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 III Note: CSA Global cautions that the two deposits and three oxidation zones have different metallurgical properties and/or cut-off grades, and this needs to be considered when assessing the combined totals. The Onedin deposit is located approximately 18 km southwest of Halls Creek, with the Sandiego deposit 5 km further to the southwest, both close to the Great Northern Highway providing excellent access. The deposits have been drilled by diamond coring and reverse circulation (RC) methods, with all holes used to support the Mineral Resource estimate. HQ sized core holes were drilled for metallurgical testwork with most drilled NQ size. CSA Global has reviewed the drilling methods, recovery, logging, surveying, sampling, sample analysis, quality assurance and quality control (QAQC) and other data issues associated with the drilling data for the two deposits and has deemed it suitable to support resource modelling and reporting of Mineral Resources. A conventional industry-standard methodology has been used in developing the Mineral Resource estimates for Onedin and Sandiego which is documented in resource reports and summarised in this report. Detailed commentary on each of the criteria outlined in Table 1 of the JORC Code has been developed by CSA Global and is provided as an appendix to this report. Rocks of the Koongie Park property are assigned to the Central Zone of the Lamboo Province, which is of Palaeoproterozoic age. They formed within the Halls Creek Orogen, a 300 km long and 50–60 km wide northwest trending tectonic belt. It is composed of folded sedimentary and volcanic rocks intruded by large igneous complexes. A complex history of polyphase deformation and metamorphism obscures primary textures of rocks and original contact relationships between units. Massive sulphide deposits at Sandiego and Onedin are hosted by the Koongie Park Formation which is composed of mafic and felsic volcanics, associated sediments including sandstone, mudstone, carbonate, chert and ironstone, and is intruded by rhyolitic to rhyodacitic sills, dolerite bodies and basalt dykes. Massive sulphide mineralisation is strata bound within the middle Mimosa Member, with disseminated sulphides overlying the massive sulphides. Both deposits are interpreted to occur within the limbs of intensely folded, higher order, double-plunging anticlinal structures. The axial planes of the fold structures appear to be upright to south-southeast-dipping. They trend northeast, sub-parallel to the regional fault systems of the Halls Creek Orogen. The massive sulphide deposits of Koongie Park are classified as volcanogenic massive sulphide (VMS) deposits. They are interpreted to have been formed around the time of deposition of the host volcanic and sedimentary strata in which they are bound and generally in bedding parallel lenses. Hydrothermal fluids associated with volcanic activity are interpreted to have been the source of the metals and other constituents of the mineralisation. The mineralogy of the primary mineralisation at Sandiego is pyrite-sphalerite-pyrrhotite-chalcopyrite ± galena which is largely hosted in the magnetite-rich exhalative suite of rocks where it occurs as a massive conformable wedge-shaped lens 200 m in length with a maximum thickness of 75 m. At Onedin, sphalerite is the main sulphide in the primary mineralisation with subordinate pyrrhotite-pyrite-chalcopyrite-galena. Onedin comprises numerous stacked lenses of mineralisation with a folded and faulted geometry over a vertical zone of 400 m. A deep weathering profile (up to 250 m) is exhibited at both deposits, resulting in three weathering domains; an oxidised zone at surface, a primary zone at depth, and the transition zone in between. Each zone has very different mineral assemblages and consequently very different metallurgical properties. A significant portion of both deposits is affected by oxidation. Significant metallurgical testwork has been undertaken for the deposits by various explorers since the 1970s. Several desktop mining studies were also undertaken by early explorers. Early work was effectively superseded by a major metallurgical testwork campaign and mining studies undertaken by AAR from 2006. The testwork was conducted by AMMTEC Laboratories under the guidance of the METS Engineering Group. The metallurgical testwork has 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 AuKing Mining Limited | PROSPECTUS 71