ASX

Announcement

Predictive Discovery Limited is a gold exploration company with strong technical capabilities focused on its advanced gold exploration projects in West Africa.

ASX: PDI

Issued Capital: 1.63B shares

Share Price: 1.4 cents

Market Capitalisation:

$22.8M

Directors

Phillip Jackson

Non-Exec Chairman

Paul Roberts

Managing Director

David Kelly

Non-Executive Director

13th October 2016

More drill results from Boundiali, Cote D'Ivoire

Predictive Discovery Limited (ASX: PDI) reports the last of the gold assay results from the RC drilling program completed by Toro Gold Limited (Toro) on the Nyangboue Prospect in Predictive's Boundiali Project in Cote D'Ivoire.

• Best new drill intercept in hole BRC010 of 4m at 5.4g/t Au from 4m, including 1m at 15.2g/t Au, 320m along strike from previously reported gold intercepts.

• Multiple gold mineralised zones have now been recognised over a strike length of at least 1.2km from very widely spaced drilling:

  • The main (eastern) mineralised zone (Figure 1) with best intercepts of 20m at 10.5g/t Au and 28m at 4.0g/t Au (ASX releases 23/6/16 and 8/8/16).

  • Several mineralised zones located to the west of the main mineralised zone. The BRC010 drill result suggests that at least one of these zones could extend over a strike length of 500m or more.

  • Clear line to line correlation on the 1.2km long main zone, suggesting a single mineralised shear zone.

• Assay results for all drill holes from the recent drill program have now been received.

• Follow-up work in the new field season will consist of ground geophysics and Diamond drilling.

Mr Paul Roberts, Predictive's Managing Director, said: "With the receipt of all the reconnaissance RC results, we now know that a significant new gold discovery has been made. Our next task is to understand the geological structure of the Nyangboue Prospect so that we can infill drill the mineralisation efficiently. We will use ground geophysical methods to map structures followed by a program of Diamond drilling to map the orientation of individual gold mineralised zones. Armed with this new knowledge, we hope to be in a position to design an infill RC drilling program that will lead us efficiently towards resource estimation.

The Nyangboue Prospect has a number of positive characteristics including (1) gold intercepts from surface, (2) individual high grades in many intercepts, suggesting that a plus 2g/t Au bulk grade is a strong possibility, (3) abundant visible gold in higher grade intervals suggesting simple metallurgy and (4) initial indications of good continuity in the controlling structure(s). There are also several other very good prospects on the permit which are, as yet, untested by drilling."

Figure 1: RC drill hole collar locations on a gold-in-soil geochemical contour plan (reported to the ASX on 23/2/16) in the southern 2km portion of the Nyangboue Prospect. Gold-in-soil geochemical contours are superimposed on satellite imagery. The interpreted surface outline of the eastern "main" zone gold mineralisation is shown in black and the inferred locations of the western mineralised zones are shown as dashed black lines. Assays for the holes shown as black dots were reported to the ASX on 23/6/16, 25/7/16, 8/8/16 and 12/9/16. Results reported today are from holes shown as white dots.

BOUNDIALI DRILLING PROGRAM (NYANGBOUE PROSPECT)

The RC drilling program on the Boundiali permit consisted of a total of 92 RC holes and 5,496m drilled. The program was designed to test a 2km long zone of strong and coherent gold-in-soil anomalies (Figure 1). These lie at the southern end of the Nyangboue Prospect, a 6km long gold- in-soil anomaly (Figure 2) first reported to the ASX on 20/10/15.

The RC holes were drilled:

• on eight east-west oriented lines, of which six are spaced 320m apart. The northernmost and southernmost lines are 160m from their neighbours (Figure 1). Hole collars are approximately 40m apart,

• mostly to depths of 50-60m, with the exceptions of a few holes which were extended or re-drilled to depths of up to 130m,

• towards the west and angled at 50 degrees.

  Additional details of the drill and assay methodologies employed in this program are reported in Table 1.

  The first four sets of drill results (ASX releases dated included the following drill intercepts:

• BRC003 - 28m at 4.04g/t Au from 3m, including 1m at 49.7g/t Au

• BRC004 - 20m at 1.97g/t Au from 0m

• BRC004 - 14m at 5.51g/t Au from 32m, including 1m at 31.6g/t Au

• BRC004BIS (twin hole) - 20m at 10.45g/t Au from 38m including 1m at 145.5g/t Au

• BRC006 - 9m at 7.9 g/t Au from 99m including 1m at 44.7g/t Au

• BRC023 - 7m at 3.8g/t Au from 33m including 1m at 11.3g/t Au

• BRC048 - 28m at 1.55g/t Au from 1m including 1m at 27.4g/t Au

• BRC010 - 30m at 0.92g/t Au from 14m including 2m at 7.68g/t Au

• BRC085 - 1m at 10.65g/t Au from 37m.

  Results from the 20 remaining drill holes are released here (Table 1). As reported on 12th September, 2016, receipt of these last results was delayed by an equipment breakdown at Toro Gold's Mako sample preparation facility.

  The best new result was from drill hole BRC010 - 4m at 5.38g/t Au from 4m including 1m at 15.15g/t Au. Most of the new results were from the northernmost two lines in which the best result was 2m at 1.55g/t Au. The gold mineralisation appears to be closed off in the immediate area to the north however it remains open to the south and 4km of gold-anomalous soil values further to the north remain untested by drilling.

  While the eastern "main zone" gold mineralised trend is a straight NNE striking zone, the orientation of the mineralisation in individual gold intercepts is not yet clear. It is possible that there are some cross structures controlling higher grade shoot development. A program of surface geophysics followed by Diamond drilling is planned to resolve this question.

  As noted in earlier ASX releases, initial observations from logging these drill holes and mapping the limited rock exposures at surface are as follows:

• The mineralised zone appears to lie within a large and complex ductile shear zone containing:

  • Quartz-sericite schists which are interpreted to be derived from volcano- sedimentary rocks,

  • granitic intrusives,

  • sediments,

  • felsic volcanics with quartz phenocrysts,

  • possible mylonites (extremely strongly sheared rocks) and

  • possible mafic volcanics.

• Sparse rock outcrops indicate that shearing dips steeply to the east, which is why holes were drilled towards the west.

• Gold values are generally associated with zones of quartz veining (1-2cm veinlets - both smoky grey quartz and white quartz.

• Visible gold has been panned from some of the RC drill chips and fines. Follow-up screen fire assays on intervals with high gold grades and/or visible gold are therefore planned.

• The dip and dip direction of the mineralisation is not yet well understood.

• The sheared rock sequence contains minor sulphides, including pyrite, pyrrhotite and arsenopyrite.

Figure 2: Toro Gold soil sampling grid covering the entire Boundiali exploration permit (results reported to the ASX on 20/10/15 and 23/3/16). Results in grade intervals are shown for all of Toro soil results to date. The large Nyangboue Prospect gold anomaly and two other coherent gold anomalies are highlighted on this map. Rock chip sample locations are shown as small black triangles.