned
	drilling).	for the Ben Hur deposit.
	• Diagrams clearly highlighting the areas	• Follow up drilling is currently
	of possible extensions, including the main	being finalised so is not shown.
	geological interpretations and future
	drilling areas, provided this information
	is not commercially sensitive.

**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	• The database is maintained by site
	been corrupted by, for example, transcription	personnel.
	or keying errors, between its initial collection	• The exploration database used for
	and its use for Mineral Resource estimation	the resource estimation has been
	purposes.	validated and considered accurate.
	• Data validationprocedures used.
Site visits	• Comment on any site visits undertaken by the	• The Competent Person for this
	Competent Person and the outcome of those	update is a full time employee of
	visits.	CSA Global and undertakes regular
	• If no site visits have been undertaken indicate	site visits ensuring industry
	why this is the case.	standards of the Mineral Resource
		estimation process from sampling
		through to final block model.
Geological	• Confidence in (or conversely, the uncertainty	• Geological and mineralisation
interpretation	of) the geological interpretation of the mineral	interpretations were reviewed by
	deposit.	CSA geologist. The wireframes
	• Nature of the data used and of any	were generated based on cross
	assumptions made.	sections widths of 20m – 20m
	• The effect, if any, of alternative interpretations	spacing. This was based on
	on Mineral Resource estimation.	exploration and grade control
	• The use of geology in guiding and controlling	drilling patterns.
	Mineral Resource estimation.	• Mineralisation cut-off grades of
	• The factors affecting continuity both of grade	0.3g/t Au combined with the
	and geology.	geological logging were used to
		define the mineralised envelopes.
		• The geological interpretation of
		mineralised boundaries is
		considered robust and alternative
		interpretations do not have the
		potential to impact significantly on
		the Mineral Resources.
Dimensions	• The extent and variability of the Mineral	• The Alpha deposit mineralisation
	Resource expressed as length (along strike or	extends from 472,000mE to
	otherwise), plan width, and depth below	473,500mE, 6,822,460mN to
	surface to the upper and lower limits of the	6,823,200mN, and 30m below
	Mineral Resource.	surface. The deposit with multiple
		lodes generally strikes towards NW
		with a strike length of
		approximately 1,500m, dipping
		towards the northeast at 30° -45°
		with and having a vertical extent of
		about 100m.
		• The Ben Hur deposit mineralisation
		extends from 437,000mE to
		438,000mE, 6,883,500mN to
		6,885,600mN, and 30m below
		surface. The deposit with multiple
		lodes generally strikes towards NW
		with a strike length of
		approximately 2,000m, dipping
		towards the northeast at 70° -80°
		with and havinga vertical extent of

Criteria	JORC Code explanation	Commentary
		about 120m.
		• The Delta deposit mineralisation
		extends from 441,000mE to
		442,000mE, 6,865,000mN to
		6,867,500mN, and 30m below
		surface. The deposit with multiple
		lodes generally strikes towards NW
		with a strike length of
		approximately 2,000m, dipping
		towards the northeast at 70° - 80°
		with and having a vertical extent of
		about 100m.
Estimation and	• The nature and appropriateness of the	• 1m composites was created and
modelling techniques	estimation technique(s) applied and key	used for the statistical, variography
	assumptions, including treatment of extreme	analyses and estimation.
	grade values, domaining, interpolation	• Thorough univariate statistical
	parameters and maximum distance of	analysis of density weighted, 1m,
	extrapolation from data points. If a computer	mineralogy flagged, downhole
	assisted estimation method was chosen include	composites has been completed for
	a description of computer software and	gold and for all lodes and top-cuts
	parameters used.	established where applicable.
	• The availability of check estimates, previous	• Statistical analysis indicated that
	estimates and/or mine production records and	outlier management was crucial to
	whether the Mineral Resource estimate takes	prevent severe high grade smearing
	appropriate account of such data.	that could result in potential
	• The assumptions made regarding recovery of	overestimation for some elements.
	by-products.	The approach used has been
	• Estimation of deleterious elements or other	capping (Top-cuts were defined by
	non-grade variables of economic significance	domain following thorough
	(eg sulphur for acid mine drainage	examinations of histograms,
	characterisation).	probability curves and the spatial
	• In the case of block model interpolation, the	locations of the outliers). Top cuts
	block size in relation to the average sample	ranged from 5g/t to 100g/t based on
	spacing and the search employed.	analysis of individual lodes
	• Any assumptions behind modelling of selective	statistics.
	mining units.	• Variogram modelling completed
	• Any assumptions about correlation between	within Isatis™ software and used to
	variables.	define the characterization of the
	• Description of how the geological interpretation was used to control the resource estimates.	spatial continuity of gold within all lodes and parameters used for the interpolation process. Variogram
	• 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.	model are cross-validated to ensure parameters are accurate. • Quantitative Kriging Neighbourhood analysis (QKNA) using goodness of fit statistics to optimize estimation parameters has
		been undertaken. Parameters
		optimised include block size, search
		parameters, number of samples
		(minimum and maximum) and
		block descritization.
		• Directional ranges have been
		determined from variogram
		modelling and are used to constrain
		the search distances used in block

Criteria	JORC Code explanation	Commentary
		interpolation, incorporating
		geologists’ interpretation of ore
		geometry and continuity.
		Estimation search strategies
		implemented have sought to ensure
		robust estimates while minimising
		conditional bias. Three search
		estimation runs are used with initial
		short-search runs extending the
		sample influence in later runs.
		• Block estimation has been
		completed within Datamine™
		Studio 3 Resource Modelling
		software. Three dimensional
		mineralisation wireframes were
		completed within Micromine™
		software and imported into
		Datamine™. These wireframes are
		used as hard boundaries for the
		interpolation.
		• Ordinary Kriging using a local
		dynamic anisotropy search is used
		for block grade estimates using
		uniquely coded 1m composite data
		for respective lodes.
		• All block estimates are based on
		interpolation into parent blocks.
		Parent block estimates are then
		assigned to sub-blocks. Mineral
		Resource estimation does not
		include any form of dilution.
		• Block model extends from local
		grid 4,780mE to 5,400mE,
		10,800mN to 12,700mN and
		vertical from800mRL to
		1,4000mRL.
		• Only gold was estimated.
		• No selective mining units were
		assumed in this estimate.
		• Standard model validation has been
		completed using visual and
		numerical methods and formal peer
		review sessions by key geology
		staff.
		• Mineral Resource Model has been
		validated visually against the input
		composite/raw drillhole data with
		sufficient spot checks carried out on
		a number of block estimates on
		sections and plans.
		• Easting, northing and elevation
		swath plots have been generated to
		check input composited assay
		means for block estimates within
		swath windows.
		• A comparison of block volume
		weighted mean versus the drillhole
		cell de-clustered meangrade of the

Criteria	JORC Code explanation	Commentary	Commentary
			composited data was undertaken.
		•	Efficiency models using block
			Kriging Efficiencies (KE) and
			Slope of Regression (ZZ) were used
			to quantitatively measure
			estimation quality to ensure the
			desired level of quality of
			estimation.
Moisture	• Whether the tonnages are estimated on a dry	•	Tonnages are estimated on a dry
	basis or with natural moisture, and the method		basis.
	of determination of the moisture content.
Cut-off parameters	• The basis of the adopted cut-off grade(s) or	•	The resource is not constrained by
	quality parameters applied.		economic cut off grades.
		•	The nominal 0.3g/t Au boundary
			applied to the mineralisation zone is
			based on analysis of the sample
			population and localgeology.
Mining factors or	• Assumptions made regarding possible mining	•	There are historic open pits at the
assumptions	methods, minimum mining dimensions and		Alpha and Delta deposits;
	internal (or, if applicable, external) mining	•	The Ben Hur deposit is being
	dilution. It is always necessary as part of the		considered by Stone as an open pit
	process of determining reasonable prospects		operation in the near future.
	for eventual economic extraction to consider	•	CSA has not received open pit
	potential mining methods, but the assumptions		design yet.
	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 factors	• The basis for assumptions or predictions	•	The qualitative assessment of
or assumptions	regarding metallurgical amenability. It is		sandstone and clay content of the
	always necessary as part of the process of		mineralised zones has been built
	determining reasonable prospects for eventual		into the model. Relative sandstone
	economic extraction to consider potential		and clay content affects the
	metallurgical methods, but the assumptions		processing of the ore.
	regarding metallurgical treatment processes	•	Assumptions are based on DFS
	and parameters made when reporting Mineral		metallurgical test work.
	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	•	The Alpha , Ben Hur and Delta
factors or	and process residue disposal options. It is		projects are designed with a fully
assumptions	always necessary as part of the process of		lined Tailings Storage Facility and
	determining reasonable prospects for eventual		it is planned that all sulphide
	economic extraction to consider the potential		material mined from the operation
	environmental impacts of the mining and		will be processed in the
	processing operation. While at this stage the		concentrator, eliminating any PAF
	determination of potential environmental		on the waste dumps.
	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.

Criteria	JORC Code explanation	Commentary	Commentary
Bulk density	• Whether assumed or determined. If assumed,	•	Most dry bulk density
	the basis for the assumptions. If determined,		determinations have come from
	the method used, whether wet or dry, the		samples of the diamond drill holes
	frequency of the measurements, the nature, size		over a range of RL’s.
	and representativeness of the samples.	•	They have been determined using
	• The bulk density for bulk material must have		industry standard methods of
	been measured by methods that adequately		dried/sealed weight of core or rock
	account for void spaces (vugs, porosity, etc),		sample in water versus the dry
	moisture and differences between rock and		weight in air.
	alteration zones 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 Alpha, Ben Hur and Delta
	Resources into varying confidence categories.		Mineral Resources have been
	• Whether appropriate account has been taken		classified and reported in
	of all relevant factors (ie relative confidence in		accordance with The Australasian
	tonnage/grade estimations, reliability of input		Code for Reporting of Mineral
	data, confidence in continuity of geology and		Resources and Ore Reserves (JORC
	metal values, quality, quantity and distribution		Code 2012 Version). Resource
	of the data).		classification is based on
	• Whether the result appropriately reflects the		confidence in the geological
	Competent Person’s view of the deposit.		domaining, drill spacing and
			geostatistical measures.
		•	The initial classification process
			was based on an interpolation
			distance and minimum samples
			within the search ellipse. The main
			components are summarised as
			follows:
		•	Initial classification:
		-	The resource was classed as
			Inferred if the average weighted
			sample distance was greater than 50
			m.
		-	The resource was classed as
			Indicated if the average weighted
			sample distance was between 25 m
			and 50 m.
		-	Numbers of drill holes -< 2
		Indicated and Inferred resources
			downgraded one class.
		•	The initial classification was
			reviewed visually. Based on the
			initial classification, three solids
			rescat_ind and rescat_inf were
			created to define Measured,
			Indicated and Inferred resources.
			This defined resource categories
			based on a combination of data
			density and geological confidence.
		•
Audits or reviews	• The results of any audits or reviews of Mineral	•	The Mineral Resource and
	Resource estimates.		estimation procedures prepared by
			SKR have been reviewed by CSA.
		•	The process for geological
			modelling, estimation and reporting
			of Mineral Resources has been

Criteria	JORC Code explanation	Commentary
		subject to an independent, external
		review by CSA. CSA undertook a
		peer review during 5th – 6th
		January 2014 and found the process
		to be industry standard with minor
		recommendations as part of
		continuous improvement.
Discussion of	• Where appropriate a statement of the relative	• The Mineral Resources have been
relative accuracy/	accuracy and confidence level in the Mineral	reported in accordance with the
confidence	Resource estimate using an approach or	guidelines of the 2012 edition of the
	procedure deemed appropriate by the	Australasian Code for Reporting of
	Competent Person. For example, the	Exploration Results, Mineral
	application of statistical or geostatistical	Resources and Ore Reserves and
	procedures to quantify the relative accuracy of	reflects the relative accuracy of the
	the resource within stated confidence limits,	Mineral Resources estimates.
	or, if such an approach is not deemed	• The current Mineral Resource
	appropriate, a qualitative discussion of the	model represents a robust global
	factors that could affect the relative accuracy	estimate of the remaining, in-situ
	and confidence of the estimate.	gold mineralisation for the Alpha,
	• The statement should specify whether it relates	Ben Hur and Delta deposits.
	to global or local estimates, and, if local, state	• Existing operating reports of
	the relevant tonnages, which should be	achieved production verse estimate
	relevant to technical and economic evaluation.	is positive.
	Documentation should include assumptions	• It is recommended to use optimised
	made and the procedures used.	pit shells as a guide to create
	• These statements of relative accuracy and	drilling programmes that maximise
	confidence of the estimate should be compared	the conversion from lower category
	with production data, where available.	resources (Inferred to Indicated)
		and reduces mining risk attributed
		to data density and quality. Careful
		consideration of mining dilution is
		warranted given the tenor, style and
		orientation of the mineralised lodes.

**Section

4
Estimation
and
Reporting
of
Ore
Reserves
-­‐
–Not
Applicable**

(Criteria
listed
in
section
1,
and
where
relevant
in
sections
2
and
3,
also
apply
to
this section.)

Criteria JORC Code explanation Commentary