Boda-Kaiser Regional Exploration Update | Financial Post

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.

Diamond core drilling was undertaken by Ophir Drilling Pty Ltd.
DD sample intervals were defined by geologist during logging to honour geological boundaries, cut in half by diamond saw, with half core sent to ALS Laboratories.
RC drilling was undertaken by Strike Drilling Pty Ltd.
RC samples are collected at one metre intervals via a cyclone on the rig. The cyclone is cleaned regularly to minimise any contamination.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Sampling
and
QAQC
procedures for drilling are
carried
out using Alkane protocols as per industry best practice.

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.

Core was laid out in suitably labelled core trays. A core marker (core block) was placed at the end of each drilled run (nominally 6m) and labelled with the hole number, down hole depth, length of drill run. Core was aligned and measured by tape, comparing back to this down hole depth consistent with industry standards. Half core is sampled with a Corewise automatic core saw.
RC Drilling – the total sample (~20-30kg) is delivered via cyclone into a large plastic bag which is retained for future use if required. A sub-sample of approximately 1kg is spear sampled from each plastic bag and composited to make a 3 metres sample interval. If strong mineralisation is observed by the site geologist this is sampled as a final 1m interval instead. The 1m intervals forming composite samples assaying ≥0.10 g/t Au or ≥0.10 % Cu are re-split using a cone splitter on the rig into a separate calico at the time of drilling and re-submitted to the laboratory for re-assay.
Gold
was
determined
by
fire
assay
fusion
of
a
50g
charge
with
an
AAS
analytical
finish.
A
multi-element
suite
was
determined
using
a multi-acid
digest
with
a ICP Atomic Emission Spectrometry or ICP Mass Spectrometry analytical
finish.

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).

Reverse circulation (RC) drilling using 110mm rods and 144mm face sampling hammer.
Triple tube diamond drilling with PQ3/HQ3 wireline bit producing 83mm diameter (PQ3) and 61.1mm diameter (HQ3) sized orientated core.

Drill sample recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

DD – core loss was identified by drillers and calculated by geologists when logging. Generally ≥99% was recovered with any loss usually in portions of the oxide zone.
Triple tube coring was used at all times to maximise core recovery with larger diameter (PQ3) core or RC precollars used in the oxide zones.
RC sample quality is assessed by the sampler by visual approximation of sample recovery and if the sample is dry, damp or wet.

Measures taken to maximise sample recovery and ensure representative nature of the samples.

Sample quality is logged.
Core drilling completed using HQ/PQ3 triple tube where possible to maximise core recovery.
- A high-capacity RC rig was used to enable dry samples to be collected. Drill cyclone is cleaned regularly during drilling and after each hole to minimise sample contamination.

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.

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.

Each one metre interval is geologically logged for characteristics such as lithology, weathering, alteration (type, character and intensity), veining (type, character and intensity) and mineralisation (type, character and volume percentage).

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography

Mostly logging was qualitative with visual estimates of the various characteristics. In addition, magnetic susceptibility data (quantitative) was collected as an aid for logging.
All drill holes were geologically logged into Micromine Geobank For Field Teams, followed by validation before importing into Alkane’s central Geobank database.
All drill holes were logged by qualified and experienced geologists

The total length and percentage of the relevant intersections logged

All drill holes were logged in full.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

Core sawn with half core samples submitted for analysis.

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

Each one metre interval is spear sampled with 3m composite samples collected in a calico sample bag and forwarded to the laboratory. Where strong mineralisation is observed by the site geologist, instead of compositing, this is individually sampled from the cone splitter on the RC rig as a 1 metre interval into a calico bag and forwarded to the laboratory.
The 1m intervals forming composite samples assaying ≥0.10 g/t Au or ≥0.10 % Cu are resplit using a cone splitter on the rig during the time of drilling and re-submitted to the laboratory for re-assay.
Laboratory Preparation – the entire sample (~3kg) is dried and pulverised in an LM5 (or equivalent) to ≥85% passing 75µm. Bulk rejects for all samples are discarded. A pulp sample (~100g) is stored for future reference.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Samples were delivered by Alkane personnel to ALS Minerals Laboratory, Orange NSW. Crushed with 70% <2mm (ALS code CRU-31), split by riffle splitter (ALS code SPL-21), and pulverised 1000grm to 85% <75um (ALS code PUL-32). Crushers and pulverisers are washed with QAQC tests undertaken (ALS codes CRU-QC, PUL-QC).

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples

Internal QAQC system in place to determine accuracy and precision of assays.

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

Non-biased core cutting and sampling using an orientation line marked on the core.
Duplicate RC samples are collected for both composite intervals and re-split intervals.

Whether sample sizes are appropriate to the grain size of the material being sampled.

Sample are of appropriate size.

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.

All samples were analysed by ALS Global.
Gold
is
determined
using
a
50g
charge
fused
at
approximately
1100°C
with
alkaline
fluxes,
including
lead
oxide.
The
resultant
prill
is
dissolved
in
aqua
regia
with
gold
determined
by
flame
AAS.
Other
geochemical
elements,
samples
are
digested
by
near-total
mixed
acid
digest
with
each
element
determined
by
ICP
Atomic
Emission
Spectrometry
or
ICP
Mass
Spectrometry. RC samples that are re-split are digested by aqua regia with a ICP Atomic Emission Spectrometry for Cu only.

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 (ie lack of bias) and precision have been established.

Full QAQC system in place including certified standards and blanks of appropriate matrix and concentration levels.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

Drill
data
is
compiled, collated,
and
reviewed
by
senior
staff.
External
consultants
do
not
routinely
verify
exploration
data
until
resource
estimation
procedures
are
deemed
necessary.

The use of twinned holes.

No
twinned
holes
have
been
drilled
at
this
stage
of
exploration.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

All
drill
hole
logging
and
sampling
data
is
entered
directly
into Geobank For Field Teams in the field. Validation of data occurs on entry in the field and on upload to Alkane drillhole database (Micromine Geobank front end).
All
primary
assay
data
is
received
from
the
laboratory
as
electronic
data
files
which
are
imported
into
the Alkane drillhole database
with
verification
procedures
in
place.
QAQC
analysis
is
undertaken
for
each
laboratory
workorder.

Discuss any adjustment to assay data.

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.

Drillholes are laid out using hand-held GPS (accuracy ±2m) then DGPS surveyed accurately (± 0.1m) by licenced surveyors on completion.

Specification of the grid system used.

Quality and adequacy of topographic control.

Drillhole collars DGPS surveyed accurately (± 0.1m) by licenced surveyors on completion.

Data spacing and distribution

Data spacing for reporting of Exploration Results.

The data spacing for this round of drilling is variable with focus on identifying new zones of mineralisation.

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

No Mineral Resource estimation procedure and classifications apply to the exploration data being reported.

Whether sample compositing has been applied

RC – each one metre interval is spear sampled with 3m composite samples collected in a calico sample bag and forwarded to the laboratory. Where strong mineralisation is observed by the site geologist, instead of compositing, this is individually sampled from the cone splitter on the RC rig as a 1 metre interval into a calico bag and forwarded to the laboratory. The 1m intervals forming composite samples assaying ≥0.10 g/t Au or ≥0.10 % Cu are re-split using a cone splitter on the rig during the time of drilling and re-submitted to the laboratory for re-assay. Composite samples may be reported if re-split assays were not received in time for announcement.

DD – Sample intervals are based on alteration and lithology but in general are 1m.

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.

Orientation at Kaiser is modelled as striking NW and broadly sub vertical geometry. High grading breccia mineralisation is modelled at Boda-Kaiser with a WNW plunge and KAI226 tested normal to this orientation. All other drilling was reconnaissance, so too early to understand the orientation.

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

Estimated true intervals are ~50% of downhole lengths at Kaiser and Boda. For other prospects it is too early to estimate.

Sample security

The measures taken to ensure sample security.

All samples are bagged into tied calico bags, before being grouped into polyweave bags and transported ~1hr to ALS Geochemistry Laboratory in Orange by Alkane personnel. All sample submissions are documented via ALS tracking system with results reported via email. Sample pulps are returned to site and stored for an appropriate length of time (minimum 3 years). The Company has in place protocols to ensure data security.

Audits or reviews