Announcement PDF ASX: HRZ ASX ANNOUNCEMENT 19 JULY 2023 MAIDEN RESOURCES FOR MONUMENT AND GOLDEN RIDGE NORTH HIGHLIGHTS • Mineral Resource Estimates have been completed at the Greater Boorara-Golden Ridge and Cannon core projects • The Monument gold prospect is part of the Cannon project group and is located less than 1km from the proposed Cannon underground project, 30km to the southeast of Kalgoorlie. • The Golden Ridge North prospect is immediately adjacent to the historic Golden Ridge open pit mine, 20km to the southeast of Kalgoorlie in the WA goldfields. • Two maiden JORC compliant resources have been estimated by Horizon for both deposits which are as follows: 1 • o Monument – 395,000t grading 1.97g/t Au for 25,000oz at a 0.8g/t Au cut-off grade o Golden Ridge North – 1.42Mt grading 1.23g/t Au for 57,000oz at a 0.8g/t Au cutoff grade With the addition of these new resources, and reduction due to the completion of the Gunga West divestment 2, Horizon’s total Mineral Resource estimate now stands at: 1 o 23.22Mt grading 1.69g/t Au for 1,262,000oz 1, 2 • Further drilling at Monument is currently underway, focussing on the shallower mineralisation aiming to upgrade this portion of the resource to an Indicated category. A scoping study will be commissioned to assess open pit viability, with approvals progressed in parallel to leverage off synergies with the Cannon underground project. 3 • At the Golden Ridge North deposit, a scoping study has been initiated to examine open pit mining opportunities in conjunction with Monument. In addition, recent sampling (380 samples) at Golden Ridge has identified a small-scale treatment opportunity with many of the historic stockpiles, truck dumps and bunds returning economic grades (>1.0 g/t) from the previous open cut mining operation. 3 Commenting on the new resources, Horizon Chief Executive Officer, Mr Grant Haywood said: “These projects provide Horizon with additional potential for satellite ore sources to complement the underground production at the Cannon gold project due to their proximity, enabling synergies with shared infrastructure and personnel. We shall immediately commence the study work to bring these maiden resources into an Ore Reserve and progress approvals in parallel, as we build our production profile to reach our ultimate goal of becoming an emerging mid-tier gold business for the benefit of all stakeholders.” 1 See Tables and Competent Persons Statement on pages 7, 19 JORC Tables on Page 19. 2 As announced to the ASX on 17 July 2023. 3 See Forward Looking and Cautionary Statements on Page 6. 163 Stirling Hwy Nedlands WA 6009 PO Box 1104 Nedlands WA 6909 T: +61 8 9386 9534 F: +61 8 9389 1597 E: info@horizonminerals.com.au horizonminerals.com.au ACN 007 761 186 ABN 88 007 761 186 ASX ANNOUNCEMENT Overview Horizon Minerals Limited (ASX: HRZ) (“Horizon” or the “Company”) is pleased to announce maiden Mineral Resource estimates for the Monument and Golden Ridge North prospects located near Kalgoorlie in the heart of the Western Australian Goldfields (Figure 1). Figure 1: Horizon’s Project area location, resources and surrounding infrastructure Golden Ridge North, along with the 31koz Golden Ridge deposit, was acquired from Northern Star Resources in 2019 1. Following the acquisition, Horizon has conducted several drilling programs at Golden Ridge North, including one downhole EM survey and detailed mapping at Golden Ridge. Monument is located about 1km southwest of Cannon and was part of the Cannon-Glandore package purchased from Aurenne Group Holdings Pty Ltd in October 2021 2. There has been no previous mining at Monument. Cannon and Monument Prospect Geology Overview The Cannon deposit (Figure 1) is located 30km east-southeast of Kalgoorlie in the Eastern Goldfields region of Western Australia on granted mining leases ML25/333 and ML25/357. The Cannon mine and surrounding area is dominated by mafic to ultramafic rocks of the Bulong Complex overlain by a sequence of felsic volcanics, volcaniclastics and sediments. Lithologies 1 As announced to the ASX on 20 December 2019. 2 As announced to the ASX on 19 October 2021. Page 2 of 65 ASX ANNOUNCEMENT present include komatiitic mafics and ultramafics, peridotites, basalts and gabbros. Sedimentary rocks include shales and cherts with rare, banded iron formation. The geological structure is complex and dominated by the Cannon shear which is recognised as a key ingredient for local gold and possibly nickel sulphide mineralisation. The gold mineralisation at the Monument deposit differs and consists of two main zones of mineralisation in the north and south and a smaller central zone within a faulted region near the middle of the deposit. In the northern zone, the lodes are NNW and dip steeply to the west. In the south the lodes are N-S trending and also dip steeply to the west. The best intersections occur within or on the margins of felsic intrusive units that run the length of the 700m long deposit. Evidence from the last round of Horizon drilling also suggests that the northern margin of the mineralisation is plunging moderately to the NNW. Figure 2: Cannon Project area showing surrounding prospects Page 3 of 65 ASX ANNOUNCEMENT Golden Ridge Prospect Geology Overview The historic Golden Ridge Underground Gold Mine was first developed from 1901-1927 when 249,356t @ 17.1g/t Au for 139,546oz was mined to an underground depth of 174m. More recent open cut mining from 1998-2004 produced 1.78Mt @ 1.98g/t Au for 113,520oz for a total of 253,000oz Au. The current depleted resource at Golden Ridge is 31,000oz at 1.82g/t 1 with most of the ore beneath the historical pit. The Golden Ridge North deposit was mined by Blue Tiger Mines Pty Ltd in 2018 who extracted 32,476t at a recovered grade of 1.38g/t Au for 1,444oz Au. Gold mineralisation at Golden Ridge is associated with the north-south trending, sub vertical quartz-feldspar porphyry located between shales and cherts to the west and ultramafic (talccarbonate) sequences to the east. Mineralisation is similar to Boorara where gold is observed in flat lying vein arrays and thicker, steeper dipping contact style lodes. The flat lodes are the most dominant. The regional Boorara shear appears to control a number of prospects in the BooraraGolden Ridge corridor. Figure 3: Boorara-Golden Ridge Project area showing surrounding prospects Page 4 of 65 ASX ANNOUNCEMENT Next Steps Infill drilling has commenced at both the Monument and Pinner prospects and is scheduled for completion this quarter 1. Two new Mineral Resource Estimates will be completed for the deposits. Following this, a study will then examine the economics of open pit mining and ore treatment at FMR Investments’ Greenfields plant in Coolgardie. No further drilling is planned for Golden Ridge North this year. A scoping study will also assess the economics of an open cut mining operation. In addition, Horizon has taken over 380 samples of truck dumps, perimeter bunds and ROM pads at Golden Ridge. Many of the samples returned encouraging grades >1.0 g/t Au and highlight the potential for a simple haulage and processing operation. 1 For further information, please contact: Grant Haywood Chief Executive Officer Tel: +61 8 9386 9534 grant.haywood@horizonminerals.com.au Michael Vaughan Media Relations – Fivemark Partners Tel: +61 422 602 720 michael.vaughan@fivemark.com.au 1 As announced to the ASX on 12 July 2023 Page 5 of 65 ASX ANNOUNCEMENT Forward Looking and Cautionary Statements Some statements in this report regarding estimates or future events are forward looking statements. They include indications of, and guidance on, future earnings, cash flow, costs and financial performance. Forward looking statements include, but are not limited to, statements preceded by words such as “planned”, “expected”, “projected”, “estimated”, “may”, “scheduled”, “intends”, “anticipates”, “believes”, “potential”, “could”, “nominal”, “conceptual” and similar expressions. Forward looking statements, opinions and estimates included in this announcement are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward looking statements are provided as a general guide only and should not be relied on as a guarantee of future performance. Forward looking statements may be affected by a range of variables that could cause actual results to differ from estimated results, and may cause the Company’s actual performance and financial results in future periods to materially differ from any projections of future performance or results expressed or implied by such forward looking statements. These risks and uncertainties include but are not limited to liabilities inherent in mine development and production, geological, mining and processing technical problems, the inability to obtain any additional mine licenses, permits and other regulatory approvals required in connection with mining and third party processing operations, competition for among other things, capital, acquisition of reserves, undeveloped lands and skilled personnel, incorrect assessments of the value of acquisitions, changes in commodity prices and exchange rate, currency and interest fluctuations, various events which could disrupt operations and/or the transportation of mineral products, including labour stoppages and severe weather conditions, the demand for and availability of transportation services, the ability to secure adequate financing and management’s ability to anticipate and manage the foregoing factors and risks. There can be no assurance that forward looking statements will prove to be correct. Statements regarding plans with respect to the Company’s mineral properties may contain forward looking statements in relation to future matters that can only be made where the Company has a reasonable basis for making those statements. This announcement has been prepared in compliance with the JORC Code (2012) and the current ASX Listing Rules. The Company believes that it has a reasonable basis for making the forward looking statements in the announcement, including with respect to any production targets and financial estimates, based on the information contained in this and previous ASX announcements. Page 6 of 65 ASX ANNOUNCEMENT Horizon Minerals Limited – Summary of Gold Mineral Resources Cutoff Measured Project Indicated Inferred Total Au g/t Mt Au g/t Oz Mt Au g/t Oz Mt Au g/t Oz Mt Au g/t Oz Boorara OP 0.5 1.28 1.23 50,630 7.19 1.27 294,140 2.6 1.3 103,470 11.03 1.26 448,240 Golden Ridge 1.0 0.47 1.83 27,920 0.1 1.7 2,800 0.52 1.82 30,720 Golden Ridge North 0.8 0.65 1.15 24,260 0.77 1.30 32,340 1.42 1.23 56,600 Cannon UG 1.0 0.19 4.80 28,620 0.1 2.3 3,450 0.23 4.29 32,070 Monument 0.8 0.39 1.97 25,000 0.39 1.97 25,000 Pennys Find 1.5 0.20 5.45 35,000 0.1 3.6 8,000 0.27 4.99 43,000 Kalpini 0.8 1.40 2.43 108,000 0.5 2.0 31,000 1.87 2.33 139,000 Rose Hill UG 2.0 0.33 4.50 47,100 0.2 4.8 27,800 0.51 4.60 74,900 Rose Hill OP 0.5 0.09 2.00 6,100 0.29 2.00 18,400 Jacques-Peyes 0.8 0.97 2.59 81,000 0.8 2.0 49,000 1.74 2.32 130,000 Teal 1.0 1.01 1.96 63,680 0.8 2.5 64,460 1.81 2.20 128,140 Crake 0.8 1.33 1.47 63,150 0.1 1.3 3,300 1.42 1.46 66,450 Coote 1.0 0.4 1.5 21,000 0.42 1.54 21,000 Capricorn 0.5 0.7 1.2 25,500 0.70 1.20 25,500 Baden Powell 0.5 0.6 1.2 23,000 0.60 1.20 23,000 8.16 1.60 420,120 23.22 1.69 1,262,000 Total 0.19 1.47 2.00 1.33 12,300 62,930 13.83 1.75 779,000 Competent Person Statement “The information in the report to which this statement is attached that relates to the Estimation and Reporting of Gold Mineral Resources at the Golden Ridge North and Monument deposits is based on information compiled by Mr Stephen Godfrey, a Competent Person, who is a current Fellow of the Australian Institute of Mining and Metallurgy (FAusIMM 110542) and Member of the Australian Institute of Geoscientists (MAIG 3993). Mr Godfrey is the Resource Development Manager for Horizon Minerals Ltd and 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 Godfrey consents to the inclusion in the report of matters based on the information in the form and context in which it appears.” Page 7 of 65 ASX ANNOUNCEMENT Listing Rule 5.8.1 Disclosures for Golden Ridge Geology and Geological Interpretation The Golden Ridge orebody is situated on the Boorara Shear within a lenticular northwest-southeast trending sub vertical quartz-feldspar porphyry unit, which is assumed to be the lateral equivalent to felsic schists which also host gold mineralisation in the Boorara area, further to the north. The porphyry unit is fault bounded to the east by a package of chloritic serpentinised sheared ultramafic and to the west by metasediments (shale, graphitic shale and chert). The porphyry is thought to be intrusive in the immediate vicinity of the mine area but extrusive (flow textures visible) to the north towards Boorara. The quartzo-feldspathic felsic porphyry unit is host to the mineralisation at Golden Ridge. When heavily oxidised it is reduced to kaolin clays with varying amounts of ferruginous minerals, usually limonite and goethite. Increased amounts of ferro-manganiferous deposits are localised around remaining quartz veining and faults/shears. Within the fresh material any textural features have been obliterated by strong pervasive sericite ± silica alteration giving the rock a general ‘smooth’ pale green appearance. The Boorara Shear is a regional scale structure, which is likely to have had a long history of remobilisation. It is generally unmineralised, but is the essential structure required for the origin and emplacement of the gold. The differing competency contrasts between the local lithologies produced brittle fracturing within the porphyry intrusive/extrusive during remobilisation along the Boorara Shear. The resulting phases of quartz infill produced conjugate massive reefs and stockwork vein sets which host the bulk of the mineralisation at Golden Ridge. Drilling Techniques Historical drilling used RC and Diamond techniques. RC drilling used a 5½” face sampling hammer bit. Diamond core was predominantly NQ with minor HQ. Diamond drilling comprises ~8% of the data in the resource model. All drillholes have been collar and down hole surveyed. Historically drill holes were located on a local grid. These have been translated to MGA94 zone 51 for the current resource. All HRZ drilling was done in MGA. Drillholes are located at a 20 m spacing with a 40 m burden over the resource area with holes in the pit area at the south of the resource closed up to a 20 m burden. Sampling and Sub-Sampling Techniques Historically RC samples were collected via cyclone and split with a 3-tier riffle splitter to produce approximately 3 kg of sample per metre. Horizon Drilling used a cyclone with cone splitter to produce approximately 3 kg of sample per metre. RC drill samples were taken and assayed initially as 4 m composite samples. If anomalous gold was present the individual one metre samples for the interval were assayed. Diamond core was sawed in half and one half geologically sampled at 0.4 to 1.5 m intervals. In geologically consistent zones 1 m samples were taken. Page 8 of 65 ASX ANNOUNCEMENT Sample analysis method Historically a 30g Fire Assay with AAS finish was used for analysis. HRZ used a 50g Fire Assay with AAS finish. Analyses were for gold only. Duplicate and Standard QAQC samples regularly submitted by operator in addition to routine laboratory QA samples. Estimation methodology Three dimensional mineralised wireframes were used to domain the mineralised data. Sample data was composited to 1m down hole lengths using the ‘best fit’ method. Intervals with no assays were excluded from the estimates. Construction of mineralised wireframes was based on a combination of gold grades, lithological units and geological structures. Where grade continuity was unclear, geological and structural data was used to guide the wire-framing. Refer to Figure 48. Exploratory Data Analysis indicated the sample populations of the oxide, transition and fresh zones were sufficiently different to require separate modelling. Variographic analysis provided adequate structure to enable Ordinary Kriging to be used to estimate the Au grades in the model. A block model was generated in Surpac v6.6, using topographic and oxidation surfaces & mineralised domain wireframes as constraints. The model was depleted for the existing open pit at the south end. Primary block dimensions used was 10m (X) x 10m (Y) x 5m (Z) with sub-blocking to 2.5m (X) x 2.5m (Y) x 1.25m (Z)). The final model is a combination of the different block dimensions. Estimation was made into the parent block. No assumptions were made on selective mining units. An orientated ‘ellipsoid’ search was used to select data for each domain and was based on the observed lode geometry. The search ellipses were orientated to the average strike, plunge, and dip of the domain. First pass search parameters with an ellipse of to 40 m x 33 m x 16 m and minimum and maximum number of composites of 4 and 32. Subsequent estimation passes increased the search ellipse size and decreased the minimum samples required. All domain and oxidation boundaries were treated as hard boundaries during the estimation. High grade cuts were used in the estimation of the Golden Ridge North resource due to the presence of outliers in the gold assays. Statistical analysis of the 1m composite data determined an individual top cut for each lode and material type. No metallurgical assessment has been made. Mined material from the pits immediately to the south, and the similar Boorara deposit 5km along strike has been successfully processed in previous years. The model has been reported at a 0.8 g/t Au cut off. This assumes the resource, if economic, will be mined by open pit methods. This cut off grade is comparable that used for similar deposits in the area. Page 9 of 65 ASX ANNOUNCEMENT Classification The Golden Ridge North resource is classified as Indicated and Inferred. Indicated material is located below the open pit and south of ~6 587 050 mN. This area is well informed with drilling on ~20 m x 20 m centres. Oxide ore has been mined from the southern half of the Indicated zone down to 340 mRL (~50 m below surface). Inferred material is everything north of the open pit and ~6 587 050 mN. The wider drill spacing (20 m x 40 m) makes the interpretation and estimate less certain. Lodes 8 and 10 are classified as Inferred due to their lack of continuity, implying a less certain interpretation. Figure 4. Golden Ridge Domains Looking North East Page 10 of 65 ASX ANNOUNCEMENT Figure 5. Golden Ridge Domains and Drilling Page 11 of 65 ASX ANNOUNCEMENT Figure 6. Golden Ridge Domains, Drilling and Topography Plan View Page 12 of 65 ASX ANNOUNCEMENT Figure 7. Golden Ridge Long Section Showing Block Model Listing Rule 5.8.1 Disclosures for Monument Geology and Geological Interpretation The Project is located within the Bulong District of the East Coolgardie Mineral Field and is on the Hampton Hill pastoral lease. The Bulong South Project area lies within the Kurnalpi Terrane of the Norseman-Wiluna Greenstone Belt. This terrane includes the former Gindalbie and Laverton Terranes. It is currently defined as being bounded by the Ockerburry Fault System to the west and the Hootanui Fault System to the east. The Kurnalpi Terrane comprises a series of thin, linear north-north-westerly trending, fault bounded domains of dominantly mafic–felsic volcanic sequences with prominent lateral facies changes. Komatiite horizons are thin and discontinuous and more common to the west, with the major occurrence centred on the Bulong Anticline. Locally, regions of calc-alkaline volcanic and epiclastic deposits and banded iron-formation are found. The Monument area is underlain by predominantly fine grained ultramafics, high-MgO basalts and minor komatiites. There are also several black shale units which more than likely represent Page 13 of 65 ASX ANNOUNCEMENT interflow sedimentary horizons between the mafic and ultramafic flows. A small granitoid intrudes these lithologies in the southern parts of M 25/333. The prospect geology consists of a series of narrow, NNW-trending felsic dykes intruding a package of predominantly komatiitic ultramafics with minor basaltic flows. Late-stage NE trending brittle faults cut the dykes in several places, however the only significant offset occurs near the middle of the deposit, where there is also a change in orientation of the mineralisation from NNW in the north to N-S in the southern zone. Modelling of the interpreted continuation of the main felsic dykes has allowed for a high success rate in intercepting gold. Gold mineralisation within the Monument deposit consists of two main zones in the north and south and a smaller zone within a faulted region near the middle of the deposit. In the northern zone, the lodes are NNW and dip steeply to the west. In the south the lodes are N-S trending and dip steeply to the west. The best intersections occur within or on the margins of felsic intrusive units that run the length of the deposit. Anomalous intercepts are also associated with other felsic units and the interpreted cross-cutting NE trending faults. Drilling Techniques Face sampling reverse circulation (RC) percussion drilling and HQ diamond core were used to sample the deposit. RAB drilling from early reconnaissance work was not used in the resource. Drill hole collar positions have been surveyed by Differential GPS to an accuracy of +/- 0.1m. The grid system used for locating the collar positions of drill holes is the Geocentric Datum of Australia (GDA94), Zone 51 (MGA Projection). Topographic control in the area is provided by SRTM data and mine site surveying. Elevations are recorded in Australian Height Datum (AHD). Down hole surveys used an Eastman single shot system or an EMS tool (Reflex EZ shot), by the relevant drill contractor. All drill holes were geologically logged. Sampling and Sub-Sampling Techniques RC drill holes were sampled at 1m intervals via a cone-splitter connected via a cyclone directly to the drill stream, or via spear sampling for 2 to 4m composites. Samples were taken dry. Individual RC drilling samples were cone split from the drill rig or put through a 3-tier riffle splitter and collected into pre-numbered calico bags. Diamond core was sampled as half core. Diamond core was sampled at intervals no greater than 1.3m and no less than 0.15m. Sampling did not cross lithological boundaries. Field duplicates were collected at every 10th metre mark on each hole. Certified Reference Material (standards) were submitted with the field samples. Page 14 of 65 ASX ANNOUNCEMENT Sample analysis method Preparation and analysis of samples was undertaken historically by either Genalysis or Minanalytical, and by SGS for the recent HRZ drilling. Sample size presented for analysis was approximately 2kg. Samples were pulverised to 85% passing 75 micron, or 90% at 106 micron in the 2013-2016 programs. Each sample was completely pulverised, to produce a 25g, 40g or 50g charge for fire assay with AAS finish. Selected samples from some programs were submitted for multi element analysis. Estimation methodology The monument mineralisation trend North-North-West and dips at approximately 60° to West-South-West. The mineralisation dip continuity was initially interpreted in Geovia Surpac in section and then in 3D to determine strike continuity between sections. This defined 12 domains which were used to flag the drill hole database. The flagged domains were wireframed using Micromine’s implicit modelling tools. Block model construction and grade estimation was done in Geovia Surpac. Grade estimation for the Monument deposit was carried out using linear estimation methods. A multi-pass estimation plan was used for all estimation domains. An Inverse Distance algorithm using a power of two (ID2) was used to estimate Au only. Waste domains were not estimated. Only samples from RC and Diamond drill holes were used in the estimation of grades. No RAB samples were used as annular return samples can become contaminated. High-grade outlier samples were managed with top cutting. Hard boundaries were used between domains so that a domain was estimated with only the samples within that domain. No boundary was applied between different oxidation state material within a domain. Search ellipses were aligned with the mineralisation orientation. Search distances were set to ensure adequate samples were found to make an estimate. Pass 1 used a search ellipse 50 m x 25 m x 12.5 m. Pass 2 expanded the sample search to 75 m and pass 3 to 100 m. Pass 4 used a minimum sample requirement of 1. See figures below. 82% of blocks were estimated by the first estimation pass; 12% by the second; 5% in passes 3 and 4. 2% of blocks remain un-estimated. Bulk density was assigned to the model and nominally based on values used in the 2020 Cannon resource model. The model and grade estimation were validated by visual inspection of the blocks compared to the drilling, and statistically comparing average domain composite grades to model grades. Page 15 of 65 ASX ANNOUNCEMENT Classification Estimation Pass 1 in the current resource is classified as Inferred. The other passes are unclassified. The drill hole spacing is adequate to confirm geological continuity, but closer spaced drilling is required to confirm grade continuity has been modelled correctly. More work is required on local bulk density values. Page 16 of 65 ASX ANNOUNCEMENT Page 17 of 65 ASX ANNOUNCEMENT Page 18 of 65 Appendix 1 – Golden Ridge and Golden Ridge North Prospect JORC Code (2012) Table 1, Section 1, 2 and 3 Mr Stephen Godfrey, Resource Development Manager for Horizon Minerals compiled the information presented in the following JORC Table 1 and is the Competent Person for that data. The following Table and Sections are provided to ensure compliance with the JORC Code (2012 edition) guidelines for the reporting of Mineral Resources. Section 1 Sampling Techniques and Data Criteria JORC Code explanation 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 representivity 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. • • • • WGX (Western Gold and Historical Explorers) Chips from the RC drilling face-sampling hammer are collected for assaying. Sample return lines are cleaned with compressed air each metre and the cyclone sample collector is cleaned following each rod. Samples are riffle split through a three-tier splitter with a split ~3kg sample (generally at 1m intervals) pulverised to produce a 30g charge analysed via fire assay. Diamond drill-core is geologically logged and then sampled according to geology (minimum sample length of 0.4 m to maximum sample length of 1.5 m) – where consistent geology is sampled, a 1m length is used for sampling the core. The core is sawn half-core with one half sent off for analysis. Samples have been collected from numerous other styles of drilling at SKO, including but not limited to RAB, aircore, blasthole, sludge drilling and face samples. of between 60 – 120m, followed by a diamond tail. The majority of these holes have been drilled at NQ2 size with minor HQ sized core. All diamond holes were surveyed during drilling with downhole cameras, and then at end of hole using a Gyro Inclinometer at 5 or 10 m intervals. Drillhole collars were surveyed by onsite mine surveyors. Sample recovery is generally good, and there is no indication that sampling presents a material risk for the quality of the evaluation of any deposit at SKO. HRZ (Horizon Minerals) HRZ used RC drill chip sampling to evaluate the deposit. Page 19 of 65 ASX ANNOUNCEMENT Criteria JORC Code explanation • • • • Drilling Techniques Drill type (e.g. core, reverse circulation, open-hole WGX hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, facesampling bit or other type, whether core is oriented and if so, by what method, etc). • • • • 4m composite samples taken with a hand size aluminium scoop being thrust into samples piles on the ground. 1m single splits taken off rig with cone splitter and later submitted to lab if 4m composite returns >0.1g/t. Average sample weights are about 1.5-2.5kg. For RC drilling r