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 37 4 Risks 4.1 Exploration and Geology Risks A key risk, common to all exploration companies, is that expected mineralisation may not be present or that it may be too small to warrant commercial exploitation. The projects comprise a range of stages of advancement from early exploration through to advanced prospect. Risk is reduced at each stage. Exploration is an intrinsically risky process, particularly at an early stage. The Competent Person considers the property‐specific risks at a low to moderate potential to reasonably affect the reliability or confidence in exploration information obtained to date or exploration programs proposed in this Report. The interpretations and conclusions reached in this report are based on current scientific understanding and the best evidence available at the time of writing. 4.2 Mineral Resources Risks A number of opportunities for improvement were identified with the current Mineral Resources by CSA Global’s review, which can all be readily incorporated in future model updates. • The Mineral Resource models were created in 2009 and 2010, and the mineralisation domains are based upon lower cut‐off grades for copper and zinc supported by economic considerations of that time. The resource models should be reviewed and revised if alternative lower cut‐off grades for the domains are warranted. Alternative cut‐off grades for mineralisation located within potential open pit and underground locations should be considered. • A comprehensive review of sampling and associated quality assurance/quality control (QAQC) monitoring programs should be instigated. Limited supporting documentation related to RC drilling and sampling, and QAQC results has been located. • Further drilling should adopt a comprehensive QAQC monitoring program, including the use of field duplicates for RC drilling, a representative suite of standards to be used, laboratory duplicates and umpire analyses. • An audit of the drillhole database should be carried out to ensure the integrity of the database (including but not limited to database security, and correct populating of tables with data) is sufficient to support the Mineral Resource and future mining studies. 4.3 Land Access Risks Native title claims exist over all AuKing’s tenement areas. All exploration activities are required to be undertaken in line with relevant legislation, thus involving negotiations with Traditional Owners through the Kimberley Land Council. This process has hindered exploration in the past and there is risk that future exploration and development activities may encounter delays. In mitigation of this risk, AuKing has informed CSA Global that all granted titles have exploration deeds in place which ensures access to the tenure and defines the terms of any subsequent mining agreement. 4.4 Development and Operation Risks Risks common to all mineral projects also apply – environmental, permitting, legal, title, taxation, socio‐ economic, marketing, and political issues. 6. Independent Technical Report continued 112