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 22 A block model with block sizes 5 m (X) x 10 m (Y) x 10 m (Z) was constructed, with the individual blocks assigned to the local geological domains (mineralisation and weathering) and each interpolated with a copper, zinc, gold, and silver grade. The block size dimensions were determined from approximately half the drillhole spacing. Drill samples were flagged by mineralisation and weathering domains, and the drill samples composited to 1 m length intervals. Composited sample data were statistically reviewed to determine appropriate top cuts, with top cuts applied for zinc, copper, silver, and gold where required. Variograms were modelled for copper and zinc from composited sample data within their respective mineralisation domains, with moderate relative nugget effects modelled, and with short ranges approximately 50 m for zinc and copper. Grade interpolation used ordinary kriging (OK) for the zinc and copper grade variables and inverse distance squared (IDS) for the silver and gold grade variables. All sub-blocks were assigned the grade of their parent block. Cell discretisation was used in each estimate. A sample search ellipse of 100 m x 100 m x 30 m (perpendicular to strike) was used, with a minimum of four samples and maximum of 12 samples used to interpolate grade into any one block. A minimum of five samples per drillhole was used for grade interpolation. Search radii were increased, and the minimum number of minimum samples reduced in subsequent sample searches if cells were not interpolated in the first pass. Octant searches were not used. The interpolated grades were validated by way of review of cross sections (block model and drill samples presented with same colour legend); swath plots, and comparison of mean grades from drillhole data with block model grades. The following density values (t/m 3 ) were applied, based upon density measurements taken from diamond core billets: • Oxide Zone (Cu domain only) = 2.38 • Transitional Zone; Zn zone = 2.56, Cu Zone = 3.26, Zn+Cu zone = 2.75 • Primary Zone; Zn Zone = 3.14, Cu Zone = 3.21, Zn + Cu Zone = 3.1. The Mineral Resource model is classified based upon drillhole spacing, quality of sampling and sample analyses, quantity of density measurements, and the relative confidence in the geological interpretation. This Mineral Resource is supported by a high level of confidence in the geological interpretations, sufficient to assume geological and grade continuity to satisfy an Indicated classification. All blocks within the Onedin Mineral Resource are classified as Indicated in accordance with the JORC Code (2012). “Table 1” commentary on the criteria specified by the JORC Code for the Onedin deposit are provided in Appendix A. 2.7 Mineral Resources – Sandiego Deposit Mineral Resources for the Sandiego copper-zinc-gold-silver deposit are presented in Table 5. Table 5: Sandiego 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 0.4 4.0 2.7 0.3 48 Inferred 0.01 1.0 0.1 0.05 3 Transitional and Primary Cu >0.8% Indicated 1.1 2.8 1.5 0.4 12 Inferred 0.4 1.8 2.0 0.3 5 Zn Dominant Primary Zn >3% Indicated 1.2 0.2 7.0 0.2 26 Inferred 0.4 0.1 6.2 0.1 9 Notes: The Mineral Resources were classified as Indicated or Inferred by CSA Global in accordance with the JORC Code (2012). Mineral Resources are reported above cut-off grades as described in the table. Tonnages are reported as dry tonnes. Rounding has been applied to appropriately reflect the precision of the estimate. AuKing Mining Limited | PROSPECTUS 97