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 29 The following summary of key historical base metal exploration work over the property is based on Milner (2018) and divided into three geographical areas. Locations and names of all base metal occurrences, prospects and anomalies recorded in the Department of Mines, Industry Regulation and Safety (DMIRS) MINEDAT database are shown on Figure 14. 2.9.1 Onedin and Sandiego Area Mapping by the GSWA in 1962 identified the gossan outcrops which are now known as the Onedin and Sandiego prospects. Pickands Mather explored for base metals over the area south of Halls Creek from 1963 to 1972. Between 1972 and 1977, Kennecott pegged tenements over known copper-lead-zinc-silver gossans at Koongie Park, around the Onedin and Sandiego areas, and undertook geological and structural mapping, rock chip and soil sampling, diamond and percussion drilling. From 1978 until 1979, Newmont continued to drill test known mineralisation and magnetic anomalies coincident with electromagnetic (EM) conductors along strike of known mineralisation. Extensive trenching, percussion and diamond drilling, detailed EM, ground magnetic surveys, and low-level aeromagnetic surveys failed to locate significant extensions to base metal prospects. In 1980, North Broken Hill concentrated on testing the supergene enriched zone of the base metal mineralisation at the Sandiego prospect. From 1983 to 1988, Asarco carried out RAB drilling, including limited work on supergene gold potential at Sandiego. From 1988 to 1989, RTZ Mining/BP Minerals in JV with Asarco continued testing for gold potential by re-assaying split core samples for gold. This work located several low-order gold anomalies in the Sandiego area. A group of six tenements were initially purchased by AAR from RTZ Mining in 1989, with three additional mining leases pegged and granted in 1994. The six originally granted mining leases were explored by AAR in JV with Billiton Australia (now Anglo Gold) from 1989 to 1994. Billiton earned its equity but was forced to sell its interest to AAR under a pre-emptive rights clause, when Acacia Resources purchased all of Billiton’s assets in Australia in 1994. Billiton undertook aeromagnetic and radiometric surveys. Minor geochemical sampling done during this time produced modest gold-bearing results. In 1995, Lachlan (a subsidiary of Barrick Gold) signed a JV agreement over the area and continued exploration until 2002. During 1996 and 1997, Lachlan and AAR carried out extensive resource-definition type drilling and developed geological and structural interpretations for both Onedin and Sandiego base metal deposits. AAR obtained 100% ownership of the project due to the withdrawal of Lachlan from the JV in 2002. In 2006, following a substantial improvement in base metal commodity prices, AAR commenced its first drilling program in its own right. AAR then established maiden Mineral Resource estimates for the Sandiego and Onedin deposits reported in accordance with the JORC Code (2004). In October 2008, AAR completed a study on the economics of underground mining of the Sandiego deposit. Further drilling occurred in 2007 to 2009, with subsequent resource updates reported in accordance with the JORC Code (2004). Some 245 RC and diamond drillholes encompassing 50,417 m have been drilled on the project by AAR. This effort focused on resource, metallurgical and geotechnical drilling at the Sandiego and Onedin base metal deposits. Since 2011, AAR has focused on gold exploration, with little exploration for base metals occurring on the property. 2.9.2 Emull Area and Associated Lamboo Complex West Coast Holdings Ltd explored for gold, copper, silver, and zinc between 1985 and 1990. They described a mineral resource for the Emull zinc deposit in 1990, but this was not reported in accordance with current codes. Exploration included ground magnetic surveys, induced polarisation (IP) surveys, rock chip sampling, and RAB and percussion drilling. Rock chip results in the main area of Emull returned some anomalous base metal values, with several anomalous intersections encountered in follow-up drilling. In the far northwest of the area, chip sampling returned some anomalous base metal values. However, this area was assumed to have already been explored and was not followed up. Hunter Resources was active in the area from Emull southwards to Loadstone Hill between 1986 and 1989, exploring for chrome, copper, platinum, palladium, and platinum group elements (PGEs). In 1986, soil sampling defined a copper-chromium-nickel-platinum-palladium anomaly, as well as stream sediment 6. Independent Technical Report continued 104