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.

TALONX RESOURCES LIMITED Capital/Financing Update 2023

Jan 9, 2023

65972_rns_2023-01-09_8b40d908-f154-4244-a050-6c07caf635c4.pdf

Capital/Financing Update

Open in viewer

Opens in your device viewer

10 January 2023

==> picture [183 x 60] intentionally omitted <==

ASX CODE: MTB

Contribution of Gallium Credits for the Kihabe Deposit

Highlights

Out of a total of 118 holes drilled into the Kihabe Deposit, only 18 holes were assayed for Gallium. All 18 holes contained significant intersections of Gallium mineralisation and showed that:

  • 1,368.35m of Gallium mineralisation at an average grade of 12g/t, can be added to the Zn/Pb/Ag/V2O5 mineralised zones, which include:

  • 809.7m of Gallium mineralisation within or extending beyond the Zn/Pb/Ag/V2O5 mineralised zones, averaging 45m per hole for the 18 holes

  • Gallium mineralisation occurs both within and stratigraphically above the Zn/Pb/Ag envelope (Refer KDD112, Figure 9)

  • Test work being conducted to determine how Gallium and Germanium can be recovered on site.

Kihabe Resource

On 10 August 2022, the Company released an announcement to ASX updating the Kihabe Mineral Resource, estimated in accordance with the 2012 JORC Code.

The Mineral Resource which was only evaluated for Zn/Pb/Ag/V2O5 content, showed that it contained the following metal mineralisation:

  • Zinc, 321,000 tonnes

  • Lead, 154,000 tonnes

  • Silver, 5.4 million ounces

  • Vanadium Pentoxide, 10,000 tonnes

1

Following the release of the Mineral Resource Estimate, which did not include any credits for Gallium, Germanium or Copper, the Company completed an in-depth review of Gallium assay results in both the Oxide and Sulphide Zones at Kihabe.

Gallium Credits

The review revealed that only 18 holes drilled along the entire 2.4km length of the Kihabe Deposit had been assayed for Gallium.

Gallium results from seven of the holes (shown as Section 8 on Figures 1 and 3), which were drilled in 2017 into the oxide zone, were previously released to ASX on 25 May 2022.

The results showed that:

  • 330.35m of Gallium mineralisation at an average grade of 12.1g/t can be added to the Zn/Pb/Ag/V2O5 mineralised zones, which include

  • 83.7m of Gallium mineralisation, within or extending beyond the Zn/Pb/Ag/V2O5 mineralised zones, averaging 12m per hole

The current review of the oxide and sulphide zones of the Kihabe Deposit has revealed a further 11 holes assayed for Gallium, not previously announced to the market, (refer to Figures 1, 2 and 4 - 14). The results showed that:

  • 1,038m of Gallium mineralisation at an average grade of 12g/t can be added to the Zn/Pb/Ag/V2O5 mineralised zones, which include

  • 726m of Gallium mineralisation, within or extending beyond the Zn/Pb/Ag/V2O5 mineralised zones, averaging 66m per hole

Combined data for the 18 holes shows that:

  • 1,368.35m of Gallium mineralisation at an average grade of 12g/t can be added to the Zn/Pb/Ag/V2O5 mineralised zones which include

  • 809.7m of Gallium mineralisation, within or extending beyond the Zn/Pb/Ag/V2O5 mineralised zones, averaging 45m per hole

Consistency of Gallium Mineralisation

A review of Kihabe drill hole sections (Figures 3 to 14) shows the consistency of gallium mineralisation. The zones of Gallium mineralisation would have to be excavated in the process of extracting Zn/Pb/Ag/V2O5 mineralisation.

Mineralogical Association Test Work conducted on Kihabe Deposit Gallium

On 3 March 2022, the Company released an announcement to ASX confirming results of the mineralogical work carried out by the University of Tasmania on Gallium and Germanium samples from the Kihabe Deposit.

2

The work identified that both Gallium and Germanium were primarily hosted within muscovite (mica). Ga is possibly hosted in Al and K mica and Ge is likely hosted in Fe mica, both not directly associated with zinc mineralisation. Mica in the form of flakes is amenable to flotation, which generally results in a high recovery as a concentrate.

Core samples from holes drilled into the Kihabe Deposit in 2017 (Refer Figure 3) have now arrived in Australia and will be subject to further test work to determine how gallium and germanium can be recovered on site.

Gallium a Metal of the Future

Gallium, a soft metallic element is currently used for semi-conductors, blue ray technology, light emitting diodes (LEDs), mobile phones and as an additive to produce low melting -point alloys.

The Fraunhofer Institute System and Innovation Research expects that by 2030, worldwide demand for Gallium will be six times higher than current production of around 720 tonnes per annum.

Gallium Nitride (GaN) energy saving chips, available at globally competitive costs in the future will allow for:

  • Wireless charging of electric vehicles with energy efficiency levels of 96%, compared to current levels, at best, of 93%. The increase of 3% will achieve a reduction of CO2 emissions of around 1.7 mega-tonnes per annum by 2030. This is equivalent to annual CO2 emissions from 1 million cars with internal combustion engines.

  • Low loss and smooth connection of solar energy to grid storage systems.

  • Rapid expansion of cost effective fifth generation (5G) networks requiring Gallium computer chips, being more efficient at higher temperatures than traditional siliconbased chips.

Recently, an international team of scientists led by Professor Konrosh-Zadeh at the University of New South Wales School of Chemical Engineering in Australia, has developed a reactor that uses Gallium and nano-sized silver rods to break down CO2 into constituent elements.

Quote “Our liquid metal technology offers an unprecedent(ed) process for capturing and converting CO2 at an exceptionally competitive cost “said Kalantar-Zadeh. “We are very hopeful that this technology will emerge as the cornerstone of processes that will be internationally employed for mitigating the impact of greenhouse emissions”. (Metal Tech News 27/09/22).

Strategic Metal Prices

Gallium US $ 603/kg (Kitco Strategic Metals 9/01/23) Germanium US $2,240/kg (Kitco Strategic Metals 9/01/23)

______

3

FIGURE 1

I
7,822,000N
7,821,950N
7,821,900N
7,821,SS0N
7,821,S00N
DRILL HOLE DETAILS
SECTION 8ref Figure 3
KOD204
500,8 15E7,821,SSN
Dip-60Deg
KDD203
500,8 40E7,821,595N
Dip-60Deg
KDD202
500,8 62E7,821,610N
Dip-60Deg
KDD201
S00,8 90E
7,821,620N
Dip-60Deg
KDD206
500,900E7,821,630N
Dip-60Deg
KDD200500,925E7,821,650N
Dip-60Deg
KOD205500,945E7,821,66N
Dip-60Deg
KIHABE DEPOSIT SW AREA
SHOWING HOLES ASSAYED FOR GALLIUM
Az 340 Deg
Az 340 Deg
Az 340 Deg
Az 340 Deg
Az 340 Deg
Az 340 Deg
Az 340 Deg
IN RED
%0
-�eo'
\
--�.oo''-
�sf:

\
\
011\
'�c
\•"�
'�e0

:?
�eO.•

J
�'�\
'00,e
�<
�''
.'oO
-\
��-

��-
/r
��a

.'oO




'\Y
(


Y


DRILL HOLE DETAILS
SECTION 8ref Figure 3
KOD204
500,8 15E7,821,SSN
Dip-60Deg
KDD203
500,8 40E7,821,595N
Dip-60Deg
KDD202
500,8 62E7,821,610N
Dip-60Deg
KDD201
S00,8 90E
7,821,620N
Dip-60Deg
KDD206
500,900E7,821,630N
Dip-60Deg
KDD200500,925E7,821,650N
Dip-60Deg
KOD205500,945E7,821,66N
Dip-60Deg
KIHABE DEPOSIT SW AREA
SHOWING HOLES ASSAYED FOR GALLIUM
Az 340 Deg
Az 340 Deg
Az 340 Deg
Az 340 Deg
Az 340 Deg
Az 340 Deg
Az 340 Deg
IN RED
%0
-�eo'
\
--�.oo''-
�sf:

\
\
011\
'�c
\•"�
'�e0

:?
�eO.•

J
�'�\
'00,e
�<
�''
.'oO
-\
��-

��-
/r
��a

.'oO




'\Y
(


Y


DRILL HOLE DETAILS
SECTION 8ref Figure 3
KOD204
500,8 15E7,821,SSN
Dip-60Deg
KDD203
500,8 40E7,821,595N
Dip-60Deg
KDD202
500,8 62E7,821,610N
Dip-60Deg
KDD201
S00,8 90E
7,821,620N
Dip-60Deg
KDD206
500,900E7,821,630N
Dip-60Deg
KDD200500,925E7,821,650N
Dip-60Deg
KOD205500,945E7,821,66N
Dip-60Deg
KIHABE DEPOSIT SW AREA
SHOWING HOLES ASSAYED FOR GALLIUM
Az 340 Deg
Az 340 Deg
Az 340 Deg
Az 340 Deg
Az 340 Deg
Az 340 Deg
Az 340 Deg
IN RED
%0
-�eo'
\
--�.oo''-
�sf:

\
\
011\
'�c
\•"�
'�e0

:?
�eO.•

J
�'�\
'00,e
�<
�''
.'oO
-\
��-

��-
/r
��a

.'oO




'\Y
(


Y


DRILL HOLE DETAILS
SECTION 8ref Figure 3
KOD204
500,8 15E7,821,SSN
Dip-60Deg
KDD203
500,8 40E7,821,595N
Dip-60Deg
KDD202
500,8 62E7,821,610N
Dip-60Deg
KDD201
S00,8 90E
7,821,620N
Dip-60Deg
KDD206
500,900E7,821,630N
Dip-60Deg
KDD200500,925E7,821,650N
Dip-60Deg
KOD205500,945E7,821,66N
Dip-60Deg
KIHABE DEPOSIT SW AREA
SHOWING HOLES ASSAYED FOR GALLIUM
Az 340 Deg
Az 340 Deg
Az 340 Deg
Az 340 Deg
Az 340 Deg
Az 340 Deg
Az 340 Deg
IN RED
%0
-�eo'
\
--�.oo''-
�sf:

\
\
011\
'�c
\•"�
'�e0

:?
�eO.•

J
�'�\
'00,e
�<
�''
.'oO
-\
��-

��-
/r
��a

.'oO




'\Y
(


Y


DRILL HOLE DETAILS
SECTION 8ref Figure 3
KOD204
500,8 15E7,821,SSN
Dip-60Deg
KDD203
500,8 40E7,821,595N
Dip-60Deg
KDD202
500,8 62E7,821,610N
Dip-60Deg
KDD201
S00,8 90E
7,821,620N
Dip-60Deg
KDD206
500,900E7,821,630N
Dip-60Deg
KDD200500,925E7,821,650N
Dip-60Deg
KOD205500,945E7,821,66N
Dip-60Deg
KIHABE DEPOSIT SW AREA
SHOWING HOLES ASSAYED FOR GALLIUM
Az 340 Deg
Az 340 Deg
Az 340 Deg
Az 340 Deg
Az 340 Deg
Az 340 Deg
Az 340 Deg
IN RED
%0
-�eo'
\
--�.oo''-
�sf:

\
\
011\
'�c
\•"�
'�e0

:?
�eO.•

J
�'�\
'00,e
�<
�''
.'oO
-\
��-

��-
/r
��a

.'oO




'\Y
(


Y


DRILL HOLE DETAILS
SECTION 9,90E
ref Figure 4
50,784E
7,821,447N
Dip-60 Deg Az 339 Deg
50,778E
7,821,4SSN
Dip-60 DegA 339 Deg
50,773E
7,821,463N
Dip-60 DegAz 339 Deg
50,764E
7,821,579N
Dip-60 DegAz 339 Deg
50,761E
7,821,481N
Dip-60 Deg Az 339 Deg
50,756E
7,821,492N
Dip-60 DegAz 339 Deg
50,751E
7,821,494N
Dip-58 DegAz 336 Deg
S0,743E
7,821,SOSN
Oip-60 DegAz 339 Deg
50,73SE
7,821,339N
Dip-60 DegAz 339 Deg
50,700E
7,821,551N
Dip-68 DegAz 159 Deg
SECION 10,000E
ref Figure 5
S00,871E
7,821,502N
Dip-6 Deg
Az339 Deg
S00,860E
7,821,512N
Dip-6 Deg
Az 339 Deg
S00,859E
7,821,517N
Dip-6 Deg
Az339 Deg
500,SSOE
7,821,531N
Dip-6 Deg
Az 339 Deg
500,836E
7,821,SSON
Dip-6 Deg
Az339 Deg
500,835E
7,821,554N
Dip-70 Deg
Az 339 Deg
500,825E
7,821,568N
Dip-6 Deg
Az 339 Deg
SECTION 10,l00E
ref Figure 6
500,941E
7,821,566N
Dip-6 Deg
Az 339 Deg
500,929E
7,821,586N
Dip-6 Deg
Az 339 Deg
S00,917E
7,821,68N
Dip-6 Deg
Az 339 Deg
500,907E
7,821,629N
Dip-65 Deg
Az 339 Deg
500,905E
7,821,631N
Dip-6 Deg
Az340 Deg



DRILL HOLE DETAILS
SECTION 9,90E
ref Figure 4
50,784E
7,821,447N
Dip-60 Deg Az 339 Deg
50,778E
7,821,4SSN
Dip-60 DegA 339 Deg
50,773E
7,821,463N
Dip-60 DegAz 339 Deg
50,764E
7,821,579N
Dip-60 DegAz 339 Deg
50,761E
7,821,481N
Dip-60 Deg Az 339 Deg
50,756E
7,821,492N
Dip-60 DegAz 339 Deg
50,751E
7,821,494N
Dip-58 DegAz 336 Deg
S0,743E
7,821,SOSN
Oip-60 DegAz 339 Deg
50,73SE
7,821,339N
Dip-60 DegAz 339 Deg
50,700E
7,821,551N
Dip-68 DegAz 159 Deg
SECION 10,000E
ref Figure 5
S00,871E
7,821,502N
Dip-6 Deg
Az339 Deg
S00,860E
7,821,512N
Dip-6 Deg
Az 339 Deg
S00,859E
7,821,517N
Dip-6 Deg
Az339 Deg
500,SSOE
7,821,531N
Dip-6 Deg
Az 339 Deg
500,836E
7,821,SSON
Dip-6 Deg
Az339 Deg
500,835E
7,821,554N
Dip-70 Deg
Az 339 Deg
500,825E
7,821,568N
Dip-6 Deg
Az 339 Deg
SECTION 10,l00E
ref Figure 6
500,941E
7,821,566N
Dip-6 Deg
Az 339 Deg
500,929E
7,821,586N
Dip-6 Deg
Az 339 Deg
S00,917E
7,821,68N
Dip-6 Deg
Az 339 Deg
500,907E
7,821,629N
Dip-65 Deg
Az 339 Deg
500,905E
7,821,631N
Dip-6 Deg
Az340 Deg



DRILL HOLE DETAILS
SECTION 9,90E
ref Figure 4
50,784E
7,821,447N
Dip-60 Deg Az 339 Deg
50,778E
7,821,4SSN
Dip-60 DegA 339 Deg
50,773E
7,821,463N
Dip-60 DegAz 339 Deg
50,764E
7,821,579N
Dip-60 DegAz 339 Deg
50,761E
7,821,481N
Dip-60 Deg Az 339 Deg
50,756E
7,821,492N
Dip-60 DegAz 339 Deg
50,751E
7,821,494N
Dip-58 DegAz 336 Deg
S0,743E
7,821,SOSN
Oip-60 DegAz 339 Deg
50,73SE
7,821,339N
Dip-60 DegAz 339 Deg
50,700E
7,821,551N
Dip-68 DegAz 159 Deg
SECION 10,000E
ref Figure 5
S00,871E
7,821,502N
Dip-6 Deg
Az339 Deg
S00,860E
7,821,512N
Dip-6 Deg
Az 339 Deg
S00,859E
7,821,517N
Dip-6 Deg
Az339 Deg
500,SSOE
7,821,531N
Dip-6 Deg
Az 339 Deg
500,836E
7,821,SSON
Dip-6 Deg
Az339 Deg
500,835E
7,821,554N
Dip-70 Deg
Az 339 Deg
500,825E
7,821,568N
Dip-6 Deg
Az 339 Deg
SECTION 10,l00E
ref Figure 6
500,941E
7,821,566N
Dip-6 Deg
Az 339 Deg
500,929E
7,821,586N
Dip-6 Deg
Az 339 Deg
S00,917E
7,821,68N
Dip-6 Deg
Az 339 Deg
500,907E
7,821,629N
Dip-65 Deg
Az 339 Deg
500,905E
7,821,631N
Dip-6 Deg
Az340 Deg



DRILL HOLE DETAILS
SECTION 9,90E
ref Figure 4
50,784E
7,821,447N
Dip-60 Deg Az 339 Deg
50,778E
7,821,4SSN
Dip-60 DegA 339 Deg
50,773E
7,821,463N
Dip-60 DegAz 339 Deg
50,764E
7,821,579N
Dip-60 DegAz 339 Deg
50,761E
7,821,481N
Dip-60 Deg Az 339 Deg
50,756E
7,821,492N
Dip-60 DegAz 339 Deg
50,751E
7,821,494N
Dip-58 DegAz 336 Deg
S0,743E
7,821,SOSN
Oip-60 DegAz 339 Deg
50,73SE
7,821,339N
Dip-60 DegAz 339 Deg
50,700E
7,821,551N
Dip-68 DegAz 159 Deg
SECION 10,000E
ref Figure 5
S00,871E
7,821,502N
Dip-6 Deg
Az339 Deg
S00,860E
7,821,512N
Dip-6 Deg
Az 339 Deg
S00,859E
7,821,517N
Dip-6 Deg
Az339 Deg
500,SSOE
7,821,531N
Dip-6 Deg
Az 339 Deg
500,836E
7,821,SSON
Dip-6 Deg
Az339 Deg
500,835E
7,821,554N
Dip-70 Deg
Az 339 Deg
500,825E
7,821,568N
Dip-6 Deg
Az 339 Deg
SECTION 10,l00E
ref Figure 6
500,941E
7,821,566N
Dip-6 Deg
Az 339 Deg
500,929E
7,821,586N
Dip-6 Deg
Az 339 Deg
S00,917E
7,821,68N
Dip-6 Deg
Az 339 Deg
500,907E
7,821,629N
Dip-65 Deg
Az 339 Deg
500,905E
7,821,631N
Dip-6 Deg
Az340 Deg



DRILL HOLE DETAILS
SECTION 9,90E
ref Figure 4
50,784E
7,821,447N
Dip-60 Deg Az 339 Deg
50,778E
7,821,4SSN
Dip-60 DegA 339 Deg
50,773E
7,821,463N
Dip-60 DegAz 339 Deg
50,764E
7,821,579N
Dip-60 DegAz 339 Deg
50,761E
7,821,481N
Dip-60 Deg Az 339 Deg
50,756E
7,821,492N
Dip-60 DegAz 339 Deg
50,751E
7,821,494N
Dip-58 DegAz 336 Deg
S0,743E
7,821,SOSN
Oip-60 DegAz 339 Deg
50,73SE
7,821,339N
Dip-60 DegAz 339 Deg
50,700E
7,821,551N
Dip-68 DegAz 159 Deg
SECION 10,000E
ref Figure 5
S00,871E
7,821,502N
Dip-6 Deg
Az339 Deg
S00,860E
7,821,512N
Dip-6 Deg
Az 339 Deg
S00,859E
7,821,517N
Dip-6 Deg
Az339 Deg
500,SSOE
7,821,531N
Dip-6 Deg
Az 339 Deg
500,836E
7,821,SSON
Dip-6 Deg
Az339 Deg
500,835E
7,821,554N
Dip-70 Deg
Az 339 Deg
500,825E
7,821,568N
Dip-6 Deg
Az 339 Deg
SECTION 10,l00E
ref Figure 6
500,941E
7,821,566N
Dip-6 Deg
Az 339 Deg
500,929E
7,821,586N
Dip-6 Deg
Az 339 Deg
S00,917E
7,821,68N
Dip-6 Deg
Az 339 Deg
500,907E
7,821,629N
Dip-65 Deg
Az 339 Deg
500,905E
7,821,631N
Dip-6 Deg
Az340 Deg



DRILL HOLE DETAILS
SECTION 9,90E
ref Figure 4
50,784E
7,821,447N
Dip-60 Deg Az 339 Deg
50,778E
7,821,4SSN
Dip-60 DegA 339 Deg
50,773E
7,821,463N
Dip-60 DegAz 339 Deg
50,764E
7,821,579N
Dip-60 DegAz 339 Deg
50,761E
7,821,481N
Dip-60 Deg Az 339 Deg
50,756E
7,821,492N
Dip-60 DegAz 339 Deg
50,751E
7,821,494N
Dip-58 DegAz 336 Deg
S0,743E
7,821,SOSN
Oip-60 DegAz 339 Deg
50,73SE
7,821,339N
Dip-60 DegAz 339 Deg
50,700E
7,821,551N
Dip-68 DegAz 159 Deg
SECION 10,000E
ref Figure 5
S00,871E
7,821,502N
Dip-6 Deg
Az339 Deg
S00,860E
7,821,512N
Dip-6 Deg
Az 339 Deg
S00,859E
7,821,517N
Dip-6 Deg
Az339 Deg
500,SSOE
7,821,531N
Dip-6 Deg
Az 339 Deg
500,836E
7,821,SSON
Dip-6 Deg
Az339 Deg
500,835E
7,821,554N
Dip-70 Deg
Az 339 Deg
500,825E
7,821,568N
Dip-6 Deg
Az 339 Deg
SECTION 10,l00E
ref Figure 6
500,941E
7,821,566N
Dip-6 Deg
Az 339 Deg
500,929E
7,821,586N
Dip-6 Deg
Az 339 Deg
S00,917E
7,821,68N
Dip-6 Deg
Az 339 Deg
500,907E
7,821,629N
Dip-65 Deg
Az 339 Deg
500,905E
7,821,631N
Dip-6 Deg
Az340 Deg



DRILL HOLE DETAILS
SECTION 9,90E
ref Figure 4
50,784E
7,821,447N
Dip-60 Deg Az 339 Deg
50,778E
7,821,4SSN
Dip-60 DegA 339 Deg
50,773E
7,821,463N
Dip-60 DegAz 339 Deg
50,764E
7,821,579N
Dip-60 DegAz 339 Deg
50,761E
7,821,481N
Dip-60 Deg Az 339 Deg
50,756E
7,821,492N
Dip-60 DegAz 339 Deg
50,751E
7,821,494N
Dip-58 DegAz 336 Deg
S0,743E
7,821,SOSN
Oip-60 DegAz 339 Deg
50,73SE
7,821,339N
Dip-60 DegAz 339 Deg
50,700E
7,821,551N
Dip-68 DegAz 159 Deg
SECION 10,000E
ref Figure 5
S00,871E
7,821,502N
Dip-6 Deg
Az339 Deg
S00,860E
7,821,512N
Dip-6 Deg
Az 339 Deg
S00,859E
7,821,517N
Dip-6 Deg
Az339 Deg
500,SSOE
7,821,531N
Dip-6 Deg
Az 339 Deg
500,836E
7,821,SSON
Dip-6 Deg
Az339 Deg
500,835E
7,821,554N
Dip-70 Deg
Az 339 Deg
500,825E
7,821,568N
Dip-6 Deg
Az 339 Deg
SECTION 10,l00E
ref Figure 6
500,941E
7,821,566N
Dip-6 Deg
Az 339 Deg
500,929E
7,821,586N
Dip-6 Deg
Az 339 Deg
S00,917E
7,821,68N
Dip-6 Deg
Az 339 Deg
500,907E
7,821,629N
Dip-65 Deg
Az 339 Deg
500,905E
7,821,631N
Dip-6 Deg
Az340 Deg



DRILL HOLE DETAILS
SECTION 9,90E
ref Figure 4
50,784E
7,821,447N
Dip-60 Deg Az 339 Deg
50,778E
7,821,4SSN
Dip-60 DegA 339 Deg
50,773E
7,821,463N
Dip-60 DegAz 339 Deg
50,764E
7,821,579N
Dip-60 DegAz 339 Deg
50,761E
7,821,481N
Dip-60 Deg Az 339 Deg
50,756E
7,821,492N
Dip-60 DegAz 339 Deg
50,751E
7,821,494N
Dip-58 DegAz 336 Deg
S0,743E
7,821,SOSN
Oip-60 DegAz 339 Deg
50,73SE
7,821,339N
Dip-60 DegAz 339 Deg
50,700E
7,821,551N
Dip-68 DegAz 159 Deg
SECION 10,000E
ref Figure 5
S00,871E
7,821,502N
Dip-6 Deg
Az339 Deg
S00,860E
7,821,512N
Dip-6 Deg
Az 339 Deg
S00,859E
7,821,517N
Dip-6 Deg
Az339 Deg
500,SSOE
7,821,531N
Dip-6 Deg
Az 339 Deg
500,836E
7,821,SSON
Dip-6 Deg
Az339 Deg
500,835E
7,821,554N
Dip-70 Deg
Az 339 Deg
500,825E
7,821,568N
Dip-6 Deg
Az 339 Deg
SECTION 10,l00E
ref Figure 6
500,941E
7,821,566N
Dip-6 Deg
Az 339 Deg
500,929E
7,821,586N
Dip-6 Deg
Az 339 Deg
S00,917E
7,821,68N
Dip-6 Deg
Az 339 Deg
500,907E
7,821,629N
Dip-65 Deg
Az 339 Deg
500,905E
7,821,631N
Dip-6 Deg
Az340 Deg



DRILL HOLE DETAILS
SECTION 9,90E
ref Figure 4
50,784E
7,821,447N
Dip-60 Deg Az 339 Deg
50,778E
7,821,4SSN
Dip-60 DegA 339 Deg
50,773E
7,821,463N
Dip-60 DegAz 339 Deg
50,764E
7,821,579N
Dip-60 DegAz 339 Deg
50,761E
7,821,481N
Dip-60 Deg Az 339 Deg
50,756E
7,821,492N
Dip-60 DegAz 339 Deg
50,751E
7,821,494N
Dip-58 DegAz 336 Deg
S0,743E
7,821,SOSN
Oip-60 DegAz 339 Deg
50,73SE
7,821,339N
Dip-60 DegAz 339 Deg
50,700E
7,821,551N
Dip-68 DegAz 159 Deg
SECION 10,000E
ref Figure 5
S00,871E
7,821,502N
Dip-6 Deg
Az339 Deg
S00,860E
7,821,512N
Dip-6 Deg
Az 339 Deg
S00,859E
7,821,517N
Dip-6 Deg
Az339 Deg
500,SSOE
7,821,531N
Dip-6 Deg
Az 339 Deg
500,836E
7,821,SSON
Dip-6 Deg
Az339 Deg
500,835E
7,821,554N
Dip-70 Deg
Az 339 Deg
500,825E
7,821,568N
Dip-6 Deg
Az 339 Deg
SECTION 10,l00E
ref Figure 6
500,941E
7,821,566N
Dip-6 Deg
Az 339 Deg
500,929E
7,821,586N
Dip-6 Deg
Az 339 Deg
S00,917E
7,821,68N
Dip-6 Deg
Az 339 Deg
500,907E
7,821,629N
Dip-65 Deg
Az 339 Deg
500,905E
7,821,631N
Dip-6 Deg
Az340 Deg



KRC034
50,784E
7,821,447N
**Dip-60 Deg **
Az 339 Deg
KDDlOS
KRC015
KDD121
KRC036
KDD106
KRC014
KRC035
KRC013
KDD118
50,778E
7,821,4SSN
Dip-60 Deg
50,773E
7,821,463N
Dip-60 Deg
50,764E
7,821,579N
Dip-60 Deg
50,761E
7,821,481N
Dip-60 Deg
50,756E
7,821,492N
Dip-60 Deg
50,751E
7,821,494N
Dip-58 Deg
S0,743E
7,821,SOSN
Oip-60 Deg
50,73SE
7,821,339N
Dip-60 Deg
50,700E
7,821,551N
Dip-68 Deg
A 339 Deg
Az 339 Deg
Az 339 Deg
Az 339 Deg
Az 339 Deg
Az 336 Deg
Az 339 Deg
Az 339 Deg
Az 159 Deg
DRILL HOLE DETAILS
SECTION 8ref Figure 3
KOD204
500,8 15E7,821,SSN
Dip-60Deg
Az 340 Deg
KRC037
KIH003

S00,871E
7,821,502N
S00,860E
7,821,512N

Dip-6 Deg
Dip-6 Deg
Az339 Deg
Az 339 Deg
KRC041
KIH00
KIHOOl
KDD108
KRC038
S00,859E
7,821,517N
500,SSOE
7,821,531N
500,836E
7,821,SSON
500,835E
7,821,554N
500,825E
7,821,568N

Dip-6 Deg
Dip-6 Deg
Dip-6 Deg
Dip-70 Deg
Dip-6 Deg
Az339 Deg
Az 339 Deg
Az339 Deg
Az 339 Deg
Az 339 Deg
KDD203
500,8 40E7,821,595N
Dip-60Deg
KDD202
500,8 62E7,821,610N
Dip-60Deg
Az 340 Deg
Az 340 Deg
7,821,750N KDD201
S00,8 90E
7,821,620N
Dip-60Deg
Az 340 Deg
KDD206
500,900E7,821,630N
Dip-60Deg
Az 340 Deg
KRC017
KRC046
KRC044
KDD109
KRC016
KDD200500,925E7,821,650N
Dip-60Deg

Az 340 Deg
KOD205500,945E7,821,66N
Dip-60Deg
Az 340 Deg
500,941E 7,821,566N Dip-6 Deg Az 339 Deg
7,821,700N 500,929E
S00,917E
500,907E
500,905E
7,821,586N
7,821,68N
7,821,629N
7,821,631N

Dip-6 Deg
Dip-6 Deg
Dip-65 Deg
Dip-6 Deg
Az 339 Deg
Az 339 Deg
Az 339 Deg
Az340 Deg
7,821,GS0N
7,821,G00N
7,821,SS0N~~I~~
7,821,S00NI
7,821,450N
7,821,400N
�''
.i00
�1\
'�
:5
,�_o'
��c ,
\iit
'

w
w
0
0
0
L
"
"
o'

0
_p

0

_



,o�
"
,
\
e<C

'
:�

-
�__V
<-
�'i\��
�\1'\�

e0< � \
'(
IIIh
;
-�
%II
\
<l\���\,�'•7\�'o" \
�� �'
I�
ii_A�\'

�'o�
'�eo�

Q
�.�
i
'0

i-<,.
-�eo� onn•

o �•
-�c
\
�-
\
I�.
I eont•
;

·\
'�
e('%*l\
0\1
'�
.
�C
,-iO'°. \
� - �
>0o�oo
v�

�o
��


-\Y(on'

'��oo-
',� . �0-1
~~
V~~
o'•
\

ci~~V~~
���'\

_o__
o , o\<.
o-n
�.
\�c�os\�c
V
-00i1,
1-
6-

w
w
w
w

0
0
0
0

0
i
0
i

0
0
°
°
.
.

0
0
0
.
0

0
0
0
0
,
i
i
~~L~~
i
/
w
w
0
0
0
L
q
0.
f
f
0
0
L
i
.V
~~V~~
V
jO\
,�
w
w
w
w
w
w
0
0
0
0
0
0
0
i
0
i
0
L
f
f
N
N
m
m
.
.
.
.
.
.
.
f
f
f
.
f
0
0
0
0
0*
0
_i

i
L
i
i
i
4
KRC042
KDD126
KRC019
500,889E
500,884E
7,821,657N
7,821,67N
Dip-6 Deg
Dip-78 Deg
Az339 Deg
Az 159 Deg

~~V~~
KRC018
KRC051
KRC020
501,00GE
500,99SE
500,985E
7,821,653N
7,821,670N
7,821,687N

Dip-6 Deg
Dip-6 Deg
Dip-6 Deg
Az339 Deg
Az339 Deg
Az 339 Deg
KDD110
KIHOOS
KDD111 501,178E 7,821,760N
Dip-6 Deg
Az339 Deg
KRC025
KRC026
501,16E
501,lSOE
7,821,772N
7,821,796N

Dip-6 Deg
Dip-6 Deg
Az339 Deg
Az 159 Deg
KRC027 501,130E 7,821,825N
Dip-6 Deg
Az 159 Deg
KRC028
KDD112

Dip-6 Deg
Az 159 Deg
w
0
0
N
.
f
0
L
w
0
i
N

.
f
0
i
KDD133
IKDD113

w
w
0
0
0
L
m
m

.
.
.
f
0
0
i
i
w
0
0

.
f
0
L
w
w
0
0
i
0

i
.
.
f
f
0
0
i
i
w
0
i
i

.
.
0
i
w
0
0
U

.

f
0
i

KIHABE DEPOSIT NE AREA

FIGURE 2

SHOWING HOLES ASSAYED FOR GALLIUM

7,822,700N
7,822,GS0N
7,822,SS0N
7,822,S00N
7,822,450N
7,822,400N
7,822,350N
7,822,300N
7,822,250N
7,822,200N
7,822,lS0N
7,822,l00N
L
0
L
U.
'
0
L
SHOWING HOLES ASSAYED FOR GALLIUM
IN RED
DRILL HOLE DETAILS
SECTION 11,S00E
ref Figure 11
KOD114
502,085E7,822,386N
Oip-90 Deg
A
O Deg
KRC048
S02,079E7,822,386N
Dip-60 Deg
Az 1S9 Deg
KRC049
502,062E7,822,418N
Dip-60 Deg
Az 159 Deg
KRCOS2
S02,048E 7,822,437N
Dip-60 Deg
Az 159 Deg
SECTION 11,600E
ref Figure 12
KDD115
502,214E7,822,367N
Dip-60 Deg
Az339 Deg
KDD143
502,204E7,822,383N
Dip-60 Deg
Az 339 Deg
KIH010
S02,170E7,822,418N
Dip-60 Deg
Az 159 Deg
KRC059
502,174E 7,822,425N
Dip-60 Deg
Az 1S9 Deg
KRCOS4
502,159E 7,822,451N
Dip-60 Deg
Az 159 Deg
KRCOS6
502,146E 7,822,475N
Dip-60 Deg
Az 159 Deg
KRC058
502,132E7,822,490N
Dip-60 Deg
Az 1S9 Deg
SECTION 11,S0E
ref Figure 13
KDD116
S02,372E7,822,491N
Dip-60 Deg
Az 339 Deg
KRC074
502,356E7,822,513N
Dip-60 Deg
Az 159 Deg
KRC076
502,339E 7,822,S43N
Dip-60 Deg
Az 1S9 Deg
KRC077
502,332E 7,822,SSGN
Dip-60 Deg
Az 1S9 Deg
KRC078
502,318E7,822,583N
Dip-60 Deg
Az 159 Deg
KRC079
502,304E7,822,610N
Dip-60 Deg
Az 159 Deg
SECTION 12,000E
ref Figure 14
KIH012
502,523E 7,82,610N
Dip-6 Deg
A 159 Deg
lRC084
502,523E 7,822.619N
Dip-6 Deg
Az 159 Deg
KDD117
502,S00E
7,Rl,667N
Dip-6 Deg
f 159 Deg
L
L
L
L
L
L
L
L
L
L
L
0
0
0
0
0
0
0
0
0
0
0
0
L
0
L
0
L
0
L
0
L
0
"
"
0
0
°
e
0
0
'
'
N
.
.
.
.
.
N .
N .
N'
N'
.
'
'
'
'
'
'
N
0
0
0
0
0
0
0
0
0
0
0
u
u
L
u
u
u
u
L
u
L
u
\
L
L
L
L
L
L
L
0
0
0
0
0
0
0
L
0
L
0
L
0
u
N
m
m
o
o
L
u
.
N
N'
N
N'
.
N
N
N
0
0
0
0
0
0
0
u
u
L
u
u
u
u
5

==> picture [56 x 10] intentionally omitted <==

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

FIGURE 3
----- End of picture text -----

==> picture [282 x 53] intentionally omitted <==

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

KIHABE DEPOSIT SW AREA SECTION 8
SHOWING INDIVIDUAL INTERSECTIONS FOR
Zn, Pb, Ag, (V205), Ge, Ga , Ag, (V205), Ge, Ga Ag, (V205), Ge, Ga , (V205), Ge, Ga (V205), Ge, Ga ), Ge, Ga , Ge, Ga Ge, Ga Ga
WITHIN THE OXIDE ZONE
----- End of picture text -----

==> picture [1139 x 782] intentionally omitted <==

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

SHOWING INDIVIDUAL INTERSECTIONS FOR
I Zn, Pb, Ag, (V205), Ge, Ga , Ag, (V205), Ge, Ga Ag, (V205), Ge, Ga , (V205), Ge, Ga (V205), Ge, Ga ), Ge, Ga , Ge, Ga Ge, Ga Ga
WITHIN THE OXIDE ZONE
I
"- I
152m
I
I
SECTION I '
'-,.
ORIENTATION I
60 Deg
4.40m 2.90m-.
DFS u��
MINERALISED �
I\Qc
OXIDISED �o,·
QUARTZ WACKE rv
, w , ..,
ii: 0
0 ::c
'$;:
0o"c
.
., �
..., � w
h� :E [2 ] z [:::,9 ] -x
----...
..., . Oo ., c( 3 (.') :J w f.!) 0: c( [� ] [>a. ] Zz <Cw 00 c( I- N [u] z w_, 0 <( ::i. $ ;;; _,
DFS = DEPTH FROM SURFACE
MINERALISED OHO = DOWN HOLE DEPTH
SULPHIDIC
QUARTZ WACKE
6
----- End of picture text -----

==> picture [1189 x 850] intentionally omitted <==

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

U'I 0 ..
C
(1)
OQ
GERMANIUM
r[c7 L 1vl -2 1uc . • ,,.. I flJ DRILL HOLE C
1,.'.
-4,. [0" ]
I [-4,.� c.,0][,,,][�]
lzinc, Lead, Silver mineralised domains included in
resource estimate, from holes NOT ASSAYED FOR GALLIUM zy �-
. · ';Q C)
. . •-= ':)
[0�]
�--·· � [0][0 ]
�:" - "' �
�. [. ] .. - � � ,_, :i --� � 1.-, �� � �� � � -:;,�;. • .• -4,. [�{.,][0 ]
�iv s � ff ' C
c; -:::0
�V) r-
r-
:I:
0 r-
m V) :;:,:::::
m -
Nor ASSA YEo 'DR Ga appJy/n grade for Zn/Pb/Ag /V/inera/ised domains lnc/ud/n V> )> V> n ::c ---4 )>0:,
"�e•ghbour1ng dr;u holes Om
!:a 1:1610wcut Zn eq )>
".!:;,Jen
-C \D m\
... ""tJ\
'TI �o\
0 0 V)\
m -\
:::0\
--4\
�\
)>
r-
� I II -r-
C

�� , �
lrl)l)
I - Q' s: D· .i llJ
11°' ►
P m [z ] ., ..... 6. 8De
c �
-"�;,,," 'l{
� [C grade for Zn/Pb/Ag] � )> � � i!:: :c )> ll,-lS9 D
�a� � j::j� � V> ee
► E �o w
QC m� �r :c )> � 0 - )> n ;,:::­ m [X][o] [0 ] )> z 0 (1) w 0 0 s
0 Z V> m OQ
n 0
....
b
U1 ... .... .... ... ....
0
3 0 0 .... ... U1 0 \t) 0 ....
)> 3 3 3
VI ,- Cl) )> )> VI )> VI � TI
,- ,- ,-
7 G'5 C
:;o
m
'"'

� � NOT ASSAYED FOR Ga, applying a 1% low cut Zn equivalent�
. � Mineralised domains including neighbouring drill holes )>
11
� t � �.
----- End of picture text -----

==> picture [1189 x 837] intentionally omitted <==

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

ff)
O'Q
I l [HOLE ]
�\'t' ,1.. [00� ]
!resQurc� estimate, from holes [Zinc, Lead, Silver mineralised domains Included in] NOT ASSAY [E] D FOR GALLIUM!
e M ems
�-a
4 -� • � [oo'.]
,__,. =•----•-�• -"; -.. _ _ -·==- = •· • [-] [-] [ ·] [r:::r'>:>][""][;1:•] � .�
- [�][-]
7_ "' . [ooio'o] [.... 10o][ei ]
Mineralised domains Including neighbouring drill holes
NOT ASSA YEO FOR Ga, app/ying a l % low cut Zn equivalentgrade for Zn/Pb/ Ag
p,. [i{(\)\" '?; ]
C
::::0 A
v,
m -
� [�][l][co,'o] r­·
r- n
::i:: [...--][1 ] :c
)::, � )> -
:;;o :c
0 Om CJ
Vl r­
z )::, ffl Zc
0 )> � m
V, 0 ""C
V, bo
)> c­ 0 V,

-< m m
C
"T1
0
'T 'inerar ised do - l c ., ,, i [&][h] H?t: n - �z :::::- "k -, 1 ❖1 '�· -�£ . [,][,][fti] · ['][x]["] ::::0 G')
ASSAYE mains. � )>

) � ::, [► ] [C ]["] - [for ][Znl,] - % low c lltZn dr11J ho/ es r-- C
N [Vl] m . 1 ent
eqlli1ta/
�o �
)::, [Vl ]
n -A -0 [C] ' VI s
fn
C,
m ::I: 0
n
w
w
0
0
n>
b V1 .... ...... O'Q
0 3 .... 0 0 3 � V1 0 .... ...... U) ....
V) 3 0
l> � 3
r- r- V)
l> V)
l>
r- TI
r-
8
G)C;;om/JI
��-'L@/trr ;:::.
' -
'rade D FOR n2 n�, �
ii/.Udi ..:_ ��
b/
A:�, applying !;:'Chbo1.1ring
7
ei
�9 o
Q\l
----- End of picture text -----

==> picture [1189 x 837] intentionally omitted <==

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


V,
V, 0
0 0
It)
3 l> (7Q
VI f>.
,...
<.,<::>r,.
- ��
=- .::: - .... � ; 7. ��-
= =- =-z =--

v> -o>.
., �
. .-v.'-�
t,r-1-'' •.
C
:::0

r-
:::c
;::::;;
)> :j l>
:::c
l>
m
v,
o.
� ..i�<.,<::> Z"� m -< � O m "'t1
o
"T1 0 V,
i m
-I
grade for Zn/Pb/ Ag C)
)>
r-
r- -
C

II
z '"-� .- --�- . . � z
� -·---�
:;;I :.>. C ::o
:::0 ,- i � :x> :x> □
:::0
-; l/)
.; Nm
II _s
�o
)> l/)
-
,-
"" "'O
m -
l/)
0 m
n
0
DRILL 0
HOLE It)
...... .... •• (7Q
0 ....
0 ...... U1 ....
0 ......
1,0
3 0
3 l> VI l> 3
lzinc, Lead, Silver mineralised domains Included in ,... VI l> -n
[resource estimate, from holes NOT ASSAYED FOR GALLIUM! 9 ,... VI ,... C c5
;o m
a>
II
II

L -
-
- -
- - - -
II
Mineralised
NOT ASSAYED FOR Ga, domains including neighbouring drill holes
grade for Zn/Pb/ Ag applying a 1% low cut Zn equiva/e1
ei
-6' '9 1 ·�J)O .09'o?o ei
� o
, , ,
o\9.,
Mineralised
domains
- 0
NOT ASSAYED FOR Ga, applying a 1% grade for Zn/Pb/ Ag including neighbouriOg drill holes low cut Zn equivalent I l> 1 V,"
1-0 .cw, f f £:
� :il> z 0
kD01.26
.Q. m
)> :X::.NOT ASSAYED FOR Ga, applying a 1% low cut Zn
-; vi grade for Zn/Pb/ Ag equivalent;z

�o )> 0
nX
m AO
:::C
? I 1tl
1
\J'
m -
m n
I'- :::c
C � 0
0 0 -
:::0
_ !:J Mineralised domains
including neighbouring drill holes "6
Nm
w
ll
NOT ASSAYED FOR Ga, applying a 1% low cut Zn equivalent
Mineralised domains including neighbouring drill holes'
..;:,'?:> I
V, 0 OJ
n C
BARREN OOLOSTONE
----- End of picture text -----

==> picture [1189 x 837] intentionally omitted <==

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

f->
V1
0
C
et)
O'Q
DRILL c, [O'\,'o]
��
HOLE
Zinc, Lead, Silver mineralised domains Included in
resource estimate.! from holes NOT ASSAYED FOR GALLIUM!
c, [O<, '\­]
��
�= �= ==-• Mineralised domains including neighbouring drill holes
NOT ASSAYED FOR Ga, applying a 1% low cut Zn equivalent
i::=:: l grade for Zn/Pb/ Ag r
c==:
0
c, [0][1,]
��
grade for Zn/Pb/ Ag
I-"
.i:,.
0
3
w
f-> 31 f Dip-90 Deg [KDDllO ]
Azimuth O Deg
C
� VI :;:::;; ::x, -
)>
Mineralised [domains including neig][n][So][uring ] drill holes' � '
r-
NOT ASSAYED FOR [Ga, applying_2l% low cut ] Zn equivalent grade for Zn/Pb/Aff, )> r-
:c
)> :I:
:,J 0 V, :;::i::::
V') )> r-m mn [-] [:I: ]
z
0 )> --t - )>
V, 0 c:,
s V,
)> � a
m
�l -< m ... ""'O
s: C N 0
C z
V') - · 0 V)
-n 0 [-]
�o - &; 0 m [--t ]
)> [)> ] [-]
)> [V') ] Mineralised domains including neighbouring drill holes . r. ::x,

m "'tJ :;:::;;, NOT ASSAYED FOR Ga, applying a 1% low cut Zn equivalentgrade for Zn/Pb/ Ag Nm G) s
� [o]
:c )>
0 )> 0 r-
n n >< w r- -
m -:::-:o w
V> 0 C
m C
0
et)
s:
O'Q
.!""'
.!""' .!""'
b U1 0 .... ....0 0 3 .... U1 0 3 3 ....00 00 ,
3 )> VI r- )> VI r- 10 )> VI r- )> VI r- !\I \l <5C :;um

412m1.3%
oo m
co
m
z
oz m
c
nC
lo
z
____

� :
NOT ASSAYED FOR Ga, applying a 1% low cut Zn equivalent
Mineralised domains including neighbouring drill hoies---:
----- End of picture text -----

==> picture [1189 x 838] intentionally omitted <==

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

.....
·o
UI 0 3 ..........0 � 1-l u, 0
)> 0 3 .... V, 0 C
enr )> 3 Cl)
enr s aQ
pZc [m] VI )>,- � [\'P ] ,1..()()<, �.�.
I- [�� ]
)> [;::o]
;::o [)>]
--1 !::
N v, t
. DRILL HOLE �0 V, v' � � · [o ] ,
)> n [C] i "o . > ·.,�- � l;)O -;, \ • \' • A.
'6 �
;::;::;:,
SILVER r! m -o ::r: 0 n II [p. RRl'. l'I 001.oS"I ol'l l'.] � � ",? � �� ?,, ,� �.....iillrr.. -. � I? � (>1> � o • ,1;"<' ."<' ,a.V- � .l..°\V- :...�Q (j,"Q ,,. "",v.'-'. [�o� ] OJ [�ei]

Zinc, Lead, Silver mtn·eralised domains Included in (l� a,3 t>- [i'"('(']
resource estimate, from holes NOT ASSAYED FOR GALLIUM!
;mac : . .--:C-
�, ·
C
- ::::c
r-
r-

("\
::I:

C 0
- r-
- ------ [-][-] ------- --------- [-] -�� [-] ---- -:r-1,<;; % -- --�� m )> V'> ;,::: n m -
rc-- ------------------ - --- -· � -� IJ" ..,. .... $. 0. V'> V'> ---4 )> :I:
..-� i I )> c:,
m
-< m [C]
Mi [n][e][r][alised d][o][mai][n][s ][in][cl][u][ding ][n][e][i][g][hbouring ][dnll holes ] Zc
C
NO [T ASSAYED FOR Ga, apply][in][g a 1% ][o][w c][u][t Z.n eq][u][ivale][n][t] � m
gr [ade f][or ][Zn/P][b][/ Ag] � "T1 0 -0
0 0 �o

y> -� ::::c 0 V'> o-

� 0 G) m --4
�yo [-] )>
r-
",? r- -
e..
C
4 s
% ? [·�]
A [j ] �
-
�-►.· [-] [1-i\'t] - -� � 0 � � p �
-
1,()� �-� ·, C ;::o
)� · "v' [1?. ] ¾ [o-] � ):, )>
,' .:,:J Q(>° o [• ] y> -�o �'"c5' [>] o � [�][--'][� ] "o� ::::0 ' -I -N�
� � � 1� o o [IJl ] � ? -� ):, � [0][0] -t,1>C'o <" s
-:, n ><�a
m -
� V,
�t" m w
0 w
0 0
y>"
v": C
g l't)
b.... � aQ
V, 0 .... ....
00 .......
3 00
3 U)
VI )> )>VI 3 "TI
,- ,- )>VI
c5
11 ,- ;;o m C
00
grade for Zn/Pb/ Ag
� '<�o
NOT ASSAYED FOR Ga, applying a 1% low cut Zn equivalent
Mineralised domains including neighbouring drill holes
\,
ei
�\,\,
�\V ,
.
{(\
• .!I! L. ··--
----- End of picture text -----

12

13

==> picture [837 x 1189] intentionally omitted <==

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

14
----- End of picture text -----

15

16

==> picture [837 x 1189] intentionally omitted <==

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

17
----- End of picture text -----

TENEMENT HOLDING

==> picture [517 x 310] intentionally omitted <==

Location Project Licence
Number
Licence
Size
Registered
Holder
Nature of
Interest
Western
Ngamiland,
Botswana
Kihabe/Nxuu
Polymetallic
Project
PL
043/2016
1,000 sq
km
Mount Burgess
Botswana (Pty)
Ltd
100%

Contact: Nigel Forrester Chairman and Managing Director (08) 9355 0123 [email protected]

About Mount Burgess N.L.:

Mount Burgess N.L. (ASX: MTB) is a Perth-based company, focused on the exploration and development of its 100%-owned Kihabe-Nxuu Zn/Pb/Ag/V/Ga/Ge project in Western Ngamiland, Botswana. The Company has been listed on the Australian Securities Exchange since 1985 and has previously discovered the Red October gold deposit in Western Australia and three kimberlites in Namibia.

18

Forward Looking Statement

This report contains forward looking statements in respect of the projects being reported on by the Company. Forward looking statements are based on beliefs, opinions, assessments and estimates based on facts and information available to management and/or professional consultants at the time they are formed or made and are, in the opinion of management and/or consultants, applied as reasonably and responsibly as possible as at the time that they are applied.

Any statements in respect of Ore Reserves, Mineral Resources and zones of mineralisation may also be deemed to be forward looking statements in that they contain estimates that the Company believes have been based on reasonable assumptions with respect to the mineralisation that has been found thus far. Exploration targets are conceptual in nature and are formed from projection of the known resource dimensions along strike. The quantity and grade of an exploration target is insufficient to define a Mineral Resource. Forward looking statements are not statements of historical fact, they are based on reasonable projections and calculations, the ultimate results or outcomes of which may differ materially from those described or incorporated in the forward-looking statements. Such differences or changes in circumstances to those described or incorporated in the forward-looking statements may arise as a consequence of the variety of risks, uncertainties and other factors relative to the exploration and mining industry and the particular properties in which the Company has an interest.

Such risks, uncertainties and other factors could include but would not necessarily be limited to fluctuations in metals and minerals prices, fluctuations in rates of exchange, changes in government policy and political instability in the countries in which the Company operates.

Other important Information

Purpose of document : This document has been prepared by Mount Burgess Mining NL (MTB). It is intended only for the purpose of providing information on MTB, its project and its proposed operations. This document is neither of an investment advice, a prospectus nor a product disclosure statement. It does not represent an investment disclosure document. It does not purport to contain all the information that a prospective investor may require to make an evaluated investment decision. MTB does not purport to give financial or investment advice.

Professional advice: Recipients of this document should consider seeking appropriate professional advice in reviewing this document and should review any other information relative to MTB in the event of considering any investment decision.

Forward looking statements : This document contains forward looking statements which should be reviewed and considered as part of the overall disclosure relative to this report.

Disclaimer: Neither MTB nor any of its officers, employees or advisors make any warranty (express or implied) as to the accuracy, reliability and completeness of the information contained in this document. Nothing in this document can be relied upon as a promise, representation or warranty.

Proprietary information : This document and the information contained therein is proprietary to MTB.

Competent Person’s Statements

The information in this report that relates to drilling results at the Kihabe Deposit fairly represents information and supporting documentation approved for release by Giles Rodney Dale FRMIT who is a Fellow of the Australasian Institute of Mining & Metallurgy. Mr Dale is engaged as an independent Geological Consultant to the Company. Mr Dale has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code)’. Mr Dale consents to the

19

inclusion in this report of the drilling results and the supporting information in the form and context as it appears.

The information in this report that relates to mineralogical/metallurgical test work results conducted on samples from the Kihabe Deposit fairly represents information and supporting documentation approved for release by Mr R Brougham (FAusIMM). Mr Brougham, non-executive Director of the Company, is a qualified person and has sufficient experience relevant to the process recovery under consideration and to the laboratory activity to which he has undertaken to qualify as a Competent Person as defined in the 2012 Edition ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code)’. Mr Brougham consents to the inclusion in the report of the matters, based on the information in the form and context in which it appears.

JORC Table 1

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.

Include reference to measures taken to ensure
sample representivity and the appropriate
calibration of any measurement tools or
systems used.

Aspects of the determination of mineralisation
that are Material to the Public Report. In cases
where ‘industry standard’ work has been done
this would be relatively simple (eg ‘reverse
circulation drilling was used to obtain 1 m
samples from which 3 kg was pulverised to
produce a 30 g charge for fire assay’). In other
cases more explanation may be required, such
as where there is coarse gold that has inherent
sampling problems. Unusual commodities or
mineralisation types (eg submarine nodules)
may
warrant
disclosure
of
detailed
information.

HQ and PQ diamond Core was marked and
collected in sample trays, visually logged
and cut in half. Samples were collected as
nominal 1m intervals but based on visible
geology with minimum samples of 0.3m and
maximum samples of 1.3m. Half of each
core was retained on site in core trays and
the other half was double bagged and sent
to Intertek Genalysis Randburg, South Africa
where they were crushed. A portion of each
intersection sample was then pulverised to
p80 75um and sent to Intertek Genalysis in
Perth for assaying via ICPMS/OES for
Ag/Pb/Zn/V/Ge/Ga.

Individual meters of RC drill chips were
bagged from the cyclone. These were then
riffle split for storage in smaller bags, with
selected drill chips being stored in drill chip
trays. A trowel was used to select drill chip
samples from sample bags to be packaged
and sent to Intertek Genalysis, Randburg,
South Africa where they were crushed. A
portion of each intersection’s sample was
then pulverised to P80 75um and sent to
Intertek Genalysis in Perth for assaying via
ICP/OES for Ag/Co/Cu/Pb/Zn.

The remainder of the crushed samples were
then sent from Intertek Genalysis Randburg
to Intertek Genalysis in Perth where they
were then collected by the Company for
storage. Samples from various intersections
from drill holes were selected by the
Company for submission for metallurgical
test work.

Based on the distribution of mineralisation
the core sample size is considered adequate
for representative sampling.
Drilling
techniques

Drill type (eg core, reverse circulation, open-
hole hammer, rotary air blast, auger, Bangka,
sonic, etc) and details(eg core diameter, triple

HQ and PQ diameter triple tube was
generally used for diamond core drilling at
Nxuu.

20

Criteria JORC Code explanation Commentary
or standard tube, depth of diamond tails, face-
sampling bit or other type, whether core is
oriented and if so, by what method, etc).

RC chips were collected over 1m intervals,
and two-stage riffle split to produce a
sample for dispatch to the assay laboratory.
The remainder of the sample was bagged
and kept on site for access pending assay
results; with washed chip samples for each
metre also collected in chip trays for logging
and later reference.
Drill sample
recovery

Method of recording and assessing core and
chip sample recoveries and results assessed.

Measures taken to maximise sample recovery
and ensure representative nature of the
samples.

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.

Sample recoveries have in general been good
and no unusual measures were taken to
maximise sample recovery other than the
use of triple tube for diamond core drilling. In
the event of unacceptable core loss MTB
drills twin holes. MTB believes there is no
evidence of sample bias due to preferential
loss/gain of fine/coarse material for holes
beingreported on.
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.

Whether logging is qualitative or quantitative
in nature. Core (or costean, channel, etc)
photography.

The total length and percentage of the
relevant intersections logged.

Holes were logged in the field by qualified
geologists on MTB’s log sheet template and
of sufficient detail to support Mineral
Resource
estimation:
qualitative
observations covered lithology, grain size,
colour, alteration, mineralisation, structure.
Quantitative logging included vein percent.
SG
measurements
were
obtained
at
approximately 5m intervals on DD holes.

All core is photographed wet and dry.

All drill holes are logged in full.
Sub-sampling
techniques
and sample
preparation

If core, whether cut or sawn and whether
quarter, half or 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 and
appropriateness of the sample preparation
technique.

Quality control procedures adopted for all sub-
sampling stages to maximise representivity of
samples.

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.

Whether sample sizes are appropriate to the
grain size of the material being sampled.

HQ and PQ Core was sawn in half on site.
Half of each core was retained on site in
core trays and the other half was double
bagged and labelled noting hole number
and interval both within the bag and on the
bag. Sample bags were then placed in larger
bags of ~40 individual samples and the
larger bag also labelled describing the
contents. Field duplicates were inserted at
regular intervals.

RC chips were collected over 1m intervals,
and two-stage riffle split to produce a
sample for dispatch to the assay laboratory.
The remainder of the sample was bagged
and kept on site for access pending assay
results; with washed chip samples for each
metre also collected in chip trays for logging
and later reference.

All samples currently being reported on
were assayed for Ag/Pb/Zn/V/Ge/Ga.
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.

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.

Nature of quality control procedures adopted
(eg standards, blanks, duplicates, external
laboratory checks) and whether acceptable
levels of accuracy (ie lack of bias) andprecision

Samples prior to 2008 were dispatched to
the Ongopolo Laboratory situated in
Tsumeb, Namibia. Check samples were also
sent to Genalysis in Perth.

Samples since 2008, when originally
assayed, were sent to Intertek Genalysis
Perth, for assaying according to the
following standard techniques.

Diamond core samples were analysed for:
(a) Ore grade digest followed by ICPMD –
OES
finish
for
Silver,
Lead,
Zinc,
Vanadium/Germanium/Gallium;
(b) Also 4 acid digest for silver, lead, zinc
followed by AAS.

21

Criteria JORC Code explanation Commentary
have been established.
RC samples were analysed with Ore grade
digest
followed
by
ICP-OES
for
Ag/Co/Cu/Pb/Zn.

MTB quality control procedures include
following
standard
procedures
when
sampling, including sampling on geological
intervals,
and
reviews
of
sampling
techniques in the field.

The current laboratory procedures applied
to the MTB sample preparation include the
use of cleaning lab equipment with
compressed air between samples, quartz
flushes between high grade samples,
insertion of crusher
duplicate QAQC
samples, periodic pulverised sample particle
size (QAQC) testing and insertion of
laboratory pulp duplicates QAQC samples
according to Intertek protocols.

Intertek inserts QA/QC samples (duplicates,
blanks and standards) into the sample series
at a rate of approx. 1 in

20. These are tracked and reported on by
MTB for each batch. When issues are noted,
the laboratory is informed and investigation
conducted defining the nature of the
discrepancy and whether further check
assays
are
required.
The
laboratory
completes its own QA/QC procedures, and
these are also tracked and reported on by
MTB. Acceptable overall levels of analytical
precision and accuracy are evident from
analyses of the routineQAQC data.
Verification of
sampling and
assaying

The verification of significant intersections by
either independent or alternative company
personnel.

The use of twinned holes.

Documentation of primary data, data entry
procedures, data verification, data storage
(physical and electronic) protocols.

Discuss any adjustment to assay data.

A selection of the original digital assay files
from MTB has been checked and verified
against the supplied database.

Numerous twin, and close spaced holes
have been drilled. Results show close spatial
and grade correlation.

All drilling logs were validated by the
supervising geologist.

Adjustments
to
assay
data
included
converting assays recorded in ppm to
percent for Zn, Pb, Cu and V; the conversion
of V to V2O5 and the conversion of negative
or below detection limit values to half
detection limit.
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.

Specification of the grid system used.

Quality and adequacy of topographic control.

All drill hole collars were surveyed using
DGPS equipment in WGS84 UTM Zone 34S
coordinates.

Drill holes were routinely down hole
surveyed
using
Eastman
single
shot
magnetic survey instruments, with the dip
and azimuth monitored by the driller and
site geologist to ensure the hole remained
on track within the stipulated guidelines.
Readings were obtained at approximately
25m intervals down hole.

Topographic control was derived from collar
surveys. The Nxuu area is overlain by
Kalahari Sand cover and is predominantly
flat.

22

Criteria JORC Code explanation Commentary
Data spacing
and
distribution

Data spacing for reporting of Exploration
Results.

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.

Whether sample compositing has been
applied.

Data spacing (drill holes) is variable and
appropriate to the geology. Sections are
spaced at 30m intervals, with hole spacings
predominantly 30m on section.

The spacing is considered sufficient to
establish geological and grade continuity
appropriate
for
a
Mineral
Resource
estimation.

Samples were composited to 1m intervals
prior to 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.

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.

Mineralisation is sub-horizontal, therefore
holes were drilled vertically.

The drill holes may not necessarily be
perpendicular to the orientation of the
intersected mineralisation.

Reported intersections are
down-hole
intervals and are generally representative of
true widths.
Sample
security

The measures taken to ensure sample security.

Samples were taken by vehicle on the day of
collection to MTB’s permanent field camp
and stored there until transported by MTB
personnel to Maun from where they were
transported via regular courier service to
laboratories in South Africa.
Audits or
reviews

The results of any audits or reviews of
sampling techniques and data.

MTB’s exploration geologists continually
reviewed sampling and logging methods on
site throughout the drilling programs.

Section 2 Reporting of Exploration Results

Criteria JORC Code explanation Commentary
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 security of the tenure held at the time of
reporting along with any known impediments
to obtaining a license to operate in the area.

The Kihabe-Nxuu Project is located in north-
western Botswana, adjacent to the border
with Namibia. The Project is made up of one
granted prospecting licence PL 43/2016,
which covers an area of 1000 sq km. This
licence is 100% owned and operated by
MTB. The title is current to 31 December
2022 at the time of release of this report,
with
an
extension
application
until
December
2024
lodged
with
the
Department of Mines in September 2022.

PL 43/2016 is in an area designated as
Communal Grazing Area.

The Tenement is current and in good
standing.
Exploration
done by other
parties

Acknowledgment and appraisal of exploration
by other parties.

The
Geological
Survey
of
Botswana
undertook a program of soil geochemical
sampling in 1982. As a result of this
program, Billiton was invited to undertake
exploration and drilling activities in and
around the project area. MTB first took
ownership of the project in 2003 and has
undertaken exploration activities on a
continual basis since then.
Geology
Deposit type, geological setting and style of
mineralisation.

The Kihabe-Nxuu Project lies in the north-
western part of Botswana at the southern
margin of the Congo craton. The Gossan
Anomaly is centred on an exposed gossan
within the project. To the north of the
project
are
granitoids,
ironstones,

23

Criteria JORC Code explanation Commentary
quartzites and mica schists of the Tsodilo
Hills Group covered by extensive recent
Cainozoic sediments of the Kalahari Group.
Below the extensive Kalahari sediments are
siliciclastic sediments and igneous rocks of
the Karoo Supergroup in fault bounded
blocks.

The Nxuu deposit mineralisation occurs in a
flat-lying quartz wacke unit situated on the
contact of a barren dolomite basement unit.
The deposit is weathered, with base metal
mineralisation occurring as a series of sub-
horizontal units overlying the barren
dolomite unit.
Drill hole
information
A summary of all information material to the
under-standing 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 RL (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
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.

Exploration
results
are
not
being
reported.

All information has been included in the
appendices. No drill hole information has
been excluded.
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.
Where aggregate intercepts incorporate short
lengths of high grade results and longer
lengths of low grade results, the procedure
used for such aggregation should be stated
and some typical examples of such
aggregations should be shown in detail.
The assumptions used for any reporting of
metal equivalent values should be clearly
stated.

Exploration results are not being reported.

Not applicable as a Mineral Resource is being
reported.

ZnEq=Zinc
equivalent
grade,
which
is
estimated based on Kitco prices as of 21st
October 2022 and calculated with the
formula:

ZnEq = [(Zn% x 3,000) + (Pb% x 2,000) + (Ag g/t
x (20.0/31.1035)) + (V2O5% x 16,000)] /
(3,000).

MTB is of the opinion that all elements
included in the metal equivalent calculation
have reasonable potential to be recovered
and sold.
Relationship
between
mineralisation
widths and
intercept
lengths
These relationships are particularly important
in the reporting of Exploration Results.
If the geometry of the mineralisation with
respect to the drill hole angle is known, its
nature should be reported.
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’).

Mineralisation at Nxuu is sub-horizontal.
Holes are drilled vertically.

Reported
hole
intersections
generally
represent true width.
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.

Relevant diagrams have been included
within the Mineral Resource report main
body of text.

24

Criteria JORC Code explanation Commentary
Balanced
Reporting

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.
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.

Maps showing individual hole locations are
included in the report.

Exploration results are not being reported.
Other
substantive
exploration
data
Other exploration data, if meaningful and
material, should be reported including (but not
limited
to):
geological
observations;
geophysical survey results; geochemical survey
results; bulk samples - size and method of
treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock
characteristics;
potential
deleterious
or
contaminating substances.

Results were estimated from drill hole assay
data, with geological logging used to aid
interpretation
of
mineralised
contact
positions.

Geological observations are included in the
report.
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).

Diagrams clearly highlighting the areas of
possible extensions, including the main
geological interpretations and future drilling
areas, provided this information is not
commercially sensitive.

Follow up drilling will be undertaken to
improve confidence.

Drill
spacing
is
currently
considered
adequate
for
the
current
level
of
interrogation of the Project.

Section 3 Estimation and Reporting of Mineral Resources

Criteria JORC Code explanation Commentary
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.

Data validation procedures used.

The database has been systematically
audited by MTB geologists.

The database used for estimation was cross
checked with original records where
available.

Ashmore performed initial data audits in
Surpac.
Ashmore
checked
collar
coordinates, hole depths, hole dips, assay
data overlaps and duplicate records.
Site visits
Comment on any site visits undertaken by the
Competent Person and the outcome of those
visits.

If no site visits have been undertaken indicate
why this is the case.

Ashmore has not undertaken a site visit to
the Relevant Assets by the CP as at the date
of this report. Ashmore notes that it plans to
conduct a site visit as part of the future
works and upgrade of the Mineral Resource
to higher categories.
Geological
interpretation

Confidence in (or conversely, the uncertainty
of) the geological interpretation of the
mineral deposit.

Nature of the data used and of any
assumptions made.

The
effect,
if
any,
of
alternative
interpretations
on
Mineral
Resource
estimation.

The use of geology in guiding and controlling
Mineral Resource estimation.

The factors affecting continuity both of grade
and geology.

The
confidence
in
the
geological
interpretation is considered to be good and
is based on visual confirmation within drill
hole intersections.

Geochemistry and geological logging have
been used to assist identification of
lithology and mineralisation.

The Nxuu deposit consists of sub-horizontal
units. Alternative interpretations are highly
unlikely.

Infill and extensional drilling has supported
and refined the model and the current
interpretation is considered robust.

Observations from the host rocks;as well as

25

Criteria JORC Code explanation Commentary
infill drilling, confirm the geometry of the
mineralisation.

Infill drilling has confirmed geological and
grade continuity.
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.

The Nxuu Mineral Resource area extends
over an northeast strike length of 730m, has
a maximum width in plan view of 265m and
includes the 80m vertical interval from
1,155mRL to 1,075mRL.
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 availability of check estimates, previous
estimates and/or mine production records
and whether the Mineral Resource estimate
takes appropriate account of such data.

The assumptions made regarding recovery of
by-products.

Estimation of deleterious elements or other
non-grade variables of economic significance
(eg
sulphur
for
acid
mine
drainage
characterisation).

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

Any
assumptions
behind
modelling
of
selective mining units.

Any assumptions about correlation between
variables.

Description
of
how
the
geological
interpretation was used to control the
resource estimates.

Discussion of basis for using or not using grade
cutting or capping.

The process of validation, the checking
process used, the comparison of model data
to drill hole data, and use of reconciliation
data if available.

Using parameters derived from modelled
variograms, Ordinary Kriging (OK) was used
to estimate average block grades in three
passes using Surpac software. Linear grade
estimation was deemed suitable for the
Nxuu Mineral Resource due to the
geological
control
on
mineralisation.
Maximum extrapolation of wireframes from
drilling was 30m along strike and down-dip.
This was equal to the drill hole spacing in
these regions of the Project. Maximum
extrapolation was generally half to one drill
hole spacing.

Zn (%), Pb (%), Ag (ppm), Cu (%), V2O5(%),
Ga (ppm) and
Ge (ppm) were all
interpolated.

Reconciliation could not be conducted as no
mining has occurred.

It is assumed that Zn, Pb and Ag can be
recovered in a Zn concentrate and V2O5can
be recovered in a V2O5concentrate. In
addition, Ga and Ge may be recovered as by-
products.

It is assumed that there are no deleterious
elements when considering the proposed
processing methodology for the Nxuu
mineralisation.

The parent block dimensions used were
15m EW by 15m NS by 5m vertical with sub-
cells of 3.75 by 3.75m by 1.25m. The model
was rotated to align with the strike of the
deposit of 045°. The parent block size
dimension was selected on the results
obtained from Kriging Neighbourhood
Analysis that suggested this was the optimal
block size for the dataset.

An orientated ‘ellipsoid’ search was used to
select data and adjusted to account for the
variations in lode orientations, however all
other parameters were taken from the
variography. Up to three passes were used
for each domain. The first pass had a range
of 50m, with a minimum of 8 samples. For
the second pass, the range was extended to
100m, with a minimum of 4 samples. For
the final pass, the range was extended to
150m, with a minimum of 2 samples. A
maximum of 20 samples was used for all
three passes.

No assumptions were made on selective
mining units.

Zn and Pb, as well as Pb and Ag had
moderatepositive correlations. Zn and Ag

26

Criteria JORC Code explanation Commentary
had a moderate positive correlation.

The mineralisation was constrained by
Mineral Resource outlines created in Surpac
software, based on logged geology and
mineralisation envelopes prepared using a
nominal 0.5% combined Zn and Pb cut-off
grade with a minimum down-hole length of
2m. The wireframes were applied as hard
boundaries in the estimate.

After review of the project statistics, it was
determined that high grade cuts were
required for Ag and V2O5within some
domains.

Validation of the model included detailed
comparison of composite grades and block
grades by strike panel and elevation.
Validation plots showed good correlation
between the composite grades and the
block modelgrades.
Moisture
Whether the tonnages are estimated on a dry
basis or with natural moisture, and the
method of determination of the moisture
content.

Tonnages and grades were estimated on a
dry in situ basis.
Cut-off
parameters

The basis of the adopted cut-off grade(s) or
quality parameters applied.

A ZnEq cut-off grade of 0.5% for Nxuu was
utilised for reporting purposes, assuming an
open pit mining method. The Statement of
Mineral Resources has been constrained by
the mineralisation solids and reported
above a Zn equivalent (“ZnEq”) cut-off grade
of 0.5%. Zinc equivalent grades are
estimated based on LME Zn/Pb prices, Kitco
Silver Price for Ag, Live Vanadium Price for
V2O5, Kitco Strategic Metals Prices for
Ge/Ga, as at 21 October 2022. The ZnEq
formula is shown below:

ZnEq = 100 x_[(Zn% x 3,000) + (Pb% x 2,000)
+ (Ag g/t x (20.0/31.1035)) + (V2O5% x_
16,000)] / (3,000).
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.

Ashmore has assumed that the Nxuu deposit
could potentially be mined using open pit
techniques. No assumptions have been
made for mining dilution or mining widths. It
is assumed that mining dilution and ore loss
will be incorporated into any Ore Reserve
estimated from a future Mineral Resource
with higher levels of confidence.
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

The Nxuu mineralisation was initially
determined to be a zinc and lead sulphide
deposit. Metallurgical test work involved
the recovery of the zinc / lead by flotation.
Initial results gave low zinc recoveries
(67.5%), with low sulphur in the tails.

Mineralogical evaluation of the tailings
determined that the zinc was in an oxide
form of baileychlore and the lead as a
carbonate (cerussite). Further flotation
tests were conducted, and the tailings

27

Criteria JORC Code explanation Commentary
basis of the metallurgical assumptions made. subjected to leaching with sulphuric acid at
40 deg C for a zinc extraction rate of 89.5%.

Recovery of zinc concentrate by floatation
and
leaching
of
the
zinc
oxides
(baileychlore) in the tailings resulted in a
zinc extraction of 89.5% giving an overall
access availability to 94% of zinc within the
ore. Additional testwork is recommended.
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.

No assumptions have been made regarding
environmental factors. MTB will work to
mitigate environmental impacts as a result
of any future mining or mineral processing.
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.

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.

Discuss
assumptions
for
bulk
density
estimates used in the evaluation process of
the different materials.

A total of 513 bulk density measurements
were taken on core samples collected from
diamond holes drilled at the deposit using
the water immersion technique. Bulk
densities for the transitional mineralisation
were assigned in the block model based on
a density and Zn regression equation.
Average
densities
for
weathered
mineralisation were applied (2.40t/m3for
oxide). Average waste densities were
assigned based on lithology and weathering.

It is assumed that the bulk density will have
some variation within the mineralised
material types due to the host rock lithology
and sulphide minerals present. Therefore, a
regression equation for Zn and density was
used to calculate density in the Nxuu
transitional material.
Classification
The basis for the classification of the Mineral
Resources into varying confidence categories.

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).

Whether the result appropriately reflects the
Competent Person’s view of the deposit.

The Mineral Resource estimate is reported
here in compliance with the 2012 Edition of
the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and
Ore Reserves’ by the Joint Ore Reserves
Committee (JORC). The Mineral Resource
was classified as Indicated and Inferred
Mineral Resource based on data quality,
sample spacing, and lode continuity. The
Indicated Mineral Resource was defined
within areas of close spaced drilling of less
than 30m by 30m, and where the continuity
and predictability of the mineralised units
was reasonable. The Inferred Mineral
Resource was assigned to areas where drill
hole spacing was greater than 30m by 30m
and less than 60m by 60m; or where small,
isolated pods of mineralisation occur
outside the main mineralised zones.

28

Criteria JORC Code explanation Commentary

The input data is comprehensive in its
coverage of the mineralisation and does not
favour
or
misrepresent
in-situ
mineralisation.
The
definition
of
mineralised zones is based on high level
geological
understanding
producing
a
robust model of mineralised domains. This
model has been confirmed by infill drilling
which
supported
the
interpretation.
Validation of the block model shows good
correlation of the input data to the
estimated grades.

The
Mineral
Resource
estimate
appropriately reflects the view of the
Competent Person.
Audits or
reviews

The results of any audits or reviews of Mineral
Resource estimates.

Internal audits have been completed by
Ashmore which verified the technical
inputs,
methodology,
parameters
and
results of the estimate.
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.

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.

These statements of relative accuracy and
confidence of the estimate should be
compared with production data, where
available.

The geometry and continuity have been
adequately interpreted to reflect the
applied level of Indicated and Inferred
Mineral Resource. The data quality is good
and the drill holes have detailed logs
produced by qualified geologists. A
recognised laboratory has been used for all
analyses.

The Mineral Resource statement relates to
global estimates of tonnes and grade.

No
historical
mining
has
occurred;
therefore, reconciliation could not be
conducted.

ACN: 009 067 476

8/800 Albany Hwy, East Victoria Park, Western Australia 6101 Tel: (61 8) 9355 0123 Fax: (61 8) 9355 1484 [email protected] www.mountburgess.com

29