GOLDEN DEEPS LIMITED. — Capital/Financing Update 2019

Aug 21, 2019

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ASX ANNOUNCEMENT 22 August 2019

ASX code: GED

Pathway to Production Secured through 30x Increase in Vanadium Concentrate Grade from Existing Abenab Stockpiles

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Highlights:

• 30 times upgrade achieved on existing above ground stockpiles using simple gravity separation

• Final bulk concentrate sample produced at 8.9% V2O5, 30.5% Pb and 8.95% Zn from above ground stockpiles and indicates capability to achieve >19% V2O5 grade from the main ore body assuming a 30 times upgrade factor can be applied

• Confirmation that the above ground stockpiles can be used for initial operations at the Company’s Abenab Project in advance of the below ground mineral resource

• Consistency of process demonstrated across both higher and lower head grades

• Additional recovery is possible through:

• Optimising the final design

• Selection of appropriate spiral and separation technologies

• Use of recycle streams

• Utilising the above ground stockpiles will be a positive environmental benefit for the site and surrounding area

• Excellent support from the Namibian Government to commence initial operations under a simplified Works Approval process

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Golden Deeps Limited (“Golden Deeps” or “the Company”) (ASX: GED) the Namibian focused explorer targeting low cost vanadium production, is pleased to provide the following update based on the preliminary results from the Company’s recent metallurgical testing undertaken on bulk samples from its 100% owned Abenab Vanadium, Lead and Zinc Project, located in North Eastern Namibia.

Executive Chairman Michael Minosora commenting on the Pathway to Production stated:

“Identifying that the above ground stockpiles as amenable to simple gravity separation result in a significantly upgraded (x30) concentrate is a huge milestone for the Company. This has the potential to reduce the time to production for the Abenab Project by 12 months, generating early cash flow for the operations whilst the below ground mineral resource is developed.

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“In addition, the Company has been advised by the Namibian Ministry of Mines and Energy that the processing of the above ground stockpiles will not require a full mining licence and that a simplified plant scope works approval could be utilised. This has the benefit of reducing the approvals process and further reducing the development timeline to production.

“As a reminder to investors, the development of the Abenab Project is designed on the basis of producing a very high grade Vanadium, Lead and Zinc concentrate which is to be shipped to third party refineries for the extraction of Vanadium, Lead and Zinc.”

Metallurgical Test Work Program

Previous test work identified that Abenab ore is able to be very substantially concentrated through simple gravity separation. While previous success has been achieved through utilising spiral separation, the Company examined additional technologies during the recent metallurgical test work program including shaking tables, centrifuges and Mozley tables. MINTEK of Johannesburg, a highly regarded South African specialist metallurgical testwork company in South Africa was commissioned to undertake the extensive test work program.

An initial parcel of eight tonnes of ore was sourced from the existing above ground mineral material located on-site at Abenab and collected in one tonne lots. The initial composite eight tonnes was assayed at 0.30% V2O5, 1.29% Pb & 1.14% Zn and was jaw crushed and pulverised to a sub 1mm size prior to undergoing gravity separation through the various techniques.

The separation process identified that a three stage rougher circuit, followed by a three stage Scavenger circuit, provided the best overall return for a concentrate grade of 8.9 % V2O5, 30.5% Pb and 8.95% Zinc, or a 30x upgrade on Vanadium units.

The bulk sample produced will be dispatched for testing with refineries for extraction of the Vanadium, Lead and Zinc minerals.

Further improvements in recovery and grade should be possible through the introduction of recycle streams and this assessment is continuing to identify the optimum grade and recovery for an operating plant.

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Falcon
Falcon
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Fig 1: Test Program Flowsheet

Comminution Results

Comminution tests performed in line with an expected dolomite/limestone base offered typical crushing results in line with this base mineral. Of note is the low abrasion index.

Crushing Work Index (ave)	7.8 kWh/t
Bond Rod Work Index	19.4 kWh/t
Abrasion Index	0.03 g

This offers numerous off the shelf equipment crushing options to optimise the crushing circuit to achieve a sub 1mm particle.

Gravity Separation Results

The sample supplied for testing showed a bias towards the finer fraction and was successfully removed using a simple de-sliming hydro cyclone. This test successfully rejected 40% of the fine material with only a 6% loss of total Vanadium to reject. Additional testing of this tails stream using a Falcon centrifuge identified that ~ ½ of this can be recovered in an operating plant.

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Fig 2: Head Grade Particle Size Distribution

The results of the first pass gravity separation test results are shown below. Noticeable is the darker hue towards the concentrate streams along with the removal of fines/slimes in the tailings streams.

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Fig 3: First Pass Separations

The primary and secondary spiral separations showed definitive signs of upgradability at each successive separation stage on the concentrate stream. Grade and/or recovery improvements were further noted with tertiary cleaning and the use of a scavenger circuit on the tailings achieving a Vanadium upgrade near to 30x the starting head grade.

	V2O5	Pb	Zn
Head Grade	0.30%	1.29%	1.14%
Concentrate Grade	8.93%	30.54%	8.95%
Upgrade Factor	30	24	8

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Fig 4: Grade Recovery Profile – Stage 1

This is in line with, if not slightly better than that achieved from the previously reported Avonlea test works undertaken on Abenab ore with a much higher starting grade using less stages of separation. This is a huge positive for the Project given the starting grade of the sample tested @0.30% V2O5, and the larger scale of this test work program provides confidence that simple gravity separation techniques are suitable for this application across a varied range of starting head grades.

Assuming an upgrade factor of 30 times can be applied to the main orebody, with a starting grade of 0.66% V205*, then a concentrate grade of >19% V2O5 would be expected utilising a similar flowsheet design.

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Fig 5: Comparison of Upgradability from Various Abenab Testwork

Process Control Benefit

Another benefit the test work has achieved is proving the use of density measurement as a suitable process control method. To reduce cost and time, density assessment of the material was investigated as an alternative for full chemical analysis. This has proven very successful with a correlation of 99.6% and creates a significant opportunity for simplified process control within an operating plant.

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Fig 6: Density v Grade Correlation

*ENDS***

For further information, please refer to the Company’s website or contact:

Michael Minosora Executive Chairman Golden Deeps Limited P: +61 (0) 413 056 909 E: minosora@seabourncapital.com

Investor Relations Victoria Humphries victoria@nwrcommunications.com.au

*Refer to ASX announcement 31 January 2019 “Major Resource Upgrade at Abenab Vanadium Project”. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

Caution Regarding Forward-Looking Information

This document contains forward-looking statements concerning Golden Deeps. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes.

Forward looking statements in this document are based on the company’s beliefs, opinions and estimates of Golden Deeps Ltd as of the dates the forward looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

Competent Person Statement

The information in this announcement that relates to Metallurgical testing is based on information compiled by Mr Brett Crossley. Mr Crossley is a Consultant to Golden Deeps Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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 Crossley consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

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APPENDIX

Crushing Work Index Results

CWI Test Results	CWI Test Results	CWI Test Results	CWI Test Results	CWI Test Results	CWI Test Results
Project Name: Abenab Project Number: MPC-220001 Sample Identification: Test Date: 7-May-19
Rock Specimen Number	Rock impact thickness (mm)	Impact angle (degrees)	Impact Energy EB (N.m = Joules)	Impact Strength CB (Joules/mm)	Work Index CWI (kWh/tonne)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22	65 65 80 65 67 70 70 70 65 77 75 75 70 65 62 65 69 70 63 70 65 74	65 45 60 40 40 30 50 25 35 30 40 25 30 45 40 70 30 40 30 55 25 30	67.554 34.269 58.500 27.373 27.373 15.675 41.794 10.962 21.159 15.675 27.373 10.962 15.675 34.269 27.373 76.984 15.675 27.373 15.675 49.892 10.962 15.675	1.039 0.527 0.731 0.421 0.409 0.224 0.597 0.157 0.326 0.204 0.365 0.146 0.224 0.527 0.441 1.184 0.227 0.391 0.249 0.713 0.169 0.212	18.84 9.56 13.26 7.64 7.41 4.06 10.82 2.84 5.90 3.69 6.62 2.65 4.06 9.56 8.00 21.47 4.12 7.09 4.51 12.92 3.06 3.84
Rock SG: Work Index: 2.95 t/m3 Minimum 2.6 kWh/tonne Maximum 21.5 kWh/tonne Average 7.8 kWh/tonne 75th Percentile 10.2 kWh/tonne

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Bond Rod Work Index Results

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Net
Limiting F80 P80 Work Index
Sample ID Production
Screen (µm) (µm) (µm) (kWh/t)
(g/rev)
Abenab 1180 9123.43 773.25 4.95 19.40
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Typical classifications for BBWI and BRWI are shown in the following table:

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Bond work index (kW 7 - 9 10 - 14 15 - 20 > 20
Classification soft medium hard Very hard
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Abrasion Index Results

Abrasion Index	Abrasion Index
Project Name: Abenab Project Number: MPC-220001 Sample Identification: Abenab Test Date: 03/06/2019
Paddle mass before test(g)	84.18
Paddle mass after test(g)	84.15
Bond abrasion index(g)	0.03

Particle size distribution on test product

				1 10 100 % Passing	1 10 100 1000 10000 Size (µm) AI test product PSD	1 10 100 1000 10000 Size (µm) AI test product PSD	1 10 100 1000 10000 Size (µm) AI test product PSD
					-0.6 abrasive 0.6 – 0.8 Very abrasive > 0.8 Extremely abrasive
Ai(g)	< 0.1	0.1 – 0.4	0.4		-0.6	0.6 – 0.8	> 0.8
Classification	Non abrasive	Slightly abrasive	Medium		abrasive	Very abrasive	Extremely abrasive

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Head Assay Results

		V	V2O5	Zn	ZnO	Pb	PbO	Fe	Al	Ca	Co	Cr	Cu	Mg	Mn	Ni	Si	Ti	As	Cd
Description	Rep	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	ppm	ppm
-1mm V ROM head	1	0.17	0.30	1.14	1.42	1.26	1.36	1.44	0.87	22.5	<0.05	<0.05	<0.05	6.49	0.072	<0.05	3.03	0.062	127	<0.1
-1mm V ROM head	2	0.17	0.30	1.13	1.41	1.31	1.41	1.46	0.88	22.7	<0.05	<0.05	<0.05	6.53	0.074	<0.05	3.02	0.061	129	<0.1
Average		0.17	0.30	1.14	1.41	1.29	1.38	1.45	0.875	22.6	-	-	-	6.51	0.073	-	3.025	0.0615	128	<0.1
			%Pb %Fe %Al %Ca %Si 1.29 1.45 0.875 22.6 3.025
Head -1mm ROM	%V	**%Zn **	**%Pb **	%Fe	%Al	%Ca	%Si
	0.17	1.14	1.29	1.45	0.875	22.6	3.025

Summary of Gravity Separation Mass Balance Results and Grade Calculations

Circuit	No	Stream name	Grade(%)	Grade(%)	Grade(%)
			V	Pb	Zn
Feed Desliming	1	Feed calc(calc)	0.19	1.11	0.91
	2	Deslimingcyclone U/F(calc)	0.20	1.12	0.88
	3	Deslimingcyclone O/F	0.12	0.94	1.26
Ro Spiral+Cl Spiral+ Recl shaking table circuit	4	Rougher spiral feed	0.20	1.12	0.88
	5	Rougher spiral conc	0.81	5.03	2.17
	6	Rougher spiral tails	0.10	0.51	0.67
	7	Cleaner spiral feed	0.81	5.03	2.17
	8	Cleaner spiral conc	1.87	11.53	3.89
	9	Cleaner spiral tails	0.25	1.66	1.27
	10	ReCleaner shakingtable feed	1.87	11.53	3.89
	11	ReCleaner shakingtable conc	5.00	30.57	8.96
	12	ReCleaner shakingtable tails	0.24	1.64	1.26
Scavenger circuit	13	Scavenger spiral feed(6+9+12)	0.12	0.65	0.75
	14	Scavenger spiral conc	0.17	1.31	1.09
	15	Scavenger spiral tails	0.09	0.24	0.53
	16	Falcon feed	0.17	1.31	1.09
	17	Falcon conc	0.71	3.65	2.27
	18	Falcon tails	0.11	1.03	0.95
	19	Shakingtable feed	0.71	3.65	2.27
	20	Shakingtable conc	5.00	30.19	8.88
	21	Shakingtable tails	0.53	2.51	1.99
	11+20	Final concentrate	5.00	30.54	8.95
	3+15+18+21	Final tails	0.11	0.63	0.78

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JORC Code, 2012 Edition – Table 1 report template

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Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	Commentary	Commentary
Sampling	• Nature and quality of sampling (eg cut channels, random chips, or	•	Bulk samples of broken rock from the stockpile were collected
techniques	specific specialised industry standard measurement tools appropriate		from 8 sites using an excavator and weighed approximately
	to the minerals under investigation, such as down hole 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.	•	1000kg each. The samples were then combined to generate a 8 tonne bulk sample. Samples points were on an approximate 20m x 20m grid covering the stockpile. The samples were taken from ~1m deep pits using the excavator bucket.
	• 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	•	Mineralisation was determined by observing the descloizite and
	relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m		mottramite mineralisation in hand specimens from the sample
	samples from which 3 kg was pulverised to produce a 30 g charge for		pits.
	fire assay’). In other cases more explanation may be required, such as
	where there is coarse gold that has inherent sampling problems.
	Unusual commodities or mineralisation types (eg submarine nodules)
	may warrant disclosure of detailed information.
Drilling	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air	N/A
techniques	blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or
	standard tube, depth of diamond tails, face-sampling bit or other type,
	_whether core is oriented and ifso, by what method, etc). _
Drill sample	• Method of recording and assessing core and chip sample recoveries	N/A
recovery	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.

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Golden Deeps Limited 1[st] Floor, 8 Parliament Place, West Perth, WA 6005

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Criteria	JORC Code explanation	Commentary	Commentary
Logging	• Whether core and chip samples have been geologically and	•	Lithological logging of the sample material was conducted.
	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. _
Sub-sampling	• If core, whether cut or sawn and whether quarter, half or all core taken.	•	Samples comprised 8x 1000kg of material taken from shallow pits
techniques and sample preparation	• 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 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.	•	~1m deep dug on the surface of the stockpile. The material comprised coarse broken rock and finer grained rock fragments and clay. The samples were not split or sub-sampled. The large sample size is considered to be representative of each sample point; however, the sample pit did not extend to the base of the dump. Internal variability within the stockpile may mean material taken from the top 1m is different to the material from 1m to the base of the stockpile.
	• Whether sample sizes are appropriate to the grain size of the material
	_being sampled. _
Quality of	• The nature, quality and appropriateness of the assaying and laboratory	•	The bulk sample was shipped by road to Mintek in South Africa
assay data and laboratory tests	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	•	for metallurgical testwork. The procedures used for the metallurgical testwork were formulated by Mintek and Golden Deeps and are considered appropriate to meet the objectives of the testwork.
	derivation, etc.
	• Nature of quality control procedures adopted (eg standards, blanks,
	duplicates, external laboratory checks) and whether acceptable levels
	_of accuracy (ie lack of bias) and precision have been established. _
Verification of	• The verification of significant intersections by either independent or	•	Field sampling and logging data was recorded using Microsoft
sampling and assaying	alternative company personnel. • The use of twinned holes.		Excelon Panasonic CF 19 toughbooks and uploaded to a desktop server and backed up on a portable hard drive.
	• Documentation of primary data, data entry procedures, data

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Golden Deeps Limited 1[st] Floor, 8 Parliament Place, West Perth, WA 6005

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Criteria	JORC Code explanation	Commentary	Commentary
	verification, data storage (physical and electronic) protocols.
	• _Discuss any adjustment to assay data. _
Location of	• Accuracy and quality of surveys used to locate drill holes (collar and	•	A Garmin GPS 78 was initially used to locate sampling points.
data points	down-hole surveys), trenches, mine workings and other locations used		This was followed by surveying using a Trimble R8s geodetic
	in Mineral Resource estimation.		GPS with an 8mm horizontal and 15mm vertical accuracy.
	• Specification of the grid system used.	•	The grid system used is based on the WGS84 34 S datum.
	• Quality and adequacy of topographic control.	•	Post Processing Positioning (PPP) Survey was submitted to
			the Australian positioning service (AUSPOS) providing World
			Geodetic System of 1984 (WGS84) coordinates with final
			satellite orbits, tropospheric, ionospheric correction and Earth
			Gravitational Model of 2008 applied to coordinates to provide a
			geoidal height which closely correlates to mean sea level
Data spacing	• Data spacing for reporting of Exploration Results.	•	Sampling was conducted on an approximately 20m x 20m
and	• Whether the data spacing and distribution is sufficient to establish the		grid.
distribution	degree of geological and grade continuity appropriate for the Mineral	•	The sample spacing is considered appropriate to generate a
	Resource and Ore Reserve estimation procedure(s) and classifications		bulk sample approximately representative of the stockpile
	applied.		material.
	• Whether sample compositing has been applied.	•	Grade variability within the coarse stockpiled material could be
			moderate.
Orientation of	• Whether the orientation of sampling achieves unbiased sampling of
data in relation to geological	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	•	There is no relationship between the pit sampling and grade variability in the stockpile.
structure	key mineralised structures is considered to have introduced a sampling
	bias, this should be assessed and reported if material.
Sample	• The measures taken to ensure sample security.	•	All samples were sealed in bulk polyweave bags and delivered
security			to the Mintek laboratory by a trucking contractor.
Audits or	• The results of any audits or reviews of sampling techniques and data.	•	No audits were conducted.
reviews

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Golden Deeps Limited 1[st] Floor, 8 Parliament Place, West Perth, WA 6005

PO Box 1618, West Perth, WA 6872