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Resolute Mining Limited — Capital/Financing Update 2014
Jun 23, 2014
10548_rns_2014-06-23_63e2ad25-fd53-4c69-965b-932dff43337f.pdf
Capital/Financing Update
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01
ASX ANNOUNCEMENT
24 June 2014
High Grade Drill Results Support Future Reserve Upgrade at Syama Gold Mine in Mali
Highlights
- Further broad high grade mineralisation intersected in deep drilling at Syama including 19m @ 4.70g/t Au from 389m and 39m @ 3.51g/t Au from 454m
- Most intercepts have average grades well above the 1.8g/t Au cut-off grade established in the Underground Prefeasibility Study (PFS) for reserves
- Drilling at Syama is 35% complete with results confirming the ore body continuously extends at depth and indicating a potential for significant upgrade in underground reserves
- 16,000m drilling campaign planned to continue through 2014 followed by Underground Feasibility Study to commence in 2015
Resolute Mining Limited (ASX:RSG, "Resolute" or the "Company" ) is pleased to announce further high grade results from the its deep diamond drilling program focussed on development of an underground operation at the Syama Gold Mine in Mali.
The current program commenced in January 2014 in response to positive results from an independent Underground PFS completed by Snowden Mining Industry Consultants ("Snowden") and reported by the Company on 28 March 2014.
As part of the Underground PFS, Snowden advised that reserve grades for mineralisation beneath the open pit were potentially under-estimated compared with the typical grade profile in the open pit due to insufficient drilling. The Company elected to commence drilling at an early stage to both infill and extend the resource base, further improving the underground project economics.
Significant results from a further seven holes include;
- 16m @ 2.36 g/t Au (from 433m) in SYDD398
- 16m @ 3.44 g/t Au (from 465m) in SYDD389
- 19m @ 4.70 g/t Au (from 389m) in SYDD390
- 13m @ 6.01 g/t Au (from 427m) in SYDD391
- 3m @ 24.28 g/t Au (from 325m) in SYDD395
- 21m @ 2.13 g/t Au (from 503m) in SYDD395
- 10m @ 2.94 g/t Au (from 409m) in SYDD396


- 14m @ 3.50 g/t Au (from 426m) in SYDD396 02
- 39m @ 3.51 g/t Au (from 454m) in SYDD396
- 11m @ 3.58 g/t Au (from 390m) in SYDD397
Note: Intersections are reported as down hole length and not true width. See JORC Table 1 for the relevant JORC Code 2012 disclosures including Section 1 "Sampling Techniques and Data" and Section 2 "Reporting of Exploration Results". Details of the significant drilling intercepts have been provided in Table 1 and in Figures 1, 2, 3, 4, 5 and 6 which show sections and a location plan of the reported drill holes.
The Underground PFS confirmed that sub level caving (SLC) provided a reduced cost profile and superior ore delivery compared to other more selective mining methods. These early drilling results have confirmed that the Syama ore body extends at depth as a broad continuous zone of economic mineralisation that is suitable for SLC.
During FY2015 the Company plans to complete the balance of the 16,000m diamond drilling campaign that will infill and extend the current underground resource a further 60m deeper to the -200mRL. On completion of this campaign an independent Underground Feasibility Study will be conducted with a view to upgrading the project reserves.
Concurrent with this drill campaign, other work will include geotechnical and structural evaluations, identification of the optimal portal location and identification of sites for key underground infrastructure (ventilation, escape ways, pumping requirements). Completing this work at an early stage will support the smooth transition from open pit to underground mining in the near future. The excellent results to date confirms Syama as a long life project that will transition from open pit mining to a significant underground operation.
Resolute Chief Executive Officer, Peter Sullivan was extremely pleased with the deep drilling results at Syama. "This is early days in the drill program with less than half of the proposed strike length completed and the results thus far indicate it should lead to a significant upgrade in the underground reserves," Mr Sullivan said.
PETER SULLIVAN Chief Executive Officer
About Resolute:
Resolute is an unhedged gold miner with three operating mines in Africa and Australia. The Company is one of the largest gold producers by volume listed on the ASX. Resolute's flagship Syama project in Mali is on track for an increase in production to 270,000oz of gold a year following an approved expansion to be undertaken through FY2016. At its Ravenswood mine in Queensland Resolute is investigating a number of opportunities to add value by increasing gold production and lowering operating costs. The Company controls an extensive footprint along the highly prospective Syama Shear and Greenstone Belts in Mali and Cote d'Ivoire. Resolute has also identified a number of highly promising exploration targets at its Ravenswood operations and holds a number of exploration projects in Tanzania surrounding it's now completed Golden Pride mine.

Table 1 Significant Drillhole Intercepts 03
| Hole_ID | North(WGS) | East(WGS) | RL(m) | Dip | Azi(WGS) | EOH(m) | From(m) | To(m) | Width(m) | Au(g/t) |
|---|---|---|---|---|---|---|---|---|---|---|
| SYDD389 | 1194114 | 819919 | 338 | -70 | 98 | 570.0 | 319 | 322 | 3 | 4.49 |
| 373 | 381 | 8 | 2.67 | |||||||
| 392 | 401 | 9 | 2.02 | |||||||
| 429 | 435 | 6 | 1.49 | |||||||
| 465 | 481 | 16 | 3.44 | |||||||
| 530 | 533 | 3 | 1.09 | |||||||
| SYDD390 | 1194172 | 819930 | 336 | -65 | 98 | 533.6 | 132 | 135 | 3 | 1.84 |
| 378 | 385 | 7 | 1.41 | |||||||
| 389 | 408 | 19 | 4.70 | |||||||
| 426 | 438 | 12 | 1.18 | |||||||
| 461 | 464 | 3 | 2.59 | |||||||
| 469 | 477 | 8 | 1.70 | |||||||
| SYRD391 | 1194173 | 819928 | 336 | -75 | 98 | 600.8 | 180 | 186 | 6 | 5.13 |
| 311 | 320 | 9 | 2.94 | |||||||
| 427 | 440 | 13 | 6.01 | |||||||
| 497 | 501 | 4 | 1.41 | |||||||
| 520 | 526 | 6 | 2.08 | |||||||
| 530 | 534 | 4 | 1.32 | |||||||
| SYDD395 | 1194211 | 819944 | 336 | -75 | 98 | 591.7 | 317 | 320 | 3 | 1.75 |
| 325 | 328 | 3 | 24.28 | |||||||
| 434 | 438 | 4 | 1.46 | |||||||
| 479 | 483 | 4 | 1.09 | |||||||
| 503 | 524 | 21 | 2.13 | |||||||
| 532 | 535 | 3 | 3.26 | |||||||
| 561 | 566 | 5 | 2.38 | |||||||
| 578 | 581 | 3 | 1.36 | |||||||
| SYRD396 | 1194211 | 819942 | 336 | -68 | 98 | 558.0 | 409 | 419 | 10 | 2.94 |
| 426 | 440 | 14 | 3.50 | |||||||
| 454 | 493 | 39 | 3.51 | |||||||
| 511 | 515 | 4 | 2.31 | |||||||
| SYDD397 | 1194260 | 819955 | 336 | -65 | 100 | 546.5 | 214 | 219 | 5 | 1.04 |
| 390 | 401 | 11 | 3.58 | |||||||
| 405 | 418 | 13 | 1.29 | |||||||
| 423 | 444 | 21 | 2.58 | |||||||
| 516 | 520 | 4 | 3.16 | |||||||
| SYDD398 | 1194308 | 819969 | 336 | -73 | 100 | 581.0 | 218 | 223 | 5 | 1.04 |
| Hole_ID | North(WGS) | East(WGS) | RL(m) | Dip | Azi(WGS) | EOH(m) | From(m) | To(m) | Width(m) | Au(g/t) | 04 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 433 | 449 | 16 | 2.36 | ||||||||
| 455 | 461 | 6 | 0.90 | ||||||||
| 465 | 504 | 39 | 2.17 | ||||||||
| 518 | 521 | 3 | 1.04 |
Notes to Accompany Table 1:
- Grid coordinates are WGS84 Zone 29 North
- Holes are HQ and NQ diamond core sampled every 1m by cutting the core in half to provide a 2-4kg sample
- Cut-off grade for reporting of intercepts is >1g/t Au with a maximum of 3m consecutive internal dilution included within the intercept; only intercepts >=3m are reported
- No top cut of individual assays prior to length weighted compositing of the reported intercept has been applied
- Samples are analysed for gold by Au-AA25 method which is a 30g fire assays fusion with AAS instrument finish
- Given that the angle of the drill holes is approximately 70° from horizontal and the ore zone is 60° from horizontal the reported intercepts are slightly larger than the true width of the ore zones
- All other drill holes depicted on accompanying sections and plans are from previous years and significant results previously reported under JORC 2004 guidelines
COMPETENT PERSONS STATEMENT
The information in this report that relates to the Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Mr Richard Bray who is a Registered Professional Geologist with the Australian Institute of Geoscientists and Mr Andrew Goode, a member of The Australian Institute of Mining and Metallurgy. Mr Richard Bray and Mr Andrew Goode both have more than 5 years' experience relevant to the styles of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person, as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Richard Bray and Mr Andrew Goode are full time employees of Resolute Mining Limited Group and each hold equity securities in the Company. They have consented to the inclusion of the matters in this report based on their information in the form and context in which it appears. This information was prepared and first disclosed under the JORC Code 2004. Except where noted, it has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

05
Figure 1 Drillhole Location Plan



Figure 2 - Section 22950m Nth
Resolute Mining Limited
4th Floor, The BGC Centre 28 The Esplanade Perth, Western Australia 6000 ACN 097 088 689 Telephone: +61 8 9261 6100Facsimile: +61 8 9322 7597 E-mail: [email protected]


Figure 3 - Section 23000m Nth
Resolute Mining Limited
4th Floor, The BGC Centre28 The Esplanade Perth, Western Australia 6000 ACN 097 088 689 Telephone: +61 8 9261 6100Facsimile: +61 8 9322 7597 [email protected] E-mail:


Figure 4 - Section 23050m Nth
Resolute Mining Limited
4th Floor, The BGC Centre 28 The Esplanade Perth, Western Australia 6000 ACN 097 088 689 Telephone: +61 8 9261 6100 Facsimile: +61 8 9322 7597 E-mail: [email protected]


Figure 5 - Section 23100m Nth
Resolute Mining Limited
4th Floor, The BGC Centre 28 The Esplanade Perth, Western Australia 6000 ACN 097 088 689 Telephone: +61 8 9261 6100 Facsimile: +61 8 9322 7597 [email protected] E-mail:


Figure 6 - Section 23150m Nth
Resolute Mining Limited
4th Floor, The BGC Centre28 The Esplanade Perth, Western Australia 6000 ACN 097 088 689 Telephone: +61 8 9261 6100Facsimile: +61 8 9322 7597 [email protected] E-mail:

SYAMA GOLD MINE MALI
JORC Code, 2012 Edition – Table 1 report template
Section 1 Sampling Techniques and Data
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Samplingtechniques | •Nature and quality of sampling (e.g.cut channels,random chips, or specific specialised industry standardmeasurement tools appropriate to the minerals underinvestigation, such as down hole gamma sondes, orhandheld XRF instruments, etc.). These examplesshould notbe taken as limiting the broad meaning ofsampling.•Include reference to measures taken to ensure samplerepresentivity and the appropriate calibration of anymeasurement tools or systems used.•Aspects of the determination of mineralisation that areMaterial to the Public Report.•In cases where 'industry standard' work has been donethis would be relatively simple (e.g.'reverse circulationdrilling was used to obtain 1 m samples from which 3kg was pulverised to produce a 30 g charge for fireassay'). In other cases more explanation may berequired, such as where there is coarse gold that hasinherent sampling problems. Unusual commodities ormineralisation types (e.g.submarine nodules) maywarrant disclosure of detailed information. | Mineral resource estimate based on data collected from reverse circulation (RC) and diamond core (DD) drillholes.RC 1m intervals are sampled via a cyclone and three tier splitter, to obtain a 2-4kg sample, which is sent tothe laboratory for pulverising,to provide a 30g charge for analysis.Diamond core issampled at 1m intervals and cut in half, to provide a 2-4kg sample, which is sent to thelaboratory for crushing, splitting and pulverising, to provide a 30g charge for analysis.Sampling and sample preparation protocols are industry standard and are deemed appropriate by theCompetent Person. |
| Drilling techniques | •Drill type (e.g.core, reverse circulation, open-holehammer, 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.). | Drill types used include RC and diamond core of HQ and NQ sizes.Drill core is oriented at 3m down hole intervals using spear method. |
| Drill samplerecovery | •Method of recording and assessing core and chipsample recoveries and results assessed.•Measures taken to maximise sample recovery andensure representative nature of the samples.•Whether a relationship exists between sample recoveryand grade and whether sample bias may have | Diamond core interval recoveries are measured and logged. RC recoveries are not measured and no issueswere identified that would cause a preferential loss or gain or sample bias.Appropriate measures are taken to maximise sample recovery and ensure representative nature of thesamples. |

| occurred due to preferential loss/gain of fine/coarsematerial. | ||
|---|---|---|
| Logging | •Whether core and chip samples have been geologicallyand geotechnically logged to a level of detail to supportappropriate Mineral Resource estimation, miningstudies and metallurgical studies.•Whether logging is qualitative or quantitative in nature.Core (or costean, channel, etc.) photography.•The total length and percentage of the relevantintersections logged. | RC and DD drill holes are geologically logged for colour, grainsize, lithology, minerals and alteration. RC drillholes are logged on 1m intervals and DD drill holes are logged on geologically domained intervals.Geotechnical and structure orientation data are measured and logged for diamond core intervals.Diamond core is photographed (wet and dry); RC chip trays are collected for records and are photographed.Diamond core and RC chips are loggedonto paper records and / or into Excel spread sheets, then validatedand imported into the digital drill hole database.Holes are logged in their entirety (100%). |
| Sub-samplingtechniques andsamplepreparation | •If core, whether cut or sawn and whether quarter, halfor all core taken.•If non-core, whether riffled, tube sampled, rotary split,etc.and whether sampled wet or dry.•For all sample types, the nature, quality andappropriateness of the sample preparation technique.•Quality control procedures adopted for all sub-samplingstages to maximise representivity of samples.•Measures taken to ensure that the sampling isrepresentative of the in situ material collected, includingfor instance results for field duplicate/second-halfsampling.•Whether sample sizes are appropriate to the grain sizeof the material being sampled. | RC intervals are riffle split (dry) to obtain a 2-4kg sample, which are sent to the laboratory for pulverising. Wetsamples are thoroughly dried prior to riffle splitting.Diamond core issampled at 1m intervals and cut in half to obtain a 2-4kg sample which is sent to thelaboratory for crushing, splitting and pulverising.RC and DD samples are submitted to ALS Bamako, SGS Morila and SGS Syama laboratories for samplepreparation andanalysis. Sample preparation includes oven drying, crushing to 10mm and splitting (coreonly), pulverising to 85% passing 75 microns. These are deemed to be the appropriate to the material beingsampled.Field duplicates (RC) are collected every 1:20 samples at the same time using the same method as the parentsample. Field duplicates (DD) are split in the lab after crushing.Sampling, sample preparation and quality control protocols are industry standard and all attempts are made toensure an unbiasedrepresentative sample is collected. The methods applied in this process are deemedappropriate by the Competent Person. |
| Quality of assaydata andlaboratory tests | •The nature, quality and appropriateness of theassaying and laboratory procedures used and whetherthe technique is considered partial or total.•For geophysical tools, spectrometers, handheld XRFinstruments, etc., the parameters used in determiningthe analysis including instrument make and model,reading times, calibrations factors applied andtheirderivation, etc.•Nature of quality control procedures adopted (e.g.standards, blanks, duplicates, external laboratorychecks) and whether acceptable levels of accuracy (i.e.lack of bias) and precision have been established. | RC and DD samples are analysed for gold by ALS Bamako Au-AA25 method, or SGS FAA303 method, whichis a 30g fire assay fusion with AAS instrument finish. The analytical method is appropriate for the style ofmineralisation.No geophysical tools were used to determine elemental concentrations used in resource estimations.Quality control (QC) procedures include the use of certified standards and blanks (1:20), non-certified sandblanks (1:20), field duplicates (RC) (1:20).Umpire pulp analysis of 2-5% of pulps is performed by a second laboratory, at the end of a drill program, toverify the results from the primary laboratory.Laboratory quality control data, including laboratory standards, blanks, duplicates, repeats and grind sizeresults are also captured into the digital database and analysed for accuracy and precision.Analysis of the QC sample assay results indicates that an acceptable level of accuracy and precision hasbeen achieved. |

| • | The verification of significant intersections by either | Verification of significant intersections hasbeen completedby company personnel and the competent person. | |
|---|---|---|---|
| • | independent or alternative company personnel.The use of twinned holes. | No drill holes within the resource were twinned. | |
| Verification ofsampling andassaying | •• | Documentation of primary data, data entry procedures,data verification, data storage (physical and electronic)protocols.Discuss any adjustment to assay data. | Drill holes are logged onto paper templates or Excel templates with lookup codes, validated and thencompiled into a relational SQL 2008 database using DataShed data management software. The datamanagement software has a variety of verification protocols which are used to validatethe data entry. TheDataShed drill holedatabase is backed up on a daily basis to the head office server. |
| Assay result files are reported by the laboratory in CSV format and are imported into the SQL databasewithout adjustment or modification. | |||
| Location of datapoints | • | Accuracy and quality of surveys used to locate drillholes (collar and down-hole surveys), trenches, mineworkings and other locations used in Mineral Resourceestimation.Specification of the grid system used.Quality and adequacy of topographic control. | Collar coordinates are picked up in UTM (WGS84) by staff surveyors using an RTK DGPS with an expectedaccuracy of +/-0.05m; elevations are height above EGM96 geoid. |
| •• | Down hole surveys are collected every 30-50m using Reflex magnetic instruments including EZTRAC,FLEXIT, single shot and multi shot tools. A time-dependent declination is applied to the magnetic readings todetermine UTM azimuth. | ||
| Coordinates and azimuth are reported in UTM WGS84 Zone 29 North. | |||
| Coordinates are translated to local mine grid where appropriate. | |||
| Data spacing anddistribution | •• | Data spacing for reporting of Exploration Results.Whether the data spacing and distribution is sufficient | Drill hole spacing issufficient to demonstrate geological and grade continuity appropriate for the MineralResource and the classifications applied under the 2012 JORC Code. |
| to establish the degree of geological and gradecontinuity appropriate for the Mineral Resource andOre Reserve estimation procedure(s) and | The appropriateness of the drill spacing is reviewed by the geological technical team, both on site and headoffice. This is also reviewed by the Competent Person. | ||
| • | classifications applied.Whether sample compositing has been applied. | RC and diamond samples are collected on 1m intervals; no sample compositing is applied during sampling. | |
| • | Whether the orientation of sampling achieves unbiased | Holes are drilled predominantly perpendicular to mineralised domains where possible. | |
| Orientation of datain relation togeologicalstructure | • | sampling of possible structures and the extent to whichthis is known, considering the deposit type.If the relationship between the drilling orientation andthe orientation of key mineralised structures isconsidered to have introduced a sampling bias, thisshould be assessed and reported if material. | No orientation based sampling bias has been identified in the data. |
| Sample security | • | The measures taken to ensure sample security. | RC and diamond samples are collected from the drill site and stored on site, then securely dispatched to thelaboratories. |
| Audits or reviews | • | The results of any audits or reviews of samplingtechniques and data. | External audits of procedures indicate protocols are within industry standards. |

Section 2 Reporting of Exploration Results
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Mineral tenementand land tenurestatus | •Type, reference name/number, location andownership including agreements or materialissues with third parties such as jointventures, partnerships, overriding royalties,native title interests, historical sites,wilderness or national park andenvironmental settings.•The security of the tenure held at the time ofreporting along with any known impedimentsto obtaining a licence to operate in the area. | Drilling is conducted within the Malian Exploitation Concession Permit PE—008/93 which coversan area of 200.6 Km2Resolute Mining Limited has an 80% interest in the Syama project and the Exploitation PermitPE--008/93, on which it is based, through its Malian subsidiary, Sociêtêdes Mines de Syama SA(SOMISY). The Malian Government holds a free carried 20% interest in SOMISY.The Permit is held in good standing. Malian mining law provides that all mineral resources areadministered by DNGM (Direction Nationale de la Géologie et des Mines) or National Directorateof Geology and Mines under the Ministry of Mines, Energy and Hydrology. |
| Exploration done byother parties | •Acknowledgment and appraisal of explorationby other parties. | The Syama deposit was originally discovered by a regional geochemical survey undertaken bythe Direction National de Géologie et des Mines (DNGM) with assistance from the UnitedNations Development Program (UNDP) in 1985. There had also been a long history of artisanalactivities on the hill where an outcropping chert horizon originally marked the present dayposition of the open pit.BHP during 1987-1996 sampled pits, trenches, auger, RC and diamond drill holes across Syamaprospects.Randgold Resources Ltd during 1996-2000 sampled pits, trenches, auger, RAB, RC anddiamond drill holes across Syama prospects. |
| Geology | •Deposit type, geological setting and style ofmineralisation. | The Syama Project is found on the northern margin of the Achaean-Proterozoic Leo Shieldwhich forms the southern half of the West African Craton. The project area straddles theboundary between the Kadiana–Madinani terrain and the Kadiolo terrain. The Kadiana-Madinaniterrain is dominated by greywackes and a narrow belt of interbedded basalt and argillite. TheKadiolo terrain comprises polymictic conglomerate and sandstone that were sourced from theKadiana-Madinani terrain and deposited in a late-to syntectonic basin.Prospects are centred on the NNE striking, west dipping, Syama-Bananso Fault Zone andBirimian volcano-sedimentary units of the Syama Formation. The major commodity being soughtis gold. |

| •A summary of all information material to theunderstanding of the exploration results | All information including easting, northing, elevation, dip, azimuth, coordinate system, drill holelength, intercept length and depth are measured and recorded in UTM Zone 29 WGS84. | |||||
|---|---|---|---|---|---|---|
| including a tabulation of the followinginformation for all Material drill holes: | The Syama belt is mostly located on the Tengrela 1/200,000 topo sheet (Sheet NC 29-XVIII). | |||||
| easting and northing of the drill hole collaroelevation or RL (Reduced Level –oelevation above sea level in metres) of thedrill hole collar | Spectrum Survey & Mapping from Australia established survey control at Syama using AusPosonline processing to obtain an accurate UTM Zone 29 (WGS84) and 'above geoid' RL for theorigin of the survey control points. | |||||
| dip and azimuth of the holeo | Accuracy of the survey measurements is considered to meet acceptable industry standards. | |||||
| down hole length and interception depthoWholelength. | Drill hole information has been tabulated for this releasein Table 1of the accompanying text. | |||||
| Drill hole Information | o•If the exclusion of this information is justified | For completeness the following information about the drill holes used is provided: | ||||
| on the basis that the information is notMaterial and this exclusion does not detract | 1.Easting, Northing and RL of the drill hole collars are measured and recorded in UTMZone 29 (WGS84). | |||||
| from the understanding of the report, theCompetent Person should clearly explain | 2.Dip is the inclination of the drill hole from horizontal. For example a drill hole drilled at-600 is600 from the horizontal. | |||||
| why this is the case. | 3.Down hole length is the distance down the inclination of the hole and is measured asthe distance from the horizontal to end of hole. | |||||
| 4.Intercept depth is the distance from the start of the hole down the inclination of thehole to the depth of interest,assayed interval of interestor start of reported significantintercept | ||||||
| •In reporting Exploration Results, weighting | All reported assay intervals have been length weighted to the nearest 1.0m. | |||||
| averaging techniques, maximum and/orminimum grade truncations (e.g. cutting of | No top cutting has been applied. | |||||
| high grades) and cut-off grades are usually | Lower cut-off grade applied was 1.0 g/t. | |||||
| Material and should be stated.•Where aggregate intercepts incorporate short | Up to 3m of internal dilution has been allowed to be included in the interval reporting. | |||||
| Data aggregationmethods | lengths of high grade results and longerlengths of low grade results, the procedure | Only intercepts greater than 3mare reported as intervals in Table 1Significant DrillholeIntercepts. | ||||
| used for such aggregation should be statedand some typical examples of such | See notes accompanying Table 1of the text. | |||||
| aggregations should be shown indetail. | ||||||
| •The assumptions used for any reporting ofmetal equivalent values should be clearlystated. | ||||||
| Relationship | •These relationships are particularly important | The mineralisation is steeply dipping at approximately 600 from the horizontal. | ||||
| betweenmineralisation widths | in the reporting of Exploration Results.•If the geometry of the mineralisation with | azimuths were planned at local grid 900 (950 WGS84)Drill holeat a general inclination of - |

| and intercept lengths | respect to the drill hole angle is known, itsnature should be reported.•If it is not known and only the down holelengths are reported, there should be a clearstatement to this effect (e.g. 'down holelength, true width not known'). | 600eastto achieve as close to perpendicular to the ore zone as possible.At the angle of the drillholes and the dip of the ore zones,the reported intercepts will be slightly more than true width. |
|---|---|---|
| Diagrams | •Appropriate maps and sections (with scales)and tabulations of intercepts should beincluded for any significant discovery beingreported These should include, but not belimited to a plan view of drill hole collarlocations and appropriate sectional views. | Relevant maps, diagrams and tabulations are included in the body of text. |
| •Where comprehensive reporting of all | Significant intercepts of newdrill holeshave been reported in this release. | |
| Balanced reporting | Exploration Results is not practicable,representative reporting of both low and highgrades and/or widths should be practiced toavoid misleading reporting of ExplorationResults. | All other drilling depicted on the sections and maps havebeen releasedin previous yearsunderthe JORC 2004 guidelines. |
| Other substantiveexploration data | •Other exploration data, if meaningful andmaterial, should be reported including (butnot limited to): geological observations;geophysical survey results; geochemicalsurvey results; bulk samples –size andmethod of treatment; metallurgical testresults; bulk density, groundwater,geotechnical and rock characteristics;potential deleterious or contaminatingsubstances. | No geophysical and geochemical data and any additional exploration information are reported inthis release as they are not deemed relevant to the release. |
| •The nature and scale of planned further work | Down Depth drilling in order to test the depth extensions of the Syama ore body, is ongoing. | |
| Further work | (e.g. tests for lateral extensions or depthextensions or large-scale step-out drilling).•Diagrams clearly highlighting the areas ofpossible extensions, including the maingeological interpretations and future drillingareas, provided this information is notcommercially sensitive. | Relevant maps and diagrams are included in the body of text. |