PATERSON RESOURCES LTD — Capital/Financing Update 2013

Sep 11, 2013

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ASX ANNOUNCEMENT FOR IMMEDIATE RELEASE

12[th] September 2013

DRILLING TO COMMENCE ON BURRAGA TAILINGS

Elysium Resources Limited (“Elysium”) (ASX:EYM) is pleased to announce that, Burraga Copper Limited (“Burraga”) is commencing a drilling programme over the Lloyd’s Mine tailings. The path to early production potential being embarked upon by Burraga is one of several key elements that attracted Elysium to recently announce that it intends to make an off-market takeover bid for Burraga. The pre-feasibility study (“PFS”) completed by Burraga during late 2011 showed that a small scale production route was economically viable within a relatively short period and which could produce a level of cash-flow for the exploration required to realize the full base and precious metal potential that Elysium believes exists on Burraga’s tenements.

The drilling programme is intended to:

• Define the basement of the deepest part of the tailings dump

• Upgrade the current JORC Inferred Resource below existing drilling

• Source final samples to determine metallurgical response

• Produce a reserve level confidence for potential first year of production

Previous auger sampling was conducted in 2009 on a systematic grid with the maximum drill depths of 9m being able to define the basement of the tailings on the peripheries but failed to reach ultimate depths to basement at the core of the tailings. The quoted JORC compliant Inferred and Indicated Resources (Table #1) total 234,000t @ 1.2% Cu. Historic records and auger drilling was used for the estimate (Figure #1) which falls short of the 350,000t of tailings that were reported from historical production. The drilling is designed to add confidence to the Inferred component of the resource and fully define the tonnages that remain at the Lloyd’s tailings site; this will firm up the first 12 months of anticipated ore feed for the potential production. The ensuing 12-40 months of production as defined in the PFS is to be sourced from the slag dumps and then from the commencement of open pit operations on the remnant mineralisation at the surface of Lloyd’s.

The drilling will also source a further sample for metallurgical testing from the deepest profile in the tailings. The first tailings dumped in the late 19[th] century were likely to be more oxidised ores from the surface of Lloyd’s which could show lower recoveries than higher up in the tailings dump. The two samples recently tested are taken from the first 9m in the tailings with copper recoveries averaging 67.3%; this is somewhat lower than the 83.0% reported from a sample tested in 1969[1] .

1 Weir, Amdel Flotation Testing of Burraga Mine Dumps Report CME 2957-69, May 1969.

Elysium Resources Limited ABN 45 115 593 005 Suite 705, 3 Spring Street, Sydney NSW 2000 PO Box H238, Australia Square NSW 1215 Phone: +61 2 9247 7744 Fax: +61 2 9247 7244 Email: info@elysiumresources.com.au Web: www.elysiumresources.com.au

Cash-flows in the PFS have been modelled on the 67% recovery, with plant optimisation likely to see recoveries in excesses of 70%.

Land access permissions and regulatory clearances have been granted with the drill rig expected to arrive this week. The program is anticipated to entail 5-6 drill-holes not expected to exceed 20m in depth. Baring excessive drill rig breakdowns or encountering of old metal within the dump, the program should be completed within two weeks. Sampling, assaying and resource estimation is anticipated to be completed in the ensuing 4-6 weeks.

The first three seasons of baseline environmental data has now been completed, this will allow the environmental impact statement (EIS) to proceed. Feasibility level plant costing, detailed design and EIS completion is anticipated to run concurrently with development permitting.

By Deposit	Category Tonnes(Kt) Cu(%) Au(gpt) Zn(%) Ag (gpt)	Category Tonnes(Kt) Cu(%) Au(gpt) Zn(%) Ag (gpt)	Category Tonnes(Kt) Cu(%) Au(gpt) Zn(%) Ag (gpt)	Category Tonnes(Kt) Cu(%) Au(gpt) Zn(%) Ag (gpt)	Category Tonnes(Kt) Cu(%) Au(gpt) Zn(%) Ag (gpt)	Category Tonnes(Kt) Cu(%) Au(gpt) Zn(%) Ag (gpt)
Lloyd's (Tailings)	Measured Indicated Inferred	125 109	1.2 1.2	0.3 0.3	0.2 0.2	10.0 9.7
	Total	234	1.2	0.3	0.2	9.8

Table #1. JORC Resource (no cut-off grade applied).

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Table #2. Auger locations and average down-hole grades

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Figure #1. Schematic NW looking section developed from historical records, surface mapping and auger drilling (RLT series holes). The plan view inset shows modelled depths and location of the section.

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Figure #2. Tailings dump situated near Lloyd’s Mine adit. Photograph looking NW.

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For further information please contact:

Elysium Resources Limited

Mark Ohlsson Company Secretary 0400 801 814 Email: markohlsson@elysiumresources.com.au

Burraga Copper Limited Michael Beith Chief Financial Officer 02 9252 4450 Email: michaelbeith@burragacopper.com.au

For and on behalf of the Board of Directors

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Mark Ohlsson, Company Secretary, Elysium Resources Limited

The information in this announcement that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore reserves is based on information reviewed or compiled by Neb Zurkic BAppSc(Geol), MSc(Min & Energy Economics), a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and a Registered Professional Geoscientist with the Australian Institute of Geoscientists. Mr. Zurkic is employed by Zurkic Mining Consultants Pty Ltd. Mr. Zurkic has sufficient experience that is relevant to the styles of mineralisation and types of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Mr. Zurkic consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. Zurkic Mining Consultants Pty Ltd, which is owned and controlled by Mr. Zurkic, owns shares in Elysium Resources Limited and shares and options in Burraga Copper Limited and provides consulting services as required to both companies.

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JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation Commentary
Sampling techniques	 Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Hand Auger utilizing a 70mm diameter regular and sand auger head
	 Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Lineal meter measured down hole for all auger holes from surface. DGPS surveyed EL surface.
	 Aspects of the determination of mineralisation that are Material to the Public Report. Fire Assay gold and ICP analysis. In addition Copper ore grade analysis and Copper sequential leaching analysis was undertaken.
	 In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. Hand auger drilling was used to obtain 1m sample from which a 2.5 -3.5kg sample was pulverized to produce a 50g charge for fire assay (Au_AA22), and a 4 acid digest for a 6 element ICP-AES finish (ME-ICP61). Copper ore grade analysis (Cu_OG62) by aqua regia digestion with a ICP-AES finish was undertaken as well as a full copper sequential leaching analysis by means of citric, sulfuric, cyanide and total acid leach (Cu-PH06).
Drilling techniques	 Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc). Hand auger vertical holes.
Drill sample recovery	 Method of recording and assessing core and chip sample recoveries and results assessed. Geological and geotechnical logging
	 Measures taken to maximise sample Careful recovery of full clean meter without contamination of overburden or falling

Criteria	JORC Code explanation Commentary
	recovery and ensure representative nature of the samples. material.
	 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. No relationship has been observed between sample recovery and grade. No sample bias has occurred.
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. Geologically logged, predominantly for levels of oxidation as this is considered key to the metallurgical recovery.
	 Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. Qualitative.
	 The total length and percentage of the relevant intersections logged. 100%
Sub- sampling techniques and sample preparation	 If core, whether cut or sawn and whetherquarter, half or all core taken. Not applicable.
	 If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. Non-core sand auger tube sampled. Dry sample recovery.
	 For all sample types, the nature, quality and appropriateness of the samplepreparation technique. High quality and appropriateness of sample preparation technique
	 Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Consistent 1m sampling and decimeter basement measurement to establish accurate volumetric calculation
	 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. Yes, appropriate measures taken to ensure in-situ material collected.
	 Whether sample sizes are appropriate to the grain size of the material being sampled. Yes, sample sizes appropriate to the grain size of the material being sampled
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. ALS appropriate total techniques for material and mineralization being sampled. Includes fire assay gold (Au-AA22), ICP-AES (ME- ICP61) for multi element analysis and copper ore grade analysis (CU-OG62). A total copper sequential leaching analysis also undertaken (Cu-PKG06).

Criteria	JORC Code explanation	Commentary
	 For geophysical tools, spectrometers,	Not applicable.
	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.
	 Nature of quality control procedures	No internal standards, blanks or duplicates
	adopted (eg standards, blanks,	used. External laboratory checks as
	duplicates, external laboratory	appropriate.
	checks) and whether acceptable
	levels of accuracy (ie lack of bias)
	andprecision have been established.
Verification	 The verification of significant	Not applicable.
of sampling	intersections by either independent or
and	alternative company personnel.
assaying	 The use of twinned holes.	Density of drilling permits twin hole
		comparison
	 Documentation of primary data, data	Yes, verification by independent consultants.
	entry procedures, data verification,
	data storage (physical and electronic)
	protocols.
	 Discuss any adjustment to assay
	data.
Location of	 Accuracy and quality of surveys used	Independent quantity surveyors and
data points	to locate drill holes (collar and down- hole surveys), trenches, mine	differential GPS pick up of all mine workings, drill holes and geographic features.
	workings and other locations used in
	Mineral Resource estimation.
	 Specification of the grid system used.	AMG84 (zone 55)
	 Quality and adequacy of topographic	Site specific topographic survey using
	control.	differential GPS (+/- 20mm),spot height
		verification and digitized 3D computer
		modelling
Data	 Data spacing for reporting of	Holes were located for best spread and
spacing and	Exploration Results.	coverage to enable estimates. Approximately 10 x 20m grid.
distribution	 Whether the data spacing and	Historical drilling spacing was sufficient for
	distribution is sufficient to establish	Indicated resource estimation to depth of
	the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve	drilling and Inferred estimation directly below drilling. Planned drilling program designed to upgrade Inferred estimates to Indicated.
	estimation procedure(s) and
	classifications applied.
	 Whether sample compositing has	Compositingonlyapplied to basement

Criteria	JORC Code explanation	Commentary
	been applied.	samples where meter interval not met,
		otherwise assay intervals at 1m
Orientation	 Whether the orientation of sampling	Not applicable.
of data in	achieves unbiased sampling of
relation to	possible structures and the extent to
geological	which this is known, considering the
structure	deposit type.
	 If the relationship between the drilling	Not applicable.
	orientation and the orientation of key
	mineralised structures is considered
	to have introduced a sampling bias,
	this should be assessed and reported
	if material.
Sample	 The measures taken to ensure	Planned drilling will maintain reference
security	sample security.	samples in Company’s Oberon warehouse facility
Audits or	 The results of any audits or reviews of	Not undertaken at this stage.
reviews	sampling techniques and data.

Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral	 Type, reference name/number, location	EL6463 owned 100% by BC Exploration
tenement	and ownership including agreements or	Pty Ltd
and land	material issues with third parties such
tenure	as joint ventures, partnerships,
status	overriding royalties, native title
	interests, historical sites, wilderness or
	national park and environmental
	settings.
	 The security of the tenure held at the	Tenure is current and in good standing
	time of reporting along with any known
	impediments to obtaining a licence to
	operate in the area.
Exploration	 Acknowledgment and appraisal of	Historic work undertaken by Dominion
done by other parties	exploration by other parties.	Mining, Renison, CRA Exploration, Newmont and Republic Gold which drilled 21 auger holes and completed accurate topographic survey of the tailings dump.
		Work undertaken by Republic was of a high
		standard but financial standings of the
		company at the time could not support the
		development of the project and was on-
		sold.
Geology	 Deposit type, geological setting and	Tailings dumped from processing during
	style of mineralisation.	late 1800’s.

Criteria	JORC Code explanation	Commentary
Drill hole Information	 A summary of all information material to the understanding of the exploration results including a tabulation of the	Refer main part of announcement, Table #2.
	following information for all Material drill
	holes:
	o easting and northing of the drill hole
	collar
	o elevation or RL (Reduced Level –
	elevation above sea level in metres)
	of the drill hole collar
	o dip and azimuth of the hole
	o down hole length and interception
	depth
	o hole length.
	 If the exclusion of this information is	Not applicable
	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.
Data	 In reporting Exploration Results,	Uncut.
aggregatio	weighting averaging techniques,
n methods	maximum and/or minimum grade
	truncations (eg cutting of high grades)
	and cut-off grades are usually Material
	and should be stated.
	 Where aggregate intercepts	Not relevant at this time.
	incorporate short lengths of high grade
	results and longer lengths of low grade
	results, the procedure used for such
	aggregation should be stated and some
	typical examples of such aggregations
	should be shown in detail.
	 The assumptions used for any	None used.
	reporting of metal equivalent values
	should be clearly stated.
Relationshi	 These relationships are particularly	Not applicable.
p between mineralisati on widths and intercept lengths	important in the reporting of Exploration Results.  If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.  If it is not known and only the down hole lengths are reported, there should	Down hole length, drilling is undertaken to test homogeneity of tailings dump.
	be a clear statement to this effect (eg
	‘down hole length, true width not

Criteria	JORC Code explanation	Commentary
	known’).
Diagrams	 Appropriate maps and sections (with	Included in report
	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.
Balanced	 Where comprehensive reporting of all	Representative reporting is appropriate as
reporting	Exploration Results is not practicable, representative reporting of both low	ore grade throughout the tailings dump is relatively consistent.
	and high grades and/or widths should
	be practiced to avoid misleading
	reporting of Exploration Results.
Other	 Other exploration data, if meaningful	Two samples from separate profiles within
substantive	and material, should be reported	the tailings were assessed for metallurgical
exploration data	including (but not limited to): geological observations; geophysical survey results; geochemical survey results;	response at AMDEL laboratories.
	bulk samples – size and method of
	treatment; metallurgical test results;
	bulk density, groundwater, geotechnical
	and rock characteristics; potential
	deleterious or contaminating
	substances.
Further	 The nature and scale of planned further	Further basement delineation of tailings
work	work (eg tests for lateral extensions or	dump by mechanical auger drilling to
	depth extensions or large-scale step- out drilling).	enable deepest part of dam to be reached. Both assay and metallurgical data will be collected.
	 Diagrams clearly highlighting the areas	All future work is commercially sensitive
	of possible extensions, including the	and will not be released to the market until
	main geological interpretations and	results are available.
	future drilling areas, provided this
	information is not commercially
	sensitive.
Section 3	Estimation and Reporting of Mineral Resources
Criteria	JORC Code explanation	Commentary
Database	 Measures taken to ensure that data has	Data was received electronically from the
integrity	not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimationpurposes.	assay laboratory, this data was cross- checked by the Company against logged information all of which was passed on by the previous operators in good order.
	 Data validation procedures used.	Visual checks against submission sheets,
		logs and then spatially prior to resource

Criteria	JORC Code explanation Commentary
	estimation.
Site visits	 Comment on any site visits undertaken by the Competent Person and the outcome of those visits. The Competent Person visits site regularly.
	 If no site visits have been undertaken indicate why this is the case. Not applicable.
Geological interpretati on	 Confidence in (or conversely, the uncertainty of ) the geological interpretation of the mineral deposit. Historical mine dumping sequence replaces in-situ geological continuity.
	 Nature of the data used and of any assumptions made. No assumptions made, data is regular assay and metallurgical data.
	 The effect, if any, of alternative interpretations on Mineral Resource estimation. Historical dump sequence allows for degrees of interpretation inaccuracy and unknown amounts of tailings removed due to such occurrences as surface run-off.
	 The use of geology in guiding and controlling Mineral Resource estimation. Dump sequence replaces geology for control with basement definition critical to ultimate tonnage determinations.
	 The factors affecting continuity both of grade and geology. Dump sequence and variable oxidation tested for metallurgical response. Spatial variability tested by regular drilling grid.
Dimensions	 The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource. Tailings dump measures approximately 120 x 120m in lateral expanse with anticipated depths not exceeding 20m. Tailings were dumped on the side of a hill and previous drilling has not fully defined depths at the deepest parts.
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 estimate is contained within the surveyed surface and the interpreted basement contact of the natural hill slope. Samples are composited to 2m down-hole lengths. Inverse distance weighting (exponent 2) is considered appropriate given the distribution of the data and removal of geological continuity. Interpolation and modeling is computer based using MineSight®software.
	 The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data. Estimates are lower than back calculated estimates based on historical production records. Drilling has been planned to investigate the shortfall.
	 The assumptions made regarding recovery of by-products. By-products are gold and silver both of which are estimated and metallurgical recoveries are based on laboratory scale

Criteria	JORC Code explanation	Commentary
		testwork.
	 Estimation of deleterious elements or	Acid mine drainage not done to date. Will
	other non-grade variables of economic	need to be considered during feasibility
	significance (eg sulphur for acid mine drainage characterisation).	work. Sulpher, Arsenic, Zinc and Lead estimates have been carried out to assess preliminary potential penalties for
		concentrate sales.
	 In the case of block model interpolation,	Block size is 10 x 10 x 2.5m (LxWxD)
	the block size in relation to the average	which is less than ½ the drill spacing and
	sample spacing and the search employed.	roughly 1 composite length by vertical profile.
	 Any assumptions behind modelling of	The metal distribution is relatively
	selective mining units.	homogeneous as expected from
		previously treated ore. No selection is
		assumed for any potential treatment.
	 Any assumptions about correlation	No assumptions.
	between variables.
	 Description of how the geological	Dump sequence influenced search
	interpretation was used to control the	direction.
	resource estimates.
	 Discussion of basis for using or not using	Grade distribution relatively homogeneous
	grade cutting or capping.	as expected from previously treated ore.
		Statistical tests did not suggest outliers
		and spatial support exists for all data.
		Compositing of 1m samples further
		smoothed original data.
	 The process of validation, the checking	De-clustered average drill data checked
	process used, the comparison of model	against estimated grades at zero cut-off.
	data to drill hole data, and use of	Visual checks.
	reconciliation data if available.
Moisture	 Whether the tonnages are estimated on	Tones have been estimated on a dry
	a dry basis or with natural moisture, and	basis.
	the method of determination of the
	moisture content.
Cut-off	 The basis of the adopted cut-off grade(s)	The entire tailings dataset is considered
parameters	or quality parameters applied.	above what would be perceivably economic. No cut-grade applied.
Mining	 Assumptions made regarding possible	Conventional top-down mining is being
factors or	mining methods, minimum mining	considered with 2.5m bench heights.
assumption s	dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of	Internal dilution should be minimal, external dilution should be kept to a minimum as visual identification is
	determining reasonable prospects for	possible between loose tailings sand and
	eventual economic extraction to consider	hard in-situ rock.
	potential mining methods, but the

Criteria	JORC Code explanation Commentary
	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.
Metallurgic al factors or assumption s	 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. One historical sample has been metallurgically tested in 1969 which yielded 83% recovery for copper using conventional flotation technology. Two samples were tested in 2011 yielding an average recovery of 67%. The difference between the earlier results to the 2011 result is assumed to be oxidation of the sulphide minerals.
Environme n-tal factors or assumption s	 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. Environmental consultants R.W. Corkery & Co. P/L have set up baseline data collection protocols in anticipation of progression to mining. Three seasons of this data has now been collected. The tailings dump is currently located on the side of a hill and not contained in a modern and controlled tailings facility. PF studies have outlined locations for new tailings facilities which should be a dramatic improvement on the current scenario.
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. Assumed based on unconsolidated sand containing heavier copper sulphide minerals estimated at 5%.
	 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. The assumption of consolidated sand accounts for voids.

Criteria	JORC Code explanation Commentary
	 Discuss assumptions for bulk density estimates used in the evaluation process of the different materials. The material is considered to be of one type.
Classificati on	 The basis for the classification of the Mineral Resources into varying confidence categories. The basis for classification is where drill results were completed the category was deemed Indicated and directly below this the category was deemed Inferred. No Measured category was assigned at the time as the metallurgical recovery results were not available.
	 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). Appropriate account has been taken of relevant factors.
	 Whether the result appropriately reflects the Competent Person’s view of the deposit. Yes appropriate.
Audits or reviews	 The results of any audits or reviews of Mineral Resource estimates. A PFS completed during 2011 provides a tailings resource estimate based on historical production which is not a direct audit of the estimate but provides a framework that suggests the estimate is reasonable.
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 PFS completed during 2011 provides a tailings resource estimate based on historical production suggesting that the resource estimate is conservative in terms of tonnage and within acceptable grade expectations.
	 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 theprocedures used. Estimate is local, however economic assessments to date suggest all tailings material will be processed and therefore no selective mining is envisaged.

Criteria	JORC Code explanation	Commentary
	 These statements of relative accuracy	Compare favorably with previous
	and confidence of the estimate should be	production.
	compared with production data, where
	available.

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