CORAZON MINING LIMITED — Capital/Financing Update 2017

Mar 6, 2017

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ASX ANNOUNCEMENT 7 [th] March 2017
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OUTSTANDING COBALT METALLURGICAL RESULTS Mt Gilmore Project

• First pass flotation testwork recovers 92.2% of the cobalt, 89.0% of the copper and 75.5% of the gold in 11.1% of mass

• Concentrate graded at 7.38% cobalt, 1.29% copper and 4.1 g/t gold

• Testwork completed on reverse circulation drill chips – improvements expected

• Cobalt and copper present as sulphide minerals, gold associated with sulphide

• Viable production of a bulk concentrate for processing and separation

Corazon Mining Limited (ASX: CZN) (“Corazon” or “the Company”) is pleased to announce that preliminary metallurgical testwork completed on samples from the Mount Gilmore Project (“Project”) in New South Wales has delivered excellent results.

Simple flotation testing has yielded a recovery of 92.2% for cobalt, 89% for copper and 75.5% for gold, in a total concentrate with 11.1% mass recovery.

Testwork was conducted on a representative sample composited from reverse circulation (RC) chips from the Company’s Q4 2016 drilling program, which intersected mineralisation from near surface to depths of up to 151 metres. The composite sample contained 0.84% cobalt, 0.21% copper and 0.47 g/t gold.

These are first pass results and the Company expects that even better results will be achieved with optimisation. Due to the fine nature of the material, samples from RC chips are typically difficult to control during flotation and it can be expected that the results would improve for testwork carried out on core or rock samples.

Initial sighter-gravity concentration testwork indicated that a high-grade cobalt concentrate can be obtained from a small fraction of the feed mass. The results suggest that a 12.2% cobalt grade concentrate can be produced from only 1.31% of the initial mass. This has the potential to significantly reduce downstream equipment size and reagent consumption, improving both the Project’s CAPEX and OPEX.

Mineralogy has confirmed the Company’s expectations - cobalt is present as cobaltite, copper is present as chalcopyrite and the gold is predominantly associated with the sulphide minerals. The similar nature of the sulphide minerals, together with the gold association, has the potential to simplify the beneficiation process by the production of a bulk concentrate.

The testwork was managed by internationally recognised metallurgical consultants, METS Engineering (see competent person statement below) and independently carried out at ALS laboratories in Perth, Western Australia.

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A micrograph of the initial flotation concentrate is shown in Figure 1, below. Cobaltite is abundant, exhibiting a highly reflective, violet-steely grey colour, and other sulphides including chalcopyrite and pyrite are also abundant, exhibiting their yellow/dark gold colour.

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Figure 1: Micrograph of the flotation concentrate

These results suggest excellent potential for the production of a concentrate for hydrometallurgical processing. The metallurgical testwork was conducted on RC chip samples obtained during Corazon’s Q4 2016 Drilling Program, and was carried out by ALS metallurgy in Perth, under the supervision of METS Engineering (METS).

END .

For further information visit www.corazon.com.au or contact:

Brett Smith

James Moses

Managing Director Media & Investor Relations Corazon Mining Limited Mandate Corporate P: +61 (8) 6142 6366 M: +61 (0) 420 991 574 E: info@corazonmining.com.au E:james@mandatecorporate.com.au

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Competent Persons Statement

The information in this report that relates to Exploration Results and Targets is based on information compiled by Mr Brett Smith, B.Sc Hons (Geol), Member AusIMM, Member AIG and an employee of Corazon Mining Limited. Mr Smith has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Smith consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

The information in this report that relates to the Processing and Metallurgy for the Mount Gilmore project is based on and fairly represents information and supporting documentation compiled by Damian Connelly who is a Member of The Australasian Institute of Mining and Metallurgy and a full time employee of METS Engineering (METS). Damian Connelly has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Damian Connelly consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward Looking Statements

This announcement contains certain statements that may constitute “forward looking statement”. Such statements are only predictions and are subject to inherent risks and uncertainties, which could cause actual values, results, performance achievements to differ materially from those expressed, implied or projected in any forward looking statements.

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Table 1: Checklist of Assessment and Reporting Criteria

7[th] March, 2017

Mt Gilmore Project, New South Wales, Australia.

RC and Core Drilling – October to December 2016. Metallurgical Testwork – March 2017

Section 1 Sampling Techniques and Data

Criteria JORC Code explanation	Commentary
Sampling techniques  Nature and quality of sampling (eg 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 (eg ‘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 (eg submarine nodules) may warrant disclosure of detailed information.	Pulverised rock chip samples from drilling were collected in large PVC bag on a one metre basis. Reverse Circulation drilling utilizing a face sampling hammer provided a clean, predominantly dry sample, from which subsamples were taken for laboratory analysis and geological logging. Sub-sampling provided a nominal 2kg to 3kg sample for lab analysis. Sub-sampling was completed on a 1 metre basis, or composited on a 2 metre or 4 metre basis according to geology. Core drilling included both HQ and NQ core sizes. Sampling was completed on half-core, for intervals of a minimum of 300mm and maximum of 1 metre, determined based on geological boundaries. Industry standard sample Blanks and Standards were submitted for analysis with drill samples on a 1 in 50 basis. Field duplicate samples for analysis were taken every 50 samples. All samples were submitted to an independent certified Australian laboratory for analysis. Metallurgical testworkwas completed on composited fresh (sulphide) RC drill chips. Samples provided were the complete bulk RC reject site samples. These were then composited by METS Engineering in Perth for analysis and testwork.
Drilling techniques  Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other	Reverse circulation and core drilling was undertaken by Drillit Consulting, utilizing a rubber track mounted rig and rod holding support unit. Equipment details include:

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Table 1: Checklist of Assessment and Reporting Criteria

7[th] March, 2017

Mt Gilmore Project, New South Wales, Australia.

RC and Core Drilling – October to December 2016. Metallurgical Testwork – March 2017

Criteria	JORC Code explanation	JORC Code explanation	Commentary
		type, whether core is oriented and if so, by what method, etc).	 Multi-Drill 600 drill rig
			 6m length rods, 122 mm diameter RC drill bit, HQ and NQ core
			diametres
			 Auxiliary compressor (1150psi) and booster (900cfm)
			 Above ground sumps and water collection units.
Drill sample		Method of recording and assessing core and chip sample recoveries	Sample recovery is considered to be very good by industry standards and
recovery		and results assessed.	predominantly dry. Where drilling intersected ground water wet samples
		Measures taken to maximise sample recovery and ensure	and recovery was noted on 1m intervals in drill logs. When water inflow
		representative nature of the samples.	compromised sample quality, drilling was discontinued.
		Whether a relationship exists between sample recovery and grade
		and whether sample bias may have occurred due to preferential
		loss/gain of fine/coarse material.
Logging		Whether core and chip samples have been geologically and	Qualitative and quantitative logged was completed by a qualified and
		geotechnically logged to a level of detail to support appropriate	experienced senior geologist. RC drill holes were logged on a 1 metre
		Mineral Resource estimation, mining studies and metallurgical	basis.
		studies.
		Whether logging is qualitative or quantitative in nature. Core (or
		costean, channel, etc) photography.
		The total length and percentage of the relevant intersections logged.
Sub-sampling		If core, whether cut or sawn and whether quarter, half or all core	RC drill holes were bulked sampled on a 1 metre basis. Geological
techniques		taken.	logging determined sub-sampling, which was completed on either 1
and sample		If non-core, whether riffled, tube sampled, rotary split, etc and	metre basis, or composited individual 1 metre samples on a 2 metre or 4
preparation		whether sampled wet or dry.	metre basis.
	 	For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to	Subsampling of the bulk 1 metre samples was undertaken utilizing a spear sampling tool.
		maximise representivity of samples.	Subsampling size for laboratory submission is nominally between 2kg
		Measures taken to ensure that the sampling is representative of the in	and 3kg.
		situ material collected, including for instance results for field
		duplicate/second-half sampling.

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Table 1: Checklist of Assessment and Reporting Criteria

7[th] March, 2017

Mt Gilmore Project, New South Wales, Australia.

RC and Core Drilling – October to December 2016. Metallurgical Testwork – March 2017

Criteria JORC Code explanation	Commentary
 Whether sample sizes are appropriate to the grain size of the material being sampled.	For some of the drilling, the bulk RC reject sample has been used for metallurgical testwork. Core drilling included both HQ and NQ core sizes. Sampling was completed on half-core, for intervals of a minimum of 300mm and maximum of 1 metre, determined based on geological boundaries. Drill core was halved by using an industry standard core saw. These sub-sampling techniques are industry standard and if correctly applied provide quality, representative samples for laboratory analysis. Field duplicates of the RC sub-sampling were taken on a 1 in 50 basis, for laboratory analysis and subsequent statistical auditing of sampling procedures.
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 (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	Metallurgical Testwork First pass metallurgical testwork has been managed by internationally recognised Metallurgical consultants, METS Engineering and independently carried out at ALS laboratories in Perth, Western Australia. This word included: -  Compositing of RC drill samples  Gravity separation testwork  Standard flotation testwork  Petrology and SEM analysis Analysis of Drill Samples All samples for analysis have been submitted to ALS Minerals, Shand Street, Brisbane, Queensland. ALS is a respected and certified independent laboratory with extensive experience and with operations throughout the world.

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Table 1: Checklist of Assessment and Reporting Criteria

7[th] March, 2017

Mt Gilmore Project, New South Wales, Australia.

RC and Core Drilling – October to December 2016. Metallurgical Testwork – March 2017

Criteria JORC Code explanation

	Commentary
	Samples submitted included sub-samples and composited samples, field
	duplicates and certified Standards and Blanks.
	Lab Standards, Repeats and Blanks have also been reported within the
	ALS Certificates, along with the standard QC Reports.
	Sample preparation included crush (-6mm), pulverizing and sub-split for
	analysis.
	Analysis methods and detection limits for work are reported in the table
	below.
	Element	Method	Detection
			Limit
	Au	ALS Method – Au-
		AA26	0.01ppm
		Ore grade 50gm
		FA AAS finish
	Ag, Al, As, Ba, Be, Bi, Ca,	ALS Methods –	Variable
	Cd, Ce, Co, Cr, Cs, Cu,	GEO-4A01 ME-
	Fe, Ga, Be, Hf, In, K, La,	MS61 +
	Li, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr, Ta, Te, Th, Ti, Tl, U, V, W, Y Zn Zr.	48 element 4 acid digestion, with ICP-MS & ICPAES analysis
		Co-OG62 for >1%
		Co & Cu-OG62 for
		>1% Cu

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Table 1: Checklist of Assessment and Reporting Criteria

7[th] March, 2017

Mt Gilmore Project, New South Wales, Australia.

RC and Core Drilling – October to December 2016. Metallurgical Testwork – March 2017

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Verification of		The verification of significant intersections by either independent or	Sampling and analytical methods are of a good standard and as such the
sampling and		alternative company personnel.	results are considered representative of the mineralisation.
assaying	 	The use of twinned holes. Documentation of primary data, data entry procedures, data	Sample security has been controlled by the Company or ALS Minerals.
		verification, data storage (physical and electronic) protocols.	Auditing of these results have determined accuracies within acceptable
		Discuss any adjustment to assay data.	industry standards.
Location of		Accuracy and quality of surveys used to locate drill holes (collar and	Drill hole locations were surveyed by hand-held GPS utilising the GDA94
data points		down-hole surveys), trenches, mine workings and other locations	(Zone 56) datum (approximately + 5m accuracy). Subsequent to the
		used in Mineral Resource estimation.	completion of the drilling, all current and historical holes will be surveyed
		Specification of the grid system used.	using a more accurate DGPS.
		Quality and adequacy of topographic control.	Down hole surveying of holes was undertaken nominally every 14 metres
			down-hole using a Reflex Electronic Multi-Shot Camera.
Data spacing		Data spacing for reporting of Exploration Results.	Data spacing is variable. No determination has yet been made regarding
and		Whether the data spacing and distribution is sufficient to establish the	data spacing and whether sample distribution is sufficient for resource
distribution		degree of geological and grade continuity appropriate for the Mineral	estimation.
		Resource and Ore Reserve estimation procedure(s) and
		classifications applied.
		Whether sample compositing has been applied.
Orientation of		Whether the orientation of sampling achieves unbiased sampling of	Drill hole azimuths are believed to be perpendicular to the mineralised
data in		possible structures and the extent to which this is known, considering	trend as defined by past exploration. Mineralised zones are interpreted
relation to		the deposit type.	to be sub-vertical with drilling with planned dips of -600 into these zones.
geological structure		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.	Analysis of sample and data bias has yet to be undertaken. No information has been provided in the current or historical reporting to suggest any bias.
			Core drilling is currently underway and will assist in the geological
			understanding of mineralised trends.
Sample		The measures taken to ensure sample security.	Sample submission for the RC drill program was undertaken by a
security			qualified geologist.

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Table 1: Checklist of Assessment and Reporting Criteria

7[th] March, 2017

Mt Gilmore Project, New South Wales, Australia.

RC and Core Drilling – October to December 2016. Metallurgical Testwork – March 2017

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Audits or		The results of any audits or reviews of sampling techniques and data.	No audit of results has yet been undertaken.
reviews

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Mineral		Type, reference name/number, location and ownership including	The Mount Gilmore Project includes a single Exploration Licence
tenement and		agreements or material issues with third parties such as joint	(EL8379) located in New South Wales, Australia. The lease was granted
land tenure		ventures, partnerships, overriding royalties, native title interests,	on 23rd June 2015 and includes 99 “Units”.
status		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.	EL8379 is owned 51% by Corazon Mining Limited subsidiary Mt Gilmore Resources Pty Ltd and 49% by Providence Gold and Minerals Pty Ltd. Corazon Mining Limited has the option to earn up to 80% equity in the Project (refer to announcement dated 16 June, 2016).
			The lease covers private farm (station) land and minor Crown Land.
Exploration		Acknowledgment and appraisal of exploration by other parties.	Mineralisation was discovered in the Mt Gilmore Project region more than
done by other			130 years ago with small scale mining being completed in the late 1870’s
parties			at Glamorgan, Flintoffs and Federal copper and mercury mines.
			Historical records exist for the historical production and sampling. These
			reports are variable in quality and reliability.
			Modern exploration within the Project commenced in the 1980’s when
			PanContinental completed ground IP and magnetic geophysical surveys,
			gridded soil geochemistry for Cu, As, Au and Co, 25 trenches (1518.5m)
			and 17 RC drill holes (for 1,020.82m).
			Between 2006 and 2008 Central West Gold NL completed 25 RC holes
			and 2 core tails for 2,880m of RC and 163m of core. 21 of these holes
			were targeting Cobalt Ridge and 4 were completed at Gold Hill.

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Table 1: Checklist of Assessment and Reporting Criteria

7[th] March, 2017

Mt Gilmore Project, New South Wales, Australia.

RC and Core Drilling – October to December 2016. Metallurgical Testwork – March 2017

Criteria JORC Code explanation	Commentary	Commentary	Commentary	Commentary	Commentary	Commentary	Commentary
	The current Project holders have been focussed on developing data that supports a regional scale Cu-Au system along the Mt Gilmore trend.
Geology  Deposit type, geological setting and style of mineralisation.	The Project is located on the western edge of the Mesozoic Clarence- Morton Basin, where it abuts the Siluro-Devonian Silverwood Group. The Silverwood group is intruded by the Later Permian Towgon Grange Granodiorite and, at the contact, tourmaline rich bodies occur that range from veinlets to breccia-fill to dyke-like bodies up to 10m wide. The tourmaline enrichment appears to correlate with copper, cobalt and gold soil anomalies. Zoning of mineralisation has been identified, with cinnabar concentrated within the granodiorite and copper and gold concentrated within the hornfels. The Project is considered prospective for tourmaline breccia hosted Co- Cu-Au deposits, Cu-Au-Fe skarns and Quartz-sulphide vein systems, including porphyry Cu-Au deposits.
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.	Drill hole information for RC drilling completed by Corazon Mining Limited at the Cobalt Ridge prospect is proved in the table below. Hole ID North East RL Dip (degrees) Mag Az (degrees) Total Depth MGRC001 6,740,207 468,492 65 -60 335.0 56 MGRC002 6,740,204 468,466 69 -60 335.0 174 MGRC003 6,740,282 468,448 72 -60 155.0 120 MGRC004 6,740,316 468,439 72 -60 155.0 105 MGRC005 6,740,315 468,438 72 -60 155.0 89 MGRC006 6,740,305 468,471 73 -60 155.0 120 MGRC007 6,740,290 468,500 67 -60 155.0 100 MGRC008 6,740,315 468,494 67 -60 155.0 132
	Hole ID	North	East	RL	Dip (degrees)	Mag Az (degrees)	Total Depth
	MGRC001	6,740,207	468,492	65	-60	335.0	56
	MGRC002	6,740,204	468,466	69	-60	335.0	174
	MGRC003	6,740,282	468,448	72	-60	155.0	120
	MGRC004	6,740,316	468,439	72	-60	155.0	105
	MGRC005	6,740,315	468,438	72	-60	155.0	89
	MGRC006	6,740,305	468,471	73	-60	155.0	120
	MGRC007	6,740,290	468,500	67	-60	155.0	100
	MGRC008	6,740,315	468,494	67	-60	155.0	132

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Table 1: Checklist of Assessment and Reporting Criteria

7[th] March, 2017

Mt Gilmore Project, New South Wales, Australia.

RC and Core Drilling – October to December 2016. Metallurgical Testwork – March 2017

Criteria JORC Code explanation	Commentary	Commentary	Commentary	Commentary	Commentary	Commentary	Commentary
	MGRC009	6,740,258	468,534	66	-60	335.0	126
	MGRC010	6,740,229	468,541	65	-60	335.0	121
	MGRC011	6,740,316	468,556	67	-60	170.0	114
	MGRC012	6,740,310	468,570	67	-60	155.0	96
	MGRC013	6,740,323	468,622	69	-60	155.0	105
	MGRC014	6,740,400	468,664	67	-60	155.0	97
	MGRC015	6,740,220	468,610	69	-60	335.0	149
	MGRC016	6,740,259	468,689	73	-60	335.0	120
	MGRC017	6,740,313	468,726	67	-60	335.0	126
	MGRC018	6,740,258	468,739	67	-60	335.0	120
Data aggregation methods  In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.  Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.  The assumptions used for any reporting of metal equivalent values should be clearly stated.	Intercepts > or equal to 1m down hole Co thickness, with > or equal to 0.05% Co, > or equal to 0.05% Co cut-off & < or equal to 3m internal dilution parameters were used to calculate down hole Co-Cu-Au intercepts.

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Table 1: Checklist of Assessment and Reporting Criteria

7[th] March, 2017

Mt Gilmore Project, New South Wales, Australia.

RC and Core Drilling – October to December 2016. Metallurgical Testwork – March 2017

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Relationship		These relationships are particularly important in the reporting of	All drill hole intervals provided are down hole widths.
between mineralisation widths and		Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.	Drilling has been planned such that it is perpendicular to the main mineralised trend as defined by historical work.
intercept		If it is not known and only the down hole lengths are reported, there	Mineralised zones are interpreted to be sub-vertical. Drilling has collar
lengths		should be a clear statement to this effect (eg ‘down hole length, true	dips of 600 into these zones.
		width not known’).
Diagrams		Appropriate maps and sections (with scales) and tabulations of	All diagrams include scales for reference (if appropriate).
		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.
Balanced		Where comprehensive reporting of all Exploration Results is not	Noted and complied with.
reporting		practicable, representative reporting of both low and high grades
		and/or widths should be practiced to avoid misleading reporting of
		Exploration Results.
Other		Other exploration data, if meaningful and material, should be reported	Historical exploration results have been previously reported by Corazon
substantive		including (but not limited to): geological observations; geophysical	Mining Limited. This work included rock-chip sampling, soil
exploration		survey results; geochemical survey results; bulk samples – size and	geochemistry, geophysics and drilling. Reliance has been placed on
data		method of treatment; metallurgical test results; bulk density,	historical reports as an indicator of potential only.
		groundwater, geotechnical and rock characteristics; potential
		deleterious or contaminating substances.
Further work		The nature and scale of planned further work (eg tests for lateral	Additional analysis of this drilling will provide a better understanding of
		extensions or depth extensions or large-scale step-out drilling).	the mineralised trends and mineralisation processes that will be used in
		Diagrams clearly highlighting the areas of possible extensions,	future interpretation and modelling at Cobalt Ridge.
		including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	First pass metallurgical testwork on the Cobalt Ridge mineralisation has been completed. Additional test work is proposed that will define optimal
			processing options.

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