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GOLDARC RESOURCES LIMITED Interim / Quarterly Report 2016

Jul 31, 2016

64961_rns_2016-07-31_493d709d-65ca-4dad-bf2c-1c5ddbfab829.pdf

Interim / Quarterly Report

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QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDING

30 JUNE 2016

Highlights:

  • Torian discovers 1km mineralised strike north of Kundana at Ambition North

  • High grade system identified at Target’s 16 and 17 at Zuleika JV

  • Torian completes Bardoc project acquisition

  • Torian earns initial 12.25% interest in the Zuleika JV

  • WA Mines Department approve infill and extension drilling at Mt Stirling

  • Oversubscribed placement raises $3.5 million to accelerate Torian’s growth strategy

Torian Resources Ltd ( Torian or Company ) ( ASX:TNR ) is pleased to report on what has been another busy quarter for the Company.

During the quarter, Torian completed a $3.5 million placement to professional and sophisticated investors. The placement was oversubscribed and showed strong demand from institutional investors. The funds will be used to accelerate the Company’s duel track growth strategy. This strategy consists of a highly active, multi-phase, exploration program and further consolidation within the Goldfields region of Western Australia.

Following a successful phase one of its exploration strategy, the Company has recently committed to accelerating its exploration program. Funds will be used to commence the second phase of the company’s large four phase exploration program at the Zuleika JV as well as the planned step out drilling at the high grade Mt Stirling Well prospect. This program follow more encouraging drilling results received during the quarter.

The Company also completed the strategic acquisition of the Bardoc Project and received approval for its next drilling programme at Mt Stirling Well and Mt Stirling.

ABN: 72 002 261 565

Unit G4, 49 Melville Parade South Perth WA 6151 Phone +61 8 6216 0424 Fax +61 8 6216 0425 Kalgoorlie Office Phone/Fax:

+61 8 9093 4818 www.torianresources.com.au

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Zuleika JV Project:

As announced on 16 June 2016, all results from drilling completed during the quarter have now been received. Results to date include the discovery of 1km of mineralised strike north of the 7Moz Kundana gold camp at Target 10 (Ambition North), 1.3km’s of mineralised strike at Black Shale Target 4 and intersections that included 4m @ 11.28g/t from 44m at Target 5. Torian also identified a high-grade system at Target 16 and 17. Significant results announced from target 16 and 17 included:

  • 1 m at 58.80g/t Au from 1m;

  • 3m at 22.72g/t Au from 66m;

  • 3m at 16.62g/t Au from 54m; and

  • 5m at 5.69g/t Au from 40m.

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Figure 1: Map showing Torian’s Zuleika JV Project in relation to other ASX listed companies.

Planning for Torian’s Phase two drilling program at the Zuleika JV covering targets 1-14 is now complete. The program is designed to infill anomalous zones to a line spacing of 100m - 200m and to test gold mineralisation discovered within the oxide zone. Holes will be drilled at -60° at right angles to the interpreted strike of the geology to relatively fresh bedrock. Closer spaced drilling may be warranted in areas where anomalous gold or geology which is significantly different to the interpretation is intersected.

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Additional geophysical targets have also been identified along the Zuleika Shear. Geological mapping and rock chip sampling of these targets is scheduled to occur prior to drilling.

Mt Stirling Project:

During the quarter, metallurgical samples from Mt Stirling were collected and submitted, coinciding with the commencement of preliminary mining studies.

The Company has also planned its next drilling program at the project. The program is designed to determine the overall size of the existing high-grade resource and to assess the Project as a standalone mining operation. WA Mines Department has approved this program and drilling will commence in the September quarter.

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Figure 2: Mt Stirling Project Geology with Historical Drilling and Prospect Locations

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Bardoc Project:

Torian and its Joint Venture (JV) partner, Cascade Resources Ltd, completed the strategic acquisition of the Bardoc Project on the 4 April 2016. The project consists of 38.6km² of tenure.

The Bardoc Project is located 40km north of Kalgoorlie and 16km north of the 3mtpa Paddington processing plant owned by Zijin Mining Group (HK:2899). It lies north and along strike of Excelsior Gold’s (ASX:EXG) 1.4Moz Zoroastrian and Excelsior deposits and south of Aphrodite Gold’s (ASX:AQQ) 1.3Moz Aphrodite Project.

As shown on the map below, the recently acquired project has extensive infrastructure, which will significantly reduce the Company’s capital requirement and provide lower cost development options should an economic resource be identified at the project.

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Figure 3: Map showing Torian’s new Bardoc Project in relation to key mines, infrastructure and other assets.

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Other Projects:

Work continues on data compilation and validation for Torian’s other projects. Targets are continually being identified, not only in the Zuleika and Leonora Project areas, but also in the Bardoc Project, with exploration planning in progress. It is anticipated that when details of programmes are finalised, applications for permission to drill will be submitted to the Department of Mines and Petroleum.

Finance and Corporate:

Torian continues to consolidate ground in the Goldfields region of Western Australia. It has completed eight acquisitions in the last twelve months. This makes Torian one of the most active resource companies in the region. Its Zuleika JV project now comprises 125 tenements covering some 222.6km².

During the quarter, Torian announced that it had earned its initial 12.25% interest in the Zuleika JV. Under the terms of the Joint Venture with Cascade Resources, Torian had the right to earn its initial interest by spending $1.25 million in the first year.

Discussions regarding possible mergers and acquisitions continue as part of the Company’s strategy to further consolidate quality assets in the Goldfields region. Numerous major international gold mining groups seeking a variety of outcomes have also approached Torian. The Company is assessing these proposals in the best interests of its shareholders.

As announced on 24 May 2016, Torian appointed an additional independent non-executive director, Mr Glenn Jardine. Glenn has a wealth of operational experience in the gold sector and his appointment will further strengthen the Boards mining and operational capabilities.

On 29 June 2016, Torian successfully completed a $3.5 million placement to sophisticated and professional investors at 18.5 cents per share. The placement was oversubscribed and showed strong demand from institutional investors. The capital raised will be directed towards accelerating the Company’s exploration program at Zuleika, completing planned step out drilling at the Mt Stirling Well project and further consolidating ground in the Goldfield region.

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Torian’s MD, Matthew Sullivan Comments:

“Torian is a small company moving fast. The last quarter saw significant activity as Torian continues to execute its exploration and consolidation strategy. With more encouraging results from our drilling programs we continue to develop our assets and add value for our shareholders.”

For further information, please contact Matthew Sullivan (Torian’s MD) on (08) 6216 0424.

Yours sincerely,

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Matthew Sullivan Managing Director

About Torian:

Torian Resources Ltd ( ASX:TNR ) is a highly active Australian gold company that is focused on developing the gold mines of tomorrow. The Company has four advanced projects located in the Goldfields region of Western Australia.

Torian’s flagship Project, the Zuleika JV, lies north and partly along strike of several major gold mines including Northern Star (ASX:NST), Tribune Resources (ASX:TBR) and Rand Mining’s (ASX:RND) 7Moz East Kundana Joint Venture and Evolution’s (ASX:EVN) Frogs Legs and White Foil operations.

Since May 2015, Torian has increased its landholding at the Zuleika Project by approximately 75% via eight separate acquisitions. Torian is now the second largest landholder in this highly sought after region and is focused on fast tracking its development.

Torian has commenced a large, 4 Phase, exploration program that is targeting the Zuleika Shear and intends to further consolidate ground in this region.

Torian is also developing the high grade Mt Stirling Project which has an outcropping inferred resource located 40km North West of Leonora. Following a successful infill drilling program in December, Torian is currently completing an internal economic study on the project to assess it as a standalone mining operation.

Torian’s exploration team has an enviable track record of discovering and developing a number of multi-million ounce gold mines in this region. Torian is commencing an exciting phase in its development and we look forward to updating the market as things progress.

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TENEMENTS HELD AT 30 JUNE 2016

TENEMENT LOCATION NAME OF PROJECT/JV INTEREST
ML 70094 Sapphire, QLD N/A 100%
ML 70095 Sapphire, QLD N/A 100%
ML 70096 Sapphire, QLD N/A 100%
E 37/1076 Leonora,WA Malcolm JV 51%
M 37/475 Leonora,WA Malcolm JV 51%
M 37/1305 Leonora,WA Mt StirlingWell 100%
M 37/1306 Leonora,WA Mt StirlingJV 51%
M 37/1307 Leonora,WA Mt Cutmore JV 51%
P 37/7033 Leonora,WA Mt Cutmore JV 51%
P 37/7094-7099 Leonora,WA Malcolm JV 51%
P 37/7101-7102 Leonora,WA Mt George JV 51%
P 37/7103-7105 Leonora,WA Malcolm JV 51%
P 37/7172 Leonora,WA Mt StirlingWell 100%
P 37/7238-7239 Leonora,WA Mt Cutmore JV 51%
P 37/7319-7322 Leonora,WA Mt Cutmore JV 51%
P 37/7489-7491 Leonora,WA Mt Cutmore JV 51%
P 37/7567-7575 Leonora,WA Malcolm JV 51%
P 37/7949 Leonora,WA Mt StirlingJV 51%
P 37/8073-8075 Leonora,WA Mt Stewart JV 51%
P 37/8116 Leonora,WA Malcolm JV 51%
P 37/8195 Leonora,WA Mt George JV 51%
P 37/8225-8227 Leonora,WA Mt George JV 51%
P 37/8240-8243 Leonora,WA Mt Cutmore JV 51%
P 37/8523-8524 Leonora,WA Malcolm JV 51%
P 37/8616 Leonora,WA Ironstone Well 100%
P 37/8623-8624 Leonora,WA Mt Stewart JV 51%
P 37/8626-8627 Leonora,WA Mt Stewart JV 51%
P 37/8630-8632 Leonora,WA Mt Stewart JV 51%
P 37/8646-8647 Leonora,WA Mt Cutmore JV 51%
P 37/8648 Leonora,WA Mt George JV 51%
P 37/8649 Leonora,WA Braemore JV 51%
P 37/8650 Leonora,WA Rabbit Warren South 100%
P 37/8651 Leonora,WA Braemore JV 51%
P 37/8652-8653 Leonora,WA Rabbit Warren South 100%
P 37/8659-8661 Leonora,WA Braemore JV 51%
P 37/8662 Leonora,WA Mt George JV 51%
P 37/8663 Leonora,WA Rabbit Warren South 100%
P 37/8664-8665 Leonora,WA Braemore JV 51%
P 39/5570-5572 Laverton WA Mt Korong 100%
E 24/190 Zuleika,WA Zuleika JV Earning49%
M 16/229 Zuleika,WA Zuleika JV Earning49%
M 16/491 Zuleika,WA Zuleika JV Earning49%
P 16/2479-2481 Zuleika,WA Zuleika JV Earning49%
P 16/2621-2623 Zuleika,WA Zuleika JV Earning49%

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P 16/2837-2841 Zuleika,WA Zuleika JV Earning49%
P 16/2843-2856 Zuleika,WA Zuleika JV Earning49%
P 16/2874-2887 Zuleika,WA Zuleika JV Earning49%
P 16/2896 Zuleika,WA Zuleika JV Earning49%
P 16/2901-2902 Zuleika,WA Zuleika JV Earning49%
P 16/2913-2915 Zuleika,WA Zuleika JV Earning49%
P 16/2943-2953 Zuleika,WA Zuleika JV Earning49%
P 16/2959-2960 Zuleika,WA Zuleika JV Earning49%
P 16/2964-2967 Zuleika,WA Zuleika JV Earning49%
P 24/4418-4429 Zuleika,WA Zuleika JV Earning49%
P 24/4468 Zuleika,WA Zuleika JV Earning49%
P 24/4679 Zuleika,WA Zuleika JV Earning49%
P 24/4749 Zuleika,WA Zuleika JV Earning49%
P 24/4827-4831 Zuleika,WA Zuleika JV Earning49%
P 24/4865-4874 Zuleika,WA Zuleika JV Earning49%
P 24/4917-4923 Zuleika,WA Zuleika JV Earning49%
P 24/4925-4940 Zuleika,WA Zuleika JV Earning49%
P 24/4996 Zuleika,WA Zuleika JV Earning49%
P 24/5013 Zuleika,WA Zuleika JV Earning49%
P 24//5078-5081 Zuleika,WA Zuleika JV Earning49%
P 24/5089-5093 Zuleika,WA Zuleika JV Earning49%
P 24/5103-5105 Zuleika,WA Zuleika JV Earning49%
M 26/572 Zuleika,WA Zuleika JV Earning49%

Torian Resources holds a 35% interest in the Joint Venture Company that is developing the Vatovorona Project in Madagascar.

CHANGE IN TENEMENT STATUS DURING THE QUARTER ENDING 30 JUNE 2016

TENEMENT LOCATION NAME OF PROJECT/JV INTEREST TYPE
P 16/2913 Zuleika,WA Zuleika JV Earning49% Grant
P 16/2914 Zuleika,WA Zuleika JV Earning49% Grant
P 16/2915 Zuleika,WA Zuleika JV Earning49% Grant
P 16/2943 Zuleika,WA Zuleika JV Earning49% Application
P 16/2944 Zuleika,WA Zuleika JV Earning49% Application
P 16/2945 Zuleika,WA Zuleika JV Earning49% Application
P 16/2946 Zuleika,WA Zuleika JV Earning49% Application
P 16/2947 Zuleika,WA Zuleika JV Earning49% Application
P 16/2948 Zuleika,WA Zuleika JV Earning49% Application
P 16/2949 Zuleika,WA Zuleika JV Earning49% Application
P 16/2950 Zuleika,WA Zuleika JV Earning49% Application
P 16/2951 Zuleika,WA Zuleika JV Earning49% Application
P 16/2952 Zuleika,WA Zuleika JV Earning49% Application
P 16/2953 Zuleika,WA Zuleika JV Earning49% Application
P 16/2959 Zuleika,WA Zuleika JV Earning49% Application
P 16/2960 Zuleika,WA Zuleika JV Earning49% Application

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P 16/2964 Zuleika,WA Zuleika JV Earning49% Application
P 16/2965 Zuleika,WA Zuleika JV Earning49% Application
P 16/2966 Zuleika,WA Zuleika JV Earning49% Application
P 16/2967 Zuleika,WA Zuleika JV Earning49% Application
P 24/4827 Zuleika,WA Zuleika JV Earning49% Grant
P 24/4828 Zuleika,WA Zuleika JV Earning49% Grant
P 24/4932 Zuleika,WA Zuleika JV Earning49% Grant
P 24/5078 Zuleika,WA Zuleika JV Earning49% Application
P 24/5079 Zuleika,WA Zuleika JV Earning49% Application
P 24/5080 Zuleika,WA Zuleika JV Earning49% Application
P 24/5081 Zuleika,WA Zuleika JV Earning49% Application
P 24/5089 Bardoc,WA Bardoc 100% Application
P 24/5090 Bardoc,WA Bardoc 100% Application
P 24/5091 Bardoc,WA Bardoc 100% Application
P 24/5092 Bardoc,WA Bardoc 100% Application
P 24/5093 Bardoc,WA Bardoc 100% Application
P 24/5103 Bardoc,WA Bardoc 100% Application
P 24/5104 Bardoc,WA Bardoc 100% Application
P 24/5105 Bardoc,WA Bardoc 100% Application
M 26/572 Zuleika,WA Zuleika JV Earning49% Purchase
M 37/1305 Leonora,WA Mt StirlingWell 100% Application
M 37/1306 Leonora,WA Mt StirlingJV 51% Application
M 37/1307 Leonora,WA Mt Cutmore JV 51% Application
P 37/8623 Leonora,WA Mt Stewart JV 51% Purchase and Grant
P 37/8624 Leonora,WA Mt Stewart JV 51% Purchase and Grant
P 37/8626 Leonora,WA Mt Stewart JV 51% Purchase and Grant
P 37/8627 Leonora,WA Mt Stewart JV 51% Purchase and Grant
P 37/8630 Leonora,WA Mt Stewart JV 51% Purchase and Grant
P 37/8631 Leonora,WA Mt Stewart JV 51% Purchase and Grant
P 37/8632 Leonora,WA Mt Stewart JV 51% Purchase and Grant
P 37/8646 Leonora,WA Mt Cutmore JV 51% Purchase Application
P 37/8647 Leonora,WA Mt Cutmore JV 51% Purchase Application
P 37/8648 Leonora,WA Mt George JV 51% Purchase Application
P 37/8649 Leonora,WA Braemore JV 51% Purchase Application
P 37/8650 Leonora,WA Rabbit Warren South 100% Purchase Application
P 37/8651 Leonora,WA Braemore JV 51% Purchase Application
P 37/8652 Leonora,WA Rabbit Warren South 100% Purchase Application
P 37/8653 Leonora,WA Rabbit Warren South 100% Purchase Application
P 37/8659 Leonora,WA Braemore JV 51% Purchase Application
P 37/8660 Leonora,WA Braemore JV 51% Purchase Application
P 37/8661 Leonora,WA Braemore JV 51% Purchase Application
P 37/8662 Leonora,WA Mt George JV 51% Purchase Application
P 37/8663 Leonora,WA Rabbit Warren South 100% Purchase Application
P 37/8664 Leonora,WA Rabbit Warren South 100% Purchase Application
P 37/8665 Leonora,WA Rabbit Warren South 100% Purchase Application

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Disposals during the quarter:

TENEMENT LOCATION NAME OF PROJECT/JV INTEREST
P 37/6996 Leonora,WA Malcolm JV 51%
P 37/6997 Leonora,WA Malcolm JV 51%
P 37/6998 Leonora,WA Malcolm JV 51%
P 37/6999 Leonora,WA Malcolm JV 51%

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