Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

LCL RESOURCES LIMITED Capital/Financing Update 2017

May 29, 2017

65217_rns_2017-05-29_a7e9e92b-92ea-4fce-8676-5f5b79c64051.pdf

Capital/Financing Update

Open in viewer

Opens in your device viewer

ASX ANNOUNCEMENT

30 May 2017

==> picture [217 x 36] intentionally omitted <==

AMENDMENT TO ANNOUNCEMENT

Metminco Limited (Metminco or the Company) (ASX: MNC; AIM: MNC) released an announcement dated 14 March 2017 advising an updated JORC 2012 Mineral Resource Statement for its wholly owned Miraflores Gold Project ( Announceme nt).

The ASX has subsequently advised the Company that the Announcement did not fully comply with ASX Listing Rules 5.8.1 and 5.22. The Summary section of the Announcement did not adequately summarise all relevant information contained in Appendix A and the Competent Person disclosure did not include affiliation details.

Attached is the amended Announcement ( Amended Announcement ) which fully complies with the ASX Listing Rules. Please note the Amended Announcement does not contain any new information.

==> picture [88 x 55] intentionally omitted <==

William Howe Managing Director

Metminco Limited ABN 43 119 759 349 Suite 401, 6 Help Street, Chatswood NSW, 2067 ASX Code: MNC.AX; AIM Code: MNC.L Tel: +61 (0) 2 9460 1856; Fax: +61 (0) 2 9460 1857 www.metminco.com.au

ASX ANNOUNCEMENT

30 May 2017

==> picture [217 x 36] intentionally omitted <==

MIRAFLORES MINE DEVELOPMENT UPDATED JORC 2012 MINERAL RESOURCE STATEMENT

Metminco Limited (“Metminco” or the “Company”) (ASX: MNC; AIM: MNC) announces that it has received an updated and improved mineral resource estimate for the Miraflores gold deposit in Colombia prepared by Metal Mining Consultants (“MMC”) based in Denver, USA, in accordance with the guidelines of the JORC Code (2012 Edition). This updated mineral resource estimate, which was undertaken to provide the basis of the detailed mine plan for the Miraflores Feasibility Study, replaces the previous JORC (2012) statement completed by MMC that was released to the market on 21 July 2016.

The new JORC 2012 Mineral Resource Estimate represents an increase in gold contained in the measured and indicated (“M&I”) resource and inferred resource categories of 8,000ozs and 29,000ozs respectively. Total M&I Resources contain 840,000ozs Au and 826,000ozs Ag.

HIGHLIGHTS

  • Measured Mineral Resources of 2.95Mt @ 2.98g/t Au and 2.5g/t Ag

  • Indicated Mineral Resources of 6.31Mt @ 2.74g/t Au and 2.9g/t Ag

  • Measured and Indicated Mineral Resources of 9.27Mt @ 2.82g/t Au and 2.77g/t Ag

  • Inferred Mineral Resources of 0.49Mt @ 2.36g/t Au and 3.64g/t Ag

The mineral resource estimate was based on 25,884 metres of drilling in 73 diamond drill holes and 236 metres of underground channel samples and using a 1.2g/t Au cut-off grade.

Mr William Howe, Managing Director, commented: “The Company, together with its engineering consultants, are making excellent progress on the feasibility study for the potential development of the Miraflores Gold Project located at Quinchia, in the Department of Risaralda, Colombia, with the date for completion of the feasibility study anticipated to be during third quarter 2017. GR Engineering, a Perth, Australia, based consulting engineer has been commissioned by the Company to complete the feasibility study encompassing an underground mine, processing facilities, infrastructure and tailings facility.

The Company continues to work closely with governmental authorities and the community in relation to the potential mine development. Preparation of the EIA for development is also progressing well and the Company anticipates submission of the EIA to the relevant government authorities by the end of 2017.

At these updated resource tonnages and grades Miraflores represents a high quality gold project that is on par with other Colombian gold mines coming on stream or already in production. Additionally, Miraflores will represent the first of a number of potential projects within the Quinchia portfolio. The focus remains to advance Miraflores through the remainder of this year and to further derisk the project."

Metminco Limited ABN 43 119 759 349 Suite 401, 6 Help Street, Chatswood, NSW, 2067
ASX Code: MNC.AX; AIM Code: MNC.L Tel: +61 (0) 2 9460 1856; Fax: +61 (0) 2 9460 1857
www.metminco.com.au

ASX ANNOUNCEMENT

METMINCO LIMITED

30 May 2017

SUMMARY

Geology and Geological Interpretation

The Miraflores deposit comprises a magmatic-hydrothermal breccia pipe located within a fertile hypabyssal porphyry cluster breccia-pipe. The breccia pipe is sub-vertical and cylindrical with surface dimensions of 250m x 280m with a known vertical extent of 500m to 600m, but open at depth, with clear contacts with the adjacent basalts of the Barroso Formation. A NNW – SSE fracturing system appears to control the formation of the breccia.

Four types of breccia have been distinguished, namely a Red Breccia, a Green Breccia, a Grey Breccia and a White Breccia. The contacts between the different types of breccias are gradational or transitional. The White Breccia occurs in irregular, elongated vertical zones or pockets, surrounded by Green or Grey breccia’s, and is interpreted to have formed later than the other breccias. Furthermore, hydrothermal fluid appears to have washed out the rock flour matrix within the White Breccia, or replaced it, with deposition of gangue and sulfide minerals. Of the four breccia types, the Red Breccia contains the highest gold grades with grades of up to 429g/t gold in the vicinity of fault / vein zones.

Steeply-dipping high-grade veins are present, which represent the youngest mineralizing event at Miraflores. Three groups of veins have been identified based on strike direction, namely Group 100 comprising 3 veins with an average strike/dip of 293°/-87°; Group 200 comprising 5 veins with an average strike/dip of 308°/-82°; and Group 800 comprising 13 veins with an average strike/dip of 340°/-82°. Of these veins, Group 100 is the oldest, and the Group 800 is the youngest.

The main mineralization trends of the high-grade veins vary in strike from 325° to 10° and 280° to 60°, and vary in dip from being vertical to dipping 70°E. The veins are defined by a narrow mineralized core (10cm to 60cm) and a wider mineralized halo (1m to 5m). The narrow core consists of increased amounts of sphalerite, galena, pyrite, chalcopyrite, and fine clay. The wider mineralized halo is defined by weak to moderate mineralization along the margins of breccia fragments. The intensity and width of the mineralized halo is controlled by the porosity and permeability of the wall rock. Assay values as high as 429g/t Au have been reported for the veins, with numerous sample values ranging from 10g/t Au to grades exceeding 100g/t Au.

The younger sub-vertical, northeast dipping veins, that cross-cut the breccia are characterized by the development of argillized material that contains large quantities of pyrite, chalcopyrite, sphalerite and galena, with occasional visible gold. The sulfides are present as coarse particles ranging from 100 to 200μm (occasionally greater than 200μm). The lateral continuity of the NNW-SSE structures is important, and is clearly recognized in prior exploitation workings, where high gold grade mineralization can be followed over a strike length in excess of 150 metres (and more than 80 metres in height), with limited displacement by younger structures. Intersection points of cross-cutting structures (veins) form high gold grade ‘shoots’ of variable dimensions, which can be observed in the underground workings.

Sampling and sub-sampling Techniques

A total of 73 drill holes have been completed, totalling 25,884 metres, which have been analysed for Au and Ag, as well as other elements. Core sampling intervals have been separated by lithological units

Diamond drill core was utilized for the majority of the samples analysed, with half-core sections having been submitted for preparation and analysis. Sampling intervals of 1 metre were generally taken.

Samples were logged in the tracking system; weighed, dried and finely crushed to > 70% passing a 2 mm screen; make a split of up to 250g using a riffle splitter; pulverize split to > 85% passing a 75 micron (µm) screen.

Core was generally sawn using a diamond saw, although a hydraulic splitter was used in some cases when the diamond saw was inoperative, or to evaluate the possibility of losing material when using a diamond saw.

Recovery in the drill core averaged above 93%, with recoveries in the mineralized veins and breccias averaging from 95 to 100%.

Sample types are appropriate. During the first drill campaign over the period 2010 to November 2012, samples were prepared by SGS Colombia S.A. in Medellin, and analyzed at the SGS del Peru S.A.C. laboratory in El Callao, Peru, who is ISO 9001 certified. The sample preparation procedures were as follows: 1) dry the sample and crush the entire sample to >95% passing a 2 mm screen; 2) make a 250g split using a riffle splitter; and 3) pulverize the split to >95% passing a 140 mesh screen in 800 cc chrome steel bowls in a Labtech LM2 vibrating ring mill.

During the latest drilling campaign, November 2012 to March 2013, samples were prepared by ALS Colombia Ltd., in Medellín and were assayed at the ALS laboratory in Lima, Peru. The sample preparation procedures

Page 2 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED

30 May 2017

were as follows: 1) sample is logged in the tracking system; 2) sample is weighed, dried and finely crushed to >70% passing a 2 mm (Tyler 9 mesh, US Std. No.10) screen; and 3) a split of up to 250 g is taken and pulverized to >85% passing a 75 micron (µm) (Tyler 200 mesh, US Std. No. 200) screen.

Miraflores Compania Minera carried out a comprehensive QA/QC program at Miraflores which comprised certified standard reference materials (CSRM), quartz sand blanks, preparation duplicates (PD) and field duplicates (FD) in addition to check assays at a third party laboratory. The routine QA/QC samples were inserted into the sample stream on the basis of every 100 samples.

Within each 100 sample numbers, there are 5 CSRM; 4 blanks, 2 PD samples and 2 FD samples. Thus every 100 samples contain, on average, 87 unknowns and 13 QA/QC samples (15%) which agrees with industry best practise guideline.

Sample sizes are generally 1/2 core samples from HQ-diameter core. In selected cases, larger samples of whole-core or channel samples have been taken for metallurgical analysis. These sample sizes are appropriate in the context of the nature and grain sizes of the mineralization at Miraflores.

Sample Analysis Methods

SGS del Perú S.A.C. analyzed samples for gold by fire assay (FA) (30g sample) with an AA finish (code FAA313; detection limits 5 ppb to 5000 ppb). Over limit gold values were repeated by fire assay with a gravimetric finish (method FAG303) and a lower limit of detection of 0.02 g/t. Multi-element geochemical analyses were conducted by a multi-acid (HNO3 and HCl) digestion and ICP-MS for 48 elements.

During the most recent drilling program (November 2012 to March 2013), samples were prepared by ALS Laboratory in Lima, Peru, who is ISO9001:2008 and ISO 17025 certified, analyzed samples for gold by fire assay (FA) (30g sample) with an AA finish (code Au-AA23; detection limits 0.005 ppm to 10 ppm). Over limit gold values were repeated by fire assay with a gravimetric finish (method Au-GRA21) and a lower limit of detection of 0.05g/t. Multi-element geochemical analyses were conducted by a four acid “near-total” digestion (HF-HNO3-HClO4 acid digestion, HCl leach) and ICP-MS for 48 elements.

Drilling Techniques

HQ core was drilled to depths of 400m. Core size was changed to NQ for depths greater than 400m. Drill spacing is highly variable, but the deposit has been drilled on sections with a nominal 25m spacing. Actual drill spacing for mineralized structures ranges from 10m to some 75m

The spacing of the data used in the Mineral Resource estimation is sufficient to establish geological continuity and has been considered in the classifications applied.

Mineral Resource Estimate

Three diamond drilling programs have been carried out at Miraflores over the period 2006 to 2013 consisting of 73 drill holes totalling 25,884m.

  • Kedahda (4 drill holes totalling 1,415m)

  • B2Gold (6 drill holes totalling 2,210m)

  • Miraflores Compania Minera SAS (63 drill holes totalling 22,259m)

The modelling of the Miraflores deposit has been undertaken using Vulcan™ and Leapfrog™ Software. All of the exploration sampling has been used in the geological modelling process. The drill hole database was desurveyed, transformed and validated in the Vulcan™ software, which was then used for the modelling of the mineral resource.

The statistics have been completed using a combination of Vulcan™, Microsoft Excel™ and Sage™ 2001. Geostatistics have been completed in Vulcan™ and Sage™ 2001 and grade interpolation has been undertaken in Vulcan™. Compilation of the final model was undertaken in Vulcan™. Vulcan™ software is similar to other mining software systems and relies on a block modelling approach to represent deposit as a series of 3-D blocks to which grade attributes, and virtually any other attributes can be assigned. The software provides numerous means by which attributes can be assigned, and optimization routines are provided that allow block splitting, such that complex deposit outline details are not lost or smoothed out by regular size blocks.

Drill hole assays for Miraflores were composited using 2m down the hole composite lengths. A total of 13,194 two-metre composites were constructed, starting at the collar of the drill hole. Composite intervals less than 0.75m in length were merged with 2m composites however; some composites less than 2m do exist, as the composites were constrained by geological boundaries.

Page 3 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED

30 May 2017

Basic statistics were compiled for both gold and silver grades in each mineralized lithology and all 21 veins developed within the Miraflores deposit. Capping statistics were determined using histogram and log probability plots of all gold composites in the breccia. A capping value of 45g/t was determined for the breccia, whereas it varied from 0 to 17g/t for the veins. Silver grades were not capped as the silver grades at Miraflores are very low.

Block Model

The resource model for Miraflores was constructed with Vulcan™ software using a block model. All of the required information about the deposit is stored in each individual block. This includes estimated characteristics of gold and silver and statistical characteristics such as number of samples used in an estimate, distances to the nearest sample and the number of drill holes used. Geological triangulations were also used to identify the rock type of each block, and these structures also controlled the sub-blocking in Vulcan™ along their boundaries. Geological codes stored in the block model were also used to assign the density within specific geological boundaries.

Drill spacing is highly variable, but the deposit has been drilled on sections with a nominal 25m spacing. Actual drill spacing for mineralized structures ranges from 10m to some 75m

The spacing of the data used in the Mineral Resource estimation is sufficient to establish geological continuity and has been considered in the classifications applied.

Grade Estimation

The Inverse Distanced cubed (ID3) grade estimation methodology was used to estimate gold and silver grades. For the breccia, basalt and saprolite, the variography was modelled to determine appropriate search ellipsoid orientation and search distances, whereas for the 21 veins, the search orientation varied depending on the orientation of the vein.

Density

A total of 2,100 specific gravity measurements were used to define the density of each lithological block in the model.

Mineral Resource

As of 02 April, 2013, MMC estimated a Measured and Indicated Mineral Resource of 72.6mt at a gold and silver grade of 0.78g/t and 1.52g/t respectively using a cut-off grade of 0.27 g/t gold in accordance with NI 43101. The mineral resource was based on 25,884 m of drilling in 73 diamond drill holes and 236 metres of underground channel samples. The mineral resource estimate provided for both an open pit and an underground mining operation.

More recently, MMC were retained by Metminco to produce a mineral resource that is estimated in accordance with the guidelines of the JORC Code (2012 Edition), but which only provided for the exploitation of the Miraflores deposit via an underground mining operation, and hence a higher cut-off grade of 1.2g/t gold.

Determination of Resource Categories and Cut-off Grade

‐ The deposit has been reported at a cut off grade of 1.2 g/t gold, which is considered appropriate taking into consideration forecast operating costs, royalties, gold price and recoveries for the planned underground mining method. The cut-off grade is based on a nominal Au price of US$1,470/oz, metallurgical Au recovery of 91%, 3.2% Royalty, US$32.00/t mining cost, US$15.60/t ore processing cost, and US$3.90/t general and administrative costs. Au price was derived from CMF recommended ore reserve pricing of USD$1,130 + a 30% Resource premium.

Mineral resources are categorized on the basis of distance from samples and the quantity of sample information used in the estimate. This classification includes the following criteria:

  • Measured Resource = At least 3 drill holes within an average distance of 25m;

  • Indicated Resource = At least two drill holes within an average distance of 50m or blocks estimated within the veins in the second estimation pass; and

  • Inferred Resource = all other estimated blocks.

This mineral resource estimate was released to the market on 21 July 2017. Further refinement of the block model included the definition of the breccia types and lithologies within the breccia pipe resulting in the assignment of specific gravity averages for each lithology defined whereas previously the specific gravity results were averaged for the entire breccia. This has resulted in an increase in tonnage, most notably in the inferred category. The inferred grade has also increased substantially from the previous estimate due to the

Page 4 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED

30 May 2017

definition of further blocks on certain of the defined veins within the breccia system. The revised mineral resource estimate is summarized in Tables 1 and 2 below.

Table 1: Mineral Resource Estimate – Miraflores Gold Project (MMC March 2017).

Classification Tonnes
(000's)
Au (g/t) Ag (g/t) Oz Au
(000's)
Oz Ag
(000's)
Measured 2,958 2.98 2.49 283 237
Indicated 6,311 2.74 2.90 557 588
Measured & Indicated 9,269 2.82 2.77 840 826
Inferred 487 2.36 3.64 37 57

Note:

i) Based on a gold cut-off grade of 1.2g/t.

ii) Rounding-off of numbers may result in minor computational errors, which are not deemed to be significant. iii) Refer Appendix A - Table 1 requirement in support of the JORC Code (2012 Edition).

Table 2: Sensitivity of Mineral Resource to varying gold cut-off grades.

Measured and Indicated Mineral Resource (Breccia and Veins) Measured and Indicated Mineral Resource (Breccia and Veins) Measured and Indicated Mineral Resource (Breccia and Veins) Measured and Indicated Mineral Resource (Breccia and Veins)
Cut-off (Au g/t) K Tonnes Au (g/t) Au (Koz) Ag (g/t) Ag (Koz)
0.60 23,584 1.61 1,221 2.13 1,615
0.70 19,095 1.83 1,123 2.27 1,394
0.80 15,968 2.04 1,047 2.40 1,232
0.90 13,663 2.24 984 2.52 1,107
1.00 11,848 2.44 929 2.63 1,002
1.10 10,440 2.63 883 2.72 913
1.20 9,269 2.82 840 2.77 826
1.30 8,414 2.98 806 2.84 768
1.40 7,681 3.13 773 2.90 716
1.50 7,030 3.29 744 2.97 671
Inferred Mineral Resource (Breccia only) Inferred Mineral Resource (Breccia only) Inferred Mineral Resource (Breccia only) Inferred Mineral Resource (Breccia only)
Cut-off (Au g/t) K Tonnes Au (g/t) Au (Koz) Ag (g/t) Ag (Koz)
0.60 1,904 1.12 69 3.22 197
0.70 766 1.82 45 3.06 75
0.80 670 1.98 43 3.18 68
0.90 598 2.12 41 3.39 65
1.00 547 2.22 39 3.49 61
1.10 527 2.27 38 3.51 59
1.20 487 2.36 37 3.64 57
1.30 466 2.41 36 3.72 56
1.40 340 2.80 31 2.64 29
1.50 267 3.17 27 2.49 21

Page 5 of 51

ASX ANNOUNCEMENT METMINCO LIMITED

30 May 2017

The information communicated in this announcement includes inside information for the purposes of Article 7 of Regulation 596/2014.

Mining Methods

The available geotechnical information indicates that a sublevel longhole stoping method with either waste rock backfill or paste backfill would be successful in obtaining a high extraction ratio in the economic portion of the deposit. The veins and mineralized zone between veins will be accessed via a two ramp system and all material will be truck hauled to surface.

Metallurgical Parameters

Miraflores metallurgical test composites were found to be highly amenable to gold recovery by conventional processing methodologies. Test composites contained significant coarse free gold that was amenable to gravity concentration. Processing by a flowsheet that includes gravity concentration followed by flotation of the gravity tailings and cyanide leaching of the flotation concentrate appears to be the best processing alternative and offers the advantage of a smaller cyanidation circuit, which could significantly improve options for tailings disposal.

==> picture [89 x 55] intentionally omitted <==

William Howe Managing Director

Page 6 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED

30 May 2017

For further information, please contact:

METMINCO LIMITED

Stephen Tainton / Phil Killen

Office: +61 (0) 2 9460 1856

NOMINATED ADVISOR AND BROKER

RFC Ambrian

Australia Will Souter / Nathan Forsyth Office: +61 (0) 2 9250 0000

United Kingdom Charlie Cryer Office: +44 (0) 20 3440 6800

JOINT BROKER

SP Angel Corporate Finance LLP (UK) Ewan Leggat Office: +44 (0) 20 3470 0470

PUBLIC RELATIONS Camarco United Kingdom Gordon Poole / Tom Huddart Office: + 44 (0) 20 3757 4997

Competent Person Statement

Metal Mining Consultants Inc.

The information provided in this ASX Release as it relates to Exploration Results and Mineral Resources of the Miraflores Gold Project is based on information compiled by Scott Wilson, President of Metal Mining Consultants Inc. in Colorado, USA. Mr Wilson, a Qualified Person for JORC (2012 Edition) compliant statements, reviewed the technical information presented in this document.

Mr Wilson has sufficient experience that is relevant to the style of mineralisation and type of mineral deposit under consideration, and to the activity which was undertaken, to make the statements found in this report in the form and context in which they appear. Mr Wilson has consented to be named in this announcement and inclusion of information attributed to him in the form and context in which it appears herein.

Mr Wilson is a Certified Professional Geologist in good standing with the American Institute of Professional Geologists; Certificate Number CPG-10965, and a Registered Member in good standing in the Society for Mining, Metallurgy & Exploration; Member Number 4025107RM.

Forward Looking Statement

All statements other than statements of historical fact included in this announcement including, without limitation, statements regarding future plans and objectives of Metminco are forward-looking statements. When used in this announcement, forward-looking statements can be identified by words such as ‘’anticipate”, “believe”, “could”, “estimate”, “expect”, “future”, “intend”, “may”, “opportunity”, “plan”, “potential”, “project”, “seek”, “will” and other similar words that involve risks and uncertainties.

These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, its directors and management of Metminco that could cause Metminco’s actual results to differ materially from the results expressed or anticipated in these statements.

The Company cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Metminco does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by applicable law and stock exchange listing requirements.

Page 7 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

APPENDIX A

JORC Code, 2012 Edition – Table 1 Report

Criteria JORC Code Explanation Commentary
Section 1 Sampling Techniques and Data
Sampling Techniques Nature and quality of sampling (e.g., cut channels, random chips,
or specific specialized 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.
Under INGEOMINAS:Geochemical rock chip sampling of outcrops over the five square km
project area. 96 samples were collected and analyzed for Au, Ag, Cu, Pb, Zn, Mo and As.
Geochemical soil sampling, including ridge-and-spur coverage at 100m sample intervals, over
the entire project area, and the installation of a 24-hectare grid with 50m by 50m sample
coverage over the main Miraflores area. 142 ridge-and-spur and 88 grid-base soil samples
were collected. All were analyzed for Au, Ag and 30 additional elements. Geochemical
channel sampling of 8 underground workings at Miraflores, inclusive of vein and wall rock
materials to evaluate vein-type and disseminated-type mineralization. 61 wall rock and 93
vein-type samples were collected and analyzed for Au and Ag.
Under Kedahda:In total, Kedahda collected 185 rock samples at Miraflores. The majority of
these samples were collected as channel and panel samples in the main AMM adit, referred
to as the La Cruzada tunnel, and in one of the working adits. La Cruzada is a 270m crosscut
oriented at an azimuth of 265°, which cuts many of the known NNW-striking high-grade fault-
veins which are the object of the artisanal mining activities at Miraflores. The La Cruzada
entrance is located on the eastern margin of the Miraflores breccia, and is essentially
developed in a magmatic- hydrothermal breccia along its entire length. La Cruzada is the
largest tunnel transecting the Miraflores breccia.
A total of 73 drill holes have been completed, totalling 25,884 metres, which have been
analysed for Au and Ag, as well as other elements.
Include reference to measures taken to ensure sample
representivity and the appropriate calibration of any measurement
tools orsystems used.
Core sampling intervals have been separated by ltihological units.

Page 8 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary
Section 1 Sampling Techniques and Data
Aspects of the determination of mineralization that are Material to
the Public Report.
SGS del Perú S.A.C. analyzed samples for gold by fire assay (FA) (30g sample) with an AA
finish (code FAA313; detection limits 5 ppb to 5000 ppb). Over limit gold values were
repeated by fire assay with a gravimetric finish (method FAG303) and a lower limit of
detection of 0.02 g/t. Multi-element geochemical analyses were conducted by a multi-acid
(HNO3 and HCl) digestion and ICP-MS for 48 elements (method ICM40B; Ag, Al, As, Ba,
Be
, Bi, Ca, Cd, Co, Cr, Cs, Cu, Fe, Ga, Ge, Hf, In, K, La, Li, Lu, Mg, Mn, Mo, Na,
Nb
, Ni, P, Pb, S, Sb, Sc, Se, Sn, Sr, Ta, Tb, Te, Th, Ti, Tl, U, V, W, Y, Yb, Zn,
Zr*). SGS indicates that the analysis is partial for elements marked * and depends on the
mineralogy. Over limit samples for silver (above 100ppm) and Zn (above 1%) were repeated
by four acid digestions and AAS (method AAS41B).
During the most recent drilling program (November 2012 to March 2013), samples were
prepared by ALS Laboratory in Lima, Peru, who is ISO9001:2008 and ISO 17025 certified,
analyzed samples for gold by fire assay (FA) (30g sample) with an AA finish (code Au-AA23;
detection limits 0.005 ppm to 10 ppm). Over limit gold values were repeated by fire assay
with a gravimetric finish (method Au-GRA21) and a lower limit of detection of 0.05 g/t. Multi-
element geochemical analyses were conducted by a four acid “near-total” digestion (HF-
HNO3-HClO4 acid digestion, HCl leach) and ICP-MS for 48 elements (Method ME-MS61; Ag,
Al, As, Ba, Be, Bi, Ca, Cd, Co, Cr, Cu, Cs, Fe, Ga, Ge, Hf, In, K, La, Li, Mg, Mn, Mo, Na, Nb,
Ni, P, Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr, Ta, Te, Th, Ti, Tl, U, V, W, Y, Zn, Zr). ALS indicates
that the four acid digestions are able to dissolve most minerals; however, although the term
“near-total” is used, depending on the sample matrix, not all of the elements are quantitatively
extracted. Over limit samples for silver (above 100 ppm) and Cu, Ni, Pb, Zn, were repeated
by four-acid digestion and AAS (method AA62).
Core samples and sample rejects are stored at a secure Seafield storage facility in the town
of Quinchía.
In cases where ‘industry standard’ work has been done this would
be relatively simple (e.g., ‘reverse circulation drilling was used to
obtain 1 m samples from which 3 kg was pulverized 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 mineralization types
(e.g., submarine nodules) may warrant disclosure of detailed
information.
Diamond drill core was utilized for the majority of the samples analysed, with half-core
sections having been submitted for preparation and analysis. Sampling intervals of 1 metre
were generally taken.
Sample is logged in the tracking system; sample is weighed, dried and finely crushed to
> 70% passing a 2 mm screen; make a split of up to 250g using a riffle splitter; pulverize split
to > 85% passing a 75 micron (µm) screen.

Page 9 of 51

ASX ANNOUNCEMENT

14 March 2017 METMINCO LIMITED

Criteria JORC Code Explanation Commentary
Section 1 Sampling Techniques and Data
Drilling
Techniques
Drill type (e.g., core, reverse circulation, open-hole hammer, rotary
air blast, auger, Bangka, sonic, etc.) and details (e.g., 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.).
HQ core was drilled to depths of 400m. Core size was changed to NQ for depths greater
than 400m.
Drill Sample Recovery Method of recording and assessing core and chip sample
recoveries and results assessed.
Standard measurements of recovery were taken prior to splitting the drill core and preparation
of the samples. The results showed excellent recovery in general, with selected intervals of
lower recovery due to structures or alteration in the host rocks and mineralization. Recovery
in the drill core averages above 93%, with recoveries in the mineralized veins and breccias
averaging from 95 to 100%.
Measures taken to maximize sample recovery and ensure
representative nature of the samples.
Core-diameter resizing and triple-tube methods were used to improve recovery in those
zones with adverse ground conditions.
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.
There is no noted material bias between areas of lower recovery and higher/lower grade. In
general, grades tend to increase marginally with improved recoveries, indicating that the loss
of core in areas of low recovery is generally commensurate with a decrease in grade. The
percentage of low recovery areas (<75%) only represents some 8% of the total core.
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.
Geological logging has been completed in sufficient enough detail to differentiate the
mineralised lithologies/structures within the deposit.
Geotechnical data has been sourced from a geotechnical data collection effort by SRK (2012)
and the subsequent conduct of a comprehensive geotechnical specific drilling program
consisting of 8 drill holes totalling 2,145 metres.
A geotechnical program was conducted for rock mass characterization which quantified the
range of variation, especially within the vein structures.
Whether logging is qualitative or quantitative in nature. Core (or
costean,channel,etc.) photography.
Core logging of 73 drill holes has been used for qualitative purposes.
The total length and percentage of the relevant intersections
logged.
All Miraflores drill holes have been logged (73 drill holes totalling 25,884 metres).

Page 10 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary
Section 1 Sampling Techniques and Data
Sub-sampling techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all core
taken.
Core was generally sawn using a diamond saw, although a hydraulic splitter was used in
some cases when the diamond saw was inoperative, or to evaluate the possibility of losing
material when using a diamond saw. Duplicate samples of drill core were obtained by cutting
the reference half of the core in half again with the diamond saw, and taking one of the
quarter core samples as the field duplicate sample and leaving the other quarter core for
reference purposes.
If non-core, whether riffled, tube sampled, rotary split, etc. and
whether sampled wet or dry.
Not applicable.
For all sample types, the nature, quality and appropriateness of the
sample preparation technique.
Sample types are appropriate. During the first drill campaign over the period 2010 to
November 2012, samples were prepared by SGS Colombia S.A. in Medellin, and analyzed at
the SGS del Peru S.A.C. laboratory in El Callao, Peru, who is ISO 9001 certified. The sample
preparation procedures were as follows: 1) dry the sample and crush the entire sample to
>95% passing a 2 mm screen; 2) make a 250g split using a riffle splitter; and 3) pulverize the
split to >95% passing a 140 mesh screen in 800 cc chrome steel bowls in a Labtech LM2
vibrating ring mill.
During the latest drilling campaign, November 2012 to March 2013, samples were prepared
by ALS Colombia Ltd., in Medellín and were assayed at the ALS laboratory in Lima, Peru.
The sample preparation procedures were as follows: 1) sample is logged in the tracking
system; 2) sample is weighed, dried and finely crushed to >70% passing a 2 mm (Tyler 9
mesh, US Std. No.10) screen; and 3) a split of up to 250 g is taken and pulverized to >85%
passing a 75 micron (µm) (Tyler 200 mesh, US Std. No. 200) screen.

Page 11 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary
Section 1 Sampling Techniques and Data
Quality control procedures adopted for all sub-sampling stages to
maximize representivity of samples.
Seafield carried out a comprehensive QA/QC program at Miraflores which comprised certified
standard reference materials (CSRM), quartz sand blanks, preparation duplicates (PD) and
field duplicates (FD) in addition to check assays at a third party laboratory. The routine
QA/QC samples were inserted into the sample stream on the basis of every 100 samples.
Within each 100 sample numbers, there are 5 CSRM; 4 blanks, 2 PD samples and 2 FD
samples. Thus every 100 samples contain, on average, 87 unknowns and 13 QA/QC
samples (15%) which agrees with industry best practise guideline.
Control Sample Counts
Control Type
Sample Count
% Insertion Rate
Standards
664
5.6
Blanks
539
4.5
Prep Duplicates
267
2.2
Field duplicates
252
2.1
Pulp Duplicates
1125
9.4
Check samples
513
4.5

Page 12 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary
Section 1 Sampling Techniques and Data
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.
Field duplicates are taken to test the geological homogeneity of the mineralization and the
sample sizes and procedures. Duplicate samples of drill core were obtained by cutting the
reference half of the core in half again with a diamond saw, and taking one of the quarter core
samples as the field duplicate sample, while leaving the other quarter core for reference. This
method may introduce a certain amount of additional variance due to the difference in sample
weights, and is a measure of the geological variability of the mineralization and the sample
size. All samples have been plotted and show a high degree of scatter. The scatter is
interpreted as being attributable to the presence of visible gold, coarse sulfides, the uneven
distribution of mineralization in the core sample (due to the brecciated texture), returning
samples with poor reproducibility. In order to determine an estimation of precision, a
Thompson-Howarth method (T-H uses the Group of 11 sample regression between Grade
and Absolute Differences) and the Relative Absolute Difference (RAD) method have been
used.
This method is used as an indication of the relationship between precision and concentration.
Plots show a low precision for the field duplicates estimated at about 65% at 2.0 ppm Au.
Whether sample sizes are appropriate to the grain size of the
material being sampled.
Sample sizes are generally 1/2 core samples from HQ-diameter core. In selected cases,
larger samples of whole-core or channel samples have been taken for metallurgical analysis.
These sample sizes are appropriate in the context of the nature and grain sizes of the
mineralization at Miraflores.

Page 13 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary
Section 1 Sampling Techniques and Data
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.
SGS del Perú S.A.C. analyzed samples for gold by fire assay (FA) (30g sample) with an AA
finish (code FAA313; detection limits 5 ppb to 5000 ppb). Over limit gold values were
repeated by fire assay with a gravimetric finish (method FAG303) and a lower limit of
detection of 0.02 g/t. Multi-element geochemical analyses were conducted by a multi-acid
(HNO3 and HCl) digestion and ICP-MS for 48 elements (method ICM40B; Ag, Al, As, Ba,
Be
, Bi, Ca, Cd, Co, Cr, Cs, Cu, Fe, Ga, Ge, Hf, In, K, La, Li, Lu, Mg, Mn, Mo, Na,
Nb
, Ni, P, Pb, S, Sb, Sc, Se, Sn, Sr, Ta, Tb, Te, Th, Ti, Tl, U, V, W, Y, Yb, Zn,
Zr*). SGS indicates that the analysis is partial for elements marked * and depends on the
mineralogy. Over limit samples for silver (above 100ppm) and Zn (above 1%) were repeated
by four acid digestions and AAS (method AAS41B).
During the most recent drilling program (November 2012 to March 2013), samples were
prepared by ALS Laboratory in Lima, Peru, who is ISO9001:2008 and ISO 17025 certified,
analyzed samples for gold by fire assay (FA) (30g sample) with an AA finish (code Au-AA23;
detection limits 0.005 ppm to 10 ppm). Over limit gold values were repeated by fire assay
with a gravimetric finish (method Au-GRA21) and a lower limit of detection of 0.05g/t. Multi-
element geochemical analyses were conducted by a four acid “near-total” digestion (HF-
HNO3-HClO4 acid digestion, HCl leach) and ICP-MS for 48 elements (Method ME-MS61; Ag,
Al, As, Ba, Be, Bi, Ca, Cd, Co, Cr, Cu, Cs, Fe, Ga, Ge, Hf, In, K, La, Li, Mg, Mn, Mo, Na, Nb,
Ni, P, Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr, Ta, Te, Th, Ti, Tl, U, V, W, Y, Zn, Zr). ALS indicates
that the four acid digestions are able to dissolve most minerals; however, although the term
“near-total” is used, depending on the sample matrix, not all of the elements are quantitatively
extracted. Over limit samples for silver (above 100 ppm) and Cu, Ni, Pb, Zn, were repeated
by four-acid digestion and AAS (method AA62).
Core samples and sample rejects are stored at a secure Seafield storage facility in the town
of Quinchía.
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.
Not applicable. All analytical work was laboratory based.
Geophysical work was restricted to approximately 750km of magnetic and radiometric
surveys that was generated by Anglo and subsequently analysed by Seafield for use in
exploration targeting.

Page 14 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary
Section 1 Sampling Techniques and Data
Nature of quality control procedures adopted (e.g., standards,
blanks, duplicates, external laboratory checks) and whether
acceptable levels of accuracy (i.e. lack of bias) and precision have
been established.
Routine QA/QC samples are inserted into the sample stream for every batch of 100 samples.
Within each batch of 100 samples, there are 5 CSRM samples, 4 blanks, 2 PD samples, 2 FD
samples and 87 unknowns. The inclusion of 13 QA/QC samples (15%) is consistent with the
best practice industry guidelines. Most of the CSRM samples for gold were purchased from
Ore Research & Exploration Pty Ltd., Australia. The Certificates of Analysis for the CSRM
can be found on the Ore Research & Exploration web site at www.ore.com.au/oreas/reports.
Seven CSRM samples were used, namely Oreas 50c, Oreas 152A, Oreas 52Pb, Oreas
53Pb, Oreas 501, Oreas 16b and a high grade CSRM sample was acquired towards the end
of 2012 to cover those intervals with higher grades. An additional (new) standard sample was
introduced at the end of the year 2012 (CM14) that was acquired from CDN Resource
Laboratories Ltd., Canada.
The results for the standards exhibited a very low percentage of failures (0.5%). Four blank
samples are submitted with every 100 samples taken. The blank used by Seafield is coarse
grained quartz sand purchased in Medellín, Colombia, the results of which yielded a
satisfactory performance for gold over time, with reference a ‘warning’ level placed at 0.025
parts per million (five times limit of detection). Two blanks failed, one of which was re-
assayed from the pulp material, the re-assay results of which returned a blank value. The
second failure was within a very high grade interval and indicates there was weak
contamination. Field duplicates are taken to test the geological homogeneity of the
mineralization and the sample sizes and procedures. Duplicate samples of drill core were
obtained by cutting the reference half of the core in half again with the diamond saw, and
taking one of the quarter core samples as the field duplicate sample, leaving the other quarter
core for reference. All samples show a poor correlation, with a fairly high degree of scatter.
The scatter is interpreted to be a function of the presence of visible gold, coarse sulfides, and
the uneven distribution of mineralization within the breccias.
Preparation of duplicates are made as a check on adequate sample preparation. Two
duplicate sample pulps per 100 samples were routinely prepared at the sample preparation
facility. For the preparation duplicate samples, an empty numbered sample bag was
submitted as part of the normal sample stream. A note inside the bag instructed the sample
preparation facility to prepare a second pulp from a certain sample number. The results of
the preparation duplicate sampling show a similar amount of scatter to the field duplicates.
When compared to the field duplicates the preparation duplicates have a better correlation
coefficient. There is also a trend of slightly higher gold values in the duplicate samples as
shown by a trend line, but this is interpreted to be a random effect caused by the scatter of
values rather than a systematic bias. Again the scatter is interpreted to be due to the
presence of visible gold, coarse sulfides, or the uneven distribution of mineralization in the
breccia zones.

Page 15 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary Commentary Commentary Commentary Commentary Commentary Commentary
Section 1 Sampling Techniques and Data
Verification of sampling and assaying The verification of significant intersections by either independent or
alternative company personnel.
The author collected four quarter split core samples from the samples used in the resource
estimate. One sample was collected to confirm low grade; One sample was collected to
verify a grade between 1.0 and 2.0 Au g/t; Two samples were collected to confirm high
grades greater than 5.1 Au g/t. The low grade and 1.0 to 2.0 g/t assays showed very close
correlation to the original assays. However, the two high grade sample (Samples D-23818
and D-23819) returned much lower results than the original assays. Although the resulting
check assays are lower, this demonstrates the nugget-like nature of the mineral deposit.
Independent Verification Sample Results
Drill Hole
Sample
No.
Depth
Au Grade (g/t)
From
To
Original
Check
Sample
QM_DH_50
D-23723
77.3
79.25
1.435
1.255
QM_DH_50
D-23768
141.75
142.35
0.044
0.048
QM_DH_50
D-23818
214.8
216.8
66.6
8.53
QM_DH_50
D-23819
216.8
218.4
9.19
2.27
Drill Hole Sample
No.
Depth Au Grade (g/t)
From To Original Check
Sample
QM_DH_50
QM_DH_50
QM_DH_50
QM_DH_50
D-23723
D-23768
D-23818
D-23819
77.3
141.75
214.8
216.8
79.25
142.35
216.8
218.4
1.435
0.044
66.6
9.19
1.255
0.048
8.53
2.27
The use of twinned holes. There are no twinned drill holes at Miraflores.
Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols.
Drill hole data for Miraflores is logged in the field and entered and maintained in Excel
spreadsheets by Seafield. Drill hole logs are manually reviewed for discrepancies and
inconsistencies in the sample interval column and the rock code column. Once the drill logs
are cleared they are exported and transferred to the master database, which performs
additional data validation checks. The drill hole database is built on PostgreSQL, an object-
relational database management system. The assay certificates received from the
laboratories are delivered in spreadsheets which can be imported directly into the database
without manipulation. Access permission for entering and editing data in the database is
restricted to the Project Database Administrator. The database is hosted on the Seafield
server in Medellin, which routinely backs up every day for protection from data loss due to
potential drive failures or other technical issues.
Discuss any adjustment to assay data. No adjustments were made to the assay data.

Page 16 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary
Section 1 Sampling Techniques and Data
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.
Down-hole directional surveys were conducted using a reflex instrument. EZ-Shoot
measurements have been taken every 50m for drill holes QM- DH-01 to QM-DH-05; every 9m
for drill holes QM-DH-06 to QM-DH-16, every 50m for drill holes QM-DH-17 and QM-DH-18
and every 30m for drill holes QM-DH-19 to QM-DH-60 and holes from underground stations
UM-DH-01 to UM-DH-04. Drilling related problems impacted negatively on the ability to take
measurements with respect to the periodicity mentioned above.
The drilling carried out by Kedahda and B2Gold did not include deviation measurements.
Initial collar surveys were located using hand-held GPS, whereas final collar locations were
surveyed with a differential GPS.
Specification of the grid system used. UTM Zone 18 Northern Hemisphere: The mineral contract forms a polygon centred at about
423,650 East, 585,900 North.
WGS-84 datum. The mineral contract forms a polygon centred at about 5°17'40"N and
75°41'33"W

Page 17 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary
Section 1 Sampling Techniques and Data
Quality and adequacy of topographic control. Seafield Resources conducted a LiDAR airborne survey of the Quinchía Project area which
includes the Miraflores deposit. The LiDAR data was captured by a Riegl VQ-480 laser
mounted in a Hughes 500 helicopter. LiDAR is recognized as a very adequate method for
quality topographic maps.
Triangulation of LiDAR Surface showing position of Breccia
Data spacing and
distribution
Data spacing for reporting of Exploration Results. Drill spacing is highly variable, but the deposit has been drilled on sections with a nominal
25m spacing. Actual drill spacing for mineralized structures ranges from 10m to some 75m.
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 spacing of the data used in the Mineral Resource estimation is sufficient to establish
geological continuity and has been considered in the classifications applied.

Page 18 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary
Section 1 Sampling Techniques and Data
Whether sample compositing has been applied. Drill hole assay results for Miraflores were composited using 2m down the hole composite
lengths. A total of 13,194 composites were constructed. Compositing commenced at the
collar of the drill hole. Composite intervals less than 0.75m in length were merged with 2m
composites. However, some composites less than 2m do exist as the composites were
constrained/bound by geological boundaries. The merging of composites was done to reduce
the number of short composites used in the resource estimation.
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 orientation of drilling is the best that it can be, considering the topographical challenges
present in the area. Orientations between drill holes and mineralization varies with the
geometry of the mineralized structures and breccias, but is generally designed to be
perpendicular to the mineralized structures within the breccia.
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
Most drill holes are angled holes designed to intercept the sub-vertical breccia body and
associated high-grade veins. The author is of the opinion that the drill holes and channel
samples are appropriate representations of the thicknesses and extent of the mineralization
present, based on the evidence available to date.
Sample
security
The measures taken to ensure sample security. Core samples and sample rejects are stored at a secure Seafield storage facility in the town
of Quinchía. Samples are transported to the preparation facility by company personnel, and
are picked up directly from the storage and logging facility by the laboratory. The chain of
custody from the arrival of samples at the preparation facility is well-documented.
Audits or
reviews
The results of any audits or reviews of sampling techniques and
data.
Seafield maintained a very detailed QA/QC program using reference materials, Certified
Blanks, Field Duplicates, Preparation Duplicates, Pulp Duplicates and Check assay. These
established procedures demonstrated that the data gathered is of sufficient quality and
quantity for grade interpolation techniques.

Page 19 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary
Section 2 Reporting of Exploration Results
Mineral tenement and land tenure
status
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 Miraflores property consists of a single 124-hectare mineral exploitation contract located
in the Republic of Colombia, South America. The Miraflores mineral contract forms a polygon
centred at 5°17'40"N and 75°41'33"W. Geographically, the mineral title is located within the
Municipality of Quinchía, Department of Risaralda, 190km NW of the Colombian capital of
Bogota and 55 km to the north of Pereira, the regional capital city of the Department of
Risaralda.
Contract Number: 010-87MSize (Ha): 124.092Registered Title Holder:Minera Seafield
S.A.S. (100%)Contract Status:Mining Registry No. GBRK-01
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.
On 16 April 2010 Seafield Resources Ltd. of Canada through its Colombian subsidiary Minera
Seafield SAS, signed a sale-purchase with the Asociación de Mineros de Miraflores
(Miraflores Miners Association, AMM) to purchase a 100% interest in the Miraflores property.
As of the date of this report, Seafield had earned a 100% interest in the property.
Exploration done by other parties Acknowledgment and appraisal of exploration by other parties. Modern exploration has been carried out at Miraflores since 1994, and the first diamond
drilling was carried out in 2006. In 2000, the Colombian government's geological division,
INGEOMINAS, with the permission of the Asociación de Mineros de Miraflores, undertook a
series of technical studies at Miraflores, which included geological mapping, geochemical and
geophysical studies, and resource calculations not compliant with NI 43-101(Rodriguez et al.,
2000). In 2005, Sociedad Kedahda S.A. (Kedahda), now called AngloGold Ashanti de
Colombia S.A., a subsidiary of AngloGold Ashanti Ltd., entered into an exploration agreement
with the Asociación de Mineros de Miraflores, and carried out exploration including diamond
drilling over the period 2005 to 2007, completing 1,415m. In 2007 Kedahda optioned the
project to B2Gold Corp who carried out exploration including additional diamond drilling from
2007 to 2009 totalling 2,210m. B2Gold completed a NI 43-101 technical study of the
Miraflores Project in 2007 (Gorham, 2007) as well as an internal mineral resource estimate
that was not published (McKinnon, 2008). This mineral resource estimate does not comply
with NI 43-101 standards and is not described further in this report. On 24 March 2009,
B2Gold advised the Asociación de Mineros de Miraflores that it had decided not to make
further option payments and the property reverted to AMM under the terms of the option
agreement.

Page 20 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary
Section 2 Reporting of Exploration Results
Geology Deposit type, geological setting and style of mineralization. Miraflores is a gold and silver rich, magmatic-hydrothermal breccia pipe, located within a
fertile hypabyssal porphyry cluster, whose genesis is intimately related to the evolution and
cooling of magmatic and hydrothermal fluids emanating from the porphyry cluster's parent
magma chamber. Alteration is dominated by lower temperature phyllic, argillic and propylitic
varieties, forming peripheral to or above the higher temperature potassic core zones
associated with the porphyries themselves. Alteration at Miraflores is strongly propylitic. The
increased values of base and trace metals (Zn, Pb, Sb, As) as seen at Miraflores occur
peripheral to the core porphyry zones containing Au, Cu and Mo.
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:
-
easting and northing of the drill hole collar
-
elevation or Reduced Level (elevation above sea level in
metres) of the drill hole collar
-
dip and azimuth of the hole
-
down hole length and interception depth
-
hole length.
See Appendix S2a and Appendix S2c.
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.
Not applicable.
Data aggregation methods In reporting Exploration Results, weighting averaging techniques,
maximum and/or minimum grade truncations (e.g. cutting of high
grades) and cut-off grades are usually Material and should be
stated.
In reporting Exploration Results, gold grades were cut at 20 g/t before calculating a length
weighted average grade. Cut-off Grade (CoG) was set to 0.2 g/t Au. Silver grades were not
capped.
No more than 6m of internal waste is included in the weighted intervals.
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
ofsuchaggregations should be shown indetail.
Where exploration results are stated, composited grades based on length weighted averages
are used.
The assumptions used for any reporting of metal equivalent values
should be clearly stated.
No metal equivalent values reported.

Page 21 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary
Section 2 Reporting of Exploration Results
Relationship between mineralization widths and
intercept lengths
Relationship between sample length and true thickness of
mineralization (if known; if unknown, this must be stated). These
relationships are particularly important in the reporting of
Exploration Results.
Due to the chaotic nature of the breccia and the multiple orientations of the veins, this
relationship cannot be quantified directly. However, efforts were made to intercept the
mineralization as perpendicular as possible to derive a best estimate of the true thickness of
the mineralization.
If the geometry of the mineralization with respect to the drill hole
angle is known, its nature should be reported.
The Miraflores breccia is sub-vertical and roughly cylindrical with surface dimensions of 250m
by 280m with a known vertical extent of 500 to 600m, but is open at depth, with clear contacts
with the adjacent basalts of the Barroso Formation. The NNW – SSE fracture system
appears to control the formation of the breccia. The main mineralization trends of high-grade
veins vary in strike from 325° to 10° and from 280° to 60°, with a dip of between 70°E and
vertical.
Most of the drill holes are angled such that they intersect the mineralised structures
perpendicular to their strike/dip direction.
Refer diagrams below.

Page 22 of 51

ASX ANNOUNCEMENT METMINCO LIMITED

14 March 2017 METMINCO LIMITED

Criteria JORC Code Explanation Commentary Commentary
Section 2 Reporting of Exploration Results
If the geometry of the mineralization with respect to the drill hole
angle is known, its nature should be reported.
Triangulations of Miraflores Geological
Boundaries
Plan View of Miraflores Drilling with
Breccia Surface Outline
Isometric View of Miraflores Drilling

Page 23 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary
Section 2 Reporting of Exploration Results
If it is not known and only the down hole lengths are reported, there
should be a clear statement to this effect (e.g., ‘down hole length,
true width not known’).
Reporting of significant intercepts includes the statement "True thickness of the mineralization
can vary from 35% to 55% of the interval length reported, considering that the breccia pipe
body and the mineralized faults are sub-vertical."
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 Appendix S2b
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
Refer Appendix S2c.
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.
In 2008 AngloGold Ashanti Colombia S.A. carried out an airborne survey that covered most of
the Seafield Properties in Quinchía, collecting a total of 750km of magnetic and radiometric
data. The analysis of the data contracted by Seafield in 2010 identified numerous trends and
potential faults. Porphyry type deposits such Dosquebradas and Tesorito shows a moderate
to good magnetic response. There is a NE-SW set of lineament trends which may represent
a set of faults.
Four composite samples were constructed to represent the different characteristics of the
deposit: White Breccia, Green Breccia, Basalt, and a channel sample from underground
workings. Metallurgical tests such as Cyanide (CN) Dosage Optimization revealed
concentrations of CN had little effect on the overall recovery. The tests show that the
recoveries for the Green and White Breccias were 85.9% and 89.2% respectively.
Gravity+Flotation testing proved to be the better process for recovery which had recoveries of
around 95% for both Green and White Breccias.
B2Gold used immersion testing of 1,772 samples to determine the densities of the breccia
pipe and material outside the breccia to be 2.73 t/m3and 2.83 t/m3respectively.
Process Mineralogical Consulting Ltd conducted a mineralogy report identifying various
minerals with in the three composites from drill holes.

Page 24 of 51

ASX ANNOUNCEMENT
METMINCO LIMITED
14 March 2017
ASX ANNOUNCEMENT
METMINCO LIMITED
14 March 2017
ASX ANNOUNCEMENT
METMINCO LIMITED
14 March 2017
JORC Code Explanation
Commentary
Section 2 Reporting of Exploration Results
The nature and scale of planned further work (e.g. tests for lateral
extensions or depth extensions or large-scale step-out drilling).
The drilling program conducted in support of the resource estimate for Miraflores is
considered to be adequate, and any further drilling may only have a limited impact on the
estimate. As of the date of this report, MMC has not recommended any further phases of
drilling or work programs.
Diagrams clearly highlighting the areas of possible extensions,
including the main geological interpretations and future drilling
areas, provided this information is not commercially sensitive
The drilling conducted to-date has successfully delineated the geometry of the upper portions
of the breccia pipe. The extent of the mineralization is well known laterally. However, based
on drilling results, the resource is open at depth.
Criteria JORC Code Explanation Commentary
Section 2 Reporting of Exploration Results
Further work The nature and scale of planned further work (e.g. tests for lateral
extensions or depth extensions or large-scale step-out drilling).
The drilling program conducted in support of the resource estimate for Miraflores is
considered to be adequate, and any further drilling may only have a limited impact on the
estimate. As of the date of this report, MMC has not recommended any further phases of
drilling or work programs.
Diagrams clearly highlighting the areas of possible extensions,
including the main geological interpretations and future drilling
areas, provided this information is not commercially sensitive
The drilling conducted to-date has successfully delineated the geometry of the upper portions
of the breccia pipe. The extent of the mineralization is well known laterally. However, based
on drilling results, the resource is open at depth.

Page 25 of 51

14 March 2017 METMINCO LIMITED

ASX ANNOUNCEMENT

Criteria JORC Code Explanation Commentary
Section 3 Estimation and Reporting of Mineral Resources
Database integrity Measures taken to ensure that data has not been corrupted by, for
example, transcription or keying errors, between its initial collection
and its use for Mineral Resource estimation purposes.
Seafield employed a technician whose job was to ensure that the database was error free.
The author routinely verified that all newly entered data was correct by comparing the
database to assay certificates.
Data validation procedures used. The data used in this report by has been verified by:

Visiting the property and confirming the geology and mineralization;

Taking check samples at the property;

Visiting the core and RC chip storage facility and sample cutting facility in Quinchía;

Reviewing core from several holes;

Checking the location of some drill holes in the field; and

Conducting a review of QA/QC protocols and validation of assay certificates relative to
the database.
Site visits Comment on any site visits undertaken by the Competent Person
and the outcome of those visits
The author last visited the site on 23 April 2013 and again in February 2017. Site visits
included reviewing core and comparing notes on the geology of the project. Independent
verification samples were collected. Meetings were held with the key staff working on the
project. The author visited the site four times prior to the April 2013 site visit.
If no site visits have been undertaken indicate why this is the case. Not applicable.
Geological interpretation Confidence in (or conversely, the uncertainty of) the geological
interpretation of the mineral deposit.
The geological model for the hydrothermal breccia pipe considered to be representative of the
data based on a review by the author of all of the gathered technical information, as well as
an underground visit (La Cruzada crosscut).
Nature of the data used and of any assumptions made. Numerous sources of information, both digital and hard copy, were used in the preparation of
this report. The data comprises assay information gathered from drilling as well as geological
interpretations of the deposit. Inverse Distance grade interpolation techniques were used as
the preferred method to establish the quantities and qualities of mineralization. The
resources are based on 25,884m of drilling in 73 diamond drill holes and 236m of
underground channel samples as of 2 April 2013. This includes 3,624m of drilling in 10 holes
carried out by AngloGold Ashanti and B2Gold over the period 2006 to2007.
The effect, if any, of alternative interpretations on Mineral Resource
estimation.
Alternative interpretations using different search distances were evaluated when the geology
of the project was less well known. These methodologies were not dependent on geological
boundaries and hence the effect was to have more tonnes and lower grade. These
interpretations were useful in the understanding of the volume of the Mineral Resource, but
there was no reliance on geological control to mineralization.

Page 26 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary
Section 3 Estimation and Reporting of Mineral Resources
The use of geology in guiding and controlling the Mineral Resource
estimation.
For the Miraflores deposit, geologic shapes were created using Leapfrog™ and Vulcan™,
which assist in the interpretation of geological boundaries from the drill hole database.
Shapes were created for the breccia pipe, basalt, and saprolite rock types in Leapfrog™, and
then converted to Vulcan™ triangulations. The Miraflores deposit also contains 21 veins with
a north-west strike. These veins were modelled creating Vulcan™ triangulations. In
Vulcan™, these triangulations were used to constrain grade estimations appropriately within
each geological boundary.
The factors affecting continuity both of grade and geology. Continuity of grade is primarily controlled by the extent of the breccia body. No post-
mineralization faulting is evident. The breccia body is open at depth.
Dimensions The extent of variability of the Mineral Resource expressed as
length (along strike or otherwise), plan width, and depth below
surface to the upper and lower and lower limits of the Mineral
Resource.
Mineralization at Miraflores is contained within the Miraflores magmatic-hydrothermal breccia
body and in the basalts close to the contact. The Miraflores breccia is a typical breccia-pipe
in that it is sub-vertical, cylindrical, with surface dimensions of 250m by 280m with a known
vertical extent of 500m to 600m, but is open at depth, with clear contacts with the basalts of
the Barroso Formation. The NNW – SSE orientated fracturing system appears to control the
formation of the breccia. Younger sub-vertical (75°E to 90°) NNW-SSE and NW – SE striking
veins that cross cut the breccia are characterized by the development of argillized material
and significant quantities of sulfides (pyrite, chalcopyrite, sphalerite and galena). Some
visible gold has also been observed. The sulfides are present as coarse particles ranging
from 100 to 200µm and greater than 200µm. The persistence of the NNW-SSE structures is
important and is clearly recognized in the exploitation workings of the AMM where high gold
grade mineralization can be followed over a strike distance in excess of 150m and more than
80m in height, with almost no displacement of the structure. Cross cutting structures (veins)
form high gold grade shoots of variable dimensions that can be observed in the AMM
workings.
Estimation and modelling
techniques
The nature and appropriateness of the estimation technique(s)
applied and key assumptions, including treatment of extreme grade
values, domaining, interpolation parameters and maximum
distance of extrapolation from data points. If a computer assisted
estimation method was chosen include a description of computer
software and parameters used.
The modelling for Miraflores was undertaken using Vulcan™ and Leapfrog™ Software. All
exploration sampling has been used in the geological modelling process. For the Miraflores
deposit, geological shapes were created using Leapfrog™ and Vulcan™, which interprets
geological boundaries from the data in the drill hole database. Shapes were created for the
breccia pipe (and associated breccia types), basalt, and saprolite rock types in Leapfrog™,
and then converted to Vulcan™ triangulations. The Miraflores deposit also contains 21 veins,
running in a northwest trend. These veins were modelled creating Vulcan™ triangulations. In
Vulcan™, these triangulations were then used to constrain grade estimations within each
geological boundary. Inverse distanced cubed (ID3) grade estimation methodology was used
to estimate gold and silver grades. For the breccia, basalt and saprolite, variography was
completed to determine the search ellipsoid orientation and search distances.

Page 27 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary
Section 3 Estimation and Reporting of Mineral Resources
The availability of check estimates, previous estimates and/or mine
production records and whether the Mineral Resource estimate
takes appropriate account of such data.
B2Gold completed a NI 43-101 technical study of the Miraflores Project in 2007 (Gorham,
2007), as well as an internal mineral resource estimate that was not published (McKinnon,
2008). Mineral Resource estimates were generated for the project in 2011, 2012 and 2013.
With each successive estimation, the knowledge from the previous estimates was used to
guide the new estimates.
The assumptions made regarding recovery of by-products. Silver is assumed to be a by-product of gold for the purposes of this report. Although silver is
included in the model, it was not used in the CoG calculation, as its contribution to the overall
revenue is minimal. Gravity concentration recovered about 9% to 20% of the silver. Rougher
and cleaner flotation of the silver contained in the gravity tailings resulted in overall
gravity/flotation silver recoveries of 67.5% to 84.5%. Base-line cyanidation tests
demonstrated that 63% to 67% of the silver could be extracted from the cleaner flotation
concentrates resulting in overall silver recoveries ranging from about 48% to 61%. Overall
silver recovery is estimated at about 50%.
Estimation of deleterious elements or other non-grade variables of
economic significance (e.g. sulfur for acid mine drainage
characterization).
Given the apparent low sulfidation of the deposit (<1.03% S), the generation of acidic, metal-
laden leachates is considered to be minimal.
Refer Appendix S3a.

Page 28 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Block Model Framework

Item East North Elevation
Minimum Mine Coordinates
Maximum Mine Coordinates
Number of Blocks
Parent Block Size (Wall Rock) in metres
Parent Block Size (BX, BAS, SAP & Veins) in metres
Sub-Block Size in Metres
422,650
423,400
750
10
5
0.5
584,700
585,450
750
10
5
0.5
300
2,000
1,700
10
5
0.5

Grade Estimation Parameters: Breccia, Basalt & Saprolite

In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.

Estimation Type Inverse Distance Cubed (ID3) Inverse Distance Cubed (ID3) Inverse Distance Cubed (ID3) Inverse Distance Cubed (ID3)
Search Ellipsoid Bearing
-51
Plunge
-51
Dip
-21
Search Distance Major Axis
90
Semi-Major Axis
53
Minor Axis
142
No. of Samples Min Max
3 10
Limit of Samplesper drill hole 3
Grade Estimation Parameters: Veins
Estimation Type Inverse Distance Cubed (ID3)
Search Ellipsoid Bearing
287 to 343
Plunge
0
Dip
-67 to -89
Search Distance Major Axis
50
Semi-Major Axis
50
Minor Axis
20
No. of Samples Min Max
1 5
Limit of Samplesper drill hole Nil

Page 29 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary
Section 3 Estimation and Reporting of Mineral Resources
Any assumptions behind modelling of selective mining units. Mining Selectivity was considered by sub-blocking the block model at the contacts of the
veins within the breccia pipe.
The mineralized veins have an approximate width of 1 to 6m with variable spacing between
veins, averaging approximately 12m. In many areas grade is present outside of veins and will
be considered for mining. Stope planning widths must be sufficiently flexible to mine multiple
veins the same stope. Stope widths will be dependent on the stability of the roof rock and
cost of stabilizing the roof. Without additional specific geotechnical data, it is assumed a
maximum of three veins can be mined simultaneously. The range of anticipated stope widths
are divided into three groups:

1 to 6m wide for single vein only mining;

6 to 12m wide for single vein with HW/FW mill feed included; and

12 to 15m wide for double vein mining or single vein with HW/FW mill feed included.
Ground support requirements can be specified from these spans and estimates of rock
quality.
Any assumptions about correlation between variables. Not applicable.
Discussion of basis for using or not using grade cutting or capping. Basic statistics were compiled for both gold and silver grades in each mineralized lithology
and all 21 veins in the Miraflores deposit. Capping statistics were determined on the basis of
statistical plots such as histograms and log probability plots of all Au composites in the
Breccia. Silver grades were not capped as the silver grades at Miraflores are very low.
Refer Appendix 3b.
Description of how the geological interpretation was used to control
the resource estimates.
The resource estimates were constrained by geological boundaries for the breccia and the
associated (21) vein structures.

Page 30 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary
Section 3 Estimation and Reporting of Mineral Resources
The process of validation, the checking process used, the
comparison of model data to drill hole data, and use of
reconciliation data if available.
The database has been validated and certified that the data is clean and error free. Statistical
and visual checks were performed by MMC of the estimated block model to ensure there
were no discrepancies in the grade estimation routines and to ensure the geometry of
mineralization meets the configuration that the geologists expected for both gold and silver
estimations.
Swath plots were generated to compare grade variations from the block model to the grade
distribution derived from the composites. Plots show that the overall grade distribution has
been modelled sufficiently well and that there are no extreme deviations of the model from the
composite grades.
Moisture Whether the tonnages are estimated on a dry basis or with natural
moisture, and the method of determination of the moisture content
Tonnage are estimated on a dry basis.
Cut-off
parameters
The basis of the adopted cut-off grade(s) or quality parameters
applied
Cut-off grades were estimated at 1.20 g/t Au. This is based on a nominal Au price of
US$1,470/oz, metallurgical Au recovery of 91%, 3.2% Royalty, US$32.00/t mining cost,
US$15.60/t ore processing cost, and US$3.90/t general and administrative costs. Au price
was derived from CMF recommended ore reserve pricing of USD$1,130 + a 30% Resource
premium.
Mining factors or
assumptions
Assumptions made regarding possible mining methods, minimum
mining dimensions and internal (or, if applicable, external) mining
dilution. It is always necessary as part of the process of
determining reasonable prospects for eventual economic extraction
to consider potential mining methods, but the assumptions made
regarding mining methods and parameters when estimating
Mineral Resources may not always be rigorous. Where this is the
case, this should be reported with an explanation of the basis of the
mining assumptions made.
The available geotechnical information indicates that a sublevel longhole stoping method with
either waste rock backfill or paste backfill would be successful in obtaining a high extraction
ratio in the economic portion of the deposit. The veins and mineralized zone between veins
will be accessed via a two ramp system and all material will be truck hauled to surface.
Internal and external dilution was not applied to the resource calculation. It is assumed that
the veins can be mined separately from the breccia.
Metallurgical factors
or assumptions
The basis for assumptions or predictions regarding metallurgical
amenability. It is always necessary as part of the process of
determining reasonable prospects for eventual economic extraction
to consider potential metallurgical methods, but the assumptions
regarding metallurgical treatment processes and parameters made
when reporting Mineral Resources may not always be rigorous.
Where this is the case, this should be reported with an explanation
of the basis of the metallurgical assumptions made.
Miraflores metallurgical test composites were found to be highly amenable to gold recovery
by conventional processing methodologies. Test composites contained significant coarse
free gold that was amenable to gravity concentration. Processing by a flowsheet that
includes gravity concentration followed by flotation of the gravity tailings and cyanide leaching
of the flotation concentrate appears to be the best processing alternative and offers the
advantage of a smaller cyanidation circuit, which could significantly improve options for
tailings disposal.

Page 31 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary
Section 3 Estimation and Reporting of Mineral Resources
Environmental factors or assumptions
Assumptions made regarding possible waste and process residue
disposal options. It is always necessary as part of the process of
determining reasonable prospects for eventual economic extraction
to consider the potential environmental impacts of the mining and
processing operation. While at this stage the determination of
potential environmental impacts, particularly for a greenfields
project, may not always be well advanced, the status of early
consideration of these potential environmental impacts should be
reported. Where these aspects have not been considered this
should be reported with an explanation of the environmental
assumptions made.
Waste rock will primarily be used as embankment material for construction of the flotation
Tailings Storage Facility (TSF) dam embankment with small amounts (2.73 Mt of rockfill)
being used as underground backfill for the stopes. It is assumed that the waste rock can be
graded onsite to formulate the engineered fill for the embankment. All geochemical testing on
waste rock samples completed to-date, confirms that the waste rock is not acid generating
and will not generate ARD. Humidity cell tests are still ongoing, but results to-date show no
signs of ARD. Full geochemistry testing results will be included with the Feasibility Study
evaluations. SRK developed a conceptual design for a 0.44 Mt leached residue tailings
facility located on the ridgeline to the east of and below both the mine and the mill site. The
leached residue impoundment will be a fully double-lined facility consisting of an HDPE liner
underlain by a low-permeability clay liner. Since this facility must be excavated into the
ridgeline, construction must be complete before the mill commences production. Excess
waste material cut from the leached residue TSF in the amount of 1.32 Mm³ (approximately
2.50Mt) will either be used for coffer dam construction upstream of the flotation TSF and/or
stockpiled and reserved for backfill of stopes as the underground mine progresses.
The alternative of using a smaller dry stacked tailings facility is to be investigated, as this will
reduce the size of the TSF and eliminate the need for the emplacement of costly
embankment material. The use of paste backfill as an alternative to waste rock will also
evaluated.
Bulk density Whether assumed or determined. If assumed, the basis for the
assumptions. If determined, the method used, whether wet or dry,
the frequency of the measurements, the nature, size and
representativeness of the samples.
Based on the results of previous work conducted in support of the April 2012 and August
2013 Preliminary Economic Assessments conducted by SRK.

Page 32 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary Commentary Commentary Commentary
Section 3 Estimation and Reporting of Mineral Resources
The bulk density for bulk material must have been measured by
methods that adequately account for void spaces (vugs, porosity,
etc.), moisture and differences between rock and alteration zones
within the deposit.
A total of 2,100 specific gravity measurements were used to define the density of each
lithology block in the model. The breccia pipe has been split into white green and red breccia
and the density for each breccia type determined and applied to the relevant blocks
Rock Types & Corresponding Density Values
Rock Type
No. of Samples
Ave Density
Breccia Pipe and Veins
1,805
2.75
Basalt
233
2.87
Saprolite
18
2.67
Other(dacite, diorite, andesite, fault)
44
2.81
**Rock Type ** No. of Samples Ave Density
Breccia Pipe and Veins 1,805 2.75
Basalt 233 2.87
Saprolite 18 2.67
Other(dacite, diorite, andesite, fault) 44 2.81
Discuss assumptions for bulk density estimates used in the
evaluationprocess of the different materials.
The resource model incorporates different bulk densities for each of the rock types.
Classification The basis for the classification of the Mineral Resources into
varying confidence categories.
Mineral resources are categorized on the basis of distance from samples and the quantity of
sample information used in the estimate. This classification includes the following criteria:
Measured Resource = At least 3 drill holes within an average distance of 25m; Indicated
Resource = At least two drill holes within an average distance of 50m_or_blocks estimated
within the veins in the second estimation pass; and Inferred Resource = all other estimated
blocks.
Whether appropriate account has been taken of all relevant factors
(ie relative confidence in tonnage/grade estimations, reliability of
input data, confidence in continuity of geology and metal values,
quality, quantity and distribution of the data).
The data used in this report has been verified by: visiting the property and confirming the
geology and mineralization; taking check samples at the property; visiting the core and
storage facility and sample cutting facility in Quinchía; reviewing core from several drill holes;
checking the location of some drill holes in the field; and reviewing the QA/QC. The author
concludes that: exploration drilling, sampling, sample preparation, assaying, and density
measurements have been carried out in accordance with best current industry standard
practices and are suitable to support resource estimates. Exploration and drilling programs
are well planned and executed and provide sufficient information for resource estimates and
resource classification. Sampling and assaying includes quality assurance procedures; and
exploration databases are professionally structured and are sufficiently error‐free to support
resource estimates.

Page 33 of 51

14 March 2017

ASX ANNOUNCEMENT

METMINCO LIMITED

Criteria JORC Code Explanation Commentary
Section 3 Estimation and Reporting of Mineral Resources
Whether the result appropriately reflects the Competent Person’s
view of the deposit.
The reported mineral resource includes all of the available information relevant to the project.
Based upon our site visits, correspondence and professional judgment, we believe this is an
accurate assessment of the deposit.
Audits or
reviews
The results of any audits or reviews of Mineral Resource estimates. During 2013, Golder Associates as well as SRK Denver reviewed the estimation
methodologies for Miraflores. In both cases, the results of the audits found that acceptable
standards had been used in the estimation of the mineral resources for the project.
Discussion of relative accuracy/ confidence Where appropriate a statement of the relative accuracy and
confidence level in the Mineral Resource estimate using an
approach or procedure deemed appropriate by the Competent
Person. For example, the application of statistical or geostatistical
procedures to quantify the relative accuracy of the resource within
stated confidence limits, or, if such an approach is not deemed
appropriate, a qualitative discussion of the factors that could affect
the relative accuracy and confidence of the estimate.
A significant mineral resource has been identified at Miraflores. Drill plans were designed to:
(a) improve confidence in the estimate of gold in all resource categories; and (b) to expand
and confirm the extent of the overall known resource. The intention of the current resource
estimate was to use it as a basis for ongoing studies. Assaying, density measurements, and
drill hole surveys have been carried out in accordance with best industry standard practices
and are suitable to support resource estimates. Sampling and assaying includes quality
assurance procedures, including submission of blanks, reference materials, pulp duplicates
and coarse reject duplicates, and the execution of check assays by a second laboratory.
Mineral resources are classified as Measured and Indicated Mineral Resources and as
Inferred Mineral Resources. The Mineral Resources has been estimated in accordance with
the JORC (2012 Edition) guidelines.
The statement should specify whether it relates to global or local
estimates, and, if local, state the relevant tonnages, which should
be relevant to technical and economic evaluation. Documentation
should include assumptions made and the procedures used
Globally, the estimation is biased approximately 3% low compared to de-clustered composite
grades, and the bias fluctuates between +/-25% on a local basis, by vein. This is due to the
minimal data in some veins compared to others, as well as the varying density of data for the
breccia zones. Visually the blocks compare well with the composite grades.
These statements of relative accuracy and confidence of the
estimate should be compared with production data, where
available.
The project is not currently an operating mine, and no historic production data exists that can
corroborate the Mineral Resource statement.

Page 34 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED

14 March 2017

Appendix S2a

Miraflores Drill Holes

HOLE UTM Easting UTM Northing UTM Altitude
(m)
Azimuth
(degrees)
Inclination
(degrees)
Length (m)
QM_DH_01 423218 585097 1368 230 -60 543.5
QM_DH_02 423176 585131 1407 180 -60 345.1
QM_DH_03 423190 585176 1421 235 -50 596
QM_DH_04 423036 585251 1494 235 -50 400.75
QM_DH_05 423021 585295 1509 225 -50 359
QM_DH_06 422973 585185 1547 225 -60 235
QM_DH_07 422975 585189 1547 0 -60 181
QM_DH_08 423034 585136 1491 45 -50 232.6
QM_DH_09 423030 585134 1493 240 -60 349.9
QM_DH_10 423044 585052 1472 235 -50 245.3
QM_DH_11 423127 585033 1434 240 -55 369.7
QM_DH_12 423128 585031 1434 180 -60 275.3
QM_DH_13 423137 585131 1426 263 -52 532.1
QM_DH_14 423255 585072 1364 291 -56 574.1
QM_DH_15 423138 585131 1427 291 -57 509
QM_DH_16 423137 585131 1426 246 -63 620
QM_DH_17 423365 585173 1331 254 -52 620
QM_DH_18 423124 585301 1455 197 -76 506
QM_DH_19 423365 585173 1331 254 -65 534.5
QM_DH_20 423265 584986 1369 260 -48 610
QM_DH_21 423284 584939 1369 307 -62 620.5
QM_DH_22 423265 584986 1369 266 -65 614.5
QM_DH_23 423034 585139 1493 282 -73 619
QM_DH_24 423267 584980 1370 263 -55 620
QM_DH_25 423126 585034 1434 226 -55 421.1
QM_DH_26 422986 585000 1515 270 -58 275
QM_DH_27 422986 585000 1515 230 -50 175
QM_DH_28 423177 584938 1441 230 -45 314.3
QM_DH_29 423295 584840 1404 250 -45 350

Page 35 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED 14 March 2017

HOLE UTM Easting UTM Northing UTM Altitude
(m)
Azimuth
(degrees)
Inclination
(degrees)
Length (m)
QM_DH_30 423283 584935 1370 226 -40 288
QM_DH_31 423283 584935 1370 217 -63 620
QM_DH_32A 423256 585069 1365 240 -45 528.5
QM_DH_33 423233 584954 1408 292 -46 550
QM_DH_34 423223 584954 1408 274 -49 440
QM_DH_35 423055 585179 1474 244 -53 290
QM_DH_36 423118 585198 1453 241 -46 375
QM_DH_37 423122 585300 1454 234 -51 400
QM_DH_38 423246 585001 1370 257 -57 340
QM_DH_39 423008 584969 1494 287 -47 89.3
QM_DH_40 423129 584963 1438 246 -48 313.8
QM_DH_41 423037 584983 1479 247 -47 110
QM_DH_42 423079 584960 1460 254 -43 147
QM_DH_43 423189 584970 1425 263 -45 151.2
QM_DH_44 423047 585003 1477 262.9 -47 105
QM_DH_45 423127 585031 1435 257 -45 250
QM_DH_46 423027 585132 1493 265 -47 141.5
QM_DH_47 423111 585056 1440 257 -50 86
QM_DH_48 423102 584984 1454 252 -43 222
QM_DH_49 423067 585049 1460 252 -47 175
QM_DH_50 423184 585044 1405 262 -60 415.6
QM_DH_51 423040 585198 1484 248 -43 130
QM_DH_52 423176 585133 1408 252 -56 500
QM_DH_53 423034 585250 1492 243 -71 251.5
QM_DH_54 423093 585121 1451 259 -58 267
QM_DH_55 423059 585240 1491 245 -73 423.3
QM_DH_56 423022 585079 1485 256 -49 112.2
QM_DH_57 423123 585202 1453 252 -56 300
QM_DH_58 423063 585235 1490 235 -55 300.5
QM_DH_60 423191 585177 1418 266 -58 350
UM_DH_001 423108 585059 1365 252 -27 203.6
UM_DH_002 423108 585059 1365 252 -45 230

Page 36 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED

14 March 2017

HOLE UTM Easting UTM Northing UTM Altitude
(m)
Azimuth
(degrees)
Inclination
(degrees)
Length (m)
UM_DH_003 423123 585098 1365 254 -26 220
UM_DH_004 423123 585098 1365 255 -50 285
MI_DDH_001* 423,105 585,061 1,364 257.5 -60 238.15
MI_DDH_002* 423,110 585,063 1,364 78.5 -61 224.6
MI_DDH_003* 423,107 585,064 1,364 347.5 -50 340
MI_DDH_004* 423,108 585,056 1,440 360 -90 612
MI_DDH_005** 423,178 585,134 1,407 225 -80 301.1
MI_DDH_006** 423,133 585,192 1,448 225 -70 353.7
MI_DDH_007** 423,052 585,238 1,495 200 -70 376.7
MI_DDH_008** 423,031 585,135 1,492 225 -70 352.05
MI_DDH_009** 423,060 584,992 1,474 45 -85 341.55
MI_DDH_010** 422,987 584,996 1,516 45 -80 485
Total metres
25,884.1

Source: Seafield, 2013

  • Drill holes carried out by Kedahda

  • ** Drill holes carried out by B2Gold

Page 37 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED 14 March 2017

Appendix S2b

Plan and Section Views – Miraflores Block Model

==> picture [477 x 341] intentionally omitted <==

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

Plan View – 1320m RL Section View 584960 Looking North
----- End of picture text -----

Diagrams show the distribution of blocks with gold grades in excess of 1.2g/t gold as they occur within the breccia pipe (shaded area) and the vein structures. The area between the blue line and the yellow line represents basalts that are located adjacent to the breccia.

Page 38 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED 14 March 2017

Appendix S2c

Significant Gold Intercepts in Seafield Drill holes at Miraflores

Dill Hl N Depth(metres) Depth(metres) Interval (metres) Au Grade (g/t)
r oe o. From To
QM-DH-01 70.7 82.9 12.2 0.659
and 139.8 218 78.2 0.475
and 264.5 270.5 6 0.593
and 390.9 402.9 12 0.38
and 425.5 437 11.5 0.451
QM-DH-02 19.15 329.7 310.55 0.369
Incl. 59.2 93.2 34 0.8
QM-DH-03 53.1 502.15 449 1.033
Incl. 231.85 241.85 10 2.868
and 282.55 306.5 23.95 4.666
QM-DH-04 27.55 111.7 84.15 0.461
Incl. 66 105.7 39.7 0.764
and 123.3 201.3 78 0.565
Incl. 127.3 168.3 41 0.943
QM-DH-05 63.5 73.05 11.55 0.531
QM-DH-06 52.5 71.8 19.3 0.298
QM-DH-07 40.5 66.7 26.2 0.41
QM-DH-08 161 163.65 2.65 1.083
QM-DH-09 3.7 258.8 255 0.49
Incl. 3.7 49 45.3 0.561
and 93.1 131 37.9 0.869
Incl. 101 118.7 17.7 1.229
and 149 207 58 0.72
QM-DH-10 1.6 245.3 243.7 0.47
Incl. 1.6 144.4 142.8 0.628
and 160.6 184.7 24.1 0.725
QM-DH-11 0 369.7 369.7 1.003
Incl. 4.2 71.7 67.5 0.508
and 87.55 107.65 20.1 2.195

Page 39 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED 14 March 2017

Dill Hl N Depth(metres) Depth(metres) Interval (metres) Au Grade (g/t)
r oe o. From To
and 251.9 344.95 93.05 2.422
QM-DH-12 0.8 243.2 242.4 0.544
Incl. 0.8 72.6 71.8 1.18
Incl. 2.8 55.1 52.3 1.526
QM-DH-13 11.2 20.15 8.95 0.34
and 48 60 12 0.3
and 64 101.6 37.6 0.43
and 105.3 122.7 17.4 1.71
Incl. 121.2 122.7 1.5 14.05
and 137.9 154.2 16.3 1.43
and 158.2 164.4 6.2 0.62
and 180.3 200.75 20.45 0.85
and 218.75 273.8 55.05 0.83
and 279.8 322.5 42.7 0.64
and 327.35 337.35 10 0.32
and 345.35 371.2 25.85 0.25
QM-DH-14 97.05 115.2 18.15 0.64
and 131.2 208.7 77.5 0.35
and 220.5 295.7 75.2 0.28
and 312.2 332.9 20.7 0.69
and 337 402 65 0.35
and 480.25 493.1 12.85 0.91
and 538.05 547.9 9.85 0.28
QM_DH_15 19.7 39.6 19.9 0.34
and 50.2 312.1 261.9 0.8
Incl. 91.6 99.6 8 1.35
Incl. 183 226.1 43.1 1.45
Incl. 232.1 273.8 41.7 1.35
Incl. 277 303.9 26.9 0.73
and 323.55 350 26.45 0.34
and 374 379.1 5.1 0.86
and 394.55 422 27.45 0.35

Page 40 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED 14 March 2017

Dill Hl N Depth(metres) Depth(metres) Interval (metres) Au Grade (g/t)
r oe o. From To
QM-DH-16 12.9 22.3 9.4 0.6
and 43.65 55.8 12.15 0.31
and 73.8 106 32.2 0.36
and 110 123.5 13.5 2
and 132.7 146.7 14 0.35
and 154.7 173 18.3 0.49
and 175 285.4 110.4 1.31
Incl. 251 277 26 2.11
and 294.6 358.2 63.6 0.75
Incl. 297.4 317.6 20.2 1.21
and 366.2 432.6 66.4 0.69
Incl. 374.2 404 29.8 1.05
and 455.1 478.8 23.7 0.36
and 504.9 546.6 41.7 0.34
and 551.55 561.8 10.25 0.8
QM-DH-17 337.8 343.8 6 0.26
and 446.3 454.3 8 0.21
and 483.5 503.5 20 0.21
and 565 574.5 9.5 0.22
and 581.8 599.8 18 0.29
QM-DH-18 205.1 211.3 6.2 0.28
and 280.8 289.7 8.9 0.56
and 304.9 312.9 8 0.4
QM-DH-19 No Significant Intervals
QM-DH-20 165.4 187.7 22.3 0.31
and 197 311.25 114.25 0.97
and 323.8 336.75 12.95 0.28
and 345 361.3 16.3 0.87
and 367.3 413.4 46.1 0.25
and 421.65 462.3 40.65 0.44
and 468.3 477.1 8.8 0.2
QM-DH-21 247.4 271.4 24 0.27

Page 41 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED 14 March 2017

Dill Hl N Depth(metres) Depth(metres) Interval (metres) Au Grade (g/t)
r oe o. From To
and 312.4 328.7 16.3 0.29
and 353.5 380 26.5 0.33
and 385.75 429.8 44.05 0.33
and 438.9 450.05 11.15 0.22
and 460 537.55 77.55 0.32
and 570.4 591.7 21.3 0.22
QM-DH-22 228.65 234.65 6 0.32
and 268.65 274.65 6 0.32
and 380.5 388.5 8 0.28
and 405.3 419.3 14 0.23
and 550.3 565.6 15.3 0.24
and 584.4 593.3 8.9 0.29
and 595.5 607.5 12 0.26
QM-DH-23 16.15 27.2 11.05 0.75
and 33 200.2 167.2 0.73
and 206.2 241.95 35.75 1.22
and 259.95 388.2 128.25 0.6
Incl. 288.2 322.9 34.7 0.91
and 396.35 491.8 95.45 0.4
QM-DH-24 178.9 346.65 167.75 1.05
including 258.7 302.8 44.1 2.94
and 361.8 368.7 6.9 0.3
and 376.3 417.6 41.3 0.31
and 433.6 445.6 12 0.45
and 465.6 477.6 12 0.35
QM-DH-25 0.7 107.8 107.1 0.52
and 121.95 128.4 6.45 3.02
and 133 294 161 0.78
Incl. 153.1 189.4 36.3 0.95
and 307.45 352.3 44.85 0.5
Incl. 309.45 329.45 20 0.86
and 367.1 391.1 24 0.25

Page 42 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED 14 March 2017

Dill Hl N Depth(metres) Depth(metres) Interval (metres) Au Grade (g/t)
r oe o. From To
QM-DH-26 0.1 32.7 32.6 0.53
and 64.7 74.3 9.6 0.59
QM-DH-27 0 19.9 19.9 0.4
and 31.9 48.5 16.6 0.37
and 134.9 144.9 10 0.61
QM-DH-28 206.9 216.4 9.5 0.31
QM-DH-29 5 26.6 21.6 0.46
and 274.55 281.45 6.9 0.56
QM-DH-30 278.7 288 9.3 1.12
QM-DH-31 221.5 329.4 107.9 0.61
Incl. 278.6 295.1 16.5 1.82
and 352.5 383.6 31.1 0.4
and 399.1 413.3 14.2 0.3
and 417.9 425.9 8 0.34
and 433.3 456.4 23.1 0.4
and 470 481.6 11.6 0.44
and 531.4 539.5 8.1 0.47
QM-DH-32A 0 13.3 13.3 0.46
and 105.1 135.8 30.7 0.71
and 141.8 153.4 11.6 0.57
and 159.4 354.3 194.9 1.57
Incl. 201 222.15 21.15 1.66
Incl. 255.7 281.7 26 3.86
Incl. 343.1 349.1 6 11.04
and 368.3 417 48.7 0.62
and 422.7 439.2 16.5 0.4
and 461.9 471.9 10 0.42
and 501.5 508.6 7.1 0.25
and 516.5 528.5 12 0.4
QM-DH-33 31.9 39.2 7.3 0.2
and 104.3 177.9 73.6 0.64
and 185.9 300.6 114.7 1.89

Page 43 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED 14 March 2017

Dill Hl N Depth(metres) Depth(metres) Interval (metres) Au Grade (g/t)
r oe o. From To
Incl. 233 243.6 10.6 11.97
and 322.6 345.6 23 0.74
and 351.6 383.2 31.6 1.4
and 388.9 407 18.1 0.56
and 461.1 468.5 7.4 0.38
QM-DH-34 109 122 13 0.38
and 129.5 145.1 15.6 0.32
and 149.1 178 28.9 0.95
and 183 344.15 161.15 3.23
Incl. 225 285 60 5.48
and 360.9 376.9 16 3.89
and 383.75 406.6 22.85 2.11
and 412.6 440 27.4 2.09
QM-DH-35 0 24.5 24.5 0.38
and 60.4 87.5 27.1 0.66
and 92.2 108.6 16.4 0.54
and 118.5 144.8 26.3 0.56
and 150.2 177 26.8 0.44
and 191.6 207.6 16 0.35
and 219.6 239.6 20 0.35
and 265.6 275.6 10 0.39
QM-DH-36 22 163 141 0.89
Incl. 67.75 72.1 4.35 7.93
and 173 238.8 65.8 1.01
Incl. 194.8 220.1 25.3 1.63
and 244.8 265.1 20.3 0.71
and 312.8 326.8 14 3.20
QM-DH-37 101 107 6 0.90
and 180 193.85 13.85 0.35
and 198.4 234.8 36.4 0.81
and 238.8 391.4 152.6 1.03
Incl. 281.6 293.6 12 3.66

Page 44 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED 14 March 2017

Dill Hl N Depth(metres) Depth(metres) Interval (metres) Au Grade (g/t)
r oe o. From To
Incl. 341.6 351.2 9.6 1.54
QM-DH-38 139 148.3 9.3 0.32
and 153.6 167.6 14 1.64
and 179.3 293 113.7 1.63
Incl. 219.2 250.95 31.75 3.78
and 299 318.6 19.6 0.98
and 327.5 338.1 10.6 0.37
QM-DH-39 6.6 68.75 62.15 1.18
Incl. 31.2 36.7 5.5 2.59
Incl. 63.9 68.75 4.85 5.28
QM-DH-40 38 66.35 28.35 0.54
and 69.45 180 110.55 0.78
Incl. 73.45 107.2 33.75 1.55
and 197.8 261.3 63.5 0.41
QM-DH-41 11.1 41.4 30.3 1.35
and 44.6 51 6.4 0.87
and 85.7 108.7 23 3.51
QM-DH-42 19.1 37.3 18.2 0.77
and 42.15 58.15 16 0.29
and 83.85 117 33.15 0.88
and 122.55 147 24.45 0.93
QM-DH-43 12.9 16.9 4 1.15
and 48.3 56.5 8.2 0.39
and 90.4 140.25 49.85 0.75
QM-DH-44 45 105 60 0.69
Incl. 74.4 87.4 13 1.03
QM-DH-45 0.7 121 120.3 0.47
Incl. 83.2 110 26.8 0.89
and 127.25 179.15 51.9 0.35
and 202.25 239.4 37.15 0.45
QM-DH-46 3 51.4 48.4 0.52
and 61.4 122 60.6 0.50

Page 45 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED 14 March 2017

Dill Hl N Depth(metres) Depth(metres) Interval (metres) Au Grade (g/t)
r oe o. From To
and 127.8 138.8 11 0.46
QM-DH-47 28.7 86 57.3 1.29
Incl. 48.4 63.9 15.5 2.63
QM-DH-48 3 20.1 17.1 0.66
and 30.75 86.3 55.55 0.82
and 106.3 131.7 25.4 1.24
and 141.7 182.85 41.15 0.67
and 189.4 212.4 23 0.77
QM-DH-49 31.3 72 40.7 0.62
and 77.15 102.85 25.7 0.36
and 122.4 137.15 14.75 0.69
and 159.4 175 15.6 0.46
QM-DH-50 61.75 141.75 80 0.61
and 146 384.15 238.15 2.06
Incl. 182.8 242 59.2 5.72
Incl. 247.5 273.95 26.45 2.08
Incl. 292.3 310.3 18 1.85
and 396.15 412.15 16 0.68
QM-DH-51 1.9 121.00 119.1 1.34
Incl. 10.6 31.5 20.9 4.68
Incl. 73.1 102.65 29.55 0.75
QM-DH-52 13.4 27.35 13.95 0.41
and 80.9 137.8 56.9 0.36
and 140.9 181.1 40.2 1.03
and 183.6 254.65 71.05 1.07
and 256.25 430.3 174.05 1.15
Incl. 258.25 318.2 59.95 2.33
and 480.3 491.7 11.4 0.41
QM-DH-53 124.80 214.9 90.1 0.85
Incl. 158.20 165.70 7.5 3.03
and 224.70 251.50 26.8 0.60
QM-DH-54 34.5 101.9 67.4 0.91

Page 46 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED 14 March 2017

Dill Hl N Depth(metres) Depth(metres) Interval (metres) Au Grade (g/t)
r oe o. From To
and 107.3 267 159.7 1.66
Incl. 123.9 144.9 21 4.46
Incl. 161.85 189.1 27.25 3.41
Incl. 230.2 242.2 12 1.42
QM-DH-55 136 199.7 63.7 0.66
and 221.2 256.8 35.6 0.40
and 261 284.3 23.3 2.08
and 312.5 324.5 12 0.45
and 340.5 364 23.5 0.32
and 401.9 419.4 17.5 0.35
QM-DH-56 0.0 54.65 54.65 0.70
and 71.70 102.2 30.5 0.40
QM-DH-57 25.55 34.4 8.85 0.47
and 40.1 59.25 19.15 0.35
and 67.3 100.4 33.1 0.57
and 106.05 300 193.95 0.94
Incl. 146.6 162.6 16 1.22
Incl. 186.15 206.3 20.15 1.89
Incl. 219.6 231 11.4 3.17
Incl. 253.6 275.6 22 1.02
QM-DH-58 43.3 103.8 60.5 0.50
and 113.7 258.25 144.55 0.96
Incl. 137.4 142.1 4.7 3.57
Incl. 155.4 197.7 42.3 1.42
Incl. 238 251.6 13.6 1.65
QM-DH-60 136.9 173.7 36.8 0.28
and 181.7 318.20 136.5 0.53
Incl. 219.20 245.6 26.4 0.83
Incl. 255.6 286.15 30.55 0.73
and 324.80 350.0 25.2 0.49
UM-DH-001 0 58.2 58.2 0.55
and 61.8 84.1 22.3 1.02

Page 47 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED 14 March 2017

Dill Hl N Depth(metres) Depth(metres) Interval (metres) Au Grade (g/t)
r oe o. From To
and 98.50 106.10 7.6 1.04
and 116 128.4 12.4 0.43
and 151.4 159.9 8.5 1.09
and 167.6 203.6 36 0.75
UM-DH-002 1.8 19.9 18.1 0.79
and 35.3 149.6 114.3 1.33
Incl. 63.1 73.3 10.2 4.02
Incl. 82.8 102.7 19.9 2.97
and 155.85 201.8 45.95 0.59
and 207.8 227.8 20 0.45
UM-DH-003 11.25 91 79.75 0.73
Incl. 56 72.1 16.1 1.67
and 162.75 198.85 36.1 0.94
UM-DH-004 6 21.6 15.6 0.53
and 29.6 141 111.4 1.52
Incl. 113.6 137 23.4 3.91
and 149 167 18 1.76
and 199.6 214.3 14.7 0.53
and 224 270.8 46.8 1.21
Incl. 231.4 252.2 20.8 2.39

Source: Seafield, 2013

  • CoG 0.2 g/t Au. Intervals above 0.3 g/t Au listed in the table above.

  • No more than 6.0 m of internal waste is included in the intervals.

  • Gold grades cut to 20 g/t before calculation of length-weighted average.

  • True thickness of the mineralization can vary from 35% to 55% of the intervals length reported, considering that the breccia pipe body and the mineralized faults are sub-vertical.

Page 48 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED 14 March 2017

Appendix S3a

Phase 1 Multi-Element Head Analyses of each metallurgical test composite

Composite Sample ID
Analytical
Item Units Green Breccia
White Breccia
Basalt Comp Argillized
Method
Comp Ave Comp Ave Ave Comp Ave
Au
S
Ag
Ag
Al
As
ppm
%
ppm
ppm
%
ppm
0.59
0.58
1.87
1.80
6.86
67
0.38
0.83
2.67
2.40
6.80
72
0.80
0.59
2.00
2.20
7.03
52
21.45
3.99
76.2
-
6.59
192
AU-1AT-AA
S-LECO
Ag-AR-TR
30-4A-TR
30-4A-TR
30-4A-TR
Ba
Bi
Ca
Cd
Co
Cr
Cu
ppm
ppm
%
ppm
ppm
ppm
ppm
445
7.33
7.11
3.47
34
331
146
455
11.50
7.13
13.93
35
334
257
106
<2
7.58
12.73
38
363
217
672
10
2.5
248.5
30
299
3961
304A-TR
30-4A-TR
30-4A-TR
30-4A-TR
30-4A-TR
30-4A-TR
30-4A-TR
Fe
Fe
K
La
Mg
Mn
Mo
%
%
%
ppm
%
ppm
ppm
6.37
6.63
1.39
<10
4.22
2003
<1
6.43
6.79
1.22
<10
4.19
1818
<1
7.01
7.57
0.65
<10
4.37
1700
<1
6.86
7.30
3.48
<10
1.67
1101
<1
30-4A-TR
Fe-4A-OR-ICP
30-4A-TR
30-4A-TR
30-4A-TR
30-4A-TR
30-4A-TR
Na
Ni
P
Pb
Sb
Sc
Sr
%
ppm
ppm
ppm
ppm
ppm
ppm
0.80
115
352
184
<5
40
202
0.90
120
325
361
<5
39
219
0.94
110
264
228
<5
44
126
0.15
77
343
14667
22.00
27
177
30-4A-TR
30-4A-TR
30-4A-TR
30-4A-TR
30-4A-TR
30-4A-TR
30-4A-TR
Ti
Tl
V
W
Zn
Zr
%
ppm
ppm
ppm
ppm
ppm
0.44
<10
241
<10
437
28
0.42
<10
238
13.00
1231
24
0.48
<10
263
15.33
1153
27
0.36
<10
172
258
21067
31
30-4A-TR
30-4A-TR
30-4A-TR
30-4A-TR
30-4A-TR
30-4A-TR

Source: Inspectorate – 2012

Page 49 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED 14 March 2017

Phase 2 Multi-Element Head Analyses of metallurgical test composite

Item Au
g/t(1)
Ag
g/t(2)
Fe % Cu % Pb % Zn % S
total
%
S
sulfide
%
C org
%
As
ppm
Sb
ppm
Hg
ppm
OP White
Breccia
0.76 2.30 6.13 0.020 0.023 0.170 0.94 0.92 0.15 60 12 0.14
OP Green
Breccia
1.65 1.33 5.63 0.011 0.015 0.040 1.03 1.01 0.14 83 14 0.26
UG White
Breccia
1.71 1.50 5.82 0.030 0.024 0.082 0.82 0.76 0.11 55 <5 0.30

Source: Inspectorate, 2013

  • (1) Average of 6 replicate assays

  • (2) Average of triplicate assays

Page 50 of 51

ASX ANNOUNCEMENT

METMINCO LIMITED 14 March 2017

Appendix S3b

Composite Capping Values for Au and Ag

Rock Type Block
Model Code
Au Cap
(ppm)
Ag Cap
(ppm)
Au Cap - Breccia
Breccia
Basalt
Saprolite
Vein
Vein
Vein
Vein
Vein
Vein
Vein
Vein
Vein
Vein
Vein
Vein
Vein
Vein
Vein
Vein
Vein
Vein
Vein
Vein
2
3
4
110
120
140
200
220
230
240
280
800
805
810
815
820
825
830
835
840
845
850
880
45
No Cap
No Cap
9
4
5
No Cap
10
9.6
No Cap
4.6
24
5.2
No Cap
No Cap
No Cap
17
No Cap
2.5
No Cap
No Cap
2.8
12
No Cap
No Cap
No Cap
No Cap
No Cap
No Cap
No Cap
No Cap
No Cap
No Cap
No Cap
No Cap
No Cap
No Cap
No Cap
No Cap
No Cap
No Cap
No Cap
No Cap
No Cap
No Cap
No Cap
No Cap
Vein 890 No Cap

Page 51 of 51