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 using an on-site concentrator and off-site smelting is potentially viable. Copper concentrates and zinc concentrated produced would be trucked to a suitable port facility such as Wyndham and stored until shipped to overseas smelters. A prefeasibility-level study was recommended. Metallurgical factors or assumptions Significant metallurgical testwork has been undertaken for the deposit by various explorers since the 1970s. Early work was effectively superseded by a major metallurgical testwork campaign undertaken by AAR from 2006. The metallurgical testwork established that saleable copper and zinc concentrates could be produced from the sulphide mineralisation at Sandiego and Onedin but work on the transitional material (using conventional flotation techniques) was challenging. The 2007 testwork included 96 metallurgical sample tests on different ore types from Onedin and Sandiego to underpin a mineral processing flowsheet for economic study work. In 2009, AAR engaged Noel O’Brien of Trinol Pty Ltd to review the more than 300 metallurgical tests that had then been completed over the various ore types at Sandiego and Onedin, with a focus on the application of flotation recovery techniques. This study concluded that the metallurgy of the Sandiego transition and primary zones, whilst complex, is amenable to established flotation technology. The Onedin primary zone is amenable to the same flotation technology and can be processed through the same plant with minor modifications. The Onedin transition zone contains most of its value in the form of zinc oxide minerals and is not amenable to conventional flotation recovery but extraction by hydrometallurgy is possible. The Onedin oxide zone contains copper in the form of malachite which may be amenable to hydrometallurgy. Conventional flotation flowsheets were designed for processing the Onedin and Sandiego sulphide mineralisation. Project economics are very sensitive to metal recoveries and the grade of concentrate achieved. The O’Brien study recommended that further testwork focused on being as near to actual plant operating conditions as possible. Further testwork should encompass a continuous pilot-scale test facility. AAR engaged a number of metallurgical/mineral processing specialists to review the possibilities of implementing novel treatment processes to treat the problematic transitional and oxide ores of Koongie Park during period 2009 to 2012 (Galvanox, Albion). Meaningful trials recommended were not implemented. No metallurgical work has been undertaken from 2012 to the present. Environmental factors or assumptions The project is not located in an environmentally sensitive area. Several scoping studies have been undertaken, with no major environmental or other factors identified which would prevent the project from proceeding. It has been assumed that environmental factors can be effectively managed to allow the project to be bought into production. Anthropological, ethnographic surveys and environmental surveys have been undertaken prior to surface disturbance associated with exploration activities, with clearance being achieved over the majority of the deposit footprints. Identified sites have been placed in the public record. Bulk density The method for density measurements is discussed in Section 2 “Reporting of Exploration Results”. Diamond core billets were wrapped in cling film prior to immersion in water to prevent filling of cavities with water. The following density values were applied per combination of domain, as discussed in the Coffey 2010 report: • Oxide Zone = 2.4 • Transitional Zone; Zn zone = 3.1, Cu Zone = 3.3 • Primary zone; Zn Zone = 3.1, Cu Zone = 3.3 • Mixed Cu and Zn zones in Primary were assigned a density of 3.1. The Competent Person considers the procedures used to measure sample bulk density, and the density values assigned to the Mineral Resource, are appropriate for the style of mineralisation. Classification The Mineral Resource has been classified following due consideration of all criteria contained in Section 1, Section 2 and Section 3 of JORC 2012 Table 1. The Mineral Resources were 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. The Sandiego Mineral Resource is classified as a combination of Indicated and Inferred. Polygons were digitised in the longitudinal section of the mineralisation to define the classification envelopes. Waste blocks are recorded as unclassified. 6. Independent Technical Report continued 136