ELEMENT 25 LIMITED — Regulatory Filings 2017

Sep 10, 2017

ABOUT MONTEZUMA MINING

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11 SEPTEMBER 2017

STRONG IP ANOMALY GENERATED FROM ORIENTATION SURVEY DESIGNED TO TARGET HIGHER GRADE GOLD AT HOLLETON

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

Montezuma has 100% interests in the Yamarna Gold Project in the Yamarna Greenstone Belt, the Holleton Gold Project in the Wheat Belt region and the Butcherbird Manganese/Copper Project in the Murchison region, all located in Western Australia.

HIGHLIGHTS

MARKET DATA

• Strong IP anomaly up to 33 mV/V defined by single line orientation survey at the Brahma Prospect.

• Survey designed to identify zones with higher sulphide concentrations associated with high grade gold.

• Previous drilling shows a correlation between sulphide content and gold grade.

• Lower grade gold in previous drillhole GRDD0002 (32m @ 0.3 g/t Au[1] ) is coincident with a weaker IP response.

• Results suggest the much stronger response to the north may be indicating higher sulphide content and potentially higher gold grades.

Montezuma Mining Company Ltd (“Montezuma” or “Company”) is pleased to advise that a successful dipole-dipole array induced polarisation (“IP”) orientation survey has been completed at the Company’s 100% owned Holleton Gold Project.

The purpose of the IP survey was to test whether the technique can be used to target areas with higher sulphide concentrations along the 2km long basement gold anomaly at the Brahma Prospect.

Limited historical drilling, where only three holes have been drilled deeper than 40m, returned a best intersection of 73m @ 0.3 g/t Au (including 4m @ 1.6 g/t Au and 1m @ 7.6 g/t Au)[1] , with all three diamond holes returning broad mineralised intervals. The higher grade gold zones are typically associated with a higher sulphide content.

The results of the survey indicate that a larger scale IP survey along the entire 2km strike length of the Brahma gold target may be the most cost effective method to generate drill targets and expedite the identification of potentially higher grade zones at Brahma.

MARKET DATA
ASX code:	MZM
Share price: Shares on issue:	$0.15 83.5M
Market capitalisation: Cash (at 30 June):	$12.5M ~$4.2M
Listed Investments (at 30 June):	~$7.1M

BOARD AND MANAGEMENT

Chairman Seamus Cornelius Executive Director Justin Brown Non-Executive Director John Ribbons Exploration Manager Dave O’Neill

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

1 See company announcement dated 20 July 2016

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Figure 1: Plan view of the Brahma gold trend showing basement gold values and the location of the IP survey line overlaying magnetics (RTP 1VD).

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Figure 2: Sectional view of the inversion model along section A-B showing chargebility (mV/V) and historical drilling..

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, Exploration Targets, Mineral Resources and Mineral Reserves is based on information compiled by Mr David O’Neill who is a member of the Australasian Institute of Mining and Metallurgy. At the time that the Exploration Results, Exploration Targets, Mineral Resources and Mineral Reserves were compiled, Mr O’Neill was an employee of Montezuma Mining Company Ltd. Mr O’Neill 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 editi on of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr O’Neill consents to the inclusion of this information in the form and context in which it appears in this report

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.

JORC Table 1

JORC Code, 2012 Edition – Table 1 report – Holleton Project

Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	Commentary
Sampling	 Nature and quality of sampling (eg cut channels, random chips, or	The data presented herein is historic in nature and as such
techniques	specific specialised industry standard measurement tools	sampling technique and its nature and quality cannot be
	appropriate to the minerals under investigation, such as down hole	ascertained with certainty.
	gamma sondes, or handheld XRF instruments, etc). These	It can be assumed that industry standard methods have been
	examples should not be taken as limiting the broad meaning of	utilised by the previous holder.
	sampling.	The Induced Polarization (IP) geophysical data collected during
	 Include reference to measures taken to ensure sample	Augsut 2017 was captured by Vortex Geophysics using GDD
	representivity and the appropriate calibration of any measurement	sensors and a Vortex VIP-30 transmitter (100A).
	tools or systems used.	The IP survey used receivers spaced 50m along the test line and
	 Aspects of the determination of mineralisation that are Material to	the dipole-dipole technique.
	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.
Drilling	 Drill type (eg core, reverse circulation, open-hole hammer, rotary	Drilling presented is a combination of historical Air-core and
techniques	air blast, auger, sonic, etc) and details (eg core diameter, triple or	Diamond Drilling.
	standard tube, depth of diamond tails, face-sampling bit or other
	type, whether core is oriented and if so, by what method, etc).
Drill sample	 Method of recording and assessing core and chip sample	Due to the historic nature of the data, recovery cannot be
recovery	recoveries and results assessed.	determined with confidence.
	 Measures taken to maximise sample recovery and ensure	The relationship between sample recovery and grade has not
	representative nature of the samples.	been determined.
	 Whether a relationship exists between sample recovery and grade
	and whether sample bias may have occurred due topreferential

Criteria	JORC Code explanation	Commentary
	loss/gain of fine/coarse material.
Logging	 Whether core and chip samples have been geologically and	Not all geological data for the historical drillholes is available.
	geotechnically logged to a level of detail to support appropriate	Where data is available, it has been compiled and entered into the
	Mineral Resource estimation, mining studies and metallurgical	company historic database. The data will be unsuitable for use in
	studies.	a Mineral Resource or more advanced study and is to be used as
	 Whether logging is qualitative or quantitative in nature. Core (or	an exploration aid only.
	costean, channel, etc) photography.
	 The total length and percentage of the relevant intersections
	logged.
Sub-	 If core, whether cut or sawn and whether quarter, half or all core	All samples reported are taken from a 1-4 metre drilling interval.
sampling	taken.	The sample preparation and sample size information is not
techniques	 If non-core, whether riffled, tube sampled, rotary split, etc and	available due to the historic nature of the data.
and sample	whether sampled wet or dry.	The methods of core preparation and sampling are not available
preparation	 For all sample types, the nature, quality and appropriateness of	due to the historic nature of the data.
	the sample preparation technique.
	 Quality control procedures adopted for all sub-sampling stages to
	maximise representivity of samples.
	 Measures taken to ensure that the sampling is representative of
	the in situ material collected, including for instance results for field
	duplicate/second-half sampling.
	 Whether sample sizes are appropriate to the grain size of the
	material being sampled.
Quality of	 The nature, quality and appropriateness of the assaying and	QAQC protocols are not provided in the historic data.
assay data	laboratory procedures used and whether the technique is
and	considered partial or total.
laboratory	 For geophysical tools, spectrometers, handheld XRF instruments,
tests	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.
Verification	 The verification of significant intersections by either independent	The historic data cannot be verified and it has been collected from

Criteria	JORC Code explanation	Commentary
of sampling	or alternative company personnel.	publicly available sources.
and	 The use of twinned holes.
assaying	 Documentation of primary data, data entry procedures, data
	verification, data storage (physical and electronic) protocols.
	 Discuss any adjustment to assay data.
Location of	 Accuracy and quality of surveys used to locate drill holes (collar	The survey method for collar co-ordinates is not recorded in the
data points	and down-hole surveys), trenches, mine workings and other	historic data. Visual checks have been applied where possible
	locations used in Mineral Resource estimation.	using aerial photography and/or Google Earth imagery to locate
	 Specification of the grid system used.	holes correctly if errors are discovered. Selected drill collars have
	 Quality and adequacy of topographic control.	been field checked using handheld GPS with excellent correlation.
		The IP geophysical location data was captured using 12 channel
		GPS receivers.
Data	 Data spacing for reporting of Exploration Results.	Data has been collected at various spacings (<10m in places).
spacing and	 Whether the data spacing and distribution is sufficient to establish	Compositing has been applied to selected samples.
distribution	the degree of geological and grade continuity appropriate for the	The 2017 IP receiver stations were spaced at 50m intervals in a
	Mineral Resource and Ore Reserve estimation procedure(s) and	dipole-dipole configuration.
	classifications applied.
	 Whether sample compositing has been applied.
Orientation	 Whether the orientation of sampling achieves unbiased sampling	The historic data is to be used as a guide to future exploration and
of data in	of possible structures and the extent to which this is known,	at face value has been collected in a manner that is sensible with
relation to	considering the deposit type.	respect to general geological trends and deposit types.
geological	 If the relationship between the drilling orientation and the	More detailed interpretation will be required to assess this further.
structure	orientation of key mineralised structures is considered to have	The IP orientation survey was designed with a 50m sensor
	introduced a sampling bias, this should be assessed and reported	spacing across the strike of the stratigraphy (ie E-W). This
	if material.	resolution is considered adequate and was planned with forward
		modelling of a number of potential target sizes and geometries.
Sample	 The measures taken to ensure sample security.	Due to the historic nature of the data presented, this cannot be
security		determined.
Audits or	 The results of any audits or reviews of sampling techniques and	No external audits or reviews have been conducted apart from
reviews	data.	internal company review during the compilation of the historical
		data.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary
Mineral	 Type, reference name/number, location and ownership including	The Holleton Project consists of a single granted exploration
tenement	agreements or material issues with third parties such as joint	license (E77/2334), and three pending exploration licenses
and land	ventures, partnerships, overriding royalties, native title interests,	(E77/2458, E70/4994 and E70/5033)
tenure	historical sites, wilderness or national park and environmental	The granted tenure is 100% owned by Montezuma Mining
status	settings.	Corporation Ltd.
	 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.
Exploration	 Acknowledgment and appraisal of exploration by other parties.	The historical exploration data has been collected by various
done by		parties and has been reported to high standards.
other		The methods of exploration and techniques used are considered
parties		appropriate for the deposit types sought (Au)
Geology	 Deposit type, geological setting and style of mineralisation.	The majority of the historical exploration has been focused on the
		discovery of Archean lode style and orogenic gold deposits.
Drill hole	 A summary of all information material to the understanding of the	Refer to historical ASX releases.
Information	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.
Data	 In reporting Exploration Results, weighting averaging techniques,	Results have been presented as collected from historic data
aggregation	maximum and/or minimum grade truncations (eg cutting of high	sources.
methods	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 lowgrade results, the

Criteria	JORC Code explanation	Commentary
	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.
Relationshi	 If the geometry of the mineralisation with respect to the drill hole	Only downhole lengths are reported.
p between	angle is known, its nature should be reported.	Further work is required to determine exact orientations due to the
mineralisati	 If it is not known and only the down hole lengths are reported,	historic nature of the data.
on widths	there should be a clear statement to this effect (eg ‘down hole
and	length, true width not known’).
intercept
lengths
Diagrams	 Appropriate maps and sections (with scales) and tabulations of	Refer to document.
	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	The historic data presented is to illustrate trends only and all
reporting	practicable, representative reporting of both low and high grades	available data is provided.
	and/or widths should be practiced to avoid misleading reporting of
	_Exploration Results. _
Other	 Other exploration data, if meaningful and material, should be	Refer to document.
substantive	reported including (but not limited to): geological observations;
exploration	geophysical survey results; geochemical survey results; bulk
data	samples – size and method of treatment; metallurgical test results;
	bulk density, groundwater, geotechnical and rock characteristics;
	potential deleterious or contaminating substances.
Further	 The nature and scale of planned further work (eg tests for lateral	Future work will include further compilation and detailed
work	extensions or depth extensions or large-scale step-out drilling).	interrogation of the historic data.
	 Diagrams clearly highlighting the areas of possible extensions,	Based on the outcomes of the ongoing exploration, follow-up and
	including the main geological interpretations and future drilling	or extension work will be carried out on the project.
	_areas, provided this information is not commercially sensitive. _