GREAT BOULDER RESOURCES LIMITED — Capital/Financing Update 2018

Feb 13, 2018

Mt Venn drilling hits 52m of copper-nickel-cobalt mineralisation in four lenses from 12m downhole

Metallurgical testwork to produce copper, nickel and cobalt concentrates to start immediately as part of studies to assess Mt Venn’s economic potential

• Latest drilling at Mt Venn in WA returns shallow, wide intersection of copper, nickel and cobalt (see results table below)

• Metallurgical testwork being fast-tracked to determine metal recoveries and product mix for Mt Venn copper-nickel-cobalt deposit

• Downhole EM underway to assess the full extent of EM conductor plates ahead of infill and extensional RC drilling which is set to start this week

• Gravity survey to also commence this week to identify discrete intrusions within the larger Mt Venn and Eastern Mafic complexes for additional copper-nickel-cobalt massive sulphide mineralisation

Great Boulder Resources (ASX: GBR) is pleased to announce the final results from the recent diamond drilling campaign at its Mt Venn project in WA have provided further evidence of the potential size of the deposit.

Hole 17MVDD002 was drilled as a wide-diameter (HQ) diamond hole for metallurgical test work, intersected 52m of copper-nickel-cobalt mineralisation in four lenses between 12.3m and 87.7m downhole (10m – 75m below surface).

	From	To	Interval	Copper	Nickel	Cobalt	Mineralised
	m	m	m	%	%	%	Zone
	12.3	38.5	26.2	0.5	0.2	0.06
-including	12.3	15.8	3.5	0.7	0.2	0.07	Mixed
	17.0	21.0	4.0	0.8	0.1	0.04	Copper
	21.0	25.0	4.0	0.4	0.2	0.09	Nickel-Cobalt
	30.0	31.0	1.0	1.4	0.1	0.04	Copper
	31.0	34.0	3.0	0.2	0.3	0.08	Nickel-Cobalt
	47.0	60.9	13.9	0.5	0.2	0.05
-including	48.0	49.0	1.0	1.7	0.1	0.02	Copper
	52.0	54.1	2.1	0.7	0.2	0.05	Mixed
	54.1	60.9	6.8	0.2	0.2	0.07	Nickel-Cobalt
	63.9	72.2	8.3	0.4	0.2	0.05
-including	63.9	65.0	1.1	0.8	0.1	0.04	Copper
	84.2	87.7	3.5	0.3	0.2	0.06

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17MVDD002 intersected the shallowest copper-nickel-cobalt mineralisation to date at Mt Venn. Fresh pyrrhotite and chalcopyrite mineralisation was intersected from only 12.3m downhole and is particularly wide, making it ideal for the proposed metallurgical testwork.

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Fresh sulphide starting from 12m downhole showing chalcopyrite (copper) dominant, progressing to a mixed chalcopyrite-pyrrhotite zone above a massive pyrrhotite zone containing up to 0.3% Ni and 0.1% Co (24-25m)[1]

Metallurgical testwork will now commence to define the flowsheet that can maximise value of various product streams available from the project.

The first phase of testwork will focus on the "front end” of the process (grinding, flotation and leaching) aiming to generate a clean copper concentrate and to select leach conditions for the nickel and cobalt processing.

1. Refer to Appendix 1 for downhole assay grades

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The second phase will have a greater focus on defining the “back end” of the process to produce various nickel and cobalt products. It will include much larger bulk flotation and leach tests to generate sufficient concentrate and leach solution for the nickel-cobalt refining work.

The second phase will investigate the production of mixed nickel-cobalt sulphide, separate nickel and cobalt sulphide and nickel and cobalt sulphate products.

The metallurgical testwork will be an iterative process that will be adjusted as results become available. The first phase of testwork is scheduled to commence next week and is anticipated to take six to eight weeks to complete. Sufficient sample has been collected from 17MVDD002 to proceed to the second phase, depending on results from the first phase program.

In parallel with the metallurgical testwork, Great Boulder has resumed exploration at Mt Venn. Exploration will take a two-pronged approach, targeting extensions to known mineralisation while also developing additional “greenfield” targets within the Yamarna-Mt Venn project.

Infill and extensional drilling will commence this weekend following completion of a downhole EM (“DHEM”) survey that is currently underway. The results will be used to update the DHEM conductor plates and finalise RC drill hole plans for the upcoming program.

A geophysical team will arrive on site this weekend to conduct a ground-based gravity survey. The gravity survey will cover the majority of the Yamarna project, including the Mt Venn and Eastern Mafic complexes.

Great Boulder Managing Director Stefan Murphy said the start of metallurgical testwork marked an important milestone at Mt Venn.

“The metallurgical test work will provide a valuable insight into both the technical and economic outlook for Mt Venn,” Mr Murphy said.

“In parallel with these tests, we will continue our multi-pronged exploration strategy to continue growing the size of what is already a significant discovery.

“After a very short period of exploration at Mt Venn we have delineated a large amount of mineralisation in only a very small area.

“As we progress metallurgical testwork and extend mineralisation along the main Mt Venn trend, our learnings will now be applied to the rest of the tenement package to generate new targets for similar copper-nickel-cobalt mineralisation”.

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Central Zone – Previously reported drill results (yellow) and new results (red) over RTP 1VD magnetics

The final drill hole provides further confidence in the size and grade continuity of the Central zone. The very shallow weathering with fresh sulphide within 10m of surface further adds to the development potential at Mt Venn and confirms a low-cost sulphide flotation flowsheet as the most appropriate.

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X-Section 6887660mN with DHEM conductor plates (coloured) and MLEM plates (grey)

Next Steps

The Metallurgical testwork will commence shortly. The first phase program is anticipated to take 6-8 weeks to complete but there will be flexibility in the timetable depending on results and any adjustments made to the testwork. Flotation results are expected after 4-6 weeks with leach results expected at the end of the program. Timing on the larger bulk testwork will depend on results from the first phase program.

The next round of RC drilling is due to commence this week following receipt of updated DHEM plate modelling and is anticipated to take 4-5 weeks to complete, depending on weather and ground conditions. Drilling will focus on infill and extensions to the central zone and targets immediately along strike from the Central zone where mineralisation has been intersected and EM plate modelling indicates continuity of mineralisation.

The ground gravity survey will also commence this week and is expected to take 3 weeks to complete. Approximately 70% of Great Boulder’s Yamarna project will be covered by the survey, with the results used in conjunction with the magnetic data to generate a 3D inversion model of the Mt Venn and Eastern Mafic complexes and different intrusions.

Detailed geological mapping and surface sampling will be undertaken over areas of interest from the gravity survey to define target areas for EM surveying and drilling.

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Appendix 1 –Summary of Significant Intersections

17MVDD002	17MVDD002	17MVDD002	17MVDD002	17MVDD002	17MVDD002	17MVDD002	17MVDD002
From To	Interval	Cu % (max graph 2%)		Ni % (max graph 0.3 %)		Co ppm (max graph 1000ppm)
8 9	1	0.37		0.04		141
9 10	1	0.50		0.03		188
10 11	1	0.45		0.05		229
11 12.3	1.3	0.27		0.07		327
12.3 13	0.7	0.76		0.08		323
13 14	1	0.89		0.16		587
14 15	1	0.38		0.24		867
15 15.75	0.75	0.60		0.24		831
15.8 16.3	0.55	0.22		0.04		89
16.3 17	0.7	0.43		0.07		281
17 18	1	1.51		0.05		213
18 19	1	0.38		0.15		537
19 20	1	0.55		0.11		421
20 21	1	0.85		0.13		483
21 22	1	0.43		0.23		798
22 23	1	0.26		0.24		823
23 24	1	0.72		0.26		890
24 25	1	0.37		0.28		964
25 26	1	0.30		0.22		755
26 27	1	0.30		0.18		611
27 28	1	0.40		0.13		458
28 29	1	0.50		0.16		551
29 30	1	0.41		0.15		531
30 31	1	1.39		0.11		396
31 32	1	0.22		0.24		804
32 33	1	0.28		0.26		866
33 34	1	0.19		0.26		857
34 35	1	0.56		0.17		577
35 36	1	0.43		0.16		548
36 37	1	0.54		0.11		358
37 38	1	0.35		0.21		671
38 38.5	0.5	0.41		0.19		617
47 48	1	0.61		0.08		343
48 49	1	1.74		0.06		184
49 50	1	0.19		0.20		569
50 51	1	0.81		0.03		108
51 52	1	0.23		0.17		538
52 52.65	0.65	0.67		0.04		126
52.7 53.4	0.75	0.06		0.26		758
53.4 54.1	0.7	1.46		0.15		460
54.1 55	0.9	0.20		0.25		739
55 56	1	0.39		0.24		707
56 57	1	0.31		0.24		699
57 58	1	0.28		0.20		606
58 59	1	0.16		0.24		714
59 60	1	0.18		0.25		757
60 60.9	0.9	0.18		0.24		734
60.9 61.9	1	0.30		0.05		162
61.9 62.9	1	0.08		0.10		306
62.9 63.9	1	0.26		0.01		29
63.9 64.3	0.4	1.37		0.04		154
64.3 65	0.7	0.53		0.17		499
65 66	1	0.24		0.22		667
66 66.6	0.6	0.12		0.24		716
66.6 67	0.4	1.08		0.12		380
67 68	1	0.11		0.18		554
68 68.5	0.5	0.73		0.15		469
68.5 69	0.5	0.12		0.22		652
69 70	1	0.20		0.18		561
70 71	1	0.19		0.18		546
71 71.38	0.38	0.11		0.21		664
71.4 72.18	0.8	0.80		0.08		257
72.2 73	0.82	0.14		0.01		49
83.8 84.2	0.38	0.36		0.02		57
84.2 85	0.8	0.41		0.18		567
85 86	1	0.11		0.24		735
86 87	1	0.31		0.20		621
87 87.68	0.68	0.70		0.15		485
98 99	1	0.61		0.06		189
107 108	0.7	0.07		0.21		616
108 108.5	0.5	0.29		0.18		513
109 108.8	0.3	0.21		0.04		132
109 109.2	0.4	1.12		0.06		178

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Competent Person’s Statement

Exploration information in this Announcement is based upon work undertaken by Mr Stefan Murphy whom is a Member of the Australasian Institute of Geoscientists (AIG). Mr Stefan Murphy 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’ (JORC Code). Mr Stefan Murphy is an employee of Great Boulder and consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Forward Looking Statements

This Announcement is provided on the basis that neither the Company nor its representatives make any warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Announcement and nothing contained in the Announcement is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The Announcement contains material which is predictive in nature and may be affected by inaccurate assumptions or by known and unknown risks and uncertainties, and may differ materially from results ultimately achieved.

The Announcement contains “forward-looking statements”. All statements other than those of historical facts included in the Announcement are forward-looking statements including estimates of Mineral Resources. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, copper, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of the Announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. All persons should consider seeking appropriate professional advice in reviewing the Announcement and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the Announcement nor any information contained in the Announcement or subsequently communicated to any person in connection with the Announcement is, or should be taken as, constituting the giving of investment advice to any person.

Refer to ASX announcement dated 5 February 2018 for JORC Table 1 details (Strong Assay Results Confirm Mt Venn Discovery)