ELEMENT 25 LIMITED — Interim / Quarterly Report 2016

Apr 28, 2016

==> picture [190 x 113] intentionally omitted <==

Highlights:

• ➤ Geochemical
  blade-­‐refusal
  aircore
  programme
  along
  the
  Jatz strike
  corridor
  returns
  numerous
  basement
  gold
  intersections with
  a peak
  value
  of
  12.1
  g/t
  gold .

• ➤ Other
  results
  include:

YAAC251 9m
@
1.65
g/t
Au
from
30m YAAC286 8m
@
1.20
g/t
Au
from
20m

• ➤ Regional
  scale
  high-­‐tenor
  basement
  gold
  anomaly
  at
  Jatz
  now extends over
  1
  km
  in
  strike
  at
  over
  0.5
  g/t
  gold .

• ➤ Anomaly
  broadens
  in
  width
  and
  grade
  to
  the
  north
  and
  is
  open
  to the
  north
  and
  west.

• ➤ Multiple
  regional
  coincident
  magnetic
  and/or
  surface geochemical
  targets
  have
  been
  identified
  for
  aircore
  drill
  testing.

**QUARTERLY

OPERATIONS
REPORT 31
MARCH
2016**

**ABOUT

MONTEZUMA
MINING**

Listed
in
2006,
Montezuma
Mining
Company Ltd
(ASX:
MZM)
is
a
diversified
explorer primarily
focused
on
manganese,
copper
and gold.
The
Company’s
primary
objective
is
to achieve
returns
for
shareholders
through selected
strategic
acquisitions
and
targeted exploration.

Montezuma
Mining
has
100%
interests
in
the Yamarna
Gold
Project
in
the
Yamarna Geenstone
Belt,
Western
Australia
and
the Butcherbird
Manganese
Project
in
the Murchison
region
of
Western
Australia

**MARKET

DATA**

ASX
code: MZM Share
Price: $0.21 Shares
on
issue: 70,464,350 Market
capitalisation: $14.8M

**BOARD

AND
MANAGEMENT**

Chairman Seamus
Cornelius Executive
Director Justin
Brown Non-­‐Executive
Director John
Ribbons

• ➤ Heritage
  clearance
  received
  to
  extend
  drill
  coverage
  across
  much of
  E38/2889.

• ➤ Next
  phase
  of
  drilling
  comprising
  approximately
  7,000
  metres
  of geochemical
  aircore
  drilling
  has
  commenced.

• ➤ Programme
  designed
  to
  extend
  the
  kilometre
  scale,
  high-­‐tenor (>0.5
  g/t
  Au)
  geochemical
  anomaly
  within
  the
  Jatz
  strike
  corridor and
  further
  north
  within
  the
  broader,
  approximately
  5km
  X
  2km package
  of
  Archean
  greenstones
  to
  the
  west
  and
  north
  of
  Jatz.

==> picture [302 x 131] intentionally omitted <==

Company
information,
ASX
announcements, investor
presentations,
corporate
videos
and other
investor
material
on
the
Company’s projects
can
be
viewed
at h //

Ground
Floor,
31
Ventnor
Street,
WEST
PERTH
WA
6005
|
Phone
+61
8
6315
1400

**YAMARNA

PROJECT:
(MZM
100%)**

**Geochemical

Aircore
Drilling**

Montezuma
Mining
Company
Ltd
(“Montezuma”
or
“Company”)
announced
during
the
quarter
the
results
from further
geochemical
aircore
drilling
at
the
Company’s
100%
owned
Yamarna
Project.
This
work
significantly
extended the
basement
gold
anomaly
at
the
Jatz
Prospect
with
gold
grades up
to
12.1
g/t
gold returned
(see
figure
1,
significant results
are
presented
below
in
table
1).

The
drilling
to
date
at
Jatz
has
tested
only
a
small
part
of
what
is
now
interpreted
as
a
target
corridor
approximately 5km
in
strike
length
and
up
to
2km
in
width,
containing
greenstone
rocks
with
demonstrated
potential
for
high
grade Archean
gold
mineralisation.

The
latest
programme
has
extended
the
high
grade
basement
geochemical
signature to
at
least
1km
in
strike
at
over 0.5
g/t
(500ppb)
gold .
The
anomaly
is
coherent
and
strikes
in
a
north
westerly
direction
and
appears
to
be strengthening
to
the
north.
Mineralisation
is
open
to
the
north
and
west.

Heritage
clearances
have
been
received
and
drilling
to
extend
the
Jatz
geochemical
anomaly
to
the
north
has commenced.

In
addition
to
extending
the
bedrock
gold
target
at
Jatz,
the
current
round
of
drilling
will
also
provide
broad
spaced regional
baseline
geochemical
and
geological
data
on
an
800m
X
100m
spacing,
with
the
aim
of
generating
additonal targets
(see
figures
2
and
3).

It
is
important
to
note
that,
to
date,
the
main
tool
used
to
generate
targets
has
been
regional
soil
geochemical sampling.
A
better
understanding
of
the
geology
at
Yamarna
from
previous
phases
of
work
has
confirmed
multiple additional
geological/structural
targets
which
remain
untested.
The
drilling
programme
now
underway
will
provide
a first
pass
geochemical
and
geological
dataset
to
assist
in
the
target
definition
process.

Ground
Floor,
31
Ventnor
Street,
WEST
PERTH
WA
6005
|
Phone
+61
8
6315
1400

2

Hole ID	Easting (MGA 94 Z51)	Northing (MGA 94 Z51)	Nominal RL (m)	Dip ( 0)	Azimuth (mag 0)	Total Depth (m)	Depth From (m)	Depth To (m)	Intercept Width (m)	Au (ppb)
YAAC205	593365	6889997	398	-60	267	39	20	28	8	132
YAAC206	593400	6890002	398	-60	272	43	9	10	1	54
YAAC209	593537	6890004	399	-60	273	30	23	30	7	69
YAAC212	593622	6889999	400	-60	274	34	11	12	1	57
and							28	31	3	69
YAAC213	593655	6889994	400	-60	270	29	16	25	9	105
YAAC216	593714	6889994	400	-60	274	15	12	15	3	79
YAAC221	593797	6889985	400	-60	273	22	21	22	1	59
YAAC229	593234	6890365	394	-60	267	61	32	37	5	121
YAAC232	593386	6890373	396	-60	280	68	26	30	4	120
and							48	49	1	194
and							58	67	9	229
						Incl	58	62	4	457
YAAC233	593139	6890790	393	-60	259	71	48	53	5	209
and							65	66	1	1087 (1.08 g/t)
YAAC234	593201	6890801	393	-60	268	67	32	37	5	330
YAAC235	593259	6890801	393	-60	268	84	76	80	4	95
YAAC236	593329	6890803	394	-60	273	62	48	62	14	254
YAAC237	593386	6890799	394	-60	267	60	19	24	5	96
YAAC247	593439	6890368	396	-60	275	66	48	56	8	176
YAAC248	593496	6890360	396	-60	270	60	34	41	7	186
and							44	47	3	66
and							51	52	1	115
YAAC250	593597	6890353	398	-60	270	51	50	51	1	419
YAAC251	593647	6890355	398	-60	265	54	30	39	9	1648 (1.65g/t)
						Incl	30	31	1	12531 (12.53g/t)*
and							53	54	1	51
YAAC277	593866	6889797	401	-60	270	12	10	11	1	54
YAAC286	593527	6889601	402	-60	270	29	16	29	13	773
						Incl	20	28	8	1201 (1.20 g/t)
YAAC304	593978	6889605	402	-60	270	10	8	10	2	71
YAAC306	593664	6889396	404	-60	270	27	26	27	1	944
YAAC312	593816	6889419	406	-60	270	13	12	13	1	58
YAAC313	593841	6889423	407	-60	270	12	10	12	2	78
YAAC316	593914	6889438	407	-60	270	10	9	10	1	129
YAAC320	594016	6889433	408	-60	270	15	13	15	2	125

**Table
1:
Significant
gold
assays

50ppb
from
recently
completed
aircore
drilling
at
the
Yamarna
Project.
All
intersections
are quoted
as
downhole
widths.
(Note
-­‐
*
indicates
this
is
a
Fire
Assay
Repeat
following
an
over
range
result
initially.**

Ground
Floor,
31
Ventnor
Street,
WEST
PERTH
WA
6005
|
Phone
+61
8
6315
1400

3

==> picture [460 x 345] intentionally omitted <==

Figure
1:
Collar
locations
and
grade
contours
over
aeromagnetics
.
Drilling
to
extend
Jatz
to
the
north
and
west.

==> picture [421 x 347] intentionally omitted <==

Figure
2:
Regional
aircore
geochemical
drilling
to
test
approximately
5km
X
2km
greenstone
belt.

Ground
Floor,
31
Ventnor
Street,
WEST
PERTH
WA
6005
|
Phone
+61
8
6315
1400

4

==> picture [402 x 347] intentionally omitted <==

Figure
3:
Multiple
new
targets
identified
by
recently
flown
close
spaced
aeromagnetics.
Targets
shown
over
1vD
RTP data.

**RC

Drilling**

During
the
quarter,
final
assay
results
were
released
for
the
previously
completed
RC
programme.
The
programme returned
multiple
ore
grade
intercepts
including
high
grades
up
to
19.1
g/t
Au.
Full
results
are
tabulated
below.

Hole ID	Easting (MGA 94 Z51)	Northing (MGA 94 Z51)	Nominal RL (m)	Dip ( 0)	Az. (mag 0)	Total Depth (m)	Depth From (m)	Depth To (m)	Intercept Width (m)	Au (g/t)
Previously reported aircore results at the Jatz Prospect
YAAC027	594100	6889153	411	-90	000	14	13	14	1	2.7
YAAC084	593447	6890204	398	-90	000	55	40	55	15	0.4
New RC assay results
YARC001	593496	6890206	398	-60	270	138	46	56	10	0.9*
						Including	52	54	2	3.5*
							64	71	7	5.4*
						Including	65	67	2	17.5*
YARC002	593532	6890201	398	-60	270	132	119	123	4	1.9*
						Including	120	122	2	3.2*
YARC003	593404	6890204	397	-60	090	120	46	47	1	0.2
							51	52	1	0.1
							79	81	2	0.2
YARC004	593457	6890205	398	-60	270	90	42	47	5	0.2
YARC005	593421	6890213	397	-60	270	96	45	47	2	0.3
YARC006	593387	6890207	397	-60	270	132	70	71	1	0.2
							95	96	1	0.3
							122	123	1	0.2

Ground
Floor,
31
Ventnor
Street,
WEST
PERTH
WA
6005
|
Phone
+61
8
6315
1400

5

Hole ID	Easting (MGA 94 Z51)	Northing (MGA 94 Z51)	Nominal RL (m)	Dip ( 0)	Az. (mag 0)	Total Depth (m)	Depth From (m)	Depth To (m)	Intercept Width (m)	Au (g/t)
YARC007	594107	594107	411	-60	180	72		No Significant Assays
YARC008	594110	594110	411	-60	180	78		No Significant Assays
YARC009	594107	594107	411	-60	000	60		No Significant Assays
YARC010	594110	594110	412	-60	000	78		No Significant Assays
YARC011	593265	6890530	396	-60	250	150	59	65	6	0.1
							74	75	1	0.1
							103	104	1	0.3
							136	138	2	0.2
YARC012	593306	6890539	396	-60	250	120	77	79	2	0.1
YARC013	593344	6890553	395	-60	250	126	73	74	1	0.1
							107	111	4	0.3
						Including	110	111	1	1.1
YARC014	593376	6890567	395	-60	250	120	58	66	8	0.4
						Including	58	60	2	1.1
							71	72	1	0.1
YARC015	593414	6890581	395	-60	250	120	45	46	1	0.1
YARC016	593456	6890590	395	-60	250	192	80	84	4	1.2
						Including	81	83	2	1.8
							110	112	2	0.1
							126	133	7	0.3
							156	165	9	0.3
YARC017	593495	6890604	396	-60	250	215	61	62	1	0.1
							111	120	9	0.7
						Including	119	120	1	3.8
							126	127	1	0.1
YARC018	593530	6890617	397	-60	250	120		No Significant Assays
YARC019	593557	6890657	398	-60	250	168	136	138	2	0.3
YARC020	593605	6890639	397	-60	270	210	61	62	1	0.1
YARC021	593588	6890200	399	-60	270	201		No Significant Assays
YARC022	593203	6889794	399	-60	270	120	87	88	1	0.2
							101	104	3	0.1
							107	108	1	0.5
							111	112	1	0.3
YARC023	593137	6889820	398	-60	270	126	37	40	3	0.4
							96	97	1	0.1
YARC024	594113	6889163	412	-60	270	60	28	29	1	0.2
YARC025	594109	6888976	414	-60	180	138		No Significant Assays
YARC026	594106	6888937	416	-60	180	78		No Significant Assays
YARC027	594094	6888935	416	-60	000	54		No Significant Assays
YARC028	594308	6888771	421	-60	270	120	75	76	1	0.2
YARC029	594311	6888743	419	-60	270	126		No Significant Assays
YARC030	596094	6889606	411	-60	270	120		No Significant Assays
YARC031	596164	6889599	410	-60	270	120		No Significant Assays
YARC032	596408	6889602	408	-60	270	120	37	38	1	0.1
YARC033	596452	6889603	408	-60	270	120		No Significant Assays
YARC034	596291	6888801	420	-60	270	120		No Significant Assays
YARC035	596351	6888800	420	-60	270	120	16	21	5	0.2
							24	25	1	0.2
YARC036	596898	6888011	425	-60	270	120	48	50	2	1.2
YARC037	596948	6888010	425	-60	270	120	50	51	1	0.3

**Table
2:
Significant
gold
assays

0.1
g/t
(max.
2m
internal
dilution)
from
RC
drilling
completed
in
the
previous
Quarter
at
the
Yamarna Project.
All
intersections
are
quoted
as
downhole
widths.
Assays
completed
by
Aqua
Regia
digest
except
where
*
denotes
fire
assays.**

Ground
Floor,
31
Ventnor
Street,
WEST
PERTH
WA
6005
|
Phone
+61
8
6315
1400

6

==> picture [482 x 673] intentionally omitted <==

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

6.2
M
oz
East
Sth.
CAPTAINS
PROSPECT
JATZ
PROSPECT
CRUSKIT
PROSPECT
----- End of picture text -----*

Figure
4:
Regional
location
plan
showing
the
Yamarna
Project
in
context
with
the
Gruyere
gold
discovery.

Ground
Floor,
31
Ventnor
Street,
WEST
PERTH
WA
6005
|
Phone
+61
8
6315
1400

7

**BONNEVAL

GOLD
PROJECT
FRANCE (UNDER
APPLICATION)**

The
Bonneval
application
continues
to
progress
through
the
approvals
process
and
the
market
will
be
advised when
any
material
developments
transpire.

CORPORATE

During
the
Quarter,
the
Company
continued
its
ongoing
capital
management
strategy
by
investing
an
additional $1M
in
Danakali
Ltd
(“Danakali”)
by
participating
in
a
recent
capital
raising
undertaken
by
Danakali
to
raise approximately
$5.5M
at
an
issue
price
of
$0.22
per
share
with
a
one
for
two
attached
option
exercisable
at
$0.35 with
a
two
year
expiry[1] .

This
increases
the
Company’s
investment
in
Danakali
to
approximately
7.5M
shares
and
2.3M
options.
The Company
believes
that
the
world
class
Colluli
Potash
Project
has
been
de-­‐risked
through
the
release
of
a
robust definitive
feasibility
study
late
in
2015,
is
attractively
valued
at
the
placement
price
and
is
favourably
positioned for
growth
with
the
potential
for
strong
capital
gains
in
the
short
to
medium
term.

**FOR

MORE
INFORMATION…**

**Justin

Brown**

Executive
Director Phone:
+61
8
6315
1400 Email:
jbrown@montezuma.com.au

Company
information,
ASX
announcements,
investor
presentations,
corporate
videos
and
other
investor
material on
the
Company’s
projects
can
be
viewed
at
http://www.montezuma.com.au.

The
information
in
this
report
that
relates
to
Exploration
Results,
Mineral
Resources
and
Mineral
Reserves
is
based
on
information
compiled by
Mr
Bradley
Drabsch
who
is
a
member
of
the
Australasian
Institute
of
Mining
and
Metallurgy.
At
the
time
that
the
Exploration
Results, Mineral
Resources
and
Mineral
Reserves
were
compiled,
Mr
Drabsch
was
an
employee
of
Montezuma
Mining
Company
Ltd.
Mr
Drabsch
is
a geologist
and
has
sufficient
experience
which
is
relevant
to
the
style
of
mineralisation
and
type
of
deposit
under
consideration
and
to
the activity
which
he
is
undertaking
to
qualify
as
a
Competent
Person
as
defined
in
the
2012
edition
of
the
‘Australasian
Code
for
Reporting
of Exploration
Results,
Mineral
Resources
and
Ore
Reserves’.

Mr
Drabsch
or
anentity
related
to
or
controlled
by
Mr
Drabsch
holds
options
over
fully
paid
shares
in
the
Company
at
thte
time
of
this
report. Mr
Drabsch
consents
to
the
inclusion
of
this
information
in
the
form
and
context
in
which
it
appears
in
this
report.

In
accordance
with
Listing
Rule
5.23.2,
the
Company
confirms
in
the
subsequent
public
report
that
it
is
not
aware
of
any
new
information
or data
that
materially
affects
the
information
included
in
the
relevant
market
announcement
and,
in
the
case
of
estimates
of
mineral
resources or
ore
reserves,
that
all
material
assumptions
and
technical
parameters
underpinning
the
estimates
in
the
relevant
market
announcement continue
to
apply
and
have
not
materially
changed.

Please
note
with
regard
to
exploration
targets,
the
potential
quantity
and
grade
is
conceptual
in
nature,
that
there
has
been
insufficient exploration
to
define
a
Mineral
Resource
and
that
it
is
uncertain
if
further
exploration
will
result
in
the
determination
of
a
Mineral
Resource.

1 http://www.danakali.com.au/images/stories/axs-­‐announcements/2016/Danakali_to_raise_5m_to_advance_the_world_class_colluli_potash_project.pdf

Ground
Floor,
31
Ventnor
Street,
WEST
PERTH
WA
6005
|
Phone
+61
8
6315
1400

8

**Montezuma

Mining
Company
Limited**

**ASX

Additional
Information
for
Quarterly
Report
to
31
March
2016**

	Tenement reference	Location	Interest at beginning of quarter	Acquired / Disposed	Interest at end of quarter
The mining tenements held at the end of the quarter and their location	E09/1985	Yalbra WA	15%	N/A	15%
	E15/1447	Lake LefroyWA	100%	N/A	100%
	E20/659	Eelya Hill WA	10%	N/A	10%
	E20/874	SundayWell WA	100%	N/A	100%
	E20/880	Yallon Well	100%	N/A	100%
	E28/2313	Green Dam WA	100%	N/A	100%
	E28/2327	Green Dam WA	100%	N/A	100%
	E28/2504	Manners Flat WA	100%	Disposed	0%
	E28/2577	Pinnacles WA	100%	N/A	100%
	E36/843	Leinster WA	100%	N/A	100%
	E37/1176	Leonora WA	100%	N/A	100%
	E38/2889	Malle Hen Point WA	100%	N/A	100%
	E38/2961	Mt Venn WA	100%	N/A	100%
	E38/2999	Malle Hen Point North WA	100%	N/A	100%
	E38/3092	Point Sunday	100%	N/A	100%
	E46/982	Pilbara WA	100%	Disposed	0%
	E51/1622	Telegraph Well WA	100%	N/A	100%
	E51/1693	Mt Maitland WA	100%	N/A	100%
	E52/1529	Mt PadburyWA	100%(Note 1)	N/A	100%(Note 1)
	E52/2350	Butcher Bird WA	100%	N/A	100%
	E52/2658	Butcherbird South WA	100%	Disposed	0%
	E52/2831	Millidie Creek WA	100%	N/A	100%
	E52/3082	Mt PadburyWA	100%	N/A	100%
	E52/3082	Mt PadburyWA	100%	N/A	100%
	E52/3337	Butcher Bird North WA	100%	N/A	100%
	E52/3353	Peak Hill WA	100%	N/A	100%
	E52/3354	Peak Hill WA	100%	N/A	100%
	E52/3355	Peak Hill WA	100%	N/A	100%
	E58/494	Naluthanna Hill WA	100%	N/A	100%
	E59/2143	Twin Peaks WA	100%	N/A	100%
	E63/1750	Lake Johnston WA	100%	N/A	100%
	E69/3311	Cunyu WA	100%	Disposed	0%
	E69/3419	Rainbow Well WA	0%	Acquired	100%
	E77/2334	Holleton WA	100%	N/A	100%

Notes:

• 1) 100%
  interest
  held
  in
  all
  minerals
  other
  than
  iron
  ore
  and
  manganese.

Ground
Floor,
31
Ventnor
Street,
WEST
PERTH
WA
6005
|
Phone
+61
8
6315
1400

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