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 5 2 Koongie Park Project 2.1 Location and Access AuKing has secured the rights to earn up to a 75% interest in mineral assets that are all located in the East Kimberley region in the north of WA. They consist of a contiguous block of tenements named the Koongie Park project located extending between 5 km and 65 km southwest of the town of Halls Creek (Figure 1). The Great Northern Highway passes through Halls Creek and transects the Koongie Park project area, providing excellent road access to the property. However, it is remote with the nearest settlements to Halls Creek being Fitzroy Crossing 290 km by road to the west, Broome 685 km to the west, Warmun 160 km to the north, and Kununurra 380 km in the same direction. The project area lies within the Shire of Halls Creek and is covered by the following Geological Survey of Western Australia (GSWA) map sheets: • 1:250,000 Map Sheet SE52‐09 (MOUNT RAMSAY) and SE52‐10 (GORDON DOWNS) • 1:100,000 Map Sheet 4361 (ANGELO) and 4461 (HALLS CREEK). 2.2 Climate, Geography and Infrastructure The East Kimberley has a tropical monsoon climate receiving about 90% of its rainfall during the short wet season, from November to April, when cyclones are common and the rivers flood. In the dry season, from May to October, south-easterly breezes bring sunny days and cool nights. Halls Creek has a mean annual rainfall of 575.6 mm. The Kimberley is one of the hottest parts of Australia. Halls Creek’s average annual maximum temperature is 33.6 °C and average minimum is 20.0 °C. The hottest part of the year is November before the rains break, when the average maximum temperature is 38.3 °C (BOM, 2020). Physiographically the Koongie Park project lies across the watershed between the Laura River flowing to the southwest, the Margaret river flowing to the west, and the Elvire River flowing to the east. Elevations range from 380 m to 480 m above sea level with variable topography: flat, undulating, low rounded boulder-strewn hills, and subdued strike ridges. The more rugged Halls Creek Ridges lie to the southeast. Much of the surrounding region comprises extensive black-soil plains supporting grasslands and providing excellent grazing for the pastoral industry. Vegetation in the project area comprises mostly spinifex grass, acacia scrub and eucalyptus species. Halls Creek functions as a local population hub and as a support centre for cattle stations in the area. The Koongie Park project lies on the Lamboo and Koongie Park pastoral stations. The Koongie Park project lies on the lands of the Ngarrawanji, Koongie-Elvire and Jaru Traditional Owners within the jurisdiction of the Kimberley Land Council. The project area can be accessed by air services to Kununurra or Broome and then by road (Great Northern Highway). Air charter services can land at the small Halls Creek aerodrome. Generally, access within the project area is good via station tracks, fence lines and old exploration grid lines. An exploration camp has been established in Halls Creek comprising an office, accommodation, storage shed and core processing facilities. Infrastructure in the area is limited, with basic services and supplies available in Halls Creek. 2.3 Tenure The Koongie Park tenure package comprises 10 tenements with two mining leases and eight exploration licences. The total tenement area is approximately 507 km 2 . AuKing has purchased the rights to base metal for these tenements from the holders Anglo Australian Resources NL (AAR). The rights to gold deposits is retained by AAR, with the rights to gold associated with predominantly base metal deposits with AuKing. The primary mineral assets, the Onedin and Sandiego copper-zinc-gold-silver deposits, lie within the granted mining leases M80/277 and M80/276, which expire in 2031. The locations of tenements are shown in Figure 2. Table 3 provides a summary of the project tenements. 6. Independent Technical Report continued 80