COPPERMOLY LIMITED — Capital/Financing Update 2020

Mar 3, 2020

ADDRESS PHONE Suite 2, 42 Morrow Street +61 (07) 3217 7544 TARINGA QLD 4068 EMAIL info@coppermoly.com.au ABN 54 126 490 855 WEBSITE www.coppermoly.com.au

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ASX Announcement

4[th] March 2020

ASX Code: COY

Simuku Project Copper-Gold Inferred Mineral Resource Increases by 90% to 374Mt

Highlights

• The Simuku Project, on the island of New Britain in Papua New Guinea, is host to a large porphyry copper-molybdenum-gold deposit. Coppermoly has recently updated the Mineral Resource to take into account the results of additional drilling

• The Mineral Resource on the Simuku Project has been re-estimated and has increased by 90% to 373.6Mt @ 0.31% Cu, 58.5g/t Mo and 0.05g/t Au, at a 0.2% Cu cut-off, classified as Inferred in accordance with the 2012 JORC Code & Guidelines

• The Simuku Copper-Molybdenum-Gold Inferred Mineral Resource is open to the north, both along strike and down plunge, indicating that potential exists to further increase the Mineral Resource

• Interpretation of Induced Polarisation (IP) data has identified several chargeability anomalies, associated with known sulphide occurrences, in close proximity to the Simuku Mineral Resource, which require field verification and geochemical sampling to determine if drill testing is warranted

• Several new porphyry copper target zones have been identified from the correlation of IP, geochemical and geological data, suggesting the Simuku Project could host multiple porphyry copper intrusive bodies

Coppermoly Limited ( “Coppermoly” or “the Company” ) is pleased to announce the results of an update of the copper-molybdenum-gold Mineral Resource on the Simuku Project on the island of New Britain, Papua New Guinea. The Company has updated the 2009 Mineral Resource[1] , taking into consideration deeper drilling completed between 2009 and 2012 and recent advances in the Company’s geological understanding of the Simuku Project. The Simuku copper-molybdenum-gold Mineral Resource has been updated as 373.6Mt @ 0.31% Cu, 58.5g/t Mo and 0.05g/t Au, at a 0.2% Cu cut-off, and has been classified as Inferred in accordance with the 2012 JORC Code & Guidelines

1See Coppermoly ASX Announcement 1 May 2009. The Company is not aware of any new information or data that materially affects the information included in the referenced ASX announcement, except as included in this announcement, and confirms that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

Coppermoly’s Managing Director Dr. Wanfu Huang commented that achieving a 90% increase to the Simuku porphyry copper-molybdenum-gold Mineral Resource was an excellent result which clearly demonstrates the overall significant potential of the project.

“We have undertaken a thorough re-evaluation of the Simuku project, incorporated the results of some deeper drilling underneath the previous Mineral Resource[2 ] and we have been able to increase the Inferred Mineral Resource from 200Mt to 374Mt, so this is an excellent result.”

“Through the process of updating the Mineral Resource we have correlated our geological, geophysical and geochemical data sets and from this process identified a number of other porphyry copper-molybdenum-gold targets, which suggest that the current Simuku deposit could be one of a cluster of porphyry copper-molybdenum-gold systems on the overall Simuku project” he said.

Simuku Project

The Simuku Project comprises Exploration Licence 2379 on the island of New Britain in Papua New Guinea (Figure 1). Mineralisation at Simuku is copper-molybdenum-gold porphyry style associated with the Simuku-Kulu Intrusive Complex, which is Upper Oligocene in age.

Figure 1 – Location of the Simuku Project

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2See Coppermoly ASX Announcement 1 May 2009. The Company is not aware of any new information or data that materially affects the information included in the referenced ASX announcement and confirms that other than the information included included in this announcement, all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

The Simuku-Kulu Intrusive complex comprises:

• Diorite Unit

• Feldspar Porphyry

• Quartz Feldspar Porphyry

• late Rhyolite-dacite dykes

The copper-molybdenum-gold mineralisation is pre-dominantly hosted within the feldspar porphyry and to a lesser extent in the andesitic volcanics, diorite and volcaniclastics. The Simuku porphyry copper-molybdenum-gold deposit is discontinuous over a large area of approximately 4.5 x 2.2 km. The deposit has a very distinct elongate pattern to the mineralisation with an envelope of copper around a molybdenum core exhibiting phyllic alteration (Figure 2).

The content of chalcopyrite (copper sulphide) is quite variable throughout the deposit, whereas pyrite associated with alteration, is ubiquitous across the deposit varying from weak to fine disseminations (<0.5% vol), fracture in-fill, replacements and veins. The copper mineralisation is assumed to have been emplaced post formation of all the geological units and infiltrated along the faults and fractures.

A representative cross section through the Simuku porphyry copper-molybdenum-gold deposit is given in Figure 3.

Three and potentially four porphyry copper-molybdenum-gold prospects, spaced along a 3 to 4 km, north to northeast trending zone, have been recognised on the Simuku Project.

Between 1981 and 2006, 20 drill holes were completed on the Simuku project by various mineral exploration companies. In 2008, 15 diamond drill holes were drilled in the northern end of the Simuku deposit by Coppermoly for a total of 4,194m. Between 2010 and 2012, under a joint venture agreement with Coppermoly, Barrick drilled 9 deeper holes to a maximum depth of ~1,000m to test the depth extent of the Simuku porphyry copper-molybdenum-gold deposit and to determine if the copper grade increased with depth. Deeper copper mineralisation was intersected, however the grade remained relatively consistent with the copper mineralisation at shallower levels.

The broader regional geology is that the island of New Britain is underlain by Lower Tertiary basement rocks consisting of island arc volcanics, volcanoclastic rocks and coeval intrusive rocks. Three major units are recognised comprising the Upper Eocene Baining Volcanics, the Upper Oligocene Merai Volcanics and Upper Oligocene Kapuluk Volcanics including the Simuku-Kulu Intrusive Complex host to the copper-molybdenum-gold mineralisation at the Simuku Project.

The Baining Volcanics are submarine volcanic rocks comprising basaltic to andesitic lavas, volcanoclastic lavas and breccias. The Merai Volcanics, found in east New Britain, are considered equivalent to the Kapuluk Volcanics in central and western New Britain and comprise tuffs, basic to intermediate lavas and coeval hypabyssal rocks and volcanic breccias.

Volcanism ceased during the Early Miocene during which the Yalam Limestone was accumulated during a period of regional subsidence and overlies the sequences hosting the porphyry copper-

molybdenum-gold mineralisation at the Simuku Project. Renewed volcanism during the Pliocene deposited the Kapiura Volcanics.

Figure 2 – Geology of the Simuku Mineral Resource

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Figure 3 – Simuku Mineral Resource Representative Cross Section

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Simuku Project Mineral Resource Estimation

H&S Consultants (“H&SC”) were contracted by Coppermoly to complete an updated Mineral Resource estimate for the Simuku porphyry copper-molybdenum-gold deposit. The resource estimate incorporated all the available drill hole data compiled by Coppermoly including deeper drill holes completed on the projects by then joint venture partner Barrick in 2010 and 2012.

Coppermoly supplied the drill hole database to H&SC, for the Simuku deposit as an Access database, which H&SC accepted in good faith as an accurate, reliable and a complete representation of the available data. Data included geological logging with oxidation observations, core recoveries for most of the drill holes and drill hole assay data. No rock density data was available, and no 3-dimensional geological domains or surfaces were supplied by Coppermoly to H&SC.

H&SC performed limited validation of the data supplied by Coppermoly, however they did not detect any obvious problems likely to significantly impact the Mineral Resource estimates. H&SC determined that the drill hole database for Simuku is satisfactory for resource estimation purposes.

A total of 40 drill holes were used to estimate the Simuku Mineral Resource. The details of the drill holes are given in Table 1. Of the 40 drill holes used in the Mineral Resource estimation, 37 were diamond drill holes and 3 were reverse circulation (“RC”) drill holes. The diamond drill holes were standard tube HQ (63.5mm internal diameter), with some minor intervals of PQ (85mm internal diameter) at the top of the holes.

Table 1 - Drilling Details for the Simuku Area

Company	**Drill Type **	No Holes	Metres	Year
Esso	Diamond	4	625	1983
New Guinea Gold(NGG)	Diamond	5	617	1996 -1997
NGG	Diamond	2	170.9	2002
COY/NGG	Diamond	17	4364.9	2006 -2008
Barrick	Diamond	9	4,937	2010-2012
	Sub-total	37	10,723
NGG	Reverse Circulation	3	241	1996 -1997
	Total	40	10,964

Documentation of the sample processing and analytical procedures used for the earlier drilling phases is limited. The Barrick sampling processing is described below, and it is understood that the early drilling phases had similar procedures. The Barrick procedure involved the drill samples being transported to the Sumuku camp site where the drill holes were geologically and geotechnically logged and photographed. Samples of the diamond drill core were collected by sawing predominantly 2m lengths and some 1m lengths of the HQ drill core in half using a diamondimpregnated circular saw blade. For the earlier 3 RC drill holes, 1m intervals of RC drill chips were split with a riffle splitter (1:3) and then combined using the riffle splitter to create 2m composite samples.

All the diamond and RC drill hole samples were crushed, pulverised and split prior to assaying at the Intertek Laboratories in Lae and Jakarta. Samples are dried to 106[o] C and crushed to 2-3 mm. RC drill samples greater than 2kg were rifle split down to 1.5kg and pulverised to 75 microns. Intertek analysed for gold using a 50g Fire Assay with Atomic Absorption Spectroscopy finish. Base metal analysis used a 4-acid digest with ICP-OES finish. Analyses returning above detection limit results were re-digested and re-analysed by ICP-OES. Molybdenum samples greater than 100ppm were check assayed using X-Ray diffraction.

No field duplicates or second-half sampling of core has not occurred during any of the drilling programmes completed at Simuku, so an assessment of sample representivity could not be undertaken.

Sample sizes are considered appropriate to the grain size and style of material being sampled as

the copper mineralisation is generally distributed fairly homogeneously throughout the core at the scale of sampling.

Drill hole section spacing is nominally 100-200m, increasing to 400m in the southern half of the Simuku Mineral Resource area. Drill hole spacing along each section is irregular due to topography but is generally similar to the section line spacing. The Mineral Resource was classified using the estimation search pass category, subject to assessment of other impacting factors such as drill hole spacing, variography, core handling and sampling procedures, QA/QC outcomes, density measurements and the geological model. The Competent Person has deemed that 200m hole spacing is appropriate for assessment of the geological and grade continuity for this type of deposit (porphyry copper) and classification of the Mineral Resource as Inferred, in accordance with the 2012 JORC Code & Guidelines.

The Simuku Mineral Resource was estimated using H&SC’s in-house GS3M modelling software with the data loaded into a Surpac block model for model validation and resource reporting. 5,210 two metre downhole composites of the assay data were used in the Resource Model; the composite data was unconstrained. The composite data was rotated to a local grid for convenience with some data visually trimmed to remove small amounts of peripheral barren material. No top cutting was applied; the coefficients of variation (1.1 for Cu and 1.3 for Au), for the relevant composite datasets, suggest that the data is not sufficiently skewed to warrant top cutting. The composite data showed reasonable correlation between gold and copper assay values. No assumptions were made regarding gold recovery.

Domaining was used for variography with Domain 1 (north of 52415mN – local grid) containing most of the drilling data, however the resource modelling was unconstrained with no hard boundaries except for topography. Geostatistics on the composite data were performed for copper, gold and molybdenum. Variography was poor to modest, mainly due to the relatively wide spaced drill holes, topography and the nature of the mineralisation.

The Ordinary Kriging method was used for the grade interpolation with the maximum extrapolation from nearest drill hole being 200m. The search ellipse was orientated to follow a nominal N-S local grid strike and the vertical dipping nature of the porphyry intrusive. A 3-pass search strategy was used with expanding search radii and reducing number of minimum data. The search parameters for Pass 1 were 50m by 100m by 100m (X, Y & Z), with a 100% expansion for Passes 2 & 3 and a 10[o] anti-clockwise search rotation about the Z axis. The parent block size was 25m (east) by 25m (north) by 15m (elevation) with no sub-blocking.

Model validation consisted of visual comparison of block grades and composite values, which indicated a reasonable match. Comparison of summary statistics for block grades and composite values indicated the composite mean is greater than the block grade mean for both copper and gold. No deleterious elements or acid mine drainage issues were factored into the Mineral Resource estimation.

The cut-off grade was set as 0.2% copper with no account for gold. The cut-off grade at which the Mineral Resource is quoted reflects the geometry of the deposit and the intended bulk-mining approach. The same or similar copper cut-off grades have been used for other porphyry deposits in Papua New Guinea.

It is anticipated that mining of the Simuku Mineral Resource would be by open pit, bulk tonnage methods, as is commonly used to mine porphyry coper deposits in Papua New Guinea. No metallurgical test work has been completed on the Simuku copper-molybdenum-gold

mineralisation, hence no modifying factors according for metallurgical issues were used in the Simuku Mineral Resource estimation. There has been no density data measured for the Simuku deposit. However, an average dry density value of 2.57t/m[3] was assigned for all oxidised and fresh rock types based upon the Competent Person experience and literature research.

Simuku Mineral Resource Statement

Coppermoly informed the Competent Person that the Simuku deposit, if mined, will likely be mined in a bulk mining, open pit scenario and the Mineral Resource was classified according to this assumption. Table 2 shows the pass number conversion to resource category. As a result, the Mineral Resource was classified as Inferred in accordance with the 2012 JORC Code & Guidelines.

Table 2 - Resource Classification

Pass No	Resource Category
1	Inferred
2	Inferred
3	Inferred

Table 3 and Figure 4 details the Simuku Mineral Resource, which has been reported at a 0.2% copper cut off above a local grid northing of 52145mN. The cut off grade is consistent with similar bulk mining porphyry copper projects located in PNG.

Table 3 - Simuku Mineral Resource Statement

Category	Mt	Cu %	**Aug/t **	**Ag ppm **	**Moppm **	Cut-Off
Inferred	373.6	0.31	0.05	2.1	59	0.2% Cu

Figure 4 - Grade-Tonnage Curves for Domain 1

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Simuku Grade Tonnage Curves
800.0 1.00
0.90
700.0
0.80
600.0
0.70
500.0
0.60
400.0 0.50
Mt
0.40
300.0 Cu %
0.30
200.0
0.20
100.0
0.10
0.0 0.00
0 0.2 0.4 0.6 0.8 1
Copper Cut Off grade %
Million Tonnes Copper Grade %
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Figure 5 illustrates the copper block grade distribution for the Simuku Mineral Resource as an oblique 3-D view.

Figure 5 - Copper Block Grade Distribution for the Simuku Mineral Resource

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400m
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Exploration Potential

The Simuku Mineral Resource is open at its northern extremity, both along strike and down plunge to the north (black ellipse on Figure 6). Other areas of potential to expand the Mineral Resource may exist around the individual drill holes, south of the Domain 1 boundary, which contain low grade copper mineralisation but, in an area, where the drill holes are very widely spaced (red ellipses on Figure 6).

Coppermoly’s exploration strategy is to investigate areas adjacent to the Simuku Mineral Resource for similar styles of mineralisation in order to expand the overall Mineral Resource. Recent geophysical studies completed by the Company have outlined target areas in close proximity to the Simuku Mineral Resource for follow up exploration.

Modelling of IP survey data revealed multiple anomalous chargeability and conductivity responses which correlate strongly with known sulphide occurrences (Figure 7). Follow up work may involve confirming and extending the historical surface geological mapping and geochemistry, especially on structural features, in order to delineate the most prospective drill sites.

Figure 6 - Simuku Mineral Resource Expansion Potential

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(oblique view down to local grid north east)

Figure 7 – Target Zones Adjacent to the Simuku Mineral Resource

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(Colour image is chargeable zones from the IP data over a background of the Lidar elevation model. Solid red line is the outline of the Simuku Mineral Resource at a 0.2% Cu cut-off)

This announcement was authorised by the Managing Director of Coppermoly Limited, Dr Wanfu Huang.

For further information please contact:

Dr Wanfu Huang, Managing Director

Telephone: +61 7 3217 7544 Email: info@coppermoly.com.au

- END -

Competent Persons Statement

The information in this announcement that relates to Exploration Results is based on information compiled by Dr Peter Victor Crowhurst, who is a Member and Registered Professional Geologist with the Australian Institute of Geoscientists (Member# 5269). Dr Crowhurst has sufficient experience which is relevant to the style of mineralisation under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Crowhurst is the full time Exploration Manager at Coppermoly and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in the report to which this statement is attached that relates to Mineral Resources for the Simuku Porphyry Copper Deposit is based on information compiled by Mr Simon Tear, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Tear is a Director of H&SC Consultants Pty Ltd and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Tear consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Appendix 1 – Drill Hole Data Used in Simuku Mineral Resource Estimation

Simuku Project - Locations of Drill Holes Used to Estimate Simuku Mineral Resource (2020)

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Hole
Hole
Hole Elevation Hole Dip Azimuth
Hole ID Prospect Depth Tenement North (m) East (m) Projection Company
Type (m) (Degrees) (Magnetic
(m)
North)
BWNBDD0014 SIMUKU DD 1004.9 EL1077 9367670 169940 368.35 AGD66_56 -60 310 BARRICK
BWNBDD0015 SIMUKU DD 686.4 EL1077 9367500 169848 338.079 AGD66_56 -60 295 BARRICK
BWNBDD0019 SIMUKU DD 107.3 EL1077 9368203 169969 358.814 AGD66_56 -61.3 300.2 BARRICK
BWNBDD0019A SIMUKU DD 314.9 EL1077 9368203 169969 358.814 AGD66_56 -62.7 299.8 BARRICK
BWNBDD0020 SIMUKU DD 288 EL1077 9367459 169456 289.872 AGD66_56 -61 298 BARRICK
SMD01 SIMUKU DD 174.5 EL1077 9367792.659 169624.8291 373.764 AGD66_56 -70 115 COPPERMOLY
SMD03 SIMUKU DD 150.2 EL1077 9367944.999 169681.9978 329.346 AGD66_56 -70 115 COPPERMOLY
SMD04 SIMUKU DD 150 EL1077 9367564.025 169687.8853 397.791 AGD66_56 -90 0 COPPERMOLY
SMD17 SIMUKU DD 177.3 EL1077 9367788.904 169702.6 388.882 AGD66_56 -90 0 COPPERMOLY
SMD18 SIMUKU DD 300 EL1077 9368287.173 169713.345 299.279 AGD66_56 -60 30 COPPERMOLY
SMD19 SIMUKU DD 346.1 EL1077 9368166.427 169711.478 234.954 AGD66_56 -60 37 COPPERMOLY
SMD20 SIMUKU DD 375.9 EL1077 9367996.761 169796.24 307.531 AGD66_56 -90 0 COPPERMOLY
SMD21 SIMUKU DD 365 EL1077 9367402.198 169612.468 287.37 AGD66_56 -60 287 COPPERMOLY
SMD22 SIMUKU DD 261.4 EL1077 9367814.438 169467.948 346.045 AGD66_56 -90 0 COPPERMOLY
SMD23 SIMUKU DD 100.5 EL1077 9367728.002 169021.998 278.073 AGD66_56 -90 0 COPPERMOLY
SMD24 SIMUKU DD 307.4 EL1077 9368784.173 168892.161 211.474 AGD66_56 -50 107 COPPERMOLY
SMD25 SIMUKU DD 300 EL1077 9368242 169587 216.348 AGD66_56 -60 37 COPPERMOLY
SMD26 SIMUKU DD 321 EL1077 9368165.199 169713.014 235.252 AGD66_56 -60 210 COPPERMOLY
SMD27 SIMUKU DD 325.8 EL1077 9367658.896 169659.91 394.179 AGD66_56 -75 107 COPPERMOLY
SMD28 SIMUKU DD 97.3 EL1077 9367985.658 169857.042 270.771 AGD66_56 -60 52 COPPERMOLY
SMD29 SIMUKU DD 348.2 EL1077 9367483.472 169562.434 308.196 AGD66_56 -60 280 COPPERMOLY
SMD30 SIMUKU DD 348.2 EL1077 9367307.041 169681.686 259.089 AGD66_56 -60 287 COPPERMOLY
SMD31 SIMUKU DD 225.2 EL1077 9368002.421 169508.608 258.41 AGD66_56 -60 100 COPPERMOLY
SMH05 SIMUKU DD 100 EL1077 9367745.469 169909.7983 351.668 AGD66_56 -90 0 COPPERMOLY
SMH06 SIMUKU DD 100 EL1077 9367576.483 169892.2346 350.875 AGD66_56 -90 0 COPPERMOLY
SMH07 SIMUKU DD 63 EL1077 9368184.821 169736.1072 244.73 AGD66_56 -55 126 COPPERMOLY
SMH08 SIMUKU RC 66 EL1077 9367623.713 169791.2556 372.341 AGD66_56 -90 0 COPPERMOLY
SMH09 SIMUKU RC 93 EL1077 9367622.713 169792.2534 371.59 AGD66_56 -90 0 COPPERMOLY
SMH10 SIMUKU RC 82 EL1077 9367569.075 169694.668 398.362 AGD66_56 -90 0 COPPERMOLY
SMH11 SIMUKU DD 77 EL1077 9368188.83 169741.434 248.92 AGD66_56 -90 0 COPPERMOLY
SMH12 SIMUKU DD 276.6 EL1077 9368113.425 169827.488 265.07 AGD66_56 -75 316 COPPERMOLY
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Selected Down Hole drill Intercepts for Simuku at a nominal 0.2% Cu Cut Off

Hole	**From (m) **	**To (m) **	**Interval (m) **	**Cu (%) **	**Au (g/t) **	**Ag (ppm) **	Mo (ppm)
BWNBDD0004 BWNBDD0005 BWNBDD0014 BWNBDD0014 BWNBDD0015 BWNBDD0015 BWNBDD0015 BWNBDD0015 BWNBDD0016 BWNBDD0016 BWNBDD0020 SMD01 SMD02 SMD02 SMD03 SMD04 SMD13 SMD13 SMD14 SMD14 SMD17 SMD18 SMD18 SMD19 SMD19 SMD20 SMD20 SMD21 SMD21 SMD22 SMD24 SMD25 SMD26 SMD27 SMD29 SMD30 SMD31 SMH07 SMH08 SMH09 SMH10 SMH11 SMH12	171 354 202 817 163 231 394 451 286 409 11 135.2 10.85 66.3 17.15 27.6 18 65 23 77 7 2 152 8 264 8 68 1.5 73 5 76 39 0 24 27 12 124 1 0 0 26 0 3	178 404 703 993.1 180 337 408 498 312 485 91 173.7 27 83.85 150.2 134.7 35 70.8 59 85 175 109 238 209 288 18 375.9 34 362.8 18 104 300 320 325.8 275 176 225.2 61 66 93 82 77 276.6	7 50 501 176.1 17 106 14 47 26 76 80 38.5 16.15 17.55 133.05 107.1 17 5.8 36 8 168 107 86 201 24 10 307.9 32.5 289.8 13 28 261 320 301.8 248 164 101.2 60 66 93 56 77 273.6	0.3 0.25 0.3 0.27 0.34 0.35 0.31 0.32 0.26 0.35 0.24 0.28 0.29 0.26 0.39 0.4 0.29 0.25 0.34 0.31 0.25 0.47 0.31 0.48 0.41 0.25 0.28 0.48 0.28 0.45 0.31 0.27 0.44 0.37 0.38 0.35 0.44 0.48 0.23 0.23 0.56 0.49 0.33	0.05 0.03 0.04 0.05 0.05 0.02 0.02 0.01 0.02 0.03 0.05 0.07 0.02 0.02 0.06 0.03 0.02 0.02 0.02 0.01 0.05 0.07 0.05 0.06 0.06 0.05 0.04 0.12 0.06 0.08 0.06 0.04 0.06 0.06 0.08 0.06 0.06 0.12 0.12 0.11 0.1 0.11 0.06	3.9 2 2.6 2.6 2.4 3 2.2 2.6 2.5 3.5 2 1.1 0.7 0.6 3.4 1.1 3.4 2.4 2.5 2.7 1.9 2 1.8 2.3 2.3 2.3 2.4 3.3 1.8 2.6 1.8 2.1 2.6 1.5 2.5 2.1 2.5 2 1.2 1 2 2.1 0.25	156 23 66 102 64 42 147 234 30 111 56 34 91 63 23 21 222 298 199 202 24 94 39 75 28 27 50 29 48 63 53 51 66 37 63 86 81 65 16 17 32 86 44

APPENDIX 2

JORC Table 1

JORC Code, 2012 Edition – Table 1 Simuku Deposit

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary	Commentary
Sampling	• Nature and quality of sampling (eg cut channels, random chips,	•	Predominantly diamond drilling HQ Core
techniques	or specific specialised industry standard measurement tools	•	Holes generally drilled steep to moderately angled to the WNW plus
	appropriate to the minerals under investigation, such as down		some orientations.
	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	• • • •	Consistency of sampling method maintained. Drill core was sampled on site All drill samples were dispatched for assay to a recognised independent laboratory. Diamond core drilling was used to obtain nominal 1 m (Barrick drill holes) or a combination of 1 and 2 m (Coppermoly drill holes) samples of half core, with sample intervals adjusted to geological contacts where necessary.
	would be relatively simple (eg ‘reverse circulation drilling was	•	RC samples were split with a cone splitter over 2m intervals.
	used to obtain 1 m samples from which 3 kg was pulverised to	•	Sampling technique is considered appropriate for deposit type
	produce a 30 g charge for fire assay’). In other cases more	•	There is a variable amount of detail on core handling and sampling
	explanation may be required, such as where there is coarse		procedures for the different drilling campaigns.
	gold that has inherent sampling problems. Unusual
	commodities or mineralisation types (eg submarine nodules)
	may warrant disclosure of detailed information.
Drilling	• Drill type (eg core, reverse circulation, open-hole hammer,	•	Diamond drilling mainly HQ core size totalling
techniques	rotary air blast, auger, Bangka, sonic, etc) and details (eg core		o Phase 1 Esso 1983 4 diamond drill holes (DD) for 625m
	diameter, triple or standard tube, depth of diamond tails, face-		o Phase 2 New Guinea Gold (NGG) 1996 to 1997 5 DD (617m & 3
	sampling bit or other type, whether core is oriented and if so, by		RC 241m
	what method, etc).		o Phase 3 NGG 2002 2DD for 170.9m
			o Phase 4 Coppermoly (COY)/NGG 2006 to 2008 17 DD for
			4,364.9m
			o Phase 5 Barrick 2010 to 2012 9 DD for 4,937m
			o Drilling technique is considered most appropriate for deposit
			type

Criteria	JORC Code explanation	Commentary	Commentary
		•	Diamond core drilling, standard tube HQ (63.5mm diameter), with
			some PQ diameter at top of holes.
		•	Barrick holes were orientated.
		•	Reverse Circulation Drilling used a 4.25 inch face sampling hammer
Drill sample	• Method of recording and assessing core and chip sample	•	Core recovery was determined by direct measurement of the length
recovery	recoveries and results assessed.		of recovered core within each core run.
	• Measures taken to maximise sample recovery and ensure	•	Core recovery for diamond core averaged greater than 90% within
	representative nature of the samples.		mineralised zones.
	• 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.	• •	No data exists for RC recovery, although it has been reported as having been collected The relationship between recovery and grade was assessed by
			plotting recovery against the grade of samples collected. No
			relationship exists between core recovery and grade of copper or
			gold.
Logging	• Whether core and chip samples have been geologically and	•	All core and RC chips were geologically logged, with details of
	geotechnically logged to a level of detail to support appropriate		lithology, alteration, weathering and mineralisation recorded in a
	Mineral Resource estimation, mining studies and metallurgical		manner considered by the Competent Person to be adequate for the
	studies.		purposes of Mineral Resource Estimation.
	• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections	• •	Barrick also relogged older holes into a common format Geotechnical logging is restricted to RQD measurements on recovered core.
	logged.	•	Core logging was both qualitative and quantitative.
		•	Core from all of the COY and Barrick drill holes were photographed
			wet and dry prior to cutting. There are no photos for drilling prior to
			2008.
Sub-sampling	• If core, whether cut or sawn and whether quarter, half or all	•	Drilling samples were transported to camp site, logged &
techniques	core taken.		photographed
and sample	• If non-core, whether riffled, tube sampled, rotary split, etc and	•	Sub-samples from diamond core were collected by sawing 1m or 2m
preparation	whether sampled wet or dry.		(dominant) of HQ core in half using a diamond-impregnated circular
	• For all sample types, the nature, quality and appropriateness of		saw blade.
	the sample preparation technique.	•	1m RC samples were split with a riffle splitter(1:3)and then

Criteria	JORC Code explanation	Commentary	Commentary
	• Quality control procedures adopted for all sub-sampling stages		combined using the riffle splitter to create 2m composite samples.
	to maximise representivity of samples.	•	All samples were sent to the Intertek laboratory in Lae, PNG for
	• 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	•	crushing, pulverised and splitting into smaller fractions to be sent for assay. Samples are dried to 106oC and crushed to 2-3 mm. Samples greater
	material being sampled.		than 2kg are rifle split down to 1.5kg and pulverised to 75 microns.
		•	The final 300g sized pulp samples were then sent to Intertek
			laboratories in Jakarta, Indonesia for geochemical analysis. Intertek
			analyse for gold using a 50g Fire Assay with Atomic Absorption
			Spectroscopy finish.
		•	Sample preparation procedures were not observed by the Competent
			Person and could not be verified. There is some uncertainty that the
			same sampling practice was maintained throughout all drilling
			campaigns.
		•	No field duplicates/second-half sampling of core has occurred during
			any drilling programme so an assessment of sample representivity
			cannot be undertaken.
		•	Sample sizes are considered appropriate to the grain size and style of
			material being sampled: copper mineralisation is generally
			distributed fairly homogeneously throughout the core at the scale of
			sampling.
		•	Sampling procedures were in line with industry standards of the day
			(as documented in historic reports);
		•	All sampling methods are deemed appropriate for the style of
			mineralisation being assessed
Quality of	• The nature, quality and appropriateness of the assaying and	•	Barrick Analytical Process:
assay data	laboratory procedures used and whether the technique is		o Base metal analysis used a 4-acid digest with ICP-OES finish.
and	considered partial or total.		Analyses returning above detection limit results were re-digested
laboratory	• For geophysical tools, spectrometers, handheld XRF		and re-analysed by ICP-OES. Gold analysis used a 50g charge for
tests	instruments, etc, the parameters used in determining the		Fire Assay with AAS finish. Both techniques are considered to
	analysis including instrument make and model, reading times,		provide total assays for metal content.

Criteria	JORC Code explanation	Commentary	Commentary
	calibrations factors applied and their derivation, etc.		o Standards and blanks for copper and gold, were sourced
	• Nature of quality control procedures adopted (eg standards,		reputable Australian suppliers and were inserted into sample
	blanks, duplicates, external laboratory checks) and whether		batches by onsite geologists
	acceptable levels of accuracy (ie lack of bias) and precision		o Acceptable levels of accuracy have been established by the
	have been established.		analysis of standards, and no contamination was detected by
			analysis of blanks.
			o Precision levels have not been assessed.
			o Intertek Laboratories maintain a rigorous Quality Management
			System.
		•	Pre-Barrick Analytical Process:
			o Elements were assayed with ICPAES Finish. Copper values greater
			than 1000ppm are re-assayed using a multi acid digest
			(hydrochloric, nitric, perchloric and hydrofluoric acid) to leach
			out the copper with an ICP finish.
			o Analysis for gold used a 50g Fire Assay with Atomic Absorption
			Spectroscopy finish.
			o Molybdenum samples greater than 100ppm were check assayed
			using X-Ray diffraction. Intertek laboratories have an ISO 17025
			accreditation.
			o No QAQC data for Phases 1 to 3 work. Reports state that QAQC
			outcomes were “satisfactory”
		•	Esso PNG samples were analysed by Pilbara Laboratories (Niugini) Pty
			Ltd with AF and AAS. Samples collected from 2006 by NGG/Kanon,
			Coppermoly and Barrick were crushed, pulverised and split prior to
			assaying at Intertek Laboratories in Lae and Jakarta
		•	Analytical methods are deemed appropriate.
Verification	• The verification of significant intersections by either	•	Significant intersections have not been validated by independent
of sampling	independent or alternative company personnel.		personnel.
and assaying	• The use of twinned holes.	•	Primary sampling data is recorded on paper log sheets and
	• Documentation ofprimary data, data entry procedures, data		transferred to a spreadsheet and then to a central relational database

Criteria	JORC Code explanation	Commentary	Commentary
	verification, data storage (physical and electronic) protocols.		(MS Access). Assay results are obtained electronically from the assay
	• Discuss any adjustment to assay data.		laboratory, uploaded to the database and matched with the
			appropriate sample intervals using a database query.
		•	No adjustments have been made to any assay data.
		•	No twinned holes
Location of	• Accuracy and quality of surveys used to locate drill holes (collar	•	Drill collar locations were surveyed using hand-held GPS with a
data points	and down-hole surveys), trenches, mine workings and other		horizontal accuracy of ±3m and a vertical accuracy ±9-12m.
	locations used in Mineral Resource estimation.	•	Exploration uses coordinates in Australian Geodetic Datum 1966
	• Specification of the grid system used.		(AGS66), zone 56.
	• Quality and adequacy of topographic control.	•	Topographic control is very good and is provided by a LiDAR survey.
			Drill collar elevations have been corrected from their GPS coordinates
			to match the LiDAR surveyed surface. Elevation error ranged +/-25m
			with an overall average difference of 0.5m.
		•	Downhole surveys for the Barrick drilling were taken using a single
			shot Eastman camera every 30m
		•	Earlier drilling both diamond and RC has no recorded downhole
			surveys
		•	Location methods used to determine accuracy of drill hole collars is
			considered appropriate
Data spacing	• Data spacing for reporting of Exploration Results.	•	Drill hole section spacing is nominally 100/200m increasing to 400m
and	• Whether the data spacing and distribution is sufficient to		in the southern half of the area.
distribution	establish the degree of geological and grade continuity	•	On section spacing is irregular due to topography but is generally
	appropriate for the Mineral Resource and Ore Reserve		similar to the section line spacing.
	estimation procedure(s) and classifications applied. • Whether sample compositing has been applied.	•	200m spacing is appropriate for assessment of geological and grade continuity for this type of deposit.
		•	Drilling depth is generally to 400m below surface
		•	No sample compositing.
Orientation of	• Whether the orientation of sampling achieves unbiased	•	Moderate to steep dip drilling to WSW at right angles to
data in	sampling of possible structures and the extent to which this is		mineralisation
relation to	known, considering the deposit type.
	• If the relationship between the drilling orientation and the

Criteria	JORC Code explanation	Commentary	Commentary
geological	orientation of key mineralised structures is considered to have	•	Drill hole angle relative to mineralisation has been a compromise to
structure	introduced a sampling bias, this should be assessed and		accommodate the vertical nature and strike dimensions of a wide
	reported if material.		intrusive body
		•	Drilling orientations are appropriate with no bias.
Sample	• The measures taken to ensure sample security.	•	Samples were placed in numbered calico bags and loaded into
security			wooden crates for shipment to the assay laboratory in Lae.
		•	Prior to shipment all samples were stored in the Company's secure
			exploration base in Kimbe, West New Britain Province
Audits or	• The results of any audits or reviews of sampling techniques	•	No audits or reviews have been completed.
reviews	and data.

Section 2 Reporting of Exploration Results

Section 2 Reporting of Exploration Results	Section 2 Reporting of Exploration Results
(Criteria listed in theprecedingsection also applyto this section.)
Criteria	JORC Code explanation	Commentary
Mineral	• Type, reference name/number, location and ownership including	•	The tenements lie approximately 23km southwest of the town of
tenement and	agreements or material issues with third parties such as joint		Kimbe which is the capital of West New Britain Province., PNG;
land tenure	ventures, partnerships, overriding royalties, native title interests,	•	Exploration licence, EL2379, was granted by the Independent State of
status	historical sites, wilderness or national park and environmental		Papua New Guinea on September 2015 for a 2 year period. It was the
	settings.		amalgamation of 2 historical tenements. Renewal applications have
	• The security of the tenure held at the time of reporting along with		been submitted for a further 2 year period at each anniversary.
	any known impediments to obtaining a licence to operate in the area.	•	The tenement covers 122.72 km2 (36 sub-blocks) and is held by
			Copper Quest (PNG) Ltd which is a wholly owned subsidiary of
			Coppermoly Limited.
		•	Barrick still have a 28% interest in the licence.
		•	The tenement lies within an area owned bytraditional landowners

Criteria	JORC Code explanation	Commentary	Commentary
			whom support the project through the government regulated
			warden hearing process.
		•	The area is relatively remote with poor land access
Exploration	• Acknowledgment and appraisal of exploration by other parties.	•	The project area has a long history of intermittent exploration since
done by other			the discovery of mineralization in the 1960’s.
parties		•	Companies that have previously held the ground or been involved in
			joint ventures include; CRA, BHP-Utah, Nord Resources, Esso, City
			Resources, Placer, Cyprus-Amax, Macmin, Coppermoly and New
			Guinea Gold Ltd.
		•	Multiple drilling campaigns have been completed within the
			tenement
		•	A variety of surface geochemistry techniques and ground/airborne
			geophysical surveys; surface mapping; geological studies
		•	Previous exploration has been completed to industry standard at the
			time
Geology	• Deposit type, geological setting and style of mineralisation.	•	Copper-Molybdenum Porphyry style.
		•	Volcanic arc, calc-alkaline intrusives and volcanics.
		•	Quartz-feldspar (dacitic) porphyry is the main host of mineralization
			with chalcopyrite the primary sulphide with minor molybdenite and
			pyrite
		•	Overlain by a variable thickness supergene zone with more common
			oxides and also including secondary chalcocite.

==> picture [745 x 477] intentionally omitted <==

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|||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Criteria|JORC Code explanation|Commentary|
|Drill hole|•|A summary of all information material to the understanding of the|Simuku Project - Locations of Drill Holes Used to Estiamte Simuku Mineral Resource (2020)|
|Information|exploration results including a tabulation of the following|Hole|Hole|
|information for all Material drill holes:|Hole ID|Prospect|TypeHole|Depth (m)|Tenement|North (m)|East (m)|Elevation (m)|Projection|(Degrees)Hole Dip|(Magnetic Azimuth|Company|
|o|easting and northing of the drill hole collar|BWNBDD0014|SIMUKU|DD|1004.9|EL1077|9367670|169940|368.35|AGD66_56|-60|North)310|BARRICK|
|o|elevation or RL (Reduced Level – elevation above sea level in|BWNBDD0015BWNBDD0019|SIMUKUSIMUKU|DDDD|686.4107.3|EL1077EL1077|93675009368203|169848169969|338.079358.814|AGD66_56AGD66_56|-61.3-60|300.2295|BARRICKBARRICK|
|metres) of the drill hole collar|BWNBDD0019ABWNBDD0020|SIMUKUSIMUKU|DDDD|314.9288|EL1077EL1077|93682039367459|169969169456|358.814289.872|AGD66_56AGD66_56|-62.7-61|299.8298|BARRICKBARRICK|
|o|dip and azimuth of the hole|SMD01SMD03|SIMUKUSIMUKU|DDDD|174.5150.2|EL1077EL1077|9367792.6599367944.999|169624.8291169681.9978|373.764329.346|AGD66_56AGD66_56|-70-70|115115|COPPERMOLYCOPPERMOLY|
|SMD04|SIMUKU|DD|150|EL1077|9367564.025|169687.8853|397.791|AGD66_56|-90|0|COPPERMOLY|
|o|down hole length and interception depth|SMD17|SIMUKU|DD|177.3|EL1077|9367788.904|169702.6|388.882|AGD66_56|-90|0|COPPERMOLY|
|SMD18|SIMUKU|DD|300|EL1077|9368287.173|169713.345|299.279|AGD66_56|-60|30|COPPERMOLY|
|o|hole length.|SMD19|SIMUKU|DD|346.1|EL1077|9368166.427|169711.478|234.954|AGD66_56|-60|37|COPPERMOLY|
|SMD20|SIMUKU|DD|375.9|EL1077|9367996.761|169796.24|307.531|AGD66_56|-90|0|COPPERMOLY|
|•|If the exclusion of this information is justified on the basis that the|SMD21|SIMUKU|DD|365|EL1077|9367402.198|169612.468|287.37|AGD66_56|-60|287|COPPERMOLY|
|SMD22|SIMUKU|DD|261.4|EL1077|9367814.438|169467.948|346.045|AGD66_56|-90|0|COPPERMOLY|
|information is not Material and this exclusion does not detract from|SMD23|SIMUKU|DD|100.5|EL1077|9367728.002|169021.998|278.073|AGD66_56|-90|0|COPPERMOLY|
|SMD24|SIMUKU|DD|307.4|EL1077|9368784.173|168892.161|211.474|AGD66_56|-50|107|COPPERMOLY|
|the understanding of the report, the Competent Person should clearly|SMD25|SIMUKU|DD|300|EL1077|9368242|169587|216.348|AGD66_56|-60|37|COPPERMOLY|
|SMD26|SIMUKU|DD|321|EL1077|9368165.199|169713.014|235.252|AGD66_56|-60|210|COPPERMOLY|
|explain why this is the case.|SMD27SMD28|SIMUKUSIMUKU|DDDD|325.897.3|EL1077EL1077|9367658.8969367985.658|169857.042169659.91|394.179270.771|AGD66_56AGD66_56|-75-60|10752|COPPERMOLYCOPPERMOLY|
|SMD29|SIMUKU|DD|348.2|EL1077|9367483.472|169562.434|308.196|AGD66_56|-60|280|COPPERMOLY|
|SMD30|SIMUKU|DD|348.2|EL1077|9367307.041|169681.686|259.089|AGD66_56|-60|287|COPPERMOLY|
|SMD31|SIMUKU|DD|225.2|EL1077|9368002.421|169508.608|258.41|AGD66_56|-60|100|COPPERMOLY|
|SMH05|SIMUKU|DD|100|EL1077|9367745.469|169909.7983|351.668|AGD66_56|-90|0|COPPERMOLY|
|SMH06|SIMUKU|DD|100|EL1077|9367576.483|169892.2346|350.875|AGD66_56|-90|0|COPPERMOLY|
|SMH07|SIMUKU|DD|63|EL1077|9368184.821|169736.1072|244.73|AGD66_56|-55|126|COPPERMOLY|
|SMH08|SIMUKU|RC|66|EL1077|9367623.713|169791.2556|372.341|AGD66_56|-90|0|COPPERMOLY|
|SMH09|SIMUKU|RC|93|EL1077|9367622.713|169792.2534|371.59|AGD66_56|-90|0|COPPERMOLY|
|SMH10|SIMUKU|RC|82|EL1077|9367569.075|169694.668|398.362|AGD66_56|-90|0|COPPERMOLY|
|SMH11|SIMUKU|DD|77|EL1077|9368188.83|169741.434|248.92|AGD66_56|-90|0|COPPERMOLY|
|SMH12|SIMUKU|DD|276.6|EL1077|9368113.425|169827.488|265.07|AGD66_56|-75|316|COPPERMOLY|
|Data|•|In reporting Exploration Results, weighting averaging techniques,|•|A selection of downhole drill intercepts have been included|
|aggregation|maximum and/or minimum grade truncations (eg cutting of high|relevant to the proposed bulk mining method. The cut off was a|
|methods|grades) and cut-off grades are usually Material and should be stated.|nominal 0.2% copper (no gold or molybdenum impacts included)|
|•|Where aggregate intercepts incorporate short lengths of high-grade|for broad zones of mineralisation; some low grade and waste|
|results and longer lengths of low-grade results, the procedure used|zones were included. The average grade was calculated using|
|for such aggregation should be stated and some typical examples of|length weighting and no top cut was applied.|
|such aggregations should be shown in detail.|•|Any higher-grade zones were generally very limited within the|
|•|The assumptions used for any reporting of metal equivalent values|broad interval and as such would have no significant bias on the|
|should be clearly stated.|average grade.|
|•|Metal equivalents are not reported.|
|Relationship|•|These relationships are particularly important in the reporting of|•|The relationship between the drill holes angles and the|
|between|Exploration Results.|mineralisation is not definitively known.|
|mineralisation|•|If the geometry of the mineralisation with respect to the drill hole|

----- End of picture text -----

Criteria	JORC Code explanation	Commentary	Commentary
widths and	angle is known, its nature should be reported.
intercept lengths	• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true _width not known’). _	•	Drill hole intersections given are down hole lengths and the true intersections widths are not known.

• Criteria JORC Code explanation 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.

Commentary

==> picture [325 x 413] intentionally omitted <==

Criteria JORC Code explanation Commentary

Criteria	JORC Code explanation	Commentary	Commentary
Balanced	• Where comprehensive reporting of all Exploration Results is not	•	All drill hole data used to compile the Mineral Resource is given in
reporting	practicable, representative reporting of both low and high grades		Appendix 1
	and/or widths should be practiced to avoid misleading reporting of
	Exploration Results.
Other	• Other exploration data, if meaningful and material, should be	•	COY has recently completed twenty-one (21) line kilometres of
substantive	reported including (but not limited to): geological observations;		combined 2D Dipole-Dipole (DP-DP) and Pole-Dipole Induced
exploration	geophysical survey results; geochemical survey results; bulk samples		Polarisation (PDP-IP) survey over high ranked VTEM anomalies.
data	– size and method of treatment; metallurgical test results; bulk	•	Quality control was checked by an Independent Geophysics
	density, groundwater, geotechnical and rock characteristics;		Consultant and data was modelled in 2D and 3D using Geosoft
	potential deleterious or contaminating substances.		software
Further work	• The nature and scale of planned further work (eg tests for lateral	•	COY’s exploration strategy is to investigate peripheral areas to the
	extensions or depth extensions or large-scale step-out drilling).		Simuku deposit for a similar style of mineralisation in order to expand
	• Diagrams clearly highlighting the areas of possible extensions,		the overall resource at Simuku.
	including the main geological interpretations and future drilling	•	Follow up work involves confirming and extending the historical
	areas, provided this information is not commercially sensitive.		surface geological mapping and geochemistry, especially on
			structural features to further delineate the mostproductive drill sites.

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	Commentary
Database	• Measures taken to ensure that data has not been corrupted by, for	•	Data collated by Coppermoly Ltd
integrity	example, transcription or keying errors, between its initial collection	•	Data supplied as an Access database with indexed fields.
	and its use for Mineral Resource estimation purposes.	•	Additional error checking using the Surpac database audit option.
	• Data validation procedures used.	•	Manual checking of logging codes for consistency.
		•	Manual checking of assay grades for plausibility.
		•	Data converted to a local orthogonal N-S grid
Site visits	• Comment on any site visits undertaken by the Competent Person and	•	Peter Crowhurst, Exploration Manager for Coppermoly in numerous
	the outcome of those visits.		site visits has reviewed all drill core and RC chips, and all geological
	• If no site visits have been undertaken indicate why this is the case.		mapping and interpretation.
		•	A site visit to the area was completed by Simon Tear in 2014. This
			comprised a review of drill core for the project. He has also
			completed a due diligence exercise for the project for another client
Geological	• Confidence in (or conversely, the uncertainty of ) the geological	•	Simple porphyry copper model exposed at surface with an elongate
interpretation	interpretation of the mineral deposit.		strike in the NNE –SSW direction
	• Nature of the data used and of any assumptions made.	•	No hard boundaries designed
	• The effect, if any, of alternative interpretations on Mineral Resource	•	No supergene blanket zone is interpreted to exist
	estimation.	•	An oxidation surface was designed based on the geological logging of
	• The use of geology in guiding and controlling Mineral Resource		the drill holes
	estimation.
	• The factors affecting continuity both of grade and geology.
Dimensions	• The extent and variability of the Mineral Resource expressed as	•	1500m by 400m to an average depth of 400m with a maximum depth
	length (along strike or otherwise), plan width, and depth below		of 600m. One hole extended mineralisation to the 540mRL
	surface to the upper and lower limits of the Mineral Resource.	•	Outcropping at surface with a range of elevation from 430 to 250mRL
		•	Mineralisation is relatively uniform; typical for the type of deposit.
Estimation	• The nature and appropriateness of the estimation technique(s)	•	GS3M modelling software; Surpac block model; Orthogonal model
and	applied and key assumptions, including treatment of extreme grade		based on a local grid designed by H&SC
	values, domaining, interpolation parameters and maximum distance	•	5,210 2m downhole composites used. Data visually trimmed to
	of extrapolationfrom datapoints. If a computer assisted estimation		remove small amount ofperipheral barren material

Criteria	JORC Code explanation	Commentary	Commentary
modelling	method was chosen include a description of computer software and	•	No top cutting applied; the coefficients of variation for the relevant
techniques	parameters used.		composite datasets suggest that the data is not sufficiently skewed
	• The availability of check estimates, previous estimates and/or mine		to warrant top cutting. (coefficients of variation of 1.1 and 1.3 for Cu
	production records and whether the Mineral Resource estimate takes		& Au respectively)
	appropriate account of such data.	•	Reasonable correlation between gold and copper;
	• The assumptions made regarding recovery of by-products.	•	No assumption on gold recovery
	• Estimation of deleterious elements or other non-grade variables of	•	Domaining was used for variography with Domain 1 (north of
	economic significance (eg sulphur for acid mine drainage		52415mN) containing much more drilling data, however modelling
	characterisation).		was unconstrained
	• In the case of block model interpolation, the block size in relation to	•	Geostatistics on composite data were performed for copper, gold,
	the average sample spacing and the search employed.		silver and molybdenum.
	• Any assumptions behind modelling of selective mining units.	•	Variography was poor to modest mainly due to a lack of drilling and
	• Any assumptions about correlation between variables.		the nature of the mineralisation.
	• Description of how the geological interpretation was used to control	•	Ordinary Kriging estimation method used
	the resource estimates.	•	Maximum extrapolation from nearest drill hole is 200m
	• Discussion of basis for using or not using grade cutting or capping.	•	The search ellipse was orientated to follow a nominal strike and
	• The process of validation, the checking process used, the comparison		vertical nature of the porphyry intrusive. A 3-pass search strategy was
	of model data to drill hole data, and use of reconciliation data if		used with expanding search radii and reducing number of minimum
	available.		data.
		•	Search parameters for Pass 1 were 50m by 100m by 100m (X, Y & Z)
			with a 100% expansion for Passes 2 & 3; a 10osearch rotation about
			the Z axis.
		•	Minimum data 12 with 4 octants (Passes 1 & 2) decreasing to 6 data
			with 2 octants (Pass 3).
		•	Parent block size 25m (east) by 25m (north) by 15m (elevation) with
			no sub-blocking
		•	Model validation has consisted of visual comparison of block grades
			and composite values and indicated a reasonable match. Comparison
			of summary statistics for block grades and composite values has
			indicated the composite mean is greater than the block grade mean
			for both copper and gold
		•	No deleterious elements or acid mine drainage factored in
		•	Nopublished historic resource estimate

Criteria	JORC Code explanation	Commentary	Commentary
		•	Drill hole spacing along strike is 100/200m and nominally 100m on
			section.
Moisture	• Whether the tonnages are estimated on a dry basis or with natural	•	Tonnages are estimated on a dry weight basis.
	moisture, and the method of determination of the moisture content.	•	Moisture not determined.
Cut-off	• The basis of the adopted cut-off grade(s) or quality parameters	•	0.2% copper with no account for gold grades
parameters	applied.	•	Block centroid below topographic surface
		•	Above a local grid northing of 52415mN
		•	No segregation for different oxidation levels
		•	Same or similar copper cut off grades have been used for other
			porphyry deposits in PNG
		•	Fixed bulk density of 2.57t/m3
		•	The cut-off grade at which the resource is quoted reflects the
			intended bulk-mining approach.
Mining	• Assumptions made regarding possible mining methods, minimum	•	H&SC has been advised by COY that its intention is for an open pit
factors or	mining dimensions and internal (or, if applicable, external) mining		mining scenario. Minimum mining dimensions is the parent block size
assumptions	dilution. It is always necessary as part of the process of determining		of 25x25x15m.
	reasonable prospects for eventual economic extraction to consider	•	Any internal dilution has been factored in with the modelling and as
	potential mining methods, but the assumptions made regarding		such is appropriate to the block size.
	mining methods and parameters when estimating Mineral Resources
	may not always be rigorous. Where this is the case, this should be
	reported with an explanation of the basis of the mining assumptions
	made.
Metallurgical	• The basis for assumptions or predictions regarding metallurgical	•	Mineralisation is similar to the Yandera Cu-Mo porphyry deposit in
factors or	amenability. It is always necessary as part of the process of		the Highlands of PNG which has had substantial test work completed
assumptions	determining reasonable prospects for eventual economic extraction	•	No assumptions have been made for Simuku but application of the
	to consider potential metallurgical methods, but the assumptions		Yandera assumptions would be reasonable
	regarding metallurgical treatment processes and parameters made
	when reporting Mineral Resources may not always be rigorous.
	Where this is the case, this should be reported with an explanation of
	the basis of the metallurgical assumptions made.

Criteria	JORC Code explanation	Commentary	Commentary
Environmenta	• Assumptions made regarding possible waste and process residue	•	No studies have been completed by COY
l factors or	disposal options. It is always necessary as part of the process of	•	The area lies within steep terrain with restricted watercourses
assumptions	determining reasonable prospects for eventual economic extraction	•	The area is covered with dense vegetation typical of that part of PNG
	to consider the potential environmental impacts of the mining and	•	No assumptions have been made for Simuku but application of other
	processing operation. While at this stage the determination of		porphyry-type assumptions would be reasonable
	potential environmental impacts, particularly for a greenfields
	project, may not always be well advanced, the status of early
	consideration of these potential environmental impacts should be
	reported. Where these aspects have not been considered this should
	be reported with an explanation of the environmental assumptions
	made.
Bulk density	• Whether assumed or determined. If assumed, the basis for the	•	No density data supplied
	assumptions. If determined, the method used, whether wet or dry,	•	Average dry density value based on H&SC’s experience and a
	the frequency of the measurements, the nature, size and		literature search; a value of 2.57t/m3was used for all oxidised & fresh
	representativeness of the samples.		rock types
	• The bulk density for bulk material must have been measured by
	methods that adequately account for void spaces (vugs, porosity,
	etc), moisture and differences between rock and alteration zones
	within the deposit.
	• Discuss assumptions for bulk density estimates used in the evaluation
	process of the different materials.
Classification	• The basis for the classification of the Mineral Resources into varying	•	Mineral Resources have been classified on the estimation search pass
	confidence categories.		category subject to assessment of other impacting factors such as
	• Whether appropriate account has been taken of all relevant factors		drill hole spacing (variography), core handling and sampling
	(i.e. relative confidence in tonnage/grade estimations, reliability of		procedures, QAQC outcomes, density measurements, geological
	input data, confidence in continuity of geology and metal values,		model.
	quality, quantity and distribution of the data).	•	The classification appropriately reflects the Competent Person’s view
	• Whether the result appropriately reflects the Competent Person’s		of the deposit.
	view of the deposit.
Audits or	• The results of any audits or reviews of Mineral Resource estimates.	•	None known to H&SC
reviews

Criteria	JORC Code explanation	Commentary	Commentary
Discussion of	• Where appropriate a statement of the relative accuracy and	•	The geological nature of the deposit, composite/block grade
relative	confidence level in the Mineral Resource estimate using an approach		comparison and the low coefficients of variation lend themselves to
accuracy/	or procedure deemed appropriate by the Competent Person. For		a moderate level of confidence in the resource estimates.
confidence	example, the application of statistical or geostatistical procedures to	•	The lateral margins to the deposit are geologically undefined, more
	quantify the relative accuracy of the resource within stated		detailed drilling may cause either an increase or decrease in the
	confidence limits, or, if such an approach is not deemed appropriate,		resource estimate. Modelling of the unconstrained composite data
	a qualitative discussion of the factors that could affect the relative		does seem to have limited any smearing of grade beyond a
	accuracy and confidence of the estimate.		reasonable geological limit
	• The statement should specify whether it relates to global or local	•	The impact of oxidation is unknown on the likely metallurgical
	estimates, and, if local, state the relevant tonnages, which should be		recovery of copper and gold. Some metallurgical test work may
	relevant to technical and economic evaluation. Documentation		resolve this issue.
	should include assumptions made and the procedures used.	•	There may be some small-scale clustering of grade or localised
	• These statements of relative accuracy and confidence of the estimate		domains of different grade that is not detectable on the current
	should be compared with production data, where available.		100/200m spaced drilling. This is thought unlikely in a copper
			porphyry situation.
		•	The possibility of thick unconsolidated overburden is considered
			unlikely as the deposit generally lies on the crest of a hill away from
			any valley floor.
		•	The resource estimates are considered to be accurate globally, but
			there is some uncertainty in the local estimates due to the current
			drill hole spacing and a lack of geological definition.
		•	No mining of the deposit has taken place, so no production data is
			available for comparison.