TRUE NORTH COPPER LIMITED — Capital/Financing Update 2021

Dec 16, 2021

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ASX ANNOUNCEMENT | ASX: DEX

17 December 2021

NEW GEOPHYSICAL MODELLING DEMONSTRATES EXPANDED PROSPECTIVITY AT BUNDARRA AND DRILLING UPDATE AT QUORN AND ISENS PROSPECTS

Duke Exploration Limited (ASX: DEX) (“Duke” or “the Company”) is pleased to announce the results of new geophysical data processing and drill target ranking at the Bundarra project in Central Queensland, consistent with Duke’s previously outlined pluton-wide expanded and accelerated exploration strategy. Very encouraging preliminary observations from new diamond drilling at Quorn and Isens prospects are also reported.

HIGHLIGHTS

• New modelling of historical airborne EM data was completed. A total of 39 km of linear conductive trends were identified through this targeting analysis from which 19 km were associated with anomalous copper in soil.

• Duke geologists have incorporated this newly processed geophysical data into a prospectivity model for the area with very encouraging results.

• Conductivity highs were detected that correlate with known mineralisation and copper in soil anomalies, as previously predicted.

• Multiple other conductivity anomalies with associated copper in soils exist that have not been tested by drilling and represent priority targets.

• Quorn diamond drill hole intersects visible copper mineralisation in breccia and vein style zones.

• Isens diamond drill hole intersects copper sulphide bearing alteration zone down-dip from historic workings.

Commenting on progress – Philip Condon, MD:

“The completion of the historic VTEM data remodelling using up-to-date technology, represents the next significant step in Duke’s expanded Bundarra resource development strategy, building on the recently completed and very successful Bundarra pluton-wide geochemical soils survey. The interpretation of the results and integration into the exploration model is now generating further focused and refined target identification and prioritisation, as planned. The next very exciting stage is

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Duke Exploration Limited | ABN: 28 119 421 868
P.O. Box 2057 Ascot QLD 4007
E: info@duke-exploration.com.au | www.duke-exploration.com.au
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the drill testing of the generated primary targets, which has begun with the Quorn and Isens holes having been completed and sent for assay, and 3 diamond holes remain to be drilled on the Rogers prospect. Our initial diamond drill hole at Quorn is very significant as it confirms the potential for bulkstyle breccia hosted copper mineralisation in the Bundarra area in addition to the vein styles seen in the same prospect and at Mount Flora. This is a very important and positive outcome of our revised strategy in action, as there are now two distinct styles of mineralisation that have been identified and confirmed to be present at Bundarra. Duke will continue to advance the understanding of geology and mineralisation at Bundarra with mapping and drill testing of targets into Q1, 2022.”

Future Work Program

Future work planned at Bundarra includes:

• Further detailed ground checking and geological mapping in vicinity of priority targets.

• Diamond drill testing of best conductivity anomalies.

• Further diamond drilling in Quorn area

This announcement has been authorised for release by the Board.

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Philip Condon

Managing Director p.condon@duke-exploration.com.au Ph +61 417 574 730

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Toko Kapea Chairman

t.kapea@duke-exploration.com.au Ph+64 27 534 2886

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Technical Information

VTEM Data Modelling and Coincidental Geochemical Anomalies

Duke Exploration has interpreted historic Versatile Time-Domain Electromagnetics (VTEM) data that was acquired over the Bundarra area in 2011 by previous owners of the project. VTEM data was reprocessed by TechnoImaging LLC of Utah, USA, who are experts in providing 3D imaging solutions of a variety of geophysical data, including airborne electromagnetics. TechnoImaging utilised their proprietary EMVision® software and GlassEarth® technology to produce a 3D model of conductivity and chargeability to a depth of 300 m below surface covering most of the Bundarra project area. When combined with Duke’s soil sampling data, the 3D geophysical model highlights numerous coincidental conductivity and copper in soil anomalies around the Bundarra pluton’s 50 km long contact.

The announcement on 15 September 2021 outlined Duke’s profile targeting system that utilised conductivity derived from processed Gradient Array IP (GAIP) data and pXRF copper in soil results to define the location and likely size of mineralisation targets around the Bundarra pluton. Processing the historic VTEM data and extending soil surveys has allowed the technique to be further modified and applied over an expanded area where there was no GAIP coverage. Figure 1 demonstrates the utility of the processed VTEM data at Mount Flora, where the modelled higher conductivity response is correlated with mineralisation in fresh rock at a depth of approximately 70 m below surface. The new processing allows both the horizontal and vertical extent of conductors to be defined by manually examining successive depth slices (at 100 m, 170 m and 240 m) through the 3D conductivity model. A set of linear trends were digitised on each depth slice to define conductive zones (Figure 2), which were then correlated with surface copper in soil anomalies.

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Figure 1. Section 7,572,270 mN of the most northern line of resource drilling relative to pXRF soil and electrical geophysical anomaly profiles

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A total of 39 km of linear conductive trends were identified through this targeting analysis from which 19 km were associated with anomalous copper in soil (Figure 2). The majority of conductive trends associated with copper in soil anomalies are untested by drilling. The large scale of the combined geophysical and geochemical anomalism provides excellent exploration potential.

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Figure 2. Interpreted linear trends form pXRF copper soil and conductivity profile targets from survey areas

The interpreted VTEM conductivity inversion model data was added to Duke’s spatial prospectivity database that includes data from soil samples, drilling results, historic workings, defined resource and exploration target size. Prospect areas are defined by polygons, which are weighted according to the strength of the various inputs, e.g. higher copper in soil assays contribute to a higher rank for a prospect. Rankings are relative and allow Duke geologists to assign priorities for drill testing. Geological mapping and assessment of the highest ranked targets has begun to help guide RC drill-testing planned for early 2022. Figure 3 shows a total of 74 outlined prospect areas that are colour coded by their prospective ranking with red highlighting the top ten that will be given priority.

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Figure 3: Identified prospective areas colour coded by red – high prospectivity and blue – lower prospectivity

Quorn and Isens Preliminary Exploration Drilling Results

As reported in the announcement of 5 November, five diamond holes for 880 m were planned at Quorn, Isens and Rogers to test the exploration targeting technique outlined above. These holes were designed to:

• Test selected high priority coincident copper in soil and zones of high Gradient Array Induced Polarisation (GAIP) conductivity,

• Collect petrophysical downhole survey data to map geological and structural geometries,

• Review and categorise the relevant rock classes present downhole,

• Review orientations of structures and mineralisation downhole, and

• Review and interpret the geometry and controls on the copper and silver mineralisation intersected to date.

Two holes (one hole at Quorn and one hole at Isens) have been completed, with three holes remaining to be drilled at Rogers (Table 1 and Figure 4). Drilling was severely impacted by adverse weather conditions and will continue into January 2022.

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Table 1. Bundarra exploration diamond drill hole details

Hole ID	Prospect	Plan ID	NORTH	EAST	RL	DIP	Azimuth	DEPTH
BNDD001	Quorn	PLQN001	7569541	653712	322	-60	180	250
-	Rogers	PLQN002	7567776	655231	337	-55	180	150
-	Rogers	PLQN003	7567757	655416	354	-55	180	150
-	Rogers	PLQN004	7567374	655131	378	-55	180	150
BNDD002	Isens	PLQN005	7567626	658272	366	-55	325	180

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Figure 4. Locations of drilled and planned exploration diamond drill holes, Q4 2021 and Q1 2022

Quorn

Quorn was tested by the first Bundarra exploration scout drilling program as announced on 28 July 2021. A total of four exploration holes and one water bore were drilled - all intersecting copper, silver and gold mineralisation (Figure 5). Better results from that program included:

• 4.0 m at 2.66 % Cu, 4.51 g/t Ag and 0.54 g/t Au from 199.0 m in QNRC001,

• 11.0 m at 1.04 % Cu, 14.70 g/t Ag and 0.07 g/t Au from 122.0 m in QNRC002,

• 27.0 m at 0.58 % Cu, 14.86 g/t Ag and 0.05 g/t Au from 26.0 m in QNRC002 and

• 5.0 m at 0.28 % Cu, 6.24 g/t Ag and 0.01 g/t Au from 41.0 m in QNRC004.

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The recently drilled diamond hole followed up previous drilling undertaken by Duke and confirmed two distinct mineralisation styles and orientations at Quorn that can be seen in outcrop. The top 120 m comprises an angular breccia with clasts of foliated metasediment and granodiorite in a matrix of hydrothermal infill minerals. Mineralisation below the breccia zone comprises 1 – 10 cm thick chalcopyrite-pyrite-pyrrhotite veins associated with hematite-magnetite alteration within foliated metasedimentary rock. The approximate boundary of the breccia zone can be mapped at surface and forms a roughly ellipsoidal shape 100 m by 50 m elongated in a northeast-southwest direction (Figure 5). Vein-style copper mineralisation in historic workings in granodiorite on the eastern side of the Quorn prospect strikes east-west and dips to the north.

Mineralised zones within the breccia matrix hosting up to 5% secondary copper minerals (predominantly malachite and azurite) were logged in the oxide zone and up to 5% sulphides (chalcopyrite and pyrite) in fresh rock (Figure 6). Significant logged mineralised intervals in include:

• 4.0 m from 14.0 m (oxide)

• 18 m from 29 m (oxide)

• 10.8 m from 87 m (fresh)

• 6 m from 100.7 m (fresh)

BNDD001 was drilled to the south to intersect the north-dipping vein set interpreted to extend from historic workings to the east (Figure 7). Although north-dipping veins are present towards the bottom of the drill hole it is now apparent that the breccia zone represents a more interesting target in the immediate future and that the significant intercepts in Duke drill hole QNRC002 represent breccia style mineralisation rather than vein style as was previously presumed.

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Figure 5. Completed drill hole locations at Quorn including historic drill holes, breccia outcrop and granodiorite contact

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Figure 6. Quorn BNDD001 mineralised zones intersected downhole showing breccia style mineralisation

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Figure 7. Cross section on 653750m E showing the logged mineralisation relative to the breccia and vein style mineralisation

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Isens

The first hole drilled into the Isens prospect was targeted at the down-dip extension of mineralisation exposed in historic workings to the northwest, with the additional aim of testing for a stacked parallel lode system similar to Mount Flora (Figure 8). A 4 m wide zone of strong to intense sericite-chlorite-albite alteration with pyritechalcopyrite veinlets (Figure 9) was intersected from 110.6 m downhole, at the expected position of the downdip projection of the historic workings. The footwall contact of the mineralised zone is marked by about 15 cm of a more sulphide rich siliceous shear zone cut by a thin (20 cm) feldspar porphyry intrusion. Additional zones of thin sulphide veining / veinlets were intersected above and below the main lode zone, as shown in Figure 10. Drilling issues due to poor ground conditions resulted in the hole being abandoned at 147 m depth despite intersecting several minor 1 cm chalcopyrite-pyrite veins near the bottom of hole.

This drill hole has confirmed the mineralisation style and orientation of the Isens prospect. The mineralisation striking NE – SW has also confirmed the validity of the exploration targeting technique using VTEM and mapping Cu from soil sampling. The strike and dip of the 3D conductivity model from the VTEM data replicated the mineralised intersections downhole and indicate the lode may extend an additional 500 m along strike.

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Figure 8. Isens plan highlighting the relative location of BNDD002 to the surface expression of the Isens lode.

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Figure 9. Isens drill rig set up on the pad drilling NW with examples of mineralised lodes intersected downhole

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Figure 10. Isens cross section highlighting the relative locations of logged mineralisation and orientation of the Isens lode

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The results from this recent drilling are another significant step forward in the discovery of additional resources of copper and silver at Bundarra to that already found at Mt Flora. The scale of the mineral system at the two recently drilled prospects and the number of new targets around the pluton suggest that a near surface long life mining operation may be present at Bundarra, particularly when the other electrical geophysical targets are included.

The drill program testing the exploration targeting method will resume in early January. The core from the first two holes has been sent to the ALS Townsville lab with assay results expected in early February. Upon completion of the drilling the next phase of the Duke Exploration strategy will commence involving drill testing of several high priority targets around the pluton.

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About Duke Exploration

Duke is an Australian exploration company with majority interests in five granted exploration tenements for copper, gold and silver exploration areas located in Queensland and New South Wales, Australia.

Duke’s key assets comprise:

• EPM 26499, EPM 27474 and EPM 27609 – Bundarra project (100% owned copper exploration project near Mackay, Queensland);

• EPM 26852 – Prairie Creek Project (91% owned (9% Capgold) gold exploration project near Rockhampton, Queensland); and

• EL 8568 – Red Hill Project (100% owned copper exploration project near Red Hill, New South Wales).

In addition, Duke also has an interest in four New South Wales Cu-Au porphyry tenements currently operated by Lachlan Resources Pty Ltd, a wholly owned subsidiary of ASX listed Emmerson Resources (ASX: ERM). Duke currently holds a 5% interest in two of these tenements and a 10% interest in the other two tenements that is free carried to BFS.

The most advanced target for the Company is the Bundarra project Mt Flora prospect, which has resource development potential for copper, silver and gold, and a recently announced Inferred resource of 16 Mt at an average grade of 0.5% Cu and 6.9 ppm Ag, reported at a 0.2% Cu cut-off grade as classified and reported in accordance with the JORC Code (2012), which equates to 78,000 tonnes of copper and 3.6 million ounces of silver (Table 3). There are currently five other target areas with similar development potential on the Bundarra project as defined by historical mining, geology and geophysics.

		Tonnes (Mt)	Cu%	Ag g/t	Cu tonnes	Ag ounces
Inferred	Oxide	1	0.3	4.2	2,000	87,000
	Sulphide	15	0.5	7.0	76,000	3,500,000
	Total	16	0.5	6.9	78,000	3,600,000

Notes:

• Reported at a 0.2% Cu-equivalent cut-off grade (Cu & Ag)

• The Mineral Resource is classified in accordance with JORC, 2012 edition.

• • The effective date of the Mineral Resource estimate is 25 June 2021. • The Mineral Resource is contained within EMP 26499. • Estimates are rounded to reflect the level of confidence in these resources at the present time. All resources have been rounded to the nearest million tonnes.

• • The Mineral Resource is reported as a global resource

Table 3. Mount Flora Mineral Resource Summary

The exploration and development strategy is to define sufficient resources at Mt Flora and the other prospective targets in the Bundarra project area as a priority to allow feasibility studies to be undertaken to establish an economic mining operation and to delineate additional mineral resources from the current known exploration target areas to grow the project into the future. The Company has also started to test the more conceptual exploration targets on the Prairie Creek project and Red Hill project (see www.duke-exploration.com.aufor more project details). The business development strategy for the Company is to focus on the Bundarra project and simultaneously carry out resource development work on those targets evaluated and ranked as high priority,

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starting at Mt Flora, while exploring the regional potential of the Bundarra pluton. The aim is to discover a pipeline of resource development projects around the Bundarra pluton to add to the Mt Flora project organically.

Competent Person Statement

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Dr James Lally, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy and a Member of The Australian Institute of Geologists.

Dr Lally is employed by Duke Exploration Pty Ltd as a consultant through Mining Associates Pty Ltd. He has over 25 years of experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Lally consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Appendix 1 - JORC Code, 2012 Edition, Checklist of Assessment and Reporting Criteria

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling	•	Nature and quality of sampling (e.g., cut	•	Triple-tube HQ sized diamond core samples to be
techniques		channels, random chips, or specific specialised		collected via diamond drill rig. The recovery of core is
		industry standard measurement tools appropriate		measured and recorded by the driller and checked and
		to the minerals under investigation, such as		corroborated by the logging geologist when metre
		down hole gamma sondes, or handheld XRF		marked.
		instruments, etc). These examples should not be	•	pXRF analysis is conducted to provide indicative
		taken as limiting the broad meaning of sampling.		lithogeochemical data by taking 10 analyses per sample
	•	Include reference to measures taken to ensure		interval. These analyses were taken using an Olympus
		sample representivity and the appropriate		Vanta M series XRF Analyser with all beams enabled for
		calibration of any measurement tools or systems		10 seconds each.
		used.	•	Core to be cut in half, with half retained and half
	•	Aspects of the determination of mineralisation		assayed. Core was crushed and pulverised. Gold was
		that are Material to the Public Report.		assayed by 50g fire assay and AAS (ALS code Au-AA24)
	•	In cases where ‘industry standard’ work has been		and 33 other elements by four acid digestion with ICP-
		done this would be relatively simple (e.g., ‘reverse		AES (ALS code ME-ICP61).
		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 (e.g., submarine nodules)
		maywarrant disclosure of detailed information.
Drilling	•	Drill type (e.g., core, reverse circulation, open-	•	An AED Alton track mounted diamond rig to be used to
techniques		hole hammer, rotary air blast, auger, Bangka,		recover HQ sized core. 3 m rods to be used, and triple
		sonic, etc) and details (e.g., core diameter, triple		tube methods used to ensure sample recovery,
		or standard tube, depth of diamond tails, face-		especially through fractured zones. Core was oriented
		sampling bit or other type, whether core is		using a Reflex tool.
		oriented and if so,bywhat method,etc).
Drill sample	•	Method of recording and assessing core and chip	•	The drilling crew measured each run and record the
recovery		sample recoveries and results assessed.		amount of core recovered. This was double checked by
	•	Measures taken to maximise sample recovery		the geologist when the core was metre marked.
		and ensure representative nature of the samples.	•	Triple tubing was used to ensure maximum core
	•	Whether a relationship exists between sample		recovery
		recovery and grade and whether sample bias
		may have occurred due to preferential loss/gain
		of fine/coarse material.
Logging	•	Whether core and chip samples have been	•	All core to be logged by a geologist at a centimetre
		geologically and geotechnically logged to a level		resolution. Features of interest that were logged
		of detail to support appropriate Mineral Resource		include lithology, alteration, structure and chemical
		estimation, mining studies and metallurgical		composition (acquired through pXRF analysis).
		studies.		Downhole Optical Televiewer, Acoustic Televiewer and
	•	Whether logging is qualitative or quantitative in		petrophysical logging, including magnetic
		nature. Core (or costean, channel, etc)		susceptibility, resistivity, natural gamma and density
		photography.		measurements, to be conducted and integrated with
	•	The total length and percentage of the relevant		geological and geotechnical logging. This logging
		intersections logged.		provides information on structure, contacts, veining
				etc. in the form of dip and dip direction measurements
				at a 10 cm resolution.
			•	Geological logging is considered qualitative while
				structural, geochemical and geotechnical logging via
				pXRF geochemical analysis, downhole Televiewers and
				petrophysical logging is considered quantitative. All
				core trays arephotographed, as well as lithologies of

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				interest in the core.
Sub-sampling	•	If core, whether cut or sawn and whether	•	Core to be sawn in half, with half retained in trays, and
techniques		quarter, half or all core taken.		the other half assayed. Sampling is considered
and sample preparation	• •	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and		representative of the in-situ lithologies collected and the consistent half-core sampling.
		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 beingsampled.
Quality of	•	The nature, quality and appropriateness of the	•	Gold to be assayed by 50g fire assay and AAS (ALS code
assay data		assaying and laboratory procedures used and		Au-AA24) and 33 other elements by four acid digestion
and laboratory	•	whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld		with ICP-AES (ALS code ME-ICP61). ME-ICP61 is a near total method, with only the most resistant minerals partially dissolved.
tests		XRF instruments, etc, the parameters used in	•	A pXRF Vanta m-series was used to analyse each
		determining the analysis including instrument		sample using 3 beams in geochemistry mode. Each
		make and model, reading times, calibrations		beam was set to 10 seconds for a total of 30 seconds
		factors applied and their derivation, etc.		and targeting 39 elements. pXRF readings were taken at
	•	Nature of quality control procedures adopted		a rate of 5 per sample interval on the core. It is
		(e.g., standards, blanks, duplicates, external		recognised this is an imperfect method and is only used
		laboratory checks) and whether acceptable levels		to give an indication of geochemistry while waiting for
		of accuracy (i.e., lack of bias) and precision have		laboratory assay results.
		been established.
Verification	•	The verification of significant intersections by	•	No data were adjusted.
of sampling		either independent or alternative company
and assaying	•	personnel. The use of twinned holes.
	•	Documentation of primary data, data entry
		procedures, data verification, data storage
		(physical and electronic) protocols.
	•	Discuss anyadjustment to assaydata.
Location of	•	Accuracy and quality of surveys used to locate	•	The drillholes were initially located using a Garmin GPS
data points		drill holes (collar and down-hole surveys),		unit. The holes were then surveyed accurately by a
		trenches, mine workings and other locations		surveyor at the end of the program. Downhole surveys
		used in Mineral Resource estimation.		including a downhole gyro was used on all holes.
	•	Specification of the grid system used.	•	The grid system is MGA94 Zone 55
	•	Quality and adequacy of topographic control.	•	Topographic control has been adopted from a recent
				aerial lidar survey. The topographic control is
				considered to be highly accurate.
Data spacing	•	Data spacing for reporting of Exploration Results.	•	The drilling is targeting specific prospective zones with
and	•	Whether the data spacing and distribution is		no pattern drilling planned period.
distribution		sufficient to establish the degree of geological	•	No physical compositing of samples to be done.
		and grade continuity appropriate for the Mineral
		Resource and Ore Reserve estimation
		procedure(s) and classifications applied.
	•	Whether sample compositinghas been applied.
Orientation	•	Whether the orientation of sampling achieves	•	The drilling was planned near perpendicular to the
of data in		unbiased sampling of possible structures and the		geology based on the current geological
relation to geological	•	extent to which this is known, considering the deposit type. If the relationship between the drilling orientation		understanding.
structure		and the orientation of key mineralised structures
		is considered to have introduced a sampling bias,
		this should be assessed and reported if material.
Sample	•	The measures taken to ensure sample security.	•	All samples were collected from the drill rig and taken to
security				a core logging yard located on the same property as the
				drilling. Once logged the core was transported to ALS via
				Followmont. The samples were not left unattended and
				a chain of custodywas maintained throughout the

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				shipping process.
Audits or	•	The results of any audits or reviews of sampling	•	No audits have been conducted by external parties at
reviews		techniques and data.		this stage.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Mineral tenement	•	Type, reference name/number, location and	•	EPM 26499 ‘Bundarra’ is located south of Nebo,
and land tenure		ownership including agreements or material		QLD, and is held 100% by Duke Exploration Ltd.
status		issues with third parties such as joint ventures, partnerships, overriding royalties, native title		Parts of the tenement have native title interests with the Barada Barna people.
		interests, historical sites, wilderness or national	•	No known impediments.
		park and environmental settings.
	•	The security of the tenure held at the time of
		reporting along with any known impediments
		to obtaininga licence to operate in the area.
Exploration done	•	Acknowledgment and appraisal of exploration	•	Production at Mt Flora began in the 1880s.
by other parties		by other parties.		Numerous shafts, to a maximum depth of 38 m,
				adits and surface workings were developed. Mining
				continued during the 1970s. Exploration since the
				1960s included geological mapping (Endeavour Oil
				1974-75) soil surveys (CRA Exploration 1962,
				Endeavour Oil 1974-75, Regency Resources 2005),
				rock chip sampling (Endeavour Oil 1974-75,
				Chesterfield Mining and Exploration 1983, Elliot
				Exploration 1987, Dominion Gold Operations 1991,
				Queensland Metals Corporation 1994), Geophysics
				(magnetics by Planet Metals in 1967 and Elliot
				Exploration 1987, gravity by Carpentaria Gold in
				1984, IP by Endeavour Oil in 1975, and VTEM by
				Regency in 2014). Endeavour Oil drilled six
				diamond drillholes in 1975, and Queensland Metals
				Corporation drilled two percussion holes in 1994.
				Endeavour Oil 1974-75 carried out trial
				underground mining, metallurgical test work and
				resource estimation. Endeavour Oil did extensive
				work at Mt Flora from 1974-76, including detailed
				1:500 scale mapping, rock chip sampling,
				geophysics, drilling and extending adits and shaft
				sinking. Petrology was done on ore material taken
				from the base of a shaft sunk on the Flora lode in
				1972 (Endeavour Oil, 1974). Near surface narrow
				lode mineralisation was detected in the Mt Flora
				area using IP geophysics, and Endeavour Oil
				considered IP to be a useful reconnaissance tool.
				Six diamond holes were drilled to successfully test
				IP anomalies at depth. In 1974-75 Endeavour Oil
				undertook a mining exploration program and used
				this work to complete a resource estimate for the
				Mt Flora lodes.
			•	Elliot Exploration re-assayed the Endeavour Oil
				core for gold in 1987. In 1994 Normandy drilled
				two holes: MFP 01 and MFP 02 near the top of Mt
				Flora, and Regency Mines 2001-2013 did mapping
				and soil sampling, and apparently drilled RC holes
				in 2001, although no data were reported.
Geology	•	Deposit type, geological setting and style of	•	Copper, gold, silver and molybdenum
		mineralisation.		mineralisation at Bundarra is located within 300 m

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				of the contact zone between the Bundarra
				Granodiorite and Back Creek Group sediments.
				Argillite, mudstone, siltstone and sandstone has
				been contact metamorphosed to an andalusite
				hornfels for a 800m wide zone surrounding the
				Bundarra pluton. Mineralisation at Mt Flora occurs
				in structurally controlled lodes, which crosscut the
				granodiorite-sediment contact, with mineralisation
				occurring on both sides of the contact.
				Mineralisation is hosted by faults and fractures,
				associated with sheeted quartz veins, hematite,
				limonite and pyrite. The lodes have massive
				sulphides with high copper percentages (>10%).
				Silver and zinc are present, as well as molybdenum
				and gold. It is interpreted the mineralisation at
				Quorn is similar.
Drill hole	•	A summary of all information material to the	•	See Figure 2 and Table 1 in the main text.
Information		understanding of the exploration results
		including a tabulation of the following
		information for all Material drill holes:
		o easting and northing of the drill hole collar
		o elevation or RL (Reduced Level – elevation
		above sea level in metres) of the drill hole
		collar
		o dip and azimuth of the hole
		o down hole length and interception depth
		o hole length.
	•	If the exclusion of this information is justified on
		the basis that the information is not Material
		and this exclusion does not detract from the
		understanding of the report, the Competent
		Person should clearly explain why this is the
		case.
Data aggregation	•	In reporting Exploration Results, weighting	•	Intervals to be composited in Micromine, using a
methods		averaging techniques, maximum and/or		weighted average technique at a 0.2% Cu cut off,
		minimum grade truncations (e.g., cutting of		allowing 3 m of internal dilution and a 1 m
		high grades) and cut-off grades are usually		minimum width.
		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.
Relationship	•	These relationships are particularly important in	•	These are the first holes drilled into the prospects
between		the reporting of Exploration Results.		and the orientation of the copper mineralisation is
mineralisation widths and	•	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.		not known. The holes are thought to be drilling perpendicular to the mineralisation based off VTEM geophysical models and mapping surrounding
intercept lengths	•	If it is not known and only the down hole		outcrops.
		lengths are reported, there should be a clear
		statement to this effect (e.g., ‘down hole length,
		true width not known’).
Diagrams	•	Appropriate maps and sections (with scales)	•	Relevant figures (maps and cross sections) are
		and tabulations of intercepts should be		included in the body of the report
		included for any significant discovery being
		reported These should include, but not be
		limited to a plan view of drill hole collar
		locations and
	•	appropriate sectional views.
Balanced reporting	•	Where comprehensive reporting of all	•	No assays to report.
		Exploration Results is not practicable,
		representative reporting of both low and high
		grades and/or widths should be practiced to
		avoid misleadingreportingof Exploration

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18

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		Results.
Other substantive	•	Other exploration data, if meaningful and	•	A desktop study was completed by Core
exploration data		material, should be reported including (but not		Metallurgy Pty Ltd, using the most recent drill data
		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		and flotation test work results to perform an order-of magnitude assessment of processing and operating options for a mine at Mt Flora. The goal of the study was to produce indicative flowsheets
		characteristics; potential deleterious or		and the associated capital and operating costs to
		contaminating substances.		subsequently evaluate the feasibility and
				economic viability of producing a copper
				concentrate via conventional open pit mining and
				processing methods from deposits in the
				Bundarra project area.
			•	The cost estimates provided within the review are
				of a preliminary nature and should have an
				expected accuracy range of 25% to 45%. Scoping
				test work to assess metallurgical processing
				options was conducted by Core in May and June
				2019 and these data were used to constrain the
				review.
			•	Key assumptions include all mining will be from
				an open-pit, throughput rate will be 500,000
				tonnes per annum of sulphide ore, a concentrate
				grade for copper of 24% and silver of 398 g/t Ag,
				concentrate filter cake delivered to Mt Isa by road
				transport and a locally based drive in/out
				workforce is available at Mackay or in the
				surrounding area.
			•	The study considered twelve processing options
				with the Base Case capital cost estimate for the
				supply and construction of a concentrator with a
				nominal capacity of 500,000 dry tonnes per
				annum to produce a saleable rougher copper
				concentrate is estimated at approximately A$56.3
				million.
			•	Order of magnitude operating costs for a
				greenfield EPCM and second-hand process plant,
				at A$31-34 per tonne, were significantly lower
				compared to Builder Owner Operator (A$47-51
				per tonne) and Contract Crushing / Direct
				Shipped Ore (A$65-89 per tonne) options.
			•	A copper cut-off grade of 0.2% Cu represents the
				economic cut-off grade for the project using the
				current copper price and cost estimates above.
			•	VTEM inversion modelling undertaken to identify
				conductive trends associated with copper
				mineralisation has provided numerous targets
				around the Bundarra Pluton. The targeting
				method provides the strike and in some cases the
				dip orientation for the geophysical anomaly. The
				VTEM survey was flown from September 23rd to
				October 4th ,2011, and the flight lines were flown
				at 90° – 270°, except for block 2, which was flown
				at 019° – 199° to align with terrain and reduce
				terrain clearance. All inversions were carried out
				using TechnoImaging’s proprietary Glass Earth®
				technology and EMVision software package.
Further work	•	The nature and scale of planned further work	•	Further work will include drilling other prospects
		(e.g., tests for lateral extensions or depth		around the Bundarra Pluton to test results returned
		extensions or large-scale step-out drilling).		from GAIP, 3D IP and VTEM geophysical surveys
	•	Diagrams clearly highlighting the areas of		and pXRF soil surveys.
		possible extensions, including the main	•	A regional scale pXRF soil survey on an 80m by
		geological interpretations and future drilling		720m spacing mapping the surrounding area
		areas, provided this information is not		around the Bundarra Pluton to identifythe

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19

Criteria	JORC Code explanation	Commentary
	commercially sensitive.	additional prospective areas for copper, silver and
		gold mineralisation.

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