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ASX ANNOUNCEMENT – 21 January 2015

BARBARA JV PARTNERS COMMIT TO EXPANDED FEASIBILITY

STUDY FOR QUEENSLAND COPPER-GOLD PROJECT

New development approach set to deliver a range of benefits and project enhancements

Key Points:

• New development proposal for the Barbara Copper-Gold Project received from

CopperChem, resulting in a decision to significantly expand the scope of the current

Barbara Open Pit Feasibility Study.

• The key element of the CopperChem proposal and the expanded Feasibility Study is the

inclusion of on-site ore processing at Barbara using a transportable plant to be sourced,

installed and managed by CopperChem.

• CopperChem will continue to fully fund the expanded Feasibility Study until conclusion.

• This approach has the potential to unlock a number of compelling benefits for the JV in the

areas of operating costs, treatment, refining and selling charges, reduced upfront capital

expenditure and infrastructure investment, and an extended mine life.

• The expanded Feasibility Study will also fully incorporate recently identified additions to

the Barbara Mineral Resource inventory, including the maiden resource at Lillymay and

potential underground extensions at Barbara identified below the open pit.

• Drilling to resume in early 2015 targeting recently identified opportunities, including a

strong EM conductor at Barbara Deeps, extensions to Lillymay and more than a dozen

other prospects. The objective of this work is to establish a 5-7 year mine life at Barbara.

• The Barbara Project is highly leveraged both to improvements in the Australian Dollar

copper price as a result of a weakening currency and to increases in the resource

inventory.

Syndicated Metals Limited (ASX: SMD – “Syndicated” or “the Company”) is pleased to advise that it

has reached agreement with its joint venture partner CopperChem Limited to extend the scope of

the Feasibility Study on its Barbara Copper-Gold Project in North Queensland to incorporate a

number of recently identified enhancements to the project.

The new development approach – which is based on a proposal to undertake on-site processing

using a low-cost transportable facility – is expected to unlock a range of significant benefits for the

Barbara Project, particularly in the all-important areas of operating costs, treatment, refining and

selling charges for copper concentrate produced and upfront capital expenditure.

These improvements would, in turn, translate into enhanced economic and financial returns.

Assets, Experience, Growth


The original scope for the Barbara Copper Project Feasibility Study was based on a two-year open pit

mining operation on the Barbara deposit only, with ore haulage to the CopperChem plant at

Cloncurry.

While the Open Pit Feasibility Study has been progressed to an advanced stage, the Joint Venture

has decided to expand its scope to incorporate the new on-site processing scenario and include

other additions to the Barbara Mineral Resource inventory which could provide significantly

improved financial returns based on a 5-7 year life-of-mine (LOM) plan.

The work completed to date as part of the Feasibility Study indicates that the Barbara Project is

highly leveraged both to improvements in the Australian Dollar copper price as a result of the

weakening currency and increases in the resource inventory. The expanded study will incorporate

updated assumptions for both the copper price and exchange rate, both of which have moved

considerably over the past six weeks.

CopperChem has agreed to continue to fund the expanded Feasibility focusing on the on-site

processing scenario, which includes initial treatment to a sulphide concentrate at Barbara followed

by optional further treatment at the Cloncurry plant.

The Barbara Joint Venture will undertake further drilling programmes at Barbara and at the

identified satellite deposits to deliver the Mineral Resources to support a 5-7 year LOM. The drilling

programmes will target extensions to the Barbara deposit into underground mining positions and

already identified satellite deposits.

The permitting and approvals process for the Barbara open pit operation is well advanced with

Landholder access agreements signed and Mining Lease applications under consideration.

The study work completed to date, including the permitting and approvals and the Mining Lease

application, will enable the Joint Venture partners to advance the project rapidly, pending a positive

result from the expanded Feasibility Study. It is anticipated that the expanded study will be

completed in Q3 2015.

New Development Pathway

The key elements which will now be incorporated in the expanded Barbara Feasibility Study include:

• As per the proposal received from CopperChem, a plan to develop Barbara using an

innovative, on-site but transportable processing facility which would result in the production

of copper concentrate on-site. This would significantly reduce the transportation and

treatment costs (TCs) which would otherwise be incurred by hauling ore to Cloncurry and/or

selling Barbara ores to existing operators in the region. TCs in the copper industry are

currently at a cyclical high;

• The on-site plant would be sourced, installed and managed by CopperChem;

• An option to produce rougher concentrate at Barbara and transport it to CopperChem’s

Cloncurry processing plant for final processing into high grade concentrate;

• The significant opportunity to increase the overall copper mineral resource inventory, both

at Barbara and in the surrounding area as a result of a number of recent developments,

including:

o The discovery of a strong EM conductor at depth between Barbara South Lode and

Barbara Mid Lode, which represents a priority target for extending the Barbara

Mineral Resources;


o The establishment of satellite developments such as at the Lillymay deposit, for

which Syndicated recently announced a maiden Inferred Mineral Resource of

225,295t @ 2.33% Cu for 5,250 tonnes of contained copper (refer ASX

Announcement – 16 December 2014). The Joint Venture believes there is outstanding

potential to further increase the resource at Lillymay and define additional resources

at other regional prospects including Mt Olive, Greenback and Greenzone; and

o The delineation of a number of prospective new exploration targets, located both

within the Barbara Joint Venture tenure and 100%-owned ground.

2015 Exploration Program

Barbara

During 2014, Syndicated completed eight diamond drill holes targeting the Barbara Deeps project.

These holes intersected both the Southern Lode and Northern Lode mineralisation approximately

300m below surface (refer to Figure 1).

As part of this program, down-hole electromagnetic (DHEM) surveys were conducted from a number

of the deeper holes. These surveys have identified a significant EM conductor at depth below Mid

Lode, between South and North Lodes. Diamond drilling into Mid Lode indicates the presence of

vein-style chalcopyrite mineralisation immediately up-dip of the conductor, with assay results of 6m

at 2.23% Cu (BADD029) and 0.9m at 2.14% Cu (BADD030) (refer ASX Announcement 24 September

2014).

The Joint Venture partners are very encouraged by the presence of this additional conductor, which

is in an ideal location for future underground mining. The Company’s exploration team will test the

new EM conductor in early 2015 with a program of deep diamond drilling aimed at further

increasing the Barbara Deeps Mineral Resource inventory.

Figure 1 – Barbara Long Section indicating the location of the Barbara Underground drill holes and

DHEM plate below Mid Lode.

Lillymay

Syndicated has recently reported a maiden JORC Mineral Resource estimate for the high-grade

Lillymay Satellite deposit, located 4km south-west of Barbara (refer ASX Announcement – 16

December 2014). Lillymay has the potential to be a valuable source of high-grade mineralisation

feeding into the broader Barbara development.


As part of the drilling program which defined the initial Mineral Resource, two DHEM plates were

located indicating the potential for significant extensions of the high-grade mineralisation below a

depth of 100m and into potential future underground mining positions (refer to Figure 2).

This work also highlighted potential extensions to the surface mineralisation both east and west of

the Resource (refer to Figure 3).

In light of these near-term exploration opportunities, the Company has maintained its Exploration

Target for Lillymay of 0.4-0.8 Mt @ 2-3% Cu based on the average true width and grade of the 18 RC

holes drilled to date extrapolated over 600m of strike to a depth of 125m below surface. The

Exploration Target at Lillymay is conceptual in nature and there has been insufficient exploration to

estimate a Mineral Resource in compliance with the JORC Code. It is uncertain if further exploration

will result in the estimation of a Mineral Resource as defined by the JORC code.

Drilling is scheduled to re-commence at Lillymay in February 2015.

Figure 2 – Long section showing pierce points through the Lillymay veins.


Figure 3 – Plan showing Lillymay Prospect with Eastern and Western Extensions.

Greenback and Greenzone

The Greenback and Greenzone prospects lie at either end of the Barbara Shear Zone. Geologically

these prospects represent the intersection of the NW-SE oriented Barbara Shear Zone with the more

northerly Greenback and Greenzone shears.

Both prospects contain a number of previous RC drill intersections and represent attractive walk-up

drill targets to expand the Mineral Resources available to the Barbara Copper project.

Previous RC drill results at Greenzone include :

• 10m @ 0.96% Cu from 82m down-hole in GZRC002




Previous RC drill results at Greenback include:

• 2m @ 0.98% Cu from 72m down-hole in GBRC003

• 9m @ 0.93% Cu from 40m down-hole in GBRC005

These prospects were drilled by Syndicated in 2010 and 2011 and have been re-interpreted using

the enhanced geological knowledge of the area developed from the significant geological work

completed at Barbara throughout 2013/2014. Refer to Table 1 and the JORC table attached.

Other Prospects Within Barbara JV

The Barbara Copper Project consists of 100km2 of tenure over three tenements (refer to Figure 4).

Soil geochemical surveys conducted in 2013 and 2014 have highlighted an additional 15 prospects

within the JV tenure that are yet to undergo any drill testing. Many of these prospects contain

historical workings that indicate high-grade oxide copper mineralisation at surface.

The 2015 exploration program will assess these prospects and rank them according to prospectivity

once the source of the copper-in-soil anomaly has been established. Those prospects that warrant


drilling will be further assessed with an initial RC drilling program to determine the controls on the

mineralisation and potential deposit size and grade.

Figure 4 – Project Location Plan highlighting the large number of exploration prospects within the

Barbara JV tenure and surrounding Barbara.

Summary and Outlook

Syndicated’s Managing Director, Andrew Munckton, said the decision to expand the scope of the

Feasibility Study beyond the initial open pit operation marked an important turning point for the

Barbara Project.

“The presentation of an alternative development pathway by CopperChem in the form of an on-site

processing operation utilising modular, transportable equipment is a compelling opportunity for the

joint venture to consider, and one that we believe will ultimately deliver a range of benefits to the

project in a number of key areas.

“These include lower operating costs, a far more palatable arrangement in terms of transport and

treatment charges and the potential to reduce the upfront capital outlay. These improvements could

substantially improve the economic and financial returns from Barbara, particularly when combined

with the possibility of extensions to the resource inventory as a result of further exploration at a

number of prospects.”

“In particular, we have recently confirmed with our geophysical consultant the presence of an

exciting exploration target in the form of a strong down-hole conductor at the Barbara Mid Lode.

This target will be a priority for drilling in early 2015, along with further work to expand the resource

at Lillymay and test other satellite exploration targets.


“In conclusion, we believe the decision to extend the Feasibility Study will ultimately deliver greater

benefits to our shareholders. We also believe that the decision not to rush into a short-life open pit

operation at Barbara in a volatile and challenging market environment will in hindsight be seen as a

wise one.”

ENDS

For further information:

Investors

Andrew Munckton – Syndicated Metals

Mobile: 0435 635 598

Media

Nicholas Read – Read Corporate

Mobile: 0419 929 046

Competent Person’s Statement

The information in this report that relates to Mineral Resources is based on information compiled by Mr Jim Whitelock and

Mr Michael Martin. Both Mr Whitelock and Mr Martin are Members of The Australasian Institute of Geoscientists (AIG) and

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

activity which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian

Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”). Mr Whitelock is a full-

time employee of Exco Resources Limited a 100% owned subsidiary of CopperChem Limited and Mr Martin is a full time

employee of Syndicated Metals Limited. Both Mr Whitelock and Mr Martin consent to the inclusion in the report of the

Mineral Resources in the form and context in which they appear.

The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled

by Mr Andrew Munckton who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has

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

which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for

Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”). Mr Munckton is a full-time

employee of Syndicated Metals Limited and consents to the inclusion in the report of the Exploration Targets and

Exploration Results in the form and context in which they appear.

Exploration Targets

This report comments on and discusses Syndicated Metals Limited’s exploration in terms of target size and type. The

information relating to Exploration Targets should not be misunderstood or misconstrued as an estimate of Mineral

Resources or Ore Reserves. The potential quantity and quality of material discussed as Exploration Targets is conceptual in

nature since there has been insufficient work completed to define them as Mineral Resources or Ore Reserves. It is

uncertain if further exploration work will result in the determination of a Mineral Resource or Ore Reserve.


Table 1: Drill-Hole Summary and Significant Intercepts

Hole ID Northing

(m)

Easting

(m)

Depth

(m)

Dip Azi From

(m)

To

(m)

Interval

(m)

Cu

(%)

Au

(ppm)

Ag

(ppm)

Co

(ppm)

S

(%)

GBRC001 7739696 381233 84 -60 262.9 30 34 4 0.51 0.04 0.23 946 1.8

63 64 1 1.46 0.15 1.1 71 1.6

72 73 1 0.55 0.04 0 91 0.91

77 78 1 0.56 0.04 0.3 60 1.17

GBRC002 7739717 381216 75 -59 27.9 No Significant assays

GBRC003 7739798 381131 96 -60 14.9 62 65 3 0.7 0.09 0.53 593 2.63

72 74 2 0.98 0.09 3.25 325 1.21

78 79 1 1.25 0.29 3.2 181 2.06

GBRC004 7740115 381005 6 -63 50.9 Abandoned

GBRC005 7740119 381002 72 -63 48.9 40 49 9 0.93 0.07 1.41 284 1.4

GBRC006 7740117 381001 108 -82 67.9 62 71 9 0.55 0.03 0.48 279 1.06

GZRC001 7742272 379434 94 -60 270.9 56 60 4 1.01 0 0.28 34.5 1.34

67 79 12 0.6 0.01 0.23 44.83 1.21

GZRC002 7742075 379349 130 -60 270.9 55 60 5 0.78 0.01 0.42 47.6 1.3

82 92 10 0.96 0.02 0.36 106 2.58

GZRC003 7742306 379423 84 -60 270.9 32 56 24 0.83 0.01 0.44 72.92 1.75

67 68 1 0.85 0.02 1.2 52 1.48

GZRC004 7742238 379412 84 -60 270 44 54 10 0.68 0 0.52 87 1.62

GZRC005 7742152 379359 84 -60 270 59 60 1 0.51 0.01 0.4 95 2.17

64 69 5 0.6 0.03 0.26 103 1.86

GZRC006 7742111 379348 126 -60 270 56 64 8 1.05 0.01 0.29 55 1.73

GZRC007 7742031 379334 114 -60 270 60 61 1 0.55 0.06 0.3 42 1.08

GZRC008 7741990 379337 126 -60 126 54 55 1 1.39 0.03 0.5 42 2.2

59 60 1 0.93 0.01 0.4 17 1.27

63 65 2 1.02 0.04 0.25 82 2.75

GZRC009 7742352 379427 118 -60 273 34 37 3 0.69 0 0.4 45.33 1.26

58 67 9 0.98 0.02 0.48 52.56 2.18

93 94 1 0.53 0.01 0.7 52 1.22

GZRC010 7742383 379431 124 -60 273 46 51 5 1.02 0.01 0.36 48.9 1.39

74 76 2 0.59 0 0.25 35.5 0.78

80 84 4 0.97 0 0.4 32 1.14

GZRC011 7741963 379293 58 -60 90 No Significant assays

GZRC012 7742001 379290 40 -60 90 27 28 1 0.6 0.01 0.3 139 2.08


GZRC014 7742079 379299 60 -60 90 36 41 5 0.89 0 0.26 39 1.27

GZRC015 7742125 379302 46 -60 90 1 5 4 0.71 0.03 0.05 160.5 0.01

22 25 3 1.35 0.01 0.27 42 2.15

30 31 1 0.53 0 0.2 183 2.88

GZRC016 7742159 379316 40 -60 90 9 15 6 0.84 0 0.38 86.83 1.32

18 22 4 1.1 0.11 0.45 81 3.05

25 32 7 0.93 0.01 0.54 91.14 2.81

GZRC017 7742202 379371 76 -60 90 13 14 1 0.6 0.04 0 56 0.01



GZRC020 7742240 379387 46 -60 90 6 14 8 1.81 0.01 0.34 80.5 0.19

GZRC021 7742325 379400 40 -60 90 7 9 2 0.63 0.05 0.1 80 0.57

GZRC022 7742283 379385 52 -60 90 12 14 2 0.64 0.01 0.1 35 1.03

22 26 4 0.65 0.01 0.05 41.75 1.38

19 29 10 0.7 0 0.14 55.1 1.57

38 42 4 1.08 0 0.18 62.25 2.19

GZRC023 7742357 379386 58 -60 90 47 51 4 1.06 0 0.43 63 1.95

GZRC024 7742402 379395 46 -60 96.4 29 30 1 0.54 0.03 0 47 0.77

GZRC025 7742444 379368 100 -60 88.4 67 71 4 0.89 0 0.13 36.75 1.28

Note : The mineralised interval length of intercepts shown in the table are down-hole distances and are not corrected for

angle of dip. A cut-off grade of 0.5% Cu was used for calculating mineralised intervals. Downhole widths are reported. True

width is approximately 80-85% of Downhole width.


Criteria JORC Code explanation

Exploration Results

Mineral

tenement and

land tenure

status

Type, reference name/number, location and ownership

including agreements or material issues with third parties

such as joint ventures, partnerships, overriding royalties,

native title interests, historical sites, wilderness or national

park and environmental settings.

The Barbara, Lillymay, Greenzone and Greenback

deposits are located within EPM16112 and EPM19733.

The current registered holder for EPM16112 and

EPM19733 is Syndicated Metals Limited (SMD). These

tenements are currently in the process of being

transferred to the CopperChem/Syndicated Metals JV.

The area covered by the Barbara Resource and the

Greenzone deposit is subject to Mining Lease application

ML 90241 application submitted to DNRM on 7 May

2014.

EPM16112, EPM19733 and ML90241 are subject to the

Barbara Joint Venture Agreement with CopperChem

Limited (CopperChem) for the joint evaluation,

development, mining and processing of the Barbara

Resource. CopperChem Limited have a 50% interest in

EPM16112, a portion of EPM19733 and ML 90241.

The tenements sit within the Kalkadoon People #4 Native

Title claim.

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.

The tenements are in good standing and no known

impediments exist.

Exploration

done by other

parties

Acknowledgment and appraisal of exploration by other

parties.

No work by other parties is reported as part of this

announcement.

Geology

Deposit type, geological setting and style of mineralisation. The Barbara deposit is a shear hosted deposit within acid

volcanics within the Kalkadoon-Leichhardt belt of the Mt

Isa Inlier. The NW striking lode dips at approximately

60°to the south west, and varies from 2m to 30m true

thickness.

The Lillymay deposit is a shear hosted vein style deposit

within acid volcanics within the Kalkadoon-Leichhardt

belt of the Mt Isa Inlier.

The Greenzone prospect is a shear hosted vein style

deposit hosted within mafic rocks in the Greenzone shear

located on the contact of the Leichhardt Volcanics and

the Argylla Formation.

The Greenback prospect is located on the southern

continuation of the Barbara Shear Zone. The prospect is

hosted with the metabasalt and interbedded carbonate

rocks of the Magna Lynn formation.

Drill hole

Information

A summary of all information material to the

understanding of the exploration results including a

tabulation of the following information for all Material drill

holes:

Refer to attached Table 1.

Easting and northing of the drill hole collar Refer to attached Table 1.

Elevation or RL (Reduced Level – elevation above sea level

in metres) of the drill hole collar

RL Derived from LIDAR survey results not included in

Table 1. Average RL at Greenback is 364mRL, Average RL

at Greenzone is 317mRL

Dip and azimuth of the hole Refer to attached Table 1.

Down hole length and interception depth Refer to attached Table 1.

Hole length. Refer to attached Table 1.

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.



Data

aggregation

methods

In reporting Exploration Results, weighting averaging

techniques, maximum and/or minimum grade truncations

(eg cutting of high grades) and cut-off grades are usually

Material and should be stated.


Where aggregate intercepts incorporate short lengths of

high grade results and longer lengths of low grade results,

the procedure used for such aggregation should be stated

and some typical examples of such aggregations should be

shown in detail.

The high grades in the exploration results have not been

cut. Lower cut off is nominally 0.5%Cu with a maximum

of 3m sub 0.5% Cu internal dilution to make up the full

intersection.

The assumptions used for any reporting of metal equivalent

values should be clearly stated.

No metal equivalent values are used for reporting

exploration results.

Relationship

between

mineralisation

widths and

intercept

lengths

These relationships are particularly important in the

reporting of Exploration Results. If the geometry of the

mineralisation with respect to the drill hole angle is known,

its nature should be reported.

At Greenzone two directions of drilling have been

completed. Holes have been drilled at azimuths of 90 and

270 degrees and dips of -60. The ore zone dips at

approximately 85 degrees to the west. The intersection

angle between the ore zone and drilling are between 55

and 65 degrees to the mineralised zones. Therefore

reported downhole intersections for -60 degree holes can

be on average 30% to 50% greater than the true width.

At Greenback, majority of drillholes completed at -60

degrees to both the east and west. The ore zone dips at

70 degrees to the south west. The intersection angle

range from 40 to 60 degrees from the perpendicular.

Therefore reported downhole intersections for the holes

can be on average 30% to 60% greater than the true

width.

If it is not known and only the down hole lengths are

reported, there should be a clear statement to this effect

(eg ‘down hole length, true width not known’).

See above.

Diagrams

Appropriate maps and sections (with scales) and

tabulations of intercepts should be included for any

significant discovery being reported. These should include,

but not be limited to a plan view of drill hole collar locations

and appropriate sectional views.

Refer to Figures 1, 2, 3 and 4.

Balanced

reporting

Where comprehensive reporting of all Exploration Results is

not practicable, representative reporting of both low and

high grades and/or widths should be practiced to avoid

misleading reporting of Exploration Results.

All results are reported.

Other

substantive

exploration

data

Other exploration data, if meaningful and material, should

be reported including (but not limited to): geological

observations; geophysical survey results; geochemical

survey results; bulk samples – size and method of

treatment; metallurgical test results; bulk density,

groundwater, geotechnical and rock characteristics;

potential deleterious or contaminating substances.

Exploration drill results only reported at this time.

Further work

The nature and scale of planned further work (eg tests for

lateral extensions or depth extensions or large-scale step-

out drilling).

Planning of drillholes targeting extension to the

Greenzone and Greenback prospects is underway as part

of exploration review.

Diagrams clearly highlighting the areas of possible

extensions, including the main geological interpretations

and future drilling areas, provided this information is not

commercially sensitive.

Planning of drillholes targeting extension to the

Greenzone and Greenback prospects is underway as part

of the prospect review. Please refer to figure 4 for the

location of the Greenzone and Greenback prospects.


Criteria JORC Code explanation

Sampling Techniques and Data

Sa

mp

lin

g t

ech

niq

ue

s

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.

Sampled 1m intervals using a rig mounted cyclone and

87.5-12.5 riffle splitter to collect a 3.5kg to 4kg sample.

All 1m samples are analysed using handheld XRF and

then all samples over 0.05% copper are sent to ALS

laboratories for Au and multi-element analysis. Reject

sample retained on site.

Include reference to measures taken to ensure sample

representivity and the appropriate calibration of any

measurement tools or systems used

Sampling was carried out under Syndicated Metals

protocols and QAQC procedures.

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 (eg ‘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 (eg

submarine nodules) may warrant disclosure of detailed

information

RC drilling was used to obtain a 1 m sample from a 3.5 to

4 kg sample which was pulverised by an LM2 to produce

two subsamples, for multielement analysis in Mt Isa and

gold analysis in Townsville.

Drilling

techniques

Drill type (eg core, reverse circulation, open-hole hammer,

rotary air blast, auger, Bangka, sonic, etc) and details (eg

core diameter, triple or standard tube, depth of diamond

tails, face-sampling bit or other type, whether core is

oriented and if so, by what method, etc).

Reverse Circulation Drilling has been undertaken using a

face sampling percussion hammer with 5 1/4" bits

Drill sample

recovery

Method of recording and assessing core and chip sample

recoveries and results assessed.

Reverse Circulation recoveries are monitored using visual

means, approximating bag weight to theoretical weight

and checking sample loss though outside return and

sampling equipment.

Measures taken to maximise sample recovery and ensure

representative nature of the samples.

Reverse Circulation holes are collared with a well-fitting

stuffing box, material to outside return minimized.

Drilling is undertaken using auxiliary compressors and

boosters to keep hole dry and lift the sample to the

sampling equipment. Cyclone and sampling equipment is

checked regularly and cleaned. Hole is flushed at end of

each sample and end of rod.

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.

Recovery is visually checked and sample loss of the fine

or coarse fraction is attempted to be minimized using

SMD RC drilling protocols.

Log

gin

g

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.

Logging is carried out by a geologist, using SMD logging

system which has developed to accurately reflect the

geology of the area and mineralisation styles.

With very few geologists having worked on the

project, the level of consistency of logging remains high.

Whether logging is qualitative or quantitative in nature.

Core (or costean, channel, etc) photography.

Reverse Circulation logging is both qualitative and

quantitative in nature and captures downhole depth,

colour, lithology, texture, alteration, sulphide type,

sulphide percentage, structure. Core logging also

captures RQD, Recovery, and orientated structures.

Magnetic susceptibility also collected.

The total length and percentage of the relevant

intersections logged.

All drillholes are logged in full.

Sub-sampling

techniques and

sample

preparation

If core, whether cut or sawn and whether quarter, half or

all core taken.

No core holes drilled at Greenzone or Greenback

If non-core, whether riffled, tube sampled, rotary split, etc

and whether sampled wet or dry.

RC samples are riffle split, when dry. If sample is wet, the

sample is dried and split or a scoop is used.

For all sample types, the nature, quality and

appropriateness of the sample preparation technique.

The samples are prepared using an accredited laboratory

and follow industry best standard including, oven drying,

coarse crushing of core, followed by pulverization of the

entire sample in a LM2 to a grind size of 85% passing 75

micron.

Quality control procedures adopted for all sub-sampling

stages to maximise representivity of samples.

Field QC procedures involve the use of certified reference

material as assay standards, along with blanks and

duplicates.


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.

Reverse circulation field duplicates are taken 2 in 100

samples.

Whether sample sizes are appropriate to the grain size of

the material being sampled.

The sample sizes are believed to be appropriate to

correctly represent the style, thickness of copper, gold

mineralisation in the Mt Isa Inlier.

Quality of assay

data and

laboratory tests

The nature, quality and appropriateness of the assaying

and laboratory procedures used and whether the technique

is considered partial or total.

Analysis of Cu, Fe and S was completed at Mt Isa using

the ICP41 scheme, while Au was analysed by ALS in

Townsville using fire assay AA25.

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.

No geophysical tools were used to determine any

element concentrations used in this resource estimate.

A handheld XRF instrument was used to determine

samples to be sent off for wet chemical analysis.

Nature of quality control procedures adopted (eg

standards, blanks, duplicates, external laboratory checks)

and whether acceptable levels of accuracy (ie lack of bias)

and precision have been established.

ALS laboratories QAQC includes insertion of certified

standards, blanks and check samples and fineness checks

to ensure grind size of 85% passing 75 micron as part of

their own internal procedures.

Syndicated Metals inserts certified standards and

duplicates into the sample sequence. Field duplicates and

standard control samples have been used at a frequency

of 2 field duplicates and 6 standards per 100 samples.

Verification of

sampling and

assaying

The verification of significant intersections by either

independent or alternative company personnel.

The ore intersections at Greenzone have been checked

by Runge during their 2011 resource estimation of

Greenzone.

The use of twinned holes. Twinned holes have not yet been used.

Documentation of primary data, data entry procedures,

data verification, data storage (physical and electronic)

protocols.

Geological, Geotechnical and sampling information is

initially collected through an electronic logging system.

Discuss any adjustment to assay data. No adjustments or calibrations were made to any assay

data used in this estimate.

Location of data

points

Accuracy and quality of surveys used to locate drill holes

(collar and down-hole surveys), trenches, mine workings

and other locations used in Mineral Resource estimation.

All SMD drill holes have been accurately surveyed by

contract surveyors using a DGPS instrument. For the

majority of holes, downhole surveys have been

conducted at regular intervals using single shot cameras.

Specification of the grid system used. GDA94 MGA Zone 54 datum North.

Quality and adequacy of topographic control. A LIDAR topographic survey has been undertaken and is

nominally accurate to +/- 0.3m on flat terrain.

Data spacing

and distribution

Data spacing for reporting of Exploration Results. The Drill spacing was considered adequate to establish

both geological and grade continuity.

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.

The Drill spacing was considered adequate to establish

both geological and grade continuity.

Whether sample compositing has been applied. All samples were collected as 1m samples. No

compositing was necessary.

Orientation of

data in relation

to geological

structure

Whether the orientation of sampling achieves unbiased

sampling of possible structures and the extent to which this

is known, considering the deposit type.

The drill orientation has not been optimal. Two directions

of drilling completed. No section, with ore grade

intercepts, has more than one hole in the same direction.

If the relationship between the drilling orientation and the

orientation of key mineralised structures is considered to

have introduced a sampling bias, this should be assessed

and reported if material.

No bias is currently known.

Sample security

The measures taken to ensure sample security. Samples are stored on site and transported to ALS

laboratories in Mt Isa by Syndicated Metals for

Preparation. Sample numbers used for drilling.

Audits or

reviews

The results of any audits or reviews of sampling techniques

and data.

No site visit undertaken.

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