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FERRUM CRESCENT LIMITED - Quarterly Activities and Cashflow Report For the period ended 30 September 2017

Release Date: 31/10/2017 09:00
Code(s): FCR     PDF:  
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Quarterly Activities and Cashflow Report For the period ended 30 September 2017

FERRUM CRESCENT LIMITED

(Incorporated and registered in Australia and registered as an external company

in the Republic of South Africa)

(Registration number A.C.N. 097 532 137)

(External company registration number 2011/116305/10)

Share code on the ASX: FCR

Share code on AIM: FCR

Share code on the JSE: FCR

Australian ISIN: AU000000WRL8

South African ISIN: AU000000FCR2



31 October 2017

                               Ferrum Crescent Limited
              ("FCR", the "Company" or the "Group")(ASX, AIM, JSE: FCR)

                         Quarterly Activities and Cashflow Report
                         For the period ended 30 September 2017

Highlights:

Toral lead-zinc project, Spain

- 6 hole exploration drill programme completed comprising 1,046.9m of drilling within 200
    metres of the surface.
- Intersection of lead-zinc anomalies in all six drill holes.
- Key intersections encountered (all widths given along the core):
   - Hole TOR17009 1 metre grading at 1.22%Pb, 9.77%Zn (10.99% combined Pb/Zn);
   - Hole TOR17012 3 metres grading at 0.64%Pb, 6.46%Zn (7.10% combined Pb/Zn);
   - Hole TOR17012 1 metre grading at 0.67%Pb, 16.10%Zn (16.77% combined Pb/Zn);
   - Hole TOR17013 1 metre grading at 6.51%Pb, 6.50%Zn (13.01% combined Pb/Zn);
   - Hole TOR17013 3 metres grading at 6.03%Pb, 5.49%Zn (11.52% combined Pb/Zn).

Corporate

    -   On 8 September 2017, the Company announced a conditional placement, via
        Peterhouse Corporate Finance Limited as AIM broker for the Company, of 214,782,526
       fully paid new ordinary shares at an issue price of 0.09 pence per share (the Placing
       Shares) (the Placing). The Placing, which completed on 14 September 2017, raised, in
       aggregate, GBP193,304 (approximately A$321,590) before expenses.

       The Placing Shares were issued to sophisticated and professional investors without
       shareholder approval utilising the Company's existing placement capacity under ASX
       Listing Rule 7.1A with the net proceeds to be used to undertake additional exploration
       and evaluation activities at the Company’s Toral and Lago lead-zinc exploration projects
       in northwest Spain, as well as for general working capital purposes.

   -   On 26 September 2017, the Company announced the resignation of Mr Justin Tooth
       (Executive Chairman) from the board of directors with immediate effect in order to
       pursue his other business interests. Mr Grant Button, previously a non-executive director
       of the Company and Company Secretary, assumed the role of Non-Executive Chairman.

   -   In addition, Mr Laurence Read assumed the role of Executive Director, having previously
       been a non-executive director of the Company.


Post Quarter End
   -   Further to a full review of the Toral assets by Mr Laurence Read and Mr Myles Campion,
       a Revised Toral Lead-Zinc Exploration Strategy was announced, comprising:
          - The review and assessment of all exploration work undertaken in Spain to date,
          which was performed during October 2017;
          - An initial review of historical core samples by the Company;
          - A key focus on all historical information being processed into a standardised central
          model data platform for use by the Company’s geologists and independent
          consultants; and
          - The appointment of Addison Mining Services Limited, geological and mining
          consultants based in London, to develop a maiden JORC (2012) compliant resource
          estimate by the end of 2017, incorporating, inter alia, the data from the 2017
          exploration drill campaign, which will not require any further drilling.

   -   Group wide fixed cost reduction programme underway, which has already significantly
       reduced fixed administrative and exploration costs

   -   On 17 October 2017, the Company announced the appointment of Mr Myles Campion
       to the Board, as an Executive Director, with immediate effect.
       Mr Campion has a comprehensive background in all technical and financial facets of the
       resources sector, specialising internationally in resource evaluation and project
       assessment. This follows a 10-year career as an exploration and mine site geologist in
       Australia covering base metals and gold. He holds a BSc (Hons) in Geology from
       University of Wales College, Cardiff and an MSc (MinEx) from the Royal School of Mines
       in London, and also holds a Graduate Diploma of Business (Finance).
       Mr Campion’s financial experience ranges from Australian and UK equities research
       through to project and debt financing in London, covering the entire spectrum of mining
       companies with an extensive knowledge of the global resources market covering the
       three main bourses, the Toronto Stock Exchange, AIM and the ASX. This knowledge

                                                                                                
          base was applied effectively as a Fund Manager at Oceanic Asset Management, where
          he successfully managed the Australian Natural Resources Fund, an Open Ended
          Investment Company (OEIC) traded in London. Mr Campion is also currently a Non-
          Executive Director of the AIM quoted, Katoro Gold plc.


Laurence Read, Executive Director of FCR, today commented:
“The period under review saw the completion of the Company’s six hole exploration drill
programme at Toral with a number of key intersections returned. Mr Justin Tooth stepped down
from the Board and left the Company to pursue his other interests and we would like to take this
opportunity to thank him for his valuable work contributing to FCR’s development into a
European lead-zinc explorer.
“Post the quarter end, Myles Campion and I took the opportunity to undertake a full review of
FCR and its operations and we believe the pursuit of a maiden JORC 2012 resource estimate
for Toral is the correct decision for the Company in order to seek to realise value from the
project. Costs and all aspects of the Group’s operations are being reviewed to enable us to
focus our resources towards meaningful geological and economic evaluation work.
“I am delighted that Myles agreed to join the Board as he brings both real experience in
developing exploration assets and a proven mineral investment track record to FCR.
“We are exploring the promising Toral project at a point when zinc prices are at all time high
and our task is to quantify and confirm the significant grades and size of the project suggested
from the significant third party historic exploration work. FCR will seek to build value from
delivering an independent JORC 2012 resource estimate for Toral, which has already had over
44,000 metres of drilling undertaken on the licence area. We aim to demonstrate the economic
viability of Toral as a potential producing asset bringing into account different mining
approaches, its metallurgical properties and its proximity to major infrastructure in a European
jurisdiction.”


Exploration Interests
The following listing of tenements held is provided in accordance with ASX Listing Rule 5.3 for
the quarter ended 30 September 2017:

  Project    Location            Right Number        Right Status    Holder          Percentage
                                                                                     Interest
  Toral      León Province,      15.199              Investigation   GoldQuest       100%
             Spain                                   Permit          Iberica, S.L.
                                                                                     100%
  Lago       Galicia Province,   Lago II 6.056       Exploration     GoldQuest
                                                     Permit in       Iberica, S.L.
             Spain
                                                     progress

                                 Lago III 6.058      Investigation
                                                     Permit in
                                                     progress


No tenements were acquired or relinquished during the quarter.



                                                                                                  
For further information on the             Company,      please    visit   www.fcrexploration.com     or
www.ferrumcrescent.com or contact:


Ferrum Crescent Limited
Grant Button, Chairman (Australia)
T: +61 8 9474 2995
Laurence Read, Executive Director (UK)
T: + 44 (0)20 3289 9923

Strand Hanson Limited (Nominated Adviser)
Rory Murphy / Matthew Chandler
T: +44 (0)20 7409 3494

Peterhouse Corporate Finance Limited (Broker)
Lucy Williams / Duncan Vasey / Heena Karani
T: +44 (0)20 7469 0930

Beaufort Securities Limited (Broker)
Elliot Hance
T: +44 (0)20 7382 8300

Bravura Capital (Pty) Ltd (JSE Sponsor)
Melanie De Nysschen
T (direct): +27 11 459 5052

The information contained within this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.


APPENDIX 5B:




Competent person’s statement
The information contained in this announcement that relates to Exploration Results is based on
information compiled by Mr Juki Laurikko who is a Member of the European Federation of Geologists
which is a Recognised Professional Organisation for the purposes of the 2012 JORC Code. Mr Laurikko
is a Technical Consultant to the Company, and has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves’. Mr Laurikko consents to the inclusion in this
announcement of the matters based on his information in the form and context in which they appear. Mr
Laurikko has also reviewed and approved the technical information in his capacity as a qualified person
under the AIM Rules.


                    Table 1: Appendix 5A ASX Listing Rules (JORC Code)
                   Section 1: Sampling Techniques and Data, Toral Project


                                                                                                        
Section 1: Sampling Techniques and Data, Diamond Drilling, Toral Project
 Criteria      Explanation                         Comments

 Sampling
               Nature and quality of sampling
 techniques
               (e.g. cut channels, random       Diamond drilling
               chips, or specific specialised
               industry standard measurement
               tools appropriate to the minerals
               under investigation, such as
               down hole gamma sondes, or
               handheld XRF instruments,
               etc.). These examples should
               not be taken as limiting the
               broad meaning of sampling.

               Include reference to
               measures taken to ensure           Spacing variable due to location of existing access roads and suitable terrain.
               sample representivity and the
               appropriate calibration of any
               measurement tools or
               systems used.

               Aspects of the determination of     Drill hole locations were set out with high definition GPS,
               mineralisation that are Material    GEOMAX Zenith 35.
               to the Public Report. In cases
               where ‘industry standard’ work
               has been done this would be         Drill core was split in half and 1 metre samples, or shorter
               relatively simple (e.g. ‘reverse    due to lithological contacts, were packed and labelled into
               circulation drilling                plastic bags.
               was used to obtain 1 m
               samples from which 3 kg was         Sample preparation was done at ALS Chemex in Spain and assayed for
               pulverised to produce a 30 g        multi-element analysis, ME ICP 41 (35 element). Samples with over 1% of
               charge for fire assay’). In         mineralisation were re-assayed using ME OG46.
               other cases more explanation
               may be required, such as
               where there is coarse gold
               that has inherent sampling
               problems. Unusual
               commodities or mineralisation
               types (e.g. submarine
               nodules) may warrant
               disclosure of detailed
               information.


 Drilling      Drill type (e.g. core, reverse    Diamond drilling was conducted using a wireline rig, mounted on a crawler.
               circulation, open-hole hammer, Drill bit sizes PQ and PQ3 were used and when the hole was expected to
 techniques
               rotary air blast, auger, Bangka, intersect mineralised zone, the core was recovered with a triple core barrel.
               sonic, etc.) and details (e.g.
               core diameter, triple or standard
               tube, depth of diamond tails,
               face sampling bit or other
               type, whether core is oriented
               and if so, by what method, etc.).




                                                                                                                    
Drill sample   Method of recording and
               assessing core and chip             Drill core was assembled in the core boxes and the real length of the drill
recovery       sample recoveries and results       run was measured with measuring tape to be able to calculate the core
               assessed.                           recovery.


               Measures taken to
                                                   Use of triple core barrel when intersecting expected mineralised zones.
               maximize sample
               recovery and ensure
               representative nature of
               the samples.

               Whether a relationship exists       Not applicable at this stage
               between sample recovery and
               grade and whether sample bias
               may have occurred due to
               preferential loss/gain of
               fine/coarse material.


Logging        Whether core and chip samples Drill logs digitally entered into the Company´s standard templates.
               have been geologically and       Logging is of sufficient quality to support Mineral resource estimation, however
               geotechnically logged to a level at this stage (Company´s first six drill holes comprising 1,046m) the
               of detail to support appropriate lithological/alteration and mineralogical features assisting modelling of the
               Mineral Resource estimation, Mineral Resource are yet to be determined.
               mining studies and metallurgical
               studies.

               Whether logging is qualitative or Quantitative logging of colour, grain size, weathering, structural fabric,
               quantitative in nature. Core (or lithology, alteration type and sulfide mineralisation documented.
               costean, channel, etc.)
               photography

               The total length and percentage All drill holes are logged using visual inspection. Information captured on paper
               of the relevant intersections   sheets and entered into company´s logging template.
               logged.


Sub           If core, whether cut or sawn and Mineralised zones of the core are split; one half core is sent for assaying and
               whether quarter, half or all core the second is stored in the core box as a reference.
sampling
               taken.
techniques
and sample
preparation    If non core, whether riffled,   Not applicable as entire sample is core.
               tube sampled, rotary split, etc.
               and whether sampled wet or
               dry.
               For all sample types, the nature,   Sample preparation was done at ALS Chemex in Spain, using standard
               quality and appropriateness of      preparation technique suitable for multi-element analysis, ME ICP 41 (35
               the sample preparation              element). Samples with over 1% of ore grade were re-assayed using ME
               technique.                          OG46.


               Quality control procedures        Standard, blanks, field samples and repeats (using also coarse split and pulp
               adopted for all sub sampling     reject) were inserted into the sample stream.
               stages to maximise
               representivity of samples.




                                                                                                                     
                Measures taken to ensure that Field duplicate (quarter core) samples were collected at 2 in 100 samples, as a
                the sampling is representative rotating blank, standard, field duplicate and repeat sequence.
                of the in situ material collected,
                including for instance results for
                field duplicate/second half
                sampling.


                Whether sample sizes are          Samples are of 1 metre length or smaller (lithological contacts) or a quarter
                appropriate to the grain size of core (field sample). Grain size of all samples are from medium to fine-grained.
                the material being sampled.


Quality of      The nature, quality and            Assays were carried out by ALS Chemex in Spain, using standard
assay data      appropriateness of the assaying    preparation techniques suitable for multi-element analysis, ME ICP 41 (35
and             and laboratory procedures used     element). Samples with over 1% of ore grade were re-assayed using ME
laboratory      and whether the technique is       OG46.
tests           considered partial or total.

                For geophysical tools,         Not applicable as no geophysical tools were used in this programme.
                spectrometers, handheld XRF
                instruments, etc., the
                parameters used in determining
                the analysis including
                instrument make and model,
                reading times, calibrations
                factors applied and their
                derivation, etc.

               Nature of quality control        The Company uses certified reference materials (CRM) and field duplicates in
               procedures adopted (e.g.         its QA/QC procedures. CRMs are sourced from
               standards, blanks, duplicates,   Labmix24 and 6 standards were inserted every 15 samples. Field Duplicate
               external laboratory checks) and samples were taken at a nominal frequency of 2 in 100 samples. QA/QC also
               whether acceptable levels of     includes regularly inserted Pulp Blanks, 2 Coarse Blanks, 2 Pulp Repeats and
               accuracy (i.e. lack of bias) and 2 Coarse Repeats in every 100 samples. No samples. No samples sent yet to
               precision have been established. external laboratory.
                                                  No bias has been observed and accuracy/precision is believed to be
                                                  acceptable for quoting Exploration Results.


Verification    The verification of significant   No such verification conducted in respect of this announcement.
of sampling     intersections by either
and             independent or alternative
assaying        company personnel.

                The use of twinned holes.         No twinned holes.




                Documentation of primary data, Primary data was collected using the Company´s set of standard digital
                data entry procedures, data    templates.
                verification, data storage
                (physical and electronic)
                protocols


                Discuss any adjustment to         No adjustment to assay data has been carried out.
                assay data.




                                                                                                                    
Location of     Accuracy and quality of surveys       Drill hole locations were set out with high definition GPS,
                used to locate drill holes (collar    GEOMAX Zenith 35 and down-hole deviation measures
data points                                           were carried out by the drilling contractor using Maxibor
                and down hole surveys),
                trenches, mine workings and           equipment.
                other locations used in Mineral
                Resource estimation.


                Specification of the grid system Co-ordinates are presented in ETRS89 Zone 29.
                used.

                Quality and adequacy of              Topographic control is based on published 1:5,000 topographic sheets for the
                topographic control.                 region.

Data           Data spacing for reporting of          Drill hole spacing varies from 30m to 60m and was selected to use existing
spacing        Exploration Results.                  access roads and to test continuation of the mineralisation documented in the
and                                                  old adits.
distribution
                Whether the data spacing and The mineralized domains have not yet been explored sufficiently to
                distribution is sufficient to   demonstrate the continuity of the mineralized structures to support a definition
                establish the degree of         of Mineral Resource.
                geological and grade continuity
                appropriate for the Mineral
                Resource and Ore Reserve
                estimation procedure(s) and


                Whether sample compositing           No compositing has been applied yet to the exploration results.
                has been applied

Orientation     Whether the orientation of the The orientation of the mineralised structures has not yet been ascertained and
                samples achieves unbiased       drilling has been oriented perpendicular to the interpreted structure of the
of data in
                sampling of possible structures mineralisation (observations from the old surface workings and adits).
relation to
                and extent to which this is
geological
                known, considering the deposit
structure
                type,


                If the relationship between the No orientation based sampling bias has been identified in the data at this
                drilling orientation and the     stage.
                orientation of key mineralized
                structures is considered to have
                introduced a sampling bias, this
                should be assessed and
                reported if material



Sample         The measures taken to ensure      All samples were logged and checked on return from the field.
Security       sample security.                  All samples were then stored in a secure building before being dispatched to
                                                 the laboratory via a reputable transport company.
Audits or      The results of any audits or      No audits or reviews have been carried out at this stage.
reviews        reviews of sampling techniques
               and data.

                      Section 2: Reporting of Exploration Results, Toral Project


Criteria             JORC Code explanation                               Commentary




                                                                                                                      
                   - Type, reference name/number, location           - The Toral zinc-lead permit is located
Mineral tenement
                     and ownership including agreements or             near Ponferrada in the west of the
and land tenure      material issues with third parties such as        province of León, Autonomous
status               joint ventures, partnerships, overriding          Community of Castile and León, Spain
                     royalties, native title interests, historical     approximately 400 km northwest of
                     sites, wilderness or national park and            Madrid.
                     environmental settings.                         - The project is a licence covering 20
                                                                       km2.
                   - The security of the tenure held at the          - There are no known impediments to the
                     time of reporting along with any known            licence security.
                     impediments to obtaining a licence to
                     operate in the area.

                   - Acknowledgment and appraisal of                 -   Between 1975 and 1985, the
Exploration done     exploration by other parties.                       Adaro/Peñarroya joint venture carried
by other parties
                                                                         out exploration on the four separate
                                                                         licences which now correspond,
                                                                         approximately, to the Toral permit
                                                                         area. Over a period of nine years, a
                                                                         topographical survey, geological
                                                                         mapping, a hydrogeological study and
                                                                         more than 40,000m of diamond drilling
                                                                         (62 holes and 41 wedges) were carried
                                                                         out.
                                                                     - Lundin Mining S.L. (Lundin) acquired
                                                                       the Toral investigation permit no. 15.199
                                                                       in 2007 and commenced exploration in
                                                                       April 2007. Lundin compiled the
                                                                       information collected by the previous
                                                                       licence holders including: o a review of
                                                                       the available geological maps, plans,
                                                                       sections and assays; o surveying old
                                                                       workings, old drill pads, and drill hole
                                                                       locations; and, a study of the existing
                                                                       Peñarroya/Adaro drill holes, description,
                                                                       photography. In addition, samples of
                                                                       drill core were sent to ALS Chemex in
                                                                       Canada in order to validate the reliability
                                                                       of the existing assays and exploration
                                                                       information was digitised. The results of
                                                                       Lundin’s preliminary work confirmed the
                                                                       mineral potential of the Toral area.
                                                                       However, it was apparent that the
                                                                       continuity and the thickness of the
                                                                       mineralisation were insufficiently
                                                                       detailed. Consequently, an exploration
                                                                       programme was designed to add
                                                                       information to the data set for a better
                                                                       understanding of the deposit. In 2007 to
                                                                       2009, seven diamond holes for a total of
                                                                       4,523.7m were drilled for the purpose of
                                                                       confirming the continuity of the
                                                                       mineralisation in the San Jose area of
                                                                       the Toral permit and also to test the
                                                                       possibility of an extension of the
                                                                       mineralisation at depth. GoldQuest
                                                                       acquired Lundin, including the Toral
                                                                       permit, in January 2010.
                                                                     -    During 2011 and 2012, GoldQuest
                                                                         conducted systematic geological
                                                                         mapping and soil sampling.




                                                                                                                     
                   - Deposit type, geological setting and style     -   The Toral permit is located in the West
Geology              of mineralisation.                                 Asturian Leonese Zone (WALZ), one of
                                                                        the tectonostratigraphic units in the
                                                                        Variscan (or Hercynian) Orogen of the
                                                                        north-western portion of the Iberian
                                                                        Peninsula. Within the WALZ, the
                                                                        permit area is located in the domain of
                                                                        the Mondoñedo Mantle. The most
                                                                        significant mineralisation is found in the
                                                                        upper carbonate layers of the Vegadeo
                                                                        Formation, at the contact between the
                                                                        Vegadeo Formation and the younger
                                                                        Los Cabos Series. The mineralisation
                                                                        comprises sulphides interbedded in
                                                                        limestones and dolomites, within a
                                                                        silicified facies, and in chloritic
                                                                        breccias. The mineralisation is
                                                                        epigenetic and formed during a
                                                                        metamorphic episode within the
                                                                        Hercynian Orogeny. The sulphide
                                                                        mineral assemblage comprises
                                                                        sphalerite, galena, pyrite and
                                                                        chalcopyrite.
- Drill hole       - A summary of all information material to       - The details of drill holes material to the
  Information        the understanding of the exploration             exploration results are reported in the
                     results including a tabulation of the            body of the announcement and also in
                     following information for all Material drill     Table 2 below.
                     holes:                                         - All drill hole collar locations, easting and
                   - easting and northing of the drill hole           northing are given in UTM 21, ETRS89
                     collar                                           grid, collar elevations (m), dip (°) and
                   - elevation or RL (Reduced Level –                 azimuth (UTM), down hole length (m).
                     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.
- Data             - In reporting Exploration Results,              - The weighted average of the
  aggregation        weighting averaging techniques,                  mineralised intervals was calculated by
  methods            maximum and/or minimum grade                     multiplying the assay of each drill
                     truncations (eg cutting of high grades)          sample by the length of each sample
                     and cut-off grades are usually Material          and dividing the sum of the product by
                     and should be stated.                            the down hole length sum of the
                   - Where aggregate intercepts incorporate           mineralised interval.
                     short lengths of high grade results and        - No metal equivalent values have been
                     longer lengths of low grade results, the         reported.
                     procedure used for such aggregation            - Continuous anomaly zones reported in
                     should be stated and some typical                Table 2 are at >0.05% of combined
                     examples of such aggregations should             Pb+Zn grade.
                     be shown in detail.
                   - The assumptions used for any reporting
                     of metal equivalent values should be
                     clearly stated.
- Relationship     - These relationships are particularly           - As stated in the announcement, all
  between            important in the reporting of Exploration          lengths shown including those in Table
  mineralisation     Results.                                           2 are down hole measurements with
  widths and       - If the geometry of the mineralisation with         true widths not known.
  intercept          respect to the drill hole angle is known,
  lengths            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            - Please see Table 2 showing the
                               scales) and tabulations of intercepts            tabulation of the significant assay
                               should be included for any significant           results.
                               discovery being reported. These should
                               include, but not be limited to a plan view
                               of drill hole collar locations and
                               appropriate sectional views.
           - Balanced        - Where comprehensive reporting of all           - The selected drill hole results reported
             reporting         Exploration Results is not practicable,          here are stated as being those of the
                               representative reporting of both low and         highest grades out of this drill
                               high grades and/or widths should be              programme.
                               practiced to avoid misleading reporting of
                               Exploration Results.
           - Other           - Other exploration data, if meaningful and      - No other substantive data has been
             substantive       material, should be reported including           omitted in the context of the
             exploration       (but not limited to): geological                 announcement. Any material
             data              observations; geophysical survey results;        observations arising from further data
                               geochemical survey results; bulk                 reviews will be reported in due course.
                               samples – size and method of treatment;
                               metallurgical test results; bulk density,
                               groundwater, geotechnical and rock
                               characteristics; potential deleterious or
                               contaminating substances.
           - Further work    - The nature and scale of planned further        - Follow-up work is planned to evaluate
                               work (eg tests for lateral extensions or         further the data from this and earlier
                               depth extensions or large-scale step-out         programmes and will be reported with
                               drilling).                                       diagrams in due course.
                             - Diagrams clearly highlighting the areas        - The next exploration programme will
                               of possible extensions, including the            include further modelling, drilling and
                               main geological interpretations and              metallurgical work.
                               future drilling areas, provided this
                               information is not commercially sensitive.


                                               Table 2: Toral Project Drilling Results


                                                       Drill-hole information


 Hole ID       Hole Type    Depth        Dip       Azimuth      Grid        East           North           RL              EPM
                             (m)

TOR17008         DDR        108.5        -45        211.5     ETRS89      680958.59      4710012.46      468.44       Toral 15.199

TOR17009         DDR        235.3        -45        196.7     ETRS89      680982.73      4710058.36      456.25       Toral 15.199


TOR17010         DDR        120.0        -45        197.5     ETRS89      680936.14      4710048.76      441.60       Toral 15.199

TOR17011         DDR        83.2         -45        208.0     ETRS89      680867.59      4710054.13      416.54       Toral 15.199


TOR17012         DDR        259.0        -50        28.0      ETRS89      680716.93      4709924.96      416.54       Toral 15.199

TOR17013         DDR        240.9        -50        190.2     ETRS89      681038.30      4710093.19      458.07       Toral 15.199




                                                                                                                           
                          Significant Intercepts


Drillhole   From     to        length (m)          Pb %           Zn %          Pb+Zn %

TOR17009    140.35   141.35    1.0                 1.22           9.77          10.99


TOR17009    141.35   142.35    1.0                 3.26           1.45          4.71


TOR17009    140.35   142.35    2.0                 2.24           5.61          7.85
                                                   continuous anomaly zone of Pb+Zn >0.05%
TOR17009    134.35   144.35    10.0



Drillhole   From     to       length (m)           Pb %           Zn %          Pb+Zn %

TOR17012    176.3    177.3    1.0                  0.67           16.10         16.77

TOR17012    177.3    178.3    1.0                  0.54           1.33          1.87

TOR17012    178.3    179.3    1.0                  0.72           1.95          2.66


TOR17012    176.3    179.3    3.0                  0.64           6.46          7.10


TOR17012    175.3    185.3    10.0                 continuous anomaly zone of Pb+Zn >0.05%




Drillhole   From     to       length (m)    Pb %          Zn %   Pb+Zn %


TOR17013    195.8    196.8    1.0           9.29          9.11   18.40


TOR17013    196.8    197.8    1.0           2.29          0.87   3.16


TOR17013    197.8    198.8    1.0           6.51          6.5    13.01


TOR17013    195.8    198.8    3.0           6.03          5.49   11.52


TOR17013    193.8    199.8    6.0           continuous anomaly zone       of
                                            Pb+Zn >0.05%




                                                                                             

Date: 31/10/2017 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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