LATITUDE 66 LIMITED — Capital/Financing Update 2015

Jan 20, 2015

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Assets, Experience, Growth

ASX ANNOUNCEMENT – 21 January 2015

BARBARA JV PARTNERS COMMIT TO EXPANDED FEASIBILITY STUDY FOR QUEENSLAND COPPER-GOLD PROJECT

New development approach set to deliver a range of benefits and project enhancements

Key Points:

• New development proposal for the Barbara Copper-Gold Project received from CopperChem, resulting in a decision to significantly expand the scope of the current Barbara Open Pit Feasibility Study.

• The key element of the CopperChem proposal and the expanded Feasibility Study is the inclusion of on-site ore processing at Barbara using a transportable plant to be sourced, installed and managed by CopperChem.

• CopperChem will continue to fully fund the expanded Feasibility Study until conclusion.

• This approach has the potential to unlock a number of compelling benefits for the JV in the areas of operating costs, treatment, refining and selling charges, reduced upfront capital expenditure and infrastructure investment, and an extended mine life.

• The expanded Feasibility Study will also fully incorporate recently identified additions to the Barbara Mineral Resource inventory, including the maiden resource at Lillymay and potential underground extensions at Barbara identified below the open pit.

• Drilling to resume in early 2015 targeting recently identified opportunities, including a strong EM conductor at Barbara Deeps, extensions to Lillymay and more than a dozen other prospects. The objective of this work is to establish a 5-7 year mine life at Barbara.

• The Barbara Project is highly leveraged both to improvements in the Australian Dollar copper price as a result of a weakening currency and to increases in the resource inventory.

Syndicated Metals Limited (ASX: SMD – “Syndicated” or “the Company”) is pleased to advise that it has reached agreement with its joint venture partner CopperChem Limited to extend the scope of the Feasibility Study on its Barbara Copper-Gold Project in North Queensland to incorporate a number of recently identified enhancements to the project.

The new development approach – which is based on a proposal to undertake on-site processing using a low-cost transportable facility – is expected to unlock a range of significant benefits for the Barbara Project, particularly in the all-important areas of operating costs, treatment, refining and selling charges for copper concentrate produced and upfront capital expenditure.

These improvements would, in turn, translate into enhanced economic and financial returns.

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The original scope for the Barbara Copper Project Feasibility Study was based on a two-year open pit mining operation on the Barbara deposit only, with ore haulage to the CopperChem plant at Cloncurry.

While the Open Pit Feasibility Study has been progressed to an advanced stage, the Joint Venture has decided to expand its scope to incorporate the new on-site processing scenario and include other additions to the Barbara Mineral Resource inventory which could provide significantly improved financial returns based on a 5-7 year life-of-mine (LOM) plan.

The work completed to date as part of the Feasibility Study indicates that the Barbara Project is highly leveraged both to improvements in the Australian Dollar copper price as a result of the weakening currency and increases in the resource inventory. The expanded study will incorporate updated assumptions for both the copper price and exchange rate, both of which have moved considerably over the past six weeks.

CopperChem has agreed to continue to fund the expanded Feasibility focusing on the on-site processing scenario, which includes initial treatment to a sulphide concentrate at Barbara followed by optional further treatment at the Cloncurry plant.

The Barbara Joint Venture will undertake further drilling programmes at Barbara and at the identified satellite deposits to deliver the Mineral Resources to support a 5-7 year LOM. The drilling programmes will target extensions to the Barbara deposit into underground mining positions and already identified satellite deposits.

The permitting and approvals process for the Barbara open pit operation is well advanced with Landholder access agreements signed and Mining Lease applications under consideration.

The study work completed to date, including the permitting and approvals and the Mining Lease application, will enable the Joint Venture partners to advance the project rapidly, pending a positive result from the expanded Feasibility Study. It is anticipated that the expanded study will be completed in Q3 2015.

New Development Pathway

The key elements which will now be incorporated in the expanded Barbara Feasibility Study include:

• As per the proposal received from CopperChem, a plan to develop Barbara using an innovative, on-site but transportable processing facility which would result in the production of copper concentrate on-site. This would significantly reduce the transportation and treatment costs (TCs) which would otherwise be incurred by hauling ore to Cloncurry and/or selling Barbara ores to existing operators in the region. TCs in the copper industry are currently at a cyclical high;

• The on-site plant would be sourced, installed and managed by CopperChem;

• An option to produce rougher concentrate at Barbara and transport it to CopperChem’s Cloncurry processing plant for final processing into high grade concentrate;

• The significant opportunity to increase the overall copper mineral resource inventory, both at Barbara and in the surrounding area as a result of a number of recent developments, including:

• The discovery of a strong EM conductor at depth between Barbara South Lode and Barbara Mid Lode, which represents a priority target for extending the Barbara Mineral Resources;

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• The establishment of satellite developments such as at the Lillymay deposit, for which Syndicated recently announced a maiden Inferred Mineral Resource of 225,295t @ 2.33% Cu for 5,250 tonnes of contained copper (refer ASX Announcement – 16 December 2014). The Joint Venture believes there is outstanding potential to further increase the resource at Lillymay and define additional resources at other regional prospects including Mt Olive, Greenback and Greenzone; and

• The delineation of a number of prospective new exploration targets, located both within the Barbara Joint Venture tenure and 100%-owned ground.

2015 Exploration Program

Barbara

During 2014, Syndicated completed eight diamond drill holes targeting the Barbara Deeps project. These holes intersected both the Southern Lode and Northern Lode mineralisation approximately 300m below surface (refer to Figure 1).

As part of this program, down-hole electromagnetic (DHEM) surveys were conducted from a number of the deeper holes. These surveys have identified a significant EM conductor at depth below Mid Lode, between South and North Lodes. Diamond drilling into Mid Lode indicates the presence of vein-style chalcopyrite mineralisation immediately up-dip of the conductor, with assay results of 6m at 2.23% Cu (BADD029) and 0.9m at 2.14% Cu (BADD030) (refer ASX Announcement 24 September 2014).

The Joint Venture partners are very encouraged by the presence of this additional conductor, which is in an ideal location for future underground mining. The Company’s exploration team will test the new EM conductor in early 2015 with a program of deep diamond drilling aimed at further increasing the Barbara Deeps Mineral Resource inventory.

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Figure 1 – Barbara Long Section indicating the location of the Barbara Underground drill holes and DHEM plate below Mid Lode.

Lillymay

Syndicated has recently reported a maiden JORC Mineral Resource estimate for the high-grade Lillymay Satellite deposit, located 4km south-west of Barbara (refer ASX Announcement – 16 December 2014). Lillymay has the potential to be a valuable source of high-grade mineralisation feeding into the broader Barbara development.

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As part of the drilling program which defined the initial Mineral Resource, two DHEM plates were located indicating the potential for significant extensions of the high-grade mineralisation below a depth of 100m and into potential future underground mining positions (refer to Figure 2).

This work also highlighted potential extensions to the surface mineralisation both east and west of the Resource (refer to Figure 3).

In light of these near-term exploration opportunities, the Company has maintained its Exploration Target for Lillymay of 0.4-0.8 Mt @ 2-3% Cu based on the average true width and grade of the 18 RC holes drilled to date extrapolated over 600m of strike to a depth of 125m below surface. The Exploration Target at Lillymay is conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource in compliance with the JORC Code. It is uncertain if further exploration will result in the estimation of a Mineral Resource as defined by the JORC code.

Drilling is scheduled to re-commence at Lillymay in February 2015.

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Figure 2 – Long section showing pierce points through the Lillymay veins.

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Figure 3 – Plan showing Lillymay Prospect with Eastern and Western Extensions.

Greenback and Greenzone

The Greenback and Greenzone prospects lie at either end of the Barbara Shear Zone. Geologically these prospects represent the intersection of the NW-SE oriented Barbara Shear Zone with the more northerly Greenback and Greenzone shears.

Both prospects contain a number of previous RC drill intersections and represent attractive walk-up drill targets to expand the Mineral Resources available to the Barbara Copper project.

Previous RC drill results at Greenzone include :

• 10m @ 0.96% Cu from 82m down-hole in GZRC002

• 24m @ 0.83% Cu from 32m down-hole in GZRC003

• 8m @ 1.05% Cu from 56m down-hole in GZRC006

• 8m @ 1.81% Cu from 6m down-hole in GZRC020

• Previous RC drill results at Greenback include:

• 2m @ 0.98% Cu from 72m down-hole in GBRC003

• 9m @ 0.93% Cu from 40m down-hole in GBRC005

These prospects were drilled by Syndicated in 2010 and 2011 and have been re-interpreted using the enhanced geological knowledge of the area developed from the significant geological work completed at Barbara throughout 2013/2014. Refer to Table 1 and the JORC table attached.

Other Prospects Within Barbara JV

The Barbara Copper Project consists of 100km[2] of tenure over three tenements (refer to Figure 4). Soil geochemical surveys conducted in 2013 and 2014 have highlighted an additional 15 prospects within the JV tenure that are yet to undergo any drill testing. Many of these prospects contain historical workings that indicate high-grade oxide copper mineralisation at surface.

The 2015 exploration program will assess these prospects and rank them according to prospectivity once the source of the copper-in-soil anomaly has been established. Those prospects that warrant

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drilling will be further assessed with an initial RC drilling program to determine the controls on the mineralisation and potential deposit size and grade.

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Figure 4 – Project Location Plan highlighting the large number of exploration prospects within the Barbara JV tenure and surrounding Barbara.

Summary and Outlook

Syndicated’s Managing Director, Andrew Munckton, said the decision to expand the scope of the Feasibility Study beyond the initial open pit operation marked an important turning point for the Barbara Project.

“The presentation of an alternative development pathway by CopperChem in the form of an on-site processing operation utilising modular, transportable equipment is a compelling opportunity for the joint venture to consider, and one that we believe will ultimately deliver a range of benefits to the project in a number of key areas.

“These include lower operating costs, a far more palatable arrangement in terms of transport and treatment charges and the potential to reduce the upfront capital outlay. These improvements could substantially improve the economic and financial returns from Barbara, particularly when combined with the possibility of extensions to the resource inventory as a result of further exploration at a number of prospects.”

“In particular, we have recently confirmed with our geophysical consultant the presence of an exciting exploration target in the form of a strong down-hole conductor at the Barbara Mid Lode. This target will be a priority for drilling in early 2015, along with further work to expand the resource at Lillymay and test other satellite exploration targets.

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“In conclusion, we believe the decision to extend the Feasibility Study will ultimately deliver greater benefits to our shareholders. We also believe that the decision not to rush into a short-life open pit operation at Barbara in a volatile and challenging market environment will in hindsight be seen as a wise one.”

ENDS

For further information:

Investors

Andrew Munckton – Syndicated Metals Mobile: 0435 635 598

Media

Nicholas Read – Read Corporate Mobile: 0419 929 046

Competent Person’s Statement

The information in this report that relates to Mineral Resources is based on information compiled by Mr Jim Whitelock and Mr Michael Martin. Both Mr Whitelock and Mr Martin are Members of The Australasian Institute of Geoscientists (AIG) and both has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are 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 (the “JORC Code”). Mr Whitelock is a fulltime employee of Exco Resources Limited a 100% owned subsidiary of CopperChem Limited and Mr Martin is a full time employee of Syndicated Metals Limited. Both Mr Whitelock and Mr Martin consent to the inclusion in the report of the Mineral Resources in the form and context in which they appear.

The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by Mr Andrew Munckton who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient experience 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 (the “JORC Code”). Mr Munckton is a full-time employee of Syndicated Metals Limited and consents to the inclusion in the report of the Exploration Targets and Exploration Results in the form and context in which they appear.

Exploration Targets

This report comments on and discusses Syndicated Metals Limited’s exploration in terms of target size and type. The information relating to Exploration Targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. The potential quantity and quality of material discussed as Exploration Targets is conceptual in nature since there has been insufficient work completed to define them as Mineral Resources or Ore Reserves. It is uncertain if further exploration work will result in the determination of a Mineral Resource or Ore Reserve.

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Table 1: Drill-Hole Summary and Significant Intercepts

Hole ID	Northing (m)	Easting (m)	Depth (m)	Dip	Azi	From (m)	To (m)	Interval (m)	Cu (%)	Au (ppm)	Ag (ppm)	Co (ppm)	S (%)
GBRC001	7739696	381233	84	-60	262.9	30	34	4	0.51	0.04	0.23	946	1.8
						63	64	1	1.46	0.15	1.1	71	1.6
						72	73	1	0.55	0.04	0	91	0.91
						77	78	1	0.56	0.04	0.3	60	1.17
GBRC002	7739717	381216	75	-59	27.9			No	Significant assays
GBRC003	7739798	381131	96	-60	14.9	62	65	3	0.7	0.09	0.53	593	2.63
						72	74	2	0.98	0.09	3.25	325	1.21
						78	79	1	1.25	0.29	3.2	181	2.06
GBRC004	7740115	381005	6	-63	50.9				Abandoned
GBRC005	7740119	381002	72	-63	48.9	40	49	9	0.93	0.07	1.41	284	1.4
GBRC006	7740117	381001	108	-82	67.9	62	71	9	0.55	0.03	0.48	279	1.06
GZRC001	7742272	379434	94	-60	270.9	56	60	4	1.01	0	0.28	34.5	1.34
						67	79	12	0.6	0.01	0.23	44.83	1.21
GZRC002	7742075	379349	130	-60	270.9	55	60	5	0.78	0.01	0.42	47.6	1.3
						82	92	10	0.96	0.02	0.36	106	2.58
GZRC003	7742306	379423	84	-60	270.9	32	56	24	0.83	0.01	0.44	72.92	1.75
						67	68	1	0.85	0.02	1.2	52	1.48
GZRC004	7742238	379412	84	-60	270	44	54	10	0.68	0	0.52	87	1.62
GZRC005	7742152	379359	84	-60	270	59	60	1	0.51	0.01	0.4	95	2.17
						64	69	5	0.6	0.03	0.26	103	1.86
GZRC006	7742111	379348	126	-60	270	56	64	8	1.05	0.01	0.29	55	1.73
GZRC007	7742031	379334	114	-60	270	60	61	1	0.55	0.06	0.3	42	1.08
GZRC008	7741990	379337	126	-60	126	54	55	1	1.39	0.03	0.5	42	2.2
						59	60	1	0.93	0.01	0.4	17	1.27
						63	65	2	1.02	0.04	0.25	82	2.75
GZRC009	7742352	379427	118	-60	273	34	37	3	0.69	0	0.4	45.33	1.26
						58	67	9	0.98	0.02	0.48	52.56	2.18
						93	94	1	0.53	0.01	0.7	52	1.22
GZRC010	7742383	379431	124	-60	273	46	51	5	1.02	0.01	0.36	48.9	1.39
						74	76	2	0.59	0	0.25	35.5	0.78
						80	84	4	0.97	0	0.4	32	1.14
GZRC011	7741963	379293	58	-60	90			No	Significant assays
GZRC012	7742001	379290	40	-60	90	27	28	1	0.6	0.01	0.3	139	2.08
GZRC013	7742042	379298	58	-60	90			No	Significant assays
GZRC014	7742079	379299	60	-60	90	36	41	5	0.89	0	0.26	39	1.27
GZRC015	7742125	379302	46	-60	90	1	5	4	0.71	0.03	0.05	160.5	0.01
						22	25	3	1.35	0.01	0.27	42	2.15
						30	31	1	0.53	0	0.2	183	2.88
GZRC016	7742159	379316	40	-60	90	9	15	6	0.84	0	0.38	86.83	1.32
						18	22	4	1.1	0.11	0.45	81	3.05
						25	32	7	0.93	0.01	0.54	91.14	2.81
GZRC017	7742202	379371	76	-60	90	13	14	1	0.6	0.04	0	56	0.01
GZRC018	7742205	379351	60	-60	90			No	Significant assays
GZRC019	7742204	379323	100	-60	90			No	Significant assays
GZRC020	7742240	379387	46	-60	90	6	14	8	1.81	0.01	0.34	80.5	0.19
GZRC021	7742325	379400	40	-60	90	7	9	2	0.63	0.05	0.1	80	0.57
GZRC022	7742283	379385	52	-60	90	12	14	2	0.64	0.01	0.1	35	1.03
						22	26	4	0.65	0.01	0.05	41.75	1.38
						19	29	10	0.7	0	0.14	55.1	1.57
						38	42	4	1.08	0	0.18	62.25	2.19
GZRC023	7742357	379386	58	-60	90	47	51	4	1.06	0	0.43	63	1.95
GZRC024	7742402	379395	46	-60	96.4	29	30	1	0.54	0.03	0	47	0.77
GZRC025	7742444	379368	100	-60	88.4	67	71	4	0.89	0	0.13	36.75	1.28

Note : The mineralised interval length of intercepts shown in the table are down-hole distances and are not corrected for angle of dip. A cut-off grade of 0.5% Cu was used for calculating mineralised intervals. Downhole widths are reported. True width is approximately 80-85% of Downhole width.

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Criteria JORC Code explanation

Exploration Results

Criteria JORC Code explanation	Criteria JORC Code explanation	Criteria JORC Code explanation	Criteria JORC Code explanation
Exploration Results
	Mineral	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	The Barbara, Lillymay, Greenzone and Greenback deposits are located within EPM16112 and EPM19733. The current registered holder for EPM16112 and EPM19733 is Syndicated Metals Limited (SMD). These tenements are currently in the process of being transferred to the CopperChem/Syndicated Metals JV. The area covered by the Barbara Resource and the Greenzone deposit is subject to Mining Lease application ML 90241 application submitted to DNRM on 7 May 2014. EPM16112, EPM19733 and ML90241 are subject to the Barbara Joint Venture Agreement with CopperChem Limited (CopperChem) for the joint evaluation, development, mining and processing of the Barbara Resource. CopperChem Limited have a 50% interest in EPM16112, a portion of EPM19733 and ML 90241. The tenements sit within the Kalkadoon People #4 Native Title claim.
	tenement and
	land tenure status
		The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	The tenements are in good standing and no known impediments exist.
	Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.	No work by other parties is reported as part of this announcement.
	Geology	Deposit type, geological setting and style of mineralisation.	The Barbara deposit is a shear hosted deposit within acid volcanics within the Kalkadoon-Leichhardt belt of the Mt Isa Inlier. The NW striking lode dips at approximately 60°to the south west, and varies from 2m to 30m true thickness. The Lillymay deposit is a shear hosted vein style deposit within acid volcanics within the Kalkadoon-Leichhardt belt of the Mt Isa Inlier. The Greenzone prospect is a shear hosted vein style deposit hosted within mafic rocks in the Greenzone shear located on the contact of the Leichhardt Volcanics and the Argylla Formation. The Greenback prospect is located on the southern continuation of the Barbara Shear Zone. The prospect is hosted with the metabasalt and interbedded carbonate rocks of the Magna Lynn formation.
	Drill hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:	Refer to attached Table 1.
		Easting and northing of the drill hole collar	Refer to attached Table 1.
		Elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar	RL Derived from LIDAR survey results not included in Table 1. Average RL at Greenback is 364mRL, Average RL at Greenzone is 317mRL
		Dip and azimuth of the hole	Refer to attached Table 1.
		Down hole length and interception depth	Refer to attached Table 1.
		Hole length.	Refer to attached Table 1.
		If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	Refer to attached Table 1.

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Data aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.	Refer to attached Table 1.
	Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.	The high grades in the exploration results have not been cut. Lower cut off is nominally 0.5%Cu with a maximum of 3m sub 0.5% Cu internal dilution to make up the full intersection.
	The assumptions used for any reporting of metal equivalent values should be clearly stated.	No metal equivalent values are used for reporting exploration results.
Relationship between mineralisation widths and intercept lengths
	These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.	At Greenzone two directions of drilling have been completed. Holes have been drilled at azimuths of 90 and 270 degrees and dips of -60. The ore zone dips at approximately 85 degrees to the west. The intersection angle between the ore zone and drilling are between 55 and 65 degrees to the mineralised zones. Therefore reported downhole intersections for -60 degree holes can be on average 30% to 50% greater than the true width. At Greenback, majority of drillholes completed at -60 degrees to both the east and west. The ore zone dips at 70 degrees to the south west. The intersection angle range from 40 to 60 degrees from the perpendicular. Therefore reported downhole intersections for the holes can be on average 30% to 60% greater than the true width.
	If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg‘down hole length,true width not known’).	See above.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Refer to Figures 1, 2, 3 and 4.
Balanced reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	All results are reported.
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	Exploration drill results only reported at this time.
Further work	The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step- out drilling).	Planning of drillholes targeting extension to the Greenzone and Greenback prospects is underway as part of exploration review.
	Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	Planning of drillholes targeting extension to the Greenzone and Greenback prospects is underway as part of the prospect review. Please refer to figure 4 for the location of the Greenzone and Greenback prospects.

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Criteria JORC Code explanation

Sampling Techniques and Data

Criteria JORC Code explanation	Criteria JORC Code explanation	Criteria JORC Code explanation	Criteria JORC Code explanation
SamplingTechniques and Data
	Sampling techniques	Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.	Sampled 1m intervals using a rig mounted cyclone and 87.5-12.5 riffle splitter to collect a 3.5kg to 4kg sample. All 1m samples are analysed using handheld XRF and then all samples over 0.05% copper are sent to ALS laboratories for Au and multi-element analysis. Reject sample retained on site.
		Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used	Sampling was carried out under Syndicated Metals protocols and QAQC procedures.
		Aspects of the determination of mineralisation that are Material to the Public Report- In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information	RC drilling was used to obtain a 1 m sample from a 3.5 to 4 kg sample which was pulverised by an LM2 to produce two subsamples, for multielement analysis in Mt Isa and gold analysis in Townsville.
	Drilling techniques	Drill type (eg core, reverse circulation, open-hole hammer, rotary air 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 if so, by what method, etc).	Reverse Circulation Drilling has been undertaken using a face sampling percussion hammer with 5 1/4" bits
	Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	Reverse Circulation recoveries are monitored using visual means, approximating bag weight to theoretical weight and checking sample loss though outside return and sampling equipment.
		Measures taken to maximise sample recovery and ensure representative nature of the samples.	Reverse Circulation holes are collared with a well-fitting stuffing box, material to outside return minimized. Drilling is undertaken using auxiliary compressors and boosters to keep hole dry and lift the sample to the sampling equipment. Cyclone and sampling equipment is checked regularly and cleaned. Hole is flushed at end of each sample and end of rod.
		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.	Recovery is visually checked and sample loss of the fine or coarse fraction is attempted to be minimized using SMD RC drilling protocols.
	Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	Logging is carried out by a geologist, using SMD logging system which has developed to accurately reflect the geology of the area and mineralisation styles. With very few geologists having worked on the project, the level of consistency of logging remains high.
		Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.	Reverse Circulation logging is both qualitative and quantitative in nature and captures downhole depth, colour, lithology, texture, alteration, sulphide type, sulphide percentage, structure. Core logging also captures RQD, Recovery, and orientated structures. Magnetic susceptibilityalso collected.
		The total length and percentage of the relevant intersections logged.	All drillholes are logged in full.
	Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken.	No core holes drilled at Greenzone or Greenback
		If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	RC samples are riffle split, when dry. If sample is wet, the sample is dried and split or a scoop is used.
		For all sample types, the nature, quality and appropriateness of the sample preparation technique.	The samples are prepared using an accredited laboratory and follow industry best standard including, oven drying, coarse crushing of core, followed by pulverization of the entire sample in a LM2 to a grind size of 85% passing 75 micron.
		Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.	Field QC procedures involve the use of certified reference material as assay standards, along with blanks and duplicates.

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	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.	Reverse circulation field duplicates are taken 2 in 100 samples.
	Whether sample sizes are appropriate to the grain size of the material being sampled.	The sample sizes are believed to be appropriate to correctly represent the style, thickness of copper, gold mineralisation in the Mt Isa Inlier.
Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	Analysis of Cu, Fe and S was completed at Mt Isa using the ICP41 scheme, while Au was analysed by ALS in Townsville using fire assay AA25.
	For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.	No geophysical tools were used to determine any element concentrations used in this resource estimate. A handheld XRF instrument was used to determine samples to be sent off for wet chemical analysis.
	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.	ALS laboratories QAQC includes insertion of certified standards, blanks and check samples and fineness checks to ensure grind size of 85% passing 75 micron as part of their own internal procedures. Syndicated Metals inserts certified standards and duplicates into the sample sequence. Field duplicates and standard control samples have been used at a frequency of 2 field duplicates and 6 standardsper 100 samples.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	The ore intersections at Greenzone have been checked by Runge during their 2011 resource estimation of Greenzone.
	The use of twinned holes.	Twinned holes have not yet been used.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	Geological, Geotechnical and sampling information is initially collected through an electronic logging system.
	Discuss any adjustment to assay data.	No adjustments or calibrations were made to any assay data used in this estimate.
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	All SMD drill holes have been accurately surveyed by contract surveyors using a DGPS instrument. For the majority of holes, downhole surveys have been conducted at regular intervals using single shot cameras.
	Specification of the grid system used.	GDA94 MGA Zone 54 datum North.
	Quality and adequacy of topographic control.	A LIDAR topographic survey has been undertaken and is nominally accurate to +/- 0.3m on flat terrain.
Data spacing and distribution	Data spacing for reporting of Exploration Results.	The Drill spacing was considered adequate to establish bothgeological andgrade continuity.
	Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.	The Drill spacing was considered adequate to establish both geological and grade continuity.
	Whether sample compositing has been applied.	All samples were collected as 1m samples. No compositingwas necessary.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.	The drill orientation has not been optimal. Two directions of drilling completed. No section, with ore grade intercepts, has more than one hole in the same direction.
	If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	No bias is currently known.
Sample security	The measures taken to ensure sample security.	Samples are stored on site and transported to ALS laboratories in Mt Isa by Syndicated Metals for Preparation. Sample numbers used for drilling.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	No site visit undertaken.

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