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TURNSTONE RESOURCES LTD Capital/Financing Update 2019

Dec 22, 2019

65958_rns_2019-12-22_02abf305-8e6c-4800-b432-7ff2b798d840.pdf

Capital/Financing Update

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December 2019

Davenport Resources Ltd

ASX Announcement 23[rd] December 2019

COMPANY DETAILS

Davenport Resources Limited ABN : 64 153 414 852 ASX CODE: DAV ASX CODE (Options): DAVO FRANKFURT CODE: A2DWXX

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DAVENPORT ANNOUNCES OHMGEBIRGE POTASH RESOURCE OF 325 MILLION TONNES FEASIBILITY STUDY TO COMMENCE.

Ohmgebirge Resource - 325 million tonnes at 13.1% K2O

Highlights

PRINCIPAL AND REGISTERED OFFICE (& Postal Address) Davenport Resources Limited Level 1, 675 Murray Street, West Perth WA 6005 PO Box 1088 West Perth WA 6872

W: www.davenportresources.com.au E: [email protected] P: +61 (08) 9481 0389

Capital Structure

164.4 M Ordinary shares 16.7M Unlisted options 3.1 M Performance Rights 45.0 M Listed Options

  • New JORC 2012-compliant Ohmgebirge Inferred Resource totalling 325 million metric tonnes grading 13.1% K2O.

  • +100% increase over Historic Resource of 150 Mt grading 13.9% K2O.

  • Davenport total resource inventory now 5.3 billion metric tonnes at 10.8% K2O, the largest potash resource in Western Europe.

  • Ohmgebirge resource contains high-grade sylvinite (Hartsalz) grading 14.0 % K2O and carnallitite, a lower-grade potash resource.

  • Scoping studies completed by Davenport’s consultants K-Utec AG, yielded excellent technical and economic results.

Next Steps

  • Davenport has identified Ohmgebirge as a potentially, low-cost, rapid-start project.

  • Davenport is in discussions with potential project partners to develop the Ohmgebirge resource.

  • Davenport will commence work to upgrade the Ohmgebirge Scoping Study to a Feasibility Study commencing in early 2020.

BOARD OF DIRECTORS

Patrick McManus

(Non-Executive Chairman) Dr Chris Gilchrist (Managing Director) Rory Luff (Non-Executive Director)

Dr Reinout Koopmans (Non-Executive Director) Hansjörg Plaggermars (Non-Executive Director)

Davenport Managing Director Dr Chris Gilchrist said:

“Ohmgebirge is our smallest licence area but shows excellent sylvinite grades within close proximity to existing shafts and infrastructure. We believe that Ohmgebirge has the potential to sustain a long-life, 1 million tonne per annum MOP operation through conventional underground mining using simple tried and tested processing routes. The excellent work completed by Micon International, K-Utec AG and our technical team has demonstrated that this is indeed the case.”

December 2019

Davenport Resources Ltd

Davenport Resources ( ASX: DAV ) (“Davenport”, the “Company”) is pleased to announce a JORC 2012 Inferred Resource of 325 million tonnes at 13.1 % potassium oxide (K2O) for its 100%-owned Ohmgebirge Mining Licence in Germany’s South Harz region (Figure 1). The resource, which covers approximately 21.7km[2] , is composed of both Sylvinite (261 million tonnes grading 14.0 % K2O) and Carnallitite (64 million tonnes grading 9.8 % K2O). The resource was confirmed by renowned consultancy Micon International Co Limited (“ Micon ”) based on available historic exploration data.

Technical reviews of the in-ground resources contained within Davenport’s South Harz portfolio have highlighted several areas that have the potential size and grade to sustain new, independent potash projects. These include the entire Ebeleben Mining Licence which is rich in high-grade Sylvinite, the northern part of the Mühlhausen-Nohra Mining Licence which contains extremely thick Carnallitite and Kieserite and the southern portion of the Mühlhausen-Nohra Mining Licence where the deposit contains impressive thicknesses of high grade Sylvinite together with valuable sulphate minerals (Hartsalz) which we believe would support a large, long-life conventional mine.

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Figure 1: Location of Ohmgebirge Mining License area showing adjoining mining license areas MühlhausenKeula, Ebeleben and Küllstedt Exploration Licences. The JORC Inferred Resource of 325 million tonnes for Ohmgebirge is contained within an area covering 21.7km[2] .

The Ohmgebirge area adjoins two historical mines, Bischofferode to the northeast and Söllstedt to the southeast (Figure 2). The Bischofferode mine has been decommissioned and flooded, however the Söllstedt mine is still open and is currently used to store contaminated waste. Two fully-maintained shafts, located close to the Ohmgebirge Mining Licence are operational and currently in use.

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Figure 2: Location of Ohmgebirge Mining Licence showing historical mining areas of now-closed Bischofferode mine and currently open Söllstedt mine.

Geological Background

Exploration commenced within the Ohmgebirge licence in 1894 for potash including cored drill holes and downhole geophysics. The area around the Ohmgebirge mining licence is a well-known potash-bearing area and is adjacent to the, now closed, Bischofferode and the open Bleicherode/Söllstedt Mines. After initial exploration in the early 1900’s, exploration recommenced on Ohmgebirge in earnest in the 1960's and all of the exploration drilling was conducted by the former GDR state mining company.

A total of 14 historical exploration drillholes (including one deviation) have been drilled within the current Ohmgebirge mining licence area (Figure 3). Additional drillholes located around the Ohmgebirge licence were used for the creation of the project database, bringing the total number of drillholes used for the resource modelling work to 41. All the samples were taken during historical drilling campaigns predominantly carried out between 1956 and 1984 with additional holes drilled in 1906-1907. Of the 41 drill holes used in the model, 4 did not intersect the z2KSt potash horizon. The drill hole spacing on Ohmgebirge ranges between 970-2,400m with an average of approximately 1,000m. The drill holes are evenly distributed across the property.

Chemical data exists from 27 diamond core drill holes ('potash drill holes') that produced core samples and mineralogy are available for 35 drill holes. Holes drilled between 1956 and1984 were geophysically logged including calliper, gamma, gamma-gamma and natural gamma downhole logging. Information about the calibration of the geophysical downhole tools is not available at present. Historical drill hole logs from the 1960's drilling programmes include graphical logs that show the adjustment according to the geophysical logging depths.

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Figure 3: Location of exploration drillholes located within and around the Ohmgebirge Mining Licence.

All drill hole sampling was conducted according to the “Kali-Instruktion” (1956 and 1960). All drill holes used in the Ohmgebirge resource model were drilled using diamond core methods. Sampling information is available for drill holes drilled during the 1960-1963 and 1982-1984 exploration campaigns. Where possible, the K2O grade of the potash-bearing horizons was determined on an empirical base using the correlation with the downhole natural gamma log. Samples were taken across all potash-bearing horizons and the total sampled length represents the total thickness of the potash-bearing horizon of the z2KSt. Core sample thickness ranges from 0.13 m to 5.66 m. Over inhomogeneous potash horizons where interlayers of potential waste were included, the minimum sample thickness was 0.5 m and the maximum was 5 m.

Drilling information is available for drill holes made during the 1960-1963 and 1982-1984 exploration campaigns. All drill holes were cored. Holes drilled in the 1960's were drilled using a SIF 1200 rig type. Holes drilled in the 1980's were drilled using a T 50 B rig type using Bentonite mud. Casing was used in both the 1960's and 1980's campaigns. Deviation in the 1980's campaign was a maximum of 3.5m with an average of 1.3m, geophysical logs were used to correct depths and thicknesses.

Sampling was conducted according to the stratigraphic interpretation of the core using the downhole geophysical logging as a depth guide. Axial drilling into the drill core with a spiral drill was conducted to contain pulverised material for chemical and mineralogical analysis. Core samples were geologically

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logged in detail and both full and summary drill hole logs were produced in both written and graphical format. Information recorded on the drill hole logs included lithological depths, stratigraphic interpretation, and sampling information.

Full drill hole logs include a detailed lithological description of the entire drill hole, which was also summarised and graphically portrayed alongside the downhole geophysical logging and assay results. Logs are available for 27 drill holes whilst information regarding mineralogy and stratigraphy were read off historical maps for 14 drill holes.

Sampling was carried out using axial drilling into the drill core with a spiral drill to obtain pulverised material for chemical and mineralogical analysis. Samples were homogenised to ensure a representative sample obtained by sample quartering was assayed. Sample preparation and analysis was carried out in the laboratory of VEB Kombinat Kali research department according to standard procedures. Potassium was analysed by flame photometry following applied standard KALI 97-003/01. Sylvinite samples were milled and sieved for microscopic determination of the degree of disintegration for metallurgical reasons and samples from all salt rocks were also prepared for X-ray analysis of insolubles.

For all exploration work conducted post-1950 in the Davenport licence areas, quality assurance and quality control (QAQC) procedures were conducted by independent state institutions and quality checked by VEB Kombinat Kali company professionals. QAQC was conducted on 34 1960's drill core samples as part of the 1980's campaign using drill core that had been stored in the underground core storage facility at the Sondershausen potash mine. Samples were sent to internal and external laboratories and the analytical results were identical and showed good reproducibility.

Three historical resource estimates have been reported for various areas partly covering the current Ohmgebirge mining licence area. The resources estimates, called reserves at the time, were named as follows: the Worbis reserve area (1963), the Haynrode reserve area (1986) and the Watznauer and Tita reserve area (1996). Because the three historical resource areas are different to Davenport's mining licence the tonnages cannot be compared, however the Sylvinite seam grades reported are comparable to this 2019 resource estimate.

Geology and modelling

The geological model and resource estimation for Ohmgebirge was carried out in Micromine® modelling software, which is internationally recognised software used for modelling stratiform deposits.

The chemical database was composited according to the assigned mineralogy into Sylvinite, Carnallitite or Lower Sylvinite. Lower Sylvinite was not modelled due to lack of continuity. Where some chemical data were missing, a length-weighted average dummy value was assigned. No K2O values had to be inferred in this way.

This database was composited using a minimum trigger of 5% K2O, a maximum total length of waste of 2 m and a 1 m maximum consecutive length of waste. The minimum and maximum X and Y origins used for gridding were 588990 (min X), 5694719 (min Y), 603490 (max X) and 5707219 (max Y). A grid cell size of 100 was used as this best fitted the data when correlated in cross-section. An inverse distance squared gridding algorithm was used, with a circular search area and a 2,000 m search radius to cover the distance between data points, one sector and maximum 1 point per sector. The roof and floor grids were converted to wireframes surfaces and then DTM surfaces for analysis. Lastly, two sets of solid wireframes were created for each seam, namely the Sylvinite Seam and the Carnallitite Seam. The first set of wireframes represents the total extent of potash mineralisation based on complete set of data provided and the second set of wireframes represents the potash seam mineralisation cropped by the project licence boundary.

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The composited assay data was compared against original assay data in cross section. Modelled wireframes were compared against original stratigraphic interpretations and geophysical logs. All correlated well.

The final extents of the modelled Sylvinite seam and the Carnallitite seam is shown in Figure 1 and Figure 2 in JORC Table 1. Cross sections through the Ohmgebirge Mining Licence are shown in Figures 3 & 4 in JORC Table 1.

Mineral Resources

The geological model was constrained by grade >5% K2O and then the mineralogical data were used to split this into the Sylvinite and Carnallitite seams. A minimum cut-off grade of 5% K2O was used as this is considered economic. No top cut was applied as the statistical analysis of the data showed a normal distribution. A box and whisper plot showed that the grade in drill hole Ktf 3/61 was elevated compared to the rest of the assay data, but not to such an extent that warranted capping. The composited assay data were compared against original assay data in cross section. Modelled wireframes were compared against original stratigraphic interpretations and geophysical logs. All correlated well.

The seam thickness is >1.5 m across Ohmgebirge and is considered amenable to potential mining underground.

The bulk density for both the Sylvinite and Carnallitite seams was reported in Bewertung der Vorratssituation fur das Bergwerkseigentum - Ohmgebirge, Watznauer & Tita (1996). The bulk density for each sample was calculated based on the derived mineralogical composition. The average density for Sylvinite is 2.23 t/m[3] and 1.89 t/m[3] for the Carnallitite seam.

The economic potash deposit covers almost the entire Ohmgebirge mining licence, with a small, ovalshaped barren zone in the west that continues approximately 1 km to the west of the mining licence. Based on interpretation of drill hole data and historical plan maps, the mineralised z2KSt continues to the north, south, east and west of Ohmgebirge. The mineral resource has been restricted by a minimum grade cut-off of >5% K2O.

The total mineral resource area for Ohmgebirge is approximately 21.7 km[2] and the total Inferred Mineral Resources tonnage is 325 Mt of which there is 43 Mt of K2O. The minimum depth from surface to the roof of the economic potash is ±440 m and the maximum depth to the base of the potash seam is ±822 m.

The Ohmgebirge exploration licence area has been classified as an Inferred Resource based on the quality and extents of the drilling database that are sufficient to imply geological grade and continuity for eventual economic extraction. A 15% geological loss has been applied to account for the Inferred classification of the resources. Figure 1 in JORC Table 1 highlights the extents of the Inferred mineral resources.

The 23[rd] December 2019 Inferred Mineral Resources for the Ohmgebirge Mining Licence area are presented in Table 1.

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Table 1: Ohmgebirge Mineral Resources, December 2019 (JORC, 2012)

Seam JORC Geol
Loss
(%)
Tonnage
(Mt)
K2O
(%)
K2O
(Mt)
Insols
(%)
KCl
(%)
Mg
(%)
Na
(%)
SO4
(%)

ρ
3
Category g/cm
Sylvinite Inferred 2.23 15 261 13.96 36 1.18 20.64 1.06 21.68 10.34
Carnallitite Inferred 1.89 15 64 9.81 6 Insufficient data
Total
**Ohmgebirge **
Inferred 325 13.14 43 1.18 20.64 1.06 21.68 10.34

Notes:

  1. Mineral resources presented according to ore type (mineralogy) and not as per stratigraphy.

  2. Minimum seam thickness considered for resources is 1 m.

  3. Minimum cut-off grade ≥5% K2O.

  4. 15% geological loss applied to account for potential unknown geological losses for Inferred resources.

  5. Data source: historical state records (BVVG) checked and verified.

  6. Inferred resources rounded down to nearest 100,000 t.

  7. Errors may exist due to rounding.

The total JORC-compliant Inferred Resources declared by Micon as a result of modelling the drill hole data from Ohmgebirge, Ebeleben, the Mühlhausen-Keula sub-area, the Nohra-Elende sub-area and for the Küllstedt Exploration Licence area are shown in Table 2 below. Total resources held under the JORC 2012 Inferred category now stand at approximately 5.27 billion tonnes containing 567 Mt K2O. Davenport anticipates that this resource could increase with additional exploration drilling within the portfolio of licences.

Table 2: Total JORC 2012 Inferred Resources to December 2019 held by Davenport.

Seam Tonnage
(Mt)
K2O
(%)
K2O
(Mt)
Sylvinite 324 15.6 50
Carnallitite 253 7.5 19
Total Ebeleben 577 12.1 69
Sylvinite 834 12.1 101
Carnallitite 296 8.2 2
Total Mühlhausen-Keula 1,130 11.1 125
Sylvinite 101 14.2 14
Carnallitite 1,597 9.4 150
Total Nohra-Elende 1,698 9.7 165
Hartsalz(Sylviniteplus sulphate minerals) 333 13.0 43
Carnallitite 1,205 10.1 122
Total Küllstedt 1,538 10.7 165
Sylvinite 261 13.9 36
Carnallitite 64 9.8 6
**Total Ohmgebirge ** 325 13.1 43
Total Davenport JORC Inferred Resources to Date 5,268 10.8 567

Ongoing & Future Work

The next step for Davenport is to continue to add value to the project portfolio through a combination of confirmatory drilling and advanced-stage technical and economic studies. Confirmation drilling sites have recently been selected and the next step is to engage with local authorities and landowners to obtain permission to drill. Drilling within the Ohmgebirge licence will assist in upgrading JORC Inferred Resources to JORC Indicated Resources.

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Discussions are ongoing with internationally renowned consultants with regards to commencing advanced economic studies on the most prospective areas within the Davenport licence portfolio in which several stand-alone potash extraction projects have been identified. Davenport expects to release an update on these work plans for 2020 in the near future.

INVESTOR & MEDIA ENQUIRIES

Dr Chris Gilchrist - Managing Director Davenport Resources Ltd +353 41 988 3409 +353 87 687 9886 [email protected]

Nathan Ryan – Managing Director NWR Communications +61 420 582 887 [email protected]

Competent Person Statement

Elizabeth de Klerk M.Sc., Pr.Sci.Nat., SAIMM., Micon’s Director, Senior Geologist and Competent Person visited the South Harz Potash project on 12[th] to 16[th] February 2018, 6[th] to 8[th] March 2018 and 15[th] to 17[th] October 2019. During the initial site visit, the historical drilling area and laboratory facilities at K- Utec Salt Technologies Ltd in Sondershausen were visited. The original drill hole logs, reports, maps and cross-sections held in the Bodenverwertungs and verwaltungs GmbH (BVVG) archives in Berlin were also inspected. In addition, Mrs. de Klerk interviewed the Ercosplan team at their offices in Erfurt to understand how the data were used to compile an Excel database and generate an initial Exploration Target for Mühlhausen-Nohra. The second and third site visits involved more time spent at K-Utec inspecting additional historical records for Mühlhausen-Nohra and Ohmgebirge held in the archives at the offices of K-Utec Salt Technologies Ltd in Sondershausen. The third visit also included an overview of the surrounding area and the shafts at the Sollstedt Mine.

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Page 1 of 31 of JORC Code, 2012 Edition Table 1 Ohmgebirge Mining Licence Resource.

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JORC Code, 2012 Edition – Table 1

Ohmgebirge Mining License Davenport Resources Ltd

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

Page 2 of 31 of JORC Code, 2012 Edition Table 1 Ohmgebirge Mining Licence Resource

Davenport Resources Ltd

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Figure 1: Drill Hole Plan for the Ohmgebirge Licence.

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Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

Page 3 of 31 of JORC Code, 2012 Edition Table 1 Ohmgebirge Mining Licence Resource

Davenport Resources Ltd

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Figure 2: 3D rotated view of modelled wireframes for the Ohmgebirge Licence area

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Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

Page 4 of 31 of JORC Code, 2012 Edition Table 1 Ohmgebirge Mining Licence Resource

Davenport Resources Ltd

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Figure 3: East‐West cross section, Ohmgebirge Licence area

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Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

Page 5 of 31 of JORC Code, 2012 Edition Table 1 Ohmgebirge Mining Licence Resource

Davenport Resources Ltd

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Figure 4: Northeast‐Southwest cross section, Ohmgebirge Licence area

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Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

Page 6 of 31 of JORC Code, 2012 Edition Table 1 Ohmgebirge Mining Licence Resource

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Figure 5: K2O Grade Distribution in the Sylvinite Seam, Ohmgebirge Licence area

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Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

Page 7 of 31 of JORC Code, 2012 Edition Table 1 Ohmgebirge Mining Licence Resource

Davenport Resources Ltd

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Figure 6: Sylvinite Seam Floor Elevation, Ohmgebirge Licence area

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Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

Page 8 of 31 of JORC Code, 2012 Edition Table 1 Ohmgebirge Mining Licence Resource

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Figure 7: Thickness Distribution in the Sylvinite Seam, Ohmgebirge Licence area

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Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

Page 9 of 31 of JORC Code, 2012 Edition Table 1 Küllstedt Exploration Licence Resource

Davenport Resources Ltd

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Section 1 Sampling Techniques and Data

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

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.
The data base used to model Ohmgebirge was
created from original pdf copies of the historical drill
hole logs and assay results in conjunction with
numerous supporting maps. All samples were taken
during historical drilling campaigns predominantly
carried out between 1956 and 1984 with additional
holes drilled in 1906‐1907. Of the 41 drill holes used
in the model, 4 did not intersect the z2KSt. Chemical
data exists from 27 diamond core drill holes ('potash
drill holes') that produced core samples and
mineralogy is available for 35 drill holes, 14 of which
occur within the Ohmgebirge mining licence area.
Include reference to measures
taken to ensure sample
retrospectivity and the
appropriate calibration of any
measurement tools or systems
used.
Holes drilled between 1956 and1984 were
geophysically logged including calliper, gamma,
gamma‐gamma and natural gamma downhole
logging. Information about the calibration of the
geophysical downhole tools is not available at
present. Historical drill hole logs from the 1960's
drilling programmes include graphical logs that show
the adjustment according to the geophysical logging
depths.
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
All drill hole sampling was conducted according to the
Kali‐Instruktion (1956 and 1960). All drill holes used
in the Ohmgebirge resource model were drilled using
diamond core methods. Sampling information is
available for drill holes drilled during the 1960‐1963
and 1982‐1984 exploration campaigns. Where
possible, the K2O grade of the potash‐bearing
horizons was determined on an empirical base using
the correlation with the downhole natural gamma log.
Samples were taken across all potash‐bearing
horizons and the total sampled length represents the
total thickness of the potash‐bearing horizon of the
z2KSt. Core sample thickness ranges from 0.13 m to
5.66 m. Over inhomogeneous potash horizons where
interlayers of potential waste were included, the
minimum sample thickness was 0.5 m and the
maximum was 5 m. Samplepreparation and analysis

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

Page 10 of 31 of JORC Code, 2012 Edition Table 1 Küllstedt Exploration Licence Resource

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problems. Unusual commodities
or mineralisation types (eg
submarine nodules) may
warrant disclosure of detailed
information.
was carried out in the laboratory of VEB Kombinat Kali
research department according to standard
procedures. Potassium was analysed by flame
photometry following applied standard KALI 97‐
003/01. Sylvinite samples were milled and sieved for
microscopic determination of the degree of
disintegration for metallurgical reasons and samples
from all salt rocks were also prepared for X‐ray
analysis of insolubles.
Drilling
techniques
Drill type (eg core, reverse
circulation, open‐hole hammer,
rotary air blast, auger, Bangka,
sonic, etc) and details (eg core
diameter, triple or standard
tube, depth of diamond tails,
face‐sampling bit or other type,
whether core is oriented and if
so, by what method, etc).
Drilling information is available for drill holes drilled
during the 1960‐1963 and 1982‐1984 exploration
campaigns. All drill holes were cored. Holes drilled in
the 1960's were drilled using a SIF 1200 rig type.
Holes drilled in the 1980's were drilled using a T 50 B
rig type using bentonite mud. Casing was used in both
1960's and 1980's campaigns. Deviation in the 1980's
campaign was a maximum of 3.5m with an average of
1.3m, geophysical logs were used to correct depths
and thickness.
Drill sample
recovery
Method of recording and
assessing core and chip sample
recoveries and results assessed.
It is apparent that the core recovery was monitored
by the project geologist on site at the time of drilling
and this recorded in the historical logs and is available
for holes Ktf 2/61, Ktf 3/62, Wr 1/61, Ktf 4/83, Ktf
5/83, Ktf 6 and 6a/84, and Ktf 8/84. Core recoveries
through the z2KSt unit ranged from 97‐100%. with the
exception of hole Ktf 6/84, which was subsequently
deviated with Ktf 6a/84.
Measures taken to maximise
sample recovery and ensure
representative nature of the
samples.
Casing was used in the 1960's and 1980's campaigns
and drill hole Ktf 6/84 was stopped due to poor
recovery and a deviation was drilled, Ktf 6a/84.
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.
Sampling was conducted according to the
stratigraphic interpretation of the core using the
downhole geophysical logging as a depth guide. Axial
drilling into the drill core with a spiral drill was
conducted to contain pulverised material for chemical
and mineralogical analysis.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

Page 11 of 31 of JORC Code, 2012 Edition Table 1 Küllstedt Exploration Licence Resource

Davenport Resources Ltd

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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.
Core samples were geologically logged in detail and
both full and summary drill hole logs were produced
in both written and graphical format. Information
recorded on the drill hole logs included lithological
depths, stratigraphic interpretation, and sampling
information.
Whether logging is qualitative
or quantitative in nature. Core
(or costean, channel, etc)
photography.
Full drill hole logs include a detailed lithological
description of the entire drill hole, which was also
summarised and graphically portrayed alongside the
downhole geophysical logging and assay results. Logs
are available for 27 drill holes whilst information
regarding mineralogy and stratigraphy were read of
historical maps for 14 drill holes.
The total length and percentage
of the relevant intersections
logged.
The complete core intersection was logged on a
millimetre scale.
Sub‐
sampling
techniques
and sample
preparation
If core, whether cut or sawn and
whether quarter, half or all core
taken.
Axial drilling into the drill core with a spiral drill was
conducted to obtain pulverised material for chemical
and mineralogical analysis.
If non‐core, whether riffled,
tube sampled, rotary split, etc
and whether sampled wet or
dry.
Not applicable.
For all sample types, the nature,
quality and appropriateness of
the sample preparation
technique.
All drill‐hole sampling was conducted according to the
Kali‐Instruktion (1956 and 1960).
Quality control procedures
adopted for all sub‐sampling
stages to maximise
representivity of samples.
Samples were homogenised to ensure a
representative sample obtained by sample quartering
was assayed.
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.
No field duplicates were taken. Thicknesses of the
potash‐bearing horizons were confirmed by the
geophysical logging and the full length of the potash
was sampled.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

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Whether sample sizes are
appropriate to the grain size of
the material being sampled.
Sample sizes are considered appropriate to the
material being sampled, which is bulk mineralisation.
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.
Samples were sent to the VEB Kombinat Foundation
of Potash Research Institute, now known as K‐Utec
AG Salt Technologies. Chemical analysis was carried
out according to the Kali 97‐003/01 standard using
potassium flame photometry. Transmitted light
investigation in bright field for thin sections was
conducted.
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.
This information is not currently known, but may be
available in untranslated historical German
documents.
Nature of quality control
procedures adopted (eg
standards, blanks, duplicates,
external laboratory checks) and
whether acceptable levels of
accuracy (ie lack of bias) and
precision have been established.
Quality control was insured by technical
representatives from several state institutions at the
time who checked the sampling procedures and
laboratory results.
Verification
of sampling
and assaying
The verification of significant
intersections by either
independent or alternative
company personnel.
For all exploration work conducted post‐1950 in the
Davenport licence areas, quality assurance and quality
control (QAQC) procedures were conducted by
independent state institutions and quality checked by
VEB Kombinat Kali company professionals. QAQC was
conducted on 34 1960's drill core samples as part of
the 1980's campaign using drill core that had been
stored in the underground core storage facility at the
Sondershausen potash mine. Samples were sent to
internal and external laboratories and the analytical
results were identical and showed good
reproducibility.
The use of twinned holes. No twin drilling has taken place although the
deviation of hole Ktf 6/84 with Ktf 6a/84 compare
favourable despite the low poor recovery in Ktf 6/84.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

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Documentation of primary data,
data entry procedures, data
verification, data storage
(physical and electronic)
protocols.
Original drill hole logs were recorded on paper, using
a combination of handwritten and typed records.
Copies of the drill hole logs (including the summary
logs and geophysical logging etc) were distributed to
several institutions around Germany, including BVVG,
Ercosplan and K‐Utec, many of which are still stored
in the archives and available for review. The header
for each drill hole lists have not been located, but
those that are have been were reviewed in person by
Micon and Davenport. No original drill core or sample
pulps are still available.
Discuss any adjustment to assay
data.
Assay data was not adjusted in any way.
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.
Records of collar positions were obtained from drill
hole logs and state archives. Details regarding collars
surveys are not available and may be recorded in the
historical German exploration reports. However,
considering the drilling took place at the same time
and by the same people as Davenport's other licence
areas in the South Hartz Basin property, Micon
assumes the collar positions were surveyed using a
similar technique. Drill hole collars were surveyed by
the state surveyor subsequent to drilling and given
with centimetre to decimetre accuracy.
Specification of the grid system
used.
Drill hole coordinates were recorded in local a
German coordinate system, which is a 3‐degree Gaus
Kruger zone 4 projection with a DHDN datum and an
East Germany local transformation to 2 m (EPSG‐Code
31, 468). For the purposes of this resource estimation
the coordinates have been converted to UTM Zone 32
North.
Quality and adequacy of
topographic control.
No topographic survey exists for the project area,
which is flat lying to gently undulating.
Data spacing
and
distribution
Data spacing for reporting of
Exploration Results.
The drill hole spacing on Ohmgebirge ranges between
970‐2,400m with an average of approximately
1,000m. The drill holes are evenly distributed across
the property

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

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Whether the data spacing and
distribution is sufficient to
establish the degree of
geological and grade continuity
appropriate for the Mineral
Resource and Ore Reserve
estimation procedure(s) and
classifications applied.
The spacing of drill holes and samples is considered
sufficient to imply geological and grade continuity
based on information obtained from historical drill
holes and samples.
Whether sample compositing
has been applied.
Samples were not composited prior to laboratory test
work.
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.
All drill holes are vertical with only minor deviations at
depth as discussed above. The potash‐bearing
horizons are horizontal with only minor gentle
undulations and the sample thicknesses are
considered to represent true thickness without
requiring correction.
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.
The potash seam at Ohmgebirge is horizontal to sub‐
horizontal and all thicknesses from the vertical drill
holes have been treated as true thickness.
Sample
security
The measures taken to ensure
sample security.
No information is available about sample security,
although it is noted that the historical drilling
programmes were conducted with a very high level of
technical capability with experienced geologists and
drillers. The laboratory used (K‐Utec) is regarded as
one of the most experienced salt technological
facilities in the world.
Audits or
reviews
The results of any audits or
reviews of sampling techniques
and data.
Original analytical results retained in the K‐Utec
archives were reviewed where possible and compared
with historical records stored at the BVVG archives.
No original core or sample material is available,
however, the available data is of sufficient quality to
support an Inferred Resource.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

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Section 2 Reporting of Exploration Results

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

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.
Davenport Resources Limited is a publicly listed
company on the Australian Securities Exchange
and holds the Küllstedt exploration licence
through its wholly owned subsidiary East
Exploration GmbH. The Ohmgebirge mining
licence is located within the South Harz Potash
District of the Thuringian Basin, Germany.
The security of the tenure held at
the time of reporting along with
any known impediments to
obtaining a licence to operate in
the area.
There are no known impediments to the security
of the tenure that Davenport have over the
Ohmgebirge Mining Licence area. The
Ohmgebirge Mining Licence is perpetual in
nature, not subject to expiry and is valid to
explore for and produce ‘potash, including
(associated) brine’ with no applicable statutory
royalties. The Ohmgebirge Mining Licence Deed
No. is 1281/2017W and has an area of 24,840,100
m2 (24.84 km²).
Exploration
done by other
parties
Acknowledgment and appraisal of
exploration by other parties.
All of the exploration conducted on Ohmgebirge
is historical. According to historical reports,
exploration commenced within the Ohmgebirge
mining licence in 1894 for potash including cored
drill holes and downhole geophysics. The area
around the Ohmgebige mining licence is a well
known potash‐bearing area and is adjacent to the
now closed Bischofferode and
Bleicherode/Sollstedt Mines. After initial
exploration in the early 1900s exploration
recommenced on Ohmgebirge in earnest in the
1960's and all of the exploration drilling was
conducted by the former GDR. Various parties
were involved, most of which combined to form
VEB Kombinat after reunification. A total of 14
historical exploration drillholes (including one
deviation) have been drilled within the current
Ohmgebirge mining licence area.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

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Criteria JORC Code explanation Commentary
Geology Deposit type, geological setting
and style of mineralisation.
The Ohmgebirge mining licence is located in the
Südharz (South Harz) Potash District in the north‐
western extent of the Thuringian sedimentary
basin, which has been separated by the uplift of
the northerly Harz Mountains from the South
Permian Basin (SPB). The regional stratigraphy of
the South Permian Basin is fairly well understood
with a pre‐Variscan basement (Upper
Carboniferous and older rocks) and a transition
horizon of Upper Carboniferous to Lower Permian
lying beneath an expansive sequence of evaporite
rocks of the Upper Permian succession. These
evaporite deposits are assigned to the Zechstein
Group, and host the target potash mineralisation
of the South Harz Potash District which occurs on
the Ohmgebirge mining licence. The potash‐
bearing target Zechstein Group consists of seven
depositional cycles with the potash mineralisation
of the South Harz Potash District hosted within
the second cycle, the Staßfurt Formation (Z2). The
Z2 is further sub‐divided into horizons, of which
the Kaliflöz Staßfurt (z2KSt) hosts potentially
economic potash. The z2KSt is split into a
Hanging Wall Group that has 11 to 19 horizons of
finely layered potassium salts and a Footwall
Group that has 1 to 10 coarsely layered
potassium salts and thick halite layers.
Mineralised z2KSt occurs across almost the whole
of the Ohmgebirge mining licence, with an area to
the west that is barren. Figure XX indicates the
interpreted extents of the potash basin on
Ohmgebirge. The z2KSt is present in 35 drill holes
used in the Ohmgebirge model, 12 of which exist
within the licence area. The mineralogy on
Ohmgebirge is dominated by Sylvite with
Carnallite intersected in only one hole within the
licence area. The sylvinite seam has been
modelled as one horizon, and was historical
known as Hartsalz, and the carnallitite seam has
been modelled separately. A major graben has
been historically mapped within the Ohmgebirge
mining licence trending NNE‐SSW with offsets of
150‐250m. The results of the graben have been
logged in the downholegeophysical logs of drill

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

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Criteria JORC Code explanation JORC Code explanation JORC Code explanation JORC Code explanation JORC Code explanation Commentary Commentary Commentary Commentary Commentary Commentary Commentary
holes on Ohmgebirge with noted steeper
bedding, dipping joints and deformation in the
strata accompanied by gases. In the centre of the
graben the Leine‐Steinsalz through to the Aller‐
Steinsalz units have thickened whilst the rock salt
units have thinned resulting in a weakened
hanging‐wall. No evidence of displacement in the
z2KSt unit have been modelled.
Drill hole
Information





A summary of all information
material to the understanding of
the exploration results including a
tabulation of the following
information for all Material drill
holes:
The drill hole database for Ohmgebirge is made
up of 41 historical drill holes. A table showing the
key drill hole information can be found below.
Hole ID Easting
(UTM
32N)
Northin
g (UTM
32N)
RL EOH
(m)
Seam z2KSt Intersection
(m)
Width
(m)
Average
K2O
Grade
(%)
Location
From To
Kal Bdst
1/62
593622 5702593 326 753 Not i ntersected Ohmgebirge
Licence
Kal Bfo
1/1908
598718 5705272 309 601 Sylvinite 571.5 581.5 10.0 15.0 Off licence
Kal Bfo
2/1910
598220 5705241 378 611 Sylvinite 576.5 586.5 10.0 15.0 Off licence
Kal Brm
1/58
594396 5704039 298 620 Sylvinite 569.9 578.0 8.1 13.6 Off licence
Kal Brm
2/59
595396 5705282 378 589 Sylvinite 508.3 513.0 4.7 11.0 Off licence
Kal Brm
2/59
Carnallitite 513.0 519.9 6.9 7.1 Off licence
Kal Brm
3/58
593248 5705667 378 800 Sylvinite 403.5 413.5 10.0 10.2 Off licence
Kal Brm
4/1961
592757 5704573 378 530 Sylvinite 508.0 518.0 10.0 15.0 Off licence
Kal Fu 05 591588 5701662 382 800 Sylvinite 547.5 557.3 9.9 8.3 Off licence
Kal Fu 06 590204 5701498 381 800 Sylvinite 572.0 575.0 3.0 7.5 Off licence
Kal Fu 06
Ferna 1
591770 5700541 280 800 Sylvinite 550.2 563.1 13.0 9.5 Off licence
Kal Holu
1/56
596070 5705125 288 766 Sylvinite 643.9 645.0 1.1 6.1 Off licence
Kal Holu
1/56
Carnallitite 645.0 648.0 3.1 10.0 Off licence
Kal Holu
1/56
Lower
Sylvinite
648.0 653.5 5.5 4.7 Off licence
Kal Holu
2/1957
596690 5705931 378 701 Sylvinite 575.4 585.4 10.0 10.2 Off licence
Kal Hyo
4/61
600303 5699208 497 800 Sylvinite 709.3 720.8 11.6 13.5 Off licence
Kal Kcf
1/60
594888 5700354 461 837 Not i ntersected Ohmgebirge
Licence
Kal Ktf
1/61
596250 5702114 445 823 Sylvinite 811.2 814.2 3.0 10.2 Off licence
Kal Ktf
2/61
597158 5700709 412 869 Sylvinite 829.6 834.6 5.1 13.5 Ohmgebirge
Licence
Kal Ktf
3/62
597080 5699325 463 884 Sylvinite 840.9 842.7 1.8 17.7 Ohmgebirge
Licence
Kal Ktf
4/83
596845 5698322 463 876 Sylvinite 823.4 848.2 24.8 14.6 Ohmgebirge
Licence

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

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Criteria JORC Code explanation JORC Code explanation JORC Code explanation JORC Code explanation JORC Code explanation Commentary Commentary Commentary Commentary Commentary Commentary
Kal Ktf
5/83
596009 5699281 509 814 Sylvinite 785.2 788.2 3.0 12.4 Ohmgebirge
Licence
Kal Ktf
6/84*
596217 5700963 479 878 Sylvinite 832.3 839.5 5.3 15.0 Ohmgebirge
Licence
Kal Ktf
6a/84
596217 5700963 426 847 Sylvinite 833.7 840.7 7.0 16.2 Ohmgebirge
Licence
Kal Ktf
7/81
598070 5701903 378 985 Sylvinite 871.0 883.8 12.8 14.4 Off licence
Kal Ktf
8/84
595220 5701589 285 849 Sylvinite 808.1 821.4 13.3 13.2 Ohmgebirge
Licence
Kal Ktf
9/84
595691 5703446 378 798 Sylvinite 692.7 702.4 9.7 13.6 Off licence
Kal Marie 600699 5698610 319 800 Not intersected (stopped short?) Off licence
Kal Tst
1/1907
591020 5703227 378 582 Sylvinite 554.2 555.82 1.62 10.1 Off licence
Kal Tst
1/1907
Carnallitite 555.82 561.45 5.63 6.3 Off licence
Kal Tst
1/1907
Lower
Sylvinite
561.45 569.6 8.15 7.2 Off licence
Kal Tst
II/07
590124 5702490 349 800 Sylvinite 492.75 497.75 5 5.2 Off licence
Kal Wde
1/1906
591615 5703927 346 558 Sylvinite 544.97 558 13.03 8.56 Off licence
Kal Wr 06
Zuckerhut
594838 5706137 322 800 Sylvinite 502.88 524.95 22.07 7.11 Off licence
Kal Wr
1/1905
597708 5705201 247 616 Sylvinite 570.9 580.9 10 15 Off licence
Kal Wr
1/61
595487 5697974 359 766 Sylvinite 730.73 732.38 1.65 5.78 Ohmgebirge
Licence
Kal Wr
1906
Emmy
593959 5703936 275 460 Not intersected Ohmgebirge
Licence
Kal Wr
2/1906
593889 5705576 338 459 Sylvinite 425.5 438.2 12.7 8.84 Off licence
Kal Wr 6
Liese
599617 5700583 357 662 Sylvinite 651.7 657.2 5.5 15.72 Ohmgebirge
Licence
Kal Wr
6/1906
Albert
594754 5704976 289 397 Not information Off licence
Kal Wr 7
Martha
598467 5698259 378 726 Sylvinite 672.24 673.74 1.5 14.37 Ohmgebirge
Licence
Kal Wr 7
Martha
Carnallitite 673.74 691.74 18 9.81 Ohmgebirge
Licence
Kal Wr 7
Martha
Lower
Sylvinite
691.74 692.24 0.5 18.94 Ohmgebirge
Licence
Kal Wr 8
Frejya
596898 5696969 340 721 Sylvinite 704.5 707.5 3 7.5 Ohmgebirge
Licence
Kal Wr 9
Lotte
599769 5696452 309 572 Sylvinite 525 526.56 1.56 16.3 Off licence
Kal Wr 9
Lotte
Carnallitite 526.56 535.6 9.04 6.9 Off licence
Kal Wr
Roland
592887 5699954 378 800 Sylvinite 614 623.5 9.5 10.5 Off licence
Kal Wzg
2/1906
593289 5700348 378 665 Not
intersected
649.1 653 3.9 0 Off licence
Kal Wzg
3/1906
592950 5700778 378 601 Not
intersected
597.08 599.38 2.3 0 Off licence
*1.96m core loss with no
assay

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

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Criteria JORC Code explanation Commentary
Data
aggregation
methods
In reporting Exploration Results,
weighting averaging techniques,
maximum and/or minimum grade
truncations (eg cutting of high
grades) and cut‐off grades are
usually Material and should be
stated.
The chemical analysis for Ohmgebirge was
composited according to stratigraphy (z2KSt). A
minimum cut‐off grade of 5% K2O was applied to
delineate the limits of the potash‐bearing horizon
within the z2KSt. A weighted average K2O grade
for each drill hole was calculated against sample
length.
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.
Waste was included in the grade composite with
a 2 m maximum total length of waste and a 1 m
maximum consecutive length of waste allowed.
The assumptions used for any
reporting of metal equivalent
values should be clearly stated.
No metal equivalents were used or reported.
Relationship
between
mineralisatio
n widths and
intercept
lengths
These relationships are particularly
important in the reporting of
Exploration Results.
All drill holes are vertical with only minor
deviations at depth as discussed above. The
potash‐bearing horizons are horizontal with only
minor gentle undulations and the sample
thicknesses are considered to represent true
thickness without requiring correction.
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 (eg ‘down hole length, true
width not known’).
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.
Diagrams included in the body of the report.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

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Criteria JORC Code explanation Commentary
Balanced
reporting
Where comprehensive reporting of
all Exploration Results is not
practicable, representative
reporting of both low and high
grades and/or widths should be
practiced to avoid misleading
reporting of Exploration Results.
All available drill hole information was used.
Ohmgebirge has been reported as a mineral
resource, see Section 3 of Table 1.
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.
Acoustic televiewer measurements taken
downhole show steeply dipping (70‐90 degrees)
joints in the stratigraphic formations, associated
with the Ohmgebirge graben. No other
exploration was conducted on the Ohmgebirge
licence area and seismics was deemed irrelevant
to the internal structure of the Zechstein‐aged
rocks.
Further work The nature and scale of planned
further work (eg tests for lateral
extensions or depth extensions or
large‐scale step‐out drilling).
Future work should include twin drilling to
confirm the historical grades and investigate
geotechnical characteristics in the region of the
Ohmgebirge graben.
Diagrams clearly highlighting the
areas of possible extensions,
including the main geological
interpretations and future drilling
areas, provided this information is
not commercially sensitive.
The mineralisation modelled on Ohmgebirge
covers almost the entire licence area, Potential
expansion could only be outside of Davenport's
current mining licence to the north and west.
Positions of suggested holes to be twinned are
included in the report and shown on Figure 1
herein.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

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Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

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.
The database used to create the geological model
and mineral resource estimation was created
from manual data entry of hard copy historical
drill hole logs and exploration records. The Excel
databases for Ohmgebirge was cross‐checked
against the original drill hole logs stored in the K‐
Utec archives in Sondershausen in October 2019.
Data validation procedures used. When the Excel database is imported into
Micromine® modelling software, a data validation
exercise is run that includes checking for missing
samples, mis‐matching samples and stratigraphy
intersections, duplicate records and overlapping
from‐to depths. In addition, and where possible
the sum of chemical compounds was checked to
ensure a total of 100%.
Site visits Comment on any site visits
undertaken by the Competent
Person and the outcome of those
visits.
The Competent Person visited Ohmgebirge and
the K‐Utec archives, as well as the surrounding
area where there are currently operating and now
dormant Potash mines from the 15th‐17th
October 2019. Previous trips to the South Hartz
Basin have been made for Davenport since 2017.
If no site visits have been
undertaken indicate why this is the
case.
Not applicable
Geological
interpretation
Confidence in (or conversely, the
uncertainty of ) the geological
interpretation of the mineral
deposit.
The confidence in the data used and geological
interpretation of the potash deposit is high due to
the strict guidelines followed during the historical
exploration and adherence to the Kali‐Instruktion.
In addition, the geological interpretation was
checked by several geologists during both the
1960s and 1980s drilling campaigns. Lastly, the
depths recorded in the lithological descriptions
and geophysical logs correspond, providing
confidence in the continuity of the potash
horizons andgrade. A 15%geological loss has

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

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Criteria JORC Code explanation Commentary
been applied to account for the Inferred
classification of the resources.
Nature of the data used and of any
assumptions made.
Since there are no records yet in English about
some of the sampling protocols and sample
security, assumptions have been made that this
was done to a high standard based on the
historical records and information known about
the other South Hartz licence areas that were
explored during the same period by the same
companies.
The effect, if any, of alternative
interpretations on Mineral
Resource estimation.
Three historical resource estimates have been
reported for various areas partly covering the
current Ohmgebirge mining licence area. The
resources estimates, called reserves at the time,
were named as follows: the Worbis reserve area
(1963), the Haynrode reserve area (1986) and the
Watznauer and Tita reserve area (1996). Because
the three historical resource areas are different to
Davenport's mining licence the tonnages cannot
be compared, however the Sylvinite seam grades
reported are comparable to this 2019 resource
estimate.
The use of geology in guiding and
controlling Mineral Resource
estimation.
The mineralisation is predominately confined to
the Kalifloz Stassfurt (z2KSt) horizon but is known
to occur in Decksteinsalz (z2NAr) and Stassfurt‐
Steinsalz (z2NA) formations as well. As such a cut‐
off grade of 5% K2O was applied during modelling.
The factors affecting continuity
both of grade and geology.
There is very little variation in mineralogy or
grade across Ohmgebirge. Sylvinite is dominant
and apart from a barren zone to the west covers
the entire mining licence. One drill hole (Kal Wr 7
Martha) intersected a thick unit of Carnallitite
below the Sylvinite as well as a thin Lower
Sylvinite seam below the Carnallitite. The K2O
grade in the Sylvinite across the Ohmgebirge
mining licence is predominantly >12.5%.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

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Criteria JORC Code explanation Commentary
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 economic potash deposit covers almost the
entire Ohmgebirge mining licence, with a small,
oval‐shaped barren zone in the west that
continues approximately 1 km to the west of the
mining licence. Based on interpretation of drill
hole data and historical plan maps, the
mineralised z2KSt continues to the north, south,
east and west of Ohmgebirge. The mineral
resource has been restricted by a minimum grade
cut‐off of >5% K2O. The total mineral resource
area for Ohmgebirge is approximately 21.7 km2
and the total Inferred Mineral Resources tonnage
is 325 Mt of which there is 43 Mt of K2O. The
minimum depth from surface to the roof of the
economic potash is ±440 m and the maximum
depth to the base of the potash seam is ±822 m.
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 geological model and resource estimation for
Ohmgebirge was carried out in Micromine®
modelling software, which is internationally
recognised software used for modelling stratiform
deposits. The chemical database was
composited according to the assigned mineralogy
into Sylvinite Carnallitite or Lower Sylvinite.
Lower Sylvinite was not modelled due to lack of
continuity. Where some chemical data was
missing, a length weighted average dummy value
was assigned. No K2O values had to be inferred in
this way. This database was composited using a
minimum trigger of 5% K2O, a maximum total
length of waste of 2 m and a 1 m maximum
consecutive length of waste. The minimum and
maximum X and Y origins used for gridding were
588990 (min X), 5694719 (min Y), 603490 (max X)
and 5707219 (max Y). A grid cell size of 100 was
used as this best fitted the data when correlated
in cross‐section. An inverse distance squared
gridding algorithm was used, with a circular
search area and a 2,000 m search radius to cover
the distance between data points, one sector and
maximum 1 point per sector. The roof and floor
grids were converted to wireframes surfaces and
then DTM surfaces for analysis. Lastly, two sets of
solid wireframes were created for each seam,

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

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Criteria JORC Code explanation Commentary
namely the Sylvinite Seam and the Carnallitite
Seam. The first set of wireframes represents the
total extent of potash mineralisation based on
complete set of data provided and the second set
of wireframes represents the potash seam
mineralisation cropped by the project licence
boundary.
The availability of check estimates,
previous estimates and/or mine
production records and whether
the Mineral Resource estimate
takes appropriate account of such
data.
Three historical reserves exist for various areas
covering the current Ohmgebirge mining licence.
The most recent historical reserve estimate,
namely the Watznauer and Tita reserve, is dated
1996 and covers approximately 72% of the
current licence area; the Kali‐Instruktion balanced
C2 tonnage of Sylvinite is 20.1 Mt K2O. In 2017 a
JORC Exploration Target was declared for the
Ohmgebirge mining licence. The tonnage of
Sylvinite was estimated to range from 182‐271 Mt
at a grade of 13.91% K2O, and the tonnage of
Carnallitite was estimated to range from 57‐71 Mt
at a grade of 10.10% K2O.
The assumptions made regarding
recovery of by‐products.
No assumptions have been made regarding by‐
products. There are a range of sulphate minerals
in the Sylvinite seam but these have not been
individually estimated at this stage. Kieserite is
particular frequent.
Estimation of deleterious elements
or other non‐grade variables of
economic significance (eg sulphur
for acid mine drainage
characterisation).
The insoluble content has been reported for
purposes of metallurgical processing review and is
not considered to be significant.
In the case of block model
interpolation, the block size in
relation to the average sample
spacing and the search employed.
A block model was not created.
Any assumptions behind modelling
of selective mining units.
No selective mining units were modelled. The
resource was modelled according to Sylvinite and
Carnallitite so the lower grade and higher grade
areas can be distinguished as well as variations in
mineralogy, which will be important for
processing.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

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Criteria JORC Code explanation Commentary
Any assumptions about correlation
between variables.
Not applicable.
Description of how the geological
interpretation was used to control
the resource estimates.
The geological model was constrained by grade
>5% K2O and then the mineralogical data was
used to split this into the Sylvinite and Carnallitite
seams.
Discussion of basis for using or not
using grade cutting or capping.
A minimum cut‐off grade of 5% K2O was used as
this is considered economic. No top cut was
applied as the statistical analysis of the data
shows a normal distribution. A box and whisper
plot shows that the grade in drill hole Ktf 3/61 is
elevated compared to the rest of the assay data,
but not to such an extent that warrants 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.
The composited assay data was compared against
original assay data in cross section. Modelled
wireframes were compared against original
stratigraphic interpretations and geophysical logs.
All correlated well.
Moisture Whether the tonnages are
estimated on a dry basis or with
natural moisture, and the method
of determination of the moisture
content.
Not applicable.
Cut‐off
parameters
The basis of the adopted cut‐off
grade(s) or quality parameters
applied.
A minimum cut‐off grade of 5% K2O was used as
this is considered economic. No seam thickness
cut‐off was required.
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 _
The seam thickness is >1.5 m across Ohmgebirge
and is considered amenable to potential mining
underground.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

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Davenport Resources Ltd

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Criteria JORC Code explanation Commentary
be rigorous. Where this is the case,
this should be reported with an
explanation of the basis of the
mining assumptions made.
Metallurgical
factors or
assumptions
The basis for assumptions or
predictions regarding
metallurgical amenability. It is
always necessary as part of the
process of determining reasonable
prospects for eventual economic
extraction to consider potential
metallurgical methods, but the
assumptions regarding
metallurgical treatment processes
and parameters made when
reporting Mineral Resources may
not always be rigorous. Where this
is the case, this should be reported
with an explanation of the basis of
the metallurgical assumptions
made.
Processing specifically for Ohmgebirge has not
been considered at this stage. Insoluble material
has been modelled. The South Harz area has
historically been mined for decades and there is a
lot of local knowledge about the metallurgical
processes required. The next phase of work for
the project area will involve a more detailed
understanding of the mineralogy and possible
processing techniques.
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
Mining will take place underground. Assumptions
regarding environmental factors have been based
on the standards set by surrounding potash mines
in the area. Davenport has the exclusive right to
explore and/or produce and to appropriate the
respective mineral resources in a certain field.
However, all exploration and production activities
require a mining permit (Betriebsplanzulassung)
to be applied for with the mining authority.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

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Criteria JORC Code explanation Commentary
explanation of the environmental
assumptions made.
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 both the Sylvinite and
Carnallitite seams was reported in Bewertung der
Vorratssituation fur das Bergwerkseigentum ‐
Ohmgebirge, Watznauer & Tita (1996). The bulk
density for each sample was calculated based on
the derived mineralogical composition. The
average density for Sylvinite is 2.23 t/m3and 1.89
t/m3for the Carnallitite seam.
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.
Not applicable.
Discuss assumptions for bulk
density estimates used in the
evaluation process of the different
materials.
Not applicable.
Classification The basis for the classification of
the Mineral Resources into varying
confidence categories.
The Ohmgebirge exploration licence area has
been classified as an Inferred Resource based on
the quality and extents of the drilling database
that are sufficient to imply geological grade and
continuity for eventual economic extraction. A
15% geological loss has been applied to account
for the Inferred classification of the resources.
Whether appropriate account has
been taken of all relevant factors
(ie relative confidence in
tonnage/grade estimations,
reliability of input data, confidence
in continuity of geology and metal
values, quality, quantity and
distribution of the data).
The location of Ohmgebirge is in an area that has
been mining potash for decades. The newly
created modelling database and the historical
cross sections both show the seams to be
consistent across the property. Whilst on site, the
Competent Person visited the area where the old
Sollstedt shaft was sunk and other operating
underground mines and solutions mines in the
neighbouring area such as Bleicherode.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

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Criteria JORC Code explanation Commentary
Whether the result appropriately
reflects the Competent Person’s
view of the deposit.
The stated tonnage and grade are considered an
appropriate reflection of the Competent Persons
view of the deposit.
Audits or
reviews
The results of any audits or
reviews of Mineral Resource
estimates.
Three historical reserves exist for various areas
covering the current Ohmgebirge mining licence.
The most recent historical reserve estimate,
namely the Watznauer and Tita reserve, is dated
1996 and covers approximately 72% of the
current licence area; the Kali‐Instruktion balanced
C2 tonnage of Sylvinite is 20.1 Mt K2O. In 2017 a
JORC Exploration Target was declared for the
Ohmgebirge mining licence. The tonnage of
Sylvinite was estimated to range from 182‐271 Mt
at a grade of 13.91% K2O, and the tonnage of
Carnallitite was estimated to range from 57‐71 Mt
at a grade of 10.10% K2O. The 2017 Exploration
Target grade and tonnage compare favourably to
the 2019 Inferred Resource 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 stated resource tonnage and grades stated
are considered based on the detailed drill hole
database and 3D modelling. The use of the
inverse distance squared method is considered
appropriate for Ohmgebirge as the drill holes are
relatively far apart, the mineralised zone is flat
lying, mineral zones are clearly defined and grade
is relatively consistent.
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
This statement relates to the global Ohmgebirge
resource.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

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Criteria JORC Code explanation Commentary
assumptions made and the
procedures used.
These statements of relative
accuracy and confidence of the
estimate should be compared with
production data, where available.
Not applicable.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

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Davenport Resources Ltd

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Section 4 Estimation and Reporting of Ore Reserves

(Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.)

Criteria JORC Code explanation Commentary
Mineral Resource estimate for
conversion to Ore Reserves
Not applicable for this report
Site visits
Study status
Cut‐off parameters
Mining factors or assumptions
Metallurgical factors or
assumptions
Environmental
Infrastructure
Costs
Revenue factors
Market assessment
Economic
Social
Other
Classification
Audits or reviews
Discussion of relative accuracy/
confidence

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.

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Davenport Resources Ltd

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Section 5 Estimation and Reporting of Diamonds and Other Gemstones

(Criteria listed in other relevant sections also apply to this section. Additional guidelines are available in the ‘Guidelines for the Reporting of Diamond Exploration Results’ issued by the Diamond Exploration Best Practices Committee established by the Canadian Institute of Mining, Metallurgy and Petroleum.)

Criteria JORC Code explanation Commentary
Indicator minerals Not applicable for this report
Source of diamonds
Sample collection
Sample treatment
Carat
Sample grade
Reporting of Exploration Results
Grade estimation for reporting
Mineral Resources and Ore
Reserves
Value estimation
Security and integrity
Classification

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail [email protected]. Registered no. 4026319, England.