IRW-News: Altona Mining Ltd.: Altona Mining: TURKEY CREEK Erste Vorratsschätzung

IRW-PRESS: Altona Mining Ltd.: Altona Mining: TURKEY CREEK Erste Vorratsschätzung

TURKEY CREEK - ERSTE VORRATSSCHÄTZUNG

- Erzvorrat Turkey Creek von 11,3 Mio. Tonnen mit 0,46 % Kupfer für 52.100 Tonnen enthaltenes Kupfer.

- Die Lagerstätte Turkey Creek liegt unmittelbar neben der geplanten Aufbereitungsanlage.

- Erzvorrat des Kupferprojekts Cloncurry liegt bei 86 Mio. Tonnen mit 0,50 % Kupfer und 0,07 g/t Gold für 427.000 Tonnen enthaltenes Kupfer und 205.000 Unzen enthaltenes Gold.

- Vorratszunahme verlängert die Lebensdauer der Mine auf 13 Jahre.

- Vorratszunahme wird Projektrenditen verbessern.

- Turkey Creek wird bei Beginn des SRIG-Joint-Venture in die Projektoptimierung eingeschlossen.

- Investitions- und Betriebskosten haben sich erwartungsgemäß seit 2012 DFS und 2014-Update verbessert.

Altona Mining Limited (Altona oder das Unternehmen - http://www.commodity-tv.net/c/mid,3159,Companies_und_Projects/?v=286622) gibt die erste Erzvorratsschätzung für die Lagerstätte Turkey Creek bekannt. Diese Lagerstätte liegt auf dem sich zu 100 % im Besitz des Unternehmens befindlichen Kupferprojekts Cloncurry in der Nähe von Mt Isa, Queensland.

Das Kupferprojekt Cloncurry ist Gegenstand eines geplanten 330-Mio.-AUD-Joint-Venture (JV) mit Sichuan Railway Investment Group (SRIG) (siehe Pressemitteilung vom 2. Juni 2016 für weitere Informationen über das SRIG-JV).

Das geplante Bergbauprojekt Little Eva liegt innerhalb des Projekts Cloncurry. Turkey Creek liegt 1,5 km östlich der geplanten Tagebaumine Little Eva und innerhalb von 650 m einer geplanten Aufbereitungsanlage mit einer Kapazität von 7 Mio. Tonnen pro Jahr, die auf den gewährten Abbaukonzessionen liegt (Abbildungen 1 und 3).

Folgend die Vorratsschätzung:

11,3 Mio. Tonnen mit 0,46 % Kupfer Kupfer für 52.100 Tonnen enthaltenes Kupfer.

Diese Erzvorratsschätzung wurde basierend auf der Integration in den Minenplan der Mine Little Eva durchgeführt. Der Minenplan für die Entwicklung der Mine Little Eva wurde in dem der ASX am 13. März 2014 vorgelegten Update der endgültigen Machbarkeitsstudie dargestellt. Die Tagebaugrube Turkey Creek wird 1,15 km lang und 175 m tief sein (Abbildung 2) und Sulfiderz an die geplante nahe gelegene Aufbereitungsanlage Little Eva liefern. Zurzeit sieht der Minenzeitplan den Abbau von Turkey Creek gegen Ende der Projektlaufzeit vor.

Der Vorrat basiert auf Ressourcen, die mit einem unteren Cut-Off-Gehalt von 0,3 % ausgewiesen wurden und als vermutliche Ressource klassifiziert ist (siehe Pressemitteilung vom 18. März 2015). Eine detaillierte Zusammenfassung der dahinterstehenden Daten und der Methodik finden Sie in Tabelle 3 (Tabelle 1 des JORC Code 2012).

Der Vorrat besteht vollständig aus Sulfiderz, das zwischen 25 m und 160 m unter der Oberfläche lagert. Eine Oxidationszone, die sich von der Oberfläche bis in Tiefen von 25 m bis 45 m erstreckt, wurde in die Schätzung nicht eingeschlossen, da im Rahmen der Flotationstestarbeiten (Sulfidierung) keine akzeptablen Ausbringungsraten erzielt wurden.

Folgend der gesamte Erzvorrat des Projekts Cloncurry:

86 Mio. Tonnen mit 0,50 % Kupfer, 0,07 g/t Gold für 427.000 Tonnen enthaltenes Kupfer und 205.000 Unzen enthaltenes Gold.

Eine vollständige Aufschlüsselung der Vorratsschätzung finden Sie in Tabelle 1. Die Erzvorratsschätzung ist in der Ressourcenschätzung Turkey Creek eingeschlossen (Tabellen 2 und 3).

Ein Neuentwurf der Infrastrukturanordnung für das Projekt wurde angefertigt, um eine Tagebaumine auf Turkey Creek (Abbildung 3) unterzubringen. Eine Nachbesserung für die Umweltbehörde wurde ebenfalls angefertigt, um die Änderungen im Betriebsplan zu berücksichtigen.

Die aktuelle Lebensdauer der Mine beträgt 11 Jahre und in Anbetracht der Bemessungskapazität der Aufbereitungsanlage von 7 Mio. Tonnen pro Jahr wird Turkey Creek die Lebensdauer der Mine um ungefähr zwei Jahre verlängern. Die zusätzlichen Jahre und der Aufschub der Aufbereitung von niedrig-haltigem Haldenmaterial werden die Projektrenditen gegen über jenen im Update der endgültigen Machbarkeitsstudie angegebenen verbessern.

Der Finanzabschluss der geplanten Joint-Venture-Transaktion mit SRIG wird für den 31. Oktober 2016 anvisiert. Eine Optimierung des Projekts ist nach Beginn des JV beabsichtigt, um Turkey Creek in den Minenplan aufzunehmen und die Kosten und andere Eingangsgrößen im 2012-DFS und seinem 2014-Update zu überarbeiten. Man erwartet eine wesentliche Verbesserung der Investitions- und Betriebskosten.

Für Fragen wenden Sie sich bitte an:

Alistair Cowden

Managing Director

Altona Mining Limited

Tel: +61 8 9485 2929

altona@altonamining.com

David Tasker

Professional Public Relations

Perth

Tel: +61 8 9388 0944

David.Tasker@ppr.com.au

Jochen Staiger

Swiss Resource Capital AG

Tel: +41 71 354 8501

js@resource-capital.ch

Über Altona

Altona Mining Limited ist ein an der ASX notiertes Unternehmen, das sich auf das Projekt Cloncurry in Queensland, Australien, konzentriert. Das Projekt beherbergt Mineralressourcen, die ungefähr 1,65 Mio. Tonnen Kupfer und 0,41 Mio. Unzen Gold enthalten. Die erste vorgesehene Entwicklung ist die Kupfer-Gold-Tagebaumine Little Eva und Aufbereitungsanlage mit einer Kapazität von 7 Mio. Tonnen pro Jahr. Altona hat eine Rahmenvereinbarung mit Sichuan Railway Investment Group zur vollständigen Finanzierung und Entwicklung von Little Eva geschlossen. Little Eva ist genehmigt mit einer geplanten Jahresproduktion1 von 38.800 t Kupfer und 17.200 Unzen Gold über mindestens 11 Jahre. Eine endgültige Machbarkeitsstudie wurde im März 2014 veröffentlicht.

1Bitte beziehen Sie sich auf die ASX-Pressemitteilung Cost Review Delivers Major Upgrade to Little Eva vom 13. März 2014, die die Information bezüglich dieses Produktionsziels und die prognostizierte Finanzinformation, die auf diesem Produktionsziel basiert, zusammenfasst. Das Unternehmen bestätigt, dass alle wesentlichen Annahmen, die das Produktionsziel unterstützen und die auf diesem Produktionsziel basierenden Finanzprognosen, die in der oben genannten Pressemitteilung erwähnt werden, weiterhin gültig sind und sich nicht wesentlich geändert haben.

Aussage der kompetenten Person

Die Informationen in dieser ASX-Pressemitteilung, die sich auf Explorationsziele, Explorationsergebnisse, Mineralressourcen oder Erzvorräte beziehen, basieren auf Informationen, die von Herrn Roland Bartsch, B Sc (Hons) MAusIMM, MAIG und Dr. Alistair Cowden BSc (Hons), PhD, MAusIMM, MAIG zusammengestellt wurden. Herr Bartsch und Dr. Cowden sind Vollzeit-Mitarbeiter des Unternehmens und verfügen über ausreichendes Wissen und Erfahrung über diesen hier vorliegenden Vererzungs- und Lagerstättentyp. Ihre Tätigkeiten qualifizieren sie als kompetente Personen gemäß den Regeln des 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Herr Bartsch und Dr. Cowden stimmen den hier eingefügten Informationen, die auf ihren Informationen basieren, in Form und Kontext je nach Erscheinen zu.

Kupfer-Äquivalent

Bei Anwendung bezieht sich der Kupfer-Äquivalent auf Kupfer im produzierten Konzentrat oder im Konzentrat einer geplanten Produktion. Es bezieht sich nicht auf den Metallgehalt der Insitu Ressourcen, Vorräte oder Bohrergebnisse. Der Kupfer-Äquivalentgehalt wird für den entsprechenden Vorrat unter Berücksichtigung des Kupfergehalts aus allen Metallen (NSR) d. h. Kupfer, Zink, Gold und Silber berechnet.

Die Ausgangssprache (in der Regel Englisch), in der der Originaltext veröffentlicht wird, ist die offizielle, autorisierte und rechtsgültige Version. Diese Übersetzung wird zur besseren Verständigung mitgeliefert. Die deutschsprachige Fassung kann gekürzt oder zusammengefasst sein. Es wird keine Verantwortung oder Haftung: für den Inhalt, für die Richtigkeit, der Angemessenheit oder der Genauigkeit dieser Übersetzung übernommen. Aus Sicht des Übersetzers stellt die Meldung keine Kauf- oder Verkaufsempfehlung dar! Bitte beachten Sie die englische Originalmeldung auf www.sedar.com, www.sec.gov, www.asx.com.au/ oder auf der Firmenwebsite!

Table 1: Turkey Creek Deposit Ore Reserve

The Turkey Creek deposit Ore Reserve is reported according to the JORC Code as follows:

Class Tonnes Copper Gold ContaineContaine

(million(%) (g/t) d d

) Copper Gold

(kt) (koz)

Ore Reserve

Proven - - - - -

Probable 11.3 0.46 0.00 52.1 0

Ore Reserve 11.3 0.46 0.00 52.1 0

Total

Mining Inventory3.6 0.47 0.00 17.0 0

Notes accompanying the Ore Reserve Statement:

1. Reserves are based upon a Long Term Copper Price of US$3.00 per pound and AUD:USD of 0.80.

2. The cut-off grade is 0.16% copper.

3. Resources have been reported as Inclusive of Reserves.

4. All data has been rounded to two significant figures. Discrepancies in summations may occur due to rounding.

5. The Turkey Creek Mineral Resources are classified as Indicated and Inferred. Pit designs and pit optimisations are based on both Indicated and Inferred Mineral Resource classes.

6. The overall pit comprises 3 stages of mining. Stage 1 and 2 pits are based on a pit shell optimised on Indicated Mineral Resources only. Indicated Mineral Resources within the first two stages have all been converted to Probable Ore Reserves. All Inferred Mineral Resources and Indicated Mineral Resources within third stage are reported as Mining Inventory.

Table 2: Little Eva Project Ore Reserve

The Little Eva Project Ore Reserve is reported according to the JORC Code as follows:

Reserve Classification Tonnes CopperGold CopperGold

(%) (g/t) (tonne(ounce

s) s)

Little Eva

Proved 31,200,0.64 0.08 198,2084,700

000 0

Probable 22,200,0.50 0.09 109,9062,600

000 0

Turkey Creek

Probable

11,300,0.46 0 52,1000

000

Ivy Ann

Probable 3,500,00.60 0.08 21,0009,000

00

Lady Clayre

Probable 1,000,00.58 0.27 5,800 8,700

00

Bedford

Probable 1,430,00.87 0.20 12,4009,200

00

Total Proved and 70,630,0.57 0.08 399,40174,20

Probable Reserves 000 0 0

(excl.

stockpiles)

Little Eva Low Grade

Stockpile

Probable 15,400,0.18 0.06 28,10030,900

000

Contained Metal Including CopperGold

Stockpile (tonne(ounce

s) s)

427,00205,00

0 0

For initial disclosure of Ore Reserves other than Turkey Creek please see Altona ASX release dated 14 May 2012, subsequently updated on 13 March 2014.

Table 3: Summary of Little Eva Project Resources and Reserves

Tonnes Copper Gold ContainedContained

(million(%) (g/t) Copper Gold

)

(t) (oz)

RESOURCES

Measured 37.1 0.60 0.09 222,000 112,000

Indicated 73.0 0.52 0.07 376,000 158,000

Inferred 40.1 0.52 0.11 208,000 138,000

Total 150.2 0.54 0.09 807,000 409,000

RESERVES

Proven 31.0 0.64 0.08 198,000 84.7

Probable 39.4 0.51 0.07 200,000 89.5

Sub Total 70.6 0.57 0.08 399,000 174.2

Probable 15.3 0.18 0.06 28,000 31,000

(stockpile)

Total 86.0 0.50 0.07 427,000 205,000

Mining 5.5 0.49 0.08 27,000 14,000

Inventory

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Figure 1: Project layout with new infrastructure

http://www.irw-press.at/prcom/images/messages/2016/36180/21062016_DE_AOH0766_First Reserve Estimate for Turkey Creek.002.png

http://www.irw-press.at/prcom/images/messages/2016/36180/21062016_DE_AOH0766_First Reserve Estimate for Turkey Creek.003.png

Figure 2: Turkey Creek open pit (brown) and resource outlines by JORC class and mineralisation type

http://www.irw-press.at/prcom/images/messages/2016/36180/21062016_DE_AOH0766_First Reserve Estimate for Turkey Creek.004.jpeg

Figure 3: Little Eva and Turkey Creek open pit mine and infrastructure layout

Table 3: Table 1 of the JORC Code, 2012 Edition

The table below is a description of the assessment and reporting criteria used in the Turkey Creek Mineral Resource and Reserve estimation that reflects those presented in Table 1 of The Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2012).

Section 1: Sampling Techniques and Data

Criteria Commentary

Sampling The drilling dataset incorporates 53 Reverse

technique Circulation (RC) holes for a total of 7,814

s m

etres drilling.

Samples were collected at 1m intervals to

obtain an average 3-4kg weight sample for

analysis.

Samples were collected directly using a rig

mounted cyclone and cone splitter into

pre-numbered calico bags; packed by Altona

staff in

bulka bags and shipped by truck for analysis.

All samples were analysed at ALS laboratories

in Townsville.

Drilling RC using 5.5 face sampling hammers.

techniqueHoles were drilled at a dip angle of ~-60o to

s intersect mineralisation at optimal true

width

angles.

Drill Recovery was visually estimated and recorded.

sample Recoveries are considered to be excellent

recovery averaging > 90%, and typically 100%. Lower

recoveries were recorded occasionally in the

hole collars (top few metres).

The majority of the samples were dry.

Individual samples were collected into the

cyclone prior to cone splitting. Cyclone and

sampling equipment was checked and cleaned

after each

rod.

Sample bias due to preferential loss/gain for

fine/coarse material is considered well

within acceptable limits.

Logging Logging was completed by Altona Mining

geologists at the rig using Altona standard

logging

procedures.

Representative RC sample chips have been

retained for all holes in chip

trays.

Logging is qualitative and quantitative

including, colour, lithology, mineralisation,

alteration, sulphide and oxide mineralogy,

sulphide and oxide amount, texture, grain

size and

structure.

Sub-sampliNo drill core.

ng The RC samples were split to 87.5%: 12.5%

technique ratio using a cyclone and

s and cone

sample.

preparatiSplitter to obtain a 3-4kg sample for

on analysis. The samples were sent to ALS

Laboratories in Townsville for sample

preparation and analysis. ALS is an

independent commercial certified laboratory

that uses industry standard sample

preparation including drying, crushing and

pulverisation.

Sample size >3kg is considered representative

for typical copper mineralisation at

Roseby area.

Quality All samples were analysed at ALS laboratories

of assay in

data and Townsville.

laborator

y Samples were analysed using an Aqua Regia diges

tests t using ICPAES and ICP-MS (method code:

ME-MS41) for 51 elements. This included

copper, with a detection

limit of 0.2 ppm. Data reported from Aqua Regia

digestion should be considered as

representing only the leachable portion of a

particular

analyte.

On return of Cu values >1% a second series of

analyses were undertaken. This involved an

ore grade Aqua

Regia digestion (method code: ASY-AR01)

followed by ICPAES analysis, optimised for

accuracy and precision at high concentrations

(method code:

ME-OG46).

Gold was analysed via a fire assay (30g) with

an AAS finish, with a lower detection limit

of 0.01 ppm and upper detection limit of 100

ppm.

Quality Control included: standards (certified

reference materials) from

Geostats Ltd. Standards were inserted into the

sampling sequence at 1:20 ratio and included

representative material for copper, gold and

blanks; and field duplicates taken using a

riffle splitter on site for every 20th

sample. Laboratory umpire checks were also

carried out on sample pulps. The standards

were inserted into each sample batch to test

the accuracy of the laboratory

analysis.

All duplicate and reference data display

acceptable accuracy and precision.

No samples were analysed by an umpire

laboratory.

No geophysical tools were used to determine

the results reported

here.

VerificatiResults were checked by several Altona

on of personnel.

sampling

and No twinned holes.

assaying All field logging data was done using laptop

and uploaded into the company

Datashed database and validated by company

database

personnel.

All assay files were received in digital

format from ALS Laboratories. Data was

uploaded into the Altona

Datashed database and validated by company

database personnel. No manual data inserts

took

place.

No adjustments have been applied to the

results.

Location Collar locations have been surveyed using

of data Altonas own DGPS with approximately 0.1

points metre horizontal accuracy. Elevation accuracy

is considered to be less than

0.5

metres and has been verified against detailed

ground survey previously completed in the

area.

Down hole surveys were completed at the end of

each hole within drill rods by Altona

personnel using a non-magnetic Gyro tool for

azimuth and

dip.

The Grid is GDA94 MGA Zone 54.

Data 100 metre (section spacing along strike) and

spacing 50m (down dip) with typically two or three

and holes per

distribut section.

ion

Consistent 1m sample intervals are maintained

through the mineralised

domains.

Unmineralised samples (determined in the field

using a

Niton handheld XRF device) were composited for

check analysis into 3m intervals by the

laboratory in accordance with standard Altona

procedures.

OrientatioMineralisation strike is approximately north -

n of south and swings to the east in the

data in northern part of the deposit. Drilling was

relation towards the west or north as deemed

to appropriate. Drilling was completed generally

geologica at -60 degree dip and with changing dip of

l the mineralisation true widths are estimated

structure to be 80% of the down

hole intercepts in the north, 90% in the

central area and 80% in the south.

No bias is considered to result from drilling

direction.

Sample Samples from RC drilling are collected and

security bagged into pre-numbered calico bags at the

drill site during the drilling operation.

Unique sample number was retained during the

whole

process.

Samples were collected and delivered to ALS as

they were collected.

Samples were stored in Altona facilities in

Cloncurry prior to the transport to

Townsville.

All samples were then catalogued and sealed

prior to dispatch to laboratory by Altona

staff.

Audits or QA/QC samples are routinely monitored by the

reviews database manager and geologist on a batch and

campaign basis. The accuracy of key elements

such Cu and Au, was acceptable and the field

duplicate assay data was unbiased and shows

an acceptable level of

precision.

No external audits or reviews have been

undertaken.

Section 2: Reporting of Exploration Results

Criteria Commentary

Mineral Turkey Creek is within Mining Lease 90125 and

tenement Green Hills within Mining Lease 90124. Both

and land MLs are 100% owned by Altona Mining Ltd.

tenure

status

No joint ventures apply.

There are agreements in place with the native

title holders, the

Kalkadoon people and with landholders.

No significant historic sites or national

parks are located within the reported

exploration

sites.

Both Mining Leases were granted in late 2012

and are in good

standing.

ExplorationCRA Exploration completed soil surveys, RC

done by drilling and mapping at Turkey Creek. Soil

other survey and mapping identified the

parties mineralisation but drilling failed to

intersect mineralisation due to the wrong

drilling

direction.

Xstrata Exploration drilled two RC holes at

the southern portion of Turkey Creek in 2011

intersecting copper

mineralisation.

Altona Mining followed with seven RC holes in

2012 extending the mineralisation some

400

metres to the north.

Altona Mining completed an additional 44 RC

holes during

2014.

Geology Mineralisation is considered to be

hydrothermal,

stratabound and structurally controlled

following internal competency, chemical and

permeability contrast typical to the

Roseby area metasediments.

Mineralisation occurs both as fine grained

pervasive dissemination and coarse grained

vein hosted. Mineralisation is

sulphidic under shallow, approximately 25

metre, oxidised cap. Copper sulphides

include chalcocite, chalcopyrite and

bornite. Majority of the oxide mineralisation

consists of

copper oxides (malachite) and silicates.

Drill hole Exploration results are not being reported

Informatio for the Mineral Resource area. Drill

n

hole information is provided in the Mineral

Resource estimation

section.

Data Exploration results are not being reported

aggregatio for the Mineral Resource

n area.

methods

RelationshiExploration results are not being reported

p between for the Mineral Resource

mineralisa area.

tion

widths Drilling azimuths are considered to be

and approximately perpendicular to the strike

intercept and dip of the mineralisation resulting

lengths unbiased true

widths.

Diagrams Refer to ASX release dated 18/3/2015,

Figures 1 to

6.

Balanced Exploration results are not being reported

reporting for the Mineral Resource

area.

Other Exploration results are not being reported

substantiv for the Mineral Resource

e area.

exploratio

n

data

Further Additional work in the future will consist of

work diamond core drilling for metallurgical

testwork sampling, infill and exploration

step-out RC drilling resource definition

purposes.

Section 3: Estimation and Reporting of Mineral Resources

Criteria Commentary

Database Data used for estimation is stored within a

integrity SQL Server database and is managed using

DataShed software. The structure of the

drilling and sampling data is based on the

Maxwell Data

Model.

Drill data is logged directly into digital

logging systems and uploaded to the database

by the database administrator (Altona

Standard procedures since

2006).

Laboratory data has been received in digital

format and uploaded directly to the

database. (Altona Standard procedures since

2002).

In both cases the data was validated on entry

to the database, by a variety of means,

including the enforcement of coding

standards, constraints and triggers. These

are features built into the data model that

ensure that the data meets essential

standards of validity and

consistency.

Original data sheets and files have been

retained and are used to validate the

contents of the database against the

original

logging.

Extensive validation of existing collar,

downhole survey and assay data was

completed. Validation steps

included:

· Drillhole collar locations were compared to

the topographic surface.

· Downhole deviations of all drillhole traces

were examined and problematic surveys were

excluded.

· The downhole survey datum was checked to

ensure grid transformations were correctly

applied.

· All data (e.g. assay, bulk density, RQDs,

core recovery) was checked for incorrect

values by deriving minimum and maximum

values.

· Lithology data was checked to ensure

standard rock type codes were used.

· Meta-data fields were checked to ensure

they were populated and that the data

recorded was

consistent.

Site visitsA number of site visits have been undertaken

by Mr

Bartsch

No site visit has been undertaken by Mrs

Standing the independent consultant for the

Mineral Resource

estimate.

Geological Confidence in the geological interpretation

interpreta of the deposit is moderate to high. The

tion spatial extent and geometry of separate

lithological components is well constrained

by geological surface mapping and detailed

logging of RC chips, supported by soil

geochemistry and geophysical interpretation,

including

magnetics.

The Turkey Creek deposit, while copper dominat

ed,

is interpreted as part of the broader

Iron-Oxide-Copper Gold (IOCG) style mineral

system common to the Cloncurry district.

The deposit extends over 1.8 kilometres in

length. Mineralisation occurs at surface, is

exposed in sub-crop, and is confirmed

through drilling in the main zone down dip

to ~140 m vertical depth below

surface.

-

Copper occurs predominantly as primary

sulphides in fresh rock and as secondary

oxide minerals (malachite) within a thin

surficial cap.

Mineralisation is interpreted to be strataboun

d

, hosted within a sequence of interbedded meta

sediments

(biotite-schists, biotite-scapolite metasedim

ents

and marble). The host rocks are altered to

carbonate and albite-hematite dominated

assemblages.

The drilled mineralised zone has a simple

tabular geometry that displays strong

continuity, with true widths varying from

approximately 10-30 m (southern end) to

30-50 m (northern end). The main portion of

the deposit is oriented north and dips 60°

to the east; at its northern end, the strike

of the mineralisation and host stratigraphy

is folded sharply east and dips steeply

south. The broader mineralised sheet

displays an upper and lower zone of stronger

copper

mineralisation.

Copper sulphide mineralisation is dominated

by

disseminated

chalcocite and bornite, with subordinate

chalcopyrite both disseminated and in

carbonate

veinlets.

Geological interpretation was completed on a

sectional basis; from which geological

surfaces were interpolated to create 3D

solids for mineralisation and

lithology.

There are no alternative detailed

interpretations of geology. The geology

interpretation has been refined and is

believed to be highly robust.

The main mineralisation domains were defined

using grade constraints in conjunction with

lithological contacts. A nominal cut-off

grade of 0.2% Cu was used to define

boundaries between mineralised and

weakly-mineralised or

unmineralised domains.

Two main geological domains (Southern zone

and Northern fold area) were defined. The

Southern zone was sub-divided into a central

low grade domain and two higher grade

domains (footwall and hanging wall).

Statistical and boundary analysis verified

the domain

definition.

All domains were subdivided using a base of

oxidation surface to separate oxide

mineralisation and primary sulphide

mineralisation.

Dimensions The main zone of mineralisation extends over

1.8 kilometres in length and dips to the

east -60

degrees.

Mineralisation occurs at surface, is exposed

in sub-crop, and has been intersected in

drilling to ~ 140 m depth beneath the main

Southern

zone.

-

The deposit remains open to the east and at

depth.

Estimation Drillhole sample data was flagged from three

and dimensional interpretations of the

modelling mineralised

techniques domains.

Sample data was composited to a 1 metre downho

le

length.

Data has a low coefficient of variation and

top-cut grades were not

applied.

Copper mineralisation continuity was

interpreted from

variogram analyses to have an along strike

range of 150

m

etres to 250 metres and an across strike

range of 20

m

etres to 55 metres.

Drillhole spacing ranges from 50 metres to

100

metres

along strike; on-section spacing ranges from

25

m

etres to 50 metres. Maximum extrapolation

distance is 35

m

etres along strike and up to 50 metres depth,

in line with intersections from deeper

drillholes.

Grade estimation was into parent blocks of 10

mE

by 50 mN on 10 metre benches within the

Southern zone and into 10

mE by 25 mN by 10 mRL parent blocks within

the Northern fold area.

Estimation was carried out using ordinary

kriging at the parent block scale.

Three estimation passes were used; within the

Southern zone the first search was based

upon the

variogram ranges in the three principal

directions; the second search was two times

the initial search and the third search was

six times the initial search, with reduced

sample numbers required for estimation.

Data from the Northern fold area was unfolded

and block grades estimated in unfolded

space. Three estimation passes were used;

first search was based upon the

variogram ranges in the three principal

directions; the second search was two times

the initial search and the third search was

ten times the initial search, with reduced

sample numbers required for estimation.

66% of the block grades were estimated in the

first

pass.

Post-processing of the data by local uniform

conditioning was applied to estimate block

grades at the selective mining (SMU) scale

of 5

mE by 6.25 mN by 2.5 mRL.

The estimated copper block model grades were

visually validated against the input

drillhole data, comparisons were carried out

against the

declustered drillhole data and by northing,

easting and elevation

slices.

Moisture Tonnes have been estimated on a dry basis.

Moisture content has not been tested.

Cut-off The Mineral Resource is reported above a 0.3%

parameters copper cut-off grade and within 150 m of the

surface, to reflect current commodity prices

and open pit mining

methods.

Mining Planned extraction is by open pit mining.

factors Mining factors such as dilution and ore loss

or have not been

assumption applied

s to the resource esitmate.

MetallurgicNo metallurgical assumptions have been built

al factors into the resource

or models.

assumption

s Preliminary metallurgical and mineralogical

testing on samples from the sulphide

mineralisation from the main zones support

recovery and indicate that economic

concentrate grades can be

achieved.

EnvironmentThe new Turkey Creek resource will be

al factors included as a component of the Little Eva

or Development Project

assumption

s coverd by a granted Environmental Management

Plan (EMP). Accordingly the EMP will need to

be updated to encapsulate its

development.

The EMP considers a broad range of

environmental considerations

including:

· Flora and fauna

· Soils

· Radiation

· Atmospheric emissions

· Hydrogeology

· Baseline and ongoing studies form part of

EMP

requirements

Analysis of simulated tailings fluids and

solids prepared through laboratory scale

test work indicates favourable environmental

results for the neighbouring Little Eva

deposit. Simulated sulphide and oxide

tailings were found to be benign in terms of

potential for formation of acidic, saline or

metalliferous drainage.

Testwork on Turkey Creek has not been carried

out.

By nature of similar setting to Little Eva,

in-part shared host rocks and low sulphide

content, no adverse environmental

considerations have been built into the

resource

model.

Bulk In-situ bulk density values have been

density confirmed

based on physical measurements conducted on dr

ill

core samples. The average measured densities

are:

su

lphide mineralisation 2.73 t/m3; oxide

mineralisation

2.5

9 t/m3.

In-situ bulk densities applied to the

resource estimate are: oxide mineralised

metasediments 2.5 t/m3; and, mineralised metas

ediments

2.7 t/m3

ClassificatClassification for the Turkey Creek Mineral

ion Resource is based upon the continuity of

geology, mineralisation and grade, using

drillhole data spacing and quality, variograph

y

and estimation statistics (number of samples

used, estimation pass,

kriging efficiency and slope of regression).

Mineral Resources have been classified on the

basis of confidence in geological and grade

continuity using the drilling density,

geological model, modelled grade continuity

and conditional bias measures (slope of the

regression and kriging efficiency) as

criteria.

· Measured Mineral Resources - none defined

· Indicated Mineral Resources - have been

defined in areas where drill spacing is 100

metres by 50 metres or less, within a down

dip extent of up to 25

metres below the drilling and where grade

variance is

moderate

· Inferred Mineral Resources have been

defined in areas where extension of

mineralisation is supported down dip and

within the eastern extent of the

Nothern fold area.

The classification considers all available

data and quality of the estimate and

reflects the Competent Persons view of the

deposit.

Audits or The resource estimate has been internally

reviews reviewed by Altona

staff.

The geological interpretation, estimation

parameters and validation of the resource

models were peer reviewed by

Optiro staff.

Discussion The assigned classification of Indicated and

or Inferred reflects the Competent Persons

relative assessment of the accuracy and confidence

accuracy levels in the Mineral Resource

/ confiden estimate.

ce

The confidence levels reflect production

volumes on an annual

basis.

Section 4: Estimation and Reporting of Ore Reserves

(Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section)

Criteria Commentary

Mineral The geological model used to estimate the Min

Resource eral Resource for Turkey Creek was developed

estimate by Altona Mining Ltd, and the block

for model/resource estimate was created and

conversion reported in March 2015 by

to Ore

Reserves Optiro.

The stated Mineral Resource is inclusive of

the Ore

Reserve.

Site visits The competent persons are regular visitors

to

site.

Study statusA Definitive Feasibility Study (DFS) was

carried out in 2011/12 for the Little Eva

Project and a cost update was completed in

2014. Input parameters for

integrating Turkey Creek into the project

were based (and adjusted as required to

reflect current conditions) on the DFS.

Mine layouts were adjusted to accommodate

the addition of Turkey Creek.

The work to incorporate Turkey Creek into

the Little Eva project has been compiled as

an addendum to the Little Eva

DFS.

All material modifying factors have been

considered.

Cut-off Minimum cut-off grades for Turkey Creek were

parameters calculated at 0.16% Cu. This is based on

the ability to mine the resource on an

economic basis. The copper price used was

based on information on consensus pricing

provided by Altona.

Cut-off grade varies over the mine valuation

period.

Mining Integration of the Turkey Creek deposit into

factors or the Little Eva Project, which envisages a 7

assumptions million tonnes per annum processing

facility (SAG/Ball and flotation circuit)

to produce a

concentrate.

Several optimisations were carried out based

on input parameters from the original DFS

and the 2014 update. Pit optimisations

were undertaken by independent resource

consultancy

Optiro Pty Ltd. and by independent resource

consultancy

Orelogy. Orelogy developed pit designs and

mine schedules.

The Ore Reserves are reported within pit

designs. Designs which are based on bulk

mining using conventional load and haul

practices, with drill and blast where

required.

The pit design was based upon pit shell

optimisations of all resource categories

(Measured, Indicated and Inferred).

Optimisations excluding Inferred resources

capture all Measured and Indicated

resources.

There are however no Measured Resources.

The overall pit slopes used for the pit

optimisation were those used for the Little

Eva pit design of 40° in the oxide zone and

43°in fresh rock No geotechnical assessment

has been conducted however geotechnical

logging indicate conditions equal to or

better than those seen at Little

Eva.

Summary of pit optimisation input

parameters:

· Direct mining costs inclusive of Load &

Haul, Drill & Blast of A$2.77/t at the

surface plus a vertical incremental cost

per 10m bench of +

A$0.072/t.

· Ore haulage cost from the Turkey Creek pit

to the Little Eva plant of

A$ 1.00/t.

· Mining recovery 96%.

· Dilution 6%.

· Processing costs are AU$10.26/t which is

inclusive

of:

- General and Administration

- Sustaining Capital

- Grade Control

- Ore haulage cost.

· Processing recovery for copper 96%.

· 25% copper in concentrate with a moisture

content of

9%

.

· Concentrate transport and shipping A$48.75

/t

.

· Concentrate treatment charge of A$93.75/t

concentrate

.

· Refining costs of A$206.68/t copper metal.

· Copper price of A$8,267/t.

· Copper payability of 96%.

MetallurgicaOre will be processed through the proposed

l factors Little Eva Project process plant at a rate

or of 7 million tonnes per annum flotation

assumptions circuit to produce a concentrate; the plant

utilises industry standard and simple

proven

technology.

The metallurgical recoveries to copper

concentrate

used for pit optimisation are based on detail

ed optimised

testwork on the neighbouring Little Eva

deposit

. Testwork carried out to date on Turkey

Creek ore indicates that at a finer grind

size the Turkey Creek ore should perform

similarly to the Little Eva ore with

respect to copper recovery.

Metallurgical testwork followed flowsheets ba

sed on previous studies and results from the

Little Eva Project and reflecting the

established DFS project process

design.

Two programmes of testwork have been

conducted.

The first testwork programme was completed

using composite samples from RC resource

drill

hole samples. GR Engineering Services

managed the

programme.The second programme used diamond d

rill

core holes targeting representative geometall

urgical

domains within the optimised pit shell.. Alt

ona managed this

programme.

Both testwork programs were conducted by

ALS

AMMTEC.

The testwork programmes showed that the

copper sulphides could be recovered into

rougher

concentrates

at around 93% copper recovery. Optimum

response (range 91 to 95% copper recovery)

was at a grind size P80 of 106

m and 75 m.

More detailed work was performed in the

second programme.

At the optimum rougher stage grind sizes of

P80 of

106 m to 75 m concentrate grades of 8.5 - 1

2.1 %

copper approximated those achieved on the

Little Eva Ore

of 8.7 - 14.7 % copper at a grind size P80

of

212

m.

A finer grind gave a higher concentrate grade

which was supported by mineralogical

analysis

which

showed copper mineral (chalcocite, bornite,

cha

lcopyrite) grain sizes predominantly in the

200 to 30

m range. A single unoptimised cleaner test

was conducted on a rougher concentrate

sample at a 106

m with regrind at a P80 of 35 m. A high

grade concentrate of 32.6%

copper was achieved. The results indicate tha

t the Little Eva flowsheet of a coarse grind

followed by regrinding of a rougher

concentrate is a viable option for the

Turkey Creek

ore.

Characterisation of the breakage behaviour

of mineralisation types from Turkey Creek

was undertaken on diamond

drillcore. Sulphide ore is softer than

Little Eva ore. Bond work indices

(

BRMWi 19.9 and BMWi 14.9) for sulphide ore

from Turkey creek are lower than the

average determined for Little Eva ore (20.4

and 18.0 respectively) within the lower end

of the range of variability displayed by

Little Eva

ore.

EnvironmentaEnvironmental impact studies have been

l completed and an Environmental Authority

(EA) was granted permitting the grant of

Mining Leases. Amendments to the EA are

required to incorporate Turkey Creek into

the Project.

An EA amendment application has been prepare

d and lodged by MBS Environmental. All

necessary studies and designs have been

completed for a revised mine layout to

include Turkey Creek

to support the amendment. A decision by the Q

ueensland Department of Environment and

Heritage

Protection

on the amendment application is pending

with no objections from affected parties

having been

received.

InfrastructuDetails of the proposed project are

re described more fully in ASX release of 13

March

2014.

The project is located in an established

mining district with close access to

required infrastructure. It is

approximately 65km by road to

Cloncurry.

Concentrate trucked 65km to Cloncurry in

half containers on existing sealed roads

within 10 km of the plant; containerised

rail to Townsville

port.

Power supply is to be provided via a

proposed 9km line from the Dugald River

mine substation. The 220KV power line to

bring power from Cloncurry to Dugald River

substation is a part of the MMG Dugald

River Project which was approved for

development in

mid-2015.

Ground water will be sourced primarily from

pit dewatering bores at active pits

supplemented by permitted dewatering of the

Blackard resource. Blackard is not currently

included in the mine plan. Back up water

can be

purchased from the Lake Julius - Ernest

Henry water pipeline which is 2.5 km from

the

plant.

A fly-in fly-out work force is to be

complemented by local drive in-drive out

employees from Cloncurry and Mt Isa.

Accommodation will be on site in a 220 man

village or in

Cloncurry.

DFS mine site infrastructure layouts and

designs have been revised by Knight

Piesold (tailings storage facility, drainage

diversions) and

Orelogy (waste dumps) to incorporate mining

of Turkey Creek.

Costs Appropriate estimating and costing

techniques and studies were used throughout

this study. Costs were apportioned

appropriately to either capital or

operating cost categories. The mining costs

are those provided by reputable mining

contractors based on a mining schedule

developed prior to the upgrade in resource

model. The processing, engineering and

other costs are obtained from: a)

quantities determined from material take

off; b) direct costs and schedules of

rates; c) spare and first fill

requirements. All other costs being

generated from various studies associated

with current activities.

Altona.

Revenue The long term copper price used is

factors US$6,614/t. Allowances are made for

transport charges and royalty charges where

appropriate. Any forward product cost

projections, exchange

rates

is based on assessment of the relevant

market

analys

t information.

Market There are currently no offtake agreements in

assessment place and these will be secured closer to a

final investment decision. It should also

be noted that Altona have experience in

this market, as they successfully secured

offtake agreements for a previous Altona

mining

operation.

Economic Inputs for the economic analysis are as

listed under Mining factors or

Assumptions.

Social All access, heritage and compensation

agreements required with key stakeholders

are in

place.

Other Natural risks, such as flooding, have been

considered in the design and work

undertaken to

mitigate against any ill effects from up to

a 1 in 100 year

event.

It is considered that the current planning

and layout can be developed into a viable

operation. However, there are several

opportunities which can be

explored prior to implementation which, if

completed, will improve the outcome.

All other legal social and government

factors have been reviewed and do not show

any signs of hindering the viability of the

project.

All titles have been checked against the Gove

rnment of Queenslands data base and appear

in order.

The primary permits required are either

already in place. It is not expected that

any outstanding permits or required

amendments will be an issue as no negative

receptors have been

identified.

ClassificatiOnly fresh (sulphide) ore has been converted

on to Ore

Reserves.

The Turkey Creek Mineral Resources are

classified as Indicated and Inferred. Pit

designs and pit optimisations are based on

both Indicated and Inferred Mineral

Resource

classes.

The overall pit comprises 3 stages of

mining. Stage 1 and 2 pits are based on a

pit shell optimised on Indicated Mineral

Resources only. Indicated Mineral Resources

within the first two stages have all been

converted to Probable Ore Reserves. All

Inferred Mineral Resources and Indicated

Mineral Resources

within

the third stage are reported as Mining

Inventory.

Audits or No previous Ore Reserves have been declared

reviews for Turkey Creek.

Internal peer reviews were undertaken.

Consideration of current market conditions (l

ower operating costs and lower metal

prices

) have been assessed has having an overall

positive or neutral

impact.

Preliminary pit optimisations conducted by Op

tiro

are consistent with the outcomes of more

expansive work by

Orelogy.

Discussion The assigned classification of Probable

of Reserve reflects the Competent Persons

relative assessment of the accuracy and confidence

accuracy levels in the estimate.

/

confidence

The confidence levels reflect production

volumes on a Life of Mine and annual

basis.

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