Metaliko Resources : Download 01/07/2015 - Kalgoorlie Gold Project Update - 1m RC Drilling Results

Hole ID

North (m)

East

(m)

RL (m)

Depth

(m)

Dip

(deg.)

Azimuth

(deg.)

From

(m)

To

(m)

Interval

(m)

Au (OG44) g/t

GOONGARRIE LADY (Significant Assays >0.40g/t Au)

GLRC1502

6670596

325009

361

84

-60

78

81

82

1

0.73

Including

71

73

2

2.18

Including

78

79

1

4.05

Including

46

47

1

1.76

51 52 1 1.94

GLRC1506

6670522

325057

361

84

-60

78

51

52

1

7.20

70 71 1 0.46

BPRC1501

6655212

327690

400

50

-60

247

23

24

1

0.46

BPRC1503

6655150

327788

400

60

-60

247

NSA

BPRC1505

6655093

327857

400

50

-60

247

NSA

Including

25

26

1

5.67

84 88 4 2.15

Including

84

85

1

5.15

92 94 2 1.17

BPRC1507

6653496

329020

400

150

-60

247

105

115

10

1.87

Including 105 107 2 2.82

Including

108

114

6

1.97

117

118

1

1.11

121 127 6 0.60

BPRC1509

6653433

329035

400

130

-60

247

89

96

7

2.91

Including 89 91 2 4.49

Including

94

95

1

7.15

Criteria

JORC Code explanation

Commentary

Sampling

techniques

 Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under

investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

 1m single splits taken using riffle splitter have been used in this report and selected based on analysis of 4m composite results. Additional 1m split samples have been stored for follow up sampling if required. Average sample weights about 1.5-2kg.

 Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

 Regular air & manual cleaning of cyclone or RC Drilling to remove hung up clays.

 Standards & replicate assays taken by the laboratory.

 Aspects of the determination of mineralisation that are

Material to the Public Report.

 RC chips were geologically logged and sampled over 1m lengths from the surface. Depending on the hole depth, the maximum and minimum interval was 1.

 In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg

was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types

(e.g. submarine nodules) may warrant disclosure of

detailed information.

 Drilling of mainly quartz-sulphide veins within granite-greenstone hosted mineralisation.

Drilling

techniques

 Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and

details (e.g. core diameter, triple or standard tube, depth

of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

 Reverse Circulation Drilling with 4.75" bit

Drill sample

recovery

 Method of recording and assessing core and chip sample recoveries and results assessed.

 Measures taken to maximise sample recovery and ensure representative nature of the samples.

 Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred

due to preferential loss/gain of fine/coarse material.

 RC recovery and meterage was assessed by comparing drill chip volumes (sample bags) for individual meters. Good recoveries were recorded. Routine checks for correct sample depths are undertaken every rod (6m).

 RC sample recoveries were visually checked for recovery, moisture and contamination. The cyclone was routinely cleaned ensuring no material build up.

 Due to the good drilling conditions (dry, competent) the geologist believes the samples are homogenous and representative, some bias would occur in the advent of poor sample recovery

(which was not seen).

Logging

 Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support

appropriate Mineral Resource estimation, mining studies

and metallurgical studies.

 Whether logging is qualitative or quantitative in nature.

Core (or costean, channel, etc) photography.

 Drill chip logging was completed on one metre intervals at the rig by the geologist. The log was made to standard logging descriptive sheets, and transferred into Micromine software once back at the

office.

 Logging was qualitative in nature.

 100% of all meterages were geologically logged.

Criteria

JORC Code explanation

Commentary

 The total length and percentage of the relevant intersections logged.

Sub-sampling techniques and sample

preparation

 If core, whether cut or sawn and whether quarter, half or all core taken.

 If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

 For all sample types, the nature, quality and appropriateness of the sample preparation technique.

 Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

 Measures taken to ensure that the sampling is representative of the in situ material collected, including

for instance results for field duplicate/second-half

sampling.

 Whether sample sizes are appropriate to the grain size of the material being sampled.

 RC samples taken.

 RC samples were collected from the drill rig by spearing each collection bag and compiling a 4m composite sample. Single splits were automatically taken by emptying the bulk sample bag into a riffle splitter. Samples collected in mineralisation were all dry.

 No duplicate 4m composites were taken in the field, single splits were taken at time of drilling and selected for analysis once 4m composite assays are received. 4m samples were submitted to Aurum Labs in Perth and 1m splits were submitted to ALS Laboratories in Kalgoorlie for preparation and Perth for analysis.

 Samples were consistent and weighed approximately 1.5-2.0 kg and it is common practice to review

1m results and then review sampling procedures to suit.

 Once samples in Perth, further work including duplicates and QC will be undertaken, results will be incorporated into a resource once all procedures are completed.

 Mineralisation is located in weathered clays, sometimes saprolitic, transitional and fresh rock and the sample size is standard practice in the WA Goldfields to ensure representivity. Minor amounts of quartz-sulphide was observed.

Quality of

assay data and laboratory tests

 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the

technique is considered partial or total.

 For geophysical tools, spectrometers, handheld XRF

instruments, etc, the parameters used in determining the

analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

 Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks)

and whether acceptable levels of accuracy (ie lack of bias)

and precision have been established.

 The composite samples (4m) were assayed by Aqua Regia (AAR50) with a Fire Assay check (FA50)

by Aurum Labs (Perth) for gold only and is considered a partial digest. The 1m samples were assayed by Aqua Regia with ICP-MS Finish (OG44) by ALS Laboratories in Perth.

 No geophysical tools were used.

 Laboratory QA/QC involves the use of internal lab standards using certified reference material, blanks, splits and replicates as part of the in-house procedures. QC results (blanks, duplicates, standards) were in line with commercial procedures, reproducibility and accuracy. Aqua regia digestion was used with fire assay checks.

Verification of

sampling and assaying

 The verification of significant intersections by either independent or alternative company personnel.

 The use of twinned holes.

 Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic)

protocols.

 Discuss any adjustment to assay data.

 Work was supervised by senior Aurum and ALS staff experienced in metals assaying. QC data reports confirming the sample quality are supplied.

 No twin holes undertaken.

 Data storage as PDF/XL files on company PC in Perth office.

 No data was adjusted.

Location of data points

 Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

 Specification of the grid system used.

 Quality and adequacy of topographic control.

 All drill collar locations were surveyed using a hand held Garmin GPS, accurate to within 3-5m.

Holes were drilled as per the collar details shown in Table 1. All reported coordinates are referenced to this grid. The topography was relatively flat.

 Grid MGA94 Zone 51

 Topography was fairly flat, small differences in elevation between drill holes will have little effect on mineralisation widths on initial interpretation.

Criteria

JORC Code explanation

Commentary

Data spacing

and distribution

 Data spacing for reporting of Exploration Results.

 Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity

appropriate for the Mineral Resource and Ore Reserve

estimation procedure(s) and classifications applied.

 Whether sample compositing has been applied.

 The hole spacing was variable in accordance with Table 1. At the Goongarrie Lady Prospect the holes have been designed to both confirm previously identified mineralisation and look for

extensions at depth. The holes were drilled to depth between 78 and 108m down hole depth.

Combined with historic drilling the new data is expected to provide suitable information to define an Indicated Resource. At the Baden Powell the drilling was drilled between 50m and 150m down hole depth and were more of a reconnaissance nature.

 Historic resources have been determined for Goongarrie Lady. No historic resources have been determined for Baden Powell as it is a new prospect.

 No compositing has been undertaken, these are 1m samples.

Orientation of data in relation to geological

structure

 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

 If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to

have introduced a sampling bias, this should be assessed

and reported if material.

 60 degree angle holes is routine in the eastern goldfields, true widths are often calculated depending upon the geometry. In this case the intercept width is expected to be close to the true width.

 The relationship between the drilling orientation and the orientation of mineralised structures is not considered to have introduced a sampling bias. Given the style of mineralization and drill spacing/ method, it's probably the most common routine for delineating shallow gold resources.

Sample

security

 The measures taken to ensure sample security.

 Samples were collected on site under supervision of the responsible geologist. The work site is on pastoral station. Visitors need permission to visit site. Once collected samples were wrapped and

transported to Kalgoorlie. Dispatch and con notes were delivered and checked for discrepancies.

Audits or reviews

 The results of any audits or reviews of sampling techniques and data.

 No Audits have been commissioned. An external consultant has reviewed the sampling procedure and approved its use.

Criteria

JORC Code explanation

Commentary

Mineral

tenement and land tenure

status

 Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties,

native title interests, historical sites, wilderness or national park and environmental settings.

 The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence

to operate in the area.

 Goongarrie Lady - Mining License M29/420 and Baden Powell - Prospecting Licenses P24/4198 and P24/4199.

 The tenements are in good standing and no known impediments exist.

Exploration

done by other parties

 Acknowledgment and appraisal of exploration by other parties.

 Julia Mines conducted significant exploration and mining at Goongarrie Lady and surrounding areas.

At Baden Powell limited historic work has been conducted.

Geology

 Deposit type, geological setting and style of mineralisation.

 Archaean greenstone/granite contact and shear zones.

Drill hole

Information

 A summary of all information material to the understanding of the exploration results including a

tabulation of the following information for all Material drill

holes:

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above

sea level in metres) of the drill hole collar

o dip and azimuth of the hole

o down hole length and interception depth

o hole length.

 If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the

case.

 Details are included in Table 1

 No information is excluded.

Data

aggregation methods

 In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade

truncations (e.g. cutting of high grades) and cut-off

grades are usually Material and should be stated.

 Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade

results, the procedure used for such aggregation should

be stated and some typical examples of such aggregations should be shown in detail.

 The assumptions used for any reporting of metal equivalent values should be clearly stated.

 No weighting or averaging calculations were made, assays reported and compiled on the "first assay received" basis.

 Assays have been reported >0.4g/t Au for the Goongarrie Lady and Baden Powell Prospects. No short lengths assay samples have been incorporated. The minimum interval reported here is 4m.

 No metal equivalent calculations were applied.

Relationship

between mineralisation

 These relationships are particularly important in the reporting of Exploration Results.

 If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

 Given the spacing of the holes, it was deemed unnecessary to portray the interpreted ore zones at this time. At Goongarrie the extensive database of drilling and interpretations, coupled with the angle

of the RC drilling suggests the true width of the mineralisation will be close to the downhole width.

 Drill intercepts and true width appear to be very close to each other, or within reason allowing for

Criteria

JORC Code explanation

Commentary

widths and

intercept lengths

 If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect

(e.g. 'down hole length, true width not known').

the minimum intercept width of 1m. True width is however unknown.

 Given the nature of RC drilling, the minimum width and assay is 1m.

Diagrams

 Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any

significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

 Maps commensurate with the current stages of the prospects are shown in Figures 2 and 3.

Balanced reporting

 Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration

Results.

 Drill intercept grades mentioned are at suitably conservative cut-offs for all results being >0.4g/t Au.

Further drilling is required.

Other

substantive exploration data

 Other exploration data, if meaningful and material, should be reported including (but not limited to):

geological observations; geophysical survey results;

geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock

characteristics; potential deleterious or contaminating substances.

 There has previously been an historic resource calculated for the Goongarrie Lady Deposit and the current drilling is designed to extend the mineralisation and improve confidence so that ultimately if

there is sufficient data, an updated JORC Compliant Mineral Resource Estimate can be compiled.

 For the Baden Powell Prospect there is not sufficient information to compile a Mineral Resource

Estimate and there has not been one compiled historically.

Further work

 The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).

 Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

 Additional drilling will be completed in due course.

 Not applicable, commercially sensitive.