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 Criteria Commentary samples were accordingly composited to 1 m lengths. Composited sample data were statistically reviewed to determine appropriate top cuts, with top cuts applied for zinc, copper, lead, silver, and gold where required. Log probability plots were used to determine the top cuts, and the very high- grade samples were reviewed in Datamine by the Competent Person to determine if they were clustered with other high-grade samples. Sample populations were split by the copper and zinc mineralisation domains, as supported by a statistical analysis of assay data. The composited drill samples were input into variogram modelling. Downhole and directional variograms were modelled for zinc and copper within the combined mineralisation domains and by weathering profile. Moderate relative nugget effects were modelled, with short ranges approximately 50 m for zinc and copper. The “best” directional variogram in the oxide domain plunges 40° south in the plane of mineralisation (striking north-south). Grade interpolation used ordinary kriging (OK) for the zinc, copper and lead grade variables and inverse distance squared (IDS) for the silver and gold grade variables. The IDS estimation was also used as a check estimate to ensure the OK estimates were valid. 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. Grades were estimated into the waste domains using IDS. The Mineral Resource was an update of the 2008 Mineral Resource estimate, with additional drillholes incorporated. 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 Competent Person considers the procedures used to construct the block model and interpolate grades are appropriate for the style of mineralisation and reflect industry accepted practices. Moisture Tonnages are estimated on a dry basis. Cut-off parameters The Onedin Mineral Resource is reported above a cut-off grade of 3% Zn for the zinc and mixed zinc- copper zones; and above a cut-off of 0.8% Cu for the copper zone. Mining factors or assumptions In 2007, Holly Mining & Associates and Brian Speechley were commissioned by AAR to undertake a preliminary mining assessment of the Sandiego and Onedin deposits. This study established two potential mining operations: underground only at both Sandiego and Onedin; and an open pit operation at Onedin. No major mining problems were identified in this study; however, further work was subject to metallurgical recoveries. In 2008, internal mining study work by AAR focused on underground mining of the sulphide and transition zones at Sandiego, with construction of a 500 tpa processing plant (using flotation technologies) with a 4–5 year operating life with Onedin development having the capacity to extend project life to eight years mining Sandiego transition and sulphide ore. A conceptual study was also completed on open pit mining of Onedin based on conceptual metallurgical recoveries. 6. Independent Technical Report continued 126