Announcement PDF ASX: HRZ ASX ANNOUNCEMENT 28 AUGUST 2024 NIMBUS ZINC SILVER PROJECT UPDATE HIGHLIGHTS • The current global Mineral Resource estimate for Nimbus stands at: o • 12.1Mt grading 52g/t Ag for 20.24Moz of silver and 0.9% Zn for 106kt zinc 1 A high-grade subset exists within this global resource immediately below the historical pits and has a Mineral Resource estimate of: o 260kt grading 774g/t Ag for 6.4Moz silver and 12.8% Zn for 33kt zinc 1 • Concept study has confirmed the optimal economic development pathway through mining of the higher-grade lodes and generation of a silver / zinc concentrate with more drilling required to increase overall tonnage and mine life 2 • Silver currently trading at A$42/oz and zinc at A$4,000/t • A Programme of Work (POW) has been approved by DEMIRS and drilling expected to be undertaken in the first half of 2025 to drill test the exploration target 3 • Exploration Target defined below Nimbus to be tested. Commenting on the Nimbus silver-zinc project, Horizon Managing Director and CEO Mr Grant Haywood said: “We see the potential to grow the higher-grade core within the Nimbus resource at depth down plunge and along strike. Whilst we are firmly focussed on delivering on gold production at Boorara and Phillips Find, the Company will continue working to develop a longer-term production profile at Nimbus. We look forward to undertaking drilling in 2025 with the aim of increasing the resource prior to re-instigating a feasibility study for the project”. Cautionary Statement – Exploration Target The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and there is no certainty that further exploration work will result in the determination of mineral resources. See the basis of exploration target on pages 6 and 15-17, also Tables on pages 21-24, Competent Persons Statement on Pages 18. See Resource Tables on pages 21-24, Competent Person’s statement on page 18 and JORC tables on page 26. 2 See Cautionary Statement – Exploration Target above. 3 See Forward Looking and Cautionary Statements on Page 25. 1 Level 2, 16 Ord Street West Perth WA 6005 PO Box 1064 West Perth WA 6872 T: +61 8 9386 9534 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 provide an update on the Nimbus silver-zinc project, adjacent to the Boorara gold mine, 17km east-southeast of Kalgoorlie-Boulder in the goldfields of Western Australia (Figure 1). Figure 1: Kalgoorlie project area locations and surrounding infrastructure The Nimbus Project is sits 2km east of the Company’s cornerstone Boorara project and 6.5km northnorthwest of Golden Ridge. Both Boorara and Golden Ridge are historic gold mining centres, with Boorara recommencing production activities.1 The Nimbus mine site on granted mining leases M26/490 and M26/598 and easily accessed from the Kalgoorlie-Bulong Road via an unsealed haul road. The tenements are located within the Hampton Hill Pastoral Station (Figure 2). The Nimbus Project was mined by Polymetals in two stages. Phase 1 (Jan 2004 – April 2005) concentrated on mining extremely weathered oxide material in the Discovery and East Pits. Phase 2 (Nov 2005 – May 2006) concentrated on mining remnant oxide and supergene material from the Discovery Pit. Ore treatment was undertaken at an onsite mill utilising a Merrill-Crowe circuit. The Nimbus Silver-Zinc Project was placed on care and maintenance in 2007 after producing 3.6 Moz of silver from 318 kt of ore processed at a grade of 353 g/t Ag. 1 As announced to the ASX on 29 July and 1 August 2024. Page 2 of 59 ASX ANNOUNCEMENT MacPhersons Resource Limited (MRP) completed due diligence in August 2011and purchased the Nimbus property on 8th September 2011 from Kalgoorlie Ore Treatment Company Pty Ltd (KOTC) in order to treat ore hauled from their proposed Coolgardie gold mining operations, some 55km to the west. MacPhersons fast tracked the development of the Nimbus project, securing financing and purchasing necessary plant infrastructure. In June 2019 the former Intermin Resources Limited finalised its merger with MRP, becoming Horizon Minerals Ltd. The Nimbus project was put on hold pending review. Figure 2: Nimbus Aerial map showing existing pits and tenure Page 3 of 59 ASX ANNOUNCEMENT Nimbus was classified as a contaminated site by the Department of Water and Environmental Regulation (DWER) in 2006 as Contaminated – Remediation Required under the Contaminated Sites Act from the historic mining and processing of ore which restricted some activities. Following the merger with MacPherson Resources in 2019, Horizon undertook a Mandatory Review Audit process under the Contaminated Sites Act to carry out cleanup works to reclassify the site. The Company completed the clean-up in 2022 and the MAR report is nearing completion to submit to DWER to reclassify the site. The old plant was removed and the area rehabilitated. The mine office and other infrastructure is still in place and operational and on grid power. An independent review by Australian Mining Consultants (AMC) and Sedgmen was commissioned in 2022 to assess the historic data, mine optimisations and metallurgical work to evaluate the optimal pathway forward for the project.1 The review highlighted the potential of the project through underground mining the fresh higher-grade ore below the historic Discovery pit and generating a silver and a zinc concentrate for sale to potential offtake partners. A gold concentrate was also assessed to improve overall life of mine given the need for additional tonnage to underpin a concentrator at site. Exploration Target Drilling Zones Identified Given the drilling success to date along the Gretel-Nimbus-Brindabella trend and the potential for repeat high grade lenses at Nimbus deeps and along strike, a drilling campaign has been designed to commence in the first half of 2025 pending cashflows from gold mining operations.1 Exploration Target drilling zones identified below the Nimbus pits which remain untested are show below (Figure 3 and 4). Figure 3: Long section through Ag Lode 211 showing down dip/plunge extension 1 As announced to the ASX on 24 March 2022. Page 4 of 59 ASX ANNOUNCEMENT Figure 4: Long section through showing open zones down dip/plunge extension Basis of Exploration Target Horizon has interpreted a steep south-east plunging shoot within the sulphide zone below the Discovery Pit, containing zinc and silver mineralisation, with minor lead, copper and gold. The mineralisation is associated with volcanogenic massive sulphide (VMS) style mineralisation. This shoot is open at depth, with the grade – tonnage model centred upon the available drilling results. Potential mineralisation domains have not been extrapolated to depth beyond the drilling. The exploration target ranges also include potential silver mineralisation in the transitional weathering zone, immediately below the Discovery and East pits. Lateral continuity of this target is believed to be limited to above the sulphide zone mineralised shoots. East – west trending faults have been mapped in the pit and may offset the mineralisation at depth. Potential faulting of the mineralised shoot has not yet been modelled. Insufficient deep drilling has taken place below the East Pit to determine if mineralised shoots are located there. Figure 5 depicts the Zn mineralised domains below the Discovery Pit. Horizon has formed a view that there is a potential VMS (Zn – Ag – Pb) Exploration Target of between 550,000 tonnes and 700,000 tonnes with a grade range of 3.4 – 3.6% Zn, and 140 – 210g/t Ag, with minor Pb (0.45 – 0.65%). These tonnage and grade ranges are based upon the construction of a 3D grade – tonnage model, which have silver and zinc domains modelled. As measured density data were not available, Horizon has assumed a range of densities for both the oxide (1.6 – 2.35 t/m3) and sulphide (2.7 – 3.2 t/m3) domains. A weathering profile was used to differentiate between the oxide weathering domain and the fresh rock (sulphide) domains. Grades are based on very limited drilling and up-dip information. The potential quantity and grade the exploration target is conceptual in nature, there has been insufficient exploration to determine a Mineral Resource and there is no certainty that further exploration work will result in the determination of Mineral Resources. Page 5 of 59 ASX ANNOUNCEMENT This material remains an Exploration Target as it relates to mineralisation for which there has been insufficient exploration to estimate a Mineral Resource 1 2. Figure 5: Discovery Primary Zone silver (blue) and zinc (green and purple) domains, plunging SE from below the Discovery Pit Next Steps 2 A Programme of Work (POW - Reg ID 120876) has been approved to drill the exploration target. Once cashflows from gold production at Boorara and Phillips Find are well advanced, in addition to drilling for gold extensional and new discovery drilling, funding will be directed to test the exploration target below the current high grade Nimbus ore zone. Authorised for release by the Board of Directors For further information, please contact: Grant Haywood Managing Director and CEO 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 Geology And Geological Interpretation 1 See Tables, Competent Persons Statement on Pages 17, 21-24. 2 See Forward Looking and Cautionary Statements on Page 25. Page 6 of 59 ASX ANNOUNCEMENT Regional The Nimbus deposits are located within the uppermost felsic units of the Boorara Domain of the Archaean Kalgoorlie Terrain, a sequence of basal mafic to ultramafic metavolcanics, overlain by a package of felsic metavolcanic rocks and metasedimentary units of the Black Flag Beds. The volcanic and sedimentary rocks in the Nimbus area are bounded to the west and east by the northwest trending Boorara Shear Zone and Kanowna Shear Zone respectively. Rocks in the district have been subject to lower greenschist facies metamorphism. Deposit Nimbus is defined as a shallow-water, low-temperature VHMS deposit with epithermal characteristics (i.e. a hybrid bimodal felsic deposit), which is consistent with its position near the margin of the Kalgoorlie Terrane. The Nimbus deposit has a relatively unusual mineral association and is the only known deposit of its kind in the Eastern Goldfields of WA. The deposit consists of multiple zones of oxide silver/gold mineralisation, supergene silver/gold mineralisation and deeper primary silver/gold/zinc sulphide zones. The supergene-enriched oxide silver mineralisation overlies southeast plunging shoot/s of disseminated to massive Fe-Zn-Pb-As sulphides with associated elements including Ag, Sb, Bi and Cd, with high Hg content. Mineralisation Mineralised shoots within the primary disseminated to massive sulphide zone are up to 80 metres wide and plunge 45° to grid SE. Host rocks to the primary mineralisation are autoclastic breccias, pyritic sediments, rhyolite-dacite volcanics, and carbonaceous sediments, cherts and intrusive andesites. The mineralisation comprises pyrite, sphalerite, galena, tetrahedrite, arsenopyrite, native silver, amalgam, chalcopyrite, electrum and cinnabar. Three types of sulphide mineralisation have been identified in the MRP drill core: 1. Semi-massive to massive sulphide mineralisation occurs as massive sphalerite-galena or as massive pyrite. The massive sulphide breccia represents widespread sulphide replacement of a pre-existing breccia zone and is characteristically thick and poddy, at 25 to 30 m true thickness. Massive sphalerite-galena zones are often associated with high silver and other base metal values. 2. Banded or stringer style sulphide mineralisation. The stringer zone mineralisation commonly surrounds the massive to semi-massive sulphide mineralisation. 3. Disseminated sulphide breccia mineralisation hosted in a highly brecciated siliceous unit with a chlorite matrix. Disseminated sulphide mineralisation surrounds the stringer style mineralisation. Page 7 of 59 ASX ANNOUNCEMENT 2015 MRE Interpretation The Nimbus MRE in 2015 was modelled and estimated by David Williams (MAIG, MAusIMM) an employee of CSA Global Pty Ltd (CSA Global) The Nimbus deposit is interpreted as being made up of four distinct styles of mineralization, being: • • • • High Grade Combined Silver and Zinc Lodes Silver Lodes Zinc Lodes Gold Lodes Whilst the modelling has been successful in defining these different lodes, discrete areas within them will contain metal other than the primary mineralisation. Typically, less than 10% of the blocks contain any of the other metal. Mineralisation models were prepared using Surpac software by MacPhersons geological staff for Ag, Zn and Au using lower cut-off grades of 12 ppm for Ag, 0.5% for Zn and 0.3 g/t for Au over a 2m down hole composite. The Mineral Resource model consists of 37 zones of Ag mineralisation, 34 zones of Zn mineralisation and 17 zones of Au mineralisation. 2016 High Grade Model Interpretation In 2016 Macphersons modelled a high-grade sub-set of the mineralisation. Modelling and estimation were done by Mark Rigby, Senior Project Geologist with MacPhersons. Solids were generated by interpreted sectional or flitch polygons (strings) on the following basis: • • Ag on 500g/t Ag cut-off, minimum 2m drill width, a nominal 2m internal dilution, although more was included to accommodate mineralisation interpretation continuity, and Zn on 10% Zn cut-off, minimum 2m drill width The ‘high grade’ interpretation remains consistent in orientation with the previous model. Lodes were interpreted to the full lateral extents, including sub-grade drill intersections where anomalous material or geological continuity is interpreted. In the few instances where no continuity could be established, a half-way rule was used. Lateral extension was up to 20m, up and down dip (or plunge), and along strike. The up and down dip component was modified to allow for the 3D location of drilling in adjacent sections in an effort to create coherent solids. 12 high-grade lodes were defined. No flat lying supergene type mineralisation occurs in this high-grade model. Page 8 of 59 ASX ANNOUNCEMENT Drilling Techniques The Mineral Resource is based upon historical drill hole data, and drill hole data sourced from MacPhersons’ drilling programmes between 2011 and late 2014. The historical data accounts for 336 Reverse Circulation (RC) holes (29,702 m) and 88 diamond drill holes (DDH) for 21,447 m. The Nimbus drill hole database consists of 243 RC holes (43,565 m) and 38 DDH (11,213 m). Historical diamond drilling was carried out by Australian Contract Mining (ACM) (Kalgoorlie), using a Longyear LF90 diamond drill rig. Pre-collars were drilled using a tri-cone roller bit initially and later a blade bit. The pre-collar was followed by NQ-2 coring (51 mm). Significant difficulties maintaining directional control were often encountered during drilling. This resulted in many of the target positions were often difficult to achieve and, in some cases, targets were completely missed. MacPhersons drilled 182 RC holes (NBRC series, 25,992m) and 200 Aircore holes (NBAC series 9,958m). Raglan Drilling (Kalgoorlie) completed the RC and Air Core program using two truck mounted 2008 Schramm T450WS RC drill rigs with 900/350 onboard compressors and a multi-purpose Schramm T685W RC, Aircore drill rig. RC drill holes have a 127mm or 143mm diameter. Diamond drilling used HQ3 triple tube cored from surface. Drill holes were orientated by electronic “Reflex Orientation Tool”. Core lengths and orientations were checked daily by MRP geologists. Aircore drilling was used to sample the TSF1 tailings. The TSF2 tails were drilled with an Edson MRA2 auger rig mounted on a Toyota Landcruiser. Auger flight rods were used to drill a 3.5 inch diameter hole. The holes were sampled at one metre intervals from surface to bottom of hole. The holes were vertical and drilled to blade refusal (floor of the pit). A total of 34 auger holes were drilled for 396 metres. In addition, two HQ diamond drill holes were drilled at the centre of the pit and sampled at one metre intervals. The drill rods were pushed through the tails without the need for using the drill bit, for 43.8m of sample. The majority of drilling at Nimbus has been completed on a 20 m spaced section lines, with recent RC holes drilled 20 m apart on those section lines. All MacPhersons drill hole collars were surveyed using a differential global positioning system (DGPS) by a licensed, locally based, surveyor. Many of the historical drill collars were destroyed by surface rehabilitation work prior to MacPhersons’ ownership of the project, however collars that were located were re-surveyed by the same licensed surveyor. The new collar surveys validated the Local to MGA grid transformation carried out by MacPhersons. Page 9 of 59 ASX ANNOUNCEMENT Sampling And Sub-Sampling Techniques Historical A standard length of one metre was used to collect samples both from diamond core samples and the RC samples passed through a riffle splitter. Diamond core was cut in half with half retained and half dispatched for analysis. 2011 - 2012 Diamond Drilling Diamond core drilling was undertaken by HMR Drilling Services Pty Ltd, initially using a SDD1300 rig to complete the first two holes. The rig was swapped to a LF90D rig to complete the remaining 23 holes. Terra Drilling Pty Ltd, using a Boart Longyear KWL 1600H completed a four hole geotechnical program late in 2012. The core was cut and sampled according to lithology with minimum lengths of 0.1m and maximum lengths of 1.2m. Samples were bagged and ticketed and transported to the ALS Ltd (ALS) Perth laboratory for sample preparation and analyses. The core was photographed then stacked for storage at the Nimbus mine site. All drill sites were rehabilitated, whereby holes were capped, sumps filled in and all rubbish removed. 2011 - 2014 RC Drilling Reverse circulation drilling was undertaken by Raglan Drilling Pty Ltd Samples passed through a cyclone and over a wedge splitter with a 2kg split collected in pre-numbered calico bags and the remainder collected and stored in numbered green plastic bags. Samples were ticketed and transported to ALS Perth for sample preparation and analyses. All drill sites were rehabilitated, with holes capped and all rubbish removed. 2011 - 2012 Aircore Drilling (TSF1) Aircore drilling was completed by Raglan Drilling (Kalgoorlie) using two truck mounted multi-purpose Schramm T685W RC Aircore drill rigs using 3m rods of 89mm diameter. One metre samples were collected in green plastic bags, with the geologist carefully monitoring the chips for evidence of the drill bit entering and leaving the tails material. Samples for assaying were collected via spearing the sample bag. The samples were then dispatched to ALS (Perth) for sample preparation and analysis. QAQC Field QAQC procedures included the insertion of commercial standards for all sampling. Standards (including in house blanks) were inserted at a rate of about 1 every 30 samples. Field duplicates are collected from RC samples and inserted into sample string. No QAQC issues were reported. 70 samples were selected to represent the modelled mineralisation. The samples were submitted to Intertek Genalysis (Genalysis) for silver assay via 4AH/OE. Results were mostly acceptable with greater variability noted in the high-grade samples (600+ ppm Ag, 400+ ppm Hg). Page 10 of 59 ASX ANNOUNCEMENT Sample Analysis Method Historical Database Aqua Regia digest was found to be inappropriate. >50ppmAg, Triple acid digest (HCL, HNO3, HClO4) was used with a 10x dilution for >500ppmAg. The usual analysis technique was inductively coupled plasma (ICP). The suite of analysed elements was not consistent due to several exploration campaigns. The ICP analytical method provides a quantitative result. 2011 – 2014 Database Pulverised core samples were analysed by processes determined by an initial analysis, and the logged percentage of sulphide in the core. ALS method ICP-61 (33 element scan) was used for weakly mineralised core; if Ag was > 100ppm then the sample was re-assayed by method OG62h. Initially, if the subsequent recorded Ag assay was >1,500ppm, then the sample was again reassayed using method OG46. OG46 was then considered the most appropriate method for sulphide hosted Ag mineralisation. More recent test work completed by ALS showed that the OG46 method was not suitable for silicate-hosted Ag mineralisation, and could underestimate the Ag values, particularly in the high-grade zones. ALS then advised that OG62h was a suitable method for samples that returned grades greater than 1500ppmAg, and OG46 was dropped from the protocol, and OG62h used. If Zn was >10,000ppm (or 1%) following ICP-61, then a re-assay using OG62h was required. Triggers of 10,000ppm for Pb and Cu were also set, with OG62 subsequently used for those samples. Estimation Methodology 2013 MRE The 2013 Mineral Resource Estimation was undertaken by David Williams, MAIG, MAusIMM, an employee of CSA Global. As part of the full MRE, estimations were made for Tailings Storage Facility 1 and 2 (TSF1 and TSF2). TSF1 A block model was created for TSF1 using wireframe surfaces depicting the top and bottom of the tailings material. The blocks were estimated with grade for Ag, Au, Hg, Pb and Zn based onresults from 40 Aircore (AC) holes drilled into the dam during 2012. The wireframe surfaces were modelled based upon geological logs from these holes. Silver, mercury and gold grades were estimated into the model using ordinary kriging (OK) and inverse distance weighting to the power 2 (IDS). The other grade variables were estimated by IDS. A minimum of 4 and maximum of 16 samples were used per block estimate. Search ellipse radii were based upon the short ranges of the variogram models. A flat discoid ellipse was used for the Page 11 of 59 ASX ANNOUNCEMENT estimation, based upon the depositional history of the tails. A maximum of three samples per drill hole were used in any one block estimation. A density of 1.7t/m3 was applied to the block model. The MRE was classified as Measured and Inferred. The regions where the AC holes were drilled provide strong sample support, and metal distribution was modelled with a high degree of confidence and classified as Measured. The regions away from the drilling are not supported by drill hole sampling, but the ‘geological’ model of the TSF is considered to be well established. These areas were classified as Inferred. TSF2 The Mineral Resource was estimated within the volume between the top of tails surface, and the open pit surveyed surface as at the end of open pit mining (April 2005). This volume is completely filled with consolidated tailings sands, with no known occurrence of solid rock rafting within the tails. The tailings were determined to be one mineralisation domain; therefore, no attempt was made to model high grade zones within the deposit. Silver and mercury grades were estimated using ordinary kriging. A minimum of 8 and maximum of 24 samples were used per block estimate. Search ellipse radii were based upon variogram models. A flat discoid ellipse was used for both silver and mercury. The model has been classified as Measured. 2015 MRE Mineralisation models were prepared using Surpac software by MacPhersons geological staff for Ag, Zn and Au using lower cut-off grades of 12 ppm for Ag, 0.5% for Zn and 0.3 g/t for Au over a 2m down hole composite. Wireframes were created joining polygons based upon a geological model of the deposit derived from diamond drill core logs, geological logs of RC drill data, and geological observations on surface. The Mineral Resource model consists of 37 zones of Ag mineralisation, 34 zones of Zn mineralisation and 17 zones of Au mineralisation. Three weathering domains (oxide, transitional and fresh) were interpreted. Wireframed domains were extrapolated along strike or down plunge to half the section spacing or before this limit if a barren hole cut the plunge extension. The wireframes were imported into Datamine Studio where the Mineral Resource model was completed by CSA Global. The model parameters were used to recreate a rotated block model in Surpac which was used for final reporting of the Mineral Resource. Top cuts were used to constrain extreme grade values if it was determined that the grades would potentially over-estimate local block estimates, either due to limited sample numbers, or if the individual assay result was considered too high compared to the rest of the domain’s population. Top cuts vary according to the host mineralisation domain and were determined from an analysis of the non-composited data. All samples were composited to 1 m intervals based upon a review of sample length distribution. All diamond core and RC drill hole data were utilised in the grade interpolation, with the exception of selected holes from the historical database (DM series, and EM1) for which survey or analytical records could not be verified. Samples from RAB and other drill hole types were excluded. Page 12 of 59 ASX ANNOUNCEMENT A block model with a parent cell size of 10 m E by 4 m N by 5 m RL was constructed compared to a typical drill spacing of 20 m (northing) by 20 m (easting). Sample spacing widened considerably with increasing depth. A statistical analysis of the Ag, Zn and Au populations by mineralisation domain, weathering domain, hole type, and a combination of these, was conducted on both the non-composited and composited drill data. Top cuts were determined from an analysis of the non-composited data. A variogram study was carried out on selected domains with the greatest data population for Ag, Zn and Au. Normal score variograms were modelled, and the back transformed parameters fed into the grade interpolation algorithm. The variogram studies showed the Nimbus mineralisation has a relatively low nugget effect, implying that a small sample population would be sufficient to interpolate a single block. A moderate plunge down the mineralisation domains was modelled. Grade estimation was by Ordinary Kriging (OK) with Inverse Distance Squared (IDS) estimation concurrently run as a check estimate. A minimum of 8 and maximum of 24 composited (1m) samples were used in any one block estimate for Ag, Zn and Au mineralisation zones, with 4 to 24 samples used for the second pass grade interpolation. A maximum of 6 composited samples per drill hole were used in any one block estimate. Grade interpolation was run within the individual mineralisation domains, acting as hard boundaries. The base of complete oxidation (BOCO) weathering profile was also used to split the grade interpolation by weathering zone. Figure 6 - All Interpreted Lodes Page 13 of 59 ASX ANNOUNCEMENT 2016 HG Model Due to the significant reduction in number of samples available for analysis, variography was not able to be adequately modelled for this resource estimation. This has meant that an Ordinary Kriged estimation cannot be completed with this resource data. As we are dealing with a higher grade sample sub-set of the original resource data it is difficult to justify the use of previous variogram models to be applied in an OK estimate with this resource data. Consequently, an Inverse Distance estimator (ID2) was used for the MRE. A block model with parent cell sizes 10 m x 2 m x 2 m (Easting, Northing, RL) was constructed which was based on drill spacing and width of lodes. Search ellipse orientations were based on the geometry of individual lodes. Search distances and ellipse dimensions were assumed for each of the two passes used in the estimation as well as sample numbers required to inform a block with grade. No restriction to number of samples selected per drill hole was applied. Figure 7 - High Grade Silver Lodes (blue) and High Grade Zn-Ag-Pb VHMS Lenses (green and magenta) Exploration Target The Nimbus VHMS Ag, Zn, & Au lenses are open at depth (Figure 3, Figure 4). Understanding the stratigraphy at Nimbus is critical to future mine exploration success. Systematic re logging of historical diamond drill holes has been undertaken along with pit mapping of East Pit and Discovery Pit. This increased understanding of lithological units at Nimbus will be used to construct a new geology model. Page 14 of 59 ASX ANNOUNCEMENT A number of the deeper lodes identified in 2012 (including Ag Lode 311) have not been drilled out to the surface and therefore present additional near-surface resource targets which could be mined out as pit cutbacks. Horizon has interpreted a steep south-east plunging shoot within the sulphide zone below the Discovery Pit, containing zinc and silver mineralisation, with minor lead, copper and gold. The mineralisation is associated with volcanogenic hosted massive sulphide (VHMS) style mineralisation. This shoot is open at depth, with the grade – tonnage model centred upon the available drilling results. Potential mineralisation domains have not been extrapolated to depth beyond the drilling. The exploration target ranges also include potential silver mineralisation in the transitional weathering zone, immediately below the Discovery and East pits (Figure 8). Lateral continuity of this target is believed to be limited to above the sulphide zone mineralised shoots. East – west trending faults have been mapped in the pit and may offset the mineralisation at depth. Potential faulting of the mineralised shoot has not yet been modelled. Insufficient deep drilling has taken place below the East Pit to det