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ORION MINERALS NL - Continued Drilling Success at Prieska Zinc-Copper Project Defines a New Target

Release Date: 09/10/2017 11:57
Code(s): ORN     PDF:  
Wrap Text
Continued Drilling Success at Prieska Zinc-Copper Project Defines a New Target

Orion Minerals NL
Incorporated in the Commonwealth of Australia
Australian Company Number 098 939 274
ASX share code: ORN
JSE share code: ORN
ISIN: AU000000ORN1


CONTINUED DRILLING SUCCESS AT PRIESKA ZINC-COPPER PROJECT DEFINES A NEW TARGET


-   Orion’s strategy of applying modern geophysical techniques at Prieska Project pays off with 14.50m of massive sulphide
    intersected on OCOD066_D1, correlating to a down hole EM anomaly.
-   Drill hole OCOD066_D1 intersected massive sulphide mineralisation along strike and 100m beyond limit of historic
    drilling.
-   OCOD068 intersected 23.3m at 5.45% Zn and 0.84% Cu in continued infill verification of target.


Orion Minerals NL (ASX/JSE: ORN) (Orion or Company) is pleased to announce that drilling in the Deep Sulphide Target
at its Prieska Zinc-Copper (Prieska) Project in South Africa has intersected a wide zone of high grade mineralisation in an
area where historic data shows mineralisation blocked out and accessed with preparatory development but not stoped. In
addition, and significantly, a new discovery has been made along strike to the northwest of previously reported
mineralisation, with a 14.50m massive sulphide intersection being returned which provides a new target to extend the zone
of wide, high grade mineralisation.

“Figures" referred to throughout this announcement can be viewed on the pdf version of the announcement, available on
 the Company's website, www.orionminerals.com.au.

Orion’s Managing Director and CEO, Errol Smart, commented on the results:
“We continue to be pleased with drilling and exploration results from the Prieska Project. While drilling within the confines
of historically drilled mineralisation continues to verify the grade and width as reported, our exploratory drilling is
encountering very encouraging extensions to known mineralisation”

Deep Sulphide Target Summary
Assays have been received for hole OCOD068 drilled with the objective of validating mineralisation recorded to be intact in
an area of historical trial mining. Hole OCOD068 intersected a wide zone of high grade mineralisation in an area where
mine plans show mineralisation to be blocked out and accessed with preparatory development but not stoped prior to the
mine closing in 1991 (Figure 1 and 2). The results for OCOD068 are set out below:
    
    - 23.30m at 5.45% Zn, 0.84% Cu, 0.18g/t Au and 6.8g/t Ag from 974.55m,
      including 10.35m at 6.92% Zn, 0.70% Cu, 0.18g/t Au, 5.95g/t Ag from 977.65m.

The intersection of mineralisation in this area represents a key finding as it confirms the limited extent of previous mining.
Importantly, this intersection is in an area of high tenor in accessed mineralisation and strong geotechnical conditions,
presenting an attractive target for potential early development. Deflection holes are currently being drilled off OCOD068 as
part of the metallurgical sampling program.

OCOD068 intersected mineralisation in an area with a number of historic intersections (Figure 3). The correlation between
these holes is shown in Table 1. True widths are quoted for the historic underground holes, while the OCOD068 intersection
is at high angle to mineralisation and is close to true width. The results of OCOD068 fall well within the range of the historic
intersections and further validate the historic data.



          Hole number     Distance from      Intersection     Zn%       Cu%        Au g/t         Ag g/t
                            OCOD068 (m)        length (m)
             OCOD068              0               23.30       5.45     0.84         0.18           6.8
                                             True Width (m)
                D348             25               19.46       5.29     1.52      No Assay       No Assay
               F1991             32                9.06       6.59     1.84      No Assay       No Assay
                 And                               5.41       2.66     2.31      No Assay       No Assay
                 And                              19.37       4.22     1.13      No Assay       No Assay
               F1985             53                6.07       4.60     1.59      No Assay       No Assay
                 And                               2.88       3.90     1.87      No Assay       No Assay
               F1990             55                3.27       5.53     1.05      No Assay       No Assay
                 And                               8.66       3.58     2.11      No Assay       No Assay
                 And                               3.32       3.27     0.99      No Assay       No Assay

Table 1. Comparison of the intersection made in OCOD068 with adjacent holes.

Exploration for Extension of Mineralisation

Drill hole OCOD66_D1, a deflection hole drilled off OCOD066, intersected two zones of massive sulphides. The main
intersection consists of 14.50m of massive sulphides between 1072.20m and 1086.70m. A second intersection of 3.15m of
massive sulphides appears 4m into the foot wall of the main zone. Disseminated sulphides occur both in the hanging wall
and separating the two massive sulphide zones.

OCOD066_D1 was aimed at testing an electromagnetic (EM) conductor detected in a down hole survey completed in
OCOD066 (refer ASX release 6 September 2017). The massive sulphides causing the conductor were intersected 100m
along strike and to the north western most historic drill intersections (Figure 4). This result has now defined a priority target
for additional drilling and proves the potential for discovery extensions to known mineralisation, beyond the margins of
historic drilling.

All significant intersections from surface drilling at the Deep Sulphide Target have been released in ASX releases of 5
October 2017, 19 September 2017, 6 September 2017, 27 July 2017 and 17 July 2017 with historical drilling detailed in
ASX release of 18 November 2015. New significant intersections are included as Appendix 1. All intersections quoted for
the Deep Sulphide Target are length and specific gravity weighted, following the procedure detailed in Appendix 2.


Errol Smart
Managing Director and CEO

9 October 2017

ENQUIRIES

Investors                                                      JSE Sponsor
Errol Smart – Managing Director & CEO                          Rick Irving
Denis Waddell – Chairman                                       Merchantec Capital
T: +61 (0) 3 8080 7170                                         T: +27 (0) 11 325 6363
E: info@orionminerals.com.au                                   E: rick@merchantec.co.za

Media
Michael Vaughan                                                Emily Fenton
Fivemark Partners, Australia                                   Tavistock, UK
T: +61 (0) 422 602 720                                         T: +44 (0) 207 920 3150
E: michael.vaughan@fivemark.com.au                             E: orion@tavistock.co.uk


Competent Persons Statement

The information in this report that relates to Orion’s Exploration Results at the Prieska Project complies with the 2012 Edition
of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) and
has been compiled and assessed under the supervision of Mr Errol Smart, Orion Minerals Managing Director. Mr Smart
(PrSciNat) is registered with the South African Council for Natural Scientific Professionals, a Recognised Overseas
Professional Organisation (ROPO) for JORC purposes and has sufficient 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 JORC Code. Mr Smart consents to the inclusion in this announcement of the
matters based on his information in the form and context in which it appears. The Exploration Results are based on standard
industry practises for drilling, logging, sampling, assay methods including quality assurance and quality control measures
as detailed in Appendix 2.


Disclaimer

This release may include forward-looking statements. Such forward-looking statements may include, among other things,
statements regarding targets, estimates and assumptions in respect of metal production and prices, operating costs and
results, capital expenditures, mineral reserves and mineral resources and anticipated grades and recovery rates, and are
or may be based on assumptions and estimates related to future technical, economic, market, political, social and other
conditions. These forward-looking statements are based on management’s expectations and beliefs concerning future
events. Forward-looking statements inherently involve subjective judgement and analysis and are necessarily subject to
risks, uncertainties and other factors, many of which are outside the control of Orion. Actual results and developments may
vary materially from those expressed in this release. Given these uncertainties, readers are cautioned not to place undue
reliance on such forward-looking statements. Orion makes no undertaking to subsequently update or revise the forward-
looking statements made in this release to reflect events or circumstances after the date of this release. All information in
respect of Exploration Results and other technical information should be read in conjunction with Competent Person
Statements in this release. To the maximum extent permitted by law, Orion and any of its related bodies corporate and
affiliates and their officers, employees, agents, associates and advisers:

    -    disclaim any obligations or undertaking to release any updates or revisions to the information to reflect any change
         in expectations or assumptions;
    -    do not make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of
         the information in this release, or likelihood of fulfilment of any forward-looking statement or any event or results
         expressed or implied in any forward-looking statement; and
    -    disclaim all responsibility and liability for these forward-looking statements (including, without limitation, liability for
         negligence).


Appendix 1: Table of intersections from Deep Sulphide Target drilling at the Prieska Project.

                       East         North        From         To        Length       Cu           Zn         Au          Ag
    Drill hole
                    (UTMz34S)    (UTMz34S)        (m)        (m)         (m)         (%)         (%)        (g/t)       (g/t)
                      624691       6686077      974.55      997.85      23.30        0.84        5.45        0.18        6.8
   OCOD068
                           including            977.65      988.00      10.35        0.70        6.92        0.18       5.95



    1.   All significant intersections > 1m and >0.3% copper or > 0.5% zinc are quoted.
    2.   Holes prefixed with OCOD are drilled from surface, those with the prefix OCOU have been drilled from underground.
    3.   It is recommended that the supporting information contained in Appendix 2 is read in conjunction with these results.

Appendix 2: The following tables are provided to ensure compliance with the JORC Code (2012) requirements for the reporting of Exploration Results for the Prieska
Project.

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 (e.g. cut channels, random chips, or          - Diamond core cut at core yard and half core taken as sample.
                             specific specialised industry standard measurement tools appropriate         - Diamond core sampled on 1m intervals where possible, sample lengths
                             to the minerals under investigation, such as down hole gamma                   adjusted to ensure samples do not cross geological boundaries or
                             sondes, or handheld XRF instruments, etc.). These examples should              other features.
                             not be taken as limiting the broad meaning of sampling.                      - Drilling at the Deep Sulphide Target carried out aiming to define an
                           - Include reference to measures taken to ensure sample representivity            approximate 100m x 100m pattern by use of “mother” holes and
                             and the appropriate calibration of any measurement tools or systems            deflections from these holes.
                             used.                                                                        - Drilling at the +105 Level Target carried out aiming to define an
                           - Aspects of the determination of mineralisation that are Material to the        approximate 45m x 45m pattern.
                             Public Report.                                                               - Percussion / reverse circulation pre collars (where used) sampled on a
                           - In cases where ‘industry standard’ work has been done this would be            composite basis.
                             relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1   - Mineralised zones are drilled using core drilling.
                             m samples from which 3 kg was pulverised to produce a 30 g charge            - Sampling carried out under supervision using procedures outlined
                             for fire assay’). In other cases more explanation may be required,             below including industry standard QA/QC.
                             such as where there is coarse gold that has inherent sampling                - Samples submitted for analysis to ALS is pulverised in its entirety at
                             problems. Unusual commodities or mineralisation types (e.g.                    ALS and split to obtain a 0.2g sample for digestion and analysis.
                             submarine nodules) may warrant disclosure of detailed information.           - Downhole EM survey carried out using standard techniques.

Drilling techniques        - Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air     - Diamond core drilling using NQ and BQ sized core.
                             blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter,          - Pre collar drilled using percussion drilling on certain holes (above
                             triple or standard tube, depth of diamond tails, face-sampling bit or          mineralisation).
                             other type, whether core is oriented and if so, by what method, etc.).

Drill sample recovery      - Method of recording and assessing core and chip sample recoveries            - All mineralised intersections are done with core drilling.
                             and results assessed.                                                        - Core stick-ups reflecting the depth of the drill hole are recorded at the
                           - Measures taken to maximise sample recovery and ensure                          rig at the end of each core run.
                             representative nature of the samples.                                        - A block with the depth of the hole written on it is placed in the core box
                           - Whether a relationship exists between sample recovery and grade                at the end of each run.
                             and whether sample bias may have occurred due to preferential                - At the core yard, the length of core in the core box is measured for
                             loss/gain of fine/coarse material.                                             each run. The measured length of core is subtracted from the length of
                                                                                                            the run as recorded from the stick-up measured at the rig to determine
                                                                                                            the core lost.
                                                                                                          - No grade variation with recovery noted.
                                                                                                   
Logging                    - Whether core and chip samples have been geologically and                     - All percussion holes are logged on 1m intervals using visual inspection
                             geotechnically logged to a level of detail to support appropriate              of washed drill chips and both full. Core is logged by geology and
                             Mineral Resource estimation, mining studies and metallurgical                  recorded between geological contacts by qualified geologists.
                             studies.                                                                     - Qualitative logging of colour, grainsize, weathering, structural fabric,
                           - Whether logging is qualitative or quantitative in nature. Core (or             lithology, alteration type and sulphide mineralogy carried out.
                             costean, channel, etc.) photography.                                         - Quantitative estimate of sulphide mineralogy and quartz veining.
                           - The total length and percentage of the relevant intersections logged.        - Logs are recorded at the core yard and entered into digital templates at
                                                                                                            the project office.

Sub-sampling               - If core, whether cut or sawn and whether quarter, half or all core           - BQ and NQ core cut at core yard and half core taken as sample.
techniques and sample        taken.                                                                       - Samples from percussion pre collars are collected by spear sampling.
preparation                - If non-core, whether riffled, tube sampled, rotary split, etc. and           - Sampling on site aims to generate a < 2kg sub sample to enable the
                             whether sampled wet or dry.                                                    entire sample to be pulverised without further splitting.
                           - For all sample types, the nature, quality and appropriateness of the         - Water is used in the dust depression proses during percussion drilling,
                             sample preparation technique.                                                  resulting in wet chip samples.
                           - Quality control procedures adopted for all sub-sampling stages to            - With core samples, the entire sample length is cut and sampled.
                             maximise representivity of samples.                                          - Sample preparation is undertaken at ALS Laboratory Johannesburg, an
                           - Measures taken to ensure that the sampling is representative of the in         ISO accredited laboratory. ALS utilises industry best practise for
                             situ material collected, including for instance results for field              sample preparation for analysis involving drying of samples, crushing to
                             duplicate/second-half sampling.                                                <5mm if required and then pulverising so that +85% of the sample
                           - Whether sample sizes are appropriate to the grain size of the material         passes 75 microns.
                             being sampled.                                                               - CRM’s, blanks and replicates are inserted every 30 samples and
                                                                                                            analysed with each batch.
                                                                                                          - Lab supplied CRM’s, blanks and replicates are analysed with each
                                                                                                            batch.
                                                                                                          - Specific gravity measurements are made over the full length of each
                                                                                                            individual sample on split core where possible. Where not possible due
                                                                                                            to crushed or broken core, a minimum of 80% of the core sample is
                                                                                                            used. The specific gravity is determined by measuring and subtracting
                                                                                                            the wet weight from the dry weight using an electronic density scale.
                                                                                                            Care is taken to clean and zero the scale between each weighing.
                                                                                                          - The sample is first weighed in air and the weight recorded. The sample
                                                                                                            is then weighed, while completely submerged in clean water within a
                                                                                                            measuring beaker. The mass of beaker and water are deducted for net
                                                                                                            submerged weight and volume displacement read on measuring
                                                                                                            beaker.
                                                                                                          - The sample is then removed and placed back into the core tray in the
                                                                                                            correct position and orientation. The procedure is repeated for each
                                                                                                            geological sample interval.
                                                                                                          - The data is recorded in the Specific Gravity Data Sheet. The specific
                                                                                                            gravity is calculated for each sample using the formula:

                                                                                                             SG =                 weight of sample                                      .
                                                                                                                (weight of sample in air minus the weight of the sample in water).

Quality of assay data     - The nature, quality and appropriateness of the assaying and              - Samples from drilling were submitted to ALS Chemex in Johannesburg.
and laboratory tests        laboratory procedures used and whether the technique is considered         Samples were analysed for base metals using a four acid digest and
                            partial or total.                                                          ICP-OES and for gold by fire assay with AAS finish.
                          - For geophysical tools, spectrometers, handheld XRF instruments,          - External quality assurance of the laboratory assays is monitored by the
                            etc., the parameters used in determining the analysis including            insertion of blanks, duplicates and certified reference materials (CRM)
                            instrument make and model, reading times, calibrations factors           - Coarse field duplicates consisting of a split sub-sample of the original
                            applied and their derivation, etc.                                         crushed sample material.
                          - Nature of quality control procedures adopted (e.g. standards, blanks,    - Three CRMs are alternated through the sample stream and where
                            duplicates, external laboratory checks) and whether acceptable levels      possible matched to the material being drilled.
                            of accuracy (i.e. lack of bias) and precision have been established.     - Two blanks are used (pulp and chips).
                                                                                                     - No external laboratory checks have been carried out at this stage.
                                                                                                     - Down hole EM surveys are carried out using a 3 component Digi-
                                                                                                       Atlantis probe and ultra high power transmitter.
                                                                                                     - Loop size of 1800m x 600m are used with continuous measurements
                                                                                                       taken as the probe travels into the hole and out again.
                                                                                                     - Surface TDEM surveys are carried out using a Supracon Jesse Beep
                                                                                                       squid sensor and ultra high power transmitter with a Smartem 24
                                                                                                       receiver.

Verification of           - The verification of significant intersections by either independent or   - Orion’s executive geologist is personally supervising the drilling and
sampling and assaying       alternative company personnel.                                             sampling along with a team of experienced geologists.
                          - The use of twinned holes.                                                - The Managing Director and the executive geologist have reviewed the
                          - Documentation of primary data, data entry procedures, data                 raw laboratory data and confirmed the calculation of the significant
                            verification, data storage (physical and electronic) protocols.            intersections.
                          - Discuss any adjustment to assay data.                                    - For the EM survey, data is collected on site and validated by a
                                                                                                       geophysical technician daily. Data (raw and processed) is sent to a
                                                                                                       consultant geophysicist for review and quality control.

Location of data points   - Accuracy and quality of surveys used to locate drill holes (collar and   - Collar data has been laid out using a handheld GPS and these
                            down-hole surveys), trenches, mine workings and other locations            coordinates are reported here.
                            used in Mineral Resource estimation.                                     - All of the Orion drill hole collars are surveyed by a qualified surveyor
                          - Specification of the grid system used.                                     using a differential GPS which may result in minor adjustments to
                          - Quality and adequacy of topographic control.                               coordinate data.
                                                                                                     - Downhole surveys are completed using a North-Seeking Gyro
                                                                                                       instrument.
                                                                                                     - The historic mine survey data is in the old national Clarke 1880
                                                                                                       coordinate system. All data is collected the surveyor is in Clarke 1880
                                                                                                       and in UTM WGS84 Zone 34 (Southern Hemisphere). UTM WGS84
                                                                                                       Zone 34 coordinates are reported above.

Data spacing and          - Data spacing for reporting of Exploration Results.                         - At the Deep Sulphide Target drill holes aim to intersect mineralisation
distribution              - Whether the data spacing and distribution is sufficient to establish the     on approximately 100m x 100m spacing with infill drilling to be carried
                            degree of geological and grade continuity appropriate for the Mineral        out in areas of interest as determined by results.
                            Resource and Ore Reserve estimation procedure(s) and                       - At the +105 Level Target drill holes aim to intersect mineralisation on
                            classifications applied.                                                     approximately 45m x 45m spacing with infill drilling to be carried out in
                          - Whether sample compositing has been applied.                                 areas of interest as determined by results.
                                                                                                       - Variography studies were carried out on the historic data set for both
                                                                                                         Targets to determine the drill spacing for Mineral Resource estimates.

Orientation of data in    - Whether the orientation of sampling achieves unbiased sampling of          - Drilling is oriented perpendicular, or at a maximum achievable angle to,
relation to geological      possible structures and the extent to which this is known, considering       the attitude of the mineralisation.
structure                   the deposit type.                                                          - As a result most holes intersect the mineralisation at an acceptable
                          - If the relationship between the drilling orientation and the orientation     angle.
                            of key mineralised structures is considered to have introduced a           - Where surface access or geotechnical conditions do not allow access
                            sampling bias, this should be assessed and reported if material.             to optimal drill collar positions, holes may be inclined.
                                                                                                       - The intersections will be corrected once the mineralised zone is
                                                                                                         modelled in three dimensions and local attitude can be accurately
                                                                                                         determined.
                                                                                                       - No sampling bias is anticipated as a result of hole orientations.
                                                                                                       - EM surveys are completed in an orientation perpendicular to the
                                                                                                         interpreted or intersected mineralisation.

Sample security           - The measures taken to ensure sample security.                              - Chain of custody is managed by the Company. Samples were stored
                                                                                                         on site in a secure locked building and then freighted directly to the lab.

Audits or reviews         - The results of any audits or reviews of sampling techniques and data.      - No audits or reviews have been carried out at this stage.


Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)

Criteria                   JORC Code explanation                                                           Commentary

Mineral tenement           - Type, reference name/number, location and ownership including                 - The Prospecting Right is held by a subsidiary company of Agama
and land tenure              agreements or material issues with third parties such as joint                  Exploration and Mining (Pty) Ltd (Agama), which is a wholly owned
status                       ventures, partnerships, overriding royalties, native title interests,           subsidiary of Orion. As such, Orion effectively holds a 73.33% interest
                             historical sites, wilderness or national park and environmental                 in the project.
                             settings.                                                                     - The Prospecting Right covers a strike of 2200m for the Deep Sulphide
                           - The security of the tenure held at the time of reporting along with any         mineralisation out of a total interpreted strike of 2800m.
                             known impediments to obtaining a licence to operate in the area.              - The Prospecting Right covers the complete known strike of the +105
                                                                                                             Level Target.
                                                                                                           - All of the required shaft infrastructure and lateral access underground
                                                                                                             development is available within the Prospecting Right.

Exploration done by   - Acknowledgment and appraisal of exploration by other parties.             Deep Sulphide Target
other parties                                                                                     - All exploration and life of mine drilling (V, D and F holes) was done by
                                                                                                    Anglovaal, resulting in a substantial amount of hard copy data from
                                                                                                    which the Company has been able to assess the prospectivity of the
                                                                                                    remaining mineralisation.
                                                                                                  - The Anglovaal exploration resulted in the delineation and development
                                                                                                    of a large mine.

                                                                                                  +105 Level Target
                                                                                                  - The 2012 drilling of the NW section of the +105 Level Target was
                                                                                                    carried out by the previous owners of the Subsidiary (Orion acquired
                                                                                                    the subsidiary in March 2017).

Geology               - Deposit type, geological setting and style of mineralisation.             - The Copperton deposit is a Volcanogenic Massive Sulphide deposit.
                                                                                                    The deposit is contained in the Areachap Group, which also hosts the
                                                                                                    Boks Puts, Areachap, Kielder, Annex Vogelstruisbult and Kantienpan
                                                                                                    deposits.
                                                                                                  - The historically mined section of the deposit is confined to a tabular,
                                                                                                    stratabound horizon in the northern limb of a refolded recumbent
                                                                                                    synform which plunges at approximately 45° to the southeast. It is
                                                                                                    hosted within deformed gneisses of the Copperton Formation, which
                                                                                                    have been dated at 1285 Ma and forms part of the Namaqualand
                                                                                                    Metamorphic Complex.
                                                                                                  - The mineralised zone outcrop has a strike of 2400m, was oxidised and
                                                                                                    / or affected by leached and supergene enrichment to a depth of
                                                                                                    approximately 100m, and outcrops as a well_Developed gossan. It has
                                                                                                    a dip of between 55° and 80° to the northeast at surface and a strike of
                                                                                                    130° to the north. The width of the mineralised zone exceeds 35m in
                                                                                                    places but averages between 7m and 9m. The mineralised zone
                                                                                                    persists to a depth of 1100m (as deep as 1200m in one section) after
                                                                                                    which it is upturned.
                                                                                                  - The +105 Level Target area comprises the oxide / supergene / mixed
                                                                                                    zone (and a zone of remnant primary sulphides) situated from above
                                                                                                    the upper limit of mining at approximately 100m depth up to surface.

Drill hole            - A summary of all information material to the understanding of the         - All Significant Intersections, location data and other drill hole
Information             exploration results including a tabulation of the following information     information is tabulated in Appendix 1.
                        for all Material drill holes:                                                
                         - easting and northing of the drill hole collar
                         - elevation or RL (Reduced Level – elevation above sea level in
                              metres) of the drill hole collar
                         - dip and azimuth of the hole
                         - down hole length and interception depth
                         - hole length.
                       - If the exclusion of this information is justified on the basis that the
                         information is not Material and this exclusion does not detract from
                         the understanding of the report, the Competent Person should clearly
                         explain why this is the case.

Data aggregation       - In reporting Exploration Results, weighting averaging techniques,          - Significant Intersections for the Deep Sulphide Target are calculated by
methods                  maximum and/or minimum grade truncations (e.g. cutting of high               average of assays result > 0.3% copper or 0.5% zinc and weighted by
                         grades) and cut-off grades are usually Material and should be stated.        the sample width and specific gravity of each sample.
                       - Where aggregate intercepts incorporate short lengths of high grade         - Significant Intersections for the +105 Level Target are calculated by
                         results and longer lengths of low grade results, the procedure used          average of assays result > 0.3% copper or 0.5% zinc and weighted by
                         for such aggregation should be stated and some typical examples of           the sample width of each sample only.
                         such aggregations should be shown in detail.                               - In general, the significant intersections correspond strongly to
                       - The assumptions used for any reporting of metal equivalent values            geological boundaries (massive sulphides) and are clearly
                         should be clearly stated.                                                    distinguishable from country rock / surrounding samples.
                                                                                                    - No truncations have been applied at this stage for either Target.

Relationship           - These relationships are particularly important in the reporting of         - All intersection widths quoted are down hole widths.
between                  Exploration Results.                                                       - Most holes intersected the mineralisation perpendicular or at high angle
mineralisation         - If the geometry of the mineralisation with respect to the drill hole         to the attitude of the mineralisation.
widths and intercept     angle is known, its nature should be reported.                             - The mineralisation has complex geometry and mineralisation widths
lengths                - If it is not known and only the down hole lengths are reported, there        need to be estimated based on interpretation of surrounding intercepts.
                         should be a clear statement to this effect (e.g. ‘down hole length, true
                         width not known’).

Diagrams               - Appropriate maps and sections (with scales) and tabulations of             - Appropriate diagrams (plan, cross section and long section) are shown
                         intercepts should be included for any significant discovery being            in the announcement text.
                         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 Exploration Results is not            - All drill hole results referred to in the announcement, are listed in
                         practicable, representative reporting of both low and high grades            Appendix 1. All other drill holes, including those with no mineralisation,
                         and/or widths should be practiced to avoid misleading reporting of           have been detailed in previous announcements as detailed in the text.
                         Exploration Results.

Other substantive      - Other exploration data, if meaningful and material, should be reported     - Hardcopy maps are available for a range of other exploration data. This
exploration data         including (but not limited to): geological observations; geophysical         includes mine survey plans, geological maps, airborne magnetics,
                         survey results; geochemical survey results; bulk samples – size and          ground magnetics, electromagnetics, gravity and induced polarisation.
                         method of treatment; metallurgical test results; bulk density,               All available exploration data has been viewed by the Competent
                         groundwater, geotechnical and rock characteristics; potential                Person.
                         deleterious or contaminating substances.                                   - The mine operated from 1972 to 1991 and is reported to have milled a
                                                                                                      total of 45.68 Mt of ore at a grade of 1.11% copper and 2.62% zinc,
                                                                                                      recovering 0.43 Mt of copper and 1.01 Mt of zinc. Detailed production
                                                                                                      and metallurgical results are available for the life of the mine.
                                                                                                    - In addition, 1.76 Mt of pyrite concentrates and 8,403 t of lead
                                                                                                      concentrates as well as amounts of silver and gold were recovered.
                                                                                                    - Copper and zinc recoveries averaged 84.9% and 84.3% respectively
                                                                                                      during the life of the mine.

Further work          - The nature and scale of planned further work (e.g. tests for lateral       - Drilling is ongoing to test the Deep Sulphide Target.
                        extensions or depth extensions or large-scale step-out drilling).          - Downhole and surface EM surveys are also in progress aimed at
                      - Diagrams clearly highlighting the areas of possible extensions,              delineating targets away from the historically drilled areas.
                        including the main geological interpretations and future drilling areas,
                        provided this information is not commercially sensitive.

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