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FOCUS MINERALS LTD Regulatory Filings 2021

Nov 23, 2021

64932_rns_2021-11-23_78ea0e9f-8f51-41da-aef6-90c5675b6000.pdf

Regulatory Filings

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Market Announcement

24 November 2021

CNX Mineral Resource Update

Highlights:

  • Independent Mineral Resource Estimate completed for CNX gold deposit

  • Local Uniform Conditioning (LUC) approach applied at CNX to report recoverable resources and assist with preparation for maiden Ore Reserve

  • Practical approach for CNX-style mineralisation delivers resource including reasonable open pit dilution

  • CNX mineralisation remains open at depth and along strike, highlighting the outstanding potential of this key Coolgardie gold deposit

West Australian gold explorer Focus Minerals ( ASX: FML ) ( Focus or the Company ) announces the completion of an independent Mineral Resource estimate for the CNX deposit, part of the Company’s Coolgardie Gold Project. The independent Mineral Resource Estimate was completed by Cube Consulting ( Cube ).

CNX is a key deposit within the Coolgardie Gold Project ( Coolgardie ), which covers 175km[2] of highly prospective tenements on the outskirts of the Coolgardie township in the Goldfields region. CNX is located immediately north-west along strike of the Three Mile Hill open-cut mine (Figure 1) and close to the Three Mile Hill processing plant (in care and maintenance).

Cube provided technical assistance and review of data leading to the October 2021 CNX Geological Mineral Resource update (refer ASX announcement dated 28 October 2021). The October resource estimate targeted all mineralisation at CNX including zones of thinner and in places thinner and lowergrade mineralisation.

As part of this work with Cube, a preliminary Local Uniform Conditions ( LUC ) resource estimate was completed in October as a cross-check for QAQC purposes. It was noted during this work that the LUC model performed well when compared with reported 1991 production from the CNX trial pit, which has been relatively heavily drilled. Following completion of the October Mineral Resource update by the Company, Focus decided to formally complete the CNX LUC resource estimate so it could be assessed for use with follow-up reserve estimation.

The independent LUC Mineral Resource estimate for CNX delivered by Cube reported mineable blocks that included reasonable dilution by estimating tonnage and grade of mineralisation, which can be recovered using a Selective Mining Unit ( SMU ). Essentially, the LUC process characterises thin and lower-grade mineralisation that can present as sub-grade in an open pit mining environment. This independently prepared resource update differs to the CNX Mineral Resource reported by Focus in

Focus Minerals Limited ACN 005 470 799 | ABN 56 005 470 799 | ASX: FML Level 2, 159 Adelaide Terrace, East Perth WA 6004 | PO Box 3233, East Perth WA 6892 T +61 (0) 8 9215 7888 | F +61 (0) 8 9215 7889 | E [email protected] | W focusminerals.com.au

Page 1 of 28

October because it excludes thin mineralised zones. This feature applies only to the resource model used by Focus for the CNX deposit.

The newly completed LUC Mineral Resource estimate has now been reviewed and Focus has decided to use it for the maiden CNX Ore Reserve estimation, which will be completed in coming months. The mineralisation at CNX remains open at depth and along strike and Focus is confident in CNX. Further extensional drilling work and Mineral Resource updates at CNX are planned for 2022.

CNX sub-crops over a drill-defined strike of 700m. The resource is truncated 97m north of the Great Eastern Highway centreline. The independent CNX open pit LUC Mineral Resource is reported on a dry tonnage basis using a 0.5 g/t Au cut-off to 200mRL (depth of 230m):

Classification Tonnage
(Mt)
Au Grade
(g/t)
LUC Contained
Au Koz
Measured 2.7 1.08 93,800
Indicated 1.1 1.08 37,900
Inferred 0.8 1.0 26,200
Total Mineral Resource 4.6 1.06 157,900

The independent LUC Mineral Resource estimate has significantly increased tonnes of mineralisation reporting above cut-off and only resulted in a 15% reduction in Total Measured and Indicated Mineral Resources. Inferred Mineral Resources in less well-drilled parts of the CNX deposit have reduced by 50%, largely as a result of limited drilling in those areas.

Commenting on the independently compiled CNX Mineral Resource, Focus Minerals’ CEO, Mr Zhaoya Wang, said:

“The headline number of this independently compiled Mineral Resource is lower than the Mineral Resource update released by Focus last month but should be seen as an intermediate resource estimation only, without diluting the potential of this important Coolgardie gold deposit.

“Focus is very comfortable with this more conservative resource estimation, which is appropriate for a growing deposit like CNX. Focus looks forward to the next phase of resource development at CNX.

“We will use this independent LUC Mineral Resource estimate to help prepare the maiden CNX Ore Reserve estimate, which will now be concluded during the March 2022 Quarter.”

Market Announcement | Page 2 of 28

CNX (Caledonia North Extended)

Emerging bulk-tonnage pit option reshaping the Coolgardie mine plan

CNX is located on the north-west extension of the Three Mile Hill open pit. The strike of the Mineral Resource being reported is 700m and reported to a vertical depth of 230m from surface. The southeast extension of the mineralisation is cut off using an exclusion zone 97m north of the Great Eastern Highway centreline. CNX is located only 1.25km north north-west of the Three Mile Hill ROM pad.

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Figure 1: Coolgardie location map highlighting recent Mineral Resource updates and Mineral Resources currently under review.

Market Announcement | Page 3 of 28

CNX Location and Historic Production

The CNX deposit is contiguous with the Three Mile Hill open pit, which had historic production of 4.2Mt @ 2.4 g/t Au for 324Koz. CNX is located on the north-western extension of the Three Mile Hill Mineral Resource, starting on the north-western side of Great Eastern Highway.

Exploration has been conducted along strike of CNX. This drilling has confirmed the presence of the host G2 Gabbro, extending a further 800m north-east and around a fold into the Green Light target.

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

21CNRC015
19.00m @ 1.93g/t from 64m
for (GxM 36.7)
21CNRC023
20.00m @ 0.9g/t from 85m
for (GxM 18)
Green Light
+400m strike
21CNRC001
33.00m @ 0.89g/t from 87m
for (GxM 29.4)
20CNRC001
37.00m @ 3.49g/t from 59m
for (GxM 129.1)
21CNRD003
18.00m @ 1.6g/t from 125m
for (GxM 28.8)
21CNDD004
20.00m @ 5.2g/t from 178m
for (GxM 104)
21CNRD027
10.00m @ 7.14g/t from 185m
for (GxM 71.4)
----- End of picture text -----

Figure 2: Plan view showing the location of CNX along strike from the Three Mile Hill deposit. The 2D location of significant intersections drilled in 2020-21 exceeding 0.5g/t and including up to 3m internal dilution are shown by dots, coloured as: CNX (red dots), Gap Zone (blue dots) and Green Light (green dots). The G2 Gabbro (pink semitransparent polygon) is the host of the majority of the CNX and Green Light mineralisation. The G2 Gabbro strikes north-west at Three Mile Hill, CNX and the Gap Zone. At the east side of Green Light, the G2 Gabbro is folded and strikes west south-west. The location of section box for Figure 3 (light blue box) is also shown. Princess Midas shallow workings and minor shafts are shown as orange stars. The larger Princess Midas shaft is marked by a red star. The October 2021 Resource reporting box is marked by the dark blue rectangle with 97m offset from the centreline of Great Eastern Highway.

Market Announcement | Page 4 of 28

The 1991 CNX trial pit was mined as a 30m-deep and 270m-long north-west striking open pit. Archives indicate the following pre-mining Open Pit Mineral Resource estimate and post-mining reconciliation:

Classification Tonnes Au Grade
(g/t)
Au Contained
Oz
1991 Trial Pit Mineral Resource Estimate 1g/t cut off 120,00 2.1 8,000
1991 Trial Pit Estimated 20% [email protected]/t 24,000 0.3 200
1991 Trial Pit Estimated Recovered Diluted Mineral
Resource 1 g/t cut off		 143,000 1.8 8,200
Reconciled Trial Pit Recovered Mineral Resource at
1 g/t cut off		 196,000 1.9 11,700
Reconciliation % +36.5% +3.9% +41.9%

CNX Geology and Structure Summary

Infill drilling at CNX, and in particular a significant amount of orientated HQ diamond core, has confirmed that the structural controls are identical to those at Three Mile Hill. Focus continues to use a significant amount of diamond drilling at CNX, accounting for 56% of all CNX resource and feasibility drilling since October 2020.

The main control on the bulk-style tabular mineralisation at CNX is the G2 Gabbro (Figures 2 and 3). Within the G2 Gabbro, 0.5cm to +5cm quartz-chlorite-sulphide veins form a series of stacked, shallow south-west dipping stockworks (Figure 3). Higher-grade mineralisation dips south-east within the G2 Gabbro and is characterised by sets of 5cm to 30cm-thick quartz-chlorite-sulphide veins.

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Figure 3: Sectional view north-west of the interpreted cross section 20CNDD004. The sub-vertical yellow polygon shows the location of the modelled G2 Gabbro that hosts the majority of the CNX mineralisation. The labelled significant intersection was calculated using a 0.5g/t cut-off and up to 3m internal dilution. Red polygons show the location of the bulk-style CNX mineralisation. A preliminary pit design that was developed to assess the December 2020 CNX Mineral Resource update is also shown.

Market Announcement | Page 5 of 28

The independent CNX Mineral Resource estimate was completed by Michael Job of Cube Consulting. The resulting model is built within a 0.1 g/t grade shell restricted to the G2 Gabbro.

The interpretation for the LUC Mineral Resource estimate separates the bulk-style mineralisation from the non-mineralised material at CNX. Drilling was composited to 1m downhole prior to initial estimation via ordinary kriging into panel blocks with dimensions of 20 mE x 20 mN x 5 mRL. Uniform conditioning was used to calculate the grade distribution in the panels assuming SMUs with dimensions of 5 mE x 5 mN x 2.5 mRL. It should be noted that the selected SMU is effectively the smallest-sized block that can be reasonably mined. The LUC estimate incorporates reasonable assumptions about mining dilution.

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

NW 1991 Trial Pit 196Kt @ 1.86 g/t for 11,727oz SE Au g/t
Figure 3 Section
----- End of picture text -----

Figure 4: Long-sectional view north-east of the CNX LUC Mineral Resource block model, cut-off at 0.8 g/t to highlight higher grade structure with:

  • Assays from drilling to date as per the inset legend

  • 2020-21 drilling with thick black drill traces

  • High-grade, south-east dipping structural fabric marked with white dashed arrows

  • Historic 1991 pit location, marked with dashed black line and production figure is labelled

  • Yellow polygon, marking the location areas to be targeted for resource upgrade drilling in 2022

The northern margin of CNX plunges to the south-east in the vicinity of inferred cross faulting. To the south-east of the cross faulting, CNX mineralisation is characterised as bulk tonnage with widths between 30m and 45m (average width of 35m) over a 700m strike (Figures 2, 3 and 4).

Significant CNX intersections achieved in drilling in 2020-21, calculated using a 0.5 g/t cut-off and up to 3m internal dilution, include:

  • 20CNRC001 - 37m @ 3.49g/t from 59m (GxM 129)

  • 21CNDD004 - 20m @ 5.2g/t from 178m (GxM 104)

  • 21CNRD040 - 56.05m @ 1.36g/t from 122.95m (GxM 76)

  • 21CNRD027 - 10m @ 7.14g/t from 185m (GxM 71)

  • 21CNRD041 - 33m @ 1.64g/t from 135m (GxM 54)

  • 21CNRD052 - 20m @ 2.65g/t from 111m (GxM 53)

  • 21CNRD039 - 8m @ 6.46g/t from 101m (GxM 52)

  • 21CNRD045 - 9m @ 4.39g/t from 18m (GxM 40)

  • 21CNRC026 - 15m @ 2.57g/t from 95m (GxM 38)

  • 21CNRC026 - 10m @ 3.27g/t from 118m (GxM 33)

Market Announcement | Page 6 of 28

The release of this ASX announcement was authorised by Mr Zhaoya Wang, CEO of Focus Minerals Ltd.

For further information For media and investor enquiries please contact: please contact: Alex Aaltonen Peter Klinger General Manager Exploration Director, Investor Relations Focus Minerals Ltd. Cannings Purple Phone: +61 8 9215 7888 Phone: +61 411 251 540 Email: [email protected] Email: [email protected]

About Focus Minerals Limited (ASX: FML)

Focus Minerals is a Perth-based, ASX-listed gold exploration company focused on delivering shareholder value from its 100%-owned Coolgardie Gold Project and Laverton Gold Project, in Western Australia’s Goldfields.

Focus is committed to delivering shareholder value from the Coolgardie Gold Project, a 175km[2] tenement holding that includes the 1.4Mtpa processing plant at Three Mile Hill (on care and maintenance), by continuing exploration and value-enhancing activities. An updated PFS in September 2020 highlighted the potential for a low capital cost, fast-tracked return to mining at Coolgardie and delivered an NPV7.5% of $183 million. The Company’s efforts are now focused on increasing production-ready Mineral Resources at Coolgardie and delivering the approvals and permits required for a resumption of gold-mining operations.

The Laverton Gold Project covers 386km[2] area of highly prospective ground that includes the historic Lancefield and Chatterbox Trend mines. Focus’ priority target is to confirm sufficient gold mineralisation at the Beasley Shear Zone, Lancefield-Wedge Thrust, Karridale and Burtville to support a Stage 1 production restart at Laverton. In parallel, Focus is working to advance key Laverton resource growth targets including Sickle, Ida-H and Burtville South. Focus has delivered first results from a progressive Pre-Feasibility Study (Pre-Tax NPV5.0% A $132M) and is advancing study work utilising Laverton’s expanded Mineral Resource position.

Market Announcement | Page 7 of 28

Competent Person Statement

The information in this announcement that relates to Exploration Results is based on information compiled by Mr Alex Aaltonen, who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Aaltonen is an employee of Focus Minerals Limited. Mr Aaltonen has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Mr Aaltonen consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

The information in this announcement that relates to Estimation and Reporting of Mineral Resources is based on information compiled by Mr Michael Job, who is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM). Mr Job is an independent consultant employed by Cube Consulting. Mr Job has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Mr Job consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

ASX Listing Rule 5.19.2

CNX Mineral Resource is not included in the Coolgardie PFS results announced on 22 September 2020. Therefore, the material assumptions underpinning the production target, or the forecast financial information derived from the PFS continue to apply and have not materially changed.

Market Announcement | Page 8 of 28

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

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

Criteria Commentary
Sampling
techniques		 FML RC Sampling
• Focus Minerals Ltd (FML) RC percussion drill chips were collected through a
cyclone and riffle splitter. Samples were collected on a 1m basis. The spoils were
either bagged per metre in appropriately sized plastic bags or placed on the ground
and left in neat rows at 1m intervals with an accompanying cone split 1m calico
sample
FML Diamond Core Sampling
• Diamond core was collected into standard plastic core trays. Down hole depths were
marked onto wooden core blocks and stored in the trays.
• The diamond core was marked up for sampling by the supervising geologist during
the core logging process, with sample intervals determined by the presence of
mineralisation and/or alteration. Whenever possible the cutline was drawn parallel
to and close to the core orientation line to ensure the cutline was consistent over the
hole. The core was cut using an automatic core saw, with half-core samples (NQ
and HQ) and quarter core samples (PQ) submitted for analysis.
• At the assay laboratory all samples were oven dried, crushed to a nominal 10mm
using a jaw crusher (core samples only) and weighed. Samples in excess of 3kg in
weight were riffle split to achieve a maximum 3kg sample weight before being
pulverized to 90% passing 75μm.
• Goldfan collected 2kg samples as either 4m composites or as 1m samples through
mineralised ground or interesting geology. Samples were run through a cyclone and
then put through a riffle splitter. Where the 4m composite samples returned greater
than 0.25g/t Au, 1m samples were submitted.
• Cord Holdings (Cord) collected 1m samples off the RC rig, split the samples by
unknown methods and submitted them for assay.
• Information on the seven Diamond holes drilled by Northland Minerals Ltd is limited
and only referred to as an internal report on WAMEX. However, four of these holes
were targeted within the current CNX pit. Samples were taken as predominantly 1m
intervals, with 2m composites taken from surface to approx. 18m below surface.
Samples were also taken to geological contacts.
• Clackline Ltd (Clackline) drilled RC pre-collars followed by NQ drill core. The RC
pre-collars were riffle split with 1m samples submitted for assay, while NQ core was
sawn and ½ core 1m samples submitted for analysis.
Drilling techniques • Years 2020 onward FML RC drilling was conducted using a 5 3/8inch face sampling
hammer for RC drilling.
• At hole completion, downhole surveys for RC holes were completed at a 10m
interval by using True North Seeking Gyro tool. Otherwise, a single shot Eastman
camera downhole survey was used either “in-rod” or “open hole”.
• Years 2020 onward FML diamond drilling core was drilled at NQ2/HQ3/PQ size. All
drill core was oriented where competent by the drilling contractor using an electronic,
accelerometer-based system.
• At hole completion diamond holes were open hole surveyed using an electronic
multi-shot (EMS) tool in single shot mode at a range of intervals between 20m and
50m on drilling advance, averaging 30m.
• Year 2014 FML drilling was completed using an RC face sampling hammer or
NQ2/HQ3 size diamond core. Where achievable, all drill core was oriented by the
drilling contractor using an Ezy-mark system. Most holes were surveyed upon
completion of drilling using an EMS camera open hole.
• Goldfan used RC face sampling hammer. Holes were downhole surveyed by
Eastman single shot camera and later by Eastman multiple shot camera.
• Cord RC holes were completed using RC roller and hammer.
• Clackline drilled RC pre-collars followed by NQ diamond core tails. Holes were
downhole surveyed by Eastman single shot camera.

Page 9 of 28

Drill sample
recovery		 • FML sample recovery was recorded by a visual estimate during the logging process.
• All RC samples were drilled dry whenever possible to maximize recovery, with water
injection on the outside return to minimise dust.
• FML DD sample recovery was measured and calculated (core loss) during the
logging process. DD core had excellent recovery.
• Goldfan states a consistent sample recovery in the range of 80-90%.
• Cord, Clackline and Northland sample recovery is unknown.
Logging The information of logging techniques below applies to the drill holes drilled by FML
only.
• All core samples were oriented, marked into metre intervals and compared to the
depth measurements on the core blocks. Any loss of core was noted and recorded
in the drilling database.
• All RC samples were geologically logged to record weathering, regolith, rock type,
alteration, mineralisation, veining, structure and texture and any other notable
features that are present.
• All diamond core was logged for structure, and geologically logged using the same
system as that for RC.
• The logging information was transferred into the company’s drilling database once
the log was complete.
• Logging was qualitative, however the geologists often recorded quantitative mineral
percentage ranges for the sulphide minerals present.
• Diamond core was photographed one core tray at a time wet and dry using a
standardised photography jig.
• RC chip trays are wet photographed.
• The entire length of all holes is logged.
Historic RC holes have been logged at 1m intervals to record weathering, regolith, rock
type, colour, alteration, mineralisation, structure and texture and any other notable
features that are present.
Sub-sampling
techniques and
sample preparation		 • FML core samples were taken from quarter or half core, cut using an Almonte
automatic core saw. The remainder of the core was retained in core trays tagged
with a hole number and metre mark.
• FML RC samples were riffle split to a nominal 2.5kg to 3kg sample weight. The
drilling method was designed to maximise sample recovery and delivery of a clean,
representative sample into the calico bag.
• 2014 FML The samples were submitted to ALS or Kal Assay for analysis.
• 2020 onward FML samples were submitted to Jinning lab in Kalgoorlie with gold
analysed by fire assay
• Where possible all RC samples were drilled dry to maximise recovery. Sample
condition was recorded (wet, dry, or damp) at the time of sampling and recorded in
the database.
• The samples were collected in a pre-numbered calico bag bearing a unique sample
ID. Samples were crushed to 75μm at the laboratory and riffle split (if required) to a
maximum 3kg sample weight. Gold analysis was primarily a 40g Fire Assay for
individual samples with an ICP-OES or AAS Finish.
• The assay laboratories’ sample preparation procedures follow industry best
practice, with techniques and practices that are appropriate for this style of
mineralisation. Pulp duplicates were taken at the pulverising stage and selective
repeats conducted at the laboratories’ discretion.
• FML QAQC checks involved inserting a certified standard or blank alternating every
20 samples. A minimum of 3 standards was inserted for every sample batch
submitted.
• The sample sizes are considered to be appropriate for the type, style and
consistency of mineralisation encountered during this phase of exploration.
• Goldfan originally submitted its samples to Australian Laboratories Group
Kalgoorlie. The 2kg samples were oven dried, then crushed to a nominal 6mm and

Market Announcement | Page 10 of 28

split once through a Jones riffle splitter. A 1kg sub-sample was fine pulverised in a
Keegor Pulveriser to a nominal 100 microns. This sample was homogenised and
400-500g split as the assay pulp for analysis. Assaying was by a classical fire assay
on a 50g charge to a lower detection limit of 0.01 ppm gold.
• Later RC drilled by Goldfan was submitted to Minlab Kalgoorlie where the whole of
the sample is pulverised in a ring mill before 300g sample is split as the assay pulp.
Assaying was by fire assay on a 50g charge to a lower detection limit of 0.01 ppm
gold.
• Goldfan conducted inter-laboratory check sampling over approx. 10% of holes over
the whole program with results found to be within acceptable limits.
• Laboratory repeat checks were also run on the assay data.
• Cord submitted 1m samples to Kalgoorlie Assay Laboratory.
• Clackline submitted 1m RC samples or 1m ½ core diamond samples to Australian
Assay Laboratories for fire assay on a 50g charge.
Quality of assay
data and laboratory
tests		 • The assay method and laboratory procedures were appropriate for this style of
mineralisation. The fire assay technique was designed to measure total gold in the
sample.
• No geophysical tools, spectrometers or handheld XRF instruments were used.
• The QA/QC process described above was sufficient to establish acceptable levels
of accuracy and precision. All results from assay standards and duplicates were
scrutinised to ensure they fell within acceptable tolerances.
Verification of
sampling and
assaying		 • Significant intervals were visually inspected by company geologists to correlate
assay results to logged mineralisation. Consultants were not used for this process.
• Primary data is sent in digital format to the company’s Database Administrator (DBA)
as often as was practicable. The DBA imports the data into an acQuire database,
with assay results merged into the database upon receipt from the laboratory. Once
loaded, data was extracted for verification by the geologist in charge of the project.
• No adjustments were made to any current or historic data. If data could not be
validated to a reasonable level of certainty it was not used in any resource
estimations.
Location of data
points		 • All 2020 onwards FML drill core was oriented by electronic accelerator system. All
diamond holes were surveyed on advance during drilling single shot, open hole
using a reflex system.
• All 2020 onwards FML RC holes were down hole surveyed using a north seeking
gyro.
• All 2014 FML holes were surveyed using an EMS system.
• After completion, the drill hole locations were picked up by DGPS with accuracy of
+/-20cm.
• All coordinates and bearings use the MGA94 Zone 51 grid system.
• FML utilises Landgate sourced regional topographic maps and contours as well as
internally produced survey pick-ups produced by the mining survey teams utilising
DGPS base station instruments.
• Detailed drone topography and imagery has also been acquired over the project
area to provide additional topographic detail and spatial accuracy.
• Goldfan holes were laid out and picked up by the Three Mile Hill Survey Department.
Down hole surveying was conducted by Down Hole Surveys using Eastman multiple
shot cameras.
• Clackline used Eastman single shot cameras for down hole surveying and state
collars were surveyed with respect to local grids that existed at the time.
Data spacing and
distribution		 • Drill spacing at CNX in indicated resource areas is approximately 20m x 10m.
Inferred parts of the CNX resource has a drill spacing approximating 40m x 20m.
The average vertical depth of the RC drilling is 80m, with a maximum depth of 250m
and the average depth of the diamond drilling was 210m with a maximum depth of
270.

Market Announcement | Page 11 of 28

Orientation of data
in relation to
geological structure		 • Drilling was designed based on known geological models, field mapping, verified
historical data and cross-sectional interpretation.
• The vast majority of holes are oriented at right angles to the strike of the host G2
Gabbro intrusion, with dip optimised for drill capabilities and the dip of the ore body.
• During 2020 and 2021 significant additional structural data was acquired from
Geotechnical drilling. Based on this data 8 RC/DD holes were drilled with dips to
the NW in order to facilitate the best possible orientation of drilling to test the CNX
stockwork and convert significant parts of the resource to indicated status
Sample security • All samples were reconciled against the sample submission with any omissions or
variations reported to FML.
• All samples were bagged in a tied numbered calico bag, grouped into green plastic
bags. The bags were placed into cages with a sample submission sheet and
delivered directly from site to the Kalgoorlie laboratories by FML personnel.
• Historic sample security is not recorded.
Audits or reviews • A review of sampling techniques was carried out by rOREdata Pty Ltd in late 2013
as part of a database amalgamation project. Their only recommendation was to
change the QA/QC intervals to bring them into line with the FML Laverton system,
which uses the same frequency of standards and duplicates but has them inserted
at different points within the numbering sequence.

Market Announcement | Page 12 of 28

Section 2 Reporting of Exploration Results

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

Criteria Commentary
Mineral tenement
and land tenure
status		 • CNX is located within Mining Lease M15/645, registered to Focus Minerals Ltd. and
Focus Operations Pty Ltd of Perth, Western Australia and which is current until March
2035.
• The Malinyu Ghoorlie 2017 and Maduwongga 2017 Claims overlap this resource area.
Exploration done by
other parties		 • CNX and the adjacent Three Mile Hill deposits have been explored by numerous
parties over the years. A 1986 Cord WAMEX report references the lease mentioned
in 1947 Department of Mines Annual Reports. They also indicate earlier prospecting
activity was evident by:
• two shallow shafts
• several shallow pits sunk within the mineralised dolerite belt.
• large scale alluvial/elluvial surface mining by previous holders
• More modern exploration of the deposit has involved various drilling campaigns by
various drilling methods such as RAB, RC and Diamond since the mid 1960’s.
• Geological mapping, trenching, ground magnetics, aeromagnetics and soil sampling
have also been routinely carried out by other parties since the mid 1980’s.
• Herald Resources briefly mined CNX in the 1990’s by open pit extraction while it was
mining the adjacent Three Mile Hill deposit to the SE of the Great Eastern Highway.
A 1.2Mtpa processing plant was constructed at the Three Mile Hill deposit.
• The existing CNX pit is 275m long, 75m wide and has been mined to a depth of 30m.
• The 1991 CNX OP produced 196Kt @ 1.86 g/t for 11,700oz targeting mineralisation
exceeding 1 g/t.. Further to the south-east along the strike of the host G2 Gabbro is
the Three Mile Hill OP. TMH OP has reported production of 4.2Mt at a grade of 2.4g/t
Au for 324,116 ounces.
Geology CNX
•
The CNX deposit mineralisation is located within the steeply southwest dipping and
northwest striking Three Mile Hill Meta-gabbro. The Three Mile Hill Gabbro is a
layered sill which includes a differentiated coarse grained granophyric quartz-
hornblende granodiorite unit locally called “G2 Gabbro”.
•
The bulk of the quartz stockwork hosted mineralisation is developed within the G2
Gabbro.
•
Bulk style stockwork mineralisation is hosted by networks of 1 to +5cm quartz veins
with general very shallow dips to the south-west.
•
Higher grade, generally 5 to +30cm laminated quartz veins, dip moderately to the
south-east.
•
Together the two orientations of quartz vein stockworks have developed a bulk-style,
tabular ore body at CNX within the G2 Gabbro. This mineralisation extends under
the Great Eastern Highway and has been confirmed by drilling to be contiguous with
the Three Mile Hill OP 190m to the south-east.
•
CNX deposit averages 35 to 45m width and outcrops/subcrops over more than 700m
strike.
•
Infill and extensional drilling conducted since late 2020 has shown the mineralisation
at CNX to be remarkably consistent and predictable with new drill holes beneath the
indicated parts of the resource confirming potential for future resource expansion.
CNX Gap Zone/Princess Midas
•
Recent drilling north of CNX OP has confirmed the location of the G2 Gabbro
extending a further 190m to the NW before folding and extending an additional 400m
to the west – southwest.

Market Announcement | Page 13 of 28

•
Stockworks have been intersected between the north end of CNX and the fold nose
over 190m strike. However, the tenor and width of the mineralisation declines in this
area and it is now termed the “Gap Zone”. It is also noted the Gap Zone is crosscut
by several north-west trending faults resulting in block faulting of the stratigraphy.
•
Several shallow workings and a single significantly larger shaft are located at the
north end of the Gap Zone, historically called “Princess Midas”. The workings have
targeted some of the Gap Zone crosscutting faults and also the eastern margin of the
fold hinge where the mine stratigraphy changes orientation and extends west-
southwest.
Green Light
•
Drilling has been conducted over 400m west-southwest strike of this fold limb
targeting the now mapped G2 Gabbro. The drilling has extended a new zone of CNX
bulk style mineralisation 400m to the west. This developing prospect has been named
“Green Light”		 •
Stockworks have been intersected between the north end of CNX and the fold nose
over 190m strike. However, the tenor and width of the mineralisation declines in this
area and it is now termed the “Gap Zone”. It is also noted the Gap Zone is crosscut
by several north-west trending faults resulting in block faulting of the stratigraphy.
•
Several shallow workings and a single significantly larger shaft are located at the
north end of the Gap Zone, historically called “Princess Midas”. The workings have
targeted some of the Gap Zone crosscutting faults and also the eastern margin of the
fold hinge where the mine stratigraphy changes orientation and extends west-
southwest.
Green Light
•
Drilling has been conducted over 400m west-southwest strike of this fold limb
targeting the now mapped G2 Gabbro. The drilling has extended a new zone of CNX
bulk style mineralisation 400m to the west. This developing prospect has been named
“Green Light”		 •
Stockworks have been intersected between the north end of CNX and the fold nose
over 190m strike. However, the tenor and width of the mineralisation declines in this
area and it is now termed the “Gap Zone”. It is also noted the Gap Zone is crosscut
by several north-west trending faults resulting in block faulting of the stratigraphy.
•
Several shallow workings and a single significantly larger shaft are located at the
north end of the Gap Zone, historically called “Princess Midas”. The workings have
targeted some of the Gap Zone crosscutting faults and also the eastern margin of the
fold hinge where the mine stratigraphy changes orientation and extends west-
southwest.
Green Light
•
Drilling has been conducted over 400m west-southwest strike of this fold limb
targeting the now mapped G2 Gabbro. The drilling has extended a new zone of CNX
bulk style mineralisation 400m to the west. This developing prospect has been named
“Green Light”		 •
Stockworks have been intersected between the north end of CNX and the fold nose
over 190m strike. However, the tenor and width of the mineralisation declines in this
area and it is now termed the “Gap Zone”. It is also noted the Gap Zone is crosscut
by several north-west trending faults resulting in block faulting of the stratigraphy.
•
Several shallow workings and a single significantly larger shaft are located at the
north end of the Gap Zone, historically called “Princess Midas”. The workings have
targeted some of the Gap Zone crosscutting faults and also the eastern margin of the
fold hinge where the mine stratigraphy changes orientation and extends west-
southwest.
Green Light
•
Drilling has been conducted over 400m west-southwest strike of this fold limb
targeting the now mapped G2 Gabbro. The drilling has extended a new zone of CNX
bulk style mineralisation 400m to the west. This developing prospect has been named
“Green Light”
Drill hole
Information		 •
Historic drilling information has been validated against publicly available WAMEX
reports.
Company
Drill Hole Number
WAMEX
Report
A-
Number
WAMEX
Report
Date
CLACKLINE
TMH004R,
TMH011R,
TMH013R,
TMH014R,
TMH016R,
TMH018R,
TMH019R,
TMH021R,
TMH022R,
TMH023R,
TMH024R,
TMH031R,
TMH032R,
TMH033R,
TMH034R,
TMH035R,
TMH036R,
TMH037R,
TMH038R,
TMH039R,
TMH040R,
TMH041R,TMH042R
20750
Jan-86
ECN001RD,ECN002RD
20750
Jan-86
ECN003RD,ECN004RD
20344
1986
CORD-PAL
RC1, RC10, RC11, RC12, RC13, RC14, RC15,
RC16, RC17, RC18, RC19, RC2, RC20, RC21,
RC22, RC23, RC24, RC3, RC4, RC5, RC6, RC7,
RC8
19363
Jun-86
GOLDFAN
TMH001RD,
TMH012RD,
TMH072RD,
TMH098RD,
TMH099RD,
TMH102RD,
TMH015RD,
TMH071RD,
TMH353RD,
TMH354RD,TMH355RD
25383
Oct-88
TMH185R,
TMH186R,
TMH188R,
TMH189R,
TMH190R,
TMH191R,
TMH192R,
TMH193R,
TMH194R,
TMH205R,
TMH180R,
TMH181R,
TMH196R,
TMH197R,
TMH198R,
TMH199R,
TMH200R,
TMH201R,
TMH202R,
TMH203R,
TMH204R,
TMH206R,
TMH207R,
TMH209R,
TMH210R,
TMH211R,
TMH212R,
TMH164RD,
TMH165RD,
TMH166RD,
TMH167RD,
TMH168RD,
TMH169RD,
TMH170RD,
TMH171RD,
TMH172RD,
TMH173RD,
TMH176RD,
TMH177RD,
TMH179RD,
TMH182RD,
TMH183RD,
TMH174RD,
TMH175RD,
TMH178RD,
TMH208RD
33456
Jun-91
Company Drill Hole Number WAMEX
Report
A-
Number		 WAMEX
Report
Date
CLACKLINE TMH004R,
TMH011R,
TMH013R,
TMH014R,
TMH016R,
TMH018R,
TMH019R,
TMH021R,
TMH022R,
TMH023R,
TMH024R,
TMH031R,
TMH032R,
TMH033R,
TMH034R,
TMH035R,
TMH036R,
TMH037R,
TMH038R,
TMH039R,
TMH040R,
TMH041R,TMH042R		 20750 Jan-86
ECN001RD,ECN002RD 20750 Jan-86
ECN003RD,ECN004RD 20344 1986
CORD-PAL RC1, RC10, RC11, RC12, RC13, RC14, RC15,
RC16, RC17, RC18, RC19, RC2, RC20, RC21,
RC22, RC23, RC24, RC3, RC4, RC5, RC6, RC7,
RC8		 19363 Jun-86
TMH001RD,
TMH012RD,
TMH072RD,
TMH098RD,
TMH099RD,
TMH102RD,
TMH015RD,
TMH071RD,
TMH353RD,
TMH354RD,TMH355RD		 25383 Oct-88
GOLDFAN TMH185R,
TMH186R,
TMH188R,
TMH189R,
TMH190R,
TMH191R,
TMH192R,
TMH193R,
TMH194R,
TMH205R,
TMH180R,
TMH181R,
TMH196R,
TMH197R,
TMH198R,
TMH199R,
TMH200R,
TMH201R,
TMH202R,
TMH203R,
TMH204R,
TMH206R,
TMH207R,
TMH209R,
TMH210R,
TMH211R,
TMH212R,
TMH164RD,
TMH165RD,
TMH166RD,
TMH167RD,
TMH168RD,
TMH169RD,
TMH170RD,
TMH171RD,
TMH172RD,
TMH173RD,
TMH176RD,
TMH177RD,
TMH179RD,
TMH182RD,
TMH183RD,
TMH174RD,
TMH175RD,
TMH178RD,
TMH208RD		 33456 Jun-91

Market Announcement | Page 14 of 28

TMH222R,
TMH223R,
TMH224R,
TMH225R,
TMH226R,
TMH227R,
TMH228R,
TMH229R,
TMH230R,
TMH231R,
TMH232R,
TMH242R,
TMH243R,
TMH244R,
TMH245R,
TMH246R,
TMH247R,
TMH248R,
TMH249R, TMH250R, TMH251R		 TMH222R,
TMH223R,
TMH224R,
TMH225R,
TMH226R,
TMH227R,
TMH228R,
TMH229R,
TMH230R,
TMH231R,
TMH232R,
TMH242R,
TMH243R,
TMH244R,
TMH245R,
TMH246R,
TMH247R,
TMH248R,
TMH249R, TMH250R, TMH251R		 43021 Dec-94 Dec-94 Dec-94
TMH255R,
TMH256R,
TMH258R,
TMH259R,
TMH260R,
TMH261R,
TMH262R,
TMH263R,
TMH264R,
TMH265R,
TMH266R,
TMH267R,
TMH268R,
TMH269R,
TMH270R,
TMH271R,
TMH272R,
TMH273R,
TMH275R,
TMH276R,
TMH279R,
TMH280R,
TMH282R,
TMH283R,
TMH284R,
TMH285R,
TMH287R,
TMH288R,
TMH289R,
TMH290R,
TMH291R,
TMH292R,
TMH294R,
TMH296R,
TMH297R,
TMH299R,
TMH300R,
TMH301R,
TMH302R,
TMH303R,
TMH304R,
TMH305R,
TMH306R,
TMH307R,
TMH308R,
TMH309R,
TMH310R,
TMH311R,
TMH312R,
TMH313R,
TMH314R,
TMH315R,
TMH316R,
TMH317R,
TMH321R,
TMH322R,
TMH323R,
TMH324R,
TMH327R,
TMH328R,
TMH329R,
TMH330R,
TMH331R,
TMH333R,
TMH334R,
TMH335R,
TMH336R,
TMH337R,
TMH338R,
TMH339R,TMH340R,TMH341R		 46486 Dec-95
TMH579R,TMH578RD 53195 Dec-97
GMC
/GOLDFAN		 TMH338R,
TMH339R,
TMH340R,
TMH341R,
TMH344RD,
TMH345RD,
TMH346RD,
TMH347RD,
TMH352RD,
TMH353RD,TMH354RD,TMH355RD		 49956 Jan-97
FOCUS CNXC001, CNXC002, CNXC003, CNXC003A,
CNXC004, CNXC005, CNXC006, CNXC007,
CNXC008, CNXC009, CNXC010, CNXC011,
CNXC012, CNXC013, CNXC015, CNXC016,
CNXC017,CNXDD014		 96924 Feb-12
CNXC019, CNXC020, CNXC021, CNXC022,
CNXC023, CNXC024, CNXC025, CNXC026,
CNXC027, CNXC028, CNXC029, CNXC030,
CNXC031,CNXC032		 101352 Feb-14
20CNDD001,
20CNRC001,
20CNRC002,
20CNRC003		 126766 Feb-21
•
Holes not available through WAMEX but previously reported:
Company Drill Hole Number Announcement Release Date
Northland TMDDH-2, TMDDH-3, TMDDH-4,
TMDDH-5, TMDDH-6, TMDDH-7,
TMDDH-8		 Large-Scale
Mineral
Resource at Coolgardie Gold
Project's CNX Deposit		 17-Dec-20
FOCUS 21CNDD001,
21CNDD002,
21CNDD003,
21CNDD004,
21CNDD005,
21CNDD006,		 CNX’s
Mineral
Resource
increases 30% in major		 24-Jun-21
TMH222R,
TMH223R,
TMH224R,
TMH225R,
TMH226R,
TMH227R,
TMH228R,
TMH229R,
TMH230R,
TMH231R,
TMH232R,
TMH242R,
TMH243R,
TMH244R,
TMH245R,
TMH246R,
TMH247R,
TMH248R,
TMH249R, TMH250R, TMH251R		 TMH222R,
TMH223R,
TMH224R,
TMH225R,
TMH226R,
TMH227R,
TMH228R,
TMH229R,
TMH230R,
TMH231R,
TMH232R,
TMH242R,
TMH243R,
TMH244R,
TMH245R,
TMH246R,
TMH247R,
TMH248R,
TMH249R, TMH250R, TMH251R		 43021 Dec-94 Dec-94 Dec-94
TMH255R,
TMH256R,
TMH258R,
TMH259R,
TMH260R,
TMH261R,
TMH262R,
TMH263R,
TMH264R,
TMH265R,
TMH266R,
TMH267R,
TMH268R,
TMH269R,
TMH270R,
TMH271R,
TMH272R,
TMH273R,
TMH275R,
TMH276R,
TMH279R,
TMH280R,
TMH282R,
TMH283R,
TMH284R,
TMH285R,
TMH287R,
TMH288R,
TMH289R,
TMH290R,
TMH291R,
TMH292R,
TMH294R,
TMH296R,
TMH297R,
TMH299R,
TMH300R,
TMH301R,
TMH302R,
TMH303R,
TMH304R,
TMH305R,
TMH306R,
TMH307R,
TMH308R,
TMH309R,
TMH310R,
TMH311R,
TMH312R,
TMH313R,
TMH314R,
TMH315R,
TMH316R,
TMH317R,
TMH321R,
TMH322R,
TMH323R,
TMH324R,
TMH327R,
TMH328R,
TMH329R,
TMH330R,
TMH331R,
TMH333R,
TMH334R,
TMH335R,
TMH336R,
TMH337R,
TMH338R,
TMH339R,TMH340R,TMH341R		 46486 Dec-95
TMH579R,TMH578RD 53195 Dec-97
GMC
/GOLDFAN		 TMH338R,
TMH339R,
TMH340R,
TMH341R,
TMH344RD,
TMH345RD,
TMH346RD,
TMH347RD,
TMH352RD,
TMH353RD,TMH354RD,TMH355RD		 49956 Jan-97
FOCUS CNXC001, CNXC002, CNXC003, CNXC003A,
CNXC004, CNXC005, CNXC006, CNXC007,
CNXC008, CNXC009, CNXC010, CNXC011,
CNXC012, CNXC013, CNXC015, CNXC016,
CNXC017,CNXDD014		 96924 Feb-12
CNXC019, CNXC020, CNXC021, CNXC022,
CNXC023, CNXC024, CNXC025, CNXC026,
CNXC027, CNXC028, CNXC029, CNXC030,
CNXC031,CNXC032		 101352 Feb-14
20CNDD001,
20CNRC001,
20CNRC002,
20CNRC003		 126766 Feb-21
•
Holes not available through WAMEX but previously reported:
Company Drill Hole Number Announcement Release Date
Northland TMDDH-2, TMDDH-3, TMDDH-4,
TMDDH-5, TMDDH-6, TMDDH-7,
TMDDH-8		 Large-Scale
Mineral
Resource at Coolgardie Gold
Project's CNX Deposit		 17-Dec-20
FOCUS 21CNDD001,
21CNDD002,
21CNDD003,
21CNDD004,
21CNDD005,
21CNDD006,		 CNX’s
Mineral
Resource
increases 30% in major		 24-Jun-21

Market Announcement | Page 15 of 28

21CNDD007,
21CNDD008,
21CNDD009,
21CNDD010,
21CNDD011,
21CNDD012,
21CNDD013,
21CNDD014,
21CNDD015,
21CNDD016,
21CNDD017,
21CNRC001,
21CNRC002,
21CNRC003,
21CNRC004,
21CNRC005,
21CNRC006,
21CNRC007,
21CNRC008,
21CNRC009,
21CNRC010,
21CNRC011,
21CNRC012,
21CNRC013,
21CNRC014,
21CNRC015,
21CNRC016,
21CNRC017,
21CNRC018,
21CNRC019,
21CNRC020,
21CNRC021,
21CNRC022,
21CNRC023,
21CNRC024,
21CNRC026,
21CNRC028,
21CNRC029,
21CNRC030,
21CNRD001,
21CNRD002,
21CNRD003,
21CNRD004,
21CNRD005,
21CNRD025,21CNRD027		 21CNDD007,
21CNDD008,
21CNDD009,
21CNDD010,
21CNDD011,
21CNDD012,
21CNDD013,
21CNDD014,
21CNDD015,
21CNDD016,
21CNDD017,
21CNRC001,
21CNRC002,
21CNRC003,
21CNRC004,
21CNRC005,
21CNRC006,
21CNRC007,
21CNRC008,
21CNRC009,
21CNRC010,
21CNRC011,
21CNRC012,
21CNRC013,
21CNRC014,
21CNRC015,
21CNRC016,
21CNRC017,
21CNRC018,
21CNRC019,
21CNRC020,
21CNRC021,
21CNRC022,
21CNRC023,
21CNRC024,
21CNRC026,
21CNRC028,
21CNRC029,
21CNRC030,
21CNRD001,
21CNRD002,
21CNRD003,
21CNRD004,
21CNRD005,
21CNRD025,21CNRD027		 21CNDD007,
21CNDD008,
21CNDD009,
21CNDD010,
21CNDD011,
21CNDD012,
21CNDD013,
21CNDD014,
21CNDD015,
21CNDD016,
21CNDD017,
21CNRC001,
21CNRC002,
21CNRC003,
21CNRC004,
21CNRC005,
21CNRC006,
21CNRC007,
21CNRC008,
21CNRC009,
21CNRC010,
21CNRC011,
21CNRC012,
21CNRC013,
21CNRC014,
21CNRC015,
21CNRC016,
21CNRC017,
21CNRC018,
21CNRC019,
21CNRC020,
21CNRC021,
21CNRC022,
21CNRC023,
21CNRC024,
21CNRC026,
21CNRC028,
21CNRC029,
21CNRC030,
21CNRD001,
21CNRD002,
21CNRD003,
21CNRD004,
21CNRD005,
21CNRD025,21CNRD027		 21CNDD007,
21CNDD008,
21CNDD009,
21CNDD010,
21CNDD011,
21CNDD012,
21CNDD013,
21CNDD014,
21CNDD015,
21CNDD016,
21CNDD017,
21CNRC001,
21CNRC002,
21CNRC003,
21CNRC004,
21CNRC005,
21CNRC006,
21CNRC007,
21CNRC008,
21CNRC009,
21CNRC010,
21CNRC011,
21CNRC012,
21CNRC013,
21CNRC014,
21CNRC015,
21CNRC016,
21CNRC017,
21CNRC018,
21CNRC019,
21CNRC020,
21CNRC021,
21CNRC022,
21CNRC023,
21CNRC024,
21CNRC026,
21CNRC028,
21CNRC029,
21CNRC030,
21CNRD001,
21CNRD002,
21CNRD003,
21CNRD004,
21CNRD005,
21CNRD025,21CNRD027		 21CNDD007,
21CNDD008,
21CNDD009,
21CNDD010,
21CNDD011,
21CNDD012,
21CNDD013,
21CNDD014,
21CNDD015,
21CNDD016,
21CNDD017,
21CNRC001,
21CNRC002,
21CNRC003,
21CNRC004,
21CNRC005,
21CNRC006,
21CNRC007,
21CNRC008,
21CNRC009,
21CNRC010,
21CNRC011,
21CNRC012,
21CNRC013,
21CNRC014,
21CNRC015,
21CNRC016,
21CNRC017,
21CNRC018,
21CNRC019,
21CNRC020,
21CNRC021,
21CNRC022,
21CNRC023,
21CNRC024,
21CNRC026,
21CNRC028,
21CNRC029,
21CNRC030,
21CNRD001,
21CNRD002,
21CNRD003,
21CNRD004,
21CNRD005,
21CNRD025,21CNRD027		 21CNDD007,
21CNDD008,
21CNDD009,
21CNDD010,
21CNDD011,
21CNDD012,
21CNDD013,
21CNDD014,
21CNDD015,
21CNDD016,
21CNDD017,
21CNRC001,
21CNRC002,
21CNRC003,
21CNRC004,
21CNRC005,
21CNRC006,
21CNRC007,
21CNRC008,
21CNRC009,
21CNRC010,
21CNRC011,
21CNRC012,
21CNRC013,
21CNRC014,
21CNRC015,
21CNRC016,
21CNRC017,
21CNRC018,
21CNRC019,
21CNRC020,
21CNRC021,
21CNRC022,
21CNRC023,
21CNRC024,
21CNRC026,
21CNRC028,
21CNRC029,
21CNRC030,
21CNRD001,
21CNRD002,
21CNRD003,
21CNRD004,
21CNRD005,
21CNRD025,21CNRD027		 boost for Coolgardie Gold
Project		 boost for Coolgardie Gold
Project
•
New Significant Intercepts not		 previously reported:
Hole ID Easting
Northing
RL		 Dip Azimuth Depth
Intersection
(MGA 94 Zone 51) (MGA94) (m)
CNX Drill C ollars. Significant Intersectio ns calculated at 0.5g/t Au cut off an up to 3m internal dil
21CNDD014 327389 6577792 425 -50 240 300.7 0.74m @ 1.38g/t from 284.26m for (GxM 1)
21CNRD001 327347 6577707 425 -60 290 270.8 1.00m @ 1.28g/t from 143m for (GxM 1)
3.00m @ 4.13g/t from 169m for (GxM 12)
7.00m @ 1.2g/t from 227m for (GxM 8)
4.00m @ 5.13g/t from 242m for (GxM 21)
21CNRD002 327373 6577674 428 -59 292 270.7 4.00m @ 0.56g/t from 142m for (GxM 2)
1.00m @ 0.68g/t from 149m for (GxM 1)
1.00m @ 0.52g/t from 153m for (GxM 1)
4.00m @ 0.91g/t from 196m for (GxM 4)

1.00m @ 1.06g/t from 213m for (GxM 1)
1.00m @ 0.68g/t from 224m for (GxM 1)
1.00m @ 0.54g/t from 228m for (GxM 1)
1.00m @ 1.07g/t from 239m for (GxM 1)
7.38m @ 4.42g/t from 241m for (GxM 33)
21CNRD003 327402 6577646 428 -59 300 284.9 3.00m @ 1.36g/t from 158m for (GxM 4)
1.00m @ 1.34g/t from 188m for (GxM 1)
5.00m @ 1.75g/t from 210m for (GxM 9)
7.00m @ 0.78g/t from 219m for (GxM 5)
1.00m @ 0.79g/t from 230m for (GxM 1)
2.00m @ 2.21g/t from 247m for (GxM 4)

Market Announcement | Page 16 of 28

3.00m @ 2.97g/t from 255m for (GxM 9)
1.00m @ 0.78g/t from 268m for (GxM 1)
9.86m @ 1.64g/t from 275m for (GxM 16)
21CNRD004 327433 6577616 426 -61 301 282.4 11.00m @ 1.79g/t from 140m for (GxM 20)
10.00m @ 0.83g/t from 156m for (GxM 8)
1.00m @ 1.08g/t from 182m for (GxM 1)
6.00m @ 1.19g/t from 200m for (GxM 7)
4.00m @ 1.27g/t from 211m for (GxM 5)
4.00m @ 1.35g/t from 244m for (GxM 5)
3.00m @ 3.29g/t from 259m for (GxM 10)
1.00m @ 0.88g/t from 269m for (GxM 1)
21CNRD005 327462 6577592 426 -61 302 264.4 0.89m @ 4.94g/t from 123m for (GxM 4)
25.00m @ 0.72g/t from 133m for (GxM 18)
5.03m @ 1.48g/t from 166.88m for (GxM 7)

9.00m @ 1.29g/t from 177m for (GxM 12)

0.59m @ 5.07g/t from 189.41m for (GxM 3)
8.00m @ 1.3g/t from 198m for (GxM 10)
1.00m @ 1.84g/t from 220m for (GxM 2)
4.00m @ 1.25g/t from 240m for (GxM 5)
21CNRD007 327406 6577613 425 -60 317 201.6 1.00m @ 1.53g/t from 12m for (GxM 2)
2.00m @ 6.3g/t from 38m for (GxM 13)
5.00m @ 0.79g/t from 59m for (GxM 4)
4.00m @ 0.96g/t from 72m for (GxM 4)
1.00m @ 0.5g/t from 80m for (GxM 1)
11.00m @ 2.78g/t from 86m for (GxM 31)
17.00m @ 0.86g/t from 101m for (GxM 15)

9.00m @ 1.27g/t from 126m for (GxM 11)
9.00m @ 2.33g/t from 139m for (GxM 21)
1.00m @ 0.67g/t from 152m for (GxM 1)
2.00m @ 0.53g/t from 159m for (GxM 1)
1.00m @ 1.15g/t from 168m for (GxM 1)
1.00m @ 0.5g/t from 171m for (GxM 1)
1.00m @ 0.89g/t from 178m for (GxM 1)
4.00m @ 1.78g/t from 191m for (GxM 7)
21CNRD025 327309 6577725 422 -61 284 315.7 1.00m @ 1.77g/t from 70m for (GxM 2)
0.90m @ 0.91g/t from 75.1m for (GxM 1)
6.00m @ 4.38g/t from 83m for (GxM 26)

1.00m @ 1.36g/t from 114m for (GxM 1)
1.00m @ 0.51g/t from 131m for (GxM 1)
1.00m @ 0.51g/t from 137m for (GxM 1)
1.00m @ 0.6g/t from 145m for (GxM 1)

Market Announcement | Page 17 of 28

1.00m @ 0.54g/t from 164m for (GxM 1)
6.00m @ 0.84g/t from 198m for (GxM 5)
21CNRD027 327516 6577536 423 -60 292 240.6
1.00m @ 3.96g/t from 209m for (GxM 4)

1.00m @ 1.28g/t from 218m for (GxM 1)
21CNRD035 327500 6577516 422 -55 317 150.3 1.00m @ 0.76g/t from 7m for (GxM 1)
1.00m @ 0.64g/t from 22m for (GxM 1)
1.00m @ 0.65g/t from 32m for (GxM 1)
15.00m @ 1.93g/t from 64m for (GxM 29)
1.00m @ 0.98g/t from 85m for (GxM 1)
2.00m @ 0.79g/t from 100m for (GxM 2)
21CNRD036 327426 6577589 425 -64 318 195.9 1.00m @ 1.7g/t from 27m for (GxM 2)
1.00m @ 0.54g/t from 32m for (GxM 1)
1.00m @ 0.78g/t from 36m for (GxM 1)
1.00m @ 0.7g/t from 41m for (GxM 1)
6.00m @ 0.72g/t from 69m for (GxM 4)

1.00m @ 3.25g/t from 83m for (GxM 3)
18.00m @ 1.39g/t from 93m for (GxM 25)
2.00m @ 1.08g/t from 148m for (GxM 2)
8.00m @ 1.47g/t from 158m for (GxM 12)
5.00m @ 2.11g/t from 172m for (GxM 11)
6.90m @ 0.84g/t from 189m for (GxM 6)
21CNRD037 327442 6577575 425 -59 312 213.8 8.00m @ 0.7g/t from 34m for (GxM 6)
1.00m @ 1.04g/t from 77m for (GxM 1)
1.00m @ 1.03g/t from 87m for (GxM 1)
7.00m @ 0.78g/t from 92m for (GxM 5)
13.00m @ 2.67g/t from 106m for (GxM 35)
6.00m @ 0.76g/t from 131m for (GxM 5)

1.00m @ 0.85g/t from 143m for (GxM 1)
1.00m @ 0.63g/t from 159m for (GxM 1)
1.00m @ 0.51g/t from 161m for (GxM 1)
1.00m @ 0.59g/t from 163m for (GxM 1)
5.00m @ 0.59g/t from 167m for (GxM 3)
1.00m @ 0.57g/t from 185m for (GxM 1)
1.00m @ 0.73g/t from 192m for (GxM 1)
21CNRD038 327465 6577553 424 -54 311 234.7 5.00m @ 0.6g/t from 3m for (GxM 3)
5.00m @ 0.68g/t from 18m for (GxM 3)
31.00m @ 1.01g/t from 30m for (GxM 31)

3.00m @ 3.08g/t from 105m for (GxM 9)
21.00m @ 1.12g/t from 116m for (GxM 24)
6.00m @ 0.59g/t from 140m for (GxM 4)
5.00m @ 1.96g/t from 174m for (GxM 10)

Market Announcement | Page 18 of 28

11.00m @ 1.46g/t from 183m for (GxM 16)
1.00m @ 0.72g/t from 199m for (GxM 1)
21CNRD039 327502 6577537 424 -51 307 216.7 6.00m @ 1.37g/t from 21m for (GxM 8)
1.00m @ 0.71g/t from 47m for (GxM 1)
9.00m @ 0.78g/t from 61m for (GxM 7)
1.00m @ 0.84g/t from 76m for (GxM 1)
1.00m @ 0.78g/t from 90m for (GxM 1)
8.00m @ 6.46g/t from 101m for (GxM 52)

3.00m @ 0.68g/t from 113m for (GxM 2)
2.00m @ 0.8g/t from 122m for (GxM 2)
11.00m @ 1.42g/t from 127m for (GxM 16)
11.00m @ 2.67g/t from 143m for (GxM 29)
8.20m @ 0.68g/t from 159.8m for (GxM 6)
5.13m @ 0.75g/t from 177m for (GxM 4)
6.00m @ 0.62g/t from 188m for (GxM 4)
21CNRD040 327496 6577520 423 -50 310 216.5 1.00m @ 2.4g/t from 0m for (GxM 2)
2.00m @ 3.61g/t from 47m for (GxM 7)
2.00m @ 1.33g/t from 57m for (GxM 3)
1.00m @ 0.9g/t from 101m for (GxM 1)
2.00m @ 1.04g/t from 109m for (GxM 2)
56.05m @ 1.36g/t from 122.95m for (GxM
76)
2.00m @ 0.67g/t from 193m for (GxM 1)
1.00m @ 0.5g/t from 197m for (GxM 1)
6.00m @ 0.54g/t from 200m for (GxM 3)
1.00m @ 0.78g/t from 209m for (GxM 1)
21CNRD041 327480 6577516 421 -52 312 240.6 1.00m @ 3.32g/t from 10m for (GxM 3)
2.00m @ 1.12g/t from 18m for (GxM 2)
1.00m @ 1.24g/t from 43m for (GxM 1)
2.00m @ 0.56g/t from 50m for (GxM 1)
9.00m @ 1.33g/t from 56m for (GxM 12)
2.00m @ 1.23g/t from 69m for (GxM 2)
3.00m @ 0.8g/t from 75m for (GxM 2)

1.00m @ 0.82g/t from 83m for (GxM 1)

1.00m @ 0.83g/t from 87m for (GxM 1)
1.00m @ 0.89g/t from 92m for (GxM 1)
1.00m @ 0.68g/t from 101m for (GxM 1)
1.00m @ 0.66g/t from 104m for (GxM 1)
19.00m @ 1.68g/t from 110m for (GxM 32)
33.00m @ 1.64g/t from 135m for (GxM 54)
15.00m @ 0.9g/t from 185m for (GxM 14)
1.00m @ 1.83g/t from 230m for (GxM 2)

Market Announcement | Page 19 of 28

21CNRD042 327471 6577566 425 -58 312 222.7 7.00m @ 0.58g/t from 3m for (GxM 4)
1.00m @ 1.04g/t from 16m for (GxM 1)
1.00m @ 0.53g/t from 21m for (GxM 1)
1.00m @ 1.14g/t from 26m for (GxM 1)
1.00m @ 0.76g/t from 56m for (GxM 1)
1.00m @ 0.64g/t from 60m for (GxM 1)

13.00m @ 1.49g/t from 92m for (GxM 19)
16.00m @ 1.24g/t from 109m for (GxM 20)
8.00m @ 0.65g/t from 133m for (GxM 5)
1.00m @ 0.6g/t from 171m for (GxM 1)
1.00m @ 0.85g/t from 173m for (GxM 1)
1.00m @ 1.57g/t from 193m for (GxM 2)
1.00m @ 6.74g/t from 219m for (GxM 7)
21CNRD043 327439 6577599 426 -57 312 171.8 1.00m @ 0.83g/t from 3m for (GxM 1)
1.00m @ 0.6g/t from 6m for (GxM 1)
1.00m @ 0.56g/t from 81m for (GxM 1)
12.00m @ 1.37g/t from 91m for (GxM 16)

3.00m @ 1.31g/t from 113m for (GxM 4)
7.00m @ 1.09g/t from 122m for (GxM 8)
1.00m @ 1.11g/t from 138m for (GxM 1)
7.00m @ 0.5g/t from 156m for (GxM 4)
1.00m @ 0.51g/t from 166m for (GxM 1)
21CNRD044 327453 6577581 425 -54 309 207.7 6.00m @ 0.6g/t from 1m for (GxM 4)
1.00m @ 0.7g/t from 34m for (GxM 1)
2.00m @ 0.55g/t from 43m for (GxM 1)
1.00m @ 0.55g/t from 80m for (GxM 1)
1.00m @ 0.75g/t from 84m for (GxM 1)
1.00m @ 0.66g/t from 87m for (GxM 1)
3.00m @ 2.08g/t from 93m for (GxM 6)

5.00m @ 0.9g/t from 106m for (GxM 5)

4.00m @ 1.66g/t from 115m for (GxM 7)
3.00m @ 0.79g/t from 129m for (GxM 2)
1.00m @ 0.82g/t from 147m for (GxM 1)
1.00m @ 3.03g/t from 158m for (GxM 3)
1.00m @ 0.81g/t from 171m for (GxM 1)
1.00m @ 2.41g/t from 192m for (GxM 2)
1.00m @ 0.97g/t from 199m for (GxM 1)
1.00m @ 0.53g/t from 206m for (GxM 1)
21CNRD045 327417 6577579 423 -58 314 237.7 1.00m @ 1.51g/t from 6m for (GxM 2)

9.00m @ 4.39g/t from 18m for (GxM 40)
1.00m @ 0.8g/t from 33m for (GxM 1)

Market Announcement | Page 20 of 28

2.00m @ 0.89g/t from 41m for (GxM 2)
22.00m @ 1.57g/t from 76m for (GxM 35)
3.00m @ 0.5g/t from 102m for (GxM 2)
1.00m @ 0.57g/t from 106m for (GxM 1)
1.00m @ 0.52g/t from 108m for (GxM 1)
4.00m @ 1.61g/t from 117m for (GxM 6)
13.00m @ 1.24g/t from 139m for (GxM 16)
2.00m @ 2.1g/t from 156m for (GxM 4)
1.00m @ 1.75g/t from 186m for (GxM 2)
1.00m @ 1.23g/t from 190m for (GxM 1)
3.00m @ 1.5g/t from 203m for (GxM 5)
1.00m @ 0.96g/t from 214m for (GxM 1)
1.00m @ 0.5g/t from 218m for (GxM 1)
21CNRD046 327434 6577562 423 -56 310 240.7 1.00m @ 0.72g/t from 6m for (GxM 1)
3.00m @ 0.58g/t from 11m for (GxM 2)
1.00m @ 0.85g/t from 20m for (GxM 1)
5.00m @ 0.95g/t from 43m for (GxM 5)
6.00m @ 0.54g/t from 80m for (GxM 3)
1.00m @ 0.6g/t from 93m for (GxM 1)
3.00m @ 0.64g/t from 102m for (GxM 2)
1.00m @ 0.72g/t from 111m for (GxM 1)
4.15m @ 0.6g/t from 122m for (GxM 2)

3.00m @ 1.48g/t from 132m for (GxM 4)
1.00m @ 2.45g/t from 149m for (GxM 2)
6.00m @ 1.6g/t from 157m for (GxM 10)
2.00m @ 6.11g/t from 167m for (GxM 12)
1.00m @ 0.61g/t from 173m for (GxM 1)
1.00m @ 0.5g/t from 178m for (GxM 1)
1.00m @ 0.67g/t from 208m for (GxM 1)
1.00m @ 0.57g/t from 217m for (GxM 1)
1.00m @ 1.85g/t from 222m for (GxM 2)
4.00m @ 1.92g/t from 231m for (GxM 8)
21CNRD047 327451 6577547 423 -55 310 231.7 32.00m @ 0.98g/t from 22m for (GxM 31)
1.00m @ 0.54g/t from 76m for (GxM 1)
2.00m @ 0.65g/t from 79m for (GxM 1)
16.00m @ 1.36g/t from 95m for (GxM 22)

1.00m @ 0.62g/t from 115m for (GxM 1)
2.00m @ 1.1g/t from 159m for (GxM 2)
2.00m @ 1.24g/t from 165m for (GxM 2)
9.00m @ 0.55g/t from 170m for (GxM 5)
6.00m @ 1.6g/t from 183m for (GxM 10)

Market Announcement | Page 21 of 28

1.00m @ 0.55g/t from 196m for (GxM 1)
1.00m @ 0.58g/t from 209m for (GxM 1)
21CNRD048 327436 6577580 425 -57 311 219.7 7.00m @ 3.27g/t from 12m for (GxM 23)
1.00m @ 0.66g/t from 43m for (GxM 1)
1.00m @ 0.65g/t from 68m for (GxM 1)
2.00m @ 16.65g/t from 73m for (GxM 33)
19.00m @ 1.46g/t from 93m for (GxM 28)
3.00m @ 2.06g/t from 116m for (GxM 6)
5.50m @ 0.58g/t from 120.5m for (GxM 3)

1.00m @ 8.14g/t from 135m for (GxM 8)
0.70m @ 1.07g/t from 141m for (GxM 1)
1.00m @ 0.66g/t from 146m for (GxM 1)
1.00m @ 0.63g/t from 149m for (GxM 1)
11.73m @ 1.46g/t from 156m for (GxM 17)
1.35m @ 0.66g/t from 176.65m for (GxM 1)
1.00m @ 1.02g/t from 180m for (GxM 1)
1.00m @ 0.65g/t from 218m for (GxM 1)
21CNRD049 327419 6577595 425 -60 311 216.7 1.00m @ 0.57g/t from 10m for (GxM 1)
1.00m @ 0.52g/t from 16m for (GxM 1)
1.00m @ 0.5g/t from 18m for (GxM 1)
1.00m @ 0.78g/t from 23m for (GxM 1)
3.00m @ 1.02g/t from 29m for (GxM 3)
1.00m @ 0.72g/t from 70m for (GxM 1)
2.00m @ 2.77g/t from 78m for (GxM 6)

12.00m @ 0.99g/t from 84m for (GxM 12)
1.00m @ 0.8g/t from 101m for (GxM 1)
8.00m @ 1.16g/t from 106m for (GxM 9)
1.00m @ 0.53g/t from 122m for (GxM 1)
20.00m @ 1.46g/t from 134m for (GxM 29)
21.00m @ 0.59g/t from 158m for (GxM 12)
1.00m @ 2.06g/t from 184m for (GxM 2)
5.00m @ 0.65g/t from 207m for (GxM 3)
21CNRD050 327396 6577585 422 -54 317 243.6 4.00m @ 2.19g/t from 8m for (GxM 9)
11.00m @ 0.51g/t from 61m for (GxM 6)
1.00m @ 0.58g/t from 90m for (GxM 1)
1.00m @ 0.87g/t from 96m for (GxM 1)

9.00m @ 1.77g/t from 101m for (GxM 16)
1.00m @ 0.72g/t from 143m for (GxM 1)
3.00m @ 1.88g/t from 148m for (GxM 6)
7.00m @ 0.89g/t from 156m for (GxM 6)
1.00m @ 1.31g/t from 168m for (GxM 1)

Market Announcement | Page 22 of 28

2.00m @ 5.25g/t from 185m for (GxM 11)
1.00m @ 0.73g/t from 211m for (GxM 1)
1.00m @ 0.62g/t from 214m for (GxM 1)
9.00m @ 0.77g/t from 232m for (GxM 7)
21CNRD051 327414 6577567 422 -54 316 240.7 41.00m @ 0.93g/t from 84m for (GxM 38)
7.90m @ 0.6g/t from 132.1m for (GxM 5)
6.38m @ 1.37g/t from 145m for (GxM 9)
11.00m @ 0.95g/t from 156m for (GxM 10)
1.00m @ 0.83g/t from 182m for (GxM 1)
6.00m @ 0.96g/t from 206m for (GxM 6)
1.00m @ 0.95g/t from 216m for (GxM 1)
1.00m @ 0.73g/t from 222m for (GxM 1)
21CNRD052 327431 6577550 422 -54 314 240.7 1.00m @ 0.8g/t from 0m for (GxM 1)
3.00m @ 0.84g/t from 64m for (GxM 3)
2.00m @ 1.18g/t from 73m for (GxM 2)

20.00m @ 2.65g/t from 111m for (GxM 53)
11.00m @ 1.76g/t from 151m for (GxM 19)
1.00m @ 0.5g/t from 188m for (GxM 1)
2.00m @ 0.77g/t from 234m for (GxM 2)
21CNRD053 327450 6577532 422 -53 315 246.6 1.00m @ 0.53g/t from 66m for (GxM 1)
1.00m @ 0.82g/t from 80m for (GxM 1)
7.00m @ 1.8g/t from 102m for (GxM 13)
1.00m @ 2.08g/t from 110m for (GxM 2)

1.00m @ 0.7g/t from 123m for (GxM 1)
7.00m @ 0.7g/t from 180m for (GxM 5)
5.00m @ 1.24g/t from 190m for (GxM 6)
1.00m @ 0.71g/t from 212m for (GxM 1)
4.00m @ 2.22g/t from 233m for (GxM 9)
Data aggregation
methods		 •
Mineralised intersections are reported at a 0.5g/t Au cut-off with a minimum reporting
width of 1m for RC holes and 0.3m for diamond holes, composited to 1m.
Relationship
between
mineralisation
widths and
intercept lengths		 •
Holes were drilled orthogonal to mineralisation as much as possible, however the
exact relationship between intercept width and true width cannot be estimated
exactly in all cases.
•
8 RC/DD holes have been drilled with dips toward the northwest, sub parallel and
cutting across the G2 Gabbro. These holes were completed to test the resource
model in areas being converted to Indicated status with holes planned to drill right
across the host stratigraphy. This orientation while not perpendicular to the overall
tabular mineralisation is in fact closer to orthogonal to the mineralised stockwork
system developed within the host G2 Gabbro.
Diagrams • Refer to Figures and Tables in body of the release.
Balanced reporting • Drill hole results available on WAMEX.
Other substantive
exploration data		 • There is no other material exploration data to report at this time.

Market Announcement | Page 23 of 28

  • Further work • Initial economic assessment to be progressed for delivery of Maiden CNX Open Pit Reserve Estimation

Market Announcement | Page 24 of 28

Section 3 Estimation and Reporting of Mineral Resources (Criteria listed in section 1, and where relevant in section 2, also apply to this section)

Criteria Commentary
Database integrity •
FML data was geologically logged electronically, collar and downhole surveys were
also received electronically as was the laboratory analysis results. These electronic
files were loaded into an acQuire database by either consultants rOREdata or the
company in-house Database Administrator. Data was routinely extracted to Microsoft
Access during the drilling program for validation by the geologist in charge of the
project.
•
FML’s database is a Microsoft SQL Server database (acQuire), which is case
sensitive, relational, and normalised to the Third Normal Form. As a result of
normalisation, the following data integrity categories exist:
•
Entity Integrity: no duplicate rows in a table, eliminated redundancy and chance
of error.
•
Domain Integrity: Enforces valid entries for a given column by restricting the
type, the format, or a range of values.
•
Referential Integrity: Rows cannot be deleted which are used by other records.
•
User-Defined Integrity: business rules enforced by acQuire and validation codes
set up by FML.
•
Additionally, in-house validation scripts are routinely run in acQuire on FML’s
database and they include the following checks:
•
Missing collar information
•
Missing logging, sampling, downhole survey data and hole diameter
•
Overlapping intervals in geological logging, sampling, down hole surveys
•
Checks for character data in numeric fields.
•
Data extracted from the database were validated visually in GEOVIA Surpac software
and Seequent Leapfrog software. Also, when loading the data any errors regarding
missing values and overlaps are highlighted.
•
Historic data has been validated against WAMEX reports where possible.
Site visits • Alex Aaltonen, the Competent Person for Sections 1 and 2 of Table 1 is FML’s General
Manager - Exploration and conducts regular site visits including October 27 and early
December.
• Michael Job, the Competent Person for Section 3 of Table 1 is an independent
consultant with Cube Consulting and last visited site in September 2012.
Geological
interpretation		 •
All available drill hole and pit mapping data was used to guide the geological
interpretation of the mineralisation.
•
Further drilling by FML in 2021 confirmed the mineralisation interpretation from the
June 2021 mineral resource update for CNX.
•
The CNX deposit mineralisation is located within the steeply southwest dipping and
northwest striking Three Mile Hill Meta-gabbro. The Three Mile Hill Gabbro is a
layered sill which includes a differentiated coarse grained granophyric quartz-
hornblende granodiorite unit locally called “G2 Gabbro”.
•
The bulk of the quartz stockwork hosted mineralisation is developed within the G2
Gabbro.
•
Bulk style stockwork mineralisation is hosted by networks of 1 to +5cm quartz veins
with general very shallow dips to the south-west.
•
Higher grade, generally 5 to +30cm laminated quartz veins, dip moderately to the
south-east.
•
Together the two orientations of quartz vein stockworks have developed a bulk-style,
tabular ore body at CNX Main within the G2 Gabbro. This mineralisation extends
under the Great Eastern Highway and has been confirmed by drilling to be contiguous
with the Three Mile Hill OP 190m to the south-east.

Market Announcement | Page 25 of 28

•
Au grade envelopes were constructed in Seequent Leapfrog Geo software, using the
two sets of quartz vein orientations described above and the overall gabbro sill
geometry (striking northwest with a sub-vertical dip) as structural trends.
•
The economic compositing function in Leapfrog was used to generate the grade shells
– a cut-off of 0.1 ppm Au was used to separate the mineralised and non-mineralised
material. The composites were to 4 m downhole, with maximum allowable internal
dilution of 2 m.
•
The final Au grade shells were constrained to within the G2 gabbro sill.
Dimensions •
The CNX – Three Mile Hill trend strikes NW – SE over 1.6km
•
The reported CNX resource has been truncated using the Great Eastern Highway as
a divide and only the northern portion of the resource is reported.
•
The CNX mineralisation has been modelled over 800m strike length, the lodes have
been interpreted from near surface to approximately 250m below surface to the
175mRL (deeper mineralisation.
•
Mineralisation averages 35-50m width over the strike length of the sill currently
defined by drilling
Estimation and
modelling
techniques		 •
Estimation of the mineral resource was by the non-linear method Localised Uniform
Conditioning (LUC) using Isatis software.
•
The LUC estimation process was as follows:
•
Drill hole data was selected within mineralised domains and composited to 1m
downhole intervals in Datamine software – 1m is the dominant raw sampling interval.
•
The composited data was imported into Isatis software for statistical and geostatistical
analysis.
•
Variography was done on data transformed to normal scores, and the variogram
models were back-transformed to original units. The Gaussian anamorphosis used
for the normal scores transform was also subsequently used for the discrete Gaussian
change of support model required for Uniform Conditioning. Variography was
performed for single mineralised domain – oxidised was combined with the
transitional/fresh rock as the oxidation later is very thin, with few samples..
•
The back-transformed variogram model had a high nugget effect (~70% of total sill),
with a range of 30 m.
•
Estimation (via Ordinary Kriging) was into block model that was a non-rotated model
in MGA94 grid, with a panel block size of 20 mE x 20 mN x 5 mRL – this is about the
average drill spacing in the deposit
•
A ‘distance limited threshold’ technique was used where uncapped data was used
within 10 m of the extreme values, but a capping of 15 ppm was used beyond this
This cap was based on inflections and discontinuities in the histograms and log-
probability plots.
•
The ellipsoid search parameters were longer than the variogram ranges in order to
estimate at the edges of the domain (100 m x 100 m x 30 m). A minimum of 10 and
maximum of 20 samples per panel estimate was used, which effectively reduces the
search ellipse in the well drilled areas to two or three drilling lines (~20 m to 40 m).
•
The grade distribution for the panels was into Selective Mining Units (SMU) block of
5 mE x 5 mN x 2.5 mRL (32 SMUs per panel) via the Uniform Conditioning (UC)
technique.
•
The UC process applies a Change of Support correction (discrete Gaussian model)
based on the composite sample distribution and variogram model, conditioned to the
Panel grade estimate, to predict the likely grade tonnage distribution at the SMU
selectivity.
•
The Localising step was then run, and the resulting SMU model was exported from
Isatis to Datamine, with statistical validation to ensure consistency between software
packages.
•
Estimates of Au grades were validated against the composited drill hole data by
extensive visual checking in cross-section,plan and on screen in 3D, by global

Market Announcement | Page 26 of 28

comparisons of input data and model, and by semi-local statistical methods (swath
plots). All methods showed satisfactory results.
Moisture •
Tonnages are estimated on a dry basis.
Cut-off parameters •
The Resources for CNX have been reported above a 0.5g/t cut-off for open pit above
200mRL (~230m depth). This represents a reduction in reporting cut off grade from
0.7 g/t to 0.5g/t compared to June 2021. This change has been made as:
•
the bulk style mineralisation is very consistent above 0.5g/t and,
•
0.5 g/t is above the economic cut off expected for this style of orebody based on
the 2020 PFS Update for Coolgardie open pits.
Mining factors or
assumptions		 •
The CNX deposit would be mined by open-cut methods. Pit optimisations using
preliminary wall angles, PFS inputs and the updated 2021 resource have been run
during June -September 2021 indicating potential for open pit extraction to 200m
depth.
•
New drilling reported in this announcement has extended significant mineralisation to
at least 230m depth that can now be assessed for pit optimisation and design
•
Geotech for CNX has been developed to feasibility level and indicates that the wall
rock for the CNX pit design is competent and support moderately steep wall angles
and thereby expanded pit optimisation/economic pit designs
•
The CNX mineralisation is largely intact with only a very small trial pit mined previously
in 1991.
•
The width of mineralisation from surface and overall steep mineralised sill geometry
supports extended pit optimisation and designs.
Metallurgical
factors or
assumptions		 •
Historic mining at CNX has focussed on the alluvial and oxide portion of the mineral
resource.
•
Pre 1990’s limited metallurgical test work indicates encouraging recoveries from oxide
samples.
•
FML conducted metallurgical test work on three composite/representative fresh rock
CNX samples collected in April/May 2021 with results received in August 2021. The
Metallurgical testwork further confirmed high gravity gold recoveries indicated by
historic sampling and very high leach recoveries with limited reagent consumption
•
A trial pit was excavated at CNX by Goldfan in 1991 using a 1 g/t cut off. Reported
recovered gold for the trial mining exercise is 196kt @ 1.86g/t for 11,720 ounces.
Reporting the November 2021 CNX resource within the trial pit generated 278kt @
1.7g/t for 15,000 ounces above a 1g/t cut-off.
• CNX is along strike of the Three Mile Hill open pit and part of the same system. Three
Mile Hill OP has historical production of 4.2Mt at a grade of 2.4g/t Au for 324,116
ounces.
Environmental
factors or
assumptions		 •
The CNX deposit occurs within an area of significant previous ground disturbance
including:
•
the existing 270m strike and 30m deep 1991 CNX pit,
•
large scale alluvial/elluvial washing plants,
•
shafts/ trenches.
•
the deposit is located just 1.25km north of the Three Mile Hill ROM pad.
•
The flora a fauna in the CNX area was assessed in 2013 as part of a mine proposal
developed at that time. No significant habitats were identified at that time.
•
The CNX Flora & Fauna survey will be updated in Spring 2021
•
The southern margin of the reported Mineral Resource has been truncated 97m north
of great Eastern Highway which is seen as a reasonable break between what is
considered CNX to the northwest and Three Mile Hill Mineral Resource (not being
reported here) to the southeast.

Market Announcement | Page 27 of 28

Bulk density •
Density values were assigned based on weathering profile. CNX has a very shallow
weathering profile and the bulk of the deposit occurs in Fresh Rock. The diamond
core from the 2020 and 2021 drill campaigns were used for water immersion
technique density test work. Averages from the extensive testing were applied based
on updated weathering surfaces.
•
A value of 1.85 t/m3 was applied to oxide blocks, 2.70 t/m3 was applied to transitional
material blocks and a value of 2.99 t/m3 applied to Fresh Rock.
•
Follow up down hole in situ density logging was completed in 2021 to validate the
large water immersion bulk density dataset. The down hole data indicates the
currently assigned fresh rock bulk density values may be ~10% conservative.
Classification •
Resources have been classified as Measured, Indicated and Inferred based mainly
on geological confidence in the geometry and continuity of the mineralisation and
close spaced (20m x 10m) drilling across the bulk of the deposit. In addition, various
estimation output parameters such as number of samples, kriging variance, and slope
of regression for the various kriging runs have been used to assist in classification.
•
The block model, drilling data and geological wireframes were loaded and mineral
classification wireframe solids were created. Material within the mineralised domain,
with recent (2020 / 2021) FML drilling and with a drill spacing of 20 mN x 10 mE or
closer was classified as Measured. The Indicated wireframe is outside the Measured
area, and encapsulates areas where drilling is at 20 mN x 20 mE. Blocks inside the
mineralised domain, that were not Indicated or better but supported by FML drilling
were classified as Inferred.
•
Sub-Inferred blocks exist at depth where drill spacing increases and south of the
Highway exclusion zone. These are not included in the reported Mineral Resource
Estimate and the areas at depth are future exploration targets.
Audits or reviews •
No independent audits or reviews of the November 2021 mineral resource estimate
have been conducted.
Discussion of
relative accuracy/
confidence		 •
This is addressed in the relevant paragraph on Classification above.
•
The Mineral Resource relates to global tonnage and grade estimates.
•
The 1991 trial pit targeted +2 g/t mineralisation at CNX using a 1 g/t cut off. Actual
mined material was 36% above the targeted diluted ore with ounces up 42%. Detailed
mining reports are yet to be located in the mine archives to cross reference planned
pit design vs actual mined pit. As such at this stage we are unable to validate if the
difference between the pre mining resource estimate and actual mining was down to
problems with resource estimation or simply that a larger pit was mined as a result of
strong results.
•
The FML resource within the trial pit is of a similar grade when cut at 1 g/t to that
reported post 1991 mining. However, the November 2021 resource reports more
tonnes and ounces than were mined in 1992. This difference is likely due to selective
mining during the 1991 trial mining exercise given the pre mining resource estimate
appears to have targeted mineralisation exceeding 2 g/t.

Market Announcement | Page 28 of 28

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