AuKing Mining Limited Prospectus

A U K ING M INING L IMITED I NDEPENDENT T ECHNICAL A SSESSMENT R EPORT – W ESTERN A USTRALIAN M INERAL A SSETS CSA Global Report Nº R278.2020 18 oxide and transition zone. Lead is also relatively enriched in gossans above the TOFR surface where it occurs as the minerals pyromorphite and cerussite. Localised occurrences of secondary zinc are also present in the form of smithsonite; however, zinc is generally depleted in the oxide zone. 2.5.4 Alteration Hydrothermal alteration associated with the mineralising process is best developed at Sandiego where four semi-conformable alteration zones are discerned in the Mimosa Member. These correspond to carbonate, talc, chlorite and silica zones which are interpreted to represent alteration of a seafloor environment by hydrothermal convective systems, common to VMS deposits. At Onedin, these alteration types are recognised but owing to the structural complexity and strong deep oxidation it is not possible to identify clear alteration zoning (Elliott et al., 2006). The recognition of similar alteration types and patterns at outlying prospects will be an important targeting criterion for future exploration work by AuKing. 2.6 Mineral Resources – Onedin Deposit The Mineral Resources for the Onedin copper-zinc-gold-silver deposit are presented in Table 4. Table 4: Onedin deposit Mineral Resource estimate Zone Reporting cut- off grade Classification Tonnes (Mt) Copper (%) Zinc (%) Gold (g/t) Silver (g/t) Supergene Cu >0.8% Indicated 0.5 1.4 1.0 0.4 33 Inferred - - - - - Transitional and Primary Cu >0.8% Indicated 0.8 1.6 1.1 0.3 34 Inferred - - - - - Zn Dominant Primary Zn >3% Indicated 2.0 0.5 6.3 0.3 32 Inferred - - - - - Notes: The Mineral Resources were classified as Indicated by CSA Global in accordance with the JORC Code (2012). Mineral Resources are reported above cut-off grades as described in the table. Resources are reported as dry tonnes. Rounding has been applied to appropriately reflect the precision of the estimate. The Onedin deposit is located approximately 18 km southwest of Halls Creek, WA, and approximately 5 km to the northeast of the Sandiego deposit (Figure 6). A Mineral Resource was estimated for the deposit by CSA Global in 2009. The Onedin deposit is classified as a VMS deposit, with base metals accumulating in a sub-horizontal basin floor replacement system. The deposit is interpreted to have been formed around the time of deposition of the host volcanic and sedimentary strata in which it is bound, and generally in bedding parallel lenses. Hydrothermal fluids associated with volcanic activity are interpreted to have been the source of the metals and other constituents of the mineralisation. Sphalerite is the main sulphide in the primary mineralisation at Onedin with subordinate pyrrhotite-pyrite-chalcopyrite-galena. The deposit is located within the middle Mimosa Member of the KPF (Figure 7), which includes volcanic units, carbonates, ironstone, chert, mudstone, quartz-bearing volcaniclastic beds, and sandstone (Figure 8). The Onedin deposit is situated within the limbs of intensely folded, higher order, double-plunging anticlinal structures with axial planes interpreted to be upright, to south-southeast dipping. They trend northeast, sub- parallel to the regional transcurrent and anastomosing fault systems that dominate the Halls Creek Orogen. A deep weathering profile is exhibited at Onedin, resulting in three weathering domains; an oxidised zone at surface, a primary zone at depth, and the transition zone in between. Each zone has very different mineral assemblages and consequently very different metallurgical properties. The oxidised zone consists of completely oxidised material, above the BOCO surface. This surface is on average about 100 m below ground level, is undulating and deepens significantly in the vicinity of steeply dipping faults. The transition zone consists of partially oxidised material and is located between the BOCO and the TOFR. Gossans are developed at surface above the mineral deposits. AuKing Mining Limited | PROSPECTUS 93