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 31 The existing EM and IP data clearly show that the Sandiego and Onedin alteration systems are distinctly conductive and polarisable. The mineralised zones are also quite magnetic locally, with both magnetite and pyrrhotite present within the alteration assemblage. The bulk of the conductivity within the stronger sulphide zones is likely to be related to the pyrrhotite and chalcopyrite contents, with lesser contributions from pyrite and magnetite. In general, the properties of the Koongie Park mineralisation are consistent with typical VMS deposits; i.e. ranging from highly conductive (pyrrhotite ± chalcopyrite rich) to low conductivity (sphalerite rich); and variably magnetic, ranging from non-magnetic to quite strongly magnetic, depending on the pyrrhotite and/or magnetite content (Craven, 2004). 2.9.5 Assessment of Historical Exploration In 2017, AAR engaged a consultant firm (Map to Mine) to complete a historical data compilation and review over the project area. A total of 393 historical reports were reviewed, summarised and compiled into a central database. This included digitising maps to locate data points, as well as typing relevant locational, geochemical and geological data. The resulting database contains 1,710 drillholes, including 20,074 downhole assays and 17,642 geochemical samples with associated assay data. The data has been converted to GIS-compatible files. In addition to the Map to Mine work, AAR engaged Terra Resources to merge open- file aeromagnetic datasets and produce a series of images over the project. This detailed data was used by AAR to validate a structural overview undertaken in 2015 by Gold Vector. This compilation was not available to CSA Global at the time of report preparation, with AAR personnel still trying to locate the missing files on their computer backup systems. AAR’s annual report to the DMIRS (Milner, 2018) summarised the findings of the 2017 data compilation project and described a number of anomalous areas and gaps in previous exploration. CSA Global has not been able to confirm these observations. However, based on the documents available, CSA Global considers that historical exploration has been of sound quality and forms a strong basis for continued exploration. 2.10 Recent Exploration AuKing has only recently entered the JV agreement with AAR and has not yet undertaken any exploration. No recent base metal exploration had been undertaken on the project by AAR. As gold-only deposits are excluded from the Koongie Park mineral assets of AuKing, recent gold-focused exploration activities by AAR are not discussed in this section of the report. 2.11 Exploration Potential 2.11.1 Onedin – Exploration Potential At the Onedin deposit, the copper and zinc mineralisation plunge steeply to the south, with extensions possible beyond diamond drillholes KPD36 and DDH22. The current copper Mineral Resource is confined to the north, and up-plunge of KPD36; however, a review of the geological and structural logs for this and surrounding holes may provide guidance as to possible extensions to copper mineralisation. Zinc mineralisation is recorded in KPD36 and the zinc Mineral Resource extends 20 m along strike and down plunge to the south of this hole. Drillhole DDH22, drilled by Kennecott in the early 1970s, cuts off all mineralisation along strike to the south; however, potential exists for mineralisation to occur below the toe of this hole. CSA Global recommend the geological logs and sample assays for these historical holes be reviewed to confirm the limits for extending the Mineral Resource down plunge to the south. 2.11.2 Sandiego – Exploration Potential At the Sandiego deposit, the primary copper and zinc mineralisation plunge to the south, with potential targeting for copper and zinc mineralisation down plunge and below 50 m RL and to the south of northing 7,968,100. 6. Independent Technical Report continued 106