Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

Sign up Log in

EVOLUTION MINING LIMITED Regulatory Filings 2016

Oct 16, 2016

64885_rns_2016-10-16_8d296124-58e7-4ed1-93f7-597da1c3572f.pdf

Regulatory Filings

Open in viewer

Opens in your device viewer

==> picture [110 x 78] intentionally omitted <==

QUARTERLY REPORT – For the period ending 30 September 2016

HIGHLIGHTS

September quarter highlights

  • Quarterly Group gold production of 205,307 ounces

  • C1 cash costs of A$753 per ounce (US$571/oz)[1]

  • Group All-in Sustaining Cost (AISC)[2] of A$1,060 per ounce (US$804/oz)[1]

  • Operating mine cash flow of A$169.3 million

  • Net mine cash flow of A$111.4 million

  • A$90.0 million in debt repayments

  • Final dividend of A$29.4 million paid at the increased payout rate of 4% of revenue

  • Strong results from Stage H resource definition drilling at Cowal. New significant intersections:

  • 71m grading 6.92g/t Au from 572m (E42D1711F)

  • 52m grading 4.63g/t Au from 708m (E42D1717)

  • Narrow, high-grade vein intersected 1km east of Frog’s Leg at Mungari

  • Significant intersection: 0.4m (0.4m etw) grading 34.3g/t Au from 301m (PDDD0014)

  • Mt Carlton drill results providing confidence in the continuity of mineralisation below the V2 reserve pit

  • New significant intersection: 11m (7.78m etw) grading 21.23g/t Au from 171m (HC16DD1203)

  • A$880.0 million acquisition of economic interest in Ernest Henry copper-gold mine[3]

  • A$401.6 million equity entitlement offer completed

  • New A$475.0 million Senior Secured Syndicated Term debt facility agreed

  • Sale of Pajingo gold mine[4] successfully completed

  • FY17 production guidance unchanged: 800,000 – 860,000oz at an AISC of A$900 – A$960 per ounce

Consolidated production and sales summary

Units Dec 15
**quarter **		 Mar 16
quarter		 Jun 16
quarter		 Sep 16
quarter
Goldproduced oz 203,700 208,963 216,644 205,307
By-product silverproduced oz 169,767 242,328 263,256 268,175
C1 Cash Cost A$/oz 759 752 732 753
All-In Sustaining Cost A$/oz 1,016 1,015 1,117 1,060
All-in Cost5 A$/oz 1,164 1,125 1,211 1,174
Gold sold oz 205,863 203,910 226,558 205,858
Achievedgoldprice A$/oz 1,536 1,614 1,666 1,708
Silver sold oz 169,767 217,042 287,813 253,410
Achieved silverprice A$/oz 20 20 24 26

  1. Using the average AUD:USD exchange rate for the September 2016 quarter of 0.7585

  2. Includes C1 cash cost, plus royalty expense, sustaining capital, general corporate and administration expense. Calculated on per ounce sold basis 3. Refer to ASX announcement entitled “Acquisition of Economic Interest in Ernest Henry and Capital Raising” release on 24 August 2016 4. Includes the Twin Hills and Wirralie tenement packages

Includes AISC plus growth (major project) capital and discovery expenditure. Calculated on per ounce sold basis

Evolution Mining Limited Quarterly Report September 2016

1

==> picture [83 x 59] intentionally omitted <==

OVERVIEW

Group gold production for the September 2016 quarter was 205,307 ounces (Jun qtr: 216,644oz). Average C1 cash cost was A$753/oz (Jun qtr: A$732/oz) and AISC[1] was A$1,060/oz (Jun qtr: A$1,117/oz). Using the average AUD:USD exchange rate for the quarter of 0.7585, Evolution’s Group C1 cash cost equated to US$571/oz and Group AISC to US$804/oz.

In the September 2016 quarter Evolution delivered operating mine cash flow of A$169.3 million and net mine cash flow, post all sustaining and major capital, of A$111.4 million (Jun qtr: operating cash flow A$184.2 million; net mine cash flow A$119.5 million). This strong operational cash flow allowed Evolution to make debt repayments totalling A$90.0 million during the quarter.

As at 30 September 2016, outstanding debt comprised of A$75.0 million in the Senior Secured Syndicated Revolver Facility and A$120.0 million in the Senior Secured Syndicated Term Facility B. The Group cash balance at 30 September 2016 was A$435.3 million.

Evolution completed a A$401.6 million equity entitlement offer in September 2016. These funds, together with cash and a new A$475.0 million Senior Secured Syndicated Term Facility D, will be used to pay the A$880.0 million acquisition cost to Glencore on completion of the Ernest Henry transaction.

Evolution made its seventh consecutive dividend payment during the quarter. In June 2016 Evolution increased its dividend policy from 2% to 4% of revenue which was effective for the FY16 final dividend. Cash dividends totalling A$25.6 million (net of the DRP) were returned to shareholders in September.

Results of the Cowal definition drilling program are continuing to confirm grade distribution in the Stage H pit design, increase resource confidence and extend the resource beyond the current pit limits.

At Mungari, a high-grade, laminated vein was intersected in a diamond hole 1km east of Frog’s Leg along with a new zone of mineralisation identified at the Julius prospect 1.5km south of Johnson’s Rest.

Recent drilling at Mt Carlton has verified continuity of high-grade mineralisation beneath the pit. The new results will be used to evaluate a range of pit extension and underground mining options.

On 24 August 2016 Evolution announced the acquisition of an economic interest in the Ernest Henry mine – a large scale, long life, copper-gold asset operated by Glencore plc. Evolution’s economic interest consists of:

  • 100% of gold and 30% of copper and silver produced during the current 11 year Life of Mine plan

  • 30% contribution to current Life of Mine production costs

  • 49% interest in all copper, gold and silver production beyond current Life of Mine plan

  • An agreement to work together to establish a regional exploration joint venture

If Evolution had owned this asset in FY16 it would have delivered pro forma production of 88,000 ounces of gold at an AISC of A$(59) per ounce and a net mine cash flow of A$142.0 million. The transaction remains subject to Foreign Investment Review Board approval and is expected to close in the December 2016 quarter.

The sale of the Pajingo gold mine and surrounding exploration tenements to Minjar Gold was successfully completed on 1 September 2016. Evolution has now received the A$41.9 million upfront cash payment from Minjar Gold. The sale agreement also included a 1% NSR (net smelter return) royalty of up to A$10.0 million payable to an Evolution subsidiary for future gold production above 130,000 ounces from Pajingo.

==> picture [290 x 160] intentionally omitted <==

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

Cracow 21,554
38,295
Pajingo 10,991
Mt Rawdon
Sep qtr 24,878
Edna May 2016
Mt Carlton ounces
20,012
Cowal 64,032
Mungari 25,544
----- End of picture text -----

  1. AISC includes C1 cash cost, plus royalty expense, sustaining capital, general corporate and administration expense. Calculated on per ounce sold basis

Evolution Mining Limited Quarterly Report September 2016

2

==> picture [83 x 59] intentionally omitted <==

OVERVIEW

Group safety performance

Group total recordable injury frequency rate as at 30 September 2016 was 8.8 (30 June 2016: 9.7). The lost time injury frequency rate was 1.1 (30 June 2016: 1.8). Compliance with critical controls for the top five principal hazards at each site is a focus for FY17. There is also a continued focus on reducing vehicle incidents.

As at 30 Sep 2016 LTI LTIFR TRIFR
Cowal 0 1.1 5.7
Mungari 0 2.7 9.4
Mt Carlton 0 0 2.2
Mt Rawdon 0 0 9.4
Edna May 0 1.7 3.5
Cracow 0 0 18.8
Pajingo 0 2.0 18.1
Group 0 1.1 8.8

LTI: Lost time injury. A lost time injury is defined as an occurrence that resulted in a fatality, permanent disability or time lost from work of one day/shift or more

LTIFR: Lost time injury frequency rate. The frequency of injuries involving one or more lost workdays per million hours worked. Results above are based on a 12 month moving average

TRIFR: Total recordable injury frequency rate. The frequency of total recordable injuries per million hours worked. Results above are based on a 12 month moving average

Evolution Mining Limited Quarterly Report September 2016

3

==> picture [83 x 59] intentionally omitted <==

OVERVIEW

September 2016 quarter production and cost summary

September 2016 quarter Units Cowal Mungari Mt
Carlton		 Mt
Rawdon		 Edna
May		 Cracow **Pajingo5 ** Group
UG lat dev - capital m - 510 - - - 433 503 1,446
UG lat dev - operating m - 531 - - - 312 222 1,065
Total UG lateral development m - 1,041 - - - 746 725 2,511
UG ore mined kt - 176 - - - 127 62 365
UG grade mined g/t - 4.25 - - - 5.36 4.45 4.67
OP capital waste kt - 467 379 1,689 279 - - 2,814
OP operating waste kt 707 1,783 245 1,477 1,293 - - 5,506
OP ore mined kt 2,540 340 508 1,292 541 - - 5,220
OP grade mined g/t 1.19 1.28 3.56 0.87 1.17 - - 1.35
Total ore mined kt 2,540 516 508 1,292 541 127 62 5,585
Total tonnes processed kt 1,750 438 200 867 688 140 75 4,159
Grade processed g/t 1.36 2.96 5.36 0.99 0.98 5.11 4.79 1.77
Recovery % 83.4 91.7 89.3 89.7 92.5 93.8 95.4 87.9
Gold produced oz 64,032 38,295 25,544 24,878 20,012 21,554 10,991 205,307
Silver produced oz 76,508 6,505 114,432 43,416 6,594 10,292 10,429 268,175
Copper produced t - - 345 - - - - 345
Gold sold oz 68,747 38,623 22,389 24,562 19,488 21,560 10,489 205,858
Achieved gold price A$/oz 1,715 1,648 1,803 1,700 1,739 1,701 1,644 1,708
Silver sold oz 76,508 6,505 99,666 43,416 6,594 10,292 10,429 253,410
Achieved silver price A$/oz 26 26 27 26 26 26 26 26
Copper sold t - - 295 - - - - 295
Achieved copper price A$/t - - 6,217 - - - - 6,217
Cost Summary
Mining A$/prod oz 261 505 160 361 624 450 418 370
Processing A$/prod oz 441 248 255 374 598 214 252 355
Administration and selling costs A$/prod oz 121 88 219 122 143 123 149 131
Stockpile adjustments A$/prod oz (104) 61 (132) (282) (29) 81 102 (61)
By-product credits A$/prod oz (31) (4) (178) (45) (9) (12) (25) (42)
C1 Cash Cost (produced oz) A$/prod oz 687 897 323 530 1,327 856 897 753
C1 Cash Cost (sold oz) A$/sold oz 640 890 369 537 1,363 856 940 751
Royalties A$/sold oz 52 43 145 92 74 91 97 74
Gold in Circuit and other
adjustments		 A$/sold oz 26 (19) (80) (9) (25) (2) (102) (12)
Sustaining capital1,2 A$/sold oz 176 159 302 126 40 290 473 195
Reclamation and other
adjustments		 A$/sold oz 13 8 43 19 20 18 14 17
Administration costs3 A$/sold oz - - - - - - - 35
All-in Sustaining Cost A$/sold oz 907 1,081 779 764 1,472 1,253 1,422 1,060
Major project capital A$/sold oz - 73 99 231 228 45 136 85
Discovery A$/sold oz (0) 86 9 1 1 36 19 29
All-in Cost A$/sold oz 907 1,240 887 996 1,701 1,334 1,577 1,174
Depreciation & Amortisation4 A$/prod oz 245 523 500 470 497 524 0 377

  1. Sustaining Capital for WGC purposes includes 60% UG mine development capital

  2. Group Sustaining Capital includes a reduction of A$1.67/oz for Corporate capital expenditure from project capitalisations

  3. Includes Share Based Payments

  4. Group Depreciation and Amortisation includes Corporate Depreciation and Amortisation of A$0.95/oz

  5. Represents 62 days of production. Pajingp was sold on 1 September 2016

Evolution Mining Limited Quarterly Report September 2016

4

==> picture [84 x 59] intentionally omitted <==

OPERATIONS

Cowal, New South Wales (100%)

Cowal produced 64,032oz of gold in the September quarter at a C1 cash cost of A$687/oz and AISC of A$907/oz (Jun 2016 qtr: 65,926oz, C1 A$612/oz and AISC A$915/oz).

Mine operating cash flow for the quarter was A$63.7 million. Cowal delivered a net mine cash flow of A$51.5 million (Jun 2016 qtr: A$42.2 million), post sustaining capital of A$12.2 million.

Two shutdowns occurred in the processing plant during the quarter. A shutdown in September was brought forward from October due to weather conditions temporarily impacting operations.

Mining activities focussed on the Stage G cutback to a current operating level of 921mRL.

E42 resource definition drilling in support of the Stage H cutback feasibility study is progressing well and delivering strong results. This program was the major contributor to sustaining capital expenditure during the quarter.

Late in the quarter the NSW Central West region was impacted by a severe weather event which caused flooding in the local communities of Forbes and Condobolin. Evolution deployed Cowal’s Emergency Response Team and additional crews and vehicles to assist the SES in mitigating the impact on these communities. This weather event had no material impact on Cowal production.

Mungari, Western Australia (100%)

Mungari produced 38,295oz of gold in the September quarter at a C1 cash cost of A$897/oz and AISC of A$1,081/oz (June 2015 qtr: 43,448oz, C1 A$643/oz and AISC A$944/oz).

Mine operating cash flow for the quarter was A$30.0 million. Mungari delivered a net mine cash flow of A$21.0 million, post sustaining capital and major capital of A$8.9 million.

The Frog’s Leg underground mine produced 176kt at an average grade of 4.25g/t Au. The lower grade was due to the timing of access to the highgrade stopes at Mist and lower than anticipated grade in various stoping areas mined during the quarter. Grades will increase during the December quarter as scheduled production accesses higher grade stopes.

Productivity improvements saw development metres increase by 24% compared to the prior quarter with no change in equipment or resources.

Mining of the White Foil open pit focussed on Stage 2b and Stage 3. Total open pit material movement of 2.6Mt was on plan despite the significant winter rain impact during July and August. In the month of September mining costs per tonne were 9% lower than the FY16 average. The introduction of larger 785t trucks, the completion of Stage 3 setup works and expected better weather should see unit mining rates continue to improve in the December quarter.

The plant processed 438kt during the quarter at an average recovery rate of 91.7%. Lower recovery rates were predominantly due to paste dilution and lower feed grade.

==> picture [173 x 134] intentionally omitted <==

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

839 757 900
915 907
600
300
0
FY16 Q2 FY16 Q3 FY16 Q4 FY17 Q1
Production gold (oz) AISC (A$/oz)
70,803oz
65,926oz 64,032oz
54,792oz
----- End of picture text -----

==> picture [175 x 152] intentionally omitted <==

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

1,227
1,081 1,200
961 944
900
600
300
0
FY16 Q2 FY16 Q3 FY16 Q4 FY17 Q1
Production gold (oz) AISC (A$/oz)
43,448oz
40,692oz
38,295oz
33,963oz
----- End of picture text -----

Evolution Mining Limited Quarterly Report September 2016

5

==> picture [84 x 59] intentionally omitted <==

OPERATIONS

Mt Carlton, Queensland (100%)

Mt Carlton produced of 25,544oz of payable gold contained in 13,056 dry metric tonnes (dmt) of gold concentrate. Concentrate shipments for the September quarter were 11,260dmt across six shipments. A total of 199,802 tonnes of V2 ore grading 5.36g/t Au was treated during the quarter.

Costs remain low with C1 cash costs of A$323/oz and an AISC of A$779/oz (Jun 2016 qtr: C1 A$531/oz, AISC A$917/oz).

Mine operating cash flow for the quarter was A$25.5 million. Mt Carlton delivered a net mine cash flow of A$16.5 million, post sustaining capital and major capital of A$9.0 million.

A 2.5m lift on the tailings storage facility was completed during the quarter. Good progress has been made on the gravity recovery gold circuit with commissioning expected in the March 2017 quarter.

Mining of the Stage 2 pit was completed during the quarter. The December quarter will see accelerated mining of the Stage 3 pit to allow access to high-grade ore in the second half of FY17.

Resource definition drilling at Mt Carlton has verified continuity of high grade mineralisation beneath the V2 pit. The new results will be used to evaluate a range of pit extension and underground mining options.

==> picture [173 x 131] intentionally omitted <==

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

991 779 900
679
507 600
300
0
FY16 Q2 FY16 Q3 FY16 Q4 FY17 Q1
Production gold (oz) AISC (A$/oz)
30,026oz 29,337oz 29,481oz 25,544oz
----- End of picture text -----

Mt Rawdon, Queensland (100%)

Mt Rawdon produced 24,878oz of gold in the September quarter at a C1 cash cost of A$530/oz and AISC of A$764/oz (Jun 2016 qtr: 22,035oz, cash cost A$679/oz, AISC A$1,082/oz).

Mine operating cash flow for the quarter was A$19.3 million. Mt Rawdon delivered a net mine cash flow of A$10.5 million, post sustaining capital and major capital of A$8.8 million.

The lower costs and increased cash flow represents a significant turnaround for Mt Rawdon predominantly due to a declining strip ratio and increased grades.

Mining activities were focussed on the continuation of exposing Stage 4 ore and the completion of Stage 3. The ore extracted from Stage 4 provided the majority of the mill feed and continues to reconcile positively against the resource model.

Total ore mined of 1.29Mt at an average grade of 0.87g/t Au provided capacity during the September quarter to stockpile the lower grade ore. The increased ore stockpiles and completion of Stage 3 will provide optionality during the upcoming wet season.

In the December quarter, work will focus on waste and ore movements from Stage 4 western wall while supplying ore to the mill from Stage 4 north. This is expected to increase the operation’s ore blending capacity and enable consistent mill feed.

==> picture [174 x 134] intentionally omitted <==

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

50,000 1,227 1,215 1,082
764
25,000
0
FY16 Q2 FY16 Q3 FY16 Q4 FY17 Q1
Production gold (oz) AISC (A$/oz)
24,878oz
19,777oz 14,691oz 22,035oz
----- End of picture text -----

Evolution Mining Limited Quarterly Report September 2016

6

==> picture [84 x 59] intentionally omitted <==

OPERATIONS

Edna May, Western Australia (100%)

Gold production of 20,012oz was achieved in the September quarter at a C1 cash cost of A$1,327/oz and AISC of A$1,472/oz (Jun 2016 qtr: 17,895oz, C1 cash cost A$1,516/oz, AISC A$1,554/oz).

Costs remained unacceptably high during the September quarter. The lower material movement in FY16 due to weather events and mine scheduling issues continued to impact performance. A new site general manager has been appointed and a full review of the operation is being undertaken.

Mine operating cash flow for the quarter was A$5.3 million. Edna May delivered a net mine cash flow of A$0.1 million, post sustaining capital and major capital of A$5.2 million.

Mining was focussed on the Stage 2 cutback leading to an increase in tonnes mined in the September quarter. Mined grade of 1.17g/t was 30% higher than the previous quarter as mining progressed into the base of the original Stage 1 pit.

The development of the underground portal has been successfully completed and has broken through into the existing decline. By the end of September approximately 50m of decline had been rehabilitated.

The quarter included a five day shutdown in July to change out steel linings in the SAG Mill and a one day shutdown in September to change out SAG Mill lifters.

Pajingo, Queensland (100%)

The sale of Pajingo was completed on 1 September 2016. During the 62 days of the September quarter still under Evolution ownership Pajingo produced 10,991oz of gold at a C1 cash cost of A$897/oz and an AISC of A$1,422/oz.

Cracow, Queensland (100%)

Cracow produced 21,554oz of gold in the September quarter at a C1 cash cost of A$856/oz, and AISC of A$1,253/oz (June 2016 qtr: 21,281oz, C1 A$877/oz, AISC A$1,366/oz).

140kt of ore was processed at an average grade of 5.11g/t Au. Gold recovery was 93.8% with plant utilisation of 99.1%.

Cracow has now operated for 37 consecutive months without a lost time injury – a significant safety achievement.

Mine operating cash flow for the quarter was A$18.0 million. Cracow delivered a net mine cash flow of A$10.7 million, post sustaining capital and major capital of A$7.3 million.

The increase in AISC in the September quarter related to capital expenditure on mobile equipment rebuilds, a TSF lift, increased resource definition drilling and the Fine Grind Mill project.

A total of 127kt of ore was mined at an average grade of 5.36g/t Au. Primary ore sources were Kilkenny, Empire and Klondyke ore bodies.

Operating development of 312m and capital development of 433m were achieved during the quarter. Development focussed on the Coronation and the Griffin deposits. A drill platform for testing the Baz and Killarney deposits was completed. Stoping and production drilling were a priority to establish the Kilkenny transverse stopes and the Empire 1874 stope.

==> picture [175 x 126] intentionally omitted <==

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

2,100
1,658 1,554 1,800
1,494 1,472
1,500
1,200
900
600
300
0
FY16 Q2 FY16 Q3 FY16 Q4 FY17 Q1
Production gold (oz) AISC (A$/oz)
20,012oz
18,266oz 17,098oz 17,895oz
----- End of picture text -----

==> picture [178 x 134] intentionally omitted <==

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

50,000 1,366 1,253 1,500
1,109 1,200
858
900
25,000
600
300
0 0
FY16 Q2 FY16 Q3 FY16 Q4 FY17 Q1
Production gold (oz) AISC (A$/oz)
22,120oz 23,335oz 21,281oz 21,554oz
----- End of picture text -----

Evolution Mining Limited Quarterly Report September 2016

7

==> picture [84 x 59] intentionally omitted <==

CORPORATE

Financials

The September quarter again highlighted the strength of Evolution’s cash generating asset base with operating mine cash flow of A$169.3 million (June 2016 qtr: A$184.2 million) and net mine cash flow of A$111.4 million (Jun 2016 qtr: A$119.5 million).

Total Group gold sold was 205,858oz at an average price of A$1,708/oz (June 2016 qtr: 226,558oz at A$1,666/oz). Deliveries into the hedge book totalled 63,751oz at an average price of A$1,576/oz with the remaining 142,107oz of gold delivered on the spot market at an average price of A$1,760/oz.

All sites were again cash positive after meeting their sustaining and major capital. Cowal net mine cash flow of A$51.5 million was just below its quarterly record while Mungari (A$21.0 million) and Mt Carlton (A$16.5 million) also contributed strongly. Mt Rawdon increased both operating (A$19.3 million) and net mine cash flow (A$10.5 million) on the back of higher production and lower sustaining capital.

Cash flow (A$M) Operating
Mine Cash
Flow		 Sustaining
Capital		 Major Projects
Capital1		 Net Mine Cash
Flow
Cowal 63.7 (12.1) (0.1) 51.5
Mungari 30.0 (4.2) (4.7) 21.0
Mt Carlton 25.5 (6.8) (2.2) 16.5
Mt Rawdon 19.3 (3.1) (5.7) 10.5
Edna May 5.3 (0.8) (4.4) 0.1
Cracow 18.0 (4.8) (2.5) 10.7
Pajingo 7.5 (2.8) (3.6) 1.1
September 16 Quarter 169.3 (34.6) (23.2) 111.4
  1. Major Projects Capital includes 100% of the UG mine development capital

Total capital expenditure for the quarter of A$57.9 million was in line with plan (Jun 2016 qtr: A$64.7 million). The main capital projects included: Cowal resource definition drilling (A$7.3 million); tailings storage facility lift at Mt Carlton (A$5.0 million); Edna May underground mine project (A$2.8 million); capital waste stripping or development at Mt Rawdon (A$5.7 million), Edna May (A$1.7 million), Mungari (A$1.6 million stripping, A$5.6M underground development), Cracow (A$2.4 million) and Pajingo (A$3.6M); and purchase of new equipment at Cracow (A$1.6M).

Discovery expenditure in the quarter totalled A$5.9 million (Jun 2016 qtr: A$10.6 million). This decrease reflects lower planned activity at Puhipuhi, and lower expenditure at Pajingo and Wirralie following the divestment of these assets during the quarter. Corporate administration costs for the quarter were A$6.1 million (Jun 2016 qtr: A$8.9 million) with the June quarter containing a number of financial year-end charges and adjustments.

The strong net mine cash flow and proceeds from the sale of Pajingo was directed towards continued debt reduction. The Company made debt repayments totalling A$90.0 million during the quarter.

Evolution paid a final dividend for the 2016 financial year of A$29.4 million (A$25.6 million net cash outflow after DRP) which reflected the new dividend policy announced in June 2016 which doubled the payout ratio to 4% of revenue.

During the quarter Evolution successfully completed an equity raising of A$401.6 million via a fully underwritten accelerated renounceable entitlement offer. The proceeds for the equity raising will be used, in conjunction with a new debt facility, to fund the acquisition of an economic interest in Ernest Henry.

At 30 September 2016 the gross debt outstanding under the Senior Secured Syndicated Revolving and Term Facility was A$195.0 million. This is comprised of A$75.0 million in the Senior Secured Syndicated Revolver

Evolution Mining Limited Quarterly Report September 2016

8

==> picture [84 x 59] intentionally omitted <==

CORPORATE

Facility and A$120.0 million in the Senior Secured Syndicated Term Facility B. The undrawn amount of the Senior Secured Syndicated Revolver Facility increased to A$225.0 million.

As a part of the Ernest Henry transaction Evolution has entered into a new Senior Secured Syndicated Term Facility D for A$475.0 million over a period of five years to October 2021. The Company finalised terms and executed the agreements for this new facility before the end of the September. Based on the Company outlook, the final amount of this new term facility is A$475.0 million which is A$25.0 million lower than the amount underwritten by the banks at the time of the announcement of the Ernest Henry transaction.

The amortisation profiles of the two Senior Secured Syndicated Term Facilities are as shown below.

==> picture [478 x 154] intentionally omitted <==

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

Facility B amortisation profile (A$M) Facility D amortisation profile (A$M)
20
135
80 120
70 100
80
10
20 30
FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22
Early Repayment Repayment Commitments Repayment Commitments
----- End of picture text -----

Debt repayment obligations for the remainder of FY17 amount to only A$30.0 million. Evolution remains focussed on reducing the Company’s debt profile. This is evidenced by the repayment of A$412.0 million of debt in the past 13 months.

The balance sheet and debt repayment commitments are supported by Evolution’s hedge book. As at 30 September 2016 the hedge book stood at 643,238oz at an average price of A$1,628/oz.

The Group cash balance at 30 September 2016 was A$435.3 million (30 June 2016: A$17.3 million). The table below shows the movement of cash for the September quarter. The acquisition and integration costs in the September quarter mainly relate to legal, accounting and ASX fees for the Pajingo disposal and the agreement to acquire an economic interest in Ernest Henry.

Cash flow (A$M) September 2016 qtr
Opening Cash Balance 1 July 2016 17.3
Net mine cash flow 111.4
Corporate and discovery (12.0)
Net Interest expense (4.8)
Dividendpayment(Net of DRP) (25.6)
Debt repayment (90.0)
Workingcapital movement (2.4)
Acquisition and integration costs (2.1)
Sale of Pajingo 41.9
Cash Balance(excluding equity raising) 33.7
EquityRaising 401.6
Closing Cash Balance 30 September 2016 435.3

Evolution Mining Limited Quarterly Report September 2016

9

==> picture [84 x 59] intentionally omitted <==

EXPLORATION

Exploration highlights

  • Dr Glen Masterman, VP Discovery and Chief Geologist, commenced employment in August 2016

  • Results of the Cowal resource definition drilling program are continuing to confirm grade distribution in the Stage H pit design, increase resource confidence and extend the resource beyond the pit limits. New zones of mineralisation have been intersected to the south-west of E42 and outside of the A$1800/oz resource limits

  • At Mungari, a high-grade, laminated vein was intersected in a diamond hole 1km east of Frog’s Leg. The new vein shares characteristics with the Raleigh deposit (further north). Work is ongoing to understand the significance of the results

  • Drilling at Mungari regional tenements identified a new zone of mineralisation at the Julius prospect 1.5km south of Johnson’s Rest

  • Recent drilling at Mt Carlton has confirmed continuity of high-grade mineralisation beneath the V2 pit. The new results will be used to evaluate a range of pit extension and underground mining options

  • FY17 exploration budget of A$25 – A$30 million

Cowal, New South Wales (100%)

Near mine exploration

E42 Stage H resource definition diamond and RC drilling program

Thirty nine diamond drill holes (30,997m) and six Reverse Circulation (RC) holes (1,560m) were completed as part of the E42 Stage H resource definition program and targeted mineralisation below the south-west wall. The program’s objective was to increase the resource classification to an Indicated Mineral Resource and the Ore Reserves inside the Stage H pit design. The diamond holes included five parent holes and 34 daughter (wedge) holes. Since commencement of the Stage H drilling program, a total of 83 RC and diamond holes for 43,000m (95% of program) have been drilled to the end of the September quarter.

Infill drill results have confirmed the continuity of mineralisation within the Stage H cutback design. Step-out drill holes have intersected new zones of mineralisation which extend the limits of mineralisation to the southwest of E42. The drill holes have intersected broad zones of mineralisation with robust grades. The occurrence of high-grade intercepts indicates the potential for an increase in the grade of the current Mineral Resource estimate. Mineralisation remains open down plunge.

New significant intercepts included[1] :

  • 71m grading 6.92g/t Au from 572m (E42D1711F)

  • 13m grading 3.70g/t Au from 755m (E42D1713B)

  • 20m grading 3.33g/t Au from 722m (E42D1715)

  • 52m grading 4.63g/t Au from 708m (E42D1717)

Previously reported intercepts from the quarter included[2] :

  • 62m grading 2.16g/t Au from 530m (E42D1711D)

  • 41m grading 6.46g/t Au from 583m (E42D1712)

  • 110m grading 1.43g/t Au from 704m (E42D1712A)

  • 14m grading 8.09g/t Au from 610m (E42D1713A)

  • 40m grading 2.76g/t Au from 485m (E42D1714)

Stage H diamond drilling is planned to conclude in the December quarter and the resource model will be updated to incorporate these results early in 2017. Due to the success of the program, step-out drilling commenced in late September. Holes are being collared between 100m and 150m south-west of the pit crest. The intent of the six-hole program is to extend the E42 Mineral Resource down plunge. A deep exploration hole is also planned to be drilled in the December quarter up to 300m from the pit crest. The aim is to test the continuity and extent of the E42 mineralised system. If successful, further infill and step-out drilling will be undertaken throughout H2 FY17.

  1. Reported intervals reported in this release are down hole widths as true widths are not currently known. An estimated true width (etw) is provided where possible
  1. Full details of these exploration results are provided in the report entitled “Cowal E42 Drilling Update” released to the ASX on 12 September 2016 and are available to view at www.asx.com.au

Evolution Mining Limited Quarterly Report September 2016

10

==> picture [84 x 59] intentionally omitted <==

EXPLORATION

==> picture [396 x 289] intentionally omitted <==

Figure 1: Cowal drill hole location plan showing reported drill holes

==> picture [393 x 252] intentionally omitted <==

Figure 2: Schematic section of E42D1711 significant intersections and model contours illustrating the robustness of the model within Stage H cutback

Evolution Mining Limited Quarterly Report September 2016

11

==> picture [84 x 59] intentionally omitted <==

EXPLORATION

==> picture [376 x 304] intentionally omitted <==

Figure 3: Schematic section of hole E42D1715 showing new zones of mineralisation outside of the model

==> picture [380 x 244] intentionally omitted <==

Figure 4: Schematic section of hole E42D1717 showing new zones of mineralisation outside of the model

Evolution Mining Limited Quarterly Report September 2016

12

==> picture [84 x 59] intentionally omitted <==

EXPLORATION

Mungari, Western Australia (100%)

Near mine exploration

Exploration drilling totalled 167 holes for 22,724m across the Mungari tenure and included diamond, RC and aircore drilling. The majority of drilling was undertaken at Johnson’s Rest/Broads Dam area, with additional targets tested in the Park Dam project area (1km east of the Frog’s Leg mine) and Area 11 located along the Kunanalling trend (acquired as part of the Phoenix Gold transaction[1] ).

In the Park Dam area, two diamond holes were drilled to test an interpreted north-south striking structure named Frog’s Leg East. Both drill holes encountered laminated quartz veins and base metal sulphide minerals, analogous to the mineralisation style seen at the Raleigh deposit. Gold mineralisation was intersected in both holes and significant intersections included:

  • 2.2m (2.0m etw) grading 5.8g/t Au from 150.7m (PDDD0014)

  • 0.4m (0.4m etw) grading 34.3g/t Au from 300.9m (PDDD0014)

  • 3.0m (2.7m etw) grading 1.4g/t Au from 305.0m (PDDD0014)

==> picture [391 x 196] intentionally omitted <==

Figure 5: Map showing location of Frog’s Leg East and the collar position of holes PDDD0013 & PDDD0014

Ground magnetics and gravity is planned to sharpen targeting of the follow-up drilling. The aim is to understand if results in holes PDDD0014 are potentially indicative of a new high-grade vein in the Mungari camp.

At Johnson’s Rest, consolidation of drilling data and geological modelling of results commenced. Deeper drilling is planned for the December quarter which will be incorporated into the geological model with the objective of delivering a Mineral Resource model for economic evaluation.

Follow up drilling from the framework program in the June quarter 2016 defined a new target called Julius. A total of 15 holes have defined a zone of anomalous mineralisation 950m long (Figure 6). Mineralisation is open to the south and at depth and will be followed up in the December quarter. Significant intersections at Julius included:

  • 16m (14.2m etw) grading 3.5g/t Au from 94m (ZSRC096)

  • 5m (4.5m etw) grading 7.4g/t Au from 73m (ZSRC097)

  • Acquisition of Phoenix Gold Limited by Evolution Mining Limited closed on 30 December 2015

Evolution Mining Limited Quarterly Report September 2016

13

==> picture [84 x 59] intentionally omitted <==

EXPLORATION

==> picture [450 x 258] intentionally omitted <==

Figure 6: Schematic long section of Julius mineralised zone

Regional aircore drilling testing for parallel zones to Johnson’s Rest commenced in September. No assay results have yet been returned. Evaluation of this area will continue in the December 2016 quarter.

Resource definition drilling

Frog’s Leg

A total of 10 holes for 1,845.3m were drilled at Mist and Rocket South and tested for high-grade mineralisation below the Dec15 Ore Reserve limits. Significant results returned at Mist included:

  • 4.7m (3.76m etw) grading 3.02g/t (FLRD198)

  • 5.2m (4.6m etw) grading 2.68g/t (FLRD201)

  • 8.5m (6.8m etw) grading 2.59g/t (FLRD202)

  • 14.2m (10.3m etw) grading 2.56g/t (FLRD203)

Final assays were also returned for Rocket South and the best result was:

  • 4.0m (1.1m etw) grading 9.82g/t (FLRD171)

Surface Drilling

Work completed during the quarter included the ranking and updating of the geological interpretation at White Foil and several regional open pit resources (acquired as part of the Phoenix Gold transaction). By quarter’s end, two rigs were mobilised to site to undertake a 2,550m RC and diamond drilling campaign. Both rigs are scheduled to remain onsite throughout Q2 FY17.

Mt Carlton, Queensland (100%)

Resource definition drilling

Infill drilling into the West and Link zones below the V2 pit continued during the quarter with a total of 25 diamond holes for 5,431m (HCDD1198-HCDD1222) completed. The program’s objective was to define the extent of high-grade mineralisation in each zone, increase the confidence of the resource classification to an Indicated Mineral Resource and to provide sufficient information for a range of open pit extension or

Evolution Mining Limited Quarterly Report September 2016

14

==> picture [84 x 59] intentionally omitted <==

EXPLORATION

underground mining options to be evaluated in Q2 FY17. The results were encouraging and confirmed the continuity of high-grade mineralisation within the West and Link zones. Significant intersections included:  11m (7.78m etw) grading 21.23g/t Au from 171m

  • including 7m (4.95 etw) grading 32.75g/t Au (HC16DD1203) – West zone

  • 7m (6.60m etw) grading 3.48g/t Au from 171m

  • including 2m (1.73 etw) 7.73g/t Au and 2m (1.73 etw) grading 3.17g/t Au (HC16DD1196) – Link zone

  • 7m (5.36m etw) grading 2.48g/t Au from 161m

  • including 3m (2.30 etw) grading 5.2g/t Au (HC16DD1201) – Link zone

==> picture [424 x 189] intentionally omitted <==

Figure 7: West zone schematic longitudinal section and significant intersections

==> picture [426 x 272] intentionally omitted <==

Figure 8: Mt Carlton drill hole location plan showing reported drill holes

Evolution Mining Limited Quarterly Report September 2016

15

==> picture [84 x 59] intentionally omitted <==

EXPLORATION

Cracow, Queensland (100%)

Regional exploration

A total of 2,609m of drilling was completed at Cracow, testing seismic targets within the Phoenix South Corridor and on the southern 2D2R seismic line.

Drill testing along the southern 2D2R seismic line concluded in July, with the completion of KRC156. Drilling intersected hydrothermal alteration and anomalous gold and associated pathfinder elements associated with an important fault structure. Further work will be completed to understand the significance of these results.

Regional exploration activities were ongoing, with structural mapping and rock chip sampling completed in the Cracow Creek – Buffel Hill structural corridor. A soil sampling and mapping program was completed at the Boughyard prospect. The focus in Q2 FY2017 will be on reconnaissance mapping and geochemical sampling in the southern and northern extents of the Cracow tenement.

Resource Definition Drilling

A total of 8,580m of resource definition drilling was completed at Coronation, Baz and Killarney. The infill drilling at Coronation confirmed the grade continuity and also identified that mineralisation is not closed off to the north of Zone 10 (Figure 9). Activity next quarter will focus on infill and extensional drilling at Coronation and drill testing at the Killarney, Baz and Denmead areas.

Significant intersections returned at Coronation included:

  • 19.05m (16.67m etw) grading 10.68g/t Au (CNU106)

  • 14.70m (14.58 m etw) grading 4.95g/t Au (CNU121)

  • 10.85m (10.84m etw) grading 6.30g/t Au (CNU122)

  • 16.00m (13.25m etw) grading 4.24g/t Au (CNU125)

  • 3.85m (3.40m etw) grading 18.89g/t Au (CNU128)

  • 15.40m (14.34m etw) grading 6.26g/t Au (CNU130)

Significant intersections returned at Baz included:

  • 5.8m (2.85m etw) grading 4.10g/t Au (BZU001)

  • 4.5m (3.4m etw) grading 11.73g/t Au (BZU002)

==> picture [193 x 195] intentionally omitted <==

Figure 9: Schematic section of Coronation

Tennant Creek, Northern Territory (earning 65% in Stage 1)

A 23 hole drilling program (for 6,290m) commenced late in the quarter to test deeper ironstone-hosted highgrade gold targets down dip and along strike of previously reported intersections at Edna Beryl. Joint Venture partner Emmerson Resources Limited will release assay results when they become available.

Puhipuhi, New Zealand (100%)

Drilling at the Puhipuhi project continued during the quarter. A total of four diamond drill holes were completed and a fifth hole is in progress (2,025m drilled to end of September). Holes are testing CSAMT and geochemical targets in a setting permissive of hosting low sulphidation epithermal veins. Approximately 4,000m of diamond drilling is planned for the Phase One program.

Further information on all reported exploration results included in this report is provided in the Drill Hole Information Summary and JORC Code 2012 Table 1 presented in Appendix 1 and 2 of this report.

Evolution Mining Limited Quarterly Report September 2016

16

==> picture [84 x 59] intentionally omitted <==

Forward looking statements

This report prepared by Evolution Mining Limited (or “the Company”) include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company’s control.

Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

Competent person statement

The information in this report that relates to Exploration Results listed in the table below is based on work compiled by the person whose name appears in the same row, who is employed on a full-time basis by Evolution Mining Limited and is a member of the institute named in that row. Each person named in the table below has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the JORC Code 2012. Each person named in the table consents to the inclusion in this report of the matters based on his information in the form and context in which it appears including sampling, analytical and test data underlying the results.

The Company confirms that it is not aware of any new information or data that materially affects the information included in this report. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the Report.

Activity Competent person Institute
Mungari mine exploration
 Andrew Engelbrecht Australasian Institute of Mining and Metallurgy
~~l~~
Mungari regional exploration		 Julian Woodcock Australasian Institute of Mining and Metallurgy
Cowal exploration results Joseph Booth Australasian Institute of Mining and Metallurgy
Mt Carlton exploration results Matthew Obiri-Yeboah Australasian Institute of Mining and Metallurgy
Cracow exploration results Christopher Wilson Australasian Institute of Mining and Metallurgy

Evolution Mining Limited Quarterly Report September 2016

17

==> picture [84 x 59] intentionally omitted <==

CORPORATE INFORMATION

ABN 74 084 669 036

Board of Directors

Executive Chairman

Jake Klein Lawrie Conway

Finance Director and CFO

Colin (Cobb) Johnstone Lead Independent Director Naguib Sawiris Non-executive Director Jim Askew Non-executive Director Sébastien de Montessus Non-executive Director Graham Freestone Non-executive Director Tommy McKeith Non-executive Director

Company Secretary

Evan Elstein

Investor enquiries

Bryan O’Hara Group Manager Investor Relations Evolution Mining Limited Tel: (612) 9696 2900

Media enquiries

Michael Vaughan Fivemark Partners Tel: (61) (0)422 602 720

Internet address

www.evolutionmining.com.au

Registered and principal office

Level 30, 175 Liverpool Street Sydney NSW 2000 Tel: (612) 9696 2900 Fax: (612) 9696 2901

Share register

Link Market Services Limited Locked Bag A14 Sydney South NSW 1235 Tel: 1300 554 474 (within Australia) Tel: (612) 8280 7111 Fax: (612) 9287 0303 Email: [email protected]

Stock exchange listing

Evolution Mining Limited shares are listed on the Australian Securities Exchange under code EVN.

Issued share capital

At 30 September 2016 issued share capital was 1,675,553,736 ordinary shares.

==> picture [228 x 136] intentionally omitted <==

Conference call

Jake Klein (Executive Chairman), Lawrie Conway (Finance Director and Chief Financial Officer), Mark Le Messurier (Chief Operating Officer), and Glen Masterman (VP Discovery and Chief Geologist) will host a conference call to discuss the quarterly results at 11.00am Sydney time on Monday 17 October 2016.

Shareholder – live audio stream

A live audio stream of the conference call will be available on Evolution’s website www.evolutionmining.com.au. The audio stream is ‘listen only’. The audio stream will also be uploaded to Evolution’s website shortly after the conclusion of the call and can be accessed at any time.

Analysts and media – conference call details

Conference call details for analysts and media includes Q & A participation. Please dial in five minutes before the conference starts and provide your name and the participant PIN code.

Participant PIN code: 966166#

Dial-in numbers:

  • Australia: 1800 268 560

  • International Toll: (612) 8047 9300

Evolution Mining Limited Quarterly Report September 2016

18

==> picture [84 x 59] intentionally omitted <==

APPENDIX 1 – DRILL HOLE INFORMATION SUMMARY

Cowal

Hole Hole
Type		 Northing
MGA (m)		 Easting
MGA (m)		 Elevation
AHD (m)		 Hole
Length
(m)		 Dip
MGA		 Azi
MGA		 From
(m)		 Interval1
(m)		 Au(g/t)
E42D1711F
E42D1712B
E42D1712C
E42D1713A		 Core
Core
Core
Core		 6277498
6277549
6277549
6277579		 537447
537359
537359
537542		 212.0
212.0
212.0
212.0		 797.4
897.0
781.0
869.0		 -53.1
-53.9
-53.9
-56.1		 24.8
26.5
26.5
24.0		 230
345
402
447
492
521
555
572
649
682
700
740
768
363
473
566
648
672
706
721
750
767
829
870
212
272
326
355
370
444
474
496
529
570
580
642
655
699
744
549		 3
36
28
11
5
25
11
71
7
11
24
20
22
8
86
76
18
8
8
23
8
43
18
5
8
12
14
3
13
6
13
4
10
3
30
6
3
8
3
14		 0.49
1.15
0.61
0.49
0.47
2.53
1.65
6.92
2.26
0.84
0.84
2.70
1.13
0.98
0.99
0.86
2.57
0.40
0.53
0.83
0.94
0.69
0.89
0.62
0.93
0.44
1.61
1.22
1.25
0.48
0.84
0.62
0.58
0.71
0.90
0.72
1.27
0.72
4.39
0.89

Notes:[1] Reported intervals are down hole widths as true widths are not currently known. An estimated true width (ETW) is provided

==> picture [84 x 59] intentionally omitted <==

APPENDIX 1 – DRILL HOLE INFORMATION SUMMARY

Hole Hole
Type		 Northing
MGA (m)		 Easting
MGA (m)		 Elevation
AHD (m)		 Hole
Length
(m)		 Dip
MGA		 Azi
MGA		 From
(m)		 Interval1
(m)		 Au(g/t)
E42D1713B
E42D1715
E42D1715B
E42D1717		 Core
Core
Core
Core		 6277579
6277447
6277447
6277422		 537542
537533
537533
537575		 212.0
212.0
212.0
212.0		 862.0
846.4
853.7
786.3		 -56.1
-55.0
-55.0
-54.6		 24.0
24.1
24.1
24.2		 577
610
632
669
726
738
754
790
448
473
512
578
610
633
661
678
696
739
755
798
843
106
137
275
324
402
423
489
505
522
540
592
636
683
722
760
779
619
360
371
423
464		 5
14
6
23
4
9
5
16
16
4
16
5
16
9
8
8
9
7
13
5
5
3
6
4
7
12
20
10
3
10
11
27
19
5
20
11
9
11
4
7
7
22		 7.63
8.09
1.83
0.99
0.43
0.52
0.47
0.74
2.13
1.74
1.59
2.01
1.25
0.80
0.95
3.15
1.45
0.57
3.70
2.18
1.06
0.60
1.55
0.45
4.22
1.11
0.57
1.98
0.94
0.96
0.67
1.63
0.47
0.44
3.33
1.29
1.81
2.78
0.74
0.74
2.34
0.53

Notes:[1] Reported intervals are down hole widths as true widths are not currently known. An estimated true width (ETW) is provided

==> picture [84 x 59] intentionally omitted <==

APPENDIX 1 – DRILL HOLE INFORMATION SUMMARY

Hole Hole
Type		 Northing
MGA (m)		 Easting
MGA (m)		 Elevation
AHD (m)		 Hole
Length
(m)		 Dip
MGA		 Azi
MGA		 From
(m)		 Interval1
(m)		 Au(g/t)
493
595
616
664
676
708		 7
4
10
3
9
52		 0.84
0.54
2.70
1.93
0.65
4.63

Mungari

Hole Hole
Type		 Northing
MGA (m)		 Easting
MGA (m)		 Elevation
AHD (m)		 Hole
Length
(m)		 Dip
MGA		 Azi
MGA		 From
(m)		 Interval1
(m)		 ETW
(m)		 Au (g/t)
PDDD013
Core
6,595,131
335,296
340
281.4
-60
100
190.9
0.1
0.1
2.8
PDDD014
Core
6,595,289
335,324
340
344.5
-60
100
150.7
2.2
2.0
5.8
PDDD014
Core
6,595,289
335,324
340
344.5
-60
100
156
1
0.9
2.2
PDDD014
Core
6,595,289
335,324
340
344.5
-60
100
300.9
0.4
0.4
34.3
PDDD014
Core
6,595,289
335,324
340
344.5
-60
100
305
3
2.7
1.4
ZSRC063
RC
6,616,733
317,753
317
144
-60
60
60
2
1.8
4.2
ZSRC063
RC
6,616,735
317,756
312
144
-60
60
66
3
2.7
2.4
ZSRC096
RC
6,616,637
317,833
281
182
-60
60
94
16
14.2
3.5
ZSRC097
RC
6,616,703
317,781
304
130
-60
60
73
5
4.5
7.4
ZSRC098
RC
6,616,733
317,754
273
152
-60
60
No significant intercept
ZSRC100
RC
6,616,811
317,660
255
170
-60
60
137
5
4.5
1.7
ZSRC100
RC
6,616,814
317,668
245
170
-60
60
149
6
5.4
2
ZSRC106
RC
6,616,560
317,830
384
200
-60
60
104
16
14.4
1.0
ZSRC107
RC
6,616,633
317,826
263
200
-60
60
126
6
5.4
1.4
ZSRC108
RC
6,616,667
317,714
350
180
-60
60
87
8
7.2
1.3
ZSRC109
RC
6,616,530
317,792
378
199
-60
60
No significant intercept
ZSRC111
RC
6,616,826
317,668
357
127
-60
60
No significant intercept
FLRD171
Core
6,595,505
334,354
-73.5
154.7
-1
131
112
4
1.08
9.82
FLRD198
Core
6,596,003
333,858
-212.3
195.0
-35
45
183.5
4.69
3.76
3.02
FLRD201
Core
6,596,003
333,858
-212
186.1
-27
67
162
5.19
4.57
2.68
FLRD202
Core
6,596,003
333,858
-212
196.2
-34
74
173
8.52
6.82
2.59
FLRD203
Core
6,596,003
333,858
-212
221.1
-40
77
183.4
14.19
10.28
2.56

Notes:[1] Reported intervals are down hole widths as true widths are not currently known. An estimated true width (ETW) is provided

==> picture [84 x 59] intentionally omitted <==

APPENDIX 1 – DRILL HOLE INFORMATION SUMMARY

Mt Carlton

Hole Hole
Type		 Northing
MGA (m)		 Easting
MGA
(m)		 Elevation
AHD (m)		 Hole
Length
(m)		 Dip
MGA		 Azi
MGA		 From
(m)		 Interval1
(m)		 ETW
(m)		 Au (g/t)
HC16DD1190
Core
7,758,460
559,088
181
253
-56
131
32
1
0.50
0.43


HC16DD1192
Core
7,758,305
559,440
151
238
-59
143
151
12
10.39
2.06
Including
156
3
1.00
4.82

HC16DD1194
Core
7,758,347
559,515
155
240
-55
175
170
3
2.08
1.14
HC16DD1195
Core
7,758,455
559,067
180
258
-60
145
No significant intercept



HC16DD1196
Core
7,758,347
559,515
155
240
-56
164
171
7
6.06
3.48
Including
171
2
1.73
7.73
215
2
1.73
3.17
HC16DD1197
Core
7,758,352
558,947
158
270
-50
133
226
6
5.20
1.77
HC16DD1198
Core
7,758,285
559,522
154
235
-64
123
173
1
0.42
1.11


HC16DD1199
Core
7,758,352
558,947
158
302
-50
143
231
1
0.77
1.56
HC16DD1200
Core
7,758,431
559,291
156
250
-58
131
97
11
7.78
0.84


191
6
4.24
2.90
HC16DD1201
Core
7,758,284
559,522
154
240
-68
133
161
7
5.36
2.48
Including
161
3
2.30
5.20
HC16DD1202
Core
7,758,380
558,953
160
285
-47
133
39
1
0.87
0.67
235
5
4.33
1.63
HC16DD1203
Core
7,758,449
559,178
165
223
-67
152
4
1
0.77
0.38
7
3
2.95
1.00
11
2
1.29
0.45
16
1
0.87
0.39
19
1
0.71
0.41
111
5
3.21
0.88
120
1
0.94
0.43
133
1
0.82
0.87
165
1
0.71
0.40
168
1
0.98
0.36
171
11
7.78
21.23
Including
175
7
4.95
32.75
184
1
0.82
0.61
HC16DD1204
Core
7,758,381
558,954
160
290
-46
125
331
1
0.94
0.36


HC16DD1205
Core
7,758,455
559,232
160
230
-62
155
149
2
1.53
0.77


159
1
0.77
0.74
166
1
0.77
0.64
168
14
7
2.37
Including
172
2
1.15
7.84

HC16DD1206
Core
7,758,312
558,904
150
255
-58
135
61
1
0.64
0.79


HC16DD1207
Core
7,758,249
559,531
155
223
-65
135
160
15
9.64
2.01
Including
161
2
1.29
7.38
Including
174
1
0.71
3.42

Notes:[1] Reported intervals are down hole widths as true widths are not currently known. An estimated true width (ETW) is provided

==> picture [84 x 59] intentionally omitted <==

APPENDIX 1 – DRILL HOLE INFORMATION SUMMARY

Hole Hole
Type		 Northing
MGA (m)		 Easting
MGA
(m)		 Elevation
AHD (m)		 Hole
Length
(m)		 Dip
MGA		 Azi
MGA		 From
(m)		 Interval1
(m)		 ETW
(m)		 Au (g/t)
HC16DD1208
Core
7,758,431
559,024
559,024
177
260
-55
72
3
2.12
0.74
236
4
3.63
3.52
HC16DD1209
Core
7,758,334
559,442
559,442
150
200
-72
149
14
4.79
2.90



including
153
1
0.26
9.84

and
161
1
0.34
12.95
165
2
0.75
1.35
169
1
0.71
0.59

Cracow

Hole Hole Au
(g/t)
Northing Easting Elevation Hole Dip Azi 1
Type
MGA
MGA		 AHD Length
MGA		 MGA From
 Interval
 ETW

(m) (m) (m)
(m)		 (m) (m) (m)
BZU001 Core 7200799 224521 -212 209 38 125 195.20 5.80 2.85 4.10
BZU002 Core 7200801 224519 -212 150 37 44 123.00 4.50 3.40 11.73
CNU082A Core 7201117 224300 -212 206 -27 265 136.40 3.00 2.47 2.66
CNU082A Core 7201117 224300 -212 206 -27 265 162.25 1.55 1.25 13.30
CNU082A Core 7201117 224300 -212 206 -27 265 191.20 2.55 2.44 4.62
CNU082B Core 7201116 224300 -212 195 -31 264 151.10 1.60 1.19 2.18
CNU082B Core 7201116 224300 -212 195 -31 264 173.95 2.05 1.49 1.43
CNU083 Core 7201116 224300 -212 194 -23 264 145.20 2.15 1.75 3.00
CNU083 Core 7201116 224300 -212 194 -23 264 155.20 1.50 1.23 1.73
CNU083 Core 7201116 224300 -212 194 -23 264 129.25 5.75 4.89 3.19
CNU083 Core 7201116 224300 -212 194 -23 264 186.65 3.20 3.10 11.81
CNU085 Core 7201116 224300 -211 155 -1 263 106.15 1.00 0.97 3.97
CNU085 Core 7201116 224300 -211 155 -1 263 116.30 5.45 5.31 4.83
CNU085 Core 7201116 224300 -211 155 -1 263 126.70 1.85 1.76 0.44
CNU086 Core 7201116 224300 -211 146 12 263 109.75 0.55 0.55 8.09
CNU086 Core 7201116 224300 -211 146 12 263 126.70 0.41 0.40 0.05
CNU086 Core 7201116 224300 -211 146 12 263 113.65 2.48 2.48 4.46
CNU088A Core 7201003 224202 -452 178 58 264 145.35 4.95 2.75 4.63
CNU091 Core 7201066 224226 -453 133 34 264 130.50 2.15 1.81 2.01
CNU092 Core 7201066 224226 -452 190 41 263 139.35 5.65 4.34 1.88
CNU093 Core 7201066 224226 -452 182 46 267 154.65 5.20 3.59 4.27
CNU106 Core 7201096 224298 -212 205 -13 264 115.00 19.05 16.67 10.68
CNU118 Core 7200975 224267 -215 158 -17 263 133.55 1.45 1.45 5.09
CNU118 Core 7200975 224267 -215 158 -17 263 85.70 2.70 2.29 2.34
CNU119 Core 7200975 224267 -214 143 -1 263 73.80 0.90 0.87 5.61
CNU120 Core 7201096 224298 -212 150 -5 265 119.50 4.60 4.28 11.15
CNU120 Core 7201096 224298 -212 150 -5 265 102.80 5.40 5.27 3.49
CNU121 Core 7201096 224298 -211 140 3 263 102.00 14.70 14.58 4.95

Notes:[1] Reported intervals are down hole widths as true widths are not currently known. An estimated true width (ETW) is provided

==> picture [84 x 59] intentionally omitted <==

APPENDIX 1 – DRILL HOLE INFORMATION SUMMARY

Hole Hole
Type
 Northing
MGA
(m)		 Easting
MGA
(m)		 Elevation
AHD
(m)		 Hole
Length
(m)		 Dip
MGA
 Azi
MGA
 From
(m)		 Interval1
(m)		 ETW
(m)		 Au
(g/t)
CNU122 Core 7201096 224298 -211 135 14 262 104.55 10.85 10.84 6.30
CNU123A Core 7201136 224284 -211 192 -37 263 152.00 1.05 0.69 0.57
CNU123A Core 7201136 224284 -211 192 -37 263 178.60 2.45 1.51 1.61
CNU123A Core 7201136 224284 -211 192 -37 263 187.00 4.20 4.02 5.28
CNU124 Core 7201136 224284 -211 164 -33 263 127.70 2.70 1.94 4.67
CNU125 Core 7201136 224284 -211 191 -21 263 109.45 16.00 13.25 4.24
CNU125 Core 7201136 224284 -211 191 -21 263 144.10 1.90 1.50 9.13
CNU125 Core 7201136 224284 -211 191 -21 263 169.10 1.60 1.59 23.95
CNU125 Core 7201136 224284 -211 191 -21 263 68.50 6.90 5.57 2.40
CNU126 Core 7201136 224284 -210 143 -1 263 65.10 1.20 1.16 4.50
CNU126 Core 7201136 224284 -210 143 -1 263 94.00 6.60 6.40 2.18
CNU126 Core 7201136 224284 -210 143 -1 263 123.55 1.55 1.48 9.81
CNU127 Core 7201136 224283 -209 148 18 263 91.80 1.50 1.50 1.88
CNU127 Core 7201136 224283 -209 148 18 263 124.00 1.00 1.00 1.62
CNU128 Core 7201071 224292 -213 211 -34 264 150.80 3.30 2.25 1.43
CNU128 Core 7201071 224292 -213 211 -34 264 161.00 5.05 3.46 1.19
CNU128 Core 7201071 224292 -213 211 -34 264 194.75 3.85 3.40 18.89
CNU129 Core 7201071 224292 -213 176 -27 263 131.10 5.35 3.98 1.50
CNU129 Core 7201071 224292 -213 176 -27 263 141.05 3.95 2.96 2.19
CNU130 Core 7201071 224292 -213 137 -4 261 100.05 15.40 14.34 6.26
CNU131 Core 7201071 224292 -211 139 17 264 94.40 4.05 4.05 3.22
CNU131 Core 7201071 224292 -211 139 17 264 105.15 1.75 1.74 0.62
CNU132A Core 7201224 224312 -202 233 -25 262 210.70 3.70 2.88 3.35
CNU132A Core 7201224 224312 -202 233 -25 262 175.40 3.00 2.09 0.40
CNU135B Core 7201182 224307 -206 181 10 264 166.00 1.00 0.98 0.14
CNU135B Core 7201182 224307 -206 181 10 264 112.40 7.00 6.92 6.93
CNU136 Core 7201182 224307 -206 180 5 263 115.00 5.40 5.33 3.70
CNU136 Core 7201182 224307 -206 180 5 263 158.00 1.00 0.99 0.13
CNU137 Core 7201182 224307 -206 140 -2 262 119.95 4.15 4.00 4.77
CNU138 Core 7201054 224288 -212 131 7 264 93.05 10.15 10.05 4.36
CNU139 Core 7201182 224307 -206 194 -9 262 125.00 4.40 3.91 7.41
CNU139 Core 7201182 224307 -206 194 -9 262 167.00 2.60 2.51 8.29
CNU141 Core 7201182 224307 -207 216 -25 263 140.60 12.10 9.11 3.40
CNU141 Core 7201182 224307 -207 216 -25 263 183.35 3.80 3.37 3.21
CNU142A Core 7201226 224312 -201 201 2 262 122.00 4.00 3.88 8.25
CNU143 Core 7201226 224312 -201 195 -5 261 124.55 5.30 4.96 3.86
CNU143 Core 7201226 224312 -201 195 -5 261 178.40 0.60 0.58 15.20
CNU144 Core 7201226 224312 -201 207 -10 262 129.30 5.00 4.43 7.66
CNU144 Core 7201226 224312 -201 207 -10 262 182.00 1.80 1.66 2.61
CNU145 Core 7201226 224312 -202 227 -22 262 156.00 1.65 1.30 1.09
CNU145 RC 7201226 224312 -202 227 -22 262 198.60 2.40 2.10 3.17

Notes:[1] Reported intervals are down hole widths as true widths are not currently known. An estimated true width (ETW) is provided

==> picture [84 x 59] intentionally omitted <==

APPENDIX 1 – DRILL HOLE INFORMATION SUMMARY

Hole Hole
Type
 Northing
MGA
(m)		 Easting
MGA
(m)		 Elevation
AHD
(m)		 Hole
Length
(m)		 Dip
MGA
 Azi
MGA
 From
(m)		 Interval1
(m)		 ETW
(m)		 Au
(g/t)
PHU070 DDH 7200205 224918 1818 290.9 17 237 159.30 1.30 1.15 3.92
PHU071 DDH 7200204 224918 1818 189.2 13 233 172.50 5.00 4.60 2.49
PHU071A DDH 7200204 224919 1818 293.4 20 221 34.45 0.55 0.45 8.96
PHU071A DDH 7200204 224919 1818 293.4 18 227 172.60 0.80 0.70 184.00
PHU072 DDH 7200205 224918 1818 266.8 8 234 237.55 0.50 0.45 6.48
PHU073 DDH 7200207 224919 1818 285.0 16 264 210.70 0.95 0.8 4.83

Notes:[1] Reported intervals are down hole widths as true widths are not currently known. An estimated true width (ETW) is provided

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Cowal

Cowal Section 1 Sampling Techniques and Data

Criteria Explanation Commentary
Sampling techniques Nature and quality of sampling (e.g.
cut channels, random chips, or specific
specialised
industry
standard
measurement tools appropriate to the
minerals under investigation, such as
downhole gamma sondes, handheld
XRF instruments, etc). These examples
should not be taken as limiting the
broad meaning of sampling.
Holes in this report consist of navigational diamond core drilling.
A fence of parent holes with up to 5 daughter holes wedged off
using navigational (navi) steering were being drilled at time of
reporting. Parent holes were designed on a nominal 50m
spaced line with daughter holes designed to be at 50m
spacings a target zones. Intent of drilling is to upgrade inferred
and unclassified material in the existing model as well as add
additional ounces. Collar and down hole surveys were utilised
to accurately record final locations. Industry standard
Include reference to measures taken sampling, assaying and QA/QC practices were applied to all
to ensure sample representation and holes.
the appropriate calibration of any
measurement tools or systems used.		 Drill core was halved with a diamond saw in 1 m intervals,
irrespective of geological contacts. Oxide material that was
Aspects of the determination of too soft and friable to be cut with a diamond saw was split with
mineralisation that are material to the a chisel. Core was cut to preserve the bottom of hole
Public Report. orientation mark and the top half of core sent for analysis to
In cases where ‘industry standard’
work has been completed this would be		 ensure no bias is introduced.
Sample preparation was conducted by SGS West Wyalong and
relatively
simple
(e.g.
‘reverse		 consisted of:
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, or unusual		 Drying in the oven at 105ºC; crushing in a jaw crusher; fine
crushing in a Boyd crusher to 2-3mm; rotary splitting a 3kg
assay sub-sample if the sample is too large for the LM5 mill;
pulverising in the LM5 mill to nominal; 90% passing 75 µm;
and a 50g fire assay charge was taken with an atomic
absorption (AA) finish. The detection limit was 0.01 g/t Au.
commodities/mineralisation types (e.g.
submarine nodules).
Drilling techniques Drill type (eg core, reverse circulation, Parent holes were drilled to full depth HQ diameter.
open-hole hammer, rotary air blast,
auger, Bangka, sonic, etc.) and details
(e.g. core diameter, triple or standard
Daughter holes were drilled NQ diameter.
Core has been oriented using Act RD2 Reflex orientation tool.
tube, depth of diamond tails, face-
sampling bit or other type, whether core
is oriented and if so, by what method,
etc.).
Drill sample recovery Method of recording and assessing
core and chip sample recoveries and
results assessed.
Provisions are made in the drilling contract to ensure that hole
deviation is minimised and core sample recovery is
maximised. This is monitored by a geologist on a hole by hole
basis. Core recovery is recorded in the database. There are


Measures taken to maximise sample
recovery and ensure representative
nature of the samples.
no significant core loss or sample recovery issues. Core is
reoriented and marked up at 1 m intervals. Measurements of
recovered core are made and reconciled to the driller’s depth
blocks, and if necessary, to the driller’s rod counts.


Whether
a
relationship
exists		 There is no apparent relationship between core-loss and
between sample recovery and grade grade.
and whether sample bias may have
occurred due to preferential loss/gain
of fine/coarse material.

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Commentary
Logging Whether core and chip samples have
been geologically and geotechnically
logged to a level of detail to support
appropriate
Mineral
Resource
estimation,
mining
studies
and
metallurgical studies.

All core intervals and RC chips are logged.
Geologists log core for lithology, alteration, structure, and
veining. Logging was done directly onto laptop computers via
LogChief software which is validated and uploaded directly
into the Datashed database.
The Cowal logging system allows recording of both a primary
and a secondary lithology and alteration. Geologists also
Whether logging is qualitative or
quantitative
in
nature.
Core
(or
costean, channel etc.) photography.		 record the colour, texture, grain size, sorting, rounding, fabric,
and fabric intensity characterising each lithological interval.
The logged structures include faults, shears, breccias, major
veins, lithological contacts, and intrusive contacts. Structures
The total length and percentage of the are also recorded as point data to accommodate orientation
relevant intersections logged. measurements.
Structural measurements
are
obtained
using
a
core
orientation device. Core is rotated into its original orientation,
using the Gyro survey data as a guide. Freiberg compasses
are used for structural measurements.
Geologists log vein data including vein frequency, vein
percentage of interval, vein type, composition, sulphide
percentage per metre, visible gold, sulphide type, and
comments relative to each metre logged.
Geotechnical logging is done by field technicians and
geologists. Logging is on a per metre basis and includes
percentage core recovery, percentage RQD, fracture count,
and an estimate of hardness. The geotechnical data is
entered into the database.
All drill core, once logged, is digitally photographed on a core
tray-by-tray basis. The digital image captures all metre marks,
the orientation line (BOH) and geologist’s lithology, alteration,
mineralogy, and other pertinent demarcations. The geologists
highlight geologically significant features such that they can be
clearly referenced in the digital images.
Sub-sampling
techniques and
sample preparation		 If core, whether cut or sawn and
whether quarter, half or all core taken.
If non-core, whether riffled, tube
sampled, rotary split, etc and whether
sampled wet or dry.

Diamond Core is cut with a diamond saw or chisel. Core is cut
to preserve the bottom of hole orientation mark and the top
half of core is always sent for analysis to ensure no bias is
introduced.
NQ core from the daughter directional holes was whole core
sampled.
In 2003 Analytical Solutions Ltd conducted a Review of
For all sample types, the nature, Sample Preparation, Assay and Quality Control Procedures
quality and appropriateness of the for Cowal Gold Project. This study, combined with respective
sample preparation technique. operating company policy and standards (North Ltd,
Quality control procedures adopted
for
all
sub-sampling
stages
to
maximise representivity of samples.		 Homestake, Barrick and Evolution) formed the framework for
the sampling, assaying and QAQC protocols used at Cowal to
ensure appropriate and representative sampling.
Results per interval are reviewed for half core samples and if
Measures taken to ensure that the
sampling is representative of the in		 unexpected or anomalous assays are returned an additional
quarter core may be submitted for assay.
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 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.		 SGS West Wyalong acts as the Primary Laboratory and ALS
Orange conducts independent Umpire checks. Both labs
operate to international standards and procedures and take
part in the Geostatistical Round Robin inter-laboratory test
survey. The Cowal QA/QC program comprises blanks,
Certified Reference Material (CRM), inter-laboratory duplicate

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
checks, and grind checks.
1 in 30 fine crush residue samples has an assay duplicate. 1
in 20 pulp residue samples has an assay duplicate.
Wet screen grind checks are performed on 1 in 20 pulp
residue samples. A blank is submitted 1 in every 38 samples,
CRM’s are submitted 1 in every 20 samples. The frequency of
repeat assays is set at 1 in 30 samples.

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Commentary
their derivation, etc. All sample numbers, including standards and duplicates, are
Nature of quality control procedures
adopted
(eg
standards,
blanks,
duplicates, external laboratory checks)
and whether acceptable levels of
accuracy (i.e. lack of bias) and



pre-assigned by a QA/QC Administrator and given to the
sampler on a sample sheet. The QA/QC Administrator
monitors the assay results for non-compliance and requests
action when necessary. Batches with CRM’s that are outside
the ±2SD acceptance criteria are re-assayed until acceptable
results are returned.
precision have been established. Material used for blanks is uncertified, sourced locally,
comprising fine river gravel which has been determined to be
below detection limit. A single blank is submitted every 38
samples. Results are reviewed by the QA/QC Administrator
upon receipt for non-compliances. Any assay value greater
than 0.1 g/t Au will result in a notice to the laboratory. Blank
assays above 0.20 g/t Au result in re-assay of the entire
batch. The duplicate assays (Au2) are taken by the laboratory
during the subsampling at the crushing and pulverisation
stages. The results were analysed using scatter plots and
relative percentage difference (RPD) plots. Repeat assays
represent approx. 10% of total samples assayed. Typically
there is a large variance at the lower grades which is common
for low grade gold deposits, however, the variance decreases
to less than 10% for grades above 0.40 g/t Au, which is the
cut-off grade used at Cowal.
Approximately 5% of the pulps, representing a range of
expected grades, are submitted to an umpire assay laboratory
(ALS Orange) to check for repeatability and precision.
Analysis of the data shows that the Principal Laboratory is
performing to an acceptable level.
Verification of
sampling and
assaying
The
verification
of
significant
intersections by either independent or
alternative company personnel.

No dedicated twinning drilling has been conducted for this drill
program however some holes pass through areas of higher
confidence material in order to reach target zones. These
areas may be used to validate exiting drill information.
The use of twinned holes. Cowal uses DataShed software system to maintain the
database. Digital assay results are loaded directly into the
Documentation of primary data, data database. The software performs verification checks including
entry procedures, data verification and checking for missing sample numbers, matching sample
data storage (physical and electronic) numbers, changes in sampling codes, inconsistent “from-to”
protocols. entries, and missing fields. Results are not entered into the
Discuss
data		 any adjustment to assay database until the QA/QC Administrator approves of the
results. A QA/QC report is completed for each drill hole and
filed with the log, assay sheet, and other appropriate data.
Only the Senior Project Geologist and Database Manager
have administrator rights to the database. Others can use and
sort the database but not save or delete data.
Location of data
points		 Accuracy and quality of surveys used
to
locate
drillholes
(collar
and
downhole surveys), trenches, mine
workings and other locations used in
Mineral Resource estimation.




All drill hole collars were surveyed using high definition DGPS.
All drill holes were surveyed using a downhole survey camera.
The first survey reading was taken near the collar to
determine accurate set up and then at regular intervals
downhole.
On completion of each angled drill hole, a down hole
Specification of the grid
used.		 system gyroscopic (Gyro) survey was conducted. The Gyro tool was
referenced to the accurate surface surveyed position of each
hole collar.
Quality and adequacy of topographic
Gyro survey readings were also taken at roughly 100m
control. intervals on parent holes to ensure accurate positioning and
during navi cuts to achieve desired separation at target . The
Gyro results were entered into the drill hole database without
conversion or smoothing.
An aerial survey was flown during 2003 by AAM Hatch. This
digital data has been combined with surveyed drill hole collar
positions and other features (tracks, lake shoreline) to create
a digital terrain model (DTM). The survey was last updated in
late 2014.
In 2004, Cowal implemented a new mine grid system with the
assistance of AAM Hatch. The current mine grid system
covers all areas within the ML and ELs at Cowal with six
digits.
Data spacing and Data spacing for reporting of
Drill holes for the directional program were positioned on a
50m line spacing and navi cuts were steered and gyro’d to

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Explanation Explanation Explanation Commentary
distribution Exploration Results. achieve a nominal 50m spacing at the target zone. All drilling
Whether the data spacing and is sampled at 1 m intervals down hole.
distribution is sufficient to establish the
degree
of		 geological and grade
continuity appropriate for the Mineral
Resource and Ore Reserve estimation
procedure(s) and classifications
applied.
Whether sample compositing has
been applied.
Orientation of data in
relation to geological
structure		 Whether the orientation of sampling
achieves
unbiased
sampling
of
possible structures and the extent to
which this is known, considering the



Diamond holes were positioned to optimise intersection
angles, nominally SW-NE at 55 degree dip for Parent holes
and 35-50 degrees for daughter holes. Conventional diamond
drill holes were drilled roughly east-west at ~60 degrees.
deposit type.
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.
Sample security The measures taken
sample security.		 to ensure
Drill contractors are issued with drill instructions by an
Evolution geologist. The sheet provides drill hole names,
details, sample requirements, and depths for each drill hole.
Drill hole sample bags are pre-numbered. The drill holes are
sampled by Evolution personnel who prepare sample
submission sheets. The submission sheet is then emailed to
the laboratory with a unique submission number assigned.
This then allows individual drill holes to be tracked.
An SGS West Wyalong (SGS) representative collects the
samples from site twice daily, however, if samples are being
sent to ALS Orange, PJ & NA Freighters are used to collect
the samples from site and deliver them to the laboratory. Upon
arrival, the laboratory sorts each crate and compares the
received samples with the supplied submission sheet. The
laboratory assigns a unique batch number and dispatches a
reconciliation sheet for each submission via email. The
reconciliation sheet is checked and any issues addressed.
The new batch name and dispatch information is entered into
the tracking sheet. The laboratory processes each batch
separately and tracks all samples through the laboratory
utilising the LIMS system. Upon completion, the laboratory
emails Standard Industry Format (SIF) files with the results for
each batch to Evolution personnel.
The assay batch files are checked against the tracking
spreadsheet and processed. The drill plan is marked off
showing completed drill holes. Any sample or QA/QC issues
with the results are tracked and resolved with the laboratory.
Audits or reviews The results of any audits or reviews
of sampling techniques and data.		 QA/QC Audits of the Primary SGS West Wyalong Laboratory
are carried out on an approximately quarterly basis and for the
Umpire ASL Orange Laboratory approximately on a six
monthly basis. Any issues are noted and agreed remedial
actions assigned and dated for completion.
Numerous internal audits of the database and systems have
been undertaken by site geologists and company technical
groups from North Ltd, Homestake and Barrick. External
audits were conducted in 2003 by RMI and QCS Ltd. and in
2011 and 2014 review and validation was conducted by RPA.
Minor validation errors associated with the migration of historic
databases to Datashed were identified and remediated.
Recent audits have found no significant issues with data
management systems or data quality.

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

==> picture [84 x 59] intentionally omitted <==

Cowal Section 2 Reporting of Exploration Results

Criteria Explanation Commentary
Mineral tenement and
land tenure status
Type,
reference
name/number,
location
and
ownership
including
agreements or material issues with
third parties such as joint ventures,
partnerships,
overriding
royalties,
native title interests, historical sites,
wilderness
or
national
park
and
environmental settings.






The Cowal Mine is located on the western side of Lake Cowal
in central New South Wales, approximately 38 km north of
West Wyalong and 350 km west of Sydney. Drilling
documented in this report was undertaken on ML1535. This
Leases is wholly owned by Evolution Mining Ltd. and CGO
has all required operational, environmental and heritage
permits and approvals for the work conducted on the Lease.
There are not any other known significant factors or risks that
may affect access, title, or the right or ability to perform further
The security of the tenure held at the work programs on the Lease.
time of reporting along with any known
impediments to obtaining a licence to
operate in the area.
Exploration done by
other parties		 Acknowledgment and appraisal of
exploration by other parties.
The Cowal region has been subject to various exploration and
drilling programs by GeoPeko, North Ltd., Rio Tinto Ltd.,
Homestake and Barrick.
Geology Deposit type, geological setting and
style of mineralisation.
The Cowal gold deposits (E41, E42, E46, Galway and Regal)
occur within the 40 km long by 15 km wide Ordovician Lake
Cowal Volcanic Complex, east of the Gilmore Fault Zone
within the eastern portion of the Lachlan Fold Belt. There is
sparse outcrop across the Lake Cowal Volcanic Complex and,
as a consequence, the regional geology has largely been
defined by interpretation of regional aeromagnetic and
exploration drilling programs.
The Lake Cowal Volcanic Complex contains potassium rich
calc-alkaline to shoshonitic high level intrusive complexes,
thick trachyandesitic volcanics, and volcaniclastic sediment
piles.
The gold deposits at Cowal are structurally hosted, epithermal
to mesothermal gold deposits occurring within and marginal to
a 230 m thick dioritic to gabbroic sill intruding trachy-andesitic
volcaniclastic rocks and lavas.
The overall structure of the gold deposits is complex but in
general consists of a faulted antiform that plunges shallowly to
the north-northeast. The deposits are aligned along a north-
south orientated corridor with bounding faults, the Booberoi
Fault on the western side and the Reflector Fault on the
eastern side (the Gold Corridor).
Drill hole Information A summary of all information material
to the understanding of the exploration

Refer to Appendix for the drill hole information table
results including a tabulation of the
following information for all Material
drillholes:

easting
and
northing
of
the
drillhole collar

elevation or RL of the drillhole
collar

dip and azimuth of the hole

downhole length and interception
depth

hole length.
Data aggregation
methods		 In reporting Exploration Results,
weighting
averaging
techniques,
maximum
and/or
minimum
grade


Significant intercepts have been calculated based on a
minimum interval length of 3m, max internal dilution of 5m and
a minimum grade of 0.4g/t Au.
truncations
(e.g.
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

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Commentary
detail.
The assumptions used for any
reporting of metal equivalent values
should be clearly stated.
Relationship between
mineralisation widths
and intercept lengths		 These relationships are particularly
important
in
the
reporting
of
Exploration Results.

Mineralisation within the main E42 pit is bounded by large
north-south trending structures, however it is has strong
internal structural controls. A plunging lode has been identified
in the SW of the main pit and had been targeted by this drilling
If the geometry of the mineralisation
with respect to the drill hole angle is
known, its nature should be reported.
and as such intercept angles are near perpendicular to the
main mineralised body. All significant intercepts are reported
as down hole intervals.
If it is not known and only the
downhole lengths are reported, there
should be a clear statement to this
effect (eg ‘downhole length, true width
not known’)
Diagrams Appropriate maps and sections (with
scales) and tabulations of intercepts

Refer to the body of the text for drill hole schematic sections
and drill hole location plan for E42 resource definition drilling.
should be included for any significant
discovery
being
reported.
These
should include, but not be limited to a
plan view of drill hole
Balanced reporting Where comprehensive reporting of
all
Exploration
Results
is
not
practicable, representative reporting of
both low and high grades and/or
widths should be practiced to avoid
misleading reporting of Exploration
Results






Significant intercepts reported are only those areas where
mineralisation was identified.
A significant directional drilling program targeting an upgrade
in resource classification and an increase in Ore Reserves
was nearing completion at time of reporting. This program
consists of 10 parent holes with 5 daughter holes each for a
total of 31,500 metres. At time of reporting ~95% of this drilling
had been completed. Holes in this report relating to this drilling
include E42D1711F, E42D1712C, E42D1712D, E42D1713B,
E42D1713C, E42D1715A, E42D1715B and E42D1717.
Drill assay results returned during the quarter that have not
been previously reported are presented in the table above
with several holes still awaiting assay results at time of
reporting.
These
significant
results
have
confirmed
interpreted
mineralisation trends beyond the current E42 reserve shell.
Other substantive
exploration data		 Other exploration data, if meaningful
and material, should be reported

No other substantive data was collected during the report
period.
including
(but
not
limited
to):
geological observations; geophysical
survey results; geochemical survey
results; bulk samples – size and
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
extensions or depth extensions or
largescale step-out drilling).


This program is expected to be completed in October 2016.
Step back holes 50m and 100m beyond the Stage H drilling
commenced in late September and will continue into Q2.
Further work will be dependent on results and interpretations.
Diagrams clearly highlighting the
areas of possible extensions, including
the main geological interpretations and
future drilling areas, provided this
information
is
not
commercially
sensitive.

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

==> picture [84 x 59] intentionally omitted <==

Mungari

Mungari Section 1 Sampling Techniques and Data

Criteria Explanation Commentary
Sampling techniques Nature and quality of sampling (e.g.
cut channels, random chips,
or
specific specialised industry standard
measurement tools appropriate to the
minerals under investigation, such as
downhole gamma sondes, 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
representation and the appropriate
calibration of any measurement tools
or systems used.














Sampling of gold mineralisation at Mungari was undertaken
using diamond core (surface and underground) and reverse
circulation (RC) drill chips.
All drill samples were logged prior to sampling. Diamond drill
core was sampled to lithological, alteration and mineralisation
related contacts, whilst RC samples were collected at 1m or
4m downhole intervals. Sampling was carried out according to
Evolution protocols and QAQC procedures which comply with
industry best practice. Most drill-hole collars were surveyed
using a total station theodolite or total GPS with a small
proportion utilising hand held GPS.
The sampling and assaying methods are appropriate for the
orogenic mineralised system and are representative for the
mineralisation style. The sampling and assaying suitability
was validated using Evolution’s QAQC protocol and no
instruments or tools requiring calibration were used as part of
Aspects of the determination of the sampling process.
mineralisation that are material to the
RC drilling was sampled to obtain 1m or 4m samples from
Public Report. which 3 to 5 kg was crushed and pulverised to produce a 30g
In cases where ‘industry standard’
work has been completed this would
be relatively simple (e.g. ‘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,
or








to 50g subsample for fire assay. Diamond drillcore sample
intervals were based on geology to ensure a representative
sample, with lengths ranging from 0.3 to 1.3m. Diamond core
from underground was predominantly whole core sampled,
while surface diamond drilling was half core sampled. All
diamond core samples were dried, crushed and pulverised
(total preparation) to produce a 30g to 50g charge for fire
assay of Au. A suite of multi elements are determined using
four-acid digest with ICP/MS and/or an ICP/AES finish for
some sample intervals.
unusual
commodities/mineralisation
types (e.g. submarine nodules).
Drilling techniques
Drill
type
(eg
core,
reverse
circulation, open-hole hammer, rotary
air blast, auger, Bangka, sonic, etc.)
and details (e.g. core diameter, triple
or standard tube, depth of diamond
tails, face-sampling bit or other type,






RC sampling was completed using a 4.5” to 5.5” diameter face
sampling hammer. Diamond holes from both surface and
underground were predominantly wireline NQ2 (50.5mm) or
HQ (63.5mm) holes.
All diamond core from surface and selected underground
holes were orientated using the reflex (act II or ezi-ori) tool.
whether core is oriented and if so, by
what method, etc.).
Drill sample recovery Method of recording and assessing
core and chip sample recoveries and
results assessed.

RC drilling sample weights were recorded for selected sample
intervals and monitored for fluctuations against the expected
sample weight. If samples were below the expected weight,
feedback was given promptly to the RC driller to modify drilling
Measures taken to maximise sample
recovery and ensure representative
nature of the samples.

practices to achieve the expected weights.
All Exploration and selected Resource Definition diamond
core was orientated and measured during processing and the
recovery recorded into the drill-hole database. The core was

Whether
a
relationship
exists		 reconstructed into continuous runs on a cradle for orientation
between sample recovery and grade marking. Holes depths were checked against the driller’s core
and whether sample bias may have blocks.
occurred due to preferential loss/gain
Inconsistencies between the logging and the driller’s core
of fine/coarse material. depth measurement blocks were investigated. Core recovery
has been excellent as all holes are drilled into fresh competent
rock. Surface drilling recoveries were generally excellent with
the exception of oxide zones however these rarely fell below
90%.
Measures taken to maximise sample recovery include
instructions to drillers to slow down drilling rates or reduce the
coring run length in less competent ground.
Analysis of drill sample bias and loss/gain was undertaken
with the Overall Mine Reconciliation performance where
available.

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Commentary
Logging Whether core and chip samples have
been geologically and geotechnically
logged to a level of detail to support
appropriate
Mineral
Resource
estimation,
mining
studies
and
metallurgical studies.
RC drill chips and diamond core has been geologically logged
to the high level of detail required for the Mineral Resource
estimation, mining studies and metallurgical studies.
All logging is both qualitative and quantitative in nature
recording features such as structural data, RQD, sample
recovery, lithology, mineralogy, alteration, mineralisation
types, vein density, oxidation state, weathering, colour etc. All
Whether logging is qualitative or
quantitative
in
nature.
Core
(or
costean, channel etc.) photography.		 holes are photographed wet.
All RC and diamond holes were logged in entirety from collar
to end of hole.
The total length and percentage of the
relevant intersections logged.
Sub-sampling
techniques and
sample preparation		 If core, whether cut or sawn and
whether quarter, half or all core taken.
If non-core, whether riffled, tube
sampled, rotary split, etc and whether
sampled wet or dry.
All diamond core drilled from surface was half cored sampled
and the remaining half was retained. A proportion of
underground diamond core holes were half core sampled and
the remaining core retained for further geological or
metallurgical analysis
All RC samples were split by a cone or a riffle splitter and
collected into a sequenced calico bag. Any wet samples that
For all sample types, the nature, could not be riffle split were dried then riffle split.
quality and appropriateness of the Sample preparation of RC and diamond samples was
sample preparation technique. undertaken by external laboratories according to the sample
Quality control procedures adopted
for
all
sub-sampling
stages
to
maximise representivity of samples.		 preparation and assaying protocol established to maximise
the representation of the Mungari mineralisation. Laboratories
performance was monitored as part of Evolution’s QAQC
procedure. Regular laboratory inspections were undertaken
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.		 to monitor the laboratories compliance to the Mungari
sampling and sample preparation protocol.
The sample and size (2.5kg to 4kg) relative to the particle size
(>85% passing 75um) of the material sampled is a commonly
utilised practice for effective sample representation for gold
deposits within the Eastern Goldfields of Western Australia.

Whether
sample
sizes
are		 Quality control procedures adopted to maximise sample
appropriate to the grain size of the representation for all sub-sampling stages include the
material being sampled. collection of field and laboratory duplicates and the insertion of
certified reference material as assay standards (1 in 20) and
the insertion of blank samples (1 in 75) or at the geologist’s
discretion. Coarse blank material is routinely submitted for
assay and is inserted into each mineralised zone where
possible. The quality control performance was monitored as
part of Evolution’s QAQC procedure.
The sample preparation has been conducted by commercial
laboratories. All samples are oven dried (between 85°C and
105°C), jaw crushed to nominal <3mm and if required split by
a rotary splitter device to a maximum sample weight of 3.5kg
as required. The primary sample is then pulverised in a one
stage process, using a LM5 pulveriser, to a particle size of
>85% passing 75um. Approximately 200g of the primary
sample is extracted by spatula to a numbered paper pulp bag
that is used for a 50g fire assay charge. The pulp is retained
and the bulk residue is disposed of after two months.
Measures taken to ensure sample representation include the
collection of field duplicates during RC drilling at a frequency
rate of 5%, and quarter core sampling of surface diamond drill
holes. Duplicate samples for both RC chips and diamond
core are collected during the sample preparation pulverisation
stage. A comparison of the duplicate sample vs. the primary
sample assay result was undertaken as part of Evolution’s
QAQC protocol. It is considered that all sub-sampling and lab
preparations are consistent with other laboratories in Australia
and are satisfactory for the intended purpose.
The sample sizes are considered appropriate and in line with
industry standards.
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		 The sampling preparation and assaying protocol used at
Mungari was developed to ensure the quality and suitability of
the assaying and laboratory procedures relative to the
mineralisation types.

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Commentary
partial or total. Fire assay is designed to measure the total gold within a

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.		 sample. Fire assay has been confirmed as a suitable
technique for orogenic type mineralisation. It has been
extensively used throughout the Goldfields region. Screen fire
assay and LeachWELL / bottle roll analysis techniques have
also been used to validate the fire assay techniques.
The technique utilised a 30g, 40g or 50g sample charge with a
lead flux, which is decomposed in a furnace with the prill being
totally digested by 2 acids (HCI and HN03) before the gold
Nature of quality control procedures
adopted
(eg
standards,
blanks,
duplicates, external laboratory checks)
and whether acceptable levels of
accuracy (i.e. lack of bias) and
precision have been established.
content is determined by an AAS machine.
No geophysical tools or other remote sensing instruments
were
utilised
for
reporting
or
interpretation
of
gold
mineralisation.
Quality control samples were routinely inserted into the
sampling sequence and were also inserted either inside or
around the expected zones of mineralisation. The intent of the
procedure for reviewing the performance of certified standard
reference material is to examine for any erroneous results (a
result outside of the expected statistically derived tolerance
limits) and to validate if required; the acceptable levels of
accuracy and precision for all stages of the sampling and
analytical process. Typically batches which fail quality control
checks are re-analysed.
Verification of
sampling and
assaying
The
verification
of
significant
intersections by either independent or
alternative company personnel.		 Independent internal or external verification of significant
intercepts is not routinely completed. The quality control /
quality assurance (QAQC) process ensures the intercepts are
representative for the orogenic gold systems. Half core and
The use of twinned holes. sample pulps are retained at Mungari if further verification is
required.
Documentation of primary data, data The twinning of holes is not a common practice undertaken at
entry procedures, data verification and Mungari. The face sample and drill hole data with the mill
data storage (physical and electronic) reconciliation data is of sufficient density to validate
protocols. neighbouring samples. Data which is inconsistent with the
Discuss any adjustment to assay
data		 known geology undergoes further verification to ensure its
quality.
All sample and assay information is stored utilising the
acQuire database software system. Data undergoes QAQC
validation prior to being accepted and loaded into the
database.
Assay
results
are
merged
when
received
electronically from the laboratory. The geologist reviews the
database checking for the correct merging of results and that
all data has been received and entered. Any adjustments to
this data are recorded permanently in the database. Historical
paper records (where available) are retained in the exploration
and mining offices.
No adjustments or calibrations have been made to the final
assay data reported by the laboratory.
Location of data
points		 Accuracy and quality of surveys used
to
locate
drillholes
(collar
and
downhole surveys), trenches, mine
workings and other locations used in
Mineral Resource estimation.
All surface drill holes at Mungari have been surveyed for
easting, northing and reduced level. Recent data is collected
and stored in MGA 94 Zone 51 and AHD.
Resource drill hole collar positions are surveyed by the site-
based survey department or contract surveyors (utilising a
differential GPS or conventional surveying techniques, with
Specification of the grid system
used.		 reference to a known base station) with a precision of less
than 0.2m variability.
Underground down hole surveys consist of regular spaced
Quality and adequacy of topographic digital single-shot borehole camera shots (generally 30m apart
control. down hole), and digital electronic multi-shot surveys (generally
3m apart down hole). In instances where strong ground
magnetics affect the accuracy of the measured azimuth
reading, then these results are removed. The RC and surface
drill hole survey data consists of surveys taken utilising north
seeking gyro instruments. Gyro survey measurements are
obtained every 5 to 10m down hole. A proportion of these
holes are downhole surveyed using a digital single shot
survey technique similar to that of the underground holes,
except the down-hole survey measurement is at a spacing
typically 25-50m apart.
Topographic control was generated from aerial surveys and

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Commentary
detailed Lidar surveys to 0.2m accuracy. Underground void
measurements are computed using Cavity Monitoring System
(CMS) of the stopes and detailed survey pickup of the
development.
Data spacing and
distribution		 Data spacing for reporting of
Exploration Results.		 The nominal drill spacing for Exploration drilling is 80m x 80m
or wider and for Resource Definition is 40m x 40m or in some
areas 20m x 20m. This spacing includes data that has been
Whether the data spacing and
distribution is sufficient to establish the		 verified from previous exploration activities on the project.
Data spacing and distribution is considered sufficient for
degree
of
geological
and
grade
continuity appropriate for the Mineral
Resource and Ore Reserve estimation		 establishing geological continuity and grade variability
appropriate for classifying a Mineral Resource.
Sample compositing was not applied due to the often narrow
procedure(s)
and
classifications		 mineralised zones.
applied.
Whether sample compositing has
been applied.
Orientation of data in
relation to geological
structure		 Whether the orientation of sampling
achieves
unbiased
sampling
of
possible structures and the extent to
which this is known, considering the
deposit type.
Mineralisation at Frog’s Leg is hosted within a number of
steeply dipping NNW-SSE structures that are vertical or
dipping steeply (~80 degrees) to the west. Surface and
underground drilling intersect the mineralisation at an angle to
minimise bias.
Mineralisation at White Foil is hosted within a brittle quartz
If the relationship between the drilling
orientation and the orientation of key
mineralised structures is considered to		 gabbro unit. The gold is associated with quartz stockworks.
Structural studies confirms the presence of two main vein sets
at White Foil with a dominant moderately NNW dipping set
have introduced a sampling bias, this
should be assessed and reported if
material.		 (51º/346º dip and dip direction) and a secondary SSE dipping
set (56º/174º dip and dip direction).. An identifiable systematic
bias associated with drilling direction has not been
established. The main strike to the gabbro unit is NNW-SSE
and it plunges steeply towards the NNE. The predominant drill
direction was to the SE.
Surface holes and underground resource holes typically
intersect at an angle to the mineralisation and there is no
observed bias associated with drilling orientation.
The relationship between the drilling orientation and the
orientation of key mineralised structures at Mungari is not
considered to have introduced a sampling bias and is not
considered to be material. In a minority of instances on
extreme edges at the Frog’s Leg deposit the drill angle is sub
parallel with the lodes and does not intersect the width of the
mineralisation.
Sample security The measures taken to ensure
sample security.		 Chain of custody protocols to ensure the security of samples
were followed. Prior to submission samples were retained on
site and access to the samples were restricted. Collected
samples are dropped off at the respective commercial
laboratories in Kalgoorlie. The laboratories are contained
within a secured/fenced compound. Access into the laboratory
is restricted and movements of personnel and the samples are
tracked under supervision of the laboratory staff. During some
drill campaigns some samples are collected directly from site
by the commercial laboratory. While various laboratories have
been used, the chain of custody and sample security protocols
have remained similar.
Audits or reviews The results of any audits or reviews
of sampling techniques and data.		 The Mungari geology and drilling database was reviewed by
acQuire in December 2015 and no material issues were
identified.

Mungari Section 2 Reporting of Exploration Results

Criteria Explanation Commentary
Mineral tenement and Type, reference name/number, location
and ownership including agreements or		 The drilling was undertaken on M15/688, M15/830,
M15/1407, M15/1287 P16/2376, P16/2244, P16/2245,

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Explanation Commentary
land tenure status material issues with third parties such as and M15/14078 which are wholly owned by Evolution
joint ventures, partnerships, overriding Mining Limited.
royalties, native title interests, historical All tenements are in good standing and no known
sites, wilderness or national park and impediments exist. Prospecting leases with imminent
environmental settings. expiries will have mining lease applications submitted in
The security of the tenure held at the due course.
time of reporting along with any known
impediments to obtaining a licence to
operate in the area.
Exploration done by
other parties
Acknowledgment
and
exploration by other parties.		 appraisal of The initial discovery of Frog’s Leg was made by Mines
and Resources Australia Ltd who was a precursor
company to La Mancha Resources Australia Pty Ltd. The
deposit was discovered in 2000 as a result of following up
on regional anomalism identified through rotary air blast
(RAB) and aircore drilling. La Mancha was acquired by
Evolution in August 2015.
At White Foil the initial anomaly was identified by Afmeco
who found the Kopai trend which eventually included
White Foil. The discovery was made in 1996 by Mines and
Resources Australia who was a precursor company to La
Mancha Resources Australia Pty Ltd. Placer Dome Ltd
was a 49% joint venture partner during the first mining
campaign in 2002-2003
Geology Deposit type, geological setting and style
of mineralisation.		 The Frog’s Leg deposit is located in the southern portion
of the Kundana mining area, within the Achaean
Norseman-Wiluna
greenstone
belt
of
the
Eastern
Goldfields Province. The Kundana gold deposits are
structurally related to the Zuleika Shear Zone, a regional
NNW-trending shear zone that juxtaposes the Ora Banda
domain to the east and the Coolgardie domain to the
west. The Frog’s Leg deposit is located on the sheared
contact between the porphyritic “cat rock” (regionally
known as the Victorious Basalt) and volcaniclastic rocks
of Black Flag Beds
The White Foil gold deposit is a quartz stockwork hosted
in a gabbro. The gabbro is differentiated broadly into a
quartz-rich phase in the west. This quartz gabbro unit is
the most hydrothermally altered unit and contains the bulk
of the gold mineralisation. The White Foil deposit is
bounded to the west by hangingwall volcaniclastic rocks.
To the east mineralisation becomes irregular and
uneconomic in the more melanocratic phase of gabbro.
Mineralisation is controlled by sheeted systems of
stockwork veining, which has imparted strong alteration
and sulphidation to the quartz gabbro.
The Broads Dam area (Julius) is located in the northern
portion of the Mungari tenements and is structurally
related to the Zuleika Shear Zone. Mineralisation is
observed to occur within ductile shear zones associated
with dolomite-sericite-sulphide alteration.
Drill hole Information A summary of all information material to Refer to Appendix for the drill hole information table
the understanding of the exploration
results including a tabulation of the
following
information
for		 all
Material
drillholes:
o easting and northing of the drillhole
collar
o elevation or RL of the drillhole collar
o dip and azimuth of the hole
o downhole length and interception depth
o hole length.
Data aggregation
In
reporting
Exploration
Results,
weighting averaging techniques, maximum		 Intercept length weighted average techniques, minimum
grade truncations and cut-off grades have been used in

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Commentary
methods and/or minimum grade truncations (e.g.
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.		 this report.

At Frog’s Leg composite grades of > 3 g/t have been
reported

At White Foil, Broads Dam and other regional properties
composite grades >1 g/t have been reported

Composite lengths and grade as well as internal
significant values are reported in Appendix.

No metal equivalent values are used.
Relationship between
mineralisation widths
and intercept lengths		 These relationships are particularly
important in the reporting of Exploration
Results.
If the geometry of the mineralisation with
respect to the drill hole angle is known, its
nature should be reported.
If it is not known and only the downhole
lengths are reported, there should be a
clear statement to this effect (eg ‘downhole
length, true width not known’)
There is a direct relationship between the mineralisation
widths and intercept widths at Mungari.

The assay results are reported as down hole intervals
however an estimate of true width is provided in Appendix.
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
Refer to the body of the text for drill hole schematic
section for Julius exploration holes. A drill hole location
plan is provided below.

A schematic long section for Frog’s Leg is provided below.

Balanced reportingWhere comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of

  • Exploration and Resource Definition results have been reported in Appendix 1 to ensure balanced reporting

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Commentary
Exploration Results
Other substantive
exploration data		 Other exploration data, if meaningful and
material, should be reported including (but
not limited to): geological observations;
geophysical survey results; geochemical		 Work continued on a 4D geological study incorporating
the entire Mungari Project lease holding. Other works
included the completion of a 2D seismic survey using 3
lines along the southern end of the Mungari tenements
survey results; bulk samples – size and
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 extensions or
depth extensions or largescale step-out		 Further Exploration, Near Mine Exploration and Resource
Definition work on the Mungari tenements is planned for
the remainder of 2016
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.

Mt Carlton

Mt Carlton Section 1 Sampling Techniques and Data

Criteria 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 downhole 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)
Reported assay data for this report is based on PQ,
HQ and NQ diameter core. PQ was drilled largely
through weathered zones and broken ground of weak
mineralisation then followed with HQ and NQ diamond
core to end of hole. Oxidised core (PQ) is usually
sampled using kitchen knife whiles competent core
HQ and NQ size was cut with a diamond saw along
orientation lines. Nominal sampling intervals for all
core is 1m lengths. Shorter or longer core (<2m)
sampling
lengths
occurs
on
occasions
where
adjustments are required to core loss, alteration or
lithology changes.

The length of each core recovered from a drill run is
recorded and the percentage recovered calculated.
Field core recovery records are validated at the
coreshed prior to cutting and sampling. Bottom half of
split core was preserved and the other half sent for
analysis. This is done consistently to avoid sampling
bias. A duplicate quarter core sample is taken for
every 20thcore sample.

Half core samples averaging 2-31/2kg along with
quarter core samples are prepared and analysed at
ALS Townsville facility. Weights of samples dried at
105OC are recorded and crushed to 6mm. Samples
are split and excess bagged if crushed weight is
greater than 3kg. LM5’s are used to pulverise samples
to 85% passing 75um. A 200g pulp split is taken for
analysis which comprise; a 50g charge fire assay with
AA finish and ICP-AES for multi-element suite.
Drilling techniques Drill type (eg core, reverse circulation, open-
hole hammer, rotary air blast, auger, Bangka,
sonic, etc) and details (eg core diameter, triple
Diamond drilling was undertaken with PQ, HQ and NQ
bits. Holes were usually started with PQ and
completed with HQ or NQ on occasions due to poor
  • Reported assay data for this report is based on PQ, HQ and NQ diameter core. PQ was drilled largely through weathered zones and broken ground of weak mineralisation then followed with HQ and NQ diamond core to end of hole. Oxidised core (PQ) is usually sampled using kitchen knife whiles competent core HQ and NQ size was cut with a diamond saw along orientation lines. Nominal sampling intervals for all core is 1m lengths. Shorter or longer core (<2m) sampling lengths occurs on occasions where adjustments are required to core loss, alteration or lithology changes.

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Commentary
or standard tube, depth of diamond tails, face-
sampling bit or other type, whether core is
oriented and if so, by what method, etc).		 ground conditions. Coring was by triple tube and all
cores were oriented using Reflex Act RD2 orientation
tool.
Drill sample recovery Method of recording and assessing core and
chip sample recoveries and results assessed.
Measures taken to maximise sample
recovery and ensure representative nature of
the samples.
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.
Field recovery records for core are reconciled with
driller’s depth blocks. Percentage core recovery is
calculated and stored in a database along with
Geotechnical records.

Drillers are informed of the importance of core
recovery, all necessary care is taken to ensure every
drill run has maximum core recovered. Shot core runs
were done in bad ground to ensure core loss is
significantly minimised. Areas of poor core recovery
were noted during logging. “CL” is marked on depth
blocks denoting core loss. Intervals of core losses are
considered during sampling and referenced when
assessing assay data.

No discernible relationship between core loss and
grade has been identified. Mineralisation is hosted
within fresh advance argillic rhyodacite unit where
core recoveries are in excess of 90%. Bonanza gold
grade occurs within feeder zones with fracture filled
enargite and hydrothermal breccias veining cemented
in silicic alteration overprinted by sulphur salts with
random acid leached zones. Core loss sometimes
occurs in the acid leach zones and sheared contacts
bordering mafic dykes and rhyodacite. Drillers take
great care drilling through such zones to minimise
sample loss. Overall recovery is in excess of 90% and
core loss is volumetrically insignificant. In weathered
overlying lithology where oxidation has occurred
between sheared lithology contacts, core loss is
unavoidable but recovery is generally in excess of
85%. Mineralisation in the lithology overlying the
rhyodacite is generally weak and therefore has less
impact on modelled bonanza high grade.
Logging Whether core and chip samples have been
geologically and geotechnically logged to a
level of detail to support appropriate Mineral
Resource estimation, mining studies and
metallurgical 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.
Geology logging is undertaken for all drill cores.
Structural and geotechnical logging occurs for core
only. Detailed logging is undertaken for the entire
drillhole in domains of alteration, mineralisation and
lithology. Densities of various lithological units, ASD
and magnetic susceptibility data are captured as part
of the logging process. Lithogeochemical samples are
collected in areas where lithology units are not easily
discernible. The logging process is appropriate for
Mineral Resource estimates, mining and metallurgical
studies.

General logging data captured are; qualitative
(descriptions of the various geological features and
units)
and
quantitative
(numbers
representing
alteration intensities, vein densities, rock mass quality
and defect planes)

Drill holes (All core) were logged as full core prior to
photographing (dry and wet) and cutting.
Sub-sampling
techniques and
sample preparation		 If core, whether cut or sawn and whether
quarter, half or all core taken.
If non-core, whether riffled, tube sampled,
rotary split, etc and whether sampled wet or
dry.
For all sample types, the nature, quality and
appropriateness of the sample preparation
technique.
Quality control procedures adopted for all
sub-sampling
stages
to
maximise
Core was cut using diamond core saw along
orientation lines and sampled at nominal one metre
intervals from the same side in the tray at all times. All
core samples submitted to ALS, Townsville for
analysis are half core except for duplicate core which
is quarter core. The remaining half/quarter core is
persevered in the tray for further test work or re-
logging if required.

Core sample preparation involves oven drying,
coarse crushing to ~6mm followed by pulverisation
of the entire sample (total prep) using LM5 grinding
mills to agrind size 85%passing75 micron. A 50g

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Commentary
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.		 sub-sample is utilised for fire assay. Sample
preparation and analysis follows industry best
practise and appropriate for the mineralisation.

Certified reference material along with blanks and field
duplicates are inserted into sample stream along with
the original samples. Standards, blanks and field
duplicates cover 5% of sample volume to monitor
sample preparation and the analytical process.

The high sulphidation epithermal mineralisation at Mt
Carlton occurs in zones of highly silicic altered
hydrothermal breccias overprinted by several phases
of sulfur salts containing bonanza gold grades and
anomalous base-metal grades. Core sample size of 2-
31/2kg sample length over 1m is suitable for the
mineralisation type.

The sample sizes are considered appropriate for the
material sampled. It is believed that grain size bears
no impact on sampled material.
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.
All core samples are analysed at ALS Townsville.
Gold was analysed using 50g charge fire assay
followed by AAS finish. Base metal and other
elements are analysed using ICP-AES following a four
acid digest. The analytical method used by ALS
approaches total dissolution of high sulphidation
epithermal mineral assemblages of the Mt Carlton
deposit.
The
sample
preparation
and
assay
techniques meet industry best practise.

Spectral data is collected consistently at a spot within
a meter mark using short wave infrared spectrometer
(ASD TerraSpec 4 Hi-Res). Data is processed using
TerraSpec/TSG Pro software in the context of the
project geology. The accuracy and spread of
“Standard” data is acceptable within 2 standard
deviations. Any outlier between the second and third
standard deviation triggers an anomaly and is
investigated. An entire batch is re-analysed when a
sample plots outside three standard deviations.
Blanks are acceptable within 10Xpractical detection
limit, five samples preceding and following the outlier
are re-analysed. The internal QAQC data of ALS is
accessible online. The analytical system at ALS
captures data at all stages of the sample preparation
and analytical process. The system minimises human
error and ensures high data integrity. ALS participates
in an international “Round Robin” QAQC program to
ensure best industry practice is maintained. Based on
quality assurance and quality control acceptable
performance, assay data is suitable for use in Mineral
Resource estimation.
Verification of
sampling and
assaying		 The verification of significant intersections by
either independent or alternative company
personnel.
The use of twinned holes.
Documentation of primary data, data entry
procedures, data verification, data storage
(physical and electronic) protocols.
Discuss any adjustment to assay data
Significant mineralisation intercepts are verified by
other geologists within the company.

There were no twinned holes drilled.

Data documentation, verification and validation are
conducted in accordance with Evolution’s Data
Storage Standard Operating Procedure. Logging is
undertaken in significant detail for entire drillhole in
domains of alteration, mineralisation and lithology.
Data validation is conducted by the Project Geologist
prior to uploading into the Database. Digital copies of
logs are kept in dedicated folders on the Company
server and backed up regularly. Audit trail of all
changes that occur in the Database can be tracked.

No adjustment or calibrations were made to any assay
data used in this report.

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Commentary
Location of data
points		 Accuracy and quality of surveys used to
locate drillholes (collar and downhole surveys),
trenches, mine workings and other locations
used in Mineral Resource estimation.
Specification of the grid system used.
Quality and adequacy of topographic control.
All drillhole collars are marked and picked up by
Evolution mining surveyors using Total stations and
Differential
Global
Position
System
(DGPS).
Downhole surveys are conducted using Reflex digital
camera and uploaded into the Database.

Drillhole collars are surveyed in Map Grid of Australia
1994 (MGA94) Zone 55.

Bench mark and temporary survey stations are
checked annually by a third party (Minstaff Survey
Pty).
Data spacing and
distribution		 Data spacing for reporting of Exploration
Results.
Whether the data spacing and distribution is
sufficient to establish the degree of geological
and grade continuity appropriate for the
Mineral Resource and Ore Reserve estimation
procedure(s) and classifications applied.
Whether sample compositing has been
applied.
Drillholes are planned on 50m spaced lines at 25m
drill centres. Drillhole spacing was planned to test
strike and down dip extensions of the high grade
bonanza
lodes
plunging
north-east.
Statistical
assessment of drill results to date suggest a nominal
25mx25m drill centres are sufficient to establish the
degree of geological and grade continuity appropriate
for the Mineral Resource and Ore Reserve estimation
procedures and classifications for the Mt Carlton high
sulphidation deposit.

No compositing of samples was applied.
Orientation of data in
relation to geological
structure		 Whether the orientation of sampling achieves
unbiased sampling of possible structures and
the extent to which this is known, considering
the deposit type.
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.
Results to date have not identified any bias attributed
to sampling orientation.

Results to date have not identified any bias attributed
to sampling orientation.
Sample security The measures taken to ensure sample
security.
Chain of custody is managed by Evolution Mining.
Core is stacked safely and stored by hole number at a
secure compound. Samples are delivered to ALS
Townsville laboratory by company personnel or
through a third party trucking company. Samples that
are delivered after hours to the laboratory facility are
stored in locked yards prior to receipt. A reconciliation
report is sent via email from the Laboratories
acknowledging sample receipt.
Audits or reviews The results of any audits or reviews of
sampling techniques and data.
Internal audits and reviews are conducted by
Evolution’s Specialist Technical Services Group.
Unannounced Laboratory visits and reviews from site
personnel form part of a compliance audit. Database
and QAQC audit is conducted bi-annually by
Evolution Specialist Technical Group.

Mt Carlton Section 2 Reporting of Exploration Results

Criteria Explanation Commentary
Mineral tenement
and land tenure
status		 Type, reference name/number, location and
ownership including agreements or material
issues with third parties such as joint ventures,
partnerships, overriding royalties, native title
interests, 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		 The Mt Carlton Project is covered by Mining Lease
ML10343. The ML area covers 1151.9 ha. Native title
agreements are in place for activities within the
Mining Lease, and surrounding EPM’s.

ML 10343 is surrounded by a number of EPM’s
forming the Mt Carlton project area, with ML10343
within EPM10164. The Mt Carlton project currently
covers 875km2, the EPM’s are in good standing with
no significant risk regardingland access which inhibit

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Commentary
obtaining a licence to operate in the area. future work. A royalty agreement is currently in place
between Conquest Mining Pty Ltd and Gold Fields
Australasia Pty Ltd.
Exploration done
by other parties		 Acknowledgment and appraisal of exploration
by other parties.
Exploration within the Mt Carlton EPM’s and
ML10343 commenced in the 1970’s, with BHP,
Ashton Mining, MIM exploration and others exploring
the Capsize Range area within the current EPM10164
for porphyry copper and epithermal styles of
mineralisation. In 2006, Conquest Mining discovered
the V2 high sulphidation epithermal Au-Cu deposit,
and Ag rich A39 deposit, with follow up work within
the ML10343.
Geology Deposit type, geological setting and style of
mineralisation.
The Mt Carlton high sulphidation deposit is located in
the Early Permian Lizzie Creek. Mineralisaton is
hosted within porphyritic rhyodacite which underlay a
package of andesite lavas and fragmental volcanics.
Basaltic to andesitic dykes crosscut mineralisation and
mirror pre-existing structures. Gold mineralisation at
V2 is associated with enargite–tennantite copper and
silver minerals.
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 drillholes:
o easting and northing of the drillhole collar
o elevation or RL of the drillhole collar
o dip and azimuth of the hole
o downhole 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 is provided in the Drill hole
information summary table, provided in the appendix.
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.
Significant intercepts calculation is based on a
downhole intercept weighted length of 1m above a
0.35g/t cut-off of the resource model with an allowable
internal dilution for intervals up to 2m. No top cuts
have been applied in the calculation.

Composite and internal significant values are stated
for clarity.

No metal equivalent values are used.
Relationship
between
mineralisation
widths and
intercept lengths		 These relationships are particularly important in
the reporting of Exploration Results.
If the geometry of the mineralisation with
respect to the drill hole angle is known, its nature
should be reported.
If it is not known and only the downhole lengths
are reported, there should be a clear statement to
this effect (eg ‘downhole length, true width not
known’)
Mt Carlton mineralisation generally trends NE and
dips moderately to the west. Brecciated silica ledges
which control bonanza lodes dips steeply to the west
and plunges NE. These zones are discrete and
discontinuous. Mineralised zones are based on
interpreted geology and structural trends from drillhole
data and pit mapping.

Reported intervals are downhole widths as true widths
are not currently known. An estimated true width (etw)
is provided in the Drill Hole Information Summary
appendix.

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Commentary
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
Drillhole collar location plan of reported holes from V2
drilling is in the body of the report. A schematic
section is provided in the body of the report.
Balanced reporting Where comprehensive reporting of all
Exploration Results is not practicable,
representative reporting of both low and
high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results
This release comprise of 25 diamond drill holes
totalling 5,431m. Significant intercepts are presented
in Appendix 1. Assay results for 15 holes are pending
and 1 hole did not return significant intercepts.
Other substantive
exploration data		 Other exploration data, if meaningful and
material, should be reported including (but not
limited to): geological observations; geophysical
survey results; geochemical survey results; bulk
samples – size and method of treatment;
metallurgical
test
results;
bulk
density,
groundwater,
geotechnical
and
rock
characteristics;
potential
deleterious
or
contaminating substances.
No significant exploration activities have occurred
during the reporting period.
Further work The nature and scale of planned further work
(eg
tests
for
lateral
extensions
or
depth
extensions or largescale 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.
In FY17 Q2, the drilling strategy will be;
i)
continue to validate conceptual stopes
ii)
Infill mineralisation 30m below Reserve pit
design to 25m drill centres to improve mineral
resource
model
confidence
for
potential
underground project.
Concurrent to this drilling program a CSMAT
geophysical survey will be conducted to delineate drill
targets for potential underground mineralisation east
of the V2 pit.

Cracow

Cracow Section 1 Sampling Techniques and Data

Criteria Explanation Commentary
Sampling techniques Nature and quality of sampling
(eg cut channels, random chips,		 Sample types collected at Cracow and used in the reporting of
assays were all Diamond Drill core
or specific specialised industry
standard
measurement
tools
appropriate to the minerals under
investigation, such as downhole
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
Sample intervals for drill core were determined by visual logging
of
lithology
type,
veining
style/intensity
and
alteration
style/intensity to ensure a representative sample was taken. In
addition, sampling is completed across the full width of
mineralisation. Minimum and maximum sample intervals were
applied using this framework. No instruments or tools requiring
calibration were used as part of the sampling process.
Industry standard procedures were followed with no significant
coarse gold issues that affected sampling protocols. Nominal 3
kg samples from drill core are subsampled to produce a 50g
sample submitted for fire assay.
calibration of any measurement
tools or systems used.

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Commentary
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)
Drilling techniques Drill type (eg core, reverse
circulation,
open-hole
hammer,
rotary air blast, auger, Bangka,
sonic, etc) and details (eg core		 A combination of drilling techniques was used across the
Cracow Lodes. Diamond NQ3 (standard) and LTK60 were the
most commonly used. All of the holes reported were drilled from
underground and none of the holes reported were orientated.
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 recovery Method of recording and assessing
core and chip sample recoveries and
results assessed.		 Drill core – the measurement of length drilled Vs. length of core
recovered was completed for each drilled run by the drill crew.
This was recorded on a core loss block placed in the core tray
for any loss identified. Marking up of the core by the geological
Measures taken to maximise team then checked and confirmed these core blocks, and any
sample
recovery
and
ensure		 additional core loss was recorded and blocks inserted to ensure
representative
nature
of
the		 this data was captured. Any areas containing core loss were
samples. logged using the lithology code “Core Loss” in the lithology field
of the database.
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.		 Sample loss at Cracow was calculated at less than 1% and
wasn’t considered an issue. Washing away of sample by the
drilling fluid in clay or fault gouge material is the main cause of
sample loss. In areas identified as having lithologies susceptible
to sample loss, drilling practices and down-hole fluids were
modified to reduce or eliminate sample loss.
The drilling contract used at Cracow states for any given run, a
level of recovery is required otherwise financial penalties are
applied to the drill contractor. This ensures sample recovery is
prioritised along with production performance.
Mineralisation at Cracow was within Quartz-Carbonate fissure
veins, and therefore sample loss rarely occurs in lode material.
No relationship between sample recovery and grade was
observed.
Logging Whether core and chip samples
have
been
geologically
and
geotechnically logged to a level of
detail to support appropriate Mineral
Resource estimation, mining studies
and metallurgical studies.		 Geological logging was undertaken onsite by Evolution
employees and less frequently by external contractors. Logging
was completed using_LogChief_Software and uploaded directly
to the database. A standard for logging at Cracow was set by
the Core Logging Procedure_Cracow Procedures Manual 3rd_
Edition. Drill Core is logged recording lithology, alteration,
veining, mineral sulphides and geotechnical data. RC chip
Whether logging is qualitative or logging captured the same data with the exclusion of
quantitative in nature. Core (or geotechnical information.
costean, channel etc) photography. Logging was qualitative. All drill core was photographed wet
The total length and percentage of
the relevant intersections logged.		 using a camera stand and an information board to ensure a
consistent standard of photography and relevant information
was captured.
All core samples collected were fully logged.
Sub-sampling If core, whether cut or sawn and All drill holes reported were whole core sampled.
techniques and whether quarter, half or all core Whole core samples were crushed in a jaw crusher to > 70%

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Commentary
sample preparation taken. passing 2mm; half of this material was split with a riffle splitter
If non-core, whether riffled, tube
sampled,
rotary
split,
etc
and
whether sampled wet or dry.		 for pulverising. No RC samples required crushing in the jaw
crusher. Core and RC samples were pulverised for 10-14
minutes in a LM5 bowl with a target of 85% passing 75µm.
Grind checks were undertaken nominally every 20 samples.
For all sample types, the nature,
quality and appropriateness of the
sample preparation technique.		 From this material approximately 120g was scooped for further
analysis and the remaining material re-bagged. Duplicates were
performed on batches processed by ALS every 20 samples at
both the crushing and pulverising stages. This sample
Quality control procedures adopted preparation for drill samples is considered appropriate for the
for
all
sub-sampling
stages
to		 style of mineralisation at Cracow.
maximise representivity of samples. Duplicates were performed on batches processed by ALS
Measures taken to ensure that the
sampling is representative of the in		 Brisbane every 20 samples at both the crushing and pulverising
stages.
situ material collected, including for Grind checks were undertaken nominally every 20 samples, to
instance
results
for
field		 ensure sample grind target of 85% passing 75µm was met.
duplicate/second-half sampling. Duplicates were completed every 20 samples at both the

Whether
sample
sizes
are
appropriate to the grain size of the
material being sampled.		 crushing and pulverising stages, with no bias found at any sub-
sampling stage.
The sample size collected is considered to be appropriate for
the size and characteristic of the gold mineralisation being
sampled.
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		 Sample Analyses - The samples were analysed by 50g Fire
Assay for Au with Atomic Absorption (AAS) finish and was
performed at ALS Townsville. For Ag an Aqua Regia digest with
AAS finish was completed, also at ALS Townsville.
partial or total. An analytical duplicate was performed every 20 samples,

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.
aligned in sequence with the crushing and pulverising
duplicates. The Fire Assay Method is a total technique.
No other instruments that required calibration were used for
analysis to compliment the assaying at Cracow.
Thirteen externally certified standards at a suitable range of gold
grades (including blanks) were inserted at a minimum rate of
1:20 with each sample submission. All non-conforming results
were investigated and verified prior to acceptance of the assay
data. Results that did not conform to the QAQC protocols were

Nature
of
quality
control
procedures adopted (eg standards,
blanks,
duplicates,
external		 not used in resource estimations.
Monthly QAQC reports were produced to watch for any trends or
issues with bias, precision and accuracy.
laboratory checks) and whether An inspection of both the prep lab in Brisbane and the assay lab
acceptable levels of accuracy (ie in Townsville was conducted in December 2015 by Cracow
lack of bias) and precision have personnel.
been established.
Verification of
sampling and
assaying		 The verification of significant
intersections by either independent
or alternative company personnel.		 Verification of assay results was standard practice, undertaken
at a minimum once per year. In 2015, 547 pulp samples from
Cracow drillcore were retested at SGS Townsville to compare to
the results produced by ALS Townsville. The umpire sampling
The use of twinned holes. confirmed the accuracy of the ALS Townsville assaying was
Documentation of primary data,
data entry procedures, data
verification, data storage (physical
and electronic) protocols.		 within acceptable error limits.
The drilling of twin holes wasn’t common practice at Cracow.
Twin holes that have been drilled show the tenor of
mineralisation within the reportable domains were consistent
between twin holes.
Discuss any adjustment to assay
data		 All sample information was stored using_Datashed_, an SQL
database. The software contains a number of features to ensure
data integrity. These include (but not limited to) not allowing
overlapping sample intervals, restrictions on entered into certain
fields and restrictions on what actions can be performed in the
database based on the individual user. Data entry to_Datashed_
was undertaken through a combination of site specific electronic
data-entry sheets, synchronisation from_Logchief_and upload of
.csv files.
No adjustments are made to the finalised assay data received
from the laboratory.

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Commentary
Location of data
points		 Accuracy and quality of surveys
used to locate drillholes (collar and
downhole surveys), trenches, mine		 Underground drill-hole positions were determined by traversing,
using Leica TS15 Viva survey instrument (theodolite) in the local
Klondyke mine grid.
workings and other locations used in Down-hole surveys were captured by an Eastman camera for
Mineral Resource estimation. older holes and a Reflex camera on recent holes.
Specification of the grid system
used.		 The mine co-ordinate system at Cracow is named the Klondyke
Mine Grid, which transforms to MGA94 Grid and was created
and maintained by onsite registered surveyors.

Quality
and
adequacy
of
topographic control.
Data spacing and Data spacing for reporting of Exploration results are not being reported.
distribution Exploration Results. Sample spacing and distribution was deemed sufficient for
resource estimation.
Whether the data spacing and
distribution is sufficient to establish		 Spacing and distribution varied a range of drill patterns: 20x20,
the degree of geological and grade 40x40x and 80x80.
continuity appropriate for the Mineral The sample spacing required for the resource category of each
Resource
and
Ore
Reserve		 ore body is unique and may not fit the idealised spacing
estimation
procedure(s)
and		 indicated above.
classifications applied. All datasets were composited prior to estimation. The most
Whether sample compositing has
been applied.		 frequent interval length was 1 metre, particularly inside and
around mineralised zones. Sample intervals for most domains
were composited to 1m, with a maximum sample length of no
greater than 1.5m and a minimum sample interval of 0.2m.
A small number of lodes utilised a 1.5m composite as was
appropriate for the sample set for those deposits.
Orientation of data in
relation to geological
structure
Whether
the
orientation
of
sampling
achieves
unbiased
sampling of possible structures and
the extent to which this is known,
considering the deposit type.
Sample bias from non-orientation of core is considered minimal
in respect to mineralisation at Cracow. All drill holes reported
were whole core sampled
Drill holes were designed to ensure angles of sample
intersection with the mineralisation was as perpendicular as
possible. Where a poor intersection angle of individual holes
If the relationship between the locally distorted the interpreted mineralisation, these holes may
drilling
orientation
and
the		 not have been used to generate the wireframe.
orientation
of
key
mineralised
structures is considered to have
introduced a sampling bias, this
should be assessed and reported if
material.
Sample security The measures taken to ensure
sample security.		 All staff undergo Police Clearances, are instructed on relevant
JORC 2012 requirements and assaying is completed by
registered laboratories.
The core was transported by a private contractor by truck to the
assay laboratories.
Audits or reviews The results of any audits or
reviews of sampling techniques and
data.		 An inspection of sample preparation facility in Brisbane and the
Fire Assay laboratory in Townsville was conducted in by
Cracow personnel in December 2015. No major issues were
found.

Cracow Section 2 Reporting of Exploration Results

Criteria Explanation Commentary
Mineral tenement and
land tenure status		 Type, reference name/number,
location and ownership including
agreements or material issues with
third parties such as joint ventures,
partnerships,
overriding
royalties,
native title interests, historical sites,






ML3219, ML3221, ML3223, ML3224, ML3227, ML3228,
ML3229, ML3230, ML3231, ML3232, ML3243, ML80024,
ML80088, ML80089, ML80114, ML80120, ML80144 and
EPM15981 are all wholly owned by Evolution Mining’s wholly
owned subsidiary, Lion Mining Pty Ltd.
All tenure is current and in good standing.
wilderness or national park and

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Explanation Commentary
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.
Exploration done by
other parties		 Acknowledgment and appraisal of
exploration by other parties.		 The Cracow Goldfields were discovered in 1932, with the
identification of mineralisation at Dawn then Golden Plateau in
the eastern portion of the field. From 1932 to 1992, mining of
Golden Plateau and associated trends produced 850KOz.
Exploration across the fields and nearby regions was completed
by several identities including BP Minerals Australia, Australian
Gold Resources Ltd, ACM Operations Pty Ltd, Sedimentary
Holdings NL and Zapopan NL.
In 1995, Newcrest Mining Ltd (NML) entered into a 70 % share
of the Cracow Joint Venture. Initially exploration was targeting
porphyry type mineralisation, focusing on the large areas of
alteration at Fernyside and Myles Corridor. This focus shifted to
epithermal exploration of the western portion of the field, after
the discovery of the Vera Mineralisation at Pajingo, which
shared similarities with Cracow. The Royal epithermal
mineralisation was discovered in 1998, with further discoveries
of Crown, Sovereign, Empire, Phoenix, Kilkenny and Tipperary
made from 1998 up to 2008
Evolution was formed from the divestment of Newcrest assets
(including Cracow) and the merging of Conquest and Catalpa in
2012. Evolution continued exploration at Cracow from 2012.
Geology Deposit
and style of		 type, geological setting
mineralisation.		 The Cracow project area gold deposits are in the Lower
Permian Camboon Andesite on the south-eastern flank of the
Bowen Basin. The regional strike is north-northwest and the dip
20° west-southwest. The Camboon Andesite consists of
andesitic and basaltic lava, with agglomerate, tuff and some
inter-bedded trachytic volcanics. The andesitic lavas are
typically porphyritic, with phenocrysts of plagioclase feldspar
(oligocalse or andesine) and less commonly augite. To the west,
the Camboon Andesite is overlain with an interpreted
disconformity by fossiliferous limestone of the Buffel Formation.
It is unconformably underlain to the east by the Torsdale Beds,
which consist of rhyolitic and dacitic lavas and pyroclastics with
inter-bedded trachytic and andesitic volcanics, sandstone,
siltstone, and conglomerate.
Mineralisation is hosted in steeply dipping low sulphidation
epithermal veins. These veins found as discrete and as
stockwork and are composed of quartz, carbonate and adularia,
with varying percentages of each mineral. Vein textures include
banding
(colloform, crustiform,
cockade, moss),
breccia
channels and massive quartz, and indicate depth within the
epithermal system. Sulphide percentage in the veins are
generally low (<3%) primarily composed of pyrite, with minor
occurrences
of
hessite,
sphalerite
and
galena.
Rare
chalcopyrite, arsenopyrite and bornite can also be found.
Alteration of the country rock can be extensive and zone from
the central veined structure. This alteration consists of
silicification, phyllic alteration (silica, sericite and other clay
minerals) and argillic alteration in the inner zone, grading
outwards to potassic (adularia) then an outer propylitic zone.
Gold is very fined grained and found predominantly as electrum
but less common within clots of pyrite.
Drill hole Information A summary of all information
material to the understanding of the		 Drill hole information is provided in the Appendix Drill hole
information summary table.
exploration
results		 including a
tabulation of
the		 following
information for all Material drillholes:
o easting and northing of the
drillhole collar
o elevation or RL of the drillhole

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Commentary
collar
o dip and azimuth of the hole
o
downhole
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.
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.
Intercept length weighted average techniques, and minimum
grade truncations and cut-off grades have been used in this
report. Due to the nature of the drilling, some composite grades
are less than the current resource cut off of 2.8g/t, but remain
significant as they demonstrate mineralisation in veins not
previously modelled.
Composite, as well as internal significant values are stated for
clarity.

Where
aggregate
intercepts		 No metal equivalent values are used.
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.
Relationship between
mineralisation widths
and intercept lengths		 These relationships are particularly
important
in
the
reporting
of
Exploration Results.
The sampling technique confirms the presence of epithermal
quartz veining. There is a direct relationship between the
mineralisation widths and intercept widths at Cracow.
The assays are reported as down hole intervals and an

If
the
geometry
of
the		 estimated true width is provided.
mineralisation with respect to the
drill hole angle is known, its nature
should be reported.
If it is not known and only the
downhole lengths are reported, there
should be a clear statement to this
effect (eg ‘downhole length, true
width not known’)
Diagrams Appropriate maps and sections
(with scales) and tabulations of		 Representative diagrams of significant intercepts are presented
in the body of the text.
intercepts should be included for any
significant discovery being reported.
These should include, but not be
limited to a plan view of drill hole
Schematic section of Baz area

==> picture [84 x 59] intentionally omitted <==

APPENDIX 2 – JORC CODE 2012 ASSESSMENT AND REPORTING CRITERIA

Criteria Explanation Commentary
Plan view of BZU001
Plan view of BZU002
Balanced reporting Where comprehensive reporting of
all
Exploration
Results
is
not		 Assay results reported are of specific regions within the drill hole
identified by epithermal quartz veining.
practicable, representative reporting
of both low and high grades and/or
widths should be practiced to avoid
misleading reporting of Exploration
Results
Other substantive
exploration data
Other
exploration
data,
if
meaningful and material, should be		 No significant exploration activities have occurred during the
reporting period.
reported including (but not limited
to):
geological
observations;
geophysical
survey
results;
geochemical survey results; bulk
samples – size and 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		 Further Near Mine Exploration and Resource Definition work on
the Cracow tenements is planned for FY17
extensions or depth extensions or
largescale 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.

More from EVOLUTION MINING LIMITED

Regulatory Filings 2026
May 4
Regulatory Filings 2026
Apr 30
Regulatory Filings 2026
Apr 14
Regulatory Filings 2026
Apr 14
Regulatory Filings 2026
Apr 6
Regulatory Filings 2026
Apr 1
Regulatory Filings 2026
Apr 1
Regulatory Filings 2026
Mar 24
Regulatory Filings 2026
Mar 19
Regulatory Filings 2026
Mar 11
View all filings →