CAPRICORN METALS LTD — Capital/Financing Update 2017

Feb 22, 2017

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ASX ANNOUNCMENT 23 February 2017

Australian Securities Exchange Code: CMM

ABN: 84 121 700 105

Strong results within 15m of surface highlight outstanding early cashflow opportunity at Karlawinda Gold Project

Latest infill results will be used to upgrade the 85,000oz resource contained in this extensive cap of very shallow mineralisation

HIGHLIGHTS

• Latest drilling fully delineates near-surface laterite mineralisation over at least a 1.1km strike length and up to 500ms wide at the Bibra deposit within the Karlawinda Gold Project in WA’s Pilbara region

• A significant high-grade component has consistently been intersected within the central core of the deposit. Recently received results include:

• KBRC0768: 21m @ 1.3g/t Au (includes 5m @ 2.9g/t Au)

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

Mr Jonathan Shellabear Non-Executive Director

Issued Capital:

Shares 486.9M Options 17.8M Share Price A$0.115 Market Cap. A$56.0m

• KBRC0767: 15m @ 1.2g/t Au (includes 11m @ 1.5g/t Au)

• KBRC0751: 16m @ 1.5g/t Au (includes 5m @ 3.9g/t Au)

• KBRC0752: 21m @ 1.1g/t Au (includes 5m @ 2.5g/t Au)

• KBRC0404: 6m @ 1.7g/t Au (includes 5m @ 2.0g/t Au)

• KBRC0492: 7m @ 2.7g/t Au (includes 4m @ 4.3g/t Au)

• KBD033: 12m @ 1.5g/t Au (includes 7m @ 2.2g/t Au)

• KBRC754: 9m @ 1.7g/t Au (includes 3m @ 4.1g/t Au)

• KBRC426: 7m @ 1.6g/t Au (includes 3m @ 3.0g/t Au)

• The laterite mineralisation starts within 1m-15m from surface and is covered mainly by sand

• This high-quality laterite mineralisation could provide strong, early cash flow for Capricorn

EXPLORATION OFFICE: 1 Coventry Parade North Fremantle, WA 6159

• Feasibility on track for completion in the middle of this year.

REGISTERED OFFICE: 15 Lovegrove Close Mount Claremont, WA 6010

T +61 8 9384 3284 F +61 8 9284 3801

E enquiries@capmetals.com.au www.capmetals.com.au

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Figure 1: Location Map: Karlawinda Gold Project

22[nd] February 2017: Capricorn Metals Ltd (ASX: CMM) is pleased to announce that the latest infill drilling at the Bibra deposit within its Karlawinda Gold Project in WA’s Pilbara region has confirmed the continuity of a very shallow cap of laterite (supergene) mineralization.

The results will be used to upgrade the 85,000-ounce laterite Resource, which Capricorn will target as a source of strong early cash flow at Karlawinda.

The laterite mineralisation has a Resource of 2.1 million tonnes at 1.3g/t Au for 85,000 ounces, representing 9.5 per cent of the total Bibra Inferred Resource (25.5 million tonnes at 1.1g/t for 914,000oz (See Appendix 1 for details).

The laterite domain has now been evaluated on a 25 x 25 metre drill pattern. The quality and consistency of the mineralisation will enable the Resource to be upgraded to a higher confidence level of Measured and Indicated.

The mineralisation has been delineated over a strike length of 1.1km and up to 500m wide (Figures 2 and 3). Within the broader mineralised envelope, there is a consolidated high-grade core that has returned thicknesses up to 21m. Recent drilling results include (See Appendix 2 for details):

The upper surface of the laterite mineralisation is typically 1 to 10m below surface and is covered by largely unconsolidated transported sediments.

The mineralisation is characterized by a readily recognized unit of pisolitic nodules and the distribution is controlled by the projection of the underlying primary shear zones.

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Figure 2: Plan showing gram x metres contours of the Laterite Domain

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Figure 3: Stacked sections showing grade and continuity of the Laterite Domain mineralisation

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MANAGEMENT COMMENT

Capricorn Managing Director Peter Thompson said these results would further strengthen the economics of Karlawinda.

“These results provide more strong evidence of the significant additional value which the laterite mineralisation will bring to Karlawinda,” Mr Thompson said.

“The WA gold industry was built on deposits that initially had a strong laterite or supergene component, which can help de-risk a project by generating very robust early cash flows.

“You do not see these opportunities very often these days, particularly over such a large primary resource without the complications of legacy mining issues and the requirement for large amounts of working capital.

“Karlawinda ticks all these boxes. It is a straightforward development opportunity with significant scale in the heart of one of the world’s most desirable mining regions.”

For and on behalf of the Board

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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, which 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.

APPENDIX 1 – RESOURCE TABLE

The June 2016 Inferred Resource for the Bibra gold deposit now reports at 25,500,000 tonnes @ 1.1g/t for 914,000 ounces of contained gold . The resource is reported at a 0.5g/t Au cut-off grade and is constrained within an optimized open pit shell using a gold price of A$1750/oz. Details of the resource are provided in Table (1).

TABLE(1): Bibra Gold JORC Open Pit Inferred Resource Estimate(as at June 30, 2016)	TABLE(1): Bibra Gold JORC Open Pit Inferred Resource Estimate(as at June 30, 2016)	TABLE(1): Bibra Gold JORC Open Pit Inferred Resource Estimate(as at June 30, 2016)	TABLE(1): Bibra Gold JORC Open Pit Inferred Resource Estimate(as at June 30, 2016)
Domain	Tonnes	Grade(g/t Au)	Ounces
Laterite	2,100,000	1.3	85,000
Saprolite	4,300,000	1.0	142,000
Transition	1,500,000	1.2	58,000
Fresh	17,600,000	1.1	629,000
Total	25,500,000	1.1	914,000

Notes on the Inferred Mineral Resource:

1. Refer to JORC 2012 Table (1) below for full details.

2. Discrepancy in summation may occur due to rounding.

3. The mineralisation has been wireframe modelled using a 0.3g/t Au assay cut-off grade. The resource estimate has been reported above a block grade of 0.5g/t Au.

4. The resource has been constrained by a A$1750/ounce conceptual optimal pit shell.

5. Ordinary Kriging was used for grade estimation utilising Surpac software v6.6.2.

6. Grade estimation was constrained to blocks within each of the mineralisation wireframes.

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APPENDIX 2 – SIGNIFICANT DRILLING RESULTS

		TABLE (1): Karlawinda Gold Project: Drilling Results	TABLE (1): Karlawinda Gold Project: Drilling Results	TABLE (1): Karlawinda Gold Project: Drilling Results	TABLE (1): Karlawinda Gold Project: Drilling Results	TABLE (1): Karlawinda Gold Project: Drilling Results	TABLE (1): Karlawinda Gold Project: Drilling Results
Hole No	Easting	Northing	RL	Dip/Az	From	To	Width	Grade (g / t Au)
KBRC123	49,902	199,697	2590	-60/105	9	26	17	0.6
		(Includes)			12	16	4	1.0
KBRC768	49,931	199,697	2590	-60/105	9	30	21	1.3
		(Includes)			14	19	5	2.9
KBRC122	49,954	199,696	2590	-60/105	9	28	19	1.5
		(Includes)			13	16	3	3.6
KBRC767	49,977	199,698	2590	-60/105	9	24	15	1.2
		(Includes)			12	23	11	1.5
KBRC121	50,003	199,699	2590	-60/105	12	22	10	0.8
		(Includes)			13	15	2	1.7
KBRC120	50,054	199,697	2590	-60/105	10	22	12	0.9
		(Includes)			12	18	6	1.1
KBRC746	50,076	199,700	2590	-60/105	11	18	7	0.8
		(Includes)			16	17	1	2.0
KBRC119	50,102	199,691	2590	-60/105	13	27	14	0.5
		(Includes)			13	16	3	1.2
KBRC766	50,124	199,698	2590	-60/105	9	20	11	0.6
		(Includes)			14	16	2	1.3
KBRC424	50,147	199,700	2590	-60/105	9	19	10	0.7
		(Includes)			14	15	1	1.5
KBRC765	50,177	199,698	2590	-60/105	14	20	6	0.6
		(Includes)			18	19	1	1.4
KBRC584	49,875	199,749	2590	-60/105	6	18	12	0.4
KBRC487	49,925	199,750	2590	-60/105	8	13	5	0.7
		(Includes)			11	13	2	1.1
KBD029	49,951	199,751	2590	-60/105	8	23	15	0.8
		(Includes)			9	16	7	1.0
KBRC752	49,974	199,747	2590	-60/105	8	29	21	1.1
		(Includes)			9	14	5	2.5
KBD044	50,000	199,750	2590	-60/105	8	25	17	1.0
		(Includes)			8	21	13	1.3
KBRC751	50,024	199747	2590	-60/105	8	24	16	1.5
		(Includes)			9	14	5	3.9
KBRC058	50,041	199,745	2590	-60/105	7	23	16	1.00
		(Includes)			9	15	6	1.9
KBRC750	50,077	199,747	2590	-60/105	9	17	8	1.0
		(Includes)			11	16	5	1.4
KBRC404	50,100	199,750	2590	-60/105	11	17	6	1.7
		(Includes)			12	17	5	2.0
KBRC749	50,125	199,747	2590	-60/105	12	15	3	1.9
		(Includes)			13	15	2	2.7
KBDM016	50,148	199,748	2590	-60/105	9	17	8	1.2
		(Includes)			15	17	2	3.8
KBRC113	49,901	199,791	2590	-60/105	7	10	3	0.4
		(Includes)			8	9	1	0.5
KBDM014	49,922	199,799	2590	-60/105	7	10	3	1.0
		(Includes)			8	9	2	1.3
KBRC112	49,954	199,794	2590	-60/105	7	16	9	0.9
		(Includes)			7	11	4	1.6
KBRC331	49,972	199,800	2590	-60/105	9	18	9	0.5
KBRC111	50,004	199,794	2590	-60/105	7	25	18	1.4

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		TABLE (1): Karlawinda Gold Project: Drilling Results	TABLE (1): Karlawinda Gold Project: Drilling Results	TABLE (1): Karlawinda Gold Project: Drilling Results	TABLE (1): Karlawinda Gold Project: Drilling Results	TABLE (1): Karlawinda Gold Project: Drilling Results	TABLE (1): Karlawinda Gold Project: Drilling Results
Hole No	Easting	Northing	RL	Dip/Az	From	To	Width	Grade (g / t Au)
		(Includes)			7	12	5	2.4
KBRC782	50,023	199,799	2590	-60/105	7	21	14	1.4
		(Includes)			8	18	10	1.7
KBRC492	50,050	199,800	2590	-60/105	8	15	7	2.7
		(Includes)			9	13	4	4.3
KBRC817	50,078	199,800	2590	-60/105	8	18	10	1.3
		(Includes)			9	12	3	3.6
KBD033	50,101	199,799	2590	-60/105	8	20	12	1.5
		(Includes)			10	17	7	2.2
KBRC754	50,127	199,800	2590	-60/105	8	17	9	1.7
		(Includes)			11	14	3	4.1
KBRC426	50,150	199,800	2590	-60/105	9	16	7	1.6
		(Includes)			11	14	3	3.0
KBRC753	50,175	199,800	2590	-60/105	9	16	7	1.2
		(Includes)			13	16	3	2.4

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APPENDIX 3: 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, whether core is oriented and if so, by what method, etc.).	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 using a nominal 135mm diameter face 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.

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Criteria	JORC Code explanation	Commentary
		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. Data on rocktype, deformation, colour, structure, alteration, veining, mineralisation and oxidation state were recorded. RQD, magnetic susceptibility and core recoveries were recorded. RC chips sample quality and weights were also recorded, including whether wet or dry Logging is both qualitative and quantitative or semi-quantitative in nature. Core was photographed both dry and wet
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 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/MS 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

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Criteria	JORC Code explanation	Commentary
		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.
Location of data points	• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	Drillhole collars were positioned using a Garmin hand held GPS or by Survey group of Osbourne Park, WA Downhole surveys were collected by driller operated in-rod reflex north seeking gyro at the end of each hole. The measurements were taken every 30 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.	No exploration results have been reported Drilling is being completed on a 25x25m grid. 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. Holes in the drill programs have being drilled at inclination of -60 and -90 degrees. The orientation of the drilling is suitable for the mineralisation style and orientation of the Bibra mineralisation.
Sample security	• The measures taken to ensure sample security.	Calico sample bags are sealed into green bags/polyweave 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 reviewed by company senior personnel.

Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	The Bibra deposit is located in EPM52/1711 held by Greenmount Resources PTY LTD. Capricorn Metals is currently in a purchase agreement with Independence Group Ltd, where acquisition will be finalised in 2016. Please see Capricorn Metals ASX at http://capmetals.com.au/ for further details The Bibra mineralisation is within the granted E52/1711 exploration tenement in the Pilbara region of Western Australia. E52/1711 was acquired from BHPB in 2008. BHPB retain a 2% NSR and a claw-back provision whereby BHPB can elect to acquire a 70% equity in the project only if JORC compliant reported resources of 5,000,000 ounces of gold and/or 120,000 tonnes of contained nickel have beendelineated. TheNyiyaparligroup

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Criteria	JORC Code explanation	Commentary
		are Native Title claimants covering an area including E52/1711. There is no known heritage or environmental impediments over the lease. A mining lease sufficient in size to cover the Bibra resource area and potential associated infrastructure for a future mining operation has been applied for, and IGO is currently in negotiation with the Nyiyaparli group over this application. No other known impediments exist to operate in the area.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	Prior to Capricorn Metals, the tenement was held by the Independence group (IGO) who undertook exploration between 2008 & 2014. Prior to Independence group, WMC explored the area from 2004 to 2008
Geology	• Deposit type, geological setting and style of mineralisation.	Bibra is part of a large-scale Archaean aged gold mineralized system. The resource is hosted within a package of deformed meta-sediments which has developed on at least two parallel, shallow dipping structures; supergene oxide mineralization has developed over the structures close to surface. The primary mineralization is strata-bound with lineation’s identified as controlling higher-grade shoots. The deposit is oxidized to average depths of 50-70m.
Drill hole Information	• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: 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.	Please refer to Tables in the text
Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. 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.	In the ore zone four separate fire assays were completed for each 1m sample to reduce the nugget effect. The four assays were then averaged to calculate the final assay grade.
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 (e.g. ‘down hole length,	At Bibra, the geometry of the mineralisation has already been defined from previous drilling programs. The intersection angle between drill angle and the perpendicular angle to the ore zone is less than 10 degrees.
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Criteria	JORC Code explanation	Commentary
	true width not known’).
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.	The diagrams in the report provide sufficient information to understand the context of the drilling results.
Balanced reporting	• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	The accompanying document is considered to be a balanced report with a suitable cautionary note.
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.	Systematic metallurgical testwork programs over 2012/13 on master and variability composites from diamond core identifies mineralisation as free milling and amenable to cyanidation
Further work	• The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	Drilling Program is currently taking place

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