Millennium delivers 38% interim increase in Ore Reserves ... · • Millennium’s aggressive...

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31st July 2018

2018 Interim Ore Reserve Statement

Millennium delivers 38% interim

increase in Ore Reserves at

Nullagine to 304,700oz

Aggressive exploration commitment and expansion

strategy paying strong dividends with upgraded

Reserve providing visibility to 3-year mine life

• Millennium’s aggressive exploration strategy at the Nullagine Gold

Project continues to deliver outstanding results, resulting in an

interim increase in Ore Reserves to 304,700oz:

▪ 6.0Mt at 1.6g/t Au for 304,700oz of contained gold

• This represents a 38% increase in Ore Reserves since 31 December

2017 (221,600oz), net of mining depletion of 38,000oz

• Average Ore Reserve grade remains constant at 1.6g/t

• Delivers mine life visibility of three years, based on Millennium’s

targeted annual production rate of 100kozpa, which is on-track to

be achieved in the December 2018 Quarter

• Updated Ore Reserve includes for the first time several key sulphide

ore deposits at Nullagine, underpinned by the newly-identified

sulphide ore processing option (see announcement of 5 February)

• The conversion of Sulphide Mineral Resources to Ore Reserves is

continuing, with further growth in Ore Reserves and mine life

expected

• Multiple exploration targets remain untested, offering further

significant potential to grow Mineral Resources and Ore Reserves

• Marks a major step towards Millennium’s objective of increasing

production at Nullagine to +100,000ozpa with a minimum 5-year

mine life

Millennium Minerals Limited (ASX: MOY) (“Millennium” or the

“Company”) is pleased to announce that it has taken another key step

towards growing production and mine life at its flagship 100%-owned

Nullagine Gold Project in WA, with an interim Ore Reserve update for the

six months to 30 June 2018 delivering a 38% increase in Ore Reserves, net

of mining depletion, to 304,700 ounces.

The increase in Ore Reserves is a result of recent successful drilling

programs, as well as the conversion of several sulphide Mineral Resource

estimates to Ore Reserves.

The Project’s Ore Reserves at 30 June 2018 have increased by 38 per cent

to 304,700oz, up from 221,600oz as at 31 December 2017 (net of mining

depletion of 38,000oz for 1HCY2018).

Corporate Details

Ordinary Shares: 791,970,324

Market Capitalisation: ~$150 million

Cash and bullion at 30 June 2018: ~$13.6 million Debt: NIL

ASX Code: MOY

Board of Directors

Greg Bittar Non-Executive Chairman

Michael Chye Non-Executive Director

Tim Kennedy Non-Executive Director

Peter Lester Non-Executive Director

Management

Peter Cash

Chief Executive Officer Dean Will Chief Operating Officer Ray Parry Chief Financial Officer and Company Secretary

Contact Details

Unit 7, 140 Abernethy Road BELMONT WA 6104 Telephone:

+ 61 (08) 9216 9011

Facsimile:

+ 61 (08) 9481 0288

Email: [email protected]

Website:

millenniumminerals.com.au

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The updated Ore Reserve delivers mine life visibility of over three years, based on Millennium’s

targeted annual production rate of 100,000ozpa which the Company is on-track to achieve in the

December 2018 Quarter.

The Company’s objective is to further increase its Reserve base to deliver a plus-five year mine life,

with significant opportunities to deliver near-term Reserve growth through the conversion of

additional sulphide Mineral Resources and through further exploration success.

The conversion of sulphide Mineral Resource to Ore Reserves is underpinned by the newly-identified

sulphide processing option announced on 5 February 2018. Progress towards the expansion of the

existing 2Mtpa CIL processing plant at Nullagine to facilitate the treatment of sulphide ore is

continuing, with front end engineering design commenced on long lead items.

The Company expects to appoint an engineer to complete detailed design and construction

management during the September Quarter.

Millennium Chief Executive Peter Cash said the interim Ore Reserve update delivered a very pleasing

result for the Company, increasing mine life to beyond three years with strong potential for further

growth.

“This represents a fantastic result for Millennium, increasing our Reserve base by more than one-

third, net of mining depletion.

“Importantly, we have now successfully delivered a three-year mine life at Nullagine based on our

targeted annual production rate of 100,000 ounces per annum.

“This updated Reserve figure includes the conversion of sulphide Mineral Resources at the All

Nations, Au81 West, Gambols, Golden Eagle, Little Wonder, Otways, Roscoes Reward, Shearers

deposits, with numerous other deposits yet to be converted.

“With these conversions currently underway, and with drilling continuing across our high-quality

pipeline of exploration targets, we see significant opportunity to further increase our Reserve base

in the near-term.”

Mineral Resources

The Mineral Resources Statement as at 30 June 2018 is reported according to the Australasian Code

for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC Code’) 2012

edition. The Mineral Resources are reported inclusive of Ore Reserves and exclusive of all mined

(depleted) material.

Table 1: June 2018 Mineral Resource Estimate1 by Resource Category

Mineral Resource

Category

Million

Tonnes Grade (g/t Au)

Thousand

Ounces

Measured 4.04 1.3 190.5

Indicated 9.66 1.6 509.1

Inferred 8.22 1.5 407.5

Total 21.92 1.6 1,107.1

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Ore Reserves

The total Project Ore Reserve estimate as at 30 June 2018, depleted for mining, is set out in Table

2 below:

Table 2: 2017 Total Ore Reserve Estimate2 by Reserve Category

Ore Reserve

Category

Million

Tonnes

Grade

(g/t Au)

Thousand

Ounces

Proved 1.67 1.2 67.1

Probable 4.35 1.7 237.6

Total 6.02 1.57 304.7

Summary

The Mineral Resource and Ore Reserve estimates have been updated for a number of the Company’s

gold deposits located within the Project area in the East Pilbara District of Western Australia

(Figure 1).

Mineral Resource Estimates

The Mineral Resources for the following deposits are new:

Billjim South Buzzard

Mineral Resources were updated for the following deposits based on further infill drilling

Anne de Vidia Au81 (inc West)

Junction Redbeard

Roscoes Reward Shearers

Shearers Nth All Nations

Little Wonder Mustang

The Mineral Resources for the following deposits were updated for mining depletion:

Golden Eagle Au81 (inc West)

Bartons Open Pit Gambols

Mining depletion was calculated by intersecting the final end of month surveyed pit digital terrain

model (DTM) with the Mineral Resource block model and subtracting/depleting the Mineral Resource

above that DTM to the natural pre-mining surface.

The following Mineral Resources remain unchanged:

Agate Angela

Bow Bells Bartons Underground

Condor (inc North West) Crossing

Crow Falcon

Golden Gate G Reef UG Golden Gate ABC Reef & Harrier UG

Golden Gate D Reef Hopetoun/Endevour

Hut Little Annie

Majuba Otways

Round Hill

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Figure 1: Nullagine Deposit Location Plan over regional geology

A summary of material information required under Australian Securities Exchange (ASX) Listing

Rules 5.8 and JORC Code (2012), inclusive of ‘Table 1’, for all deposits are presented in the

Appendices

Table 3 details the total Mineral Resource estimate for the Project. Details of all Mineral Resource

models are documented in the appended JORC “Table 1”.

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Table 3: Nullagine Gold Project – Mineral Resource Statement1 (30 June 2018)

Nullagine Gold Project - Mineral Resource Statement

Deposit

Measured Indicated Inferred Total Remaining

Million Tonnes

Grade g/t Au

Million Tonnes

Grade g/t Au

Million Tonnes

Grade g/t Au

Million Tonnes

Grade g/t Au Au Ounces

Agate3 0.23 1.2 0.11 1.1 0.34 1.2 12,600

All Nations3 0.11 1.4 0.30 1.4 0.24 1.2 0.65 1.3 27,200

Anne de Vidia3 0.06 1.5 0.07 1.2 0.13 1.3 5,400

Angela3 0.29 1.3 1.10 1.3 45,400

Au813 0.01 1.4 0.17 1.8 0.17 1.8 9,700

Au81 West3 0.06 1.3 0.66 1.2 0.49 1.4 1.21 1.3 51,400

Bartons Open Pit3 0.07 2.8 0.17 1.5 0.11 1.2 0.34 1.7 18,400

Bartons UG6 0.41 3.5 0.22 3.5 0.63 4.9 97,900

Billjim South 0.05 3.2 0.05 3.2 5,500

Buzzard 0.11 1.8 0.11 1.8 6,100

Condor (including NW)6 0.11 4.9 0.02 3.5 0.13 4.7 20,300

Crossing3 0.30 1.2 0.06 1.3 0.36 1.3 14,600

Crow6 0.04 5.0 0.02 5.3 0.06 5.1 10,000

Falcon5 0.06 3.0 0.02 2.4 0.08 2.9 7,300

Gambols Hill3 0.13 1.6 0.17 1.6 0.30 1.6 15,700

Golden Gate G Reef6 UG 0.01 3.6 0.00 2.4 0.01 3.3 700

Golden Eagle3 2.87 1.3 2.25 1.3 2.57 1.4 7.69 1.4 334,400

Golden Gate ABC Reef + Harrier6

UG 0.08 6.4 0.11 4.6 0.19 5.4 32,100

Golden Gate D Reef6 UG 0.04 5.3 0.02 5.8 0.06 5.4 11,100

Hopetoun-Endeavour3 0.17 1.4 0.50 1.4 0.67 1.4 30,100

Hut3 0.29 1.2 0.09 1.0 0.38 1.1 13,800

Junction4 0.05 1.9 0.06 1.5 0.04 1.5 0.15 1.7 7,800

Little Annie3 0.12 1.4 0.12 1.4 5,200

Little Wonder4 0.06 1.5 0.29 1.5 0.81 1.7 1.16 1.6 60,400

Majuba3 0.31 1.4 0.05 1.5 0.35 1.4 16,100

Mundalla3 0.13 1.4 0.18 1.3 0.30 1.3 13,100

Mustang3 0.16 1.8 0.10 1.4 0.25 1.6 13,000

Otways3 0.48 1.1 0.76 1.1 0.54 1.0 1.78 1.1 60,700

Redbeard 0.17 3.6 0.05 1.8 0.06 1.4 0.28 2.8 25,200

Roscoes Reward3 4 0.58 1.4 0.32 1.3 0.90 1.4 40,400

Round Hill/Bow Bells3 0.51 1.8 0.10 2.1 0.61 1.9 36,400

Shearers3 0.62 1.5 0.31 1.3 0.93 1.4 42,400

Shearers North3 0.13 1.4 0.11 1.3 0.18 1.1 0.43 1.2 16,500

Total 4.04 1.3 8.84 1.6 8.22 1.5 21.92 1.6 1,107,100 Notes:

1. Figures in Table may not sum due to rounding.

2. The Au81 deposit was estimated using ordinary kriging methodology for grade estimation by CSA Global.

3. Agate, All Nations, Angela, Anne de Vidia, Au81 West Bartons Open Pit, Bow Bells, Crossing, Condor North-West, Gambols Hill, Golden Eagle, Hopetoun-Endeavour, Hut, Junction, Little Annie, Little Wonder, Majuba, Mustang, Otways, Roscoes Reward, Round Hill, Shearers and Shearers North were estimated by ordinary kriging by Millennium Minerals Ltd.

4. Golden Gate satellite deposit, Falcon, was estimated using ordinary kriging by Dampier Consulting. 5. Barton Underground and Golden Gate open pit and underground deposits reported by Entech Pty Ltd.

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Ore Reserve Estimates

The JORC compliant Ore Reserve estimates as at 30 June 2018 is 6.02 million tonnes at 1.57 g/t

Au for 304.7 thousand ounces.

Material Assumptions Applied in Ore Reserves Estimates

Ore Reserves are based upon 21 stratigraphically domained and ordinary kriged block Mineral

Resource models. The Ore Reserves estimates are defined from those Mineral Resources by

completing pit optimisations and subsequent pit designs based on geotechnical parameters and

practical mining considerations.

The following material assumptions have been applied to the Ore Reserves:

• Gold price of $1650 per ounce

• Current mining and processing operating costs

• Geotechnical recommendations (as per current practice and advised by external

consultants)

• For the Oxide Pit reserves, the current Metallurgical Recoveries have been applied. For the

Sulphide Pit reserves, an improvement of 50% to the recovery of gold currently sent to tails

has been applied.

Ore Reserve Classification

All Proved and Probable Ore Reserves are derived from Measured and Indicated Mineral Resources

and surveyed stockpiles. The Mineral Resource estimates reported are inclusive of the Ore

Reserves. Inferred Mineral Resource are treated as waste in the pit optimisation and therefore not

included in the Ore Reserves estimation process.

Measured resources where mining is currently not occurring have been downgraded to Probable

Reserves. All Sulphide Pit reserves have been considered as Probable Reserves due to the level of

study completed.

Mining Method

The mining method is conventional drill and blast and load and haul with an excavator and large

open pit mining equipment. This is considered to be appropriate for the style of mineralisation being

exploited and is applied to many similar type operations in Western Australia.

A 10% gradient and 14 m width (including safety windrow) is used in most in-pit ramp designs. At

the base of some pits and in the smaller pits, a 14% gradient and 9m ramp has been utilised. The

mining costs have been changed to reflect the change in equipment.

Geotechnical and hydrogeological recommendations have been applied during pit optimisation and

incorporated in designs with ongoing reviews. Mining dilution and ore loss factors have been applied

during pit optimisations and hence are considered in the Ore Reserves estimates.

Ore Processing

The existing 1.5 Mtpa nameplate ore processing facility and infrastructure consists principally of a

primary crusher, SAG mill, gravity circuit and carbon-in-leach (CIL) tankage and will be utilised for

the processing of the Ore Reserves. Metallurgical recovery factors are based on metallurgical tests

and ongoing actual plant recovery reconciliation factors. For the Oxide Pit reserves, Recovery

factors range from 70% to 95% and vary depending on particular areas in each pit and deposit.

These factors have been assumed in the pit optimisation and Ore Reserves estimates. For the

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Sulphide Pit reserves, an improvement on these recoveries (some of which are less than 50%) has

been applied. All recoveries have been applied on a pit by pit basis and dependant on the planned

processing regime. Additionally, the Processing Costs have been increased by $4/t to reflect the

minor additional costs of Sulphide Expansion Plant.

Cut-off Grade

An economical block cut-off grade is calculated and applied to individual deposits in the block model

in estimating the Ore Reserves. The cut-off grade varies between the deposits due to varying

haulage costs from pit to ROM (located at the processing plant).

Due to variable recoveries for the Golden Eagle deposit, the recoveries obtained from various

metallurgical testing methods have been built into the resource model and used for optimisation.

Each Ore block has a separate recovered grade and economic cut-off grade.

Material Modifying Factors

The inputs for the Ore Reserve estimates are consistent with current actual operating practices and

experience. The infrastructure required for the mining and processing of the Ore Reserves is in

place and operating. Agreements with all key stakeholders are in place and active.

Mining Proposal approvals and Native Vegetation Clearing Permits have been granted for Golden

Eagle, Bartons, Shearers, Otways, Little Wonder, All Nations, Roscoe Reward, Junction, Anne de

Vidia, Round Hill, Majuba, Hutt and Gambols Hill. Further approvals for Mundulla, Shearers North,

Mustang, Agate, Hutt, Crossing and Redbeard also progressing and are expected to be received in

line with Mining Requirements.

Ore Reserve Estimation were updated for the following deposits based on further infill drilling,

changes in the Gold price and improvements in mining costs and the introduction of the Sulphide

Processing Plant. All Nations Anne de Vidia

Au81 West Gambols

Golden Eagle Otways

Roscoes Reward Little Wonder

Shearers

The following Ore Reserve Estimates remain unchanged:

Crossing Angela

Round Hill Bow Bells

Hut Agate

Hopetoun-Endeavour Bartons Underground

Table 4 comprises the Ore Reserves for the Project’s individual gold deposits. Details of the Ore

Reserve estimation are documented in the appended JORC compliant “Table 1”

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Table 4: Nullagine Gold Project – Ore Reserve Statement1 (30 June 2018)

Prospect COG2

Au (g/t) Proved Probable Total

Ore (kt) Au

(g/t) Ore (kt)

Au (g/t)

Ore (kt) Au

(g/t) Ounces

OXID

E P

ITS

Agate5 >0.56 102,000 1.3 102,000 1.3 4,200

Angela5 >0.55 184,000 1.4 184,000 1.4 8,000

Au81 West4 >0.50 251,000 1.2 251,000 1.2 10,000

Bow Bells5 >0.7 22,500 2.2 22,500 2.2 1,600

Condor North West5

>0.66 45,500 3.6 45,500 3.6 5,300

Crossing5 >0.54 92,600 1.2 92,600 1.2 3,500

Golden Eagle3,4 * 1,200,000 1.4 302,000 1.2 1,500,000 1.4 66,000

Hopetoun - Endeavour5

>0.65 68,000 1.6 68,000 1.6 3,400

Hut5 >0.56 116,000 1.2 116,000 1.2 4,300

Mundalla5 >0.53 24,200 1.6 24,200 1.6 1,200

Mustang5 >0.6 63,200 2.2 63,200 2.2 4,400

Redbeard >0.64 153,000 3.5 153,000 3.5 17,000

Round Hill5 >0.67 108,000 2.7 108,000 2.7 9,400

Shearers North >0.54 147,000 1.3 147,000 1.3 6,100

Sub-total 1,200,000 1.4 1,679,000 1.7 2,879,000 1.6 144,400

SU

LPH

IDE P

ITS

All Nations >0.68 273,000 1.5 273,000 1.5 13,000

Anne de Vidia >0.5 36,800 1.5 36,800 1.5 1,700

Au81 West >0.6 166,000 1.2 166,000 1.2 6,500

Gambols >0.6 52,500 1.7 52,500 1.7 2,900

Golden Eagle >0.53 809,000 1.4 809,000 1.4 37,000

Otways >0.59 312,000 1.1 312,000 1.1 11,000

Roscoes Reward / Little Wonder

>0.6 534,000 1.4 534,000 1.4 24,000

Shearers >0.65 220,000 1.6 220,000 1.6 11,000

Sub-total 2,403,000 1.4 2,403,000 1.4 107,600

U/G Bartons5 >2.0 270,000 4.5 270,000 4.5 39,000

Sub-total 1,200,000 1.4 4,350,000 1.7 5,550,000 1.6 291,100

Stockpiles

Golden Eagle 350,000 0.8 350,000 0.8 9,200

Au81 West 67,000 1.2 66,600 1.2 2,600

Others 56,000 1.1 55,800 1.1 1,900

Sub-total 473,000 0.9 473,000 0.9 14,000

Total Ore Reserves

1,670,000 1.2 4,350,000 1.7 6,020,000 1.6 304,700

1 Figures in Table 4 may not sum due to rounding. 2 Cut-off grades vary due to variable haulage costs from pit to ROM. 3 Due to variable recoveries for each ore block in Golden Eagle Deposit, the economical cut of grades are built into each ore blocks in the model used for the optimisation. 4 The ore reserve has been updated for mining depletion. 5 Ore Reserve Estimate remain unchanged

ENDS

For further information:

Millennium Minerals Limited: For media inquiries:

Peter Cash Paul Armstrong

Chief Executive Officer Read Corporate

+61 8 9216 9011 +61 421 619 084

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Competent Persons Statements – Mineral Resources

The information in this Report which relates to Agate, Angela, All Nations, Anne De Vidia, Au81, Au81 West,

Bartons Open Pit and Underground, Billjim South, Bow Bells, Buzzard, Condor, Condor North-West, Crossing,

Crow, D Reef, Falcon, Gambols Hill, Golden Eagle, Golden Gate (ABC Reef-Harrier, D Reef, Condor, Crow & G

Reef), Hopetoun-Endeavour, Hut, Junction, Little Annie, Little Wonder, Majuba, Mundalla, Mustang, Otways,

Redbeard, Roscoes Reward, Round Hill, Shearers and Shearers North Mineral Resource estimates accurately

reflects information prepared by Competent Persons (as defined by the Australasian Code for Reporting of

Exploration Results, Mineral Resources and Ore Reserves).

The Au81, Au81 West, All Nations, Bartons Open Pit, Billjim South, Buzzard, Golden Eagle, Gambol Hills,

Little Annie, Little Wonder, Majuba, Mundalla, Mustang, Redbeard, Roscoes Reward, Shearers, Shearers

North Mineral Resource Estimates have been compiled and prepared by Mr Graeme Thompson (MAUSIMM)

who is a full time employee of Millennium Minerals Limited and is a Competent Person as defined by the

Australasian Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code)

2012 Edition and who consents to the inclusion in this report of the matters based on the information in the

form and context in which it appears.

The Agate, Angela, Anne De Vidia, Bow Bells, Hopetoun-Endeavour, Hut, Junction, Otways, and Round Hill

Mineral Resource estimates have been compiled and prepared by Ms Christine Shore (MAusIMM) who was a

full-time employee of Millennium Minerals Limited who is a Competent Person as defined by the Australasian

Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 Edition

and who consents to the inclusion in this report of the matters based on the information in the form and

context in which it appears.

The Falcon Mineral Resource estimate have been compiled and prepared by Mr Andrew Paterson, (MAusIMM)

of Dampier Consulting who is a Competent Person as defined by the Australasian Code for the reporting of

Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 Edition and who consents 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 the report to which this statement is attached that relates to the Sampling Techniques,

Exploration Results and Data Quality underpinning the Mineral Resource Estimate for Golden Gate (ABC

Reef-Harrier, D Reef, Condor, Crow & G Reef) and Bartons Underground Mineral Resource inclusive of

sampling, collection, validation, storage and third party supplied drillhole data information is based upon

information compiled by Mr Andrew Dunn (MAIG), a geologist employed full-time by Millennium Minerals

Limited, compiled the technical aspects of this Report. Mr Dunn is a member of the Australian Institute of

Geoscientists and has sufficient experience that is relevant to this style of mineralization and type of deposit

under consideration and to the activity that is being reported on to qualify as a Competent Person as defined

in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore

Reserves”. Mr Dunn consents to the inclusion in the report of the matters in the form and context in which it

appears.

The information in the report to which this statement is attached that relates to the Estimation and Reporting

of Gold Mineral Resources for Golden Gate (ABC Reef-Harrier, D Reef, Condor, Crow & G Reef) and Bartons

Underground Mineral Resource Estimates is based upon information compiled by Mr. Andrew Finch BSc., a

Competent Person who is a member of the Australian Institute of Geoscientists (MAIG 3827). Mr Finch is

Senior Consultant Geologist at Entech Pty Ltd. and an independent consultant to Millennium Minerals Ltd. Mr

Finch has sufficient experience relevant to the style of mineralisation and deposit type under consideration

and to the activities being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the

“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Finch

consents to the inclusion in the report of matters based on his information in the form and context in which it

appears.

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Competent Persons Statements – Ore Reserves

The information in this Release which relates to the Ore Reserve estimates accurately reflect information

prepared by Competent Persons (as defined by the Australasian Code for Reporting of Exploration Results,

Mineral Resources and Ore Reserves).

The information in this public statement that relates to the Ore Reserves at the Nullagine Gold Project covering

the Au81 West, Redbeard and Shearers North Oxide Pits reserves and the All Nations, Anne de Vidia, Au81

West, Gambols, Golden Eagle, Otways, Roscoes Reward, Little Wonder, and Shearers Sulphide Pit reserves

are based on information resulting from technical works carried out by Mr Michael Poepjes, who is a member

of the Australasian Institute of Mining and Metallurgy. Mr Michael Poepjes who is a full-time employee of

Millennium Minerals Limited and has sufficient experience which is relevant to the style of mineralisation and

type of deposits under consideration and to the activity which she is undertaking to qualify as a Competent

Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral

Resources and Ore Reserves”. Michael Poepjes consents to the inclusion in the report of the matters based on

his information in the form and context in which it appears.


the Golden Eagle, Mundalla, Mustang and Condor North-West, projects is based on information resulting from

technical works carried out by Miss Asareh Mansoori, who was a full-time employee of Millennium Minerals

Limited who is a member of the Australasian Institute of Mining and Metallurgy and Competent Person as

defined by the Australasian Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves

(JORC Code) 2012 Edition and who consents to the inclusion in this report of the matters based on the

information in the form and context in which it appears.


the Crossing, Round Hill, Hut, Angella, Agate, Hopetoun-Endevour and Bow Bells projects is based on

information resulting from technical works carried out by Mr Srinivasa Rao Gadi, who was a full-time employee

of Millennium Minerals Limited who is a member of the Australasian Institute of Mining and Metallurgy and

Competent Person as defined by the Australasian Code for the reporting of Exploration Results, Mineral

Resources and Ore Reserves (JORC Code) 2012 Edition and who consents to the inclusion in this report of the

matters based on the information in the form and context in which it appears.

The information contained in the report that relates to Ore Reserves for the Bartons underground mine is

based on information compiled or reviewed by Matthew Keenan. Mr Keenan confirmed that he has read and

understood the requirements of the 2012 Edition of the Australasian Code for Reporting of Exploration Results,

Mineral Resources and Ore Reserves (JORC Code 2012 JORC Edition). He is a Competent Person as defined by

the JORC Code 2012 Edition, having more than five years’ experience which is relevant to the style of

mineralisation and type of deposit described in the Report, and to the activity for which he is accepting

responsibility. Mr Keenan is a Member of The Australasian Institute of Mining and Metallurgy, has reviewed

the Report to which this consent statement applies and is a full-time employee working for Entech Pty Ltd

having been engaged by Millennium Minerals Ltd to prepare the documentation for the Bartons underground

mine on which the Report is based, for the period ended 31 December 2017. Mr Keenan has disclosed to the

reporting company the full nature of the relationship between himself and the company, including any issue

that could be perceived by investors as a conflict of interest. Mr Keenan verifies that the Report is based on

and fairly and accurately reflects in the form and context in which it appears, the information in his supporting

documentation relating to Ore Reserves.

Qualifying Statement

This release may include forward-looking statements. These forward-looking statements are based on

Millennium’s expectations and beliefs concerning future events. Forward-looking statements are necessarily

subject to risks, uncertainties and other factors, many of which are outside the control of Millennium, which

could cause actual results to differ materially from such statements. Millennium makes no undertaking to

subsequently update or revise the forward-looking statements made in this release, to reflect the

circumstances or events after the date of this release.

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Appendix 1 – Entech Executive Summary - Golden Gate Gold Mineral Resource Estimate

EXECUTIVE SUMMARY

GOLDEN GATE OPEN PIT AND UNDERGROUND GOLD MINERAL RESOURCE

UPDATE

Mineral Resource Statement

The Mineral Resources Statement for Golden Gate Open Pit and Underground Mineral Resource Estimate (MRE) is

reported according to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves

(the ‘JORC Code’) 2012 edition.

In the opinion of Entech, the resource evaluation reported herein is a reasonable representation of the global gold insitu

Mineral Resources within the Golden Gate suite of deposits. It is based upon Reverse Circulation and Diamond Drilling

sampling data available as of 20th September 2017 and is exclusive of all mined material.

Table 1.1 Golden Gate Underground Mineral Resources at a 2.0g/t gold cut-off, by Resource Category.

Resource Category Tonnes (000’s)

Gold Grade (g/t)

Gold Ounces (000’s)

Indicated 122.0 6.0 23.7

Inferred 127.7 4.8 19.5

Total 249.7 5.4 43.2

Tonnages are dry metric tonnes. Minor discrepancies may occur due to rounding

Table 1.2 Golden Gate Open Pit Mineral Resources at a 0.5g/t gold cut-off, by Resource Category.


Gold Grade (g/t)


Indicated 156.4 4.9 24.6

Inferred 46.2 4.3 6.4

Total 202.6 4.8 31.0


The deposits within this MRE statement are inclusive of ABC Reef, D Reef, Harrier, Crow, Condor and G Reef. They are

tabulated by deposit within Tables 1.3 to 1.4 and presented in Figure 1.1.

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Table 1.3 Golden Gate Underground Mineral Resources at a 2.0g/t gold cut-off, Deposit and Oxidation Breakdown.

Deposit Weathering Resource Category Tonnes (000's) Grade (g/t)

Ounces (000's)

ABC Reef + Harrier

Fresh Indicated 78.1 6.4 16.2

Inferred 108.4 4.6 15.9

Sub Total 186.5 5.4 32.1

D Reef Fresh

Indicated 43.9 5.3 7.5

Inferred 19.3 5.8 3.6

Sub Total 63.2 5.4 11.1

Total 249.7 5.4 43.2


Table 1.4 Golden Gate Open Pit Mineral Resources at a 0.5g/t gold cut-off, Deposit and Oxidation Breakdown.

Deposit Weathering Resource Category Tonnes (000's) Grade (g/t)

Ounces (000's)

Condor (inc North

West)

Oxide Indicated 64.8 5.6 11.7

Inferred 4.9 4.1 0.6


Inferred 18.9 3.4 2.1

Sub Total 134.7 4.7 20.3

Crow


Inferred - - -


Inferred 20.8 5.3 3.6

Sub Total 60.9 5.1 10.0

G Reef


Inferred 0.3 1.3 < 0.1

Fresh Indicated 0.5 2.6 < 0.1

Inferred 1.2 2.7 0.1

Sub Total 7.0 3.3 0.7

Total 202.5 4.8 31.0


The MRE was informed by Reverse Circulation (RC) drilling and Diamond Drilling (DD). Rotary Air Blast and water-bore

drill hole data was excluded from the MRE process. ABC Reef, D Reef and Harrier underground classified resources were

supported by 544 RC and 5 DD holes for a total of 29,036 m drilling. Condor, Crow and G Reef open pit classified

13 | P a g e

resources were supported by 278 RC and 3 DD holes for a total of 12,901 m drilling. The Mineral Resource incorporates

drilling results available up to, and including, 20th September 2017.

The MRE was depleted for all open pit mining activity, surveyed up to the 31st of May 2015.

The reported underground Mineral Resource for ABC Reef, D Reef and Harrier was constrained at depth by available drill

hole spacing, nominally 245 m to 300 m below topographic surface. Upper limit constraints on the underground Mineral

Resource were demarcated by base of depletion voids (i.e. floor of historical open pit) and 50 m below topographic

surface to the south-east, 40 m to the north-west of depletion voids.

The reported open pit Mineral Resource for Condor, Crow and G Reef was constrained at depth by available drill hole

spacing, nominally 60 m to 90 m below topographic surface. An upper limit was defined by a topography surface given

the assumption these would be potentially extracted via open pit mining methods.

This MRE comprises Inferred Mineral Resources which are unable to have economic considerations applied to them, nor

is there certainty that they will be converted to Measured or Indicated Resources through further sampling.

Drilling Techniques

• RC drilling was carried out with a 5.5 inch face-sampling bit.

• Diamond HQ3 triple tube drilling was used for GGMET010 and GGMET011 diamond holes.

Sampling and Sub-Sampling Techniques

Samples for the MRE were predominately undertaken using Reverse Circulation drilling.

RC drilling was carried out with a 5.5 inch face-sampling bit, 1 m samples collected through a cyclone and cone splitter to

form a 2 kg to 3 kg sub-sample. All sub-samples were fully pulverised at the laboratory to >85% passing ‐75 µm, to

produce a 50 g charge for Fire Assay with AAS finish.

Diamond HQ3 triple tube drilling had been carried out in 2016 (GGMET010 and GGMET011). Both GGMET010 and

GGMET011 were cut with a core saw with quarter-core samples submitted for analysis. These samples were crushed and

pulverisation to produce a 50 g charge for fire assay.

The recent 1 m RC samples were split using a rig mounted cone splitter. The clear majority of the samples were dry, but

some moist and wet samples were recorded. The sample sizes are industry-standard and considered to be appropriate to

correctly represent mineralisation at the deposits based on: the style of mineralisation, the thickness and consistency of

the intersections, the sampling methodology and assay ranges for gold. Field duplicates were taken from the second

aperture of the cone splitter at a rate of 1 in 50 with additional field duplicates taken in the expected mineralised zones.

For core samples, the core was split using a core saw. Quarter-core samples were assayed; ¾-core was retained except for

ore zones where half-core was submitted for metallurgical test work.

Sample Analysis Method

Industry standard assay method of 50 g charge Fire Assay with AAS finish was used to determine total gold content.

Commercially prepared, predominantly matrix-matched low, medium & high value certified reference Quality Assurance

and Quality Control (QAQC) standards were inserted at a rate of 1 in 50 into the sample stream.

Domaining Approach

Interpretations of mineralisation domain continuity were initially undertaken within Geovia SurpacTM software.

Mineralisation intercepts correlating with the main lodes for each deposit were manually selected prior to creation of

vein models within Leapfrog3DTM implicit modelling software. Interpretation was a collaborative process with MOY

Geologists to ensure modelling appropriately represented site-based observations and current understanding of geology

and mineralisation controls.

14 | P a g e

Mineralisation volume domains for Condor, Crow and G Reef were delineated using a combination of:

• Geological information comprising of logged quartz percentage;

• Nominal lower grade minimum cut-off of 1.0 g/t gold. This number was based on exploratory data analysis of

mineralisation sample population as well as visual review of the mineralisation tenor and strike, and dip continuity;

and

• Historical open pit mining documentation, mapping, preferential orientations, and widths.

Mineralisation volume domains for ABC Reef, D Reef and Harrier were delineated using a combination of:

• Geological information comprising of logged quartz percentage;


mineralisation sample population as well as visual review of the mineralisation tenor and strike, and dip continuity.

• Historical open pit mining documentation, mapping, preferential orientations, and widths.

For instances where the intercept gold value fell below the nominal cut-off, however was supported by geological

indicators (quartz percentage), the intercept was included to maintain domain homogeneity and represent the structural

continuity evident in surface mapping, pit observations and historical mapping.

Using this approach, a series of structurally controlled parallel and sub-parallel mineralised lodes were modelled across

the Golden Gate suite of deposits.

Figure 1.1 Golden Gate Interpreted Mineralised Gold Domains, by deposit, showing drill hole intercepts and depletion surfaces. Looking towards azimuth 210o.

ABC Reef

One main and three minor narrow sub-parallel footwall mineralised lodes were modelled, trending north-west and

dipping steeply to the north-east. The main lode maintained continuity for 300 m along strike and down dip (from

surface). All lodes were historically extracted via open pit mining to a depth of 30 m to 70 m with the minor lodes fully

depleted during open pit mining.

15 | P a g e

Harrier

Harrier was modelled trending north-west and dipping steeply to the north-east. Located along strike and north-west of

the ABC Reef, Harrier maintained continuity 80 m along strike and 70 m down dip (from surface) and was historically

extracted via open pit mining to a depth of 12 m to 20 m.

Crow

Crow was modelled trending north-west and dipping steeply to the north-east. Located along strike and south-east of the

ABC Reef, Crow maintained continuity 150 m along strike and 60 m down dip (from surface). Included in the Crow

resource were two narrow parallel mineralised lodes, Crow SW, approximately 80 m to the south-west of Crow trending

north-west and dipping steeply to the north-east. They maintained continuity for 50 m along strike and 60 m down dip

(from surface). Crow was historically extracted via open pit mining to a depth of 5 m to 15 m with Crow SW extracted to

20 m.

D Reef

One main and one minor narrow sub-parallel footwall mineralised lode was modelled, trending south-west and dipping

steeply to the north-west. The D Reef maintained continuity 200 m along strike and 250 m down dip (from surface). The

footwall lode maintained continuity 100 m along strike and down dip (from surface). Both lodes were historically

extracted via open pit mining to a depth of 60 m to 80 m.

Condor, including Condor North-West

Twelve narrow sub-parallel, en-echelon mineralised lodes were modelled within the Condor mineralisation corridor,

trending north-west and dipping steeply to the north-east. Condor comprised six mineralised lodes with continuity

varying from 20 m to 90 m along strike and 50 m to 70 m down dip. Located along strike and north-west of Condor, the

Condor NW resource comprised six mineralised lodes with continuity varying from 20 m to 80 m along strike and 30 m to

60 m down dip. Four of the six Condor mineralisation lodes were historically extracted via open pit mining to a depth of

20 m to 40 m. Condor NW mineralisation was not mined.

G Reef

Three narrow sub-parallel mineralised lodes were modelled within G Reef, trending north-north-west and dipping steeply

to the west-south-west. Due to localised structural complexity, continuity was limited within 10 m to 35 m along strike

and 30 m to 60 m down dip. All three lodes were historically extracted via open pit mining to a depth of 35 m.

Estimation Approach

A two-dimensional (2D) interpolation approach was selected for the MRE to address some of the main issues

encountered when estimating narrow vein mineralisation, such as those at Golden Gate, which were:

• Additivity issues due to non-uniform support and resulting grade bias. Instances of highly variable individual

intercepts (e.g. 0.5 m to 5.0 m) which would be difficult to incorporate and represent statistically using downhole

composites of equal lengths (e.g. 0.5, 1.0 m or 2.0 m);

• Varying mineralisation geometry across lode, down dip, and along strike; and

• Block size required for adequate volume fill of narrow geometry is generally too small, introducing conditional bias

to the MRE outcome.

Key assumptions for this estimation approach, which were tested and met prior to implementation of this approach,

were:

• Intrinsic correlation between grade and length;

• Homogeneity, and thus stationarity, within the mineralised domain; and

• Non-selective mining within the mineralised vein. The entire vein width is likely to be extracted during the mining

process and selectively mining portions of the vein, across the width, is unlikely.

The 2D interpolation approach utilised for the MRE varies from a three-dimensional approach (3D) in that estimation of

both an accumulation variable (intercept gold composite multiplied by true width) and the true width variable, is

undertaken in a 2D plane using identical variogram and search parameters to ensure consistency for subsequent back-

calculation of gold block grades.

16 | P a g e

The gold accumulation variable was assessed for statistical and spatial outliers. Top capping, where appropriate, were

applied as outlined below:

• ABC Reef. Top Cap of 130 Gold Accumulation and 1.37% metal reduction;

• D Reef. Top Cap of 85 Gold Accumulation and 3.0% metal reduction;

• Harrier. Top Cap of 5 Gold Accumulation and 13.75% metal reduction; and

• Condor. Top Cap of 70 Gold Accumulation and 2.71% metal reduction.

Geostatistical analysis was undertaken using a combination of IsatisTM and SupervisorTM software on the capped gold

accumulation variable for each of the mineralisation lodes with robust variogram models delineated for ABC Reef, D Reef

and Harrier. Estimation cell size and search neighbourhoods were optimised with Qualitative Kriging Neighbourhood

Analysis.

Taking into consideration; mineralisation domain continuity and confidence; statistical and spatial analysis outcomes;

available drill hole data and spacing, and potential extraction methodologies the following dual interpolation

methodologies were implemented;

• ABC Reef, D Reef and Harrier. Capped gold accumulation and true width variables were interpolated using

Ordinary Kriging within in 10 m x 10 m parent cell blocks,

• Condor, Crow, and G Reef. Capped gold accumulation and true width variables were interpolated using Inverse

Distance Cubed within 5 m x 5 m parent cell blocks.

Once the 2D interpolation was validated, block centroid data was transformed into 3D space and imported into a 3D block

model. The 3D block model was coded with density, depletions, weathering and classification prior to global, local,

statistical, and visual validations and evaluation for resource reporting.

Classification Approach and Mineral Resource Constraints

Mineral Resources were classified to appropriately represent confidence and risk with respect to geological and grade

continuity, mineralisation volumes, and metal distribution.

Primary considerations in defining criteria for Indicated and Inferred Mineral Resources included the following:

• Mineralisation continuity and volume models;

• Mineralisation continuity and preferential orientation of high grade shoots;

• Drill hole spacing and drill data quality;

• Recent and historical mining activity;

• Modelling technique; and

• Estimation properties including search strategy, number of composites, average distance of composites from

blocks, and kriging quality parameters such as slope of regression.

Indicated Mineral Resources were defined where a moderate level of geological confidence in geometry, continuity, and

grade was demonstrated, and were identified as areas where:

• Blocks were well supported by drill hole data, with drilling averaging a nominal 20 m or less between drill holes;

and

• Estimation quality was considered reasonable, as delineated by a slope of regression above 0.6.

• Inferred Mineral Resources were defined where a low level of geological confidence in geometry, continuity, and grade

was demonstrated, and were identified as areas where:

• Drill spacing was averaging a nominal 40 m or less, or where drilling was within 50 m of the block estimate; and

• Estimation quality was considered low, as delineated by a conditional bias slope between 0.2 to 0.6.

The reported underground Mineral Resource for ABC Reef, D Reef and Harrier was constrained at depth by available drill

hole spacing, nominally 245 m to 300 m below topographic surface. Upper limit constraints on the underground Mineral

17 | P a g e

Resource were demarcated by base of depletion voids (i.e. floor of historical open pit) and 50 m below topographic

surface to the south-east, 40 m to the north-west of depletion voids.

The reported open pit Mineral Resource for Condor, Crow and G Reef was constrained at depth by available drill hole

spacing, nominally 60 m to 90 m below topographic surface. An upper limit was defined by a topography surface given

the assumption these would be potentially extracted via open pit mining methods.

Cut-Off Grade

The Mineral Resource cut-off grade for reporting of underground global gold resources for ABC Reef, D Reef and Harrier

was 2.0 g/t gold. This was based upon conceptual economic evaluations and extraction methodologies utilised in

comparable size deposits of similar mineralisation style and tenor.

The Mineral Resource cut-off grade for reporting of open pit global gold resources for Condor, Crow and G Reef was 0.5

g/t gold. This was based upon reporting standards previously utilised at Golden Gate for Open Pit resources.

Assessment of Reasonable Prospects for Eventual Economic Extraction

Entech assessed the Golden Gate MRE, as reported, to meet Reasonable Prospects for Eventual Extraction based on the

following considerations.

Mining

It was assumed that the Mineral Resources for ABC Reef, D Reef and Harrier could be potentially mined via medium to

small scale mechanised underground mining methods. This assumption was based on conceptual economic evaluations

and extraction methodologies utilised in comparable size deposits of similar mineralisation style and tenor.

The underground Mineral Resource extends up to 300 m below topographic surface. Entech considers material at this

depth suitable to have a reasonable prospect of eventual economic extraction within an underground mining framework.

It was assumed that the Mineral Resources for Condor, Crow and G Reef would be suitable for economic extraction via

conventional open pit mining methods. The open pit Mineral Resource extends up to 90 m below topography surface.

Entech considers material at this depth suitable to have a reasonable prospect of eventual economic extraction within an

open pit mining framework. These assumptions were based upon planned and historical open pit depths and mining

methodologies currently in use at MOY’s Nullagine operation.

Metallurgy

The Golden Gate Oxide Mineral Resources average a recovery of 60 to 80% within the existing operations processing

plant.

The Golden Gate Fresh Mineral Resources average a recovery of 40% within the existing operations processing plant.

Entech understands MOY do not plan to process Golden Gate Fresh Mineral Resources through existing processing

infrastructure.

A ‘Trade Off’ study is currently underway to assess several processing options which will improve recovery of Fresh

resources, from which a decision to determine eventual processing plan for Golden Gate Mineral resources will be made.

Entech understands two proposed options currently within the ‘Trade Off’ study include either a Flotation plant, or a

Modular concentrating circuit on the tail end of existing CIL plant.

The following report was relied upon by Entech for determining metallurgical amenability and reasonable prospects for

eventual economic extraction with respect to the reported Mineral Resources if processed through a proposed Flotation

Plant. Millennium Minerals Ltd, Gold Sulphide Project Scoping Study, CP1230-GN-RP-001_B, 16th September 2017 by DRA

Pacific Pty Ltd. Entech derived the following points from this report:

• Fresh ore at ABC Reef, D Reef and Harrier is refractory;

• Fresh ore at Condor, Crow, G Reef is currently untested and considered high risk of being refractory;

• Recoveries on Golden Eagle and Golden Gate fresh ore, within a proposed flotation plant extraction process are estimated to be in the range +85%.

18 | P a g e

Assumed recoveries on Golden Gate Fresh ore through the combination of existing processing infrastructure and

proposed Modular concentrating circuit (tails) is expected to be within the range of +65%. No test-work of Golden Gate

fresh material with the proposed processing methodology was available at the time of this report. Recovery assumptions,

provided in verbal discussions with MOY, were relied upon by Entech for determining metallurgical amenability and

reasonable prospects for eventual economic extraction with respect to the reported Mineral Resources.

Golden Gate Mineral Resources were reported and considered reasonable prospects for eventual economic extraction

based on the assumption that they will be treated through either:

• Flotation plant (outlined in the DRA report) with expected recoveries of 85% and above,

• Modular concentrating circuit (tails) with expected recoveries averaging +65%.

Infrastructure for processing within a Flotation OR Modular concentrating circuit (tails) process are currently not part of

the processing plant infrastructure at Millennium’s Nullagine operations. Entech have assumed appropriate processing

infrastructure will be commissioned for treatment of Golden Gate Fresh Mineral Resources.

Arsenic and Sulphur were correlated with recoveries, however insufficient assay data was available to quantify and

estimate within this MRE.

No recovery factors have been applied to the Mineral Resources or Resource Tabulations.

END

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Appendix 2 – Entech Executive Summary – Bartons Underground Gold Mineral

Resource Estimate

EXECUTIVE SUMMARY

BARTONS UNDERGROUND GOLD MINERAL RESOURCE UPDATE

Mineral Resource Statement

This update to the Mineral Resources Statement for Bartons Underground Mineral Resource Estimate (MRE) is reported

according to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC

Code’) 2012 edition.

In the opinion of Entech, the resource evaluation reported herein is a reasonable representation of the global

underground gold insitu Mineral Resources within the Bartons deposit. It is based upon Reverse Circulation and Diamond

Drilling sampling data available as of 15th November 2017 and is exclusive of all mined material.

Table 1.2 Bartons Underground Mineral Resources at a 2.0g/t gold cut-off, by Resource Category.


Gold Grade (g/t)


Indicated 407.4 5.6 72.9

Inferred 219.9 3.5 25.0

Total 627.3 4.9 97.9


Interpretations were predominantly informed by Reverse Circulation drilling (898 holes), with infill Diamond Drilling (30

holes inclusive of diamond tails), for 4,850 m of drilling intersecting mineralisation and a total of 58,171 m of drilling. The

MRE contained all drill hole data available at 15th November 2017.

This MRE comprises Inferred Mineral Resources which are unable to have economic considerations applied to them, nor

is there certainty that they will be converted to Measured or Indicated Resources through further sampling.

The MRE was depleted for all open pit mining activity, surveyed up to the 30th of November 2017.

Drilling Techniques

• Reverse circulation (RC) drilling was carried out with a 5.5 inch face-sampling bit.

• Diamond HQ3 triple tube drilling was used for GGMET010 and GGMET011 diamond holes.

Sampling and Sub-Sampling Techniques

Samples for the updated MRE were collected through a combination of RC and diamond core drilling. For RC drilling the

material from each metre was split through a rig mounted cone splitter to produce a sample that nominally weighed

between 2.5 kg to 3.5 kg. This sample was submitted to the laboratory for analysis. HQ3 and NQ2 sized diamond core was

drilled, orientated, marked up and logged. Sample intervals for the diamond core were based upon geological boundaries

with a minimum sample interval of 0.3 m. The core samples that were selected for analysis were cut in half with a core-

saw with the half core sample submitted to a certified laboratory.

20 | P a g e


Laboratory samples were crushed (diamond core) and ground to 85% passing 75 microns. A sub-sample of 50 g was taken

from the ground material for Fire Assay with an Atomic Absorption Spectroscopy (AAS) finish to get the total

determination of gold. Commercially prepared, predominantly matrix-matched low, medium & high value certified

reference Quality Assurance and Quality Control (QAQC) standards were inserted at a rate of 1 in 50 into the sample

stream.

Domaining Approach

Interpretations of domain continuity were initially undertaken within Geovia SurpacTM software, with mineralisation

intercepts correlating to the Main and East Lodes manually selected prior to creation of a vein model within Leapfrog

implicit modelling software. Interpretation was a collaborative process with Millennium Minerals Ltd (MOY) Geologists to

ensure modelling appropriately represented site-based observations and current understanding of geology and

mineralisation controls.

Mineralisation volume domains were delineated using a combination of:

• Geological information. Comprising of logged quartz percentage and alteration halo;


mineralisation sample population as well as visual review of the mineralisation tenor and strike, and dip continuity.

• Historical underground mining documentation, mapping, stope void locations, preferential orientations, and

widths.

For instances where the intercept gold value fell below the nominal cut-off but was supported by geological indicators

(quartz and alteration), the intercept was included to maintain domain homogeneity and represent the structural

continuity evident in surface mapping, pit observations, historical mapping, and stoping.

Using this approach two narrow sub-parallel mineralised lodes were modelled within the Bartons Main Lode (Main Lode

Hangingwall and Main Lode Footwall) along with an encompassing low-grade Halo domain, trending north-east and

dipping steeply to the south-east. Two further domains, East Lode and a minor footwall splay of East Lode, were modelled

as a splay from the Bartons Main Lode, trending east-north-east and dipping steeply to the south-east. All reported

mineralised domains were considered to be within fresh material, based on MOY supplied weathering surfaces and drill

hole logging data.

Estimation Approach

A two dimensional (“2D”) Ordinary Kriging interpolation approach was selected for the lodes exclusive of the Main Lode

Halo to address some of the main issues encountered when estimating narrow vein mineralisation, such as those at

Bartons, which were:

• Additivity issues due to non-uniform support and resulting grade bias. Instances of highly variable individual

intercepts (e.g. 0.1 m to 4.5 m) which would be difficult to incorporate and represent statistically using downhole

composites of equal lengths (e.g. 0.5 m, 1.0 m, or 2.0 m);

• Varying mineralisation geometry across lode, down dip, and along strike.

Key assumptions for this estimation approach, which were tested and met prior to implementation of this approach,

were:

• Intrinsic correlation between grade and length;

• Homogeneity, and thus stationarity, within the mineralised domain; and

• Non-selective mining within the mineralised vein. The entire vein width is likely to be extracted during the mining

process and selectively mining portions of the vein, across the width, is unlikely.

The 2D interpolation approach utilised for the MRE varies from a three-dimensional approach (“3D”) in that estimation of

both an accumulation variable (intercept gold composite multiplied by true width) and the true width variable, is

undertaken in a 2D plane using identical variogram and search parameters to ensure consistency for subsequent back-

calculation of gold block grades.

21 | P a g e

The gold accumulation variable was assessed for statistical and spatial outliers with top caps applied to each domain

outlined below:

• Main Lode FW. Top Cap of 100 Gold Accumulation and 0.38% metal reduction;

• Main Lode HW. Top Cap of 100 Gold Accumulation and 25.07% metal reduction. It should be noted that for the

Main Lode HW only one single extreme sample was capped;

• East Lode. Top Cap of 100 Gold Accumulation and 4.60% metal reduction.

Geostatistical analysis was undertaken in IsatisTM software on the capped gold accumulation variable for each of the three

main mineralisation lodes with robust variogram models delineated and search neighbourhoods optimised by Qualitative

Kriging Neighbourhood Analysis (QKNA).

Ordinary Kriging (OK) of capped gold accumulation and true width variables for Main Lode FW, HW and East Lode was

undertaken in 10 m x 10 m parent cell blocks, within Geovia SurpacTM software. Once the 2D interpolation was optimised

and validated, block centroid data was transformed into 3D space and imported into a 3D block model.

A 3D OK interpolation approach utilising Dynamic Anisotropy was selected for the Main Lode Halo. Assessment and

application of top-capping for the 3D estimate was undertaken on the gold variable within the halo domain. A top cap of

10 g/t Au was selected and represents a 0.21% metal reduction. Variography analysis of the halo domain was undertaken

on gold, followed by QKNA to assist with determining appropriate search parameters.

The 3D block model was coded with density, depletions, and classification, prior to global, local validations and evaluation

for resource reporting.

Classification Approach and Resource Constraints

Mineral Resources were classified to appropriately represent confidence and risk with respect to geological and grade

continuity, mineralisation volumes, and metal distribution.

Primary considerations utilised in defining criteria for Indicated and Inferred Mineral Resources included:

• Mineralisation continuity and volume models;

• Mineralisation continuity and preferential orientation of high grade shoots;

• Drill hole spacing and drill data quality;

• Recent and historical mining activity;

• Modelling technique; and

• Estimation properties including search strategy, number of composites, average distance of composites from

blocks, and kriging quality parameters such as slope of regression.

Indicated Mineral Resources were defined where a moderate level of geological confidence in geometry, continuity and grade was demonstrated, and were identified as areas where:

• Support from drilling is good – where drilling was within 20 m of a block estimate and with greater than six

informing samples; and

• Estimation quality was considered reasonable, as delineated by a conditional bias slope above 0.6.

Inferred Mineral Resources were defined where a low level of geological confidence in geometry, continuity, and grade, was demonstrated, and were identified as areas where:

• Drill spacing was averaging a nominal 40 m or less, or where drilling was within 40 m of the block estimate; and

• Estimation quality was considered low, as delineated by a conditional bias slope between 0.3 to 0.6.

22 | P a g e

The reported Mineral Resource for underground was constrained at depth by the available drill hole spacing outlined for

Inferred classification, nominally 220 m below surface. Upper limit constraints on the Mineral Resources were

demarcated by Life of Mine (LOM) pit design and 40 m below topographic surface to the north, 60 m to the south of LOM

pit designs.

This update to the Bartons global gold Mineral Resource comprises an increase of 17,500 oz from the Maiden Mineral

Resource Estimate (release by MOY on 7th August 2017). This increase is predominantly due to:

• Recent infill drilling with Diamond and Reverse Circulation.

• Redesign of the Bartons Life of Mine pit which contributed 5,700 oz to the MRE increase.

Cut-Off Grade

The Mineral Resource cut-off grade for reporting of underground global gold resources at Bartons was 2.0 g/t gold. This

was based upon conceptual economic evaluations, and consideration of comparable size deposits of similar

mineralisation style and tenor.

Assessment of Reasonable Prospects for Eventual Economic Extraction

Entech assessed the Bartons underground MRE, as reported, to meet Reasonable Prospects for Eventual Extraction based

on the following considerations.

Mining

It was assumed that Bartons could be potentially mined via medium to small scale mechanised underground mining

methods. This assumption was based on conceptual economic evaluations and extraction methodologies utilised in

comparable size deposits of similar mineralisation style and tenor.

The underground Mineral Resource extends up to 220 m below topographic surface. Entech considers material at this

depth suitable to have a reasonable prospect of eventual economic extraction within an underground mining framework.

Metallurgy

Entech relied upon recent in-house (MOY) metallurgical studies to assess metallurgical amenability of Bartons Mineral

Resources.

Metallurgical studies undertaken on recent drilling data (143 samples) indicated a gold recovery in fresh sulphide ‘ore’

material ranging from 57.7% to 99.7% from leachwell analysis. The average gold recovery for fresh material beneath the

current pit design is 85%.

Recent test work has indicated recoveries may be affected by a combination of graphitic shales and gold bound within

arsenopyrite. Test work is ongoing and optimisation studies are underway at the time of this report.

Entech understands Bartons MRE ‘Fresh’ material can be treated within the existing plant infrastructure with expected

recoveries averaging 85%.

Future MRE updates should include estimation of Arsenic variable and geological interpretation of graphitic shale

location, volumes to assist in metallurgical management at Bartons.

No metallurgical recovery factors have been applied to the Mineral Resources or Resource Tabulations.

No dilution or cost factors have been applied to the estimate.

END

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Appendix 3 – Little Annie Mineral Resource Estimation Methodology

Geology

Stratigraphy contains mixed sandstone/siltstone units. Quartz veins have been noted in the drill hole logging. The only drilling at the deposit has been by RC, so the geometry of the bedding within alternate lithological units cannot be ascertained. Sparse subcrop suggests that the lithology strike east-north-east.

Four mineralised lodes have been interpreted at the deposit, striking NE at approximately 36° over a strike length of 540m. The lodes dip steeply at 85° to the NW.

Drilling

The Little Annie database includes 116 RC and 34 RAB drill holes for a total of 9,380m. A total of 40 of the RC holes define the resource for a total of 214 intersection metres.

Sampling and Sub-sampling Techniques

RC drilling was carried out using a 5.5-inch face sampling bit. Samples were collected at 1m intervals through a cyclone and

cone splitter to form a 2-3kg sub-sample.


RC and diamond core sub-samples were analysed at ALS Laboratories, Perth, Western Australia. Samples were crushed,

fully pulverised at the laboratory to >85% passing 75um, to produce a 50g charge for Fire Assay with AAS finish.

Estimation Methodology

A block model was created using Surpac software to encompass the adjacent Mundalla and Shearers North deposits. A

parent block size of 5m NS by 5m EW by 5m vertical with sub-blocking to 1.25m by 1.25m by 2.5m. The parent block size

was selected based on the results of a kriging neighbourhood analysis and represents a spacing that is 50% of the closest

drill spacing at the deposits.

Mineralisation boundaries were interpreted based upon existing resource ore solids and grade control wireframes and

altered to an approximate 0.5 Au ppm Cut-off. Ordinary kriging (OK) was used for the grade interpolation and the

wireframes were used as a hard boundary for the grade estimation of each domain. That is, only grades inside each lode

were used to interpolate the blocks inside the lode. Check estimates using inverse distance squared (ID2) and nearest

neighbour (NN) interpolations were run to compare against the OK estimate.

An ‘ellipsoid’ search orientated to reflect the geometry of the individual lodes was used to select data for interpolation. The

search ellipse was based on the kriging parameters but adjusted to reflect the local changes in each of the minor lodes.

Three search passes were used to estimate blocks within the model. A first pass search range of 30m was used with a

minimum of 6 samples and a maximum of 20 samples. The search range was doubled to 60m and then 120m, and the

minimum number of samples reduced to 4 and then 2 (or retained at 4) for successive passes.

No SG data was available for the Little Annie deposit at time of estimation. Bulk density samples were categorised into

oxide or fresh using the weathering profile. The bulk density values applied were based on observations taken at

neighbouring deposits of similar tenor. Average values were applied for oxide, transitional, and fresh material. These values

were 2.20t/m3, 2.40t/m3, and 2.65t/m3 respectively.

High grade cuts ranging from 1.5g/t to 3.5g/t Au were applied to individual domains which resulted in a total of 32

composites being cut.

Mineral Resource Classification

The deposit is a linear series of lodes based on predominantly 20m spacing along strike through the main lode, although

limited drilling (three holes) has been conducted on each section. This has created uncertainty in the interpretation on

some sections. A wider drill spacing of 40m by 20m occurs at the western end of the deposit and defines Domain 3. The

entire deposit has been classified as Inferred Mineral Resource based on data quality, drill spacing, lode continuity and

geometry.

24 | P a g e

Cut-off Grades

The Mineral Resource has been reported at a 0.5g/t Au lower cut-off to reflect assumed exploitation by open pit mining.

MOY has considerable experience mining similar style deposits across the Nullagine Project area.

Metallurgy

Preliminary test work indicates that Oxide and Transition are free milling.

Modifying Factors

No modifying factors were applied to the reported Mineral Resource estimate.

END

25 | P a g e

Appendix 4 – Au81 West Mineral Resource Estimation Methodology

Geology

The Au81 West deposit is located on the Middle Creek Line of workings, approximately 3km east-north-east of the Golden

Eagle deposit and 2km from the processing plant. The stratigraphy is dominated by deeply weathered massive sandstone

and mixed sandstone / siltstone dominated units. Bedding is striking at around 60 degrees but with local variations. The

Middle Creek Fault occurs south of the deposit and appears to truncate the mineralisation to the south.

The deposit consists of a main lode that has a strike length of over 800 metres and dips at about 60 degrees west and strikes

at around 015 degrees. The true thickness of the main lode varies in thickness from 2 to 5 metres. The mineralisation is still

open to the north and at depth. There are sporadic high grades that may be associated with cross cutting structures.

Drilling

The database covering both Au81 and Au81 West deposits includes records for 826 RC and 134 RAB drill holes, and four

diamond holes for a total of 45,389.4m. A total of 1,010 intersection metres define the resource. All of the RAB and ARC0001

to ARC0153 (RC holes with poor locational accuracy) were excluded from the estimate.


RC drilling was carried out using a 5.5-inch face sampling bit. Samples were collected at 1m intervals through a cyclone and

cone splitter to form a 2-3kg sub-sample. NQ2 diamond core was sampled to geological boundaries. A core saw was used

to cut the core in half with half core submitted for Au analysis. For metallurgical HQ3 diamond core, the sampling was

carried out to geological boundaries. A core saw was used to quarter one side of the core with one quarter submitted for

Au analysis, selected half core submitted for metallurgical test work and the remaining quarter core was kept for reference.


RC and diamond core sub-samples were analysed at ALS Laboratories, Perth, Western Australia. Samples were crushed

(core), fully pulverised at the laboratory to >85% passing 75um, to produce a 50g charge for Fire Assay with AAS finish.


A block model was created using Surpac software to encompass the adjacent Mundalla and Shearers North deposits. A

parent block size of 5m NS by 5m EW by 5m vertical with sub-blocking to 1.25m by 1.25m by 2.5m. The parent block size

was selected based on the results of a kriging neighbourhood analysis and represents a spacing that is 50% of the closest

drill spacing at the deposits.

Mineralisation boundaries were interpreted based upon existing resource ore solids and grade control wireframes and

altered to an approximate 0.5 Au ppm Cut-off. Ordinary kriging (OK) was used for the grade interpolation and the

wireframes were used as a hard boundary for the grade estimation of each domain. That is, only grades inside each lode

were used to interpolate the blocks inside the lode. Check estimates using inverse distance squared (ID2) and nearest

neighbour (NN) interpolations were run to compare against the OK estimate.

An ‘ellipsoid’ search orientated to reflect the geometry of the individual lodes was used to select data for interpolation. The

search ellipse was based on the kriging parameters but adjusted to reflect the local changes in each of the minor lodes.

Three search passes were used to estimate blocks within the model. A first pass search range of 25-30m was used with a

minimum of 6 samples and a maximum of 20 samples. The search range was doubled to 50-60m and then 100-120m, and

the minimum number of samples reduced to 4 and then 2 (or retained at 4) for successive passes.

Bulk density results were derived from 4 diamond holes using an immersion method. The samples were categorised into

oxide, transitional or fresh using the weathering profile and then averaged values were applied to the block model. Average

values were applied for oxide, transitional, and fresh material. These values were 1.93t/m3, 2.15t/m3, and 2.59t/m3

respectively. A bulk density of 1.80t/m3 was applied to the small amount of cover present.

High grade cuts ranging from 2.5g/t to 6.2g/t Au were applied to individual domains which resulted in a total of 50

composites being cut.

26 | P a g e


The deposit is a series of parallel quartz reefs and correlates well with observations within sections. This allows a robust

interpretation to be made with confidence. It has been tested with a large number of quality drill holes, in most places on

a 20 x 20 metre grid and 20 x 10 metre grid, using good sampling and assaying procedures. Resource categories have been

applied to the estimation on the basis of drill density, the slope of regression, kriging variance and the anisotropic distance

to the nearest sample.

Cut-off Grades

The Mineral Resource has been reported at a 0.5g/t Au lower cut-off to reflect assumed exploitation by open pit mining.

MOY has considerable experience mining similar style deposits across the Nullagine Project area.

Metallurgy

The Oxide components of the ore feed have been mined previously by Millennium Minerals. For the sulphide material

below the currently designed oxide pits, an increase of 50% has been applied to the current recoveries. This improvement

is based on the recovery improvements of the Golden Eagle Ore (which has poorer Metallurgical recoveries), but no

metallurgical test work has been completed thus far. Test work is currently being planned

Modifying Factors


END

27 | P a g e

Appendix 5 – Shearers North and Mundalla Mineral Resource Estimation Methodology

Geology

The Stratigraphy at Shearers North contains mixed sandstone/siltstone units along with thinner shale beds. Quartz veins

have been noted in the drill hole logging. The only drilling at Shearers North has been by RC so the orientation of bedding

of the units cannot be accurately determined.

The Mundalla area is structurally complex with the interpreted northern extension of Shearers structure on the western

end of the prospect. Earlier north-east and north-west trending veins are cut by the north trending veins/ faults. The timing

and relationship of the east-west mineralised zones is unknown, but they may have developed as a conjugate set to the

north trending zones. The geology of the deposit consists largely of sandstones intercalated with shales.

Three main lodes of mineralisation have been interpreted at the Shearers North deposit, striking NE at approximately 32°

over a strike length of 600m. The lodes dip steeply at 78° to the NNW. Minor lodes have been interpreted parallel to the

main lodes with similar dips.

Gold mineralisation at Mundalla is hosted by quartz veins and selvedge in a number of orientations. The major trends in

order of priority are; North South, East West, North East, and North West. Mineralisation appears to be predominantly

hosted by sandstone, but shales are also mineralised.

East-west stringer zones were previously mined underground via shafts. The northern shaft was developed within the lode

that was believed to be vertical. To date drilling has failed to locate significant mineralisation associated with this trend and

the historic workings.

Subsequently, costean and surface samples identified north-east and north-west trending mineralisation zones that were

drilled with both RAB and RC methods. Rock sampling on the south-western portion of the north-east trending zone failed

to return any significant results but subsequent drilling identified significant mineralisation that dips to the northwest. This

has been attributed to surface sampling conducted on the massive prominent quartz vein, but the actual mineralised zone

occurs on the sheared/brecciated margins of it. Northwest striking mineralisation has manifested itself in outcropping vein

to the west of the shafts.

Drilling

The Mundalla and Shearers North data includes records for 347 RC and 50 RAB drill holes, and one diamond hole for a total of 23,356m. A total of 169 holes define the resource for a total of 293 intersection metres.


RC drilling was carried out using a 5.5-inch face sampling bit. Samples were collected at 1m intervals through a cyclone and cone splitter to form a 2-3kg sub-sample. NQ2 diamond core was sampled to geological boundaries. A core saw was used to cut the core in half with half core was submitted for analysis.


RC and diamond core sub-samples were analysed at ALS Laboratories, Perth, Western Australia. Samples were crushed (core), fully pulverised at the laboratory to >85% passing 75um, to produce a 50g charge for Fire Assay with AAS finish.


A block model was created using Surpac software to encompass the adjacent Mundalla and Shearers North deposits. A parent block size of 5m NS by 5m EW by 5m vertical with sub-blocking to 1.25m by 1.25m by 2.5m. The parent block size was selected based on the results of a kriging neighbourhood analysis and represents a spacing that is 50% of the closest drill spacing at the deposits.

Wireframes were prepared using a nominal 0.5g/t Au envelope. Ordinary kriging (OK) was used for the grade interpolation and the wireframes were used as a hard boundary for the grade estimation of each domain. That is, only grades inside each lode were used to interpolate the blocks inside the lode. Check estimates using inverse distance squared (ID2) and nearest neighbour (NN) interpolations were run to compare against the OK estimate.

An ‘ellipsoid’ search orientated to reflect the geometry of the individual lodes was used to select data for interpolation. The search ellipse was based on the kriging parameters but adjusted to reflect the local changes in each of the minor lodes.

28 | P a g e

Three search passes were used to estimate blocks within the model. A first pass search range of 30m was used with a minimum of 6 samples and a maximum of 20 samples. The search range was doubled to 60m and then 120m, and the minimum number of samples reduced to 4 and then 2 (or retained at 4) for successive passes.

Bulk density analyses were conducted on half core samples, using the water immersion method. No determinations were carried out at Mundalla or Shearers North, therefore values have been used from the adjacent Shearers Deposit. Bulk density samples were categorised into oxide, transitional or fresh using the weathering profile and then averaged values were applied to the block model. Average values were applied for oxide, transitional, and fresh material. These values were 2.31t/m3, 2.38t/m3, and 2.50t/m3 respectively.

High grade cuts ranging from 2.0g/t to 6.6g/t Au were applied to individual domains which resulted in a total of 69 composites being cut.


The deposit has been classified based on data quality, drill spacing, lode continuity and geometry, and kriging parameters such as slope of regression and kriging variance. The deposit has been classified as Indicated and Inferred Mineral Resource. The Indicated Mineral Resource has been applied to the majority of the main lode defined by 20m by 20m spaced drilling, having good grade continuity, and block estimates having a slope of regression greater than 0.7.

Cut-off Grades

The Mineral Resource has been reported at a 0.5g/t Au lower cut-off to reflect assumed exploitation by open pit mining. MOY has considerable experience mining similar style deposits across the Nullagine Project area.

Metallurgy

No metallurgical test work has been completed at the deposit. Test work is currently being planned.

Modifying Factors


END

Appendix 6 – JORC 2012 Edition – Table 1

JORC 2012 Edition - Table 1 Section 1 Sampling Techniques and Data

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.

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

• Aspects of the determination of mineralisation that are Material to the Public Report.

• 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.

• No surface samples were used in the estimation of Mineral Resources or Ore Reserves.

• Reverse circulation drilling (and more rarely diamond core drilling) was used to obtain samples, from which approximately 3 kg was dried, crushed, pulverised and subsampled at the laboratory to produce a 50 g charge for fire assay, as per industry standard methods.

• Recent RC Sampling was carried out under Millennium protocols and QAQC procedures, as per industry best practice (field & lab duplicates, blanks & certified reference standards). 1 m interval RC samples were sub-sampled to 3 kg by a rig-mounted cone or riffle splitter under Millennium’s supervision.

• Both NQ and HQ3 sized core was drilled. Core sampling was carried out to geological boundaries with a minimum sample intervals of 0.3m. The core was cut in half with half core submitted for analysis. Rarely, quarter core was submitted for Au analysis and the other half for metallurgical test work.

Where twinned core holes were drilled for metallurgical test work, the core was sampled in predominantly 1m intervals, except in the case of contacts (minimum interval 0.3m).

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 (RC) drilling and Diamond (HQ3 and NQ3) triple tube drilling was used; Mineral Resources were estimated using predominantly RC drilling samples.

• All core was oriented, using Reflex Act II electronic orientation device (Bottom of hole orientation).

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.

• A record of RC sample recovery % and moisture content was recorded by field assistants under supervision of the rig geologist. Check weights were done periodically at the rig. Overall sample weight and quality were good to very good (2.0-3.5 kg).

• ALS (assay lab since mid-2011) also records sample weights on receipt of samples.

• The rig geologist closely monitored the rig to ensure all the sample was collected in the calico bag prior to removal from the cyclone splitter, and


action taken if sample weights showed marked variation.

• Core recoveries from diamond drilling were generally >98%.

• There is no observed correlation between sample recovery and gold grade.

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.

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

• The logging has been validated and is regarded as being comprehensive and of good quality.

• Geological logging is both qualitative and quantitative in nature. Whilst drilling the lithology, colour, grain size, regolith, alteration, weathering, veining and mineralisation were recorded. Sulphide and vein content were logged as a percentage of the interval. Photography has been taken of the diamond drill core.

• RC chip trays are retained at site.

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.

• For core samples, the core was cut using a core saw with half core submitted for analysis. For metallurgical holes ¼ core samples assayed; ¼ core was retained onsite, and ½ core was used for metallurgical testing.

• The RC samples were split using a rig mounted, levelled cone splitter. The vast majority of the samples were dry with moist and wet samples recorded on the sampling sheet.

• The sample preparation followed industry best practice in sample preparation involving oven drying, crushing (core) and pulverisation of the entire subsample (total prep), and LM5 grinding to a grind size of 85% passing 75 micron.

• The sample sizes are industry-standard and considered to be appropriate to correctly represent mineralisation at the deposits based on: the style of mineralisation, the thickness and consistency of the intersections, the sampling methodology and assay ranges for gold.

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 (i.e. lack of bias) and precision have been established.

• The industry best practice standard assay method of 50g charge Fire Assay for this style of mineralisation was employed.

• Commercially prepared, predominantly matrix-matched blanks, low, medium & high value certified reference QAQC standard, blanks, assay laboratory and field duplicate samples were inserted at a rate of 1:20 into the sample stream

• The QAQC results from this protocol were considered to be acceptable.

• No geophysical tools were used to determine any element concentrations used for these results.

• Sample preparation checks for fineness were carried out by the laboratory as part of their internal procedures to ensure the grind size of 85% passing 75


micron was being attained. Laboratory QAQC involves the use of internal lab standards using certified reference material, blanks, splits and replicates as part of the in house procedures.

• Results highlight that sample assay values are accurate, and that contamination has been contained.

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.

• Metallurgical holes were drilled and assayed at all deposits; these were twinned to RC holes to provide confirmation of the grade within sampled intervals and geological relationships.

• A Senior Exploration Geologist from Millennium has visually verified the significant intersections using material collected in the RC chip trays.

• All significant intersection calculations were cross checked by the Exploration Manager.

• Assay results were not 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.

• Immediately post hole completion, a handheld GPS coordinate was taken, then subsequently the collars surveyed with a real Time Kinematic (RTK) DGPS device to a ±10mm positional precision. All collars were then validated against planned positions as a cross check. Surveyed collar co-ordinates were uploaded into the Company SQL database.

• Grid datum is GDA94 51K (East Pilbara).

• Downhole surveys were completed on all holes at 30m maximum downhole intervals (initial survey at 10m downhole). Surveys were magnetic via electronic multi-shot survey tool (Camprodual or Camteq), as lithologies have negligible magnetic susceptibility (greywacke). Re-surveying was carried out to check the quality of measurements. Selective gyroscopic surveys were undertaken on the deeper holes to confirm the trajectory. Where taken the gyroscopic surveys were used in preference to the electronic multi-shot surveys.

• Aerial Photogrammetry± LIDAR was produced by Fugro Surveys (±0.2m vertical & ±0.1m horizontal). Survey control points were marked out by licensed surveyor for the Fugro Survey. An error was noted in early RC drilling collar RL co-ordinates (ellipsoid not geoid model); these holes were adjusted to the Fugro DTM surface RL and recorded as DTM RL in the SQL database; the original survey RL was retained. The DTM RL was used for Mineral Resource estimation. Otherwise there was good agreement of surveyed collars and Fugro DTM.


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.

• RC drilling is predominantly on 20 X 20m to 10x10m spacing in all the deposits both along strike and down dip; this grades to 30 - 40m spacing at depth (generally below current pit designs) or along deposit margins. The Mineral Resource consultants consider this sufficient to meet the expected minimum requirements for resource classification (Measured typically 10-20m). Thus far the 20m by 20m spacing has been sufficient to establish geological and grade continuity.

• 1m RC assay composites were used. A small number of core composites were retained with a length of less than 1m (minimum 0.3m).

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.

• Geological mapping and structural measurements have been taken at the deposit and they confirm the orientation of mineralisation defined by the drilling. Based upon the above information the drilling was largely perpendicular to the mineralisation with some exceptions. This was due to steep and inaccessible terrain that meant holes needed to be drilled slightly oblique to the mineralisation to intersect the desired target.

• No significant orientation bias has been identified in the data at this point.

Sample security

• The measures taken to ensure sample security. • Samples were given an ID, cross checked by field personnel that the interval assigned was matched, packed and then the geologist on the rig will check sample ID. The laboratory assigned the same sample ID to the pulps and checking against geology, alteration and further use of QAQC to confirm data ID.

• Samples were collected on completion of each hole and stored in a secure shed prior to dispatch to the assay laboratory.

• Monitoring of sample dispatch is undertaken for samples sent from site and to confirm that samples have arrived in their entirety and intact at their destination.

• Sample security is managed with dispatch dates noted for each sample by the core technician, this is checked and confirmed at the laboratory on receipt of samples and discrepancies are corrected via telephone link up with laboratory and Supervising Geologist

Audits or reviews

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

• Internal lab audits conducted by Millennium have shown no material issues.

• Sampling and data protocols have been externally audited by CSA Global with no matters that were serious or were likely to impair the validity of the Mineral Resource estimate.

Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.)


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.

• All the deposits and prospects lie within fully granted Mining Leases within the Pilbara Gold Field (46), as detailed below. All the tenements are in good standing with no known impediments.

• Agate^+ - M46/265 (100% Millennium)

• All Nations* –M46/98+, M46/199+, M46/225+ & M46/442@ (100% Millennium);

• Anne de Vidia^+- M46/262 (100% Millennium);

• Angela^+ - M46/186 (100% Millennium);

• Au81^ –M46/138# (100% Millennium);

• Au81 West^ –M46/443+ (100% Millennium);

• Bartons* –M46/3, M46/164 & M46/441 (100% Millennium);

• Bow Bells* @ - M46/166 (100% Millennium); • Condor* -M46/129 & M46/200 (100% Millennium);

• Condor North-West* - M46/200 (100% Millennium);

• Crossing^*+ - M46/266 (100% Millennium);

• Crow* - M46/129 (100% Millennium);

• Falcon* - M46/200 (100% Millennium);

• Gambols Hill*+ - M46/261 (100% Millennium);

• G Reef* - M46/47 (100% Millennium);

• Golden Gate ABCD* – M46/47 & M46/129 (100% Millennium);

• Golden Eagle^+ - M46/186 & M46/300 (100% Millennium);

• Harrier* - M46/47(100% Millennium);

• Hopetoun – Endeavour*@ - M46/57 & M46/442 (100% Millennium);

• Hut^+ - M46/265 & M46/266 (100% Millennium);

• Junction*@ - M46/442 (100% Millennium);

• Little Annie*^+ - M46/265 & M46/266 (100% Millennium)

• Little Wonder* –M46/146+, M46/198+ & M46/166@ (100% Millennium);

• Majuba Hill^+ - M46/192 & M46/445 (100% Millennium);

• Mundalla* - M46/50 & M46/445+ (100% Millennium);

• Mustang*@ - M46/166 (100% Millennium);

• Otways*+ - M46/262 (100% Millennium);

• Redbeard*+ – M46/433 and M46/434

• Roscoes Reward*@ - M46/166 and M46/442(100% Millennium);

• Round Hill*@ - M46/166 (100% MML)


• Shearers*+ - M46/261 & M46/262 (100% Millennium);

• Shearers North* - M46/50 & M46/262+ (100% Millennium). ^ These tenements are located within the Palyku title claim (WC99/16). *These tenements are located within the Njamal title claim (WC99/8). + A $10/oz royalty payable to Tyson Resources Pty Ltd. @ Little Wonder (M46/166), Round Hill (M46/166), Junction (M46/442) and Roscoes Reward (M46/166 and M46/442) gross revenue royalty of 6.44% payable to Royalty Stream Investments (WA Gold) Pty Ltd for up to 20koz then it reverts to 1.5% rate for gold mined beyond 20koz ; # 2.5% ad valorem royalty payable to Wakeford Holding Pty Ltd.

Exploration done by other parties

• Acknowledgment and appraisal of exploration by other parties.

• Exploration by other parties has been reviewed and taken into account when exploring. Previous parties conducted rock chip sampling, RAB & RC drilling and mapping. Millennium has predominantly redrilled areas of historical drilling by other parties with more recent holes. Where there was low confidence in the remaining holes and these had not been redrilled, these holes were excluded from Mineral Resource estimates (Au81 deposit).

Geology • Deposit type, geological setting and style of mineralisation.

The Nullagine Project deposits are structurally controlled, sediment hosted, lode Au style of deposit. They are all situated in the Mosquito Creek Basin that consists predominantly of Archean aged, turbidite sequences of sandstones, siltstones, shale and conglomerate units.

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

• No exploration results have been reported in this release.

• Where this table relates to Mineral Resource, Ore Reserve of other disclosures, this section is not material. Notes relating to the drill hole information relevant to the Mineral Resource estimate are noted in Section 1 - Sampling Techniques and Data. Notes relating to the geology and interpretation are noted in Section 3 - Estimating and Reporting of Mineral Resources.


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.

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.


Relationship between mineralisation widths and intercept lengths

• 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.

• 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’).

• No exploration results have been reported in this release, and thus, this section is not material to this report on Mineral Resources and Ore Reserves.

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.

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.


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.


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.

• No exploration results have been reported in this release, and thus, this section is not material to this report on Mineral Resources and Ore Reserves.

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.) Criteria JORC Code Explanation Commentary

Database

integrity

• Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.

• Data validation procedures used.

• Data used for estimation is stored within an SQL database and is managed using DataShed Software

• Logging is performed on LogChief software and synchronised to the database. Logging software and validation procedure has built in rules that cover downhole surveys, samples and geology. These rules and checks include the following;

• Drillhole collar must have a surveyed Real Time Kinematic (RTK) DGPS collar pickup

• Drillhole must have a downhole survey

• Downhole dip must be negative for open pit drill data

• Downhole depth, survey method, date surveyed, survey company and instrument must be recorded

• Drillhole must have downhole samples.

• Downhole sample intervals must be complete to collar max depth.

• Sample_Type, Sample Method, Sample Condition and Sample Category must be recorded properly

• SampleID must have a prefix followed by 7 numbers e.g. GC1429040

• Drillhole should have downhole field duplicates.

• Sample_Type, Sample Method, Sample Condition and Sample Category are recorded properly (refer library tables).


• Downhole field duplicate QC samples at SampleID’s xxxxxxx41 and xxxxxxx81.

• Drillhole should have downhole standards.

• Sample_Type, Sample Method, Sample Condition and Sample Category is recorded properly


• Downhole standard QC samples at SampleID’s xxxxxxx00, xxxxxxx20 and xxxxxxx60.

• Drillhole must have downhole lithology.

• Downhole lithology intervals must be complete to collar max depth.

• Every interval must be recorded. If a cavity is encountered then record interval as cavity.


• The responsible geologist must check the data to ensure it represents the data collected from the drill hole. Software and validation procedures are set up to enable the process.

• Quality Assurance and Quality Control data is vetted prior to uploading of the assay data

• Assays are loaded directly from digital laboratory files

• Only the database administrator and exploration manager have privileges to change the database

• Holes for mineral resources are checked visually and suspect information are sent to the Database Administrator to correct if necessary

Bartons Underground:

• Geological metadata is centrally stored in a SQL database managed using DataShed Software. Millennium Minerals Ltd (“MOY”) employ a Database Manager responsible for the integrity of data imported and modified within the system.

• Logging and sampling data is collected on LogChief software and synchronised digitally to the database by the database manager.

• Collars of completed drill holes were surveyed with a Real Time Kinematic (RTK) DGPS device. All collars were validated against planned positions. Surveyed collar co-ordinates are uploaded into the SQL database using LogChief software. Grid datum used is GDA94 51K (East Pilbara).

• Downhole surveys were taken using a single shot camera or electronic multi-shot or gyroscopic survey tool. Survey measurements are entered into the LogChief software and digitally synchronised to the SQL database.

• Assay data is received from the laboratory in digital format. Quality Assurance and Quality Control (QAQC) data is vetted once uploaded to the database.

• Drill holes, once uploaded, are checked visually within Micromine or Surpac software packages by MOY Geologists.

• MOY conducts regular database audits on collar, survey, and assay metadata.

• Andrew Dunn, Senior Exploration Geologist and full-time employee of MOY, is the Competent Person responsible for the veracity of drill hole data underpinning the Bartons Underground Mineral Resources.

• Entech understands MOY have suitable processes and due diligence in place to ensure acceptable integrity of the drill hole metadata underpinning the Mineral Resource. Entech utilised the drill hole data as supplied with basic data audits and visual verification undertaken as part of the Entech due diligence process.

• The drill hole data, as supplied by MOY and underpinning the resource, was considered in good standing and utilised for the Mineral Resource.

• The Mineral Resource incorporates drilling results available up to, and including, 15th November


2017.

Golden Gate:

• Geological metadata is centrally stored in a SQL database and is managed using DataShed Software. Millennium Minerals Ltd (“MOY”) employ a database manager who is responsible for the integrity of data imported and modified within the system.

• Logging and sampling data is collected on LogChief software and synchronised digitally to the database by the database manager.

• Collars of completed drill holes were surveyed with a Real Time Kinematic (RTK) DGPS device. All collars were validated against planned positions. Surveyed collar co-ordinates are uploaded into the SQL database using LogChief software. Grid datum used is GDA94 51K (East Pilbara).

• Downhole surveys were taken using a single shot camera or electronic multi-shot survey tool. Survey measurements are entered into the LogChief software and digitally synchronised to the SQL database.

• Assay data is received from the laboratory in digital format. QAQC data is vetted prior to uploading.

• Drill holes, once uploaded, are checked visually within Surpac software by MOY Geologists.

• MOY conducts regular database audits on collar, survey, and assay metadata.

• Andrew Dunn, Senior Geologist and full-time employee of Millennium Minerals Ltd is the Competent Person responsible for the veracity of drill hole data underpinning the Golden Gate Underground Mineral Resources.

• Entech understands MOY have suitable processes and due diligence in place to ensure acceptable integrity of the drill hole metadata underpinning the Mineral Resource. Entech utilised the drill hole data as supplied with basic data audits and visual verification undertaken as part of the Entech due diligence process.

• The drill hole data, as supplied by MOY and underpinning the resource, was considered in good standing and utilised for the Mineral Resource.

• The Mineral Resource incorporates drilling results available up to, and including, 20th September 2017.

Site visits • Comment on any site visits undertaken by the Competent Person and the outcome of those visits.

• If no site visits have been undertaken indicate why this is the case.

• For all resources carried out by Millennium Minerals Ltd, the Competent Person has carried out a site visit. This has allowed the competent person to gain insight into the geology and exploration and mining practices carried out at Nullagine Gold Operations.

• For all resources carried out by Dampier Consulting, the Competent Person has not carried out a site visit due to the amount of historic data from completed open cut mining.



• Andrew Finch, Senior Geology Consultant at Entech Pty Ltd and independent consultant to MOY, is the Competent Person for the estimation and classification of global gold Mineral Resources at Bartons. Mr Finch undertook a site visit to the Bartons deposit on 12th and 13th July 2017. Primary focus for the site visit was to observe, review, and document drilling and sampling including:

o QAQC, practices; o geological, collar, survey and assay data collection; o data storage; o data verification processes; o drill hole core and open pit mapping comparison against current understanding of

mineralisation controls and existing approach to mineralisation interpretation.

• Outcomes from the site visit were utilised to aid interpretation of mineralisation domains of the Barton Main, East and Splay Lodes, and to assess any risk to the Mineral Resources from historical mining and milling experience.

• The site visit confirmed that drill hole data collection and verification procedures, with respect to current and recent drilling programs, was appropriately managed to maintained data integrity and minimise data errors.

Golden Gate:

• Andrew Finch, Senior Geology Consultant at Entech Pty Ltd and independent consultant to MOY is the Competent Person for the estimation and classification of global gold Mineral Resources at Golden Gate. Mr Finch undertook a site visit to the Golden Gate deposits on 12th and 13th July 2017. Primary focus for the site visit was to observe, review, and document drilling and sampling including:

o QAQC, practices; o geological, collar, survey and assay data collection; o data storage; o data verification processes; o drill hole core and open pit mapping comparison against current understanding of

mineralisation controls and existing approach to mineralisation interpretation.

• Outcomes from the site visit were utilised to aid interpretation of mineralisation domains within the Golden Gate suite of deposits, and to assess any risk to the Mineral Resources from historical mining and milling experience. The Golden Gate Mineral Resource Estimate (MRE) comprises the following suite of deposits;


o ABC Reef, o Harrier Reef, o D Reef, o Condor, inclusive of Condor and Condor North-West, o Crow, o G Reef.

• The site visit confirmed that drill hole data collection and verification procedures, with respect to current and recent drilling programs, was appropriately managed to maintained data integrity and minimise data errors.

Geological

interpretation

• Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit.

• Nature of the data used and of any assumptions made.

• The effect, if any, of alternative interpretations on Mineral Resource estimation.

• The use of geology in guiding and controlling Mineral Resource estimation.

• The factors affecting continuity both of grade and geology.

• Detailed outcrop and structural mapping have been completed for most of the deposits. Outcrop at the Project deposits ranges from excellent (100% outcrop) to very good. Geological interpretations are based on the mapping and structural measurements, sectional interpretations based on RC and core holes geology.

• Confidence in the geological interpretation of all resources is high due to the geological knowledge obtained due to either the advanced mining of the pit or infill drilling at either a grade control stage (10 x 10m grid) or resource drilling stage (20 x 20m grid). The geological confidence of the underground resources is also high due to data collected in the open pit mining process and detailed logging of diamond and RC holes. The underground drilling density varies from 10 m x 10 m directly underneath the pit to 20 m x 20 m and up to 40 m x 40 m in the lower levels of the mineralisation.

• The interpretation for open pit material was based on a 0.5 Au ppm cut-off grade. The reasoning behind this cut off is that it is very close to the economic cut off of the open pits. A 2 ppm Au cut off was used for underground resources. This was also based upon economic factors.

• Alternate interpretations for open pit would consist of using a lower Au cut-off which would expand the width of the mineralisation having the effect of increasing tonnes and lowering grade of the deposit. A 30% error in mining reconciliation from previous resources which used this interpretation suggests that this model is incorrect.

• The influence of structure on the geological interpretation is well understood, with a structural model being incorporated within the interpretation process. Weathering surfaces were interpreted from drill logging and extended laterally beyond the limits of the Mineral Resource model.


• Lithology and structure were considered the predominant controls on mineralisation. Geological and structural modelling of the mineralisation controls within a regional framework was underway for Bartons at the time of the Mineral Resource Estimate (MRE) however not available to guide and assist the interpretation for this MRE. Entech relied on database derived geological and assay data,


input from MOY geologists familiar with Bartons geology, historical mineralisation wireframes and mining voids to evaluate geological, structural and mineralisation continuity.

• Factors which limited the confidence of geological interpretation included poor consistency of logged lithological data due to the subjective nature of logging the sandstone/siltstone interbedded host lithology, and an absence of a structural model and understanding of preferential structural orientations for high grade mineralisation shoots.

• Factors which aided the confidence of geological interpretation included; strong strike and dip continuity of structural ‘corridors’ apparent in surface mapping, pit observations; close spaced resource definition drilling (20 m x 20 m), grade control drilling (10 m x 10 m) and historical stoping voids. Note historical stope voids were compiled by MOY geologists from historical documentation and paper records.

• Entech considers confidence is high in the geological interpretation and continuity of the structures within the MRE. However, the mineralisation orientation and continuity within the structural ‘corridors’ was considered uncertain due to the presence of a bimodal mineralisation population apparent as high grade ‘shoots’. Consideration of these shoots within a structural framework at Bartons would improve the confidence for future MRE’s.

• Mineralisation interpretations were informed by 898 reverse circulation (RC) drill holes, 30 diamond drill (inclusive of diamond tails) holes, pit mapping/observations and historical underground cross-cut mapping.

• Interpretation of mineralisation domain volumes was based on a combination of geological logging (quartz percentage, alteration halo) and a nominal minimum cut-off grade (2.5 g/t Au). Two mineralised domains (Main Footwall and Main Hangingwall) were defined within the Bartons Main Lode, with two further domains representing East Lode and a minor footwall splay of East Lode. A Halo domain encompassing the extents of the Main Footwall and Hangingwall domain was based on a combination of geological logging and a nominal minimum cut-off grade of 1.0 g/t Au.

• For instances where the intercept was supported by geological indicators of structural intersection (quartz percentage, alteration halo), although mineralisation values fell below the nominal cut-off, the intercept was included within the domain due to the commodity and style of deposit.

• Assumptions with respect to mineralisation continuity (strike and dip) and shoot orientation within the underground Mineral Resource were drawn directly from:

o historical underground mining documentation o historical stope spatial locations, preferential orientations, and widths o drive continuity o underground cross-cut mapping

• These assumptions were then tested with geostatistical analysis, using close spaced drill hole data at depth (10 m x 10 m), prior to being applied within the MRE where drill spacing was nominally


20 m x 20 m, and up to 60 m x 60 m.

• Alternate interpretations would consider alternate preferential orientations of the high-grade shoots within the Main Lode Footwall, Main Lode Hangingwall and East Lode.

• Entech considers the current uncertainty in shoot orientation does not pose a significant risk to the global metal content of the MRE’s. However, there is a risk to future detailed mining studies, relating to the spatial location and projection of high metal areas within the MRE and misclassification of ore and waste blocks. This risk can be mitigated with targeted infill drilling to test the interpolated shoot locations down plunge.

• Weathering surfaces were interpreted by MOY geologists from drill logging and extended laterally beyond the limits of the Mineral Resource model. The Bartons underground Mineral Resource lies nominally 20 m below the ‘top of fresh’ interpreted surface and therefore the weathering profile was not taken into consideration during interpretation or subsequent Mineral Resource estimation approaches.

Golden Gate:

• Lithology and structure were considered the predominant controls on mineralisation. Geological and structural modelling of the mineralisation controls within a regional framework was underway for Golden Gate at the time of the MRE however not available to guide and assist the interpretation for this MRE. Entech relied on database derived geological and assay data, input from MOY geologists familiar with Golden Gate geology, historical mineralisation wireframes and mining voids to evaluate geological, structural and mineralisation continuity.

• Factors which limited the confidence of geological interpretation included limited diamond drilling for volume/structural identification and delineation; poor consistency of logged lithological data due to the subjective nature of logging the sandstone/siltstone interbedded host lithology, and an absence of a structural model and understanding of preferential structural orientations for high grade mineralisation shoots.

• Factors which aided the confidence of geological interpretation included; strong strike and dip continuity of structural ‘corridors’ apparent in surface mapping, pit observations; close spaced resource definition drilling (20 m x 20 m), grade control drilling (10 m x 10 m) obtained during mining and/or infill drilling within the pit extents.

• Entech considers confidence is high in the geological interpretation and continuity of the structures within the MRE. However, the mineralisation orientation and continuity within the structural ‘corridors’ was considered uncertain due to the presence of a bimodal mineralisation population apparent as high grade ‘shoots’. Consideration of these shoots within a structural framework would improve the confidence for future MRE’s.

• Mineralisation interpretations for ABC Reef, D Reef and Harrier were informed by 544 RC drill holes


and 5 diamond (DD) drill holes for a total of 29,036 m of drilling.

• Mineralisation interpretations for Condor, Crow and G Reef were informed by 278 RC drill holes and 3 DD drill holes for a total of 12,901 m of drilling.

• Interpretation of all mineralisation domain volumes was based on a combination of geological logging (quartz percentage) and a nominal minimum cut-off grade of;

o 2.0 g/t Au for ABC Reef, D Reef and Harrier, o 1.0 g/t Au for Condor, Crow and G Reef.

• For instances where the intercept gold value fell below the nominal cut-off, however was supported by geological indicators (quartz percentage), the intercept was included to maintain domain homogeneity and represent the structural continuity evident in surface mapping and pit observations.

• Using the above approach, a total of 25 mineralised domains were delineated, comprising of the following;

o ABC Reef. One main structural lode and three sub-parallel footwall minor lodes, o D Reef Lode. One main structural lode and one sub-parallel footwall minor lode, o Harrier. One lode along strike from the ABC Reef mineralisation. Both strike and dip

continuity were limited by drill density, o Crow. One main lode along strike from the ABC Reef and two minor sub-parallel lodes

spatially distant from Crow (80 m), o Condor. Twelve sub-parallel lodes with limited strike continuity. Six lodes fell within

Condor and the remaining six to the north west within Condor North-West, o G-Reef. Three sub-parallel lodes with limited strike and dip continuity.

• Alternate interpretations would consider variable preferential orientations of the high-grade shoots within all mineralisation domains. Entech considers the current uncertainty in shoot orientation does not pose a significant risk to the global metal content of the MRE’s. However, there is a risk to future detailed mining studies, relating to the spatial location of high metal areas within the MRE and misclassification of ore and waste blocks.

• Given the stage of the Golden Gate project Entech considers risk to the Mineral Resource lies in the spatial location and projection of the high-grade shoots for detailed mine design. This risk can be mitigated with infill drilling, structural models and targeted drilling to test the interpolated shoot locations down plunge.

• Weathering surfaces were interpreted by Entech from drill hole logging and were extended laterally beyond the limits of the MRE. Description of weathering profile nomenclature, as utilised for the MRE is outlined below:

o Oxide. Complete oxidation of sulphides, defined by database logging codes in ‘Regolith’ and ‘Weathering’ database tables.


o Transitional. Partial oxidation of sulphides, defined by transitional logging codes in ‘Regolith’ and ‘Weathering’ database tables.

• Fresh. No oxidation of sulphides, defined by logged unweathered Bedrock or fresh in ‘Regolith’ and ‘Weathering’ database tables.

Dimensions • The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.

• Agate – Several stacked lodes striking over 300 metres trend North-north-east. Lodes dip to the north-west and are modelled 100 metres below the surface.

• All Nations -The deposit has an overall north-south trend and has been drilled over some 750m of strike length. The northern ~130m of the deposit comprises a southerly plunging open antiformal lode feature that appears to be separated from the main lode to the south by a regional fault. The main lode is a north-south trending, steeply west dipping feature with a plan width of 20 metres, and a strike length in excess of ~600m. A secondary mineralised trend is observed in the centre and the south of the deposit, and is represented by two distinct moderately shallow, south to SSE dipping mineralised structures. These secondary mineralised structures have a plan width up to 8-10m wide and have been drill tested over an ~130m strike extent. Drilling at All Nations has tested mineralisation to a maximum depth of 140m below the surface

• Angela – Several stacked lodes with an overall North-East trend strike over a distance of 350 metres and dip around 65 degrees to the north. Mineralisation extends to a depth of 100 metres below the surface.

• Anne de Vidia – Two multiple zones of mineralisation strike east-north-east and dip steeply to the north-north-west and north-north-east and occur over a strike length of approximately 545 metres. The deposit has been tested to a depth of approximately 100 metres

• Au81 -Mineralisation strikes north-south, dips 70 to 80 degrees to the west and extends for 240m with an average plan thickness of eight metres. There are multiple low grade, north-north-east striking, steeply west dipping lenses that have been defined over 400m with an average thickness of three metres. The mineralisation has been well defined to 40m below the surface and sparsely to 100m.

• Au81 West - The deposit consists of a main lode that has a strike length of over 800 metres and dips at about 60 degrees west and strikes at around 015 degrees. The true thickness of the main lode varies in thickness from 2 to 5 metres. The mineralisation is still open to the north and at depth. There are sporadic high grades that may be associated with cross cutting structures. There are multiple lenses of mineralisation in the southern and northern areas.

• Bartons –the deposit comprises a series of sub-parallel stacked lodes trending north-north-east and dipping steeply to the north-east. The main lode is mineralised over a strike length of 1300m; the mineralisation plan widths are 2 m to 15m respectively. Mineralisation has been defined to 360m below the surface. The deposit remains open at depth.

• Bow Bells – Initially included within the Round Hill interpretation, this has now been separated. Two


different trends of mineralisation containing multiple lodes trend almost east-west and north-west. This covers a strike of 350 metres and continue to a depth of 85 metres below the surface.

• Crossing –Multiple stacked lodes with a bearing of ~010 dipping 75 degrees to the west are present and appear to be correlated with sub-cropping quartz veins. The deposit has a strike length over 350m and is drilled to a depth of 100 metres.

• Falcon -The deposit is comprised of four lodes trending north-east and are sub-vertical to very steeply south-east dipping. Mineralisation has a length of 260m and a nominal plan width of three metres. This deposit has been defined to 75 metres below the surface. The resource remains open along strike to the south-west.

• Gambols Hill – Multiple stacked lodes trend over a distance of 860 metres in a north-east direction steeply dipping to the west. The deposit has been drilled to a depth of approximately 100 metres.

• Golden Eagle -The main lode trends north-east, dips moderately to the north-west with a strike length of 1,900m and plan thickness 18m. The hanging wall lodes strike east-north-east, dip moderately to shallowly to the north with a plan width of five metres and vary in extent from 40m to 240m. Footwall lodes extend over similar strike lengths to the hanging wall lodes but trend slightly more northerly than the main lode. The mineralisation has been defined to a depth of 230m below the surface.

• Hopetoun-Endeavour – is a broadly NE-striking, +2.25km mineralised fault/shear corridor. It is a steeply SE-dipping mineralised shear that outcrops in the order of 3-5 metres in thickness.

• Hut – Nine parallel, north-east trending and moderately dipping lodes over a strike length of 200m, with mineralisation tested to a depth of 100m.

• Junction -Mineralisation is comprised of several lodes that form continuous mineralisation over a strike length of 180m. The lodes trend east-south-east and dip steeply to the south, it has been drill tested to 80m below the surface. Mineralisation remains open to the west-north-west.

• Little Wonder -The main mineralised trend is arcuate ranging from east-west in the west, to east-south-east at the east. The mineralisation dips steeply to the south and varies in plan width from four to twelve metres. Mineralisation has been tested to a depth of 100m below the surface.

• Majuba Hill - Eight parallel, north-east trending and westerly steeply dipping lodes over a strike length of 500m, with mineralisation tested to a depth of 60m.

• Mundulla – contains a north south, north-west and north-east trending zone. These individual zones have a strike length of around 300 metres. Mineralisation extends to a depth of around 110 metres.

• Mustang – A north east trending lode with ancillary lodes. Having a plan width of around 5 metres, the deposit dips to the south. Mineralisation extends to depth of 55 metres.

• Otways -The main lode at Otways trends east-north-east and dips steeply to the south, over a strike length of 950m. Drilling has defined mineralisation down to a depth of 100m below the surface. The mineralisation has a nominal plan width of 20m and it remains open along strike to the east-north-east.


• Red Beard - The primary mineralisation is associated with an east-west trending, steeply south dipping, 2-5m sericite and goethite altered shear zone with 1-4m wide mineralised quartz veins within it. The outcropping quartz veins are mineralised and this continues to a current vertical interpreted depth of 80m. The lodes vary from near vertical to a dip of -75° and strike due west-east over a strike extent of 2km. The main continuous lode (Domain 1) strikes over a length of 490m. Minor lodes interpreted from single drill line intersections, show thin stacked, parallel lodes on each section

• Roscoes Reward -The deposit has a north-west trending, steeply south-west dipping geometry that is discontinuously mineralised over a strike length of 850m and trends to east-striking lodes at either end. Mineralisation has a nominal plan width of eight metres and has been tested to a depth of 95 metres below the surface.

• Round Hill -there are two main orientations to the lodes. The first is a north-west trending, steeply south-west dipping vein system that is defined over 120m of strike and the second is comprised of three east-west en echelon veins that are continuous for 40m of strike. The mineralisation has been tested to 75m below surface

• Shearers -The deposit trends north-south, dips steeply to the west and extends over a strike length of 750m with an average plan width of 12m, to a depth of 110m below the surface.

• Shearers North - Three main lodes of mineralisation have been interpreted at the Shearers North deposit, striking NE at approximately 32° over a strike length of 600m. The lodes dip steeply at 78° to the NNW. Minor lodes have been interpreted parallel to the main lodes with similar dips. The mineral resource extends to a depth of 86 metres.


• Bartons Main Lode – comprises two sub-parallel stacked lodes trending north-east and dipping steeply to the south-east.

• The main lode is mineralised over a strike length of 1,000 m; the mineralisation plan widths are highly variable, typically ranging from 0.1 m to 4.5 m.

• Bartons East Lode – comprises two domains, a major lode trending east-north-east and dipping steeply to the south-east combined with a minor splay in the footwall of East Lode.

• The East Lode is mineralised over a strike length of 300 m; the mineralisation plan widths are highly variable, typically ranging from 0.1 to 3.5 m.

• Bartons Main Lode Halo – comprises a single enveloping alteration halo surrounding the Bartons Main Lode. The halo is mineralised over a strike length of 1,000 m; with mineralisation plan widths being highly variable, typically ranging from 0.5 m to 12 m.

• Depth from surface to the current vertical limit of the Mineral Resource is approximately 220 m.

• Mineralisation within the model which did not satisfy the criteria for Mineral Resource remained unclassified.


Golden Gate:

• ABC Reef. Comprised one main, and three minor, narrow sub-parallel footwall mineralised lodes, trending north-west and dipping steeply to the north-east. The main lode is mineralised over a strike length of 300 m and 300 m down dip (from surface) with plan widths being highly variable, typically ranging from 0.3 to 5 m.

• D Reef. Comprising of main and minor, sub-parallel footwall mineralised lodes, trending south-west and dipping steeply to the north-west. The main lode is mineralised over 250 m along strike and 230 m down dip (from surface) with plan widths being highly variable, typically ranging from 0.3 m to 2.5 m.

• Harrier. One single mineralised lode, trending north-west and dipping steeply to the north-east. Harrier was located along strike and north-west of the ABC mineralisation and extends over 80 m along strike and 65 m down dip (from surface), with plan widths being highly variable, typically ranging from 0.5 to 4 m.

• Crow. One main and two narrow minor parallel, mineralised lodes, trending north-west and dipping steeply to the north-east. The two minor lodes are located approximately 80 m to the south-west of the Crow main lode. Continuity of the main lode is 170 m along strike and 80 m down dip (from surface) whilst the minor lodes are continuous over 50 m along strike and 60 m down dip. Plan widths are highly variable, typically ranging from 0.4 m to 2.0 m.

• Condor and Condor North-West. Twelve narrow sub-parallel en-echelon mineralised lodes, trending north-west and dipping steeply to the north-east. Condor includes six mineralised lodes with mineralisation varying from 30 m to 90 m along strike and 50 m to 100 m down dip. Condor North-West is located along strike and north-west of Condor and comprises six mineralised lodes with continuity varying from 20 m to 80 m along strike and 30 m to 90 m down dip. Plan widths are highly variable, typically ranging from 0.6 m to 3.0 m.

• G Reef. Three narrow sub-parallel mineralised lodes, trending north-north-west and dipping steeply to the south-east. Due to localised structural complexity continuity was limited to 10 m to 35 m along strike and 30 m to 60 m down dip. Plan widths were highly variable, typically ranging from 0.4 m to 2.0 m.

• Mineralisation within the model which did not satisfy the criteria for Mineral Resource remained unclassified.

Estimation

and modelling

techniques

• The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters

• Ordinary Kriging (OK) was used to estimate 3D blocks for Agate, Anne de Vidia, Angela, All Nations, Au81 West, Bartons open pit, Bow Bells, Crossing, Condor North-West, Gambols Hill, Golden Eagle, Hopetoun-Endeavour, Hut, Junction, Little Wonder, Majuba, Mundalla, Mustang, Otways, Roscoes Reward, Round Hill, Shearers and Shearers North using Surpac (64 bit version 6.6.1) and Kriging Neighbourhood Analysis to optimise parameters for the Kriging search strategies within Supervisor


and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.

• The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.

• The assumptions made regarding recovery of by-products.

• Estimation of deleterious elements or other non-grade variables of economic significance (e.g. sulphur for acid mine drainage characterisation).

• In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.

• Any assumptions behind modelling of selective mining units.

• Any assumptions about correlation between variables.

• Description of how the geological interpretation was used to control the resource estimates.

• Discussion of basis for using or not using grade cutting or capping.

• The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.

(version 8.7) by Millennium Minerals Ltd. o Grade estimation was constrained to within the geological model domain wireframes:

Lithological, structural and grade interpretation was used as a guide in building mineralised domains.

o All samples are 1m composites. o Block models were created for the Millennium Minerals Estimations using the following block

sizes: Agate using 5.0mE x 5.0mE x 2.5mRL parents blocks, Angela using 5.0mE x 5.0mE x 2.5mRL parents blocks, All Nations using 3.0mE x 3.0mN x 2.5mRL parent blocks, Anne de Vidia using 5.0mE x 5.0mN x 2.5mRL parent blocks, Bartons using 5.0mE x 5.0mN x 2.5mRL parent blocks, Bow Bells using 5.0mE x 5.0mE x 2.5mRL parents blocks, Billjim South using 5mE x 5mN x 2.5mRL, Buzaard using 5mE x 5mN x 2.5mRL, , Crossing using 4.0mE x 5.0mN x 2.5mRL parent blocks, Gambols Hill using 2.5.0mE x 2.5.0mN x 2.5mRL parent blocks, Hut using 5.0mE x 4.0mN x 2.5mRL parent blocks, Junction using 2.0mE x 2.0mN x 2.5mRL parent blocks, Hopetoun-Endeavour using 5.0mE x 5.0mN x 2.5mRL parents blocks, Little Annie using 5mE x 5mN x 2.5mRL, Little Wonder using 5.0mE x 5.0mN x 2.5mRL parent blocks, Majuba using 5.0mE x 5.0mE x 2.5mRL parents blocks, Mundalla using 5.0mE x 5.0mE x 2.5mRL parents blocks, Mustang using 5.0mE x 5.0mE x 2.5mRL parents blocks, Otways using 3.0mE x 3.0mN x 2.5mRL parent blocks, Roscoes Reward using 5.0mE x 5.0mN x 2.5mRL parent blocks, Round Hill using 4.0mE x 4.0mN x 2.5mRL parent blocks and Shearers using 5.0mE x 5.0mN x 2.5mRL parent blocks . The models were then sub-celled as appropriate to honour wireframe lodes.

o For all Millennium Minerals Estimations, the following minimum and maximum samples were used to estimate the sample grades into each block for the first search pass:

Deposit Minimum Samples

Maximum Samples

Agate 9 28

All Nations 12 31

Anne de Vidia 10 31

Angela 8 26

Au81 4 14

Au81 West 4 12

Bartons Open Pit 4 20

Billjim South 2 10


Buzzard 2 20

Bow Bells 9 29

Crossing 10 30

Gambols Hill 10 31

Golden Eagle 3 16

Hopetoun-Endeavour 9 28

Hut 10 30

Junction 12 30

Little Annie 4 20

Little Wonder 4 20

Majuba 4 20

Mundalla 4 27

Mustang 4 20

Otways 14 28

Redbeard 4 20

Roscoes Reward 4 14

Round Hill 11 31

Shearers 4 20

Shearers North 4 20

• Ordinary Kriging (OK) was used to estimate 3D blocks for Falcon using Surpac and Kriging Neighbourhood Analysis to optimise parameters for the Kriging search strategies within Supervisor by Dampier Consulting. o Block models were created using a 5.0mE x 5.0mN x 2.5mRL parent blocks and sub-celled

down 1.25mE x 1.25mN x 1.25mRL as appropriate to honour wireframe lodes. o A minimum of 8 samples and a maximum of 24 samples were used to estimate the sample

grades into each block for pass 1 and 2. The minimum number of samples was reduced to 4 zones in the third search pass to ensure all blocks found sufficient samples to be estimated.

• The resources completed by Millennium Minerals, and Dampier Consulting were interpreted and wireframes were generated based on a 10 × 10m and a 20m x 20m exploration, resource and grade


control drilling pattern.

• All search ellipses were orientated based on the overall geometry of mineralisation of domains.

• There is the availability of check estimates, previous estimates and/or mine production records and all Mineral Resource estimate takes appropriate account of such data.

• There is no by-product.

• No estimation was made for deleterious elements or other non-grade variables.

• Top cuts applied are:

Deposit From To

Agate 10

All Nations 2 8.36

Anne de Vidia 1.34 7.1

Angela 10

Au81 1.85 5.7

Au81 West 2.25 6.4

Bartons Open Pit 2.5 10.14

Bow Bells 12

Condor North-West 5 15

Crossing 5.7

Falcon 20

Gambols Hill 1.2 6

Golden Eagle 1.9 10.7

Hopetoun-Endeavour 1.3 2.8

Hut 5 7

Junction 15

Little Annie 1.5 3.5

Little Wonder 1.5 8

Majuba 2 10.6

Mundalla 2.2 3.5


Mustang 2.2 7.4

Otways 9.5

Redbeard 1 14.25

Roscoes Reward 2 5.88

Round Hill 22

Shearers 1.2 10

Shearers North 2 6.6

• The assumption behind modelling of selective mining units is 2.5m x 2.5m x 2.5mRL.

• Only gold was estimated as a single variable.

• Statistical and visual assessment of the block model was undertaken to assess the successful application of the various estimation passes, to ensure that as far as the data allowed, all blocks within domains were estimated and the model estimates were considered acceptable.

• Validation of the estimate was completed by visual inspection in 3D. Checks included that; all blocks were populated, block grades matched composite grades and there was no leakage of grade into adjacent areas.


• Interpretations of domain continuity were initially undertaken within Geovia SurpacTM software, with mineralisation intercepts correlating to individual reefs manually selected prior to creation of a vein model within Leapfrog3DTM implicit modelling software. Interpretation was a collaborative process with MOY Geologists to ensure modelling appropriately represented observations and current understanding of geology and mineralisation controls.

• Domain interpretations utilised all available drill hole data, including rotary air blast assays.

• A two-dimensional (“2D”) Ordinary Kriging (OK) interpolation approach was selected for the lodes exclusive of the Main Lode Halo to address some of the main issues encountered when estimating narrow vein mineralisation, such as those at Bartons, which were: o Additivity issues due to non-uniform support and resulting grade bias. Instances of highly

variable individual intercepts (e.g. 0.3 m to 5.0 m) which would be difficult to incorporate and represent statistically using downhole composites of equal lengths (e.g. 0.5, 1.0 or 2.0 m);

o Varying mineralisation geometry across lode, down dip, and along strike; and o Block size required for adequate volume fill of narrow geometry is generally too small,

introducing conditional bias to the MRE outcome.

• Reverse Circulation and diamond drill holes were composited for the full width of the domain intercept, followed by trigonometric calculation of true width (“TW”) using the orientations of the drill


hole intercept and ore domain defined by the Leapfrog reference (centreline) surface. A gold accumulation variable was then calculated by multiplication of intercept grade by true width.

• Rotary Air Blast, water bore drill hole and known compromised data (ARC001-004, BARD0104, PRC012) were excluded from all compositing processes and subsequently the MRE outcomes.

• Composited sample data was transformed (grid rotation removed) before being pressed onto a cartographic plane and statistical analysis undertaken on accumulation, width, and grade variables, to assist with determining estimation search parameters, top-caps etc.

• Assessment and application of top-capping for the 2D estimate was undertaken on the gold accumulation variable within individual domains. Top caps, where appropriate, were applied on an individual domain basis, as outlined below; o Main Lode FW. Top Cap = 100 Gold Accumulation and 0.38% metal reduction. o Main Lode HW. Top Cap = 100 Gold Accumulation and 25.07% metal reduction. It should be

noted that for the Main Lode HW only one single extreme composite was cap. o East Lode. Top Cap = 100 Gold Accumulation and 4.60% metal reduction.

• Variography analysis of individual domains was undertaken on gold accumulation variables in 2D space, followed by Qualitative Kriging Neighbourhood Analysis to assist with determining appropriate search parameters.

• The 2D block models for interpolation were created using a block size of 10 mN x 10 mRL x 1 mE with no sub-celling. Considerations relating to appropriate block size include: drill hole data spacing: conceptual mining method SMU analysis: variogram continuity ranges and search neighbourhood optimisations.

• Grade interpolation of capped gold accumulation and TW was undertaken in 2D space utilising OK at the parent cell sizes of the 2D block models (10 mN x 10 mRL x 1 mE).

• For the Main FW, HW and East lode domains, a single categorical indicator for each domain was used to segregate bimodal populations. Block and sample selection was based on sub-domain volumes generated in Leapfrog3DTM using a Radial Basis Function (RBF) Indicator Interpolant with a probability of >= 50% above a selected accumulation cut-off. Indicator interpolation used Spheroidal inputs equivalent to the proportional nugget and range defined by Accumulation Variography. A soft boundary approach was applied whereby blocks within the “high grade” above cut-off portion of the estimate were un-restricted in sample selection while blocks within the “low grade” below cut-off portion of the estimate were restricted to only samples within that portion.

• The mineralisation interpretation was used as a hard boundary for volume delineation.

• There were no assumptions made about metallurgical recovery that were applied within the MRE estimation or reporting process. It should be noted that Entech has relied on metallurgical studies undertaken by MOY and understands that the Bartons ‘fresh’ material from underground is able to be treated within the existing plant infrastructure with expected recoveries varying from 82 – 89%.


• There were no assumptions made with respect to by-products.


• Post estimate. Gold ppm values for each block were calculated by dividing interpolated gold accumulation by interpolated TW, whereby for each block:

• Block Gold ppm = Block Gold Accumulation Value / Block TW Value

• Back calculated gold ppm values for each block were transformed from 2D to 3D space and pressed across the full width of the corresponding domain in the final host 3D compilation model.

• A 3D OK interpolation approach utilising Dynamic Anisotropy was utilised for the Main Lode Halo.

• Assessment and application of top-capping for the 3D estimate was undertaken on the gold variable within the halo domain. A top cap of 10 g/t Au was selected and represents a 0.21% metal reduction.

• Variography analysis of the halo domain was undertaken on gold, followed by Qualitative Kriging Neighbourhood Analysis to assist with determining appropriate search parameters.

• Considerations relating to appropriate halo interpolation block size include: drill hole data spacing: conceptual mining method SMU analysis: variogram continuity ranges and search neighbourhood optimisations.

• Grade interpolation of capped gold was undertaken in 3D space utilising OK at the parent cell size of the 3D block model (10 mN x 5 mEL x 10 mRL).

• The halo mineralisation interpretation was used as a hard boundary for volume delineation.

• The 3D block model required substantial sub-celling to provide adequate volume fill and honour wireframe volumes. Sub-celling to 0.3125 mE x 0.625 mY x 0.3125 mRL was utilised.

• Only diamond and reverse circulation data was utilised during the estimate. Average sample spacing is variable ranging from 10 m x 10 m within 50 m of topographic surface to a nominal 30 m x 30 m in the upper portions of the underground resource and 100 m x 100 m at depth (approximately greater than 220 m).

• Assumptions discussed and tested during the estimation include; o Assumption of intrinsic correlation between grade and TW. Tested and met during variogram

analysis, o 2D estimation technique assumes full horizontal extraction of the modelled vein.

• Check estimates for Main HW, FW and East Lode were carried out in 3D using Inverse Distance Squared. Both accumulation and horizontal width were estimated before back calculation of the check estimate gold grade.

• Validation of the gold accumulation, TW estimations and gold ppm back-calculation was completed by global and local bias analysis, statistical and visual inspections in 2D and 3D space.

• Complete reconciliation data pertaining to production performance of Bartons, over time, was: o not available for underground, and o open pit data could not be relied upon as an appropriate comparison for validation purposes.


Golden Gate:

• Interpretations of domain continuity were initially undertaken within Geovia SurpacTM software, with mineralisation intercepts correlating to individual reefs manually selected prior to creation of a vein model within Leapfrog3DTM implicit modelling software. Interpretation was a collaborative process with MOY geologists to ensure modelling appropriately represented observations and current understanding of geology and mineralisation controls.

• Domain interpretations utilised all available drill hole data, including rotary air blast assays.

• A two dimensional (2D) Ordinary Kriging interpolation approach was selected for the MRE to address some of the main issues encountered when estimating narrow vein mineralisation, such as those at Golden Gate, which were: o Additivity issues due to non-uniform support and resulting grade bias. Instances of highly

variable individual intercepts (e.g. 0.3 m to 5.0 m) which would be difficult to incorporate and represent statistically using downhole composites of equal lengths (e.g. 0.5, 1.0 or 2.0 m);

o Varying mineralisation geometry across lode, down dip, and along strike; and o Block size required for adequate volume fill of narrow geometry is generally too small,

introducing conditional bias to the MRE outcome.

• RC and DD drill holes were composited for the full width of the domain intercept, followed by trigonometric calculation of true width (TW) using the orientations of the drill hole intercept and ore domain defined by the Leapfrog reference (centreline) surface. A gold accumulation variable was then calculated by multiplication of intercept grade by true width.

• Rotary Air Blast and waterbore drill hole data was excluded from all compositing processes and subsequently the MRE outcomes.

• Composited sample data was transformed (grid rotation removed) before being pressed onto a cartographic plane and statistical analysis undertaken on accumulation, width, and grade variables, to assist with determining estimation search parameters, top-caps etc.

• Assessment and application of top-capping for the 2D estimate was undertaken on the gold accumulation variable within individual and grouped mineralisation domains depending on domain homogeneity. Top caps, where appropriate, were applied on an individual domain basis, as outlined below; o ABC Main Reef. Top Cap = 130 Gold Accumulation and -1.37% metal reduction. o D Main Reef. Top Cap = 85 Gold Accumulation and -3.0% metal reduction. o Harrier Reef. Top Cap = 5 Gold Accumulation and -13.75% metal reduction. It should be

noted that the 6 samples capped from a total of 25 samples contribute 62.65% of metal prior to capping and represented the upper subset of a bimodal population.

o Condor. Top Cap = 70 Gold Accumulation and -2.71% metal reduction.


• Variogram analysis of individual domains with sufficient sample density, was undertaken on capped, declustered gold accumulation variables in 2D space, followed by Qualitative Kriging Neighbourhood Analysis to assist with determining appropriate search parameters.

• Considerations relating to appropriate block size included: drill hole data spacing, conceptual mining method SMU analysis, variogram continuity ranges and search neighbourhood optimisations. Thus, 2D block models for interpolation comprised a dual block size approach; o ABC Reef, D Reef and Harrier. 10 mN x 10 mRL x 1 mE with no sub-celling, and o Condor, Crow and G Reef. 5 mN x 5 mRL x 1 mE with no sub-celling.

• Grade interpolation of capped gold accumulation and TW was undertaken in 2D space utilising Ordinary Kriging (ABC Reef, D Reef, Harrier) and Inverse Distance Cubed (Crow, Condor, G Reef) methodologies. Interpolation was undertaken at the parent cell sizes of the 2D block models (refer above).

• The mineralisation interpretation was used as a hard boundary for volume delineation.

• There were no assumptions made about recovery.

• There were no assumptions made with respect to by-product.


• Post estimate. Gold ppm values for each block were calculated by dividing interpolated gold accumulation by interpolated TW, whereby for each block: o Block Gold ppm = Block Gold Accumulation Value / Block TW Value

• Back calculated gold ppm values for each block were transformed from 2D to 3D space and pressed across the full width of the corresponding domain in the final host 3D compilation model.

• The 3D block model required substantial sub-celling to provide adequate volume fill and honour wireframe volumes. Sub-celling to 0.3125 mE x 0.3125 mY x 0.3125 mRL was utilised.

• Average sample spacing for ABC Reef, D Reef, Harrier, Crow and G Reef was variable ranging from 10 m x 10 m within 75 m of topographic surface, to a nominal 40 m x 40 m in the upper portions of the resource, and 80 m x 80 m at depth (approximately greater than 150 m). At Condor sample spacing was variable ranging from 10 m x 10 m within 40 m of topographic surface, to a nominal 20 m x 20 m at depth. For Condor North-West sample spacing was a nominal 20 m x 20 m.

• Assumptions discussed and tested during the estimation include; o Assumption of intrinsic correlation between grade and TW. Tested and met during variogram

analysis, o 2D estimation technique assumes full horizontal extraction of the modelled vein.

• Check estimates for each mineralisation domain were undertaken in 2D space utilising Inverse Distance and Ordinary Kriging methodologies; o ABC Reef, D Reef and Harrier. Inverse Distance Squared. o Condor, Crow and G Reef. Ordinary Kriging.


• Check estimation outcomes for metal were within 2% of the reported MRE resource at ABC Reef, D Reef, Harrier and Crow.

• Check estimation outcomes for metal were within 6% and 7% for Condor and G Reef, respectively.

• Validation of the gold accumulation, TW estimations and gold ppm back-calculation was completed by global and local bias analysis, statistical and visual inspections in 2D and 3D space.

• Complete reconciliation data pertaining to production performance of individual deposits, over time, was not available nor could not be relied upon as an appropriate comparison for validation purposes.

Moisture • Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.

• The tonnages were estimated on a dry basis

Cut-off

parameters

• The basis of the adopted cut-off grade(s) or quality parameters applied.

• For the Millennium and Dampier Consulting estimated deposits, a nominal 0.5g/t Au boundary was applied to the mineralisation based on the current mining observations of narrow, high-grade veins and a lack of reconciliation using the 0.25g/t Au mineralised zones.

• Estimates were quoted at 0.5 g/t Au as the base case cut-off, based on experience at the Company operating gold deposits.


• The Mineral Resource cut-off grade for reporting of underground global gold resources at Bartons was 2.0 g/t gold. This was based upon conceptual economic evaluations, and consideration of comparable size deposits of similar mineralisation style and tenor.

Golden Gate:

• The Mineral Resource cut-off grade for reporting of underground global gold resources for ABC Reef, D Reef and Harrier was 2.0 g/t Au. This was based upon conceptual economic evaluations, and consideration of comparable size deposits of similar mineralisation style and tenor.

• The Mineral Resource cut-off grade for reporting open pit global gold resources for Condor, Crow and G Reef was 0.5 g/t Au. This was based upon reporting standards previously utilised at Golden Gate for Open Pit resources.

Mining factors

or

assumptions

• Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the

• It was assumed that the deposits will be mined mechanically via open pit methods, using 5 m high benches, with the potential for 2.5 m flitches. No dilution or cost factors have been applied to the estimate.



process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.

• It was assumed that Bartons could be potentially mined via medium to small scale mechanised underground mining methods. This assumption was based on conceptual economic evaluations and extraction methodologies utilised in comparable size deposits of similar mineralisation style and tenor.

• No dilution or cost factors have been applied to the estimate.

• The MRE extends nominally 220 m below surface. Entech considers material at this depth suitable to have a reasonable prospect of eventual economic extraction within an underground mining framework.

Golden Gate:

• It was assumed that the ABC Reef, D Reef, and Harrier deposits would be suitable for eventual economic extraction via medium to small scale mechanised underground mining methods. These assumptions were based on conceptual economic evaluations and extraction methodologies utilised in comparable size deposits of similar mineralisation style and tenor.

• ABC Reef, D Reef, and Harrier MRE’s extend nominally 245 m to 300 m below surface and were historically mined via open pit methods to an approximate depth of 70 m.

• It was assumed that the Condor, Crow, and G Reef deposits would be suitable for eventual economic extraction via conventional open pit mining methods. These assumptions were based upon mining methodologies utilised on comparable size deposits in operation at MOY’s Nullagine operation.

• Condor, Crow and G Reef deposits MRE’s extend nominally 60 m to 90 m below surface and were historically mined via open pit methods to an approximate depth of 40 m, 30 m and 35 m respectively.

• Condor North-West has not been historically mined.

• No dilution or cost factors have been applied to the estimate.

Metallurgical

factors or

assumptions

• The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an

• Metallurgical test work has been completed at all the deposits; recoveries are considered acceptable. Assumptions are based on treatment at Millenniums’ operational CIL gold processing facility.


• Metallurgical studies undertaken on recent drilling data (143 samples) indicated a gold recovery in fresh ore material ranging from 57.7% to 99.7% from leachwell analysis. The average gold recovery for fresh material beneath the current pit design is 85%. Higher grade material returned better gold recoveries than lower grade.

• It should be noted that Entech has relied on metallurgical studies undertaken by MOY and understands that the Bartons ‘fresh’ material from underground is able to be treated within the existing plant infrastructure with expected recoveries averaging 85%.

• Entech understands recent test work has indicated recoveries may be affected by a combination of


explanation of the basis of the metallurgical assumptions made.

graphitic shales and gold bound within arsenopyrite. Test work is ongoing and optimisation studies are underway at the time of the Mineral Resource Estimate.

• Future MRE updates should include estimation of Arsenic variable and geological interpretation of graphitic shale location, volumes to assist in metallurgical management at Bartons.

• No metallurgical recovery factors have been applied to the Mineral Resources or Resource Tabulations.

Golden Gate:

• The Golden Gate Oxide and Transitional Mineral Resources average a recovery of 60 to 80 % within the existing operations processing plant.

• The Golden Gate Fresh Mineral Resources average a recovery of 40% within the existing operations processing plant.

• Entech understands MOY do not plan to process Golden Gate Fresh Mineral Resources through existing processing infrastructure.

• A ‘Trade Off’ study is currently underway to assess several processing options which will improve recovery of Fresh resources, from which a decision to determine eventual processing plan for Golden Gate Mineral resources will be made.

• Entech understands two proposed options currently within the ‘Trade Off’ study include either a Flotation plant, or a Modular concentrating circuit on the tail end of existing CIL plant.

Available Testwork Reviewed:

• Relevant to proposed Flotation Plant processing. The following report was relied upon by Entech for determining metallurgical amenability and reasonable prospects for eventual economic extraction with respect to the reported Mineral Resources. Millennium Minerals Ltd, Gold Sulphide Project Scoping Study, CP1230-GN-RP-001_B, 16th September 2017 by DRA Pacific Pty Ltd.

o Fresh ore at ABC Reef, D Reef and Harrier is refractory. o Fresh ore at Condor, Crow, G Reef is currently untested and considered high risk of

being refractory. o Recoveries on Golden Eagle and Golden Gate fresh ore, within a proposed flotation

plant extraction process are estimated to be in the range +85%.

• Relevant to proposed Modular concentrating circuit (tails). Testwork currently underway, no testwork results available.

• The following assumptions, provided in verbal discussions with MOY, were relied upon by Entech for determining metallurgical amenability and reasonable prospects for eventual economic extraction with respect to the reported Mineral Resources:

o Recoveries on Golden Gate fresh ore through the combination of existing processing


infrastructure and proposed Modular concentrating circuit (tails) is expected to be within the ranges of +65%.

• Golden Gate Mineral Resources were reported and considered reasonable prospects for eventual economic extraction based on the assumption that they will be treated through either:

o a Flotation plant (outlined in the DRA report) with expected recoveries of 85% and above.

o Modular concentrating circuit (tails) with expected recoveries averaging +65%.

• Infrastructure for processing within a Flotation OR Modular concentrating circuit (tails) process are currently not part of the processing plant infrastructure at Millennium’s Nullagine operations. It is expected a decision on processing approach and infrastructure will be in place for treatment of Golden Gate Fresh Mineral Resources

• Arsenic and Sulphur were correlated with recoveries, thus need to be assayed and estimated for future MRE’s and PFS, DFS studies.

• No recovery factors have been applied to the Mineral Resources or Resource Tabulations.

Environmental

factors or

assumptions

• Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.

• Environmental surveys continue across the Nullagine Gold Project, including flora and fauna surveys and surface water assessments required for ongoing approvals to be submitted across a number of new and existing areas including Redbeard, Shearers North, Bow Bells, Agate, Angela, Hopetoun-Endeavour and Crossing resource targets. These assessments will compliment previous survey works and studies already completed across the project to provide regional assessment for the Nullagine Gold Project. Heritage surveys continue across the project with areas targeted for exploration operations to provide security of tenure for ongoing operations and security for the protection of heritage values in the area.


• Environmental approvals have been received for Bartons Underground.

Golden Gate:

• Environmental surveys have been completed within the Golden Gate project and expected infrastructure areas, including flora and fauna surveys required for ongoing approvals. These assessments will compliment previous surveys and studies and will lead into the assessment for both Underground and Open Pit mining at Golden Gate. Heritage surveys have been completed over the Golden Gate resource and likely infrastructure areas.

Bulk density • Whether assumed or determined. If assumed, the basis for the

• Specific gravity measurements were taken from drill core and were grouped into oxidation domains defined in the geological model; mean values were used as a dry bulk density factor on this basis.


assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.

• The bulk density of bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit.

• Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.

• SG’s determined using industry standard method of dried/sealed weight of core sample in water versus the dry weight in air. The Anne de Vidia, Majuba, Hut, Otways, Round Hill and Shearers were calculated using the calliper method.

• Full HQ (80%) and PQ core (20%) measured at a rate of 2-3/m of core; the current dataset consists of over 3,700 measurements; these are classified by both oxidation state and lithology.

• Blocks were assigned densities using weathering classification (oxide, transition or fresh).

• For deposits Crossing specific gravity measurements were calculated by helium purge pycnometer of RC chips by ALS Metallurgy.

• For deposits Agate, Angela, Billjimm South, Buzzard, Condor NW, Hopetoun-Endeavour, Mustang and Mundalla, specific gravity measurements were estimated by using the data from the nearest deposit and taking a conservative approach.


• Bulk density (1,517 records from 24 drill holes) was determined using the following methods: • Diamond drilling – weight in air / weight in water – measurements every 0.2 m in fresh. Approximately

0.1 m core length per sample.

• Displacement method (DIS) and half core immersion testing was carried out by SGS.

• Specific gravity measurements were grouped into oxidation and estimation domains defined in the geological model. Mean values were applied as a dry bulk density factor on this basis.

• The average bulk density for transition of 2.51 t/m3 is consistent with that used in the previous resource model. The average for background fresh rock is 2.76 t/m3. The average for mineralised domains is slightly higher, however the number of measurements is generally low. Over 1000 density measurements have been added to the database since the previous model was completed in August 2017. The fresh rock density applied previously was 2.66 t/m3 which was based on the pre-2017 data that contained a large proportion of whole core determinations. The 2017 data provides better coverage across the orebody and a significant number of the measurements were conducted at the laboratory. This accounts for the increase in the average fresh rock density since the previous model. The average of 2.76 t/m3 was applied to all fresh rock including mineralised domains

• Blocks were assigned densities using weathering classification (oxide, transition or fresh).

Golden Gate:

• Bulk density (730 records) was determined using the following methods: • Diamond Drilling – weight in air / weight in water – measurements every 0.2 m in fresh.

Approximately 0.1 m core length per sample.


• SG’s for two drillholes (GGMET010 and GGMET011) were obtained using the Caliper method whereby;

o 0.15 m long core lengths were selected, o Ends were cut to produce a cylinder, o Diameter was measured 3 times to give average diameter and measured length of

cylinder to calculate a volume, o Weighed undried and dried in the onsite oven for 24 hours and weighed again. Dry

density = dry weight/ volume.

• Displacement method (DIS) testing was carried out by SGS Australia Pty Ltd.

• Specific gravity measurements were grouped by oxidation and lithology domains defined by the geological model. Mean values were applied as a dry bulk density factor on this basis.

• Mean density values for oxide, transitional and fresh were assigned within the block model using weathering domains as hard boundaries.

Classification • The basis for the classification of the Mineral Resources into varying confidence categories.

• Whether appropriate account has been taken of all relevant factors (i.e. relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).

• Whether the result appropriately reflects the Competent Person’s view of the deposit.

• Mineral Resources have been classified on the basis of geological and grade continuity confidence, geological domaining, estimation quality parameters, drill spacing and reflect the Competent Person’s view on the deposit.

• The appropriate account has been taken of all relevant factors i.e. relative confidence in tonnage/grade computations, confidence in the continuity of geology and metal values, quantity, quality, and distribution of the data.

• For the CSA based resource, the classification process was based on an interpolation distance and minimum samples within the search ellipse as defined by the Micromine macro. The main components of the macro are summarised as follows:

• Initial classification: o The Mineral Resource was classed as Inferred if the average weighted sample distance

was greater than 50 m. o The Mineral Resource was classed as Indicated if the average weighted sample

distance was between 25 m and 50 m. o The Mineral Resource was classed as Measured if the average weighted sample

distance was less than 25 m.

• Numbers of drill holes -< 2- Measured and indicated resources downgraded one class. The initial classification was reviewed visually. Based on the initial classification, three solids rescat_meas, rescat_ind and rescat_inf were created to define Measured, Indicated and Inferred resources. This defined resource categories based on a combination of data density and geological confidence. The resource classification codes in the model are as follows: Measured Resource (class = 1) Indicated Resource (class = 2) Inferred Resource (class = 3) Unclassified Resource (class = 4)


• For the Millennium based resources, the classification process was based on geological confidence, drill spacing, slope of regression (SoR) value and validation versus the declustered mean.

• The mineral resource is classified as Inferred where there are at least 3-4 holes on separate sections and geological confidence is reasonable. If there is enough data to generate reliable statistics, slope of regression is also considered. The typical drill spacing for inferred is 40 metre line spacing with 20 metre spaced holes. Validation of the inferred resource against the naive and declustered means is also considered.

• The mineral resource is classified as Indicated where the geological confidence is good and there are a minimum of several holes supporting the interpretation on a minimum of 2 sections. The minimum drill spacing is usually 20 metres by 20 metres. Slope of regression and validation against the naïve and declustered means are also considered. The Slope of Regression is usually greater than 0.5 and the resource mean within 10% of the delustered sample mean.

• The mineral resource was classified as measured where the geological confidence is high and there are more than several holes supporting the interpretation on a minimum of 2 sections. The minimum drill spacing is 10 metres by 10 metres. Slope of Regression is greater than 0.5 and the resource mean is within 10% of the declustered sample mean. Resources that fall outside of this criterion are downgraded in classification.

• For the resources estimated by Dampier Consulting, resource classification was based upon confidence in the geological interpretation, the geostatistical continuity of the gold grade, and the density of informing drillholes.

• Blocks in areas with high geological confidence, immediately below the pit surface that was informed by samples within a distance less than two-thirds of the range of the variogram, filled in the first-pass estimation, were classified as Measured

• Blocks in areas of high geological confidence that were informed by samples within the full range of the variogram, filled in the first pass of estimation, were classified as Indicated

• Blocks in other areas of the mineralisation wire-frame informed by more than one drillhole were classified as Inferred

• Blocks in areas where there was only a single drillhole supporting the mineralised wire-frame were left unclassified.


• Mineral Resources were classified on the basis of geological and grade continuity confidence, geological domaining, estimation quality parameters, and nominal drill spacing.

• The delineation of Indicated and Inferred Mineral Resources appropriately reflect the Competent Person’s view on the deposit.


• Consideration has been given to all factors material to the Mineral Resource outcomes, including but not limited to: confidence in volume and grade delineation, continuity and preferential orientation of high grade shoots; quality of data underpinning Mineral Resources, mineralisation continuity experienced during open pit operations and variability of alternate volume interpretations and grade interpolations (sensitivity analysis).

• In addition to the above factors the classification process considered nominal drill hole spacing and estimation quality (conditional bias slope, number of samples, distance to informing samples).

• Indicated Mineral Resources were defined where a moderate level of geological confidence in geometry, continuity, and grade was demonstrated, and were identified as areas where:

• Good support from drilling – where drilling was within 20 m of a block estimate and with greater than six informing samples; and

• Estimation quality was considered reasonable, as delineated by a conditional bias slope above 0.6.

• Inferred Mineral Resources were defined where a low level of geological confidence in geometry, continuity and grade was demonstrated, and were identified as areas where:

o Drill spacing was averaging a nominal 40 m or less, or where drilling was within 40 m of the block estimate; and

o Estimation quality was considered low, as delineated by a conditional bias slope between 0.3 to 0.6.

Golden Gate:

• Mineral Resources were classified on the basis of geological and grade continuity confidence, geological domaining, estimation quality parameters, and nominal drill spacing.

• The delineation of Indicated and Inferred Mineral Resources appropriately reflect the Competent Person’s view on the deposit.

• Consideration has been given to all factors material to the Mineral Resource outcomes, including but not limited to: confidence in volume and grade delineation, continuity and preferential orientation of high grade shoots; quality of data underpinning Mineral Resources, mineralisation continuity experienced during open pit operations and variability of alternate volume interpretations and grade interpolations (sensitivity analysis).

• In addition to the above factors the classification process considered nominal drill hole spacing and estimation quality (conditional bias slope, number of samples).

• Indicated Mineral Resources were defined where a moderate level of geological confidence in geometry, continuity, and grade was demonstrated, and were identified as areas where:


o Good support from drilling – averaging a nominal 20 m or less between drill holes; and o Estimation quality was considered reasonable, as delineated by a conditional bias

slope above 0.6.

• Inferred Mineral Resources were defined where a low level of geological confidence in geometry, continuity and grade was demonstrated, and were identified as areas where:

o Drill spacing was averaging a nominal 40 m or less, or where drilling was within 50 m of the block estimate; and

o Estimation quality was considered low, as delineated by a conditional bias slope between 0.2 to 0.6.

Audits or

reviews

• The results of any audits or reviews of Mineral Resource estimates.

• The estimates completed by Millennium were peer reviewed internally by Millennium Minerals geological department.


• Internal Audits and peer review were undertaken by Entech with a focus on independent resource tabulation, block model validation, verification of technical inputs, and approaches to domaining, interpolation, and classification.

Golden Gate:

• Internal Audits and peer review were undertaken by Entech with a focus on independent resource tabulation, block model validation, verification of technical inputs, and approaches to domaining, interpolation, and classification.

Discussion of

relative

accuracy/

confidence

• Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion

• The current Mineral Resource models provide robust global estimates of the in situ Au mineralisation in the deposits.

• No formal confidence intervals have been derived by geostatistical or other means; however, the use of quantitative measures of estimation quality such as the Kriging efficiency and the slope of regression allow the Competent Person to be assured that appropriate levels of precision have been attained within the relevant resource confidence categories

• With respect to Mineral Resources estimated at the deposits, the geological interpretation for geology, weathering and mineralisation domains are adequate for the estimation of Measured, Indicated and Inferred Mineral Resources.

• Mining of many of the deposits and project to date reconciliation with the resource estimate provides a further degree of assurance in the estimates results.

• A 2013 comparison of mining-depleted Ore Reserve at Golden Eagle with the Base-Case Financial


of the factors that could affect the relative accuracy and confidence of the estimate.

• The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.

• These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

Model Ore Reserve reconciled to within 500 ounces of gold; this is considered good agreement.


• Variances to the tonnage, grade, and metal of the Mineral Resource estimate is expected with further definition drilling. It is the opinion of the Competent Person that these variances will not significantly affect economic extraction of the deposit.

• The Mineral Resource statement relates to global tonnage and grade estimates.

• No formal confidence intervals nor recoverable resources were undertaken or derived.

• With respect to Mineral Resources estimated at the deposits, the geological interpretation for geology, weathering, and mineralisation domains are adequate for the estimation of Indicated and Inferred Mineral Resources.

Golden Gate:

• Variances to the tonnage, grade, and metal of the Mineral Resource estimate is expected with further definition drilling. It is the opinion of the Competent Person that these variances will not significantly affect economic extraction of the deposit.

• The Mineral Resource statement relates to global tonnage and grade estimates.

• No formal confidence intervals nor recoverable resources were undertaken or derived.

• With respect to Mineral Resources estimated at the deposits, the geological interpretation for geology, weathering, and mineralisation domains are adequate for the estimation of Indicated and Inferred Mineral Resources.

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.)


Mineral Resource estimate for conversion to Ore Reserves

• Description of the Mineral Resource estimate used as a basis for the conversion to an Ore Reserve.

Clear statement as to whether the Mineral Resources are reported additional to, or inclusive of, the Ore Reserves.

• Mining depletion was applied to all applicable estimates. Golden Eagle and Au81 were updated to 30 June 2018, whilst the other deposits were depleted to the end of the previous mining campaign. All mining depletions were done utilising dtm models of the final mined pit. For the Golden Eagle and Au81 Sulphide Reserves (listed separately), mining depletion was conducted utilising the current designs prior to work beginning.

• A technical description of the Mineral Resource is presented in the preceding sections to this table.

• The Mineral Resource are reported as wholly inclusive of the Ore Reserves.

• The following resources were utilised for the Reserve Calculations


Site visits • Comment on any site visits undertaken by the Competent Person and the outcome of those visits

• If no site visits have been

• The Competent Person for this Ore Reserves Statement is a full time employee of Millennium Minerals Ltd and visits the site on a regular basis.

• The Competent Person for previous releases (excluding the Bartons Underground) were at the time of the release full time Millennium Minerals employees.

• The Competent Person for the Bartons Underground did not visit site to verify the

Prospect Model

Agate agate_bm_ok_dec2016_jorc.mdl

All Nations an_ju_bm_ok_feb2018.mdl

Angela angela_bm_ok_dec2016.mdl

Anne de Vidia adv_bm_ok_april2018.mdl

Au81 West au81_area_bm_ok_june2018.mdl

Bartons Underground bartons_bm_deeps_entech_bm_exports.mdl

Bow Bells bowbells_inc_rh__bm_ok_oct2016.mdl

Condor North West condornw_bm_ok_v1_jan2017.mdl

Crossing crossing_bm_ok_sept_2016.mdl

Gambols gambols_bm_ok_nov2017.mdl

Golden Eagle ge_bm_ok_may2018.mdl

Hopetoun-Endeavour end_htoun_bm_ok_dec2016.mdl

Hut hut_bm_ok_july2016_opt

Mundalla mund_shnth_insitu_bm_20180111.mdl

Mustang mustang_insitu_bm_ok_dec2017.mdl

Otways got_bm_ok_0pt7cut_sept2016.mdl

Redbeard rb_insitu_bm_ok_june2018.mdl

Roscoes Reward / Little Wonder rr_lw_bm_ok_jan2018.mdl

Round Hill roundhill_bm_ok_oct2016.mdl

Shearers shearers_bm_ok_20180309.mdl

Shearers North mund_shnth_insitu_bm_20180626.mdl


undertaken indicate why this is the case

provided data. The Competent Person is satisfied that the descriptions of the planned infrastructure and locality provided by Millennium Minerals Ltd (MOY), along with survey data, are sufficient information to carry out the mine design and classify the Ore Reserves. The Competent Person has liaised closely with A. Finch (responsible for the Mineral Resource estimate), who visited site on 12th-13th July 2017. The Competent Person has viewed relevant drill core photographs and drill traces to assist in estimating the Ore Reserve.

Study status • The type and level of study undertaken to enable Mineral Resources to be converted to Ore Reserves.

• The Code requires that a study to at least Pre-Feasibility Study level has been undertaken to convert Mineral Resources to Ore Reserves. Such studies will have been carried out and will have determined a mine plan that is technically achievable and economically viable, and that material Modifying Factors have been considered.

• The Nullagine Gold Project is currently in production, and such an operational mine plan exists. Thus, where available, actual operational costs, values and parameters have been utilised for Modifying Factors as part of this updated Ore Reserve, else existing Modifying Factors have been applied.

• Actual operating costs and modifying factors have been applied in the pit optimisation and Ore Reserve estimates. End of month survey pickups as on June 2018 have been used to deplete material already mined from in-situ material.

• No Inferred Mineral Resource is included in any of the updated Ore Reserves estimates. Inferred material may be mined as a consequence of mining the Measured and Indicated Mineral Resource material. This material has been considered as waste during the economic evaluation of the pits.

• The All Nations, Anne de Vidia, Au81, Gambols, Golden Eagle Otways, Roscoes Reward, Little Wonder and Shearers Sulphide reserves have been determined utilising Whittle to optimise the best possible pit. Conservative slope angles (40O) have been used to represent the additional waste material required for ramp access. Due to the nature of the testwork continuing for the Sulphide Expansion plant, these reserves are only considered to represent Pre-Feasibility level standard.

Cut-off parameters • The basis of the cut-off grade(s) or quality parameters applied.

• Economic cut-off grades are calculated for all the deposits.

• Due to varying ore haulage transit costs (deposit-to-mill) and weathering factors (varying the mill recoveries), multiple economic cut-offs exist. The cutoff grade for each deposit are included within the Ore Reserve table.:

• Note that due to variable recoveries at Golden Eagle deposit, the cut off grades vary based on recoveries

Mining factors or assumptions

• The method and assumptions used as reported in the Pre-Feasibility or Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. either by application of

• The method used to convert Mineral Resources to Ore Reserves is based upon pit optimisation to identify the economic shell within with a design process completed to achieve a practical mine design. All Oxide Pits have practical mine designs. Due to the level of work still underway for the Sulphide Expansion Plant, only optimisations have been carried out for the Sulphide Pits.


appropriate factors by optimisation or by preliminary or detailed design).

• The choice, nature and appropriateness of the selected mining method(s) and other mining parameters including associated design issues such as pre-strip, access, etc.

• The assumptions made regarding geotechnical parameters (e.g. pit slopes, stope sizes, etc), grade control and pre-production drilling.

• The major assumptions made and Mineral Resource model used for pit and stope optimisation (if appropriate).

• The mining dilution factors used.

• The mining recovery factors used.

• Any minimum mining widths used.

• The manner in which Inferred Mineral Resources are utilised in mining studies and the sensitivity of the outcome to their inclusion.

• The infrastructure requirements of the selected mining methods.

• As the Nullagine Gold Project is currently in production, any mining factors applied as part of this updated Ore Reserve are based on actual data sourced from the project.

• The mining method is conventional drill and blast and load and haul with an excavator and large open pit mining equipment. A combination of a 90 tonne rigid truck fleet and 40 tonne articulated fleet are currently being used at the Nullagine Project to mine the varying Ore Reserves.

• The geotechnical parameters are based on the recommendations from a geotechnical study by independent consultants with 15m to 20m batter heights, 550 - 700 batter angles and 5m to 10m wide berms. Geotechnical Consultants have an ongoing involvement with the project and recommendations made reflect operational reviews following site visits over the course of the project.

• Mining loss factor of 5% is applied in the pit optimisation and Ore Reserve estimation process.

• A mining dilution factor of 10% is applied in the pit optimisation and Ore Reserve estimation process.

• No Inferred Mineral Resource are included in the Ore Reserves estimation process

• A 12m mining width is applied on all benches except good-bye cuts to allow for truck access.

• A 10% to 14% - gradient and 9m to 14m width (including safety windrow) are used for in-pit ramp.

• Most infrastructure required has already been established on the Nullagine gold project. Infrastructure requirements for the Redbeard deposit have been determined and are currently being established, but were considered as part of the economic evaluation of the project.

Bartons Underground

• The Ore Reserve is planned to be mined using a bottom-up mechanised longhole stoping method incorporating continuous cemented rock fill (CRF) for stability. Areas without top access have had in-situ pillars left unmined for support. Diesel powered trucks and loaders will be used for materials handling. Diesel-electric jumbo drill rigs will be used for development and ground support installation, and diesel-electric longhole rigs used for production drilling.

• The mining method chosen is well-known and widely used in the local mining industry, and production rates and costing can be predicted with a suitable degree of accuracy. The method has been chosen based on the spatial characteristics of the orebody, geotechnical analysis, and location of the mine.


• Suitable access will be available through the existing open pit, which is currently being mined. Portal locations have been determined based on geotechnical advice.

• The Ore Reserve is planned to be mined using a bottom-up mechanised longhole stoping method incorporating continuous cemented rock fill (CRF) for stability. Areas without top access have had in-situ pillars left unmined for support. Diesel powered trucks and loaders will be used for materials handling. Diesel-electric jumbo drill rigs will be used for development and ground support installation, and diesel-electric longhole rigs used for production drilling.

• The mining method chosen is well-known and widely used in the local mining industry, and production rates and costing can be predicted with a suitable degree of accuracy. The method has been chosen based on the spatial characteristics of the orebody, geotechnical analysis, and location of the mine.

• Suitable access will be available through the existing open pit, which is currently being mined. Portal locations have been determined based on geotechnical advice.

• Independent geotechnical consultancy Ground Control Engineering Pty Ltd has contributed appropriate geotechnical analyses to a suitable level of detail. These form the basis of mining method selection, mine design, mining factors, and ground support design for the Ore Reserve estimate.

• Independent geotechnical consultancy MineGeoTech Pty Ltd has provided advice on placement of portals within the Bartons open pit.

• The Mineral Resource model used for stope optimisation was the Bartons UG Mineral Resource update reported concurrent with this Ore Reserve.

• Stope economics were determined using the cut-off grade revenue and cost inputs. A minimum stoping width of 4.2 m (i.e. ore drive width) was applied. A sub-level interval of 17 m, and stope section strike length of 5.0 m, were also applied.

• All stopes were designed to a minimum mining width of 4.2 m (i.e. ore drive width), based on geotechnical recommendations. Additional unplanned dilution was included where stopes were wider than 4.2 m. This provided an average stope dilution of 36%. Stope dilution grade was determined as 1.07 g/t based on average contained halo grades within 0.5 m of stope walls.

• In addition to this rock dilution, an average 4% dilution at waste grade was applied to model overdig of fill.

• No dilution was applied to ore development, based on expectations of application of appropriate drill and blast practices and perimeter control.

• An 85% mining recovery was applied to crown stopes designed to break into the pit floor. A 95% mining recovery factor was applied to all other stoping.


• Full-height in-situ rib pillars were retained in areas unable to be filled to honour the geotechnical hydraulic radius recommendations.

• Ore development had an assumed 100% mining recovery, based on historical experience and industry standards.

• Modifying factors used to derive the Ore Reserve are presented below.

• An 85% mining recovery was applied to crown stopes designed to break into the pit floor. A 95% mining recovery factor was applied to all other stoping.

• Full-height in-situ rib pillars were retained in areas unable to be filled to honour the geotechnical hydraulic radius recommendations.

• Ore development had an assumed 100% mining recovery, based on historical experience and industry standards.

• Modifying factors used to derive the Ore Reserve are presented below.

Modifying Factors (Global) Variance (Resource vs Mineable)

Mining Dilution FR Stope

Mining Ore Loss FR Stope

Ore Tonnes Adjustment Ore Grade

Adjustment

Total Milled Metal

Adjustment

Bartons UG 40% 12% 30% 6% 9%

• A minimum mining width of 4.2 m was assumed based on the geotechnical recommendations.

• Only the Indicated portion of the Mineral Resource was used to estimate the Ore Reserve. Any Inferred or Unclassified material contained within the Ore Reserve design had grade set to waste for the purposes of optimisation and evaluation. The Ore Reserve is technically and economically viable without the inclusion of Inferred Mineral Resource material.

• The Ore Reserve mine plan will require installation of infrastructure including electrical power (generation, transmission, and distribution), water and compressed air supply, a dewatering system to surface, changerooms, laydown yards, explosives magazines and ventilation infrastructure. Offices, ablutions and workshops are currently on-site for the open pit mining works and this infrastructure will be incorporated into the underground operations. Suitable access and haul roads exist at Bartons.


Metallurgical factors or assumptions

• The metallurgical process proposed and the appropriateness of that process to the style of mineralisation.

• Whether the metallurgical process is well-tested technology or novel in nature.

• The nature, amount and representativeness of metallurgical test work undertaken, the nature of the metallurgical domaining applied and the corresponding metallurgical recovery factors applied.

• Any assumptions or allowances made for deleterious elements.

• The existence of any bulk sample or pilot scale test work and the degree to which such samples are considered representative of the orebody as a whole.

• For minerals that are defined by a specification, has the ore reserve estimation been based on the appropriate mineralogy to meet the specifications?

• The existing Nullagine Processing facility will be utilised for processing the Ore

• The Nullagine processing plant is currently in operation and has been since 2012. It is an industry standard 1.5 Mt pa primary crusher, SAG mill, gravity circuit and carbon-in-leach tankage facility.

• This is conventional, well-tested technology, and is appropriate for the lode style of mineralisation in all the Project deposits, as demonstrated by successful plant operation since commercial production was declared in February 2013.

• Recovery factors of 70% to 95% (varies between deposits) have been assumed in the estimation of the Ore Reserves for the Oxide Pits. The recovery factors are based on comprehensive test work on metallurgical core holes, mini BLEG and Leachwell analyses on RC and Diamond Core samples.

• A Sulphide Expansion plant is planned for establishment on site in Q1 2019. Recovery improvement of 50% of the previous tails are the base case scenario (supported by completed testwork) have been considered for the Sulphide Pits. Further improvements of the tails have been achieved and are being further developed which will improve the recoveries of the Sulphide Reserves. The technology being considered for the expansion is a fine grind, intense cyanidation process which is in use at other Australian Gold Mining Operations.

• The Ore Reserves are quoted ‘delivered to mill’ basis; this excludes metallurgical recovery factors.

• No allowance was made for deleterious elements as none of concern were noted in work to date.

Environmental • The status of studies of potential environmental impacts of the mining and processing operation. Details of waste rock characterisation and the consideration of potential sites, status of design options considered and, where applicable, the status of approvals for process residue storage and waste dumps should be reported.

• As the Nullagine Gold Project is currently in operation and as such the appropriate Environmental Management Plans (EMP) have been submitted and approved by the Department of Mines. The EMP will be reviewed on a continuous basis.

• Environment approvals have been obtained for Bartons, Round Hill, Gambols Hill, Roscoes Reward, AU81 (inc West), Golden Eagle, Shearers, Mustang, Condor North-West, Angela, Agate, Hopetoun-Endeavour, All Nations, Crossing and Bow Bells.

• All environmental approvals for, Shearers North, Hut and Mundulla are expected to be awarded in line with the mining plan.

• Waste Rock Dump designs take into consideration any Potential Acid Forming Material (PAF) and are design to meet the license requirements. Designs take into consideration stability and erosion measures and will be rehabilitated as per the license requirements.


• Hydrology studies completed for both surface and ground water flows, with no significant considerations for the proposed mining operations.

Infrastructure • The existence of appropriate infrastructure: availability of land for plant development, power, water, transportation (particularly for bulk commodities), labour, accommodation; or the ease with which the infrastructure can be provided, or accessed.

• The appropriate infrastructure is currently in place as this is an operating mine.

• Accommodation facilities, transportation and power infrastructure are all in place onsite. Access to air transport and labour have been obtained.

Costs • The derivation of, or assumptions made, regarding projected capital costs in the study.

• The methodology used to estimate operating costs.

• Allowances made for the content of deleterious elements.

• The derivation of assumptions made of metal or commodity price(s), for the principal minerals and co- products.

• The source of exchange rates used in the study.

• Derivation of transportation charges.

• The basis for forecasting or source of treatment and refining charges, penalties for failure to meet specification, etc.

• The allowances made for royalties payable, both Government and private.

• Adequate capital costs were considered in this study for development of new open pits and underground.

• The Nullagine Gold Project is currently in production. The mining and processing costs applied in the pit optimisation are based on actual operational costs.

• All costs are in Australian Dollars so no direct exchange rate has been applied.

• The additional cost of hauling the ore material from each mining site to the existing processing plant is included and appropriately adjusted, to provide final tailored processing costs per satellite site.

• Allowances were made for government royalties, native titles and refining charges.

WA State Government Royalty 2.5%

Native Title 1%

RSI Royalty 1.5%

Tyson royalty A$10/Oz

Wakeford royalty 2.5%

• Third party royalties and additional cartage costs (to transport ore to the processing plant where required) have been included within the Cut-off Grade determination for each pit.

• The following table outlines the applicable Third Party Royalties


Revenue factors • The derivation of, or assumptions

made regarding revenue factors including head grade, metal or commodity price(s) exchange rates, transportation and treatment charges, penalties, net smelter returns, etc.

• The derivation of assumptions made of metal or commodity price(s), for the principal metals, minerals and co-products.

• A gold price of A$1650/oz has been used in the pit optimisation for Ore Reserve estimates and for reporting cut-off grades. Appropriate allowances were made for government royalties, native titles and refining charges.

• A gold price of A$1550.oz has been used for optimisation and calculation of cut of grade for Bartons Underground

Market assessment • The demand, supply and stock situation for the particular

• Production from the Nullagine Gold project is sold as a mixture of spot and hedges gold sales.

Prospect Model Third Party Royalties

Agate agate_bm_ok_dec2016_jorc.mdl Tyson

All Nations an_ju_bm_ok_feb2018.mdl Tyson

Angela angela_bm_ok_dec2016.mdl Tyson

Anne de Vidia adv_bm_ok_april2018.mdl Tyson

Au81 West au81_area_bm_ok_june2018.mdl Wakeford

Bow Bells bowbells_inc_rh__bm_ok_oct2016.mdl RSI

Crossing crossing_bm_ok_sept_2016.mdl Tyson

Gambols gambols_bm_ok_nov2017.mdl Tyson

Golden Eagle ge_bm_ok_may2018.mdl Tyson

Hut hut_bm_ok_july2016_opt Tyson

Mundalla mund_shnth_insitu_bm_20180111.mdl Tyson

Mustang mustang_insitu_bm_ok_dec2017.mdl RSI

Otways got_bm_ok_0pt7cut_sept2016.mdl Tyson

Roscoes Reward / Little Wonder rr_lw_bm_ok_jan2018.mdl RSI

Round Hill roundhill_bm_ok_oct2016.mdl RSI

Shearers shearers_bm_ok_20180309.mdl Tyson

Shearers North mund_shnth_insitu_bm_20180626.mdl Tyson


commodity, consumption trends and factors likely to affect supply and demand into the future.

• A customer and competitor analysis along with the identification of likely market windows for the product.

• Price and volume forecasts and the basis for these forecasts.

• For industrial minerals, the customer specification, testing and acceptance requirements prior to a supply contract.

• The demand for gold is not expected to change.

Economic • The inputs to the economic analysis to produce the net present value (NPV) in the study, the source and confidence of these economic inputs including estimated inflation, discount rate, etc.

• NPV ranges and sensitivity to variations in the significant assumptions and inputs.

• The Ore Reserves have been evaluated through the standard financial model. All operating and capital costs have been included in the financial model. The process has demonstrated that Ore Reserves have a positive NPV.

• The Ore Reserve estimate is based on a financial evaluation prepared at a pre-feasibility study level of accuracy. Mining operations, processing, transportation, sustaining capital, and contingencies, have been scheduled and evaluated to generate a full life of mine financial model.

• Cost inputs have been sourced from contractors or generated from database information relating to the relevant area of discipline.

• A discount rate of 10% has been applied.

• The NPV of the project is positive at the assumed commodity price.

• Sensitivity analysis shows that the project is most sensitive to commodity price/exchange rate movements. The project is still economically viable at unfavourable commodity price adjustments of 10%.

Social • The status of agreements with key stakeholders and matters leading to a social licence to operate.

• All key stakeholder agreements, including Native title and Pastoral Lease holder agreements, are in place. The Company has close working relationships with communities surrounding the Project.

Other • To the extent relevant, the impact of the following on the project and/or on the estimation and classification of the Ore Reserves:

• Any identified material naturally occurring risks.

• The status of material legal

• The Nullagine Gold Project is currently in operation. Therefore, much of the standard pre-operational estimates and unknowns that can be associated with Pre-Feasibility or Feasibility studies have little or no application to this updated Ore Reserve.

• There are no known significant naturally occurring risks to the project.

• Full government statutory approvals have been received for All Nations, Rosoce Reward, Round Hill, Gambols Hill, Mustang, AU81 West, Bartons, Condor North-West, Hut, Mundalla and Golden Eagle. The mining approvals process for the remaining deposits


agreements and marketing arrangements.

• The status of governmental agreements and approvals critical to the viability of the project, such as mineral tenement status, and government and statutory approvals. There must be reasonable grounds to expect that all necessary Government approvals will be received within the timeframes anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss the materiality of any unresolved matter that is dependent on a third party on which extraction of the reserve is contingent.

(Redbeard, Shearers North, Bow Bells, Agate, Angela, Hopetoun-Endeavour and Crossing have commenced and are expected to be received within the timeframes anticipated in the Life of mine plan.

• All current deposits are located on granted Mining Leases.

Classification • The basis for the classification of the Ore Reserves into varying confidence categories.

• Whether the result appropriately reflects the Competent Person’s view of the deposit.

• The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if any).

• All Proved and Probable Ore Reserves have been derived from Measured and Indicated Mineral Resources respectively.

• Measured Mineral Resources were downgraded to Probable Ore Reserves for all pits not currently being mined. Due to the nature of the study status, all Sulphide Pits are only considered to be proposal ore reserves.

• The estimated Ore Reserves are, in the opinion of the Competent Person, appropriate for this style of deposit.

Audits or reviews • The results of any audits or reviews of Ore Reserve estimates.

• An internal audit of the Ore Reserve estimate has been carried out.

• The Ore Reserves estimation for the Bartons Underground has been subjected to an internal review by Entech’s senior technical personnel in January 2018.

Discussion of relative accuracy/ confidence

• Where appropriate a statement of the relative accuracy and confidence level in the Ore Reserve estimate using an approach or procedure deemed appropriate by

• The Nullagine Gold Project is currently in production and therefore actual operational costs, values and parameters have been utilised. The Mineral Resource and Ore Reserves are considered to be an extension of current operations

• The accuracy of the estimates will be subject to regular reconciliation and ongoing monitoring.


the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the reserve within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors which could affect the relative accuracy and confidence of the estimate.

• The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.

• Accuracy and confidence discussions should extend to specific discussions of any applied Modifying Factors that may have a material impact on Ore Reserve viability, or for which there are remaining areas of uncertainty at the current study stage.

• It is recognised that this may not be possible or appropriate in all circumstances. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

Bartons Underground

• The design, schedule, and financial model, on which the Ore Reserve is based has been completed to a Pre-Feasibility Study standard, with a corresponding level of confidence.

• All modifying factors have been applied to designed mining shapes on a global scale.

• Considerations in favour of a high confidence in the Ore Reserve include:

• The mining process is well-known, small scale and utilises proven technology and methods widely used in the industry, with sufficient data to generate adequate costing estimates to pre-feasibility standard.

• The processing plant has previously treated the Bartons ore.

• Considerations in favour of a lower confidence in the Ore Reserve include:

• Future commodity price forecasts carry an inherent level of risk.

• There is a degree of uncertainty associated with geological estimates. The Ore Reserve classifications reflect the levels of geological confidence in the estimates.

• There is a degree of uncertainty regarding estimates of impacts of natural phenomena including geotechnical assumptions, hydrological assumptions, and the modifying mining factors, commensurate with the level of study.

• Testwork and historical production data has shown the ore is metallurgically complex. The potential impact of graphitic shales and arsenopyritic ore materials is to be analysed in more detail.

• Further, i.e. quantitative, analysis of risk is not warranted or considered appropriate at the current level of technical and financial study.

Millennium delivers 38% interim increase in Ore Reserves ... · • Millennium’s aggressive...

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