Facsimile
ASX: FNT
ASX Limited
Company Announcements Office
20th October 2014
DRILLING IS TARGETING THE VERY HIGH GRADE GOLD AT THE UPPER ZONE, SWIT KIA PROSPECT, EL 1595 - BULAGO, PAPUA NEW GUINEA
Frontier Resources Ltd is very pleased to announce that drilling commenced yesterday at the very high grade gold Upper Zone of the Swit Kia Prospect, EL 1595 - Bulago in PNG.
Chairman & Managing Director Peter McNeil M.Sc., commented:
Frontier has commenced its Diamond core drilling program (HQ triple tube) at the very high grade gold Upper
Zone of the Swit Kia Prospect and it should take 4 weeks to complete. Swit Kia is PNG Tok Pisin for sweet food, dessert or tasty food.
I was in PNG from mid-September and weather, a lack of general availability of aircraft and other challenges combined to produce a protracted and difficult mobilisation for our 18 tonnes of drilling equipment, fuel, food and people. I will now return to supervise the drilling program onsite.
Drill Pad 1 is located in the central sector of Swit Kia near the top end of Trench 1, which returned 1.0m grading 499 g/t gold in
jackhammer trench intercept at the upslope intrusive /hostsiltstone contact. The first drill hole is targeting this and the other exceptional jackhammer gold assay intercepts downslope.
There were 12 different jackhammer samples with >100 g/t gold in the target zone and others located ~125m to the east that graded
2m of 190 g/t gold and 20m to the west that graded 1m of 128 g/t gold. These strike extensions will be drill tested when possible.
The very high grade nature of the gold requires that we obtain the best areal coverage of the mineralisation, given the difficult topographic constraints. Multiple rig shifts to produce a grid are not possible or cost effective due to pad construction/shift time.
The orientation of the gold mineralisation at the Upper Zone will be determined by the drilling. Two fans of 12 or more holes are planned from two drill pads, for a total of 400m to 500m of drilling (approx. 6 drill holes from each pad, 25m to 60m in length).
The drill pads are located on the 'upslope' side of the Upper Zone and we will be drilling both down and across the dip of the mineralisation (down plunge?).
Summary of Aprii 2014 Swit Kia Prospect Exploration Results
The Upper Zone was tracked and sampled in eight north- south trenches or mineralised outcrops aver a 100m strike length, plus in one approx. east - west trending trench trending partly along strike. Another trench an additional 115m further east produced an excellent strike extension, to total aver 215 metres.
UJ
9,400,300 mN . 8;
:
WesiCreek
UJ UJ UJ UJ
E E E E E-
:il
o. -
TS "' g
EL 1595- Bulago Swit Kia UpperZone
Grab al 7.98 g/1Au + 43 g/1 Ag wilhin
9m al 0.97 g/1Au
Slrike
Exlension
9.- 40m mN
- J223
9AO!i.270mN
'.'.•
TSb
.•
.;·.;
- J139
DRILLPAD 2
T2
- J050
T1
- J001
T4
- J115
T3
J087
Jackhammer Trench
GOLD Assay Contours
Showing Drilling Pads
2014 Samples
Aug/t
• >100
e 50 to 100
e 2o to 50
e 4 to 20 e 1 to 4 e 0.4to 1
• 0.1 to 0.4
• < 0.10
9.00.270 mN
9.4Q0.;1t;0 mN
N
1
10m
UJ
J415-o
UJ•
Direction of view shown in
oulcrop pholo lilled
'Swil Kia - Upper Zone'
... J.:.
'):.. J114
Easl Creek:
2m al 195 g/t Au
wilhin 8m al 50.2 g/1Au
Slrike Exlension -115m.
E
9A00.250mN 8
E· UJ UJ
o
o -
ffi
-
M
"' <O·
9.4002, 50 rpN
UJ UJ UJ
E E E
9.400.300mN 8_ 8_
Wesl Creek TS
UJ
E EL 1595 - Bulago
Swit K ia
Upper Zone
Gra b al 7.98 g/1 Au + 43 g/1 Ag within
9m al 0.97 g/1Au
Slrike [} OPEN
Exlension e - J207 T6
- J139
•
Jackhammer Trench
GOLDAssays
:? f . wilhin
-40m l 1m al 128.0 gli
( 13.0m al 11.9g/l
TSb
J184.·· ·
T2
J050
T1
- J001
T4
2014 Samples
Au g/1
• > 100
e so to 100
• 20 to 50
3m al 69.2 g/1 :
.o·
'1m al
499.0 g/1 - J115
4 to 20
1 to 4
9.400.2t;OmN •
J<123
.. J274\ :
Pit5 e ·
2m al 25.19 g/1 • • ·e
wilhin Plt4
14mal 6.98 g/1
0.4 to 1
• 0.1 to 0.4
7mal11.5g/l 11mal
31.2 glt
9,400.;170 mN J<os-J
J411
· T3
.. .J087
•
• < 0.10
9,400,270 rpN
Sm al 1m al 52.1 g/1
{J J138 36.1 g/1 ..
OPEN •
J415-o
, 8.5m al 10.6 g/1
SUG001
9.400.260 mN .
10m
1 2m al 33.5 g/1
. :J049
Direction of view shown in oulcrop pholo litled
'Swil Kia - Upper Zone'
i Easl Creek:
e• 2m al 195 g/1Au
.. wilhin 8m al 50.2 g/t Au
.,:...J114 Slrike Exlension -115m.
9.400,260 mN
9,400.250 mN
UJ UJ UJ UJ E E E E g ·
o. 9.400,250 rpN
Upper Zone Trench 1was sampled on a l.Om and O.Sm down-outcrop basis and it has 5 zones far a cumulative total of 7m with >100 g/t gold (weighted average for the non-contiguous 5 zones =240 g/t gold). Trench 7 was slightly oblique to strike and it further defined the high grade zone with 10.0m grading 89.8 g/t gold (including
1.0m of 283.5 g/t), plus 3m of 69.2 g/t gold at its western end. The eastern outcrop strike extension of the
Upper Zone returned 2m grading 195.0 g/t gold.
The Lower Zone of the Swit Kia Prospect also returned 9 demolition jackhammer trenches and 4 outcrop exposures. Gold in soil anomalies along trend to the east and west of the Lower Zone, indicate an excellent continuing strike length to more than 480m total.
The Lower Zone assay results included peaks of 0.4m grading 293.5 g/t gold and 0.3m grading 197.0 g/t gold (~30m apart on the same structure and neither location was sampled above or below them at those locations), plus 11 samples with >25 g/t gold and 13 additional assays > 1.0 g/t gold. The Lower Zone's East Creek strike extension returned 3.0m grading 45.17 g/t gold and there were also results such as 0.4m grading 293.5 g/t gold about 80m west, plus 2.0m of 37.0 g/t gold a further 40m west and 2.0m of 41.50 g/t gold 15m further west.
The relationship between the Upper and Lower Zones is not well understood. They are separated by relatively small distances vertically /laterally and both appear to have significant individual E-W strike lengths. The intensity of brecciation and alteration at the Upper Zone suggests it is closer to a major mineralising conduit, whereas the Lower Zone has significant widths of more 'passive' silicification, but also high grade conformable gold mineralisation. The very strongly brecciated and silica- sericite altered arsenopyrite- pyrite mineralised, E- W to ESE-WNW trending + moderate SW plunging zones are open along strike to the west and east and down dip/plunge. The host sedimentary rocks and intrusives were normally below detection (where not mineralised, brecciated/altered).
For additional information relating to Frontier please visit our website at www.frontierresources.com.au
FRONTIER RESOURCES LTD
P.A.McNeil, M.Sc., MAIG Chairman and Managing Director
Competent Person Statement:
The information in this report that relates to Exploration Results is based on information compiled by, or compiled under the supervision of Peter A.
McNeil - Member of the Aust. Inst. of Geoscientists. Peter McNeil is the Managing Director of Frontier Resources, who consults to the Company. Peter McNeil has sufficient experience which is relevant to the type of mineralisation and type of deposit under consideration to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code of Reporting Exploration Results, Mineral Resources and Ore Resources. Peter McNeil consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
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Frontier Resources Ltd Exploration Licence Information
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Licence No.
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Date From
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Date To
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Ownership
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Current Area
(SQ KM)
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Latitudinal
Sub Blocks
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Bulago River
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EL 1595
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7/07/2012
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6/7/2014
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100% Frontier Gold PNG Ltd
|
100
|
30
|
|
East New Britain
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EL 1592
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21/03/2013
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20/3/2015
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100% Frontier Copper PNG Ltd
|
493
|
148
|
|
Central New Britain
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EL 1598
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21/03/2013
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20/3/2015
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100% Frontier Copper PNG Ltd
|
347
|
104
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Mt Andewa
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ELA
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100% Frontier Copper PNG Ltd - New Application
|
140
|
42
|
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Cethana
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EL 29/2009
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13/09/2010
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12/09/2015
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10% Free Carried to BFS Frontier -Torque Mining Ltd JV
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109
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NA
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River Lea
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EL 42/2010
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3/04/2011
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2/04/2016
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10% Free Carried to BFS Frontier -Torque Mining Ltd JV
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9
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NA
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Narrawa Creek
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RL 3/2005
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12/05/2006
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12/05/2014
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10% Free Carried to BFS Frontier -Torque Mining Ltd JV
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2.8
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NA
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Stormont Mine
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ML 1/2013
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3/11/2013
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13/08/2018
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5% Nett Profits Interest Frontier -Torque/BCD Mining
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0.13
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NA
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Total PNG Area = 1,080 SQ KM
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1,201 SQ KM
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NB: 1. The Pa pua New Gui nea Mi ni ng Act of 1992 s ti pl ua tes tha t ELs a re gra nted for renewa bl e 2 yea r Terms (s ubj ect to Work a nd Fi na nci a l Commi tments )
2. The PNG Government ma i nta i ns the ri ght to purcha s e up to 30% proj ect equi ty a t "Sunk Cos t" i f/when a Mi ni ng Lea s e i s gra nted.
3. BFS = Compl eti on of a pos i ti ve a nd hence "Ba nka bl e" Fea s i bi l i ty Study i nto the vi a bi l i ty of a ny propos ed mi ni ng opera ti on
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The following information is provided to comply with the JORC Code (2012) requirements for the reporting of exploration trenching results for Exploration Licence 1595 in Papua New Guinea.
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JORC CODE 2012
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Section 1 -- Sampling Techniques and Data
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Criteria
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Explanation
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Commentary
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Sampling
techniques
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o
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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 whole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
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Samples locations were surveyed (averaged) utilising a
handheld GPS, with reference to topographic maps etc. Logging of outcrop and grab rock samples normally included mineralisation, lithology, weathering, alteration, structure, texture. Sampling protocols and QAQC are as per industry best practice procedures.
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Sampling
techniques
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o
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Include reference to measures taken to ensure sample
representivity and the appropriate calibration of any measurement tools or systems used.
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Standard industry practice sampling procedures were
followed.
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|
Sampling
techniques
|
o
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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 11m samples from which 3 kg was pulverised to produce a 30g 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.
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Swit Kia channel samples were collected in multiple
metre, single metre and parts of metres relative to the intensity of mineralisation and alteration exhibited and time available.
The samples were driven to Lae Papua New Guinea for preparation by Laboratory SGS Australia Pty Ltd, then analysis in Townsville by fire assay (50g charge) for gold and ICP for copper, molybdenum, silver, lead, zinc, arsenic, antimony and other elements. Gravimetric gold analyses were subsequently undertaken for samples with high concentrations of arsenic that may have but apparently didn't interfere with the gold analysis process.
Samples were collected in calico bags for despatch to the laboratory. Sample preparation was in 3-5kg pulverising mills, followed by splitting to a 140g pulp which was analysed by 50 gram Fire Assay and Inductively Coupled Plasma Optical (Atomic) Emission Spectrometry Multi-acid digest including Hydrofluoric, Nitric, Perchloric and Hydrochloric acids.
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Drilling
techniques
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o
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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).
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No drilling.
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Drill sample
recovery
|
o
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Method of recording and assessing core and chip sample
recoveries and results assessed
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No drilling.
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Drill sample
recovery
|
o
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Measures taken to maximise sample recovery and ensure
representative nature of the samples.
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No drilling.
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Drill sample
recovery
|
o
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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.
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No drilling.
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Logging
|
o
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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.
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No drilling.
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Logging
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o
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Whether logging is qualitative or quantitative in nature.
Core (or costean, channel, etc) photography.
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No drilling.
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Logging
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o
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The total length and percentage of the relevant
intersections logged
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No drilling.
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Sub-
sampling techniques and sample preparation
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o
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If core, whether cut or sawn and whether quarter, half or
all core taken.
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No drilling.
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Sub-
sampling techniques and sample preparation
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o
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If non-core, whether riffled, tube sampled, rotary split, etc
and whether sampled wet or dry.
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No drilling.
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Sub-
sampling techniques and sample preparation
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o
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For all sample types, the nature, quality and appropriateness of the sample preparation technique.
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No drilling.
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Sub-
sampling techniques and sample preparation
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o
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Quality control procedures adopted for all sub-sampling
stages to maximise representivity of samples.
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No drilling.
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Sub-
sampling techniques and sample preparation
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o
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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.
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No drilling.
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Sub-
sampling techniques and sample preparation
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o
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Whether sample sizes are appropriate to the grain size of
the material being sampled.
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No drilling.
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Quality of assay data and laboratory tests
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o
o
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The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
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.
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Assaying techniques utilised can be considered to be appropriate. For the ICP analyses, the technique is considered to be 'total'. Over-range elements were run to determine their actual values.
Acceptable levels of accuracy and precision were established with duplicate and repeat analyses by the laboratory.
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Quality of assay data and laboratory tests
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o
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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.
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No such tools
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Verification
of sampling
and assaying
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o
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The verification of significant intersections by either
independent or alternative company personnel.
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Verified by P.McNeil and mapped / verified by
Consultant Geologist Ken Igara.
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Verification
of sampling
and assaying
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o
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The use of twinned holes.
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No holes have been twinned
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Verification
of sampling
and assaying
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o
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Documentation of primary data, data entry procedures,
data verification, data storage (physical and electronic)
protocols.
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Primary data was collected manually then loaded into
the database.
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Verification
of sampling
and assaying
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o
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Discuss any adjustments to assay data.
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No adjustments or calibrations have been made to any
assay data.
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Location of data points
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o
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Accuracy + quality of surveys used to locate drill holes (collar + down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
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Not applicable. A hand held GPS (waypoint averaged)
was used to determine historical drill collar locations.
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Location of data points
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O
O
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Specification of the grid system used.
Quality and adequacy of topographic control.
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Map datum is AGD 066.
40m contours from 1:100,000 plans, 10m from SRTM
contours.
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Data
spacing and
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o
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Data spacing for reporting of Exploration Results.
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Refer to the attached plans for details relating to the
data spacing of exploration results.
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distribution
|
o
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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
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The current data spacing and distribution is insufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation
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distribution
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o
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Whether sample compositing has been applied.
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No sample compositing has been applied, but J416 was
collected in 2 bags - double the normal sample volume
/weight.
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Orientation of data in relation to geological structure
|
o
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Whether the orientation of sampling achieves unbiased sampling of possible structures to the extent this is known, considering the deposit type.
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The orientation of sampling achieves unbiased sampling of possible structures to the extent to which this is known, considering the deposit type and outcrop available to sample.
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Orientation of data in relation to geological structure
|
o
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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.
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The relationship between the drilling orientation and
the orientation of key mineralised structures is NOT considered to have introduced any sampling bias, but it has constrained the possible high grade mineralised region by establishing where it is NOT.
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Sample
security
|
o
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The measures taken to ensure sample security
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Samples were retained by Company personnel until
they were despatched at the Lae laboratory. There are
no issues with sample security or chain of custody.
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Audits or
reviews
|
o
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The results of any audits or reviews of sampling
techniques and data.
|
No specific audits or reviews of sampling techniques
and data have been undertaken, but a demolition
jackhammer was utilised to create the channel for sampling in order to obtain 'more representative samples.
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Section 2 -- Reporting of Exploration Results
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|
Criteria
|
Explanation
|
Commentary
|
|
Mineral
tenement and land tenure status
|
o
|
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.
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Exploration Licence (EL) 1595 - Bulago is located in Papua New
Guinea's Hella Province and ELs are regulated under the Mining
Act of 1992 (currently under review).
There no agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and/or environmental issues associated with the EL.
The PNG National government under the Mining Act of 1992 currently has the right to acquire up to 30% of any project at the time of granting of a mining lease for the 'sunk cost'.
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Mineral
tenement and land tenure status
|
o
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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.
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The tenement is in good standing and FNT will seek renewal in
July 2014. No known impediments exist apart from the geographic isolation and the necessity for creating and maintaining good relationships with amiable, strongly development minded local landowners.
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Exploration done by other parties
|
o
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Acknowledgment and appraisal of exploration by other parties.
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Exploration in the region was initiated in the late 1960s as part of a PNG porphyry copper deposit search. It was explored for gold initially in the early'/mid 1980's, with little work since 1988, except for FNT.
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Geology
|
o
|
Deposit type, geological setting and style of mineralisation.
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High grade gold intrusive -epithermal related targets, higher grade gold -silver-zinc-lead magnetite skarns and porphyry copper-gold - molybdenum targets.
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Drill hole
information
|
o
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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:
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No drilling.
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Drill hole
information
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Easting and northing of the drill hole collar
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No drilling.
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Drill hole
information
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Elevation or RL (Reduced Level- elevation
above sea level in metres) of the drill hole
collar
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No drilling.
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Drill hole
information
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Dip and azimuth of the hole
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No drilling.
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Down hole length and interception depth
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No drilling.
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Hole length
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No drilling.
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|
o
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If the exclusion of this information is justified
on the basis that the information is not
Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
|
No drilling.
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Data aggregation methods
|
o
|
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.
|
Tables of results included show data aggregation if applied in trench/channel samples etc. No top cuts have been applied. They are continuous samples and so are stated as continuous weighted assay results (length x grade summed for each sample
/ sum of total length).
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Data aggregation methods
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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
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Is this occurs, it is stated in the text.
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Data aggregation methods
|
o
|
The assumptions used for any reporting of
metal equivalent values should be clearly
stated.
|
No metal equivalent values are reported.
|
|
Relationship between mineralisati on widths & intercept lengths
|
o
|
These relationships are particularly important in the reporting of Exploration Results.
|
Well understood
|
|
Relationship between mineralisati on widths & intercept lengths
|
o
o
|
If the geometry of the mineralisation with
respect to 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').
|
The 'down' outcrop or downhole sampled lengths have been
reported because the geometry of the mineralisation with respect to the sampling orientation has not been properly constrained by drilling.
|
|
Diagrams
|
o
|
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.
|
Appropriate maps, sections and tabulations of intercepts are
included.
|
|
Balanced
reporting
|
o
|
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.
|
Comprehensive reporting of Exploration Results has been
previously completed and released.
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|
Other
substantive exploration data
|
o
|
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
|
All meaningful exploration data has been included in this and
previous releases.
|
|
Further work
|
O
O
|
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.
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Drilling is dependent on a Share Purchase Plan capital raising to
be undertaken post-haste.
Appropriate plans will be included, as possible in a later release documenting approved future work programs.
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