Z A M B E Z I R E S O U R C E S

Transcription

1 Z A M B E Z I R E S O U R C E S ANNUAL 2012 REPORT 2012 For personal use only

2 Contents Contents... 2 Corporate Directory... 3 Chairman s Review... 4 Operations Review... 6 Directors Report Independent Auditor s Report To Members of Zambezi Resources Ltd Consolidated Income Statement For the Year Ended 31 March Consolidated Statement of Comprehensive Income For the Year Ended 31 March Consolidated Statement of Financial Position As At 31 March Consolidated Statement of Changes in Equity For the Year Ended 31 March Consolidated Cash Flow Statement For the Year Ended 31 March Notes to the Annual Financial Statements For the Year Ended 31 March Directors Declaration For the Year Ended 31 March Supplementary Information

3 Corporate Directory Directors David Vilensky Non-Executive Chairman Richard Procter Non-Executive Director Simon Durack Non-Executive Director Emmanuel Heyndrickx Non-Executive Director Secretary Allison Forte Registered Office Canon's Court 22 Victoria Street Hamilton HM 12 BERMUDA Auditors Deloitte Touche Tomatsu Woodside Plaza Level St Georges Terrace PERTH WA 6000 Australia Australian Solicitors Freehills QV1 Building, 250 St Georges Terrace PERTH WA 6000 Australia Zambian Solicitors Corpus Legal Practitioners The Globe Building 2386 Longolongo Road Lusaka ZAMBIA Bermuda Counsel Appleby Canon s Court 22 Victoria Street Hamilton HM 12 BERMUDA Registrars Computershare Investor Services Pty Ltd Level 2, 45 St Georges Terrace PERTH WA 6000 Telephone: (08) Facsimile: (08) Zambezi Resources Offices Zambezi Resources Ltd Canon's Court 22 Victoria Street Hamilton HM 12 BERMUDA Mwembeshi Resources Ltd Plot No Beu Crescent Kalundu Lusaka Zambezi Resources (Aust )Pty Ltd 17 Ord Street WEST PERTH WA 6005 Tel: Fax: Website 3

4 Chairman s Review Dear Shareholders, The past year has been another that has been both challenging and rewarding for Zambezi Resources Limited ( Company or ZRL ). As reported in the last Annual Report of the Company, the most significant milestone in the history of the Company was achieved with the issue of the Large Scale Mining Licence over its Kangaluwi Copper Project ( Project ) over the proposed mining area at the Project located about 178 kilometres east of Lusaka. The Large Scale Mining Licence was issued to the Company s 100% wholly owned subsidiary Mwembeshi Resources Limited in January The focus of the Company during the year has been to examine the scope of all aspects of the Project including finalising the important environmental and social aspects as well as the resource conversion drilling that will determine the scale of the Project. The Company has made significant further progress following its latest diamond drilling programme in achieving its objectives. AMC Consultants Pty Ltd is currently in the process of completing a copper only mineral resource estimate for the Project following a thorough review of data quality and reconfirmation of drilled survey data and the Company expects an increase in its mineral resource tonnages in relation to the Project. In relation to capital raising activities, on 25 July 2011 the Company announced that it had entered into a AUD$10 million, two tranches (AUD$5 million each) convertible note facility with the LinQ Resources Fund. The first tranche of AUD$5 million has been drawn down. As part of the convertible note facility, the Company committed to raise a further AUD$4 million under a rights issue offering by 31 December AUD$1,976,000 was raised under this issue and the placement of shortfall shares closed oversubscribed raising a further AUD$2,219,000. The funds raised by the Company have and will continue to be applied towards working capital and continued exploration and development costs associated predominately with the Project. I am confident that the Company is well positioned with adequate funding to achieve its resource estimate outcomes and would like to thank and congratulate our management team and staff, both in Australia and Zambia, on the progress achieved to date. I would also like to thank all our consultants and my fellow directors for their loyalty, support and commitment during this period. 4

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6 Operations Review OPERATIONS Following its 2011 diamond drilling program, the Company has made substantial progress in defining the 100% owned Kangaluwi Copper Project ( the Project ) as a significant copper deposit. Assays support the project s mineralisation continuity and tenor, whilst confirming both down dip and strike extensions. Significantly, the deposit remains open in several directions. Noteworthy intersections include: Chisawa Prospect Kalulu Prospect Kangaluwi Prospect 1.27% TCu from 159m 1.25% TCu from 131m 1.34% TCu from 117m 1.12% TCu from 17m 1.08% TCu from 117m 1.02% TCu from 112m 1.26% TCu from 41m 1.13% TCu from 78m 1.20% TCu from 194m 1.28% TCu from 113m 1.01% TCu from 361m 1.13% TCu from 189m 1.54% TCu from 337m 1.17% TCu from 335m 1.00% TCu from 319m Following a drill database audit and reconfirmation of drill collar survey data, AMC Consultants Pty Ltd has commenced a Mineral Resource estimate for primary copper at the Project, from which the Company anticipates an increase in mineral resource tonnages. In 2012, the Company will undertake preparatory metallurgical, hydrogeology and geotechnical studies, in support of future feasibility work. At the same time, it will continue its core resampling and multi-element analytical programs, with infill drilling programs scheduled to commence in July PROJECTS The Kangaluwi Copper Project Project Background The Kangaluwi, Chisawa and Kalulu prospects comprise three high quality copper deposits within the 100% owned Project. The Project is covered by a 245 km 2 Mining Licence area, 180 km east of Lusaka, Zambia. Numerous geophysical targets in the Project area are yet to be evaluated, with only one quarter of the 28 km strike length drill tested to date. Current Mineral Resource estimates for the Project comprise 23.4 Mt grading 0.85% Cu for ~200 kt contained copper from the Kangaluwi and Chisawa deposits only. Additional resource definition is anticipated from the Kalulu deposit. 6

7 FIGURE 1: LOCATION MAP OF ZAMBIA TABLE 1: GLOBAL INDICATED AND INFERRED MINERAL RESOURCE ESTIMATE - KANGALUWI COPPER PROJECT Prospect Kangaluwi Chisawa Measured Indicated Inferred Totals Tonnes (t) - - Grade (% Cu) - - Tonnes (t) 8,907,000 - Grade (% Cu) Tonnes (t) - 14,535,983 Grade (% Cu) Tonnes (t) 8,907,000 14,535,983 Grade (% Cu) Totals - - 8,907, ,535, ,442, The current 22,000 metre drilling program will form the basis of a revised Mineral Resource estimate for copper, and a future Bankable Feasibility Study ( BFS ). 7

8 FIGURE 2: MINING LICENCE Diamond drilling undertaken in 2011, totalled 22,183 m from 94 holes (TABLE 2). All primary copper assay results have been reported from 6,653 samples. Multi-element analysis from the 2011 resampling program (~16,000 m) is in progress. To date, 12,978 samples have been submitted to ALS Laboratories, South Africa. TABLE 2: 2011 DRILLING PROGRAM Kangaluwi Project DD DD Holes Metres Kangaluwi 10 4,020 Kalulu 44 9,530 Chisawa 40 8,631 TOTAL 94 22,181 8

9 Kalulu Prospect Mineralisation at Kalulu is currently interpreted over a strike length >1.2 km, within a complex northeast-southwest trending shear zone. Previous exploration drilling along strike of a dominant geochemical anomaly has been selectively in-filled between and along section lines, resulting in drill coverage sufficient to begin the Resource Classification process (FIGURE 3). FIGURE 3: KALULU 2011 DRILLED HOLES Assay results are reported from 44 diamond holes. These holes were drilled along sections 9800E to 11000E, with all significant intersections tabulated herewith. (Appendix 1). Assay results to date reveal that mineralisation is still open down dip and across strike, requiring further development drilling to evaluate the resource potential to the east and at depth. 9

10 Chisawa Prospect Previous exploration drilling along strike of the principal geochemical anomaly has been selectively in-filled between and along RC and DD drill sections to a 100 m x 100 m grid. In 2011, 40 diamond holes have been drilled for 8,632 m over a 3 km mineralised corridor. Updated assay results have confirmed the mineralised system is still open along strike and down dip. Further resource development drilling will be required at depth and along strike to evaluate its full potential. FIGURE 4: CHISAWA DRILLED HOLES Assay results received are reported from 40 diamond holes. These were drilled along sections 11200E to 12600E, with significant intersections. (Appendix 2). 10

11 Kangaluwi Prospect A total 10 diamond holes were drilled for 4,021 m. These were drilled on selected sections along strike, to test the mineralisation at depth and down dip of the defined resource. Mineralisation is currently interpreted over a strike length >4.1 km and lies within a series of complex regional structures, incorporating a number of sub parallel-mineralised zones. Results received to date confirm mineralisation is still open down dip and along strike. Additional development drilling will be required at depth to evaluate the full potential of down dip, across strike and plunge mineralisation continuity. FIGURE 5: KANGALUWI DRILLED HOLES Assay results received to date are reported from 10 DD holes. These holes were drilled along sections E to E, with significant intersections. (Appendix 3). 11

12 CORPORATE Convertible Note Facility On 25 July 2011, Zambezi announced that it had accepted an offer from LinQ Capital Limited as responsible entity of the LinQ Resources Fund ( LRF ) for the provision of a secured AUD$10 million convertible note facility ( Facility ). The funds raised by the Facility will be applied by Zambezi towards working capital and exploration and development costs associated predominantly with its Kangaluwi Copper Project. The funding package provides the Company with valuable funding for the following: Additional step out and infill drilling for resource expansion and definition at Chisawa, Kangaluwi and Kalulu deposits (Kangaluwi Copper Project); Deeper drilling of the structures for stratigraphic control as well as to determine the down dip extent of the mineralisation; Testing additional oxide potential above the mineralised sulphide material with a shallow drilling program; and Finalising the feasibility study for the development of the Kangaluwi Copper Project Zambezi anticipates that the funding will be sufficient to finalise the above activities over the ensuing months. Rights Issue The Company announced on the 25 th November 2011 a Non-Renounceable Rights Issue to raise up to AUD$4.2 million. Under the Company s AUD$10 million convertible note facility with LinQ Capital Limited as responsible entity for the LinQ Resources Fund, announced on 25 July 2011, Zambezi committed to raise at least AUD$4 million under a Rights Issue offering by 31 December The Company previously released offer documentation for a Rights Issue on 8 August 2011, but then withdrew the offer on 17 August 2011 as a result of equity market volatility and instability at the time. The Company announced on the 4 th January 2012 that it had completed the non-renounceable rights issue on the basis of one fully paid ordinary share for every three fully paid ordinary shares as announced on 25 November The Company has successfully raised total gross proceeds of AUD$4,195 million being AUD$1,976 million under the Rights Issue and AUD$2,219 million under the Shortfall Placement. 12

13 Sunbird Resources Limited Zambezi Resources Limited has entered into a Share Purchase Agreement with Sunbird Resources Limited ( Sunbird ) to divest its uranium interests in Zambia in order to focus on its Kangaluwi Copper Project. The consideration for the disposal is AUD$500,000 payable in scrip in Sunbird by 2.5 million ordinary shares at an issue price of 20 per share conditional upon various terms and conditions including listing. Zambezi shareholders shall receive a priority offer under their Prospectus. Mpande Limestone Limited Zambezi Resources Limited has executed an agreement with Limestone Ventures Pty Ltd (LV), a wholly owned subsidiary of LinQ Resources Fund, to enter into a Farm-in and Joint Venture Agreement in relation to the Mpande Limestone Limited tenements. Mpande Limestone Ltd ( Mpande ), a company registered in Zambia, holds two large scale prospecting licences for industrial limestone through Licence Mpande A HQ-LPL and Mpande B HQ-LPL ( Tenements ). Mpande is a wholly owned subsidiary of Mwembeshi Resources Ltd ( Mwembeshi ) a company registered in Zambia which in turn is a wholly owned subsidiary of ZRL. The terms of the agreement are that LinQ, subject to due diligence, will spend AUD$400,000 on exploration and other works on the tenements to assist in funding the conversion of the tenements to Mining Licences, for a participating interest in the Joint Venture of 50%. Cheowa Resources Limited The Company has a 49% interest in Cheowa Resources Limited ( Cheowa ), a joint venture company with Glencore International AG ( Glencore ) which owns 51% (after spending AUD$16 million on the tenements). Cheowa Resources limited has three prospects being, Cheowa (6 1% Cu), Chayinda ( % Cu) and Chalimbana ( % Cu). 13

14 Competent Persons Statement The information in this announcement that relates to Exploration Results and Mineral Resources is based on information compiled by Ms Chiedza Nematadzira and Borniface Nquni, of Caracle Creek Consulting Zambia. Both are members of the Australian Institute of Geoscientists and have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and who consent to the inclusion in this report of the matters based on the information in the form and context in which it appears. The information in this announcement that relates to Exploration Results is based on information compiled by Robert McPherson, Country Manager, Geology Zambia. Robert McPherson is employed as a Geologist for Zambezi Resources and is also a member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Robert McPherson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 14

15 Appendices Appendix 1 Kalulu Prospect DD Drilling Assay Results Hole_ID Northing Easting RL EOH Depth Inclin. Azimuth mfrom mto mwidth Cu% Intercept Includes ( Above 0.7% TCu) KLUDD % TCu 1.51% TCu from 75.50m KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu 0.78% TCu from m KLUDD % TCu 1.24 % TCu from 86.60m KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu 0.91% TCu from 87.00m KLUDD % TCu KLUDD % TCu KLUDD %TCu KLUDD % TCu 0.98% TCu KLUDD %TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu 0.76% TCu from 44.00m KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu 0.96% TCu from m KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu 0.74% TCu from 25.00m 0.76% TCu from 28.00m KLUDD % TCu KLUDD % TCu 1.25 % TCu from 95.00m KLUDD % TCu 1.04% TCu from m KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu 0.86% TCu from 14.37m KLUDD % TCu 0.73 % TCu from m KLUDD % TCu 0.86% TCu from m KLUDD % TCu KLUDD % TCu 1.00% TCu from m 15

16 Hole_ID Northing Easting RL EOH Depth Inclin. Azimuth mfrom mto mwidth Cu% Intercept Includes ( Above 0.7% TCu) KLUDD % TCu 0.74% TCu from 56.00m KLUDD % TCu 0.72% TCu from 82.00m KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu 0.91% TCu from m KLUDD % TCu 0.70% TCu from 80.00m KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu 0.70 % TCu from 82.00m 0.71% TCu from 91.00m KLUDD % TCu 0.76% TCu from 67.00m KLUDD % TCu KLUDD % TCu 0.89% TCu from 16.00m KLUDD % TCu KLUDD % TCu KLUDD % TCu 0.73% TCu from 81.00m KLUDD % TCu KLUDD % TCu KLUDD % TCu 0.75% TCu from 48.00m KLUDD % TCu 0.75% TCu from 92.00m KLUDD % TCu KLUDD % TCu KLUDD % TCu 0.70% TCu from 67.00m KLUDD % TCu 0.82% TCu from m KLUDD % TCu 0.74% TCu from 68.00m KLUDD % TCu.. KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu 1.26% TCu from 40.75m KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu 0.73% TCu from m KLUDD % TCu 0.73% TCu from m KLUDD % TCu KLUDD % TCu 0.82% TCu from m KLUDD % TCu KLUDD % TCu KLUDD % TCu 0.71% TCu from m KLUDD % TCu KLUDD % TCu 0.78% TCu from 47.00m KLUDD % TCu 0.72% TCu from 86.00m KLUDD % TCu KLUDD % TCu 0.88% TCu from m 0.70% TCu from m KLUDD % TCu 0.84% TCu from m KLUDD % TCu 16

17 . Hole_ID Northing Easting RL EOH Depth Inclin. Azimuth mfrom mto mwidth Cu% Intercept Includes ( Above 0.7% TCu) KLUDD % TCu KLUDD % TCu 0.72% TCu from 42.00m KLUDD % TCu 0.73% TCu from 87.00m KLUDD % TCu 0.91% TCu from m KLUDD % TCu 0.72% TCu from m KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu 0.94% TCu from 57.28m 1.03% TCu from 63.00m 0.72% TCu from m 0.73% TCu from m 0.87% TCu from m 0.74% from m 0.70% TCu from m KLUDD % TCu KLUDD % TCu 0.83% TCu from m KLUDD % TCu KLUDD % TCu KLUDD % TCu 1.46% TCu from 59.00m KLUDD % TCu KLUDD % TCu 0.71% TCu from 87.00m KLUDD % TCu 1.04% TCu from m KLUDD % TCu 1.03% TCu from m KLUDD % TCu 0.72% TCu from 55.00m KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu 0.86% TCu from m KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu 0.70% TCu from m KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu 0.70% TCu from m KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu 0.83% TCu from 91.00m KLUDD % TCu KLUDD % TCu KLUDD % TCu 0.78% TCu from m KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu 0.85% TCu from 80.00m KLUDD % TCu 17

18 Hole_ID Northing Easting RL EOH Depth Inclin. Azimuth mfrom mto mwidth Cu% Intercept Includes ( Above 0.7% TCu) KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu 1.93% TCu from m 1.03% TCu from m 0.77% TCu from m 0.84% TCu from m 1.06% TCu from m 0.98% TCu from m KLUDD % TCu 1.04% TCu from m KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu 1.02% TCu from m 3.53% TCu from m 0.75% TCu from m 0.75% TCu from m KLUDD % TCu KLUDD % TCu 1.16% TCu from 62.00m KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu KLUDD % TCu Note: Intercepts 0.10% TCu with 2m maximum internal dilution off down-hole width. 18

19 Appendix 2 Chisawa Prospect DD Drilling Assay Results Hole ID Easting Northing RL EOH Depth Inclin. Azimuth mfrom mto mwidth Cu% Intercept Includes (above 0.7% Cu) CHSDD % TCu 1.14% TCu from m CHSDD % TCu 1.02% TCu from 99.00m CHSDD % TCu CHSDD % TCu 1.05% TCu from m CHSDD % TCu 0.82% TCu from m CHSDD % TCu 0.87% TCu from m CHSDD % TCu 1.27% TCu from m CHSDD % TCu 0.89% TCu from m 1.13% TCu from m CHSDD % TCu 1.41% TCu from m CHSDD % TCu CHSDD % TCu 1.10% TCu from m CHSDD % TCu CHSDD % TCu 1.31% TCu from m CHSDD % TCu CHSDD % TCu CHSDD % TCu 1.09% TCu from m CHSDD % TCu 1.03% TCu from m CHSDD % TCu CHSDD % TCu 0.70% TCu from m CHSDD % TCu CHSDD % TCu CHSDD % TCu 1.10% TCu from m CHSDD % TCu CHSDD % TCu 1.84% TCu from 82.00m CHSDD % TCu CHSDD % TCu 0.77% TCu from 40.00m CHSDD % TCu 0.80% TCu from m CHSDD % TCu 1.58% TCu from 87.00m CHSDD % TCu CHSDD % TCu CHSDD % TCu 0.98% TCu from m CHSDD % TCu CHSDD % TCu 1.40% TCu from m CHSDD % TCu 0.73% TCu from m CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu 0.78% TCu from m CHSDD % TCu CHSDD % TCu CHSDD % TCu 1.04% TCu from m CHSDD % TCu 0.97% TCu from m CHSDD % TCu 1.75% TCu from 51.40m CHSDD % TCu 1.34% TCu from 58.00m CHSDD % TCu CHSDD % TCu CHSDD % TCu 1.08% TCu from m CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu 0.85% TCu from 16.50m 0.82% TCu from 22.00m 0.95% TCu from 30.00m CHSDD % TCu 1.08% TCu from 53.00m CHSDD % TCu CHSDD % TCu 1.12% TCu from 17.00m CHSDD % TCu 0.73% TCu from 80.00m % TCu from 86.00m 19

20 Hole ID Easting Northing RL EOH Depth Inclin. Azimuth mfrom mto mwidth Cu% Intercept Includes (above 0.7% Cu) CHSDD % TCu 0.83% TCu from m CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu 0.90% TCu from m CHSDD % TCu 0.79% TCu from 46.00m CHSDD % TCu CHSDD % TCu 0.94% TCu from 99.42m CHSDD % TCu CHSDD % TCu CHSDD % TCu 1.22% TCu from 74.00m CHSDD % TCu CHSDD % TCu CHSDD % TCu 1.31% TCu from 50m CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu 1.37% TCu from m CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu 1.05% TCu from m CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu 0.76% TCu from m CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu 1.36% TCu from m CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu 1.96% TCu from m CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu 1.27% TCu from m CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu CHSDD % TCu 0.73% TCu from m Note: Intercepts 0.10% TCu with 2m maximum internal dilution off down-hole width. 20

21 APPENDIX 3 Kangaluwi Prospect DD Drilling Assay Results Hole_ID Northing Easting RL EOH Depth Inclin. Azimuth mfrom mto mwidth Cu% Intercepts above 0.1% TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu Intercepts calculated above 0.5% TCu 1.11% TCu from m 0.70% TCu from m 0.77% TCu from m KNGDD % TCu 1.03% TCu from m KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu 0.88% TCu from m, including 1.13% TCu from m 0.83 % TCu from m, including 0.98% TCu from m 0.99 % TCu from m, including 1.38% TCu KNGDD % TCu 0.72% TCu from m KNGDD % TCu 1.03% TCu from m KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu 1.37% TCu from m KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu 1.13% TCu from m KNGDD % TCu KNGDD % TCu 1.65% TCu from m KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu 1.43% TCu from m KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu 1.54% TCu from m KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu 1.57% TCu from m KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu KNGDD % TCu 21