RNS Number : 5018E

Rockfire Resources PLC

04 July 2019

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

4 July 2019

Rockfire Resources plc

("LON:ROCK", "Rockfire" or "the Company")

Maiden Gold Resource for Lighthouse

Rockfire Resources plc (LON: ROCK), the gold and base-metal focused explorer is pleased to announce a maiden JORC Resource of over 50,000 ounces of near-surface gold at its 100%-owned Lighthouse tenements ("Lighthouse") in Queensland, Australia.

·      Inferred 1,349,000 tonnes @ 1.18g/t Au for 51,000 ounces of gold;

·      Rockfire has a discovery cost of AUD$13 (£7.50) per resource ounce of gold;

·      This resource includes drilling at both the Plateau and Double Event Prospects, providing two outstanding targets for resource growth within 30km of each other;

·      Rockfire's deepest gold intersection at Double Event is only 25m vertical from surface. The bulk of drilling at Plateau is within 50m vertical from surface;

·      Double Event and Plateau remain open in all directions;

·      Both resources are within easy trucking distance from operational processing plants;

·      The next expansion resource target at Lighthouse is 2.7 - 4.8 million tonnes*, grading between 1.2g/t Au and 1.6g/t Au.

David Price, Chief Executive Officer of Rockfire commented; 

"Our Maiden JORC Resource at Lighthouse provides a solid resource base to underpin the Company valuation. Rockfire is rapidly defining and expanding its asset base, with this JORC Inferred gold resource at Lighthouse adding to and complementing the historical 122,600 tonnes of copper owned 100% by Rockfire at the Copperhead Project."

"Rockfire is on an exciting and rapid growth curve and we are looking forward to further expansion of our copper and gold resources with continued exploration success. This result from our Maiden Resource at Lighthouse demonstrates and measures our exploration success to date and provides a sound platform for continued growth of the Company's asset base."

"The Company's prudent strategy of sound science, thorough evaluation and methodical exploration is being rewarded with measurable asset valuation increase. Our ambition to define large-scale mineral resources is beginning to bear fruit and our recent Maiden Resource merely signals the start of our planned resource expansion. This JORC gold resource provides the catalyst for our anticipated growth."

* This is an exploration target only and must not be misconstrued as an estimate of a Mineral Resource or Ore Reserve. The potential quantity and grade are conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

http://www.rns-pdf.londonstockexchange.com/rns/5018E_1-2019-7-4.pdf

Qualified Person Statement:

This release has been approved by Bernd Sostak (Member AusIMM), who is a casual employee of Rockfire Resources and is qualified with a B.Sc. in Geology, in accordance with the guidance note for Mining, Oil & Gas Companies issued by the London Stock Exchange in respect of AIM Companies, which outlines standards of disclosure for mineral projects.

Information in this announcement that relates to the Company Mineral resource estimations, exploration results, data quality, geological interpretations and potential for eventual economic extraction, is based on information compiled by the Relevant Rockfire Resources personnel under the supervision of Bernd Sostak. Mr Sostak 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" for the Company compilation. Mr Sostak consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.

For further information on the Company, please visit www.rockfireresources.com or contact the following: 

Rockfire Resources plc	Email: info@rockfireresources.com
David Price, Chief Executive Officer
Allenby Capital Limited (Nominated Adviser)	Tel: +44 (0) 20 33 285 656
John Depasquale/ Asha Chotai
First Equity Limited (Joint Broker)	Tel: +44 (0) 20 73 742 212
Jason Robertson
SI Capital (Joint Broker)	Tel: +44 (0) 1 483 413 500
Nick Emerson

JORC Code, 2012 Edition - Table 1 Report:  Lighthouse (Double Event) Resource June 2019

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 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.	Sampling was completed using 53 Reverse circulation (RC) drill holes. Reverse Circulation drilling was undertaken mainly with 1 m spaced intervals The RC samples were sampled generally on 1m basis (54%) and on a 2m basis (45%) with the remainder as 3 or 4 m composite sample.
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	The samples were split in the field and a standard was inserted with the primary assay split to determine any bias
	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 (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.	Reverse Circulation sampling were completed by various respected companies and assumed to an industry standard. The historical drill sampling extracted a 2kg split sample from each metre interval. The historical samples were then forwarded onto Pilbara Laboratories, Townsville. In areas of little geological interest the 1m samples were combined into 2m samples. Which are then crushed and pulverised to produce a ~200g pulp sub sample to use in the assay process. The historical samples were then assayed for gold/silver using an aqua regia acid digest with an Atomic absorption spectroscopy (AAS) analysis. .The more recent Rockfire Resources (RR) sampling used a 50g fire assay (ALS AA-26) technique  for gold determinations
Drilling techniques	Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, 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.).	RC Drilling techniques were used at the Double Event Prospect with average depth of drilling to 40 -50 metres with a 4.5 inch bit. The more recent RR  RC Drilling was completed using a UDR650 Truck mounted 8x8 Tatra
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	Recovery was good for RC holes where observed and recorded by historical operators. No quantitative recording, historical or recent was completed.
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	RC drilling contractors adjust their drilling approach to specific conditions to maximize sample recovery and the shallow holes and face hammer sample maximised the sample recovery.
	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.	There is no known relationship between sample recovery and grade, though sample recovery has been observed as high
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.	RC sample chips are logged on drill intervals of 1 metre and grouped where geology was common and composited. For each hole, lithology, alteration, veining and mineralisation are recorded.
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.	All logging is quantitative where visually possible, qualitative elsewhere with photos of rock chip trays.
	The total length and percentage of the relevant intersections logged.	100% of the RC chips are logged
Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken.	No diamond drilling has been undertaken at Double Event.
	If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.	All current RC samples were split using a rig-mounted cone splitter or a stand-alone riffle splitter to collect a 1 m sub sample. These samples were submitted to the ALS Laboratory for each 1m interval drilled. Samples were taken to ALS for primary preparation by drying, crushing and pulverizing. For the historical RC holes, the assay lab used was Pilbara Laboratories, Townsville. It is unknown from literature whether dry or wet chips sampled on the individual holes. The RR holes recovered dry chips apart from 1 hole with moisture in it
	For all sample types, the nature, quality and appropriateness of the sample preparation technique.	Sample preparation was not observed but is assumed best industry practice at that time and deemed adequate. For the RR drilling and samples, ALS crushed/pulverised the entire sample to 85% passing 75microns then took a 200 g subsample.
	Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.	Field duplicates were taken for the current RR RC sampling every 20m. It is unknown from literature if duplicates were taken for historical holes.
	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 diamond drilling at Double Event.
	Whether sample sizes are appropriate to the grain size of the material being sampled.	Sample sizes are considered appropriate as assumed Industry practice both historically and currently.
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.	The RR drilling involved 50 g Fire assay charge and used with a lead flux, dissolved in the furnace. The prill is totally digested by HCl and HNO3 acids before Atomic absorption spectroscopy (AAS) determination for gold analysis. It is unknown from historical literature analysis method was used.
	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.	No geophysical tools were used to determine any element concentrations
	Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	Certified reference materials (CRMs) were historically not inserted into the sample sequence. Current RR RC drilling incorporated a standard and blank for each hole. Blanks and standards are also placed in the analysis runs by the Laboratories at that time.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	All significant intersections are verified by internal personnel for the drill hole validation process, and later by a Competent person as an approximate 5 % random check.
	The use of twinned holes.	One RC hole twinned a major intersection of a historic RC hole with good correlation.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	Geological logging was captured using paper logs and entered into excel templates. Both a hardcopy and electronic copy of these are stored, as well as being loaded in to the database using manual techniques that the Independent person verifies on approximately 5 %. Assay files are received in csv format for new holes and copied direct into the excel template. The Geologist then checks the assays against historical logs. A geologist then checks that the results have been inserted correctly. Hardcopy and electronic copies of these are stored. No adjustments are made to this assay data. Hard copies of RC and  assays and surveys are kept on site and on an electronic library Visual checks are conducted as part of the validation process of the data in Micromine software.
	Discuss any adjustment to assay data.	No adjustments and only the first primary lab assay were used.
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.	50 of the 53 drill holes were located at surface and their position was recorded using a handheld Garmin 60 GPS, The remaining three holes were based off the geology log sheets and compared to historical paper plans During drilling and reviewing historical literature only minimal downhole surveys were observed. The historical drill holes used a local grid for locations and translated to UTM MGA 94.
	Specification of the grid system used.	Holes are based on the Mag Grid of Australia, zone 55.
	Quality and adequacy of topographic control.	Topographic control is derived from 3D drone photography and calibrated to ground by using selected handheld GPS points.
Data spacing and distribution	Data spacing for reporting of Exploration Results.	Exploration result data spacing is typically every 20m along strike and limited at depth.
	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.	Drill hole spacing across the area is typically 20m east-west  on strike in line with known surface outcrop and workings
	Whether sample compositing has been applied.	Sampling of RC was generally on 1m centres and at rare times 2 and 4 metres. Compositing was completed to 1m for geostatistical analysis at  estimation stage
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.	The majority of the structures Double Event dip steeply (80°) to the South. The holes are generally dipping to the North at a high intersection angle.
	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.	No sampling bias is considered to have been introduced by the drilling orientation
Sample security	The measures taken to ensure sample security.	The current RC samples were managed at site and hand delivered to the ALS. No record of the historical chain of custody  were observed in the historical literature
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	Review of historical sampling is considered meeting industry practice by previous operators and hence adequate.

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.	The Double Event prospect is situated on EPM 25617 and 26705, both of which are wholly owned by BGM Investments Pty Ltd which is a wholly owned subsidiary of RR. Double Event is located south of Charters Towers. No material third party issues exist at Double Event.
	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.	The EPM's are in good standing with the Queensland Government. No impediments have been identified to date.
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.	Exploration has been completed by other parties including Battle Mountain, WMC, and Newcrest. The historical work (Battle Mountain and WMC) were completed using a local grid. All relevant data was recorded in annual/bi-annual exploration reports. The data has been validated by RR staff and is considered to be of a high quality. RR commenced compilation of all the paper data in 2017 to support the generation of technical information and the new mineral resource. The local grid was constrained using handheld GPS located drill hole collars.
Geology	Deposit type, geological setting and style of mineralisation.	The Double Event prospect is situated in the Ordovician-Devonian Ravenswood Granodiorite Complex and considered to belong to the Charters Towers mineralisation style. This style is characterised by mesothermal shear zones which host narrow gold bearing quartz with minor sulphide veins. Historic mining at Double Event is reported as 1889 tonnes of ore returning 1744 ounces of bullion. Major activity within the area had ceased by 1900.
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: o  easting and northing of the drill hole collar o  elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar o  dip and azimuth of the hole o  down hole length and interception depth o  hole length.	The average drill hole is orientated towards 016⁰, dips at -60, has a depth of 47 m, and an RL of 347 m. Please refer to the drilling diagrams provided below.
	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.	Not Applicable
Data aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.	Weighted intervals are estimated with no cut off grades.
	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.	As above
	The assumptions used for any reporting of metal equivalent values should be clearly stated.	Gold (Au) only grades have been reported.
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results.	Not applicable
	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.	Drill hole at high angle to mineralisation
	If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known').	Downhole lengths
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 have been attached for geometry in plan and long section
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 grades are reported
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	No additional relevant information currently.
Further work	The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).	Further work is planned in 2019 to continue drilling the Double Event prospect.
	Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	See plan view in Appendix 4.

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.	All data is stored in a digital database with logging and assays being compared to original logs and assay sheets. Validation is also done against old paper plans. Downhole validation checks are made when loading into Micromine software.
	Data validation procedures used.	All data is manually validated and only approved data is used for the resource estimation along with visual and paper plan validity checks.
Site visits	Comment on any site visits undertaken by the Competent Person and the outcome of those visits.	Site visits were not undertaken by the Competent Person to date
	If no site visits have been undertaken indicate why this is the case.	The presence of RR company geologists and report work by numerous respectable operators (Battle Mountain, WMC, and Newcrest) render a site visit unnecessary currently. Photos and data have been reviewed.
Geological interpretation	Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit.	The geological interpretation of the deposit contains a high degree of visual confidence along with surface outcrop and historic workings. The contrasting rock types (altered/unaltered granite) and district visual mineralised zones (quartz veining with sulphides) define the interpretations.
	Nature of the data used and of any assumptions made.	The interpretation is primarily supported by Geological logging of drilling and geologic mapping
	The effect, if any, of alternative interpretations on Mineral Resource estimation.	No alternative interpretations have been completed to supplement this estimate.
	The use of geology in guiding and controlling Mineral Resource estimation.	The visual geology (sulphide/quartz veined shear zones) and drilling were relied on for the mineralised zone interpretation domains in concert with underground workings and surface outcrop.
	The factors affecting continuity both of grade and geology.	Structural features are known to offset the veining and are incorporated into the resource model where they are identified by drilling and underground workings.
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.	Mineralisation has been identified over a strike length of approximately of 2 km and to a typical known depth of approximately 25m to date. Due to minimal outcrop (soil cover and laterite, it is unclear how far or how many additional mineralised zones exist. Mineralisation typically occurs as distinct domains between 1m and 3m thick higher grade zones within a 10 m wide mineralised fault zone
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.	Drill holes were composited into 1.0m intervals down hole within each interpreted domain. The composite lengths were allowed to vary between 0.5m and 1.5m to ensure that no sampling was lost during the compositing process. The average grade and total length of the composite data was compared against the average grade and total length of the uncomposited data to validate the compositing process. The distribution of composite lengths was checked to ensure that the majority of the composites were close to the targeted length. Anisotropic inverse distance power (IDW to power of 2) was the method used for estimating Search distances used for estimation based on the current drill spacing. Grades were estimated into 5m easting, 5m elevation, and 1m North blocks Drill spacing approximates 20m x 20 m for most of the zones.
	The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.	No previous estimates or mine production records have been observed to date for the prospect. A check comparison was carried out using the grade tonnage report for each mineralized wireframe.
	The assumptions made regarding recovery of by-products.	Contained Gold  only  defined for estimation
	Estimation of deleterious elements or other non-grade variables of economic significance (e.g. sulphur for acid mine drainage characterisation).	No deleterious elements are estimated or assumed in the model
	In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.	Block size is 5m easting, 1m North to suit the narrow east-west orientation of the 3 domains. The z elevation is 5m. Search ellipsoids are (Axis 1) 35m (Axis 2) 20m by 2m (Axis 3) for all zones.  Given the inferred nature of the estimate, the search ellipsoid was radially expanded to populate each block and constrained domain (particularly in zones of slight/moderate dip/orientation change).
	Any assumptions behind modelling of selective mining units.	No assumptions made
	Any assumptions about correlation between variables.	No assumptions made
	Description of how the geological interpretation was used to control the resource estimates.	Mineralised zones were constrained according to geological features. Each domain is validated against the lithology, and then snapped to the drill-hole intersections to constrain the mineralized envelope as a footwall and hanging wall surface with a grade of 0.1 g/t Au minimum.
	Discussion of basis for using or not using grade cutting or capping.	Top-cuts were applied to the sample data based on  statistical analyses of the composite data for all the domains based on the same mineralization style and event
	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 estimated grades were assessed against in situ drill hole sample grades visually and against the wireframe grade tonnage report
Moisture	Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.	Tonnes were assumed to be dry in situ
Cut-off parameters	The basis of the adopted cut-off grade(s) or quality parameters applied.	Cut-off grades for reporting the base resource were developed based on broad assumptions for open pit costs and $1900 AUD gold price. A lower cut-off grade of 0.5gpt Au was adopted based on estimated costs and revenue
Mining factors or assumptions	Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.	No rigorous mining assumptions have been made at this early stage, however given the visual aspect and dip to mineralization it is likely to be in the order of 1 to 2 m minimum. No external dilution was applied to the shapes, where gold was less than 0.5 g/t Au and > 0.1 g/t Au this was used for purposes of domaining and internal dilution only Dilution material added to make the minimum mining width was not included in the resource inventory < 0.5 g/t Au.
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.	No metallurgical test work has been undertaken or observed and as such is considered contained metal at the prospect.Operating and Toll treating facilities are known within a 60 km radius
Environmental factors or assumptions	Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.	Given the early-stage nature of the prospect, no environmental factors or assumptions were 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 densities have been assumed as dry and for sulphide and oxide 2.7 and 2.4 were used respectively. This assumption is based on visual quartz and average typical granodiorite densities
	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.	No / minimal voids have been encountered apart from historical mine workings where historically reported or observed.
	Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.	The bulk densities have been assumed as 2.7 where fresh, and 2.4 where oxidized. These assumptions are based on the average typical granodiorite densities.
Classification	The basis for the classification of the Mineral Resources into varying confidence categories.	The classification of the resource was based on a series of factors including: Geological and grade continuity, density of drilling and early geological observations , unknown historical underground extraction On this basis, the mineral resource is considered inferred.
	Whether appropriate account has been taken of all relevant factors (i.e. 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).	With recent RR drilling and sampling there is an initial confidence to support contained gold estimates
	Whether the result appropriately reflects the Competent Person's view of the deposit.	This initial mineral resource estimate is considered representative for an early stage prospect
Audits or reviews	The results of any audits or reviews of Mineral Resource estimates.	The resource model has been reviewed by RR representatives.
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.	This initial mineral resource estimate is considered representative of the style of mineralisation.  The application of mapping logging and known historical workings supports an increase in the confidence of the model and the relative accuracy of the resource
	The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.	The estimate is considered to be a global estimate with areas locally potentially having high variability
	These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.	There are no observed production records to numerically compare estimates currently

 

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	Description of the Mineral Resource estimate used as a basis for the conversion to an Ore Reserve.	Not applicable (N/A)
	Clear statement as to whether the Mineral Resources are reported additional to, or inclusive of, the Ore Reserves.
Site visits	Comment on any site visits undertaken by the Competent Person and the outcome of those visits.	Not applicable (N/A)
	If no site visits have been undertaken indicate why this is the case.	Not applicable (N/A)
Study status	The type and level of study undertaken to enable Mineral Resources to be converted to Ore Reserves.	Not applicable (N/A)
	The Code requires that a study to at least Pre-Feasibility Study level has been undertaken to convert Mineral Resources to Ore Reserves. Such studies will have been carried out and will have determined a mine plan that is technically achievable and economically viable, and that material Modifying Factors have been considered.	Not applicable (N/A)
Cut-off parameters	The basis of the cut-off grade(s) or quality parameters applied.	Not applicable (N/A)
Mining factors or assumptions	The method and assumptions used as reported in the Pre-Feasibility or Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. either by application of appropriate factors by optimisation or by preliminary or detailed design).	Not applicable (N/A)
	The choice, nature and appropriateness of the selected mining method(s) and other mining parameters including associated design issues such as pre-strip, access, etc.	Not applicable (N/A)
	The assumptions made regarding geotechnical parameters (e.g. pit slopes, stope sizes, etc), grade control and pre-production drilling.	Not applicable (N/A)
	The major assumptions made and Mineral Resource model used for pit and stope optimisation (if appropriate).	Not applicable (N/A)
	The mining dilution factors used.	Not applicable (N/A)
	The mining recovery factors used.	Not applicable (N/A)
	Any minimum mining widths used.	Not applicable (N/A)
	The manner in which Inferred Mineral Resources are utilised in mining studies and the sensitivity of the outcome to their inclusion.	Not applicable (N/A)
	The infrastructure requirements of the selected mining methods.	Not applicable (N/A)
Metallurgical factors or assumptions	The metallurgical process proposed and the appropriateness of that process to the style of mineralisation.	Not applicable (N/A)
	Whether the metallurgical process is well-tested technology or novel in nature.	Not applicable (N/A)
	The nature, amount and representativeness of metallurgical test work undertaken, the nature of the metallurgical domaining applied and the corresponding metallurgical recovery factors applied.	Not applicable (N/A)
	Any assumptions or allowances made for deleterious elements.	Not applicable (N/A)
	The existence of any bulk sample or pilot scale test work and the degree to which such samples are considered representative of the orebody as a whole.	Not applicable (N/A)
	For minerals that are defined by a specification, has the ore reserve estimation been based on the appropriate mineralogy to meet the specifications?	Not applicable (N/A)
Environmental	The status of studies of potential environmental impacts of the mining and processing operation. Details of waste rock characterisation and the consideration of potential sites, status of design options considered and, where applicable, the status of approvals for process residue storage and waste dumps should be reported.	Not applicable (N/A)
Infrastructure	The existence of appropriate infrastructure: availability of land for plant development, power, water, transportation (particularly for bulk commodities), labour, accommodation; or the ease with which the infrastructure can be provided, or accessed.	Not applicable (N/A)
Costs	The derivation of, or assumptions made, regarding projected capital costs in the study.	Not applicable (N/A)
	The methodology used to estimate operating costs.	Not applicable (N/A)
	Allowances made for the content of deleterious elements.	Not applicable (N/A)
	The derivation of assumptions made of metal or commodity price(s), for the principal minerals and co- products.	Not applicable (N/A)
	The source of exchange rates used in the study.	Not applicable (N/A)
	Derivation of transportation charges.	Not applicable (N/A)
	The basis for forecasting or source of treatment and refining charges, penalties for failure to meet specification, etc.	Not applicable (N/A)
	The allowances made for royalties payable, both Government and private.	Not applicable (N/A)
Revenue factors	The derivation of, or assumptions made regarding revenue factors including head grade, metal or commodity price(s) exchange rates, transportation and treatment charges, penalties, net smelter returns, etc.	Not applicable (N/A)
	The derivation of assumptions made of metal or commodity price(s), for the principal metals, minerals and co-products.	Not applicable (N/A)
Market assessment	The demand, supply and stock situation for the particular commodity, consumption trends and factors likely to affect supply and demand into the future.	Not applicable (N/A)
	A customer and competitor analysis along with the identification of likely market windows for the product.	Not applicable (N/A)
	Price and volume forecasts and the basis for these forecasts.	Not applicable (N/A)
	For industrial minerals the customer specification, testing and acceptance requirements prior to a supply contract.	Not applicable (N/A)
Economic	The inputs to the economic analysis to produce the net present value (NPV) in the study, the source and confidence of these economic inputs including estimated inflation, discount rate, etc.	Not applicable (N/A)
	NPV ranges and sensitivity to variations in the significant assumptions and inputs.	Not applicable (N/A)
Social	The status of agreements with key stakeholders and matters leading to social licence to operate.	Not applicable (N/A)
Other	To the extent relevant, the impact of the following on the project and/or on the estimation and classification of the Ore Reserves:	Not applicable (N/A)
	Any identified material naturally occurring risks.	Not applicable (N/A)
	The status of material legal agreements and marketing arrangements.	Not applicable (N/A)
	The status of governmental agreements and approvals critical to the viability of the project, such as mineral tenement status, and government and statutory approvals. There must be reasonable grounds to expect that all necessary Government approvals will be received within the timeframes anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss the materiality of any unresolved matter that is dependent on a third party on which extraction of the reserve is contingent.	Not applicable (N/A)
Classification	The basis for the classification of the Ore Reserves into varying confidence categories.	Not applicable (N/A)
	Whether the result appropriately reflects the Competent Person's view of the deposit.	Not applicable (N/A)
	The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if any).	Not applicable (N/A)
Audits or reviews	The results of any audits or reviews of Ore Reserve estimates.	Not applicable (N/A)
Discussion of relative accuracy/ confidence	Where appropriate a statement of the relative accuracy and confidence level in the Ore Reserve 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 reserve within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors which could affect the relative accuracy and confidence of the estimate.	Not applicable (N/A)
	The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.	N/A
	Accuracy and confidence discussions should extend to specific discussions of any applied Modifying Factors that may have a material impact on Ore Reserve viability, or for which there are remaining areas of uncertainty at the current study stage.	N/A
	It is recognised that this may not be possible or appropriate in all circumstances. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.	N/A

 

JORC Code, 2012 Edition - Table 1 Report:  Lighthouse (Plateau) Resource June2019

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.	Sampling was completed using a combination of Reverse circulation (RC) and Diamond Drilling (DD). RC drilling was used for many of the Resource definition holes (37) with diamond the remaining drilling (5). Reverse Circulation drilling was undertaken with 1 m spaced intervals generally. DD core was transferred to core trays for logging and sampling. Half core was sampled typically on a 1m basis (91%) and occasionally on a 2m (9%) The RC samples by Rockfire Resources (RR) were sampled generally on 1m basis (90%) and occasionally on a 2m basis (7%) and a 3m basis (3%)
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	Core is aligned and measured by tape, comparing back to down hole core blocks consistent with industry practice where observed.
	Aspects of the determination of mineralisation that are Material to the Public Report.  In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	Diamond drilling and Reverse Circulation sampling were completed by respected companies to assumed industry standard, The sample is crushed and pulverised to produce an approximate ~200g pulp sub sample to use in the assay process. Historical gold assays fail to denote the assay method used. Current RR RC sampling used a 50g fire assay (ALS AA-26) from a 2 kg field sample spilt
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).	Both RC and DD Drilling techniques were used at the Plateau Prospect. Diamond drill holes pre 2000 were predominantly NQ or HQ. RC were from 4 .5 " diameter holes Core was aligned in core trays, but no modern orientation marks and techniques were observed. RR RC Drilling was completed using a UDR Truck mounted 8x8 Tatra
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	Recovery was good for both diamond core and RC holes where observed and recorded by historical operators. The majority of the core contains photographic records.
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	RC drilling contractors adjust their drilling approach to specific conditions to maximize sample recovery. For diamond drilling the contractors adjust their rate of drilling and method if recovery issues arise. All recovery is recorded by the drillers on core blocks. This is checked and compared to the measurements of the core by inter-block run lengths.
	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.	There is no known relationship between sample recovery and grade, sample recovery is high
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.	All diamond core is logged for, Lithology, veining, alteration, mineralisation and structure where recorded. RC sample chips are logged in both metre by metre and grouped interval types. For each hole, lithology, alteration, veining and mineralisation are recorded.
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.	All logging is quantitative where possible, qualitative elsewhere.
	The total length and percentage of the relevant intersections logged.	100% of the drill core and RC chips are logged where the records have been found
Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken.	The core was generally half core sampled. One diamond drill hole remains, the entirety of which was half sampled. All major mineralised zones are sampled, plus visibly altered material outside the mineralised zone. Sample intervals are mostly 1m long regardless of the geology. The assay lab used was not observed in any of the historical literature. Sample crushing and pulverising protocols completed directly on the samples is not known and assumed as best industry-practice at that time. Grind checks were not observed in any of the previous literature
	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	All current RC samples were split using a rig-mounted cone splitter to collect generally on a 1 m sample size. These samples were submitted to the ALS for each 1m interval drilled. Samples were taken to ALS for primary preparation by drying, crushing and pulverizing. For the historical RC holes, the assay lab used was not observed in any of the historical literature. It is unknown from literature whether dry or wet chips sampled on individual holes.
	For all sample types, the nature, quality and appropriateness of the sample preparation technique.	Sample preparation was not observed but is assumed best industry practice at that time and deemed adequate. .
	Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.	Field duplicates were taken for the recent RR RC sampling every 20m. It is unknown from literature if duplicates were taken.
	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.	It is unknown from literature if duplicates were taken for diamond core.
	Whether sample sizes are appropriate to the grain size of the material being sampled.	Sample sizes are considered appropriate as assumed Industry practice.
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.	The current drilling involved using a 50 g/t Au Fire assay charge with a lead flux, dissolved in the furnace. The prill is totally digested by HCl and HNO3 acids before Atomic absorption spectroscopy (AAS) determination for gold analysis. It is unknown from historical literature which final assay analysis method was used.
	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.	No geophysical tools were used to determine any element concentrations
	Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	Certified reference materials (CRMs) were historically not inserted into the sample sequence. The recent RR RC drilling incorporated a standard every 30m. Blanks and standards are placed in the analysis runs by the Laboratories under their own QA/QC programs.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	All significant intersections are verified by internal RR geologists during the drill hole validation process, and later by a Competent person to be signed off at an approximate 5 % random check.
	The use of twinned holes.	One RR hole twinned a historical RC hole. The hole in question was commented as having possible downhole contamination. The RR drill hole encountered mineralisation where expected, and repeated the mineralisation pattern but in more discrete zones. The RR hole successfully demonstrated that the historical hole in question should be excluded from the mineral estimate due to excessive down hole contamination.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	Geological logging was captured using paper logs and entered later into excel templates. Both a hardcopy and electronic copy of these are stored, as well as being loaded in to the database using manual techniques that the Independent person verifies on approximately 5 %. Assay files are received in csv format for new holes and copied direct into the excel log. The Geologist then checks the assays against historical logs. A geologist then checks that the results have been inserted correctly. Hardcopy and electronic copies of these are stored. No adjustments are made to this assay data. Hard copies of RC and  core /assays and surveys are kept on site and on an electronic library Visual checks are conducted as part of the validation process of the data in Micromine software.
	Discuss any adjustment to assay data.	No adjustments and only the first primary lab assay are used.
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.	73 of the 77 holes were located at surface and their position was recorded using a DGPS, The remaining four holes were based off the geology log sheets and compared to historical plans Reviews of the historical literature highlight that only some downhole surveys were recorded.. The original drill holes used a local grid for their easting and northing coordinates. The local grid was translated into MGA 94 z55 by using by a DGPS to record the location of historical drill hole collars.
	Specification of the grid system used.	Holes are based on the Mag Grid of Australia 94, zone 55.
	Quality and adequacy of topographic control.	Topographic control is derived from 3D drone photography and collaborated on ground by using selected DGPS points.
Data spacing and distribution	Data spacing for reporting of Exploration Results.	Exploration result data spacing can be highly variable, up to 100 m
	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.	Drill hole spacing varies across the area and is typically 30m east-west and 15m north-south (down dip drilling)
	Whether sample compositing has been applied.	Sampling of DD and RC mineralisation was generally on 1m centres. Compositing was completed to 1m for geostatistical analysis at  the cut-off grade and resource estimation stage
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.	The majority of the structures Plateau dip steeply (70°) to the South. With one structure dipping steeply to the north (75-80⁰). The holes targeting the south dipping structure dip to the North at a high intersection angle. The holes targeting the steeply north dipping structure are both north and south orientated.
	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.	Given the steepness of the mineralised zones (70-80⁰) no sampling bias is considered to have been introduced by the drilling orientation
Sample security	The measures taken to ensure sample security.	The current RR RC samples were managed at site and hand delivered to the ALS. No record of the historical chain of custody  measures were observed in the historical literature
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	Review of historical sampling is considered meeting industry practice by previous operators.

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.	The Plateau prospect is situated on EPM 25617, which is 100% owned by BGM Investments Pty Ltd (a wholly owned subsidiary of RR). Plateau is located south east of Charters Towers. No material third party issues exist at Plateau.
	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.	EPM 25617 is in good standing with the Queensland Government. No impediments have been identified to date.
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.	Exploration has been completed by other parties including Penarroya, Esso, Citi, Aberfoyle, and Newcrest. The historical work was completed using a local grid. All relevant data was recorded in annual/bi-annual exploration reports. The data has been validated by RR staff and is considered to be of a high quality. RR commenced compilation of all the paper data in 2017 to support the generation of technical information and the new mineral resource. The local grid was constrained using DGPS located historical drill hole collars.
Geology	Deposit type, geological setting and style of mineralisation.	The Plateau prospect is hosted in andesitic lava flows of the Trooper Creek Formation. The Trooper Creek formation forms part of the Cambro-Ordovician Seventy Mile Range Group. The mineralisation style is similar to the Mt Wright deposit, being breccia hosted with rhyolite intrusive phases. Plateau is considered an Intrusion Related Gold System.
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: o  easting and northing of the drill hole collar o  elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar o  dip and azimuth of the hole o  down hole length and interception depth o  hole length.	The average drill hole is orientated due north, dips at -60⁰, has a depth of 110 m, and an RL of 314 m. See collar plan and long section for details.
	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.	Not Applicable
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.	All historical diamond core results have been reported using the from-to weighting method in the Micromine software. The cut of grade for the mineral resource estimate is discussed below.
	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.	Mineralised envelopes were developed with visual contacts and grades above 0.1 g/t Au
	The assumptions used for any reporting of metal equivalent values should be clearly stated.	Gold (Au) only grades have been reported.
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results.	Downhole lengths have been reported
	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.	The drilling intersects the known mineralisation at high angle
	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').	To be noted as required
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 have been attached for geometry in plan and long section view.
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.	Mineralisation for low grade and high grade are highlighted
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.	No additional relevant information exists at this time.
Further work	The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).	Further work is planned in 2019 in order to extend the currently defined mineralised zones along strike and down dip.
	Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	See Long section in  Appendix 4

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.	All data is stored in a digital database with logging and assays being compared to original logs and assay sheets. Validation is also done against old paper plans. Downhole validation checks are made when loading into Micromine software.
	Data validation procedures used.	All data is manually validated and only approved data is used for the resource estimation.
Site visits	Comment on any site visits undertaken by the Competent Person and the outcome of those visits.	Site visits were not undertaken by the Competent Person to date
	If no site visits have been undertaken indicate why this is the case.	The presence of abundant work by numerous respectable operators (Aberfoyle, Esso, City Resources, Penarroya, and Newcrest) and RR geologists do not necessitate a site visit at this time. Photos and data have been reviewed.
Geological interpretation	Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit.	The geological interpretation of the deposit contains a high degree of confidence. This is due to the contrasting rock types (breccia, andesite and rhyolite) and district mineralised zones (gossan/semi-massive sulphides) which makes it clear to log.
	Nature of the data used and of any assumptions made.	The interpretation is primarily supported by Geological logging of drilling and geologic mapping
	The effect, if any, of alternative interpretations on Mineral Resource estimation.	No alternative interpretations have been completed to date.
	The use of geology in guiding and controlling Mineral Resource estimation.	The geology (sulphide/gossanous rich fault zones) was used heavily in determining the mineralised zones.
	The factors affecting continuity both of grade and geology.	Structural features are known to offset the veining and are incorporated into the resource model when they are identified in drilling.
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.	Mineralisation has been identified over a strike length approximately of 750m and over a depth of approximately 500m to date. Due to the lack of outcrop (soil cover and laterite, it is unclear how far or how many additional mineralised zones exist. Mineralisation typically occurs as distinct domains between 1m and 15m thick high grade zones within a 20 m wide mineralised fault zone
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.	Drill holes were composited into 1.0m intervals down hole within each interpreted domain. The composite lengths were allowed to vary between 0.5m and 1.5m to ensure that no sampling was lost during the compositing process. The average grade and total length of the composite data was compared against the average grade and total length of the uncomposited data to check the compositing process. The distribution of composite lengths was checked to ensure that the majority of the composites were close to the targeted length. Anisotropic inverse distance power (IDW to the power of 2) was the estimating method used. Search distances used for estimation based on drill spacing. Grades were estimated into 5m easting, 5m elevation, and 1m North panels Drill spacing approximates 30m x 15m in some zones and sporadic on others.
	The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.	No previous JORC compliant estimates or mine production records exists for the prospect; a check comparison was carried out using the grade tonnage report for each mineralized wireframe.
	The assumptions made regarding recovery of by-products.	No by-products re estimated and only contained gold estimated
	Estimation of deleterious elements or other non-grade variables of economic significance (eg sulphur for acid mine drainage characterisation).	No deleterious elements are estimated in the model
	In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.	Block size is 5m easting, 1m North to suit the narrow east-west orientation of the 3 domains. The z elevation is 5m. Search ellipsoids are (Axis 1) 50m (Axis 2) 30m by 2m(Axis 3) for zones 1 and 2; and 80m (Axis 1) 50m (Axis 2) by 3m (Axis 3)  Given the inferred nature of the estimate, the search ellipsoid was radially expanded as to populate each block (particularly in zones of slight/moderate dip/orientation change).
	Any assumptions behind modelling of selective mining units.	The minimum domain width is 1 m and where visual alteration and grades > 0.1 g/t Au were observed then they were incorporated
	Any assumptions about correlation between variables.	Visualisation in Micromine of block grades versus drill hole grades
	Description of how the geological interpretation was used to control the resource estimates.	Mineralised zones were constrained according to geological features. Each domain is validated against the lithology, and then snapped to the drill-hole intersections to constrain the mineralized envelope as a footwall and hanging wall surface.
	Discussion of basis for using or not using grade cutting or capping.	Top-cuts were applied to the sample data based on  statistical analysis of the data total domain
	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 estimated grades were assessed against sample grades and against the wireframe grade tonnage report
Moisture	Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.	Tonnes were assumed to be dry in situ
Cut-off parameters	The basis of the adopted cut-off grade(s) or quality parameters applied.	Cut-off grades for reporting the base resource were developed using a Gold Price of $AUD 1900 and estimated costs given there are treatment plants within a 60 km radius A cut-off grade of 0.5gpt Au was adopted as the base for reporting
Mining factors or assumptions	Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.	No assumptions made for mining apart from a minimum 1 metre composite at grade and supporting geology.
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.	No metallurgical test work historical or current exists for the prospect and considered contained gold metal.
Environmental factors or assumptions	Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.	Given the early-stage nature of the prospect, no environmental factors or concerns are observed at current.
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 densities have been assumed as 2.7 where fresh, and 2.4 where oxidized. These assumptions are based on the average andesite S.G. and are likely to be conservative as it doesn't take into account the high sulphide nature of the mineralized zones.
	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.	No/minimal voids are encountered or anticipated.
	Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.	The bulk densities have been assumed as 2.7 where fresh, and 2.4 where oxidized. These assumptions are based on the average andesite S.G. and are likely to be conservative as it doesn't take into account the high sulphide nature of the mineralized zones.
Classification	The basis for the classification of the Mineral Resources into varying confidence categories.	The classification of the resource was based on a series of factors including early stage of knowledge base: Geological and grade continuity Density of available drilling. The resource is considered as being inferred until further data becomes relevant.
	Whether appropriate account has been taken of all relevant factors (ie. relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).
	Whether the result appropriately reflects the Competent Person's view of the deposit.	This mineral resource estimate is considered representative as an early stage prospect
Audits or reviews	The results of any audits or reviews of Mineral Resource estimates.	The resource model has not had external  reviews at this stage
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.	This mineral resource estimate is considered an initial estimate based off the style of mineralisation, the current geology and drilling. This resource will form the base for additional drilling to increase confidence.
	The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.	The estimate is considered to be a global estimate with areas locally potentially having high variability
	These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

 

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	Description of the Mineral Resource estimate used as a basis for the conversion to an Ore Reserve.	Not applicable (N/A)
	Clear statement as to whether the Mineral Resources are reported additional to, or inclusive of, the Ore Reserves.
Site visits	Comment on any site visits undertaken by the Competent Person and the outcome of those visits.	Not applicable (N/A)
	If no site visits have been undertaken indicate why this is the case.	Not applicable (N/A)
Study status	The type and level of study undertaken to enable Mineral Resources to be converted to Ore Reserves.	Not applicable (N/A)
	The Code requires that a study to at least Pre-Feasibility Study level has been undertaken to convert Mineral Resources to Ore Reserves. Such studies will have been carried out and will have determined a mine plan that is technically achievable and economically viable, and that material Modifying Factors have been considered.	Not applicable (N/A)
Cut-off parameters	The basis of the cut-off grade(s) or quality parameters applied.	Not applicable (N/A)
Mining factors or assumptions	The method and assumptions used as reported in the Pre-Feasibility or Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. either by application of appropriate factors by optimisation or by preliminary or detailed design).	Not applicable (N/A)
	The choice, nature and appropriateness of the selected mining method(s) and other mining parameters including associated design issues such as pre-strip, access, etc.	Not applicable (N/A)
	The assumptions made regarding geotechnical parameters (eg pit slopes, stope sizes, etc), grade control and pre-production drilling.	Not applicable (N/A)
	The major assumptions made and Mineral Resource model used for pit and stope optimisation (if appropriate).	Not applicable (N/A)
	The mining dilution factors used.	Not applicable (N/A)
	The mining recovery factors used.	Not applicable (N/A)
	Any minimum mining widths used.	Not applicable (N/A)
	The manner in which Inferred Mineral Resources are utilised in mining studies and the sensitivity of the outcome to their inclusion.	Not applicable (N/A)
	The infrastructure requirements of the selected mining methods.	Not applicable (N/A)
Metallurgical factors or assumptions	The metallurgical process proposed and the appropriateness of that process to the style of mineralisation.	Not applicable (N/A)
	Whether the metallurgical process is well-tested technology or novel in nature.	Not applicable (N/A)
	The nature, amount and representativeness of metallurgical test work undertaken, the nature of the metallurgical domaining applied and the corresponding metallurgical recovery factors applied.	Not applicable (N/A)
	Any assumptions or allowances made for deleterious elements.	Not applicable (N/A)
	The existence of any bulk sample or pilot scale test work and the degree to which such samples are considered representative of the orebody as a whole.	Not applicable (N/A)
	For minerals that are defined by a specification, has the ore reserve estimation been based on the appropriate mineralogy to meet the specifications?	Not applicable (N/A)
Environmental	The status of studies of potential environmental impacts of the mining and processing operation. Details of waste rock characterisation and the consideration of potential sites, status of design options considered and, where applicable, the status of approvals for process residue storage and waste dumps should be reported.	Not applicable (N/A)
Infrastructure	The existence of appropriate infrastructure: availability of land for plant development, power, water, transportation (particularly for bulk commodities), labour, accommodation; or the ease with which the infrastructure can be provided, or accessed.	Not applicable (N/A)
Costs	The derivation of, or assumptions made, regarding projected capital costs in the study.	Not applicable (N/A)
	The methodology used to estimate operating costs.	Not applicable (N/A)
	Allowances made for the content of deleterious elements.	Not applicable (N/A)
	The derivation of assumptions made of metal or commodity price(s), for the principal minerals and co- products.	Not applicable (N/A)
	The source of exchange rates used in the study.	Not applicable (N/A)
	Derivation of transportation charges.	Not applicable (N/A)
	The basis for forecasting or source of treatment and refining charges, penalties for failure to meet specification, etc.	Not applicable (N/A)
	The allowances made for royalties payable, both Government and private.	Not applicable (N/A)
Revenue factors	The derivation of, or assumptions made regarding revenue factors including head grade, metal or commodity price(s) exchange rates, transportation and treatment charges, penalties, net smelter returns, etc.	Not applicable (N/A)
	The derivation of assumptions made of metal or commodity price(s), for the principal metals, minerals and co-products.	Not applicable (N/A)
Market assessment	The demand, supply and stock situation for the particular commodity, consumption trends and factors likely to affect supply and demand into the future.	Not applicable (N/A)
	A customer and competitor analysis along with the identification of likely market windows for the product.	Not applicable (N/A)
	Price and volume forecasts and the basis for these forecasts.	Not applicable (N/A)
	For industrial minerals the customer specification, testing and acceptance requirements prior to a supply contract.	Not applicable (N/A)
Economic	The inputs to the economic analysis to produce the net present value (NPV) in the study, the source and confidence of these economic inputs including estimated inflation, discount rate, etc.	Not applicable (N/A)
	NPV ranges and sensitivity to variations in the significant assumptions and inputs.	Not applicable (N/A)
Social	The status of agreements with key stakeholders and matters leading to social licence to operate.	Not applicable (N/A)
Other	To the extent relevant, the impact of the following on the project and/or on the estimation and classification of the Ore Reserves:	Not applicable (N/A)
	Any identified material naturally occurring risks.	Not applicable (N/A)
	The status of material legal agreements and marketing arrangements.	Not applicable (N/A)
	The status of governmental agreements and approvals critical to the viability of the project, such as mineral tenement status, and government and statutory approvals. There must be reasonable grounds to expect that all necessary Government approvals will be received within the timeframes anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss the materiality of any unresolved matter that is dependent on a third party on which extraction of the reserve is contingent.	Not applicable (N/A)
Classification	The basis for the classification of the Ore Reserves into varying confidence categories.	Not applicable (N/A)
	Whether the result appropriately reflects the Competent Person's view of the deposit.	Not applicable (N/A)
	The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if any).	Not applicable (N/A)
Audits or reviews	The results of any audits or reviews of Ore Reserve estimates.	Not applicable (N/A)
Discussion of relative accuracy/ confidence	Where appropriate a statement of the relative accuracy and confidence level in the Ore Reserve 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 reserve within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors which could affect the relative accuracy and confidence of the estimate.	Not applicable (N/A)
	The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.	N/A
	Accuracy and confidence discussions should extend to specific discussions of any applied Modifying Factors that may have a material impact on Ore Reserve viability, or for which there are remaining areas of uncertainty at the current study stage.	N/A
	It is recognised that this may not be possible or appropriate in all circumstances. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.	N/A

 

http://www.rns-pdf.londonstockexchange.com/rns/5018E_2-2019-7-4.pdf

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

DRLLIFLADVISIIA