CAPRICORN METALS LTD — Capital/Financing Update 2016

Jun 9, 2016

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KARLAWINDA SET FOR RESOURCE UPGRADE FOLLOWING MORE STRONG GOLD RESULTS

Updated resource for Bibra deposit due by the end of June as final assays confirm significant extensions

ASX ANNOUNCMENT 10 June 2016

Australian Securities Exchange Code: CMM

HIGHLIGHTS

• Final results (5 holes) from the 47-hole resource expansion drilling program at Bibra have now been returned.

• The results continue to confirm significant extensions of quality gold mineralisation well outside the current Inferred Resource boundary (18Mt at 1.1g/t for 650,800oz – Table 1).

• Significant results from the final batch of assays include (see Tables 2 and 3):

ABN: 84 121 700 105

• KBRC 328: 13 metres @ 1.63g/t Au from 171m

• KBRC 326: 22 metres @ 1.10g/t Au from 236m

Board of Directors:

Mr Guy LeClezio Non-Executive Chairman

Mr Peter Thompson Managing Director

Mr Peter Langworthy Technical Director

Mr Heath Hellewell Non-Executive Director

Issued Capital:

Shares 487M Options 18.7M Share Price A$0.15 Market Cap. A$73M

• KBRC 330: 22 metres @ 1.36g/t Au from 178m

• Results from the last five holes confirm that strong gold mineralisation extends for at least 200m down-plunge beyond the limits of previous drilling.

• Mineralisation has been intersected in all 47 holes drilled by Capricorn as part of this maiden drill program, laying the foundations for a significant expansion of the Bibra resource.

• Based on these new results and those previously announced, it is expected that the resource will extend well beyond the current optimised open pit boundary, resulting in a significant upgrade to the resource.

• Resource modelling activities are well advanced with results expected to be available for reporting by June 30.

• With strong upcoming news-flow from Karlawinda including the imminent resource upgrade, Scoping Study activities and ongoing exploration and development studies, Capricorn is well placed to take advantage of the strong market environment for Australian gold projects.

EXPLORATION OFFICE: 1 Coventry Parade North Fremantle, WA 6159

REGISTERED OFFICE: 15 Lovegrove Close Mount Claremont, WA 6010

T +61 8 9384 3284

10th June 2016 : Capricorn Metals Ltd (ASX: CMM) is pleased to advise that final results have now been returned from the recently completed 47-hole resource expansion drilling program at the Bibra Gold Deposit, part of its 100%-owned Karlawinda Gold Project in WA’s Pilbara (Figure 1).

The last five drill holes of the program all intersected significant mineralisation, confirming that the mineralisation extends for at least 200m beyond the limits of previous drilling. These latest assays, combined with the previously announced results, confirm significant extensions to the Bibra deposit, putting Capricorn firmly on track to deliver a significant upgrade to the JORC resource estimate for the Bibra deposit in June .

The Karlawinda Gold Project is located in the Pilbara region, 65km south-east of Newman in WA, within the Archaean aged Sylvania Dome Inlier (Figure 1). Karlawinda is an advanced gold project which includes the Bibra deposit and numerous outstanding exploration targets including the Francopan prospect.

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Figure 1: Location Map: Karlawinda Gold Project

KEY POINTS:

• A series of drill-holes (KBRC 324 to 330) were drilled to test for significant extensions of the mineralisation outside of the current resource in the down-dip position. The results demonstrate that strong gold mineralisation extends for at least a further 200m down-dip and has the potential to expand the resource well beyond the current resource boundary (Figure 2). The results from this drilling include:

  • KBRC 326: 22 metres @ 1.10g/t Au

  • KBRC 328: 13 metres @ 1.63g/t Au

  • KBRC 330: 22 metres @ 1.36g/t Au

  • KBRC 324:* 26 metres @ 1.48g/t Au and 6 metres @ 2.49g/t Au

  • KBRC 325:* 25 metres @ 1.05g/t Au and 14 metres @ 1.12g/t Au

• (* Previously announced results – see Tables 2 and 3 for details)

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• As with the previously reported results, the new results continue to match or exceed the anticipated widths and grades predicted by previously completed wide-spaced drilling. The new results are expected to add significantly to the existing Inferred Resource (Tables 2 and 3); and

• Deeper mineralisation increasingly extends beyond the current base of the 2012 optimised pit shell and is now expected to extend the resource into these areas (Figure 4).

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Figure 2: Plan Showing Current Drilling Status

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Figure 3: BIBRA GOLD DEPOSIT SCHEMATIC CROSS SECTION (199800N)

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Figure 4: BIBRA GOLD DEPOSIT SCHEMATIC CROSS SECTION (200850N)

NEXT STEPS

Resource modelling and estimation activities are well advanced and results are expected for reporting in the last week of June.

MANAGEMENT COMMENT

Capricorn’s Managing Director, Mr Peter Thompson, said the receipt of the final assay results from the recent 47-hole drill program at Karlawinda marked another significant step forward for the project.

“ It is a reflection of the quality and scale of the Bibra deposit that we have been able to report significant mineralisation in every single hole drilled as part of this maiden drill program,” he said.

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“ The assay results reported today include some important intersections down-dip of the previously identified mineralisation which are expected to impact on the imminent Resource Upgrade and Scoping Study.

“We are very pleased with the progress we have achieved at Karlawinda in a relatively short space of time, and we are looking forward to what will be a very busy second half of the year as we advance this high-quality mid-tier gold asset towards potential development.”

For and on behalf of the Board

Peter Thompson

Managing Director

For further information, please contact:

Mr Peter Thompson, Managing Director Mr Nicholas Read Email: pthompson@capmet.com.au Read Corporate Phone: 0417 979 169 Phone: 0419 929 046

Competent Persons Statement

The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled or reviewed by Mr. Peter Langworthy, Technical Director, who is a Member of the Australian Institute of Mining and Metallurgy. Mr. Peter Langworthy is a full time Director of Capricorn Metals Limited and has sufficient experience, whi1ch is relevant to the style of mineralisation and types of deposit under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Peter Langworthy consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

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APPENDIX 1 – RESOURCE TABLE AND DRILLHOLE DATA

Table 1 – Karlawinda Gold Project – Bibra Gold Deposit – June 2014 Resource Table

Mineral Resource 30 June 2014* - Reported at a 0.5g/t Au cut off grade

Mineral Resource 30 June 2014* - Reported at a 0.5g/t Au cut off grade	Mineral Resource 30 June 2014* - Reported at a 0.5g/t Au cut off grade	Mineral Resource 30 June 2014* - Reported at a 0.5g/t Au cut off grade	Mineral Resource 30 June 2014* - Reported at a 0.5g/t Au cut off grade
Classification	Tonnes (Mt)	Au g/t	Contained Au (Oz)
Measured	--	--	--
Indicated	--	--	--
Inferred	18	1.1	650,800
GRAND TOTAL	18	1.1	650,800

Notes:

1. The Mineral Resource estimate was estimated within a conceptual A$1,600/oz Au pit shell completed in 2012 and for the area of drill coverage at 100m x 50m spacing or less. Contained gold (oz) figures have been rounded to the nearest one hundred ounces.

2. The Mineral Resource has been unchanged since 2013.

3. Mostly RC drilling with 1m cone split samples analysed by 50g fire assay.

4. Mineralisation was wireframed at a cut-off grade of 0.3g/t Au and Mineral Resources were reported above a cut-off grade of 0.5g/t Au.

5. Block modeling used ordinary kriging grade interpolation methods for composites that were top-cut to 10g/t Au in the supergene zone and 16g/t Au for the remaining mineralization. Top cuts are not severe, trimming no greater than 0.5% of the samples.

6. There are no Ore Reserves for Karlawinda.

Table 2 – Karlawinda Gold Project: Drilling Results

HOLE No	From	To	Intercept	Grade
KBRC284	151	163	12	0.96
	176	189	13	1.02
KBRC285	169	178	9	5.10
	190	211	21	1.33
KBRC286	189	197	8	0.86
	203	218	15	1.07
KBRC287	92	94	2	3.98
	97	99	2	1.20
	133	135	2	1.09
	187	195	8	0.73
	198	208	10	0.95
KBRC288	23	35	12	1.03
	86	89	3	1.07
	160	172	12	0.70
	197	200	3	0.89
KBRC289	40	43	3	1.40
	163	176	13	0.59
	177	185	8	1.16
KBRC290	126	135	9	3.32
	183	199	16	0.53
	200	219	19	1.37
KBRC291	95	101	6	0.78

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HOLE No	From	To	Intercept	Grade
	154	166	12	0.83
	171	181	9	1.07
KBRC292	67	74	7	1.24
	124	132	8	0.95
	144	155	11	1.33
KBRC293	73	84	11	0.99
	138	149	11	1.12
	164	172	8	1.13
KBRC294	93	100	7	1.52
	142	151	9	0.65
	160	183	23	1.13
KBRC295	111	117	6	1.36
	167	181	14	0.66
	183	200	17	1.14
KBRC296	89	94	5	3.71
	138	154	16	0.87
	160	179	19	1.35
KBRC297	160	170	10	1.09
	171	193	22	1.58
KBRC298	174	192	18	0.89
	195	207	12	0.55
	209	214	5	1.04
KBRC299	32	35	3	1.65
	124	126	2	1.30
	129	147	18	1.00
	163	166	3	6.17
KBRC300	15	21	6	1.54
	138	146	8	0.68
	152	163	11	1.12
	173	174	1	2.05
	177	179	2	7.45
KBRC301	38	39	1	4.18
	154	160	6	0.80
	172	181	9	1.35
KBRC302	55	57	2	1.12
	114	119	5	1.23
	175	176	1	1.04
	182	191	9	1.35
KBRC303	100	103	3	3.29
	131	134	3	1.45
	151	152	1	1.84

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HOLE No	From	To	Intercept	Grade
KBRC304	119	121	2	1.98
	147	152	5	0.87
	163	167	4	0.68
	183	184	1	6.78
KBRC305	62	64	2	0.72
	133	151	18	1.06
KBRC306	75	78	3	2.42
	86	88	4	1.38
	146	161	15	1.01
KBRC307	42	45	3	1.83
	151	155	4	1.01
	157	175	16	1.15
KBRC308	30	41	11	0.61
KBRC309	46	50	4	1.43
	59	64	5	1.20
KBRC310	29	30	1	1.93
	33	34	1	1.04
	54	56	5	0.75
	85	87	2	5.86
KBRC311	52	76	24	1.01
KBRC312	67	68	1	1.25
	74	76	2	2.97
	93	95	1	1.31
KBRC313	76	77	1	0.74
	90	91	1	0.55
KBRC314	213	225	12	0.7
	244	245	1	8.15
KBRC315	18	20	2	1.77
	27	29	2	3.83
	107	108	1	3.88
	151	153	2	1.65
	157	161	4	1.34
	212	223	11	1.21
	233	234	1	1.41
	239	241	2	2.45
KBRC316	20	39	19	1.33
	46	50	4	1.13
	79	87	8	0.68
	94	95	1	1.05
	124	129	5	0.98
	153	155	2	3.86

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HOLE No	From	To	Intercept	Grade
	191	200	9	1.08
	227	238	11	0.81
KBRC317	27	28	1	0.79
	39	40	1	1.43
	60	66	6	0.61
	150	151	1	1.63
	155	157	2	1.69
	203	208	5	1.34
	213	236	23	1.08
KBRC318	108	118	10	0.63
	175	183	8	1.15
	193	200	7	1.70
	206	208	2	4.30
KBRC319	106	107	1	1.63
	126	139	13	1.45
	190	198	8	1.01
	206	218	12	1.64
	224	226	2	1.18
KBRC320	15	16	1	4.27
	27	30	3	1.02
	183	201	18	1.01
KBRC321	119	125	6	1.15
	131	135	4	0.80
	156	157	1	2.35
KBRC322	44	49	5	1.05
	168	169	1	1.37
KBRC323	78	80	2	0.78
	189	190	1	0.62
KBRC324	22	23	1	1.24
	71	72	1	1.26
	80	82	2	1.33
	88	89	1	1.80
	92	93	1	1.24
	165	169	4	2.45
	200	204	4	1.03
	231	257	26	1.48
	270	276	6	2.49
KBRC325	132	133	1	1.75
	264	289	25	1.05
	296	310	14	1.12
KBRC326	52	57	6	0.85

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HOLE No	From	To	Intercept	Grade
	123	125	2	1.17
	166	172	6	1.50
	186	188	2	2.31
	236	257	22	1.10
	276	278	2	0.88
KBRC327	86	89	3	0.97
	109	111	2	2.45
	240	246	6	0.81
	255	267	12	0.80
	271	280	9	1.00
KBRC328	171	184	13	1.63
KBRC329	143	145	2	1.96
	164	178	14	0.81
KBRC330	167	170	3	1.05
	178	200	22	1.36
	207	209	2	1.26

(Note: See Appendix (2) JORC Code (2012) Table 1 Parameters).

Table 3: Drill Collar Summary

Hole_ID	Drilling Status	MGA_E	MGA_N	Local_N	Local_E	RL	Azi	Dip	Depth
KBRC284	Complete	203912	7368888	200050	49850	600	0	-90	209
KBRC285	Complete	203864	7368901	200050	49800	600	0	-90	227
KBRC286	Complete	203780	7368975	200100	49700	600	0	-90	250
KBRC287	Complete	203793	7369024	200150	49700	600	0	-90	226
KBRC288	Complete	203854	7369059	200200	49750	600	0	-90	226
KBRC289	Complete	203867	7369107	200250	49750	600	0	-90	208
KBRC290	Complete	203803	7368866	200000	49750	600	0	-90	239
KBRC291	Complete	203886	7368792	199950	49850	600	0	-90	203
KBRC292	Complete	203983	7368766	199950	49950	600	0	-90	173
KBRC293	Complete	203935	7368779	199950	49900	600	0	-90	185
KBRC294	Complete	203899	7368840	200000	49850	600	0	-90	203
KBRC295	Complete	203851	7368853	200000	49800	600	0	-90	221
KBRC296	Complete	203925	7368936	200100	49850	600	0	-90	209
KBRC297	Complete	203877	7368949	200100	49800	600	0	-90	221
KBRC298	Complete	203829	7368962	200100	49750	600	0	-90	233
KBRC299	Complete	203986	7368972	200150	49900	600	0	-90	166
KBRC300	Complete	203938	7368985	200150	49850	600	0	-90	179
KBRC301	Complete	203890	7368998	200150	49800	600	0	-90	191
KBRC302	Complete	203842	7369011	200150	49750	600	0	-90	209
KBRC303	Complete	203951	7369033	200200	49850	600	0	-90	191

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Hole_ID	Drilling Status	MGA_E	MGA_N	Local_N	Local_E	RL	Azi	Dip	Depth
KBRC304	Complete	203903	7369046	200200	49800	600	0	-90	209
KBRC305	Complete	204012	7369068	200250	49900	600	0	-90	167
KBRC306	Complete	203964	7369081	200250	49850	600	0	-90	179
KBRC307	Complete	203916	7369094	200250	49800	600	0	-90	191
KBRC308	Complete	204425	7369061	200350	50300	600	0	-90	71
KBRC309	Complete	204376	7369074	200350	50250	600	0	-90	77
KBRC310	Complete	204328	7369087	200350	50200	600	0	-90	95
KBRC311	Complete	204280	7369100	200350	50150	600	0	-90	107
KBRC312	Complete	204231	7369113	200350	50100	600	0	-90	113
KBRC313	Complete	204183	7369126	200350	50050	600	0	-90	125
KBRC314	Complete	203732	7368988	200100	49650	600	0	-90	251
KBRC315	Complete	203745	7369036	200150	49650	600	0	-90	245
KBRC316	Complete	203758	7369085	200200	49650	600	0	-90	251
KBRC317	Complete	203754	7368879	200000	49700	600	0	-90	251
KBRC318	Complete	203838	7368804	199950	49800	600	0	-90	215
KBRC319	Complete	203790	7368817	199950	49750	600	0	-90	233
KBRC320	Complete	203819	7369120	200250	49700	600	0	-90	221
KBRC321	Complete	203977	7369130	200300	49850	600	0	-90	173
KBRC322	Complete	203929	7369143	200300	49800	600	0	-90	191
KBRC323	Complete	203880	7369155	200300	49750	600	0	-90	203
KBRC324	Complete	203671	7368953	200050	49600	600	0	-90	299
KBRC325	Complete	203574	7368979	200050	49500	600	0	-90	335
KBRC326	Complete	203635	7369014	200100	49550	600	0	-90	293
KBRC327	Complete	203657	7368905	200000	49600	600	0	-90	222
KBRC328	Complete	203557	7368724	199800	49550	600	0	-90	221
KBRC329	Complete	203593	7368663	199750	49600	600	0	-90	197
KBRC330	Complete	203593	7368663	199750	49600	600	0	-90	200

Note: See Appendix (2) JORC Code (2012) Table 1 Parameters.

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Appendix 2: Bibra RC Drilling Program JORC Code, 2012 Edition Table 1

Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling techniques	 Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.  Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.  Aspects of the determination of mineralisation that are Material to the Public Report.  In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.	2kg - 3kg samples were split from dry 1m bulk samples. The sample was initially collected from the cyclone in an inline collection box with independent upper and lower shutters. Once the metre was completed, the drill bit was lifted off the bottom of the hole, to create a gap between sample, when the gap of air came into the collection box the top shutter was closed off. Once the top shutter was closed, the bottom shutter was opened and the sample was dropped under gravity thorough a Metzke cone splitter. Once drilling reached fresh rock a fine spray of water was used to suppress dust and limit the loss of fines thorough the cyclone chimney. A second 2kg-3kg sample was collected at the same time the original sample. This sample has been stored on site. These duplicate samples have been retained for follow up analysis and testwork. The bulk sample of the main ore zone was discharged from the cyclone directly into green bags. The bulk sample from the waste and hanging wall zones was collected in wheelbarrows and dumped into neat piles on the ground. During the sample collection process, the cone split, original and duplicate calico samples and the reject green bag samples were weighed to test for bias’s and sample recoveries. The majority of the check work was undertaken through the main ore zones, however approximately 10% of the holes drilled had the whole hole weighed. Field duplicates were collected at a ratio of 1:20 through the mineralised zones and collected at the same time as the original sample through the B chute of the cone splitter. OREAS certified reference material (CRM) was inserted at a ratio of 1:20 through the mineralised zone. The grade ranges of the CRM’s were selected based on grade populations and economic grade ranges.
Drilling techniques	 Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type,	All Drilling has been completed by reverse circulation using a DRA600 RC rig with 1350cfm@500psi compressor with a 1800cfm x 800psi booster and 900cfm, 350psi auxiliary. The hole was drilled usinga nominal 135mm diameter face

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Criteria	JORC Code explanation	Commentary
	whether core is oriented and if so, by what method, etc.).	sampling bit, and to limit the hole deviation 4metre thick wall rod and top and bottom stabilisers were used.
Drill sample recovery	 Method of recording and assessing core and chip sample recoveries and results assessed.  Measures taken to maximise sample recovery and ensure representative nature of the samples.  Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	During the sample collection process, the cone split, original and duplicate calico samples and the reject green bag samples were weighed to test for bias’s and sample recoveries. The majority of the check work was undertaken through the main ore zones, however approximately 10% of the holes drilled had the whole hole weighed. Once drilling reached fresh rock a fine spray of water was used to suppress dust and limit the loss of fines thorough the cyclone chimney. At the end of each metre the bit was lifted off the bottom to separate each metre drilled. The majority of samples were of good quality with ground water having minimal effect on sample quality or recovery. From the collection of recovery data, no identifiable bias exists.
Logging	 Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.  Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.  The total length and percentage of the relevant intersections logged.	Reverse circulation chips were washed and stored in chip trays in 1m intervals for the entire length of each hole. Chips were visually inspected and logged to record lithology, weathering, alteration, mineralisation, veining and structure.
Sub-sampling techniques and sample preparation	 If core, whether cut or sawn and whether quarter, half or all core taken.  If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.  For all sample types, the nature, quality and appropriateness of the sample preparation technique.  Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.  Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.  Whether sample sizes are appropriate to the grain size of the material being sampled.	Samples were split from dry, 1m bulk sample via a cone splitter directly from the cyclone. The quality control procedure adopted through the process includes: Weighing of both Calico samples and reject sample to determine sample recovery compared to theoretical sample recovery and to check sample bias through the splitter. Field duplicates were collected at a ratio of 1:20 through the mineralised zones and collected at the same time as the original sample through the B chute of the cone splitter. OREAS certified reference material (CRM) was inserted at a ratio of 1:20 through the mineralised zone. The grade ranges of the CRM’s was selected based on grade populations and economic grade ranges The duplicate and CRM’s were submitted

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Criteria	JORC Code explanation	Commentary
		to the lab using unique sample ID’s. A 2kg – 3kg sample were submitted to Intertek laboratory in Maddington in WA. Samples were oven dried at 105°C then jaw crushed to -10mm followed by a Boyd crush to a nominal -2mm. Samples were rotary split to 2.5kg. Samples were then pulverised in LM5 mills to 85% passing 75μm under sample preparation code EX03_05 which consists of a 5 minute extended preparation for RC/Soil/RAB. The extended time for the pulverisation is to improve the pulverisation of samples due to the presence of garnets in the samples All the samples were analysed for Au using the FA50/AAS technique which is a 50g lead collection fire assay
Quality of assay data and laboratory tests	 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.  For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.  Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	 Samples were submitted to the Intertek laboratory in Perth. In the waste zones, analysis has been completed by a single fire assay. In the main mineralised zone four fire assays from the sample pulp were completed and then averaged to determine, the assay grade of the sample to reduce the impact of the nugget effect in each ore zone sample The samples were determined for gold, pt, pd and additional elements/base metals, using ICP optical emission spectrometry and ICP mass spectrometry.  Field duplicates were collected at a ratio of 1:20 through the mineralised zones and collected at the same time as the original sample through the B chute of the cone splitter. OREAS certified reference material (CRM) was inserted at a ratio of 1:20 through the mineralised zone. The grade ranges of the CRM’s were selected based on grade populations and economic grade ranges.
Verification of sampling and assaying	 The verification of significant intersections by either independent or alternative company personnel.  The use of twinned holes.  Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.  Discuss any adjustment to assay data.	 Logging and sampling were recorded directly into a Micromine field marshal template, which utilises lookup tables and in file validation on a Toughbook by the geologist on the rig.  Assay results when received were plotted on section and were verified against neighbouring holes.  In the current program no twin holes have been completed.
Location of	 Accuracy and quality of surveys used to	 The drill collars werepositioned using

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Criteria	JORC Code explanation	Commentary
data points	locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.  Specification of the grid system used.  Quality and adequacy of topographic control.	a Garmin hand held GPS. The coordinates were plotted and marked in GDA94 / MGA zone 51.  Downhole surveys were collected by driller operated in-rod gyro at the end of each hole. Measurements were taken every 10 metres
Data spacing and distribution	 Data spacing for reporting of Exploration Results.  Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.  Whether sample compositing has been _applied. _	 Drilling is being completed on a 50x50m grid. Drill spacing is sufficient for current resource classification  Samples collected and analysed for each metre down the hole. Whole hole is analysed.
Orientation of data in relation to geological structure	 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.  If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	 Drill lines are oriented across strike on a local grid. Bibra orebody dips at 30 degrees to the North West. Hole in the current programs are being drilled at inclination of 90 degrees and intersect the ore body at an angle less than 10 degrees from perpendicular.
Sample security	 The measures taken to ensure sample security.	 5 calico sample bags were sealed into green bags and cable tied. These bags were then sealed in bulka bags by company personnel, dispatch by third party contractor, in-company reconciliation with laboratory assay returns.
Audits or reviews	 The results of any audits or reviews of sampling techniques and data.	 Program review by company senior Geologist.  Prior to commencement of drill program a meeting of industry specialists was held to discuss the sampling and analytical techniques to get consensus and or improvements on the drilling and sampling protocol

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