ELEMENT 25 LIMITED — Regulatory Filings 2017

Feb 6, 2017

ABOUT MONTEZUMA MINING

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7 FEBRUARY 2017

YAMARNA EXPLORATION UPDATE

Montezuma Mining Company Ltd “Montezuma” or “Company” recently announced the completion of a 20 reverse circulation drill hole programme for a total of 2,754m at the Company’s 100% owned Yamarna Gold Project, located approximately 20km along strike from the recently discovered multi-million ounce ore body at Gruyere[1] by Gold Road Resources Ltd (ASX:GOR).

Several holes intersected broad zones of alteration including silica, biotite and sericite overprinting, associated with quartz veining +/- sulphides. The alteration occurs over zones of up to 40m downhole and is interpreted to have resulted from a significant hydrothermal event.

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.

MARKET DATA

ASX code: MZM Share price: $0.175 Shares on issue: 83.5M Market capitalisation: $14.6M Cash (at 31 December 2016): ~$4.6M Investments: ~$7.5M

BOARD AND MANAGEMENT

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

The drilling was completed at the Jatz, Le Snak and Salada prospects following a regional integrated structural review using the available aeromagnetic, gravity and drilling datasets.

The favourable geology was associated with significant gold anomalism in places and further confirmed the kilometre scale Jatz trend.

As detailed in table 1, a number of the recent results are based on composite samples which will need to be resplit to 1m intervals to better define the mineralised zones.

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1 http://www.goldroad.com.au/document/gruyere-resource-increases-to-6-2-million-ounces/

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

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Figure 1: Jatz and Le Snak prospects drillhole location plan. All intersections are downhole widths[2] .

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Figure 2: Regional prospect and drillhole location plan.

2 http://montezuma.com.au/images/uploads/160926_High_Grade_Gold_Trend_Confirmed_at_Jatz_FINAL.pdf

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 (ppm)
YARC061	593842	6891198	393	-60	90	108	12	16	4	0.2
YARC062	592308	6890406	394	-60	270	150	No significant assays
YARC063	593377	6890479	400	-60	270	150	48	52	4	0.1
And							54	58	4	0.1
And							66	70	4	0.2
And							106	110	4	0.1
YARC064	593423	6890477	400	-60	270	150	81	84	3	0.2
And							149	150	1	0.1
YARC065	593475	6890476	400	-60	270	156	40	52	12	0.3
					Including		40	44	4	0.5
YARC066	593526	6890478	400	-60	270	150	No significant assays
YARC067	593497	6889515	405	-60	270	96	No significant assays
YARC068	593552	6889503	405	-60	270	150	No significant assays
YARC069	593606	6889497	405	-60	270	150	51	53	2	0.2
YARC070	593400	6890100	398	-60	270	192	No significant assays
YARC071	593453	6890099	398	-60	270	150	No significant assays
YARC072	593499	6890104	398	-60	270	150	No significant assays
YARC073	593555	6890100	398	-60	270	150	28	32	4	0.1
YARC074	593427	6890305	398	-60	270	150	87	88	1	0.2
And							91	93	2	0.8
					Including		91	92	1	1.2
YARC075	593487	6890302	398	-60	270	150	31	32	1	0.1
YARC076	593525	6890302	398	-60	270	150	20	24	4	0.1
And							43	44	1	0.2
YARC077	593578	6890303	400	-60	270	144	81	85	4	0.2
YARC078	593340	6890485	400	-60	270	90	77	78	1	0.2
And							86	89	3	0.1
YARC079	594320	6890597	395	-60	90	138	No significant assays
YARC080	595785	6887005	447	-60	270	30	No significant assays

Table 1 Significant assays from RC drilling at the Yamarna Project. All intercepts are downhole widths.

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 Justin Brown 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 Brown was an employee of Montezuma Mining Company Ltd. Mr Brown 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 Brown 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 (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		•Reverse circulation (RC) percussion drill chips collected through a
techniques	specific specialised industry standard measurement tools appropriate		cyclone and cone splitter at 1m intervals (except for the first 8m of
	to the minerals under investigation, such as down hole gamma		transported overburden, which is collected from the bulk reject as 4m
	sondes, or handheld XRF instruments, etc). These examples should		composite samples).
	not be taken as limiting the broad meaning of sampling.		•Spitter is cleaned regularly during drilling.
	• Include reference to measures taken to ensure sample representivity		•Splitter is cleaned and levelled at the end of each hole.
	and the appropriate calibration of any measurement tools or systems		•Mineralisation determined qualitatively through rock type, sulphide
	used.		and quartz content and intensity of alteration.
	• Aspects of the determination of mineralisation that are Material to the		•Mineralisation determined quantitatively via assay.
	Public Report.		•RC samples pulverized to 75 µm with Au, Ag, As, Cu, Pb, Zn, Ni, Sb,
	• In cases where ‘industry standard’ work has been done this would be		Bi, W, Te, Mo determined by 10g ICP-MS.
	relatively simple (eg ‘reverse circulation drilling was used to obtain 1		•Additional follow-up sampling is routinely completed using 25 or 50g
	m samples from which	3 kg was pulverised to produce a 30 g charge	Fire Assay AAS
	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.
Drilling	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air		•Face sampling Reverse Circulation drilling.
techniques	blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple
	or standard tube, depth of diamond tails, face-sampling bit or other
	_type, whether core is oriented and if so, by what method, etc). _
Drill sample	• Method of recording and assessing core and chip sample recoveries		•Recoveries qualitatively noted at the time of drilling and recorded in
recovery	and results assessed.		the MZM database.
	• Measures taken to maximise sample recovery and ensure		•Sample splitter is cleaned at the end of each rod to ensure no sample
	representative nature of the samples.		hang-ups have occurred.
	• Whether a relationship	exists between sample recovery and grade	•Wet samples due to excess ground water are noted where present.
	and whether sample bias may have occurred due to preferential		•No relationship between grade and recovery has yet been
	loss/gain of fine/coarse material.		established.
Logging	• Whether core and chip samples have been geologically and		•All samples are logged to a level of detail to support future use in a
	geotechnically logged to a level of detail to support appropriate		mineral resource calculation should it be required.
	Mineral Resource estimation, mining studies and metallurgical		•Qualitative: Lithology, alteration, mineralisation.
	studies.		•Quantitative: Vein percentage, assaying for gold and other elements.
	• Whether logging is qualitative or quantitative in nature. Core (or		•All holes for their entire length are logged.
	costean, channel, etc)	photography.
	• The total length andpercentage of the relevant intersections logged.

Criteria		JORC Code explanation		Commentary
Sub-		• If core, whether cut or sawn and whether quarter, half or all core		•RC chips cone split, sampled dry where possible and wet when
sampling		taken.		excess ground water could not be prevented.
techniques		• If non-core, whether riffled, tube sampled, rotary split, etc and		•Sample condition (wet, dry or damp) is recorded at the time of
and sample		whether sampled wet or dry.		logging.
preparation		• For all sample types, the nature, quality and appropriateness of the		•The entire sample (approx. 2-3kg) has been dried and pulverised to
		sample preparation technique.		85% passing 75µm.
		• Quality control procedures adopted for all sub-sampling stages to		•Field duplicates have been collected and results are within expected
		maximise representivity of samples.		limits.
		• Measures taken to ensure that the sampling is representative of the in		•Sample sizes are considered appropriate for the grainsize of the
		situ material collected,	including for instance results for field	material sampled.
		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		•Fire assay and ICP-MS are considered appropriate for the detection
assay data		laboratory procedures used and whether the technique is considered		of low level gold.
and		partial or total.		•Assays were returned for the following elements: Au, Ag, As, Cu, Pb,
laboratory		• For geophysical tools, spectrometers, handheld XRF instruments, etc,		Zn, Ni, Sb, Bi, W, Te, Mo.
tests		the parameters used in determining the analysis including instrument		•Certified Reference Material (Standards and blanks) are submitted
		make and model, reading times, calibrations factors applied and their		with batches (approximately 1 in every 25 samples) and laboratory
		derivation, etc.		inserted standards, blanks and duplicates are also reported. The
		• Nature of quality control procedures adopted (eg standards, blanks,		results reported for are all within tolerable limits.
		duplicates, external laboratory checks) and whether acceptable levels		•Field duplicates are also inserted.
		of accuracy (ie lack of bias) and precision have been established.		•Gold is apparently nuggetty in the highest grade intervals with
				duplication between laboratory and field duplicates variable.
				Averaginghas been applied to these highestgrade intervals.
Verification		• The verification of significant intersections by either independent or		•All data have been checked internally for correctness by senior MZM
of sampling		alternative company personnel.		geological and corporate staff.
and		• The use of twinned holes.		•All data is collected via Geobank Mobile software and uploaded into
assaying		• Documentation of primary data, data entry procedures, data		the MZM Geobank Database following validation.
		verification, data storage (physical and electronic) protocols.		•No adjustments have been made to assay data.
		• Discuss any adjustment to assay data.
Location of		• Accuracy and quality of surveys used to locate drill holes (collar and		•All location points were collected using handheld GPS in MGA 94 –
data points		down-hole surveys), trenches, mine workings and other locations		Zone 51.
		used in Mineral Resource estimation.		•Downhole surveys are conducted at approximately 50m intervals
		• Specification of the grid system used.		using industry standard downhole survey tools.
		• Quality and adequacy of topographic control.

Criteria	JORC Code explanation		Commentary	Commentary
Data spacing	• Data spacing for reporting of Exploration Results.		•	Drillhole collars are spaced at various intervals.
and	• Whether the data spacing and distribution is sufficient to establish the		•	Hole spacing is appropriate for drilling at this early stage in the
distribution	degree of geological and grade continuity appropriate for the Mineral			exploration process.
	Resource and Ore Reserve estimation procedure(s) and		•	Sample compositing has been applied for only the top 8m of each
	classifications applied.			hole in transported overburden, the remainder being sampled at 1m
	• Whether sample compositing has been applied.			intervals.
Orientation	• Whether the orientation of sampling achieves unbiased sampling of		•	The orientation of structures is not known with certainty but drilling
of data in	possible structures and the extent to which this is known, considering			was conducted using appropriate orientations for interpreted
relation to	the deposit type.			structures.
geological	• If the relationship between the drilling orientation and the orientation		•	Bias introduced by drill orientation with respect to structures is not
structure	of key mineralised structures is considered to have introduced a			known.
	sampling bias, this should be assessed and reported if material.
Sample	• The measures taken to ensure sample security.		•	Chain of custody was managed by company representatives and is
security				considered appropriate. All samples are bagged in a tied numbered
				calico bag, grouped into larger polyweave bags and cable tied.
				Polyweave bags are placed into larger bulky bags with a sample
				submission sheet and tied shut. Consignment note and delivery
				address details are written on the side of the bag and delivered to Toll
				in Laverton. The bags are delivered directly to MinAnalytical in
				Canning Vale, WA who are NATA accredited for compliance with
				ISO/IEC17025:2005.
Audits or	• The results of any audits or reviews of sampling techniques and data.		•	No external audits or reviews have been conducted apart from
reviews				internal company review.

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		•E38/2889 is 100% owned by Montezuma Mining Company Limited
tenement	agreements or material issues with third parties such as joint		and is in good standing and there are no known impediments to
and land	ventures, partnerships, overriding royalties, native title interests,		maintaining a licence to operate in the area.
tenure status	historical sites, wilderness or national park and environmental		•The land on which E38/2889 is situated within Aboriginal Reserve
	settings.		20396. Montezuma Mining Company Limited has obtained “Mining
	• The security of the tenure held at the time of reporting along with any		Entry Permits” to operate within the licence area.
	known impediments to	obtaining a licence to operate in the area.
Exploration	• Acknowledgment and appraisal of exploration by other parties.		•Very little exploration has been undertaken in the area of E38/2889
done by			previously. The most detailed work was carried out by WMC during
other parties			the mid-1990’s where they collected -75um soil samples on a regional
			scale. WMC did not follow-up the low tenor anomalies they defined in
			the current work area at the time.
Geology	• Deposit type, geological setting and style of mineralisation.		•Not enough information has been gathered to adequately define the
			precise geology in the area as it is largely covered in recent sand.
			•Early observations indicate that the mineralisation present at
			Yamarna appears to be part of a typical Yilgarn Craton, Archaean,
			shear hosted, meso-thermal style system.
Drill hole	• A summary of all information material to the understanding of the		•See appendix to the release.
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,		•No top-cuts have been applied when reporting results.
aggregation	maximum and/or minimum grade truncations (eg cutting of high		•First assay from the interval in question is reported (i.e. Au1) unless
methods	grades) and cut-off grades are usually Material and should be stated.		the interval is very high grade and duplicates performed erratically
	• Where aggregate intercepts incorporate short lengths of high grade		due to nuggety gold. In such cases, an average of several
	results and longer lengths of lowgrade results, theprocedure used		determinations has been reported.

Criteria	JORC Code explanation		Commentary
	for such aggregation should be stated and some typical examples of		•Aggregate sample assays calculated using a length weighted
	such aggregations should be shown in detail.		average.
	• The assumptions used for any reporting of metal equivalent values		•Significant grade intervals based on intercepts > 0.2 g/t gold.
	should be clearly stated.		•No metal equivalent values have been used for reportingof results.
Relationship	• If the geometry of the mineralisation with respect to the drill hole		•Not enough information has been gathered to adequately define the
between	angle is known, its nature should be reported.		precise geology in the area as it is largely covered in recent sand.
mineralisatio	• If it is not known and only the down hole lengths are reported, there		•True widths are not known, however, initial observations indicate the
n widths and	should be a clear statement to this effect (eg ‘down hole length, true		drilling is appropriate to the interpreted orientation of mineralising
intercept	width not known’).		structures and downhole widths will approximate true widths.
lengths
Diagrams	• Appropriate maps and	sections (with scales) and tabulations of	•Refer to figures in 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	•All drillhole locations are reported and a table of significant intervals is
reporting	practicable, representative reporting of both low and high grades		provided in the release text.
	and/or widths should be practiced to avoid misleading reporting of
	Exploration Results.
Other	• Other exploration data, if meaningful and material, should be reported		•All meaningful and material information is reported.
substantive	including (but not limited to): geological observations; geophysical
exploration	survey results; geochemical survey results; bulk samples – size and
data	method of treatment; metallurgical test results; bulk density,
	groundwater, geotechnical and rock characteristics; potential
	deleterious or contaminating substances.
Further work	• The nature and scale of planned further work (eg tests for lateral		•Drilling at the Yamarna Project is continuing at the present time.
	extensions or depth extensions or large-scale step-out drilling).
	• Diagrams clearly highlighting the areas of possible extensions,
	including the main geological interpretations and future drilling areas,
	provided this information is not commercially sensitive.