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2/5/2016 W Resources PLC | La Parrilla JORC estimate | FE InvestEgate

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W Resources PLC

La Parrilla JORC estimate

RNS Number : 1891O

W Resources PLC

05 February 2016

5 February 2016

W Resources Plc

("W" or the "Company")

La Parrilla JORC Estimate - 16% Increase in Contained WO3 W Resources Plc (AIM:WRES), the tungsten, copper and gold mining, exploration anddevelopment company with assets in Spain and Portugal, announces a significant upgrade to itsJORC compliant mineral resource estimate at its La Parrilla Project, located in Spain, followingthe completion of the new mineral resource estimate by Golder Associates.

Highlights- The total resources estimate for La Parrilla has increased to 51 million tonnes ('mt') at

0.096% WO3 (tungsten trioxide) and 0.108% Sn (tin)- A substantial increase of 16% contained WO3 and 7% increase in average WO3 grade- A large increase of 29% contained Sn and a 19% increase in Sn grade- Importantly, the quality of the resource definition has also increased significantly, with an

indicated resource of 36mt which equates to 70% of the total resource estimate, up fromzero in the previous 2013 estimate

- Large resource of 13mt at 0.101% WO3 at 0.04% cut-off in the Fast Track Mine ('FTM')area including at a 800 ppm cut-off 6mt at 0.146% WO3

- Maiden resource at La Parrilla West ('LPW') of 3mt at 0.158% WO3 at 0.08% cut-off (LPWhas the potential to significantly increase with further extension drilling)

- High grade outcrops at the FTM and at LPW provide the potential for access to highgrade low cost ore in the critical early development years of the project.

La Parrilla JORC Resource 2016 – Golder Associates



Overall Mineral Resources at 0.04% WO3 cut-off

2016 Estimate Previous 2013Estimate Change

Total Resource

Million Tonnes 51 mt 47 mt + 4 mtAt WO3 Grade 0.096% 0.090% + 7%

Sn (ppm) 108 91

Indicated Resource

Million Tonnes 36 mt zero + 36 mtAt WO3 Grade 0.096% zero

Sn (ppm) 115 zero

Inferred Resource

Million Tonnes 15 mt 47 - 32 mtAt WO3 Grade 0.095% 0.090% + 6%

Sn (ppm) 92 91 New FTM and LPW Higher Grade Resources at 0.04% WO3 cut-off

2016 Estimate Previous 2013Estimate Change

FTM IndicatedResource


FTM InferredResource


LPW IndicatedResource


LPW InferredResource

Million Tonnes 4 mt Zero + 4 mtAt WO3 Grade 0.998% zero

Mine optimisation of the resource has commenced and mine development plans and scheduleswill be completed and reported in Q2 2016.

Commenting on the results Michael Masterman, Chairman of W Resources said: "Thislarger JORC Mineral Resource estimate is a very strong result for W Resources, with asubstantial upgrade in the quality of the resource estimate to the indicated category, andincreases in grade and tonnage across the entire resource. The strong results in the FTM areaand the LPW area confirm that the deposit is open to the south, west and north and that therecently discovered high grade outcrops can be incorporated into mine feed schedules.

"Mine planning and engineering is advanced and we look forward to the upgraded developmentand production plan in Q2."

Enquiries:W Resources PlcMichael MastermanT: +44 (0) 20 7193 7463www.wresources.co.uk

Grant Thornton UK LLPColin Aaronson / Jen Clarke / Harrison ClarkeT: +44 (0) 20 7383 5100

SI Capital - Joint BrokerAndy Thacker / Nick EmersonT: +44 (0) 1483 413500www.sicapital.co.uk

Gable CommunicationsJustine JamesT: +44 (0) 20 7193 7463M: +44 (0) 7525 324431

Northland Capital Partners - Joint BrokerJohn Howes / Abigail Wayne (Corporate Broking)T: +44 (0) 20 7382 1100



www.northlandcp.co.uk

About La ParrillaThe La Parrilla project site is situated in the Extremadura region of southwest Spain, in the Provinces of

Caceres-Badajoz, approximately 310 km southwest of Madrid. The site has exceptional infrastructure in

place, which is accessed directly from the highway along a 3 km asphalt road and is serviced by electricity

and water. The project comprises a tungsten mine and a tungsten tailings project. The mineral resource

estimated by Golder in February 2016 at 0.04% WO3 cut-off grade is 51 million tonnes at 0.096% WO3 and

0.108 Sn, making it one of the largest tungsten deposits in the western world.

Technical information in this report has been prepared in accordance with the JORC Code and approved for inclusion byMr Fernando de la Fuente, and Mr. Andrew Weeks.Technical information in this report and on the W website has been prepared in accordance with the JORC Code andapproved for inclusion by Mr Fernando de la Fuente, is a 'qualified person' in respect of the AIM Rules for Companies withover 41 years' experience in the Exploration and Mining Geology industry. Mr de la Fuente holds a B.Sc. in Geology andan MSc in Geology from the University of Granada in Spain. He is also a member of the Spanish College of Geologists(Number 49), the Spanish Society of Mineralogy, founder member of the Spanish Society of Geology, member of theSpanish Association of Applied Geology to Mineral Deposits, member of the Society for Mining, Metallurgy andExploration, Inc., member of PDAC.Mr Andrew Weeks is the Competent Person responsible for the geological interpretation (wireframe model), MineralResource estimation and classification of La Parrilla Tungsten Deposit. Mr Andrew Weeks is a full-time employee ofGolder Associates Pty Ltd and a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Weeks has sufficientrelevant experience to the style of mineralisation and type of deposit under consideration and to the activity for which he isundertaking to qualify as a Competent Person as defined in the JORC Code, 2012 Edition.

The JORC Code Assessment Criteria

The JORC Code, 2012 Edition describes a number of criteria, which must be addressed in the

Public Reporting of Mineral Resource estimates. These criteria provide a means of assessing

whether or not parts of or the entire data inventory used in the estimate are adequate for that

purpose. The Mineral Resource estimates stated in this document are based on the criteria set

out in Table 1 of that Code (Table 3).

Table 3: JORC Code Table 1

JORC Code Assessment Criteria Comment

Section 1 Sampling Techniques and Data

Sampling Techniques ¡ Two types of samples were used in La Parrilla's

Mineral Resources Estimate, samples collected

from reverse circulation (RC) holes and from

diamond drill (DD) holes.

¡ Fifty-seven RC holes were drilled at La Parrilla;;

forty of them were drilled in 2015. For the 2015

drilling campaign, all RC samples were collected

at 1 m interval, weighing on average at 35 kg

with an average recovery of 89%. RC samples

from previous drilling campaigns were mostly

collected at 3 m interval with a range of 1 m to

6 m in length. Sample weights and recovery are

not known for these samples.

¡ Eighty DD holes were drilled at La Parrilla;; fifteen

of them were drilled in 2015. For the 2015

drilling campaign, DD samples were collected at

various length depending on the geology,

ranging from 1.7 m to 5.6 m with the majority

taken at 3 m length. DD samples from previous

drilling campaigns were mostly collected at 2 m

or 3 m interval with a range of 0.5 m to 113 m in

length.

¡ Site observation indicates that the DD samples

show highly variable recovery, especially in the

top 25 to 50 m. Coarse-grained and friable

scheelite mineralisation is occasionally washed

out in DD core sample;; hence the inclusion of

Nature and quality of sampling (e.g. cut channels,random chips, or specific specialised industrystandard measurement tools appropriate to theminerals under investigation, such as downholegamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting thebroad meaning of sampling. Include reference to measures taken to ensuresample representivity and the appropriate calibrationof any measurement tools or systems used. Aspects of the determination of mineralisation that areMaterial to the Public Report. In cases where'industry standard' work has been done this would berelatively simple (e.g. 'reverse circulation drilling wasused to obtain 1 m samples from which 3 kg waspulverised 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 inherentsampling problems. Unusual commodities ormineralisation types (e.g. submarine nodules) maywarrant disclosure of detailed information.



DD samples may provide a conservativeestimate of Mineral Resources.

Drilling Techniques ¡ DD method uses NQ and HQ drill sizes. Corewas not orientated.

¡ All La Parrilla RC drilling during 2015 used 140mm diameter face-sampling bits with an effectivesampling diameter of 136 mm.

Drill type (e.g. core, reverse circulation, open-holehammer, rotary air blast, auger, Bangka, sonic, etc.),and details (e.g. core diameter, triple or standardtube, depth of diamond tails, face-‐‑sampling bit orother type, whether core is oriented and if so, by whatmethod, etc.).Drill Sample Recovery¡ Sample recovery and sample weight are not

available for RIOIBEX's drill holes drilledbetween 1985-1986.

¡ Sample recovery and sample weight wererecorded onto a logging sheet, photographedand inserted in an Excel spreadsheet.

¡ DD holes drilled between 2007 to 2012 have anaverage recovery of 73%. DD holes drilled in2015 have an average recovery of 92%. Siteobservation indicates that the DD samples showhighly variable recovery, especially in the top 25to 50 m. Coarse-‐‑grained and friable scheelitemineralisation is occasionally washed out in DDcore sample.

¡ RC holes drilled in 2015 have an averagerecovery of 89%.

Method of recording and assessing core and chipsample recoveries and results assessed. Measures taken to maximise sample recovery andensure representative nature of the samples. Whether a relationship exists between samplerecovery and grade and whether sample bias mayhave occurred due to preferential loss/gain offine/coarse material.

Logging¡ All DD core logging captures degree of

weathering, and angles, width and mineralogy ofthe quartz- scheelite veining.

¡ No logging data exists for the RIOIBEX RCdrilling, but IRS RC campaigns in 2015 recordsthe weight of the sample. A UV and sometimeslens reconnaissance is done but recorded insheets and tables used for reference, notincorporated in the database. Measuring thewidth of veining over the RC sample interval isnot possible.

¡ Field logging is recorded on paper and uploadedonto Microsoft Excel. All drill hole data issubsequently imported in to GEMCOMdatabase.

Whether core and chip samples have beengeologically and geotechnically logged to a level ofdetail to support appropriate Mineral Resourceestimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative innature. Core (or costean, channel, etc.),photography. The total length and percentage of the relevantintersections logged.

Sub-‐‑Sampling Techniques and SamplePreparation¡ La Parrilla RC sampling in 2015 was by the

following process:§ Drill collar location is pegged in the field by

proper surveying using total station.§ Sighter lines are established alongside the

planned collar location to allow correctalignment of the drill rig.

§ The sample "lot" is bagged at 1 mincrements at the drill rig. Samples areplaced over a thick rubber carpet to preventdamage.

§ Sample bags are loaded into a skip andtransported to La Parrilla sample farm.

§ Each 1 m lot is dried, weighted and groundto a particle size of nominal 75% passing 1

If core, whether cut or sawn and whether quarter, halfor all core taken. If non-‐‑core, whether riffled, tube sampled, rotary split,etc., and whether sampled wet or dry. For all sample types, the nature, quality andappropriateness of the sample preparationtechnique. Quality control procedures adopted for allsub-‐‑sampling stages to maximise representivity ofsamples. Measures taken to ensure that the sampling is



mm, with an average 87% passing. Sampleis then split to approximately 3 kg through a3-tiered Jones riffle splitter.

§ Each one-meter 3 kg sample is despatchedto ALS Chemex in Camas, Seville to prepare200 gm pulps.

¡ DD cores drilled by IRS are cut by diamond sawalong a line marked down the centre of the core,splitting the core into two equal halves. One halfof the core and half of the fines is ground to aparticle size of nominal 75% passing 1 mm, withan average 87% passing

¡ The remaining half core, together with half thefines collected at the diamond saw are stored incore tray on site.

¡ All pulps are flown to ALS Chemex laboratory inIreland for assay. A 0.200 g sample is added tolithium metaborate flux (0.90 g), mixed well andfused in a furnace at 1000°C. The resulting meltis then cooled and dissolved in 100 mL of 4%HNO3 or 2% HCl3 solution. This solution is thenanalysed by Inductively Coupled Plasma - MassSpectroscopy (ICP-MS).

¡ At ALS facilities, a 0.200 g sample is added tolithium metaborate flux (0.90 g), mixed well andfused in a furnace at 1000°C. The resulting meltis then cooled and dissolved in 100 mL of 4%HNO3 or 2% HCl3 solution. This solution is thenanalysed by ICP-MS.

¡ When W or Sn assays are above detection limitsamples are flown to ALS in Vancouver forassay with XRF12k

¡ The following elements were included in theanalysis: As (only for RC samples), Ba, Ce, Cr,Cs, Dy, Er, Eu, Ga, Gd, Hf, Ho, La, Lu, Nb, Nd,Pr, Rb, Sm, Sn, Sr, Ta, Tb, Th, Tm, U, V, W, Y,Yb and Zr.

representative of the in situ material collected,including for instance results for fieldduplicate/second-half sampling. Whether sample sizes are appropriate to the grainsize of the material being sampled.

Quality of Assay Data and Laboratory Tests¡ Short wave UV light was used to identify the

presence of scheelite in the core but is not useas a quantitative or semi-quantitative method.

¡ The historic drilling campaigns had fieldduplicates representing 3% of submittedsamples. Samples were submitted to GeometLaboratory in the UK with those samplesreturning WO3 results greater than 400 ppm re-assayed at Adaro laboratory, Spain. The historicsamples were originally assayed throughpressed pellet XRF but this was changed tofused bead XRF after contamination issues werefound.

¡ 116 repeats of pulps (2%) from historic drill holeswere sent to an external laboratory with analysesdone using fused bead XRF, pressed pellet XRF,ICP-MS and X-ray techniques.

¡ In the 2012 and 2015 drilling campaigns,internationally certified standards, blankssamples and duplicate samples were regularlyintroduced within each sample batch.

¡ Internal laboratory cross checking methods are

The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRFinstruments, etc., the parameters used in determiningthe analysis including instrument make and model,reading times, calibrations factors applied and theirderivation, etc. Nature of quality control procedures adopted(e.g. standards, blanks, duplicates, externallaboratory checks) and whether acceptable levels ofaccuracy (i.e. lack of bias) and precision have beenestablished.



implemented by ALS.¡ Substantial duplicate samples were collected for

the optimisation of sub-sampling procedures.¡ Assay data reported as per laboratory final

reports and certificates.

Verification of Sampling and Assaying

¡ Thirteen twin holes were drilled and result showsDD samples are losing coarse-grained, friablescheelite mineralisation due to drilling method. Study also shows that samples closer to thesurface and inside the pit show higher variancedue to the effect of weathering and blasting.

¡ All core boxes are photographed and a photoarchive is maintained within the drilling database.

The verification of significant intersections by either

independent or alternative company personnel.

The use of twinned holes.

Documentation of primary data, data entry

procedures, data verification, data storage (physical

and electronic) protocols.

Discuss any adjustment to assay data.

Location of Data Points

¡ All drill holes drilled since 2007 have beensurveyed by total station with drill hole collarcoordinates referenced to the European Datum50 grid and ETRS89 grids. Rioibex drill holeshave accurate drill collar location surveyed bytotal station and photorestitution map.

¡ All drill holes have downhole survey information. Drill holes from the La Parrilla drill campaignshave been surveyed at mostly less than 50 mdownhole interval. In 2015, DD holes downholesurvey measurement are mostly taken at 12 minterval and No downhole survey were carriedout for RC holes.

¡ Downhole survey are taken using Eastmansingle shot for the RIOIBEX drilling campaign,Eastman multishot for the Hercynian drillingcampaign, Reflex Gyro for drill holes drilledduring 2012 and DeviTool-PeeWee in 2015.

¡ New restitution topographic map with 1 mcontours from 2015 flight and bathymetric sonarsurvey was used.

Accuracy and quality of surveys used to locate drill

holes (collar and downhole surveys), trenches, mine

workings and other locations used in Mineral

Resource estimation.

Specification of the grid system used.

Quality and adequacy of topographic control.

Data Spacing and Distribution

¡ Completed drill holes were designed for testingdifferent targets and have irregular spacing.

¡ Data spacing is irregular but close to the existingpit, drill holes are spaced at approximately 25 mby 25 m. Samples are collected as 1 mdownhole and no additional sample compositinghas taken place.

¡ Data spacing and distribution is currentlyconsidered by the Competent Person to besufficient only for Indicated and Inferred MineralResources and thus currently not sufficient tosupport an Ore Reserve estimate.

Data spacing for reporting of Exploration Results.

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.

Whether sample compositing has been applied.

Orientation of Data in Relation to Geological

Structure

¡ Drill holes have generally been drilled on linesnormal to the strike of mineralisation. Drill holesare either vertical or commonly -60° toward 300°.

Whether the orientation of sampling achieves

unbiased sampling of possible structures and the

extent to which this is known, considering the deposit

type.

If the relationship between the drilling orientation and



the orientation of key mineralised structures isconsidered to have introduced a sampling bias, thisshould be assessed and reported if material.

Sample Security

¡ Security of historic RIOIBEX drill samples isunknown.

¡ La Parrilla drill samples are packaged on siteand sent to ALS Chemex in Camas, Seville forpreparation of pulps with a chain of custodysystem in place for samples drilled during the LaParrilla campaigns. Pulp samples are then flownto ALS Chemex in Ireland or Canada under ALSChemex security and chain of custodyprocedures.

¡ Core samples were packed on thick plastic bagswith sample reference indicated both in theoutside and inside with permanent ink markerpens. For transport, the plastic bags werepacked in thick plastic containers with samplereference indicated on the outside withpermanent ink marker.

¡ All RC samples were packed in thick plastic bagswith sample reference indicated both on theoutside and inside with permanent ink markerpens. For transport, the plastic bags werepacked in big-bags containers.

¡ Depending on the number of samples andurgency of the results, contract freightcompanies or own driver have been used totransport the sample to sample preparationlaboratory.

The measures taken to ensure sample security.

Audits and Reviews

¡ La Parrilla has instigated many of the reviews ofsampling techniques. Golder has been providedwith the results of various check samplingprogrammes and completed its own independentanalysis of the data provided.

¡ Results of these are presented in the samplingQAQC section above.

The results of any audits or reviews of samplingtechniques and data.

Section 2 Reporting of Exploration Results

Mineral Tenement and Land Tenure Status ¡ The La Parrilla property consists of three mineralconcessions: Adelaida (No.7766), Victoria (No.7768-A) and La Parrilla (No. 7768-B). Theseconcessions cover 1000 hectares, are currentlyowned by Arypex S.L, a private company ownedby the Bonilla family.

¡ Arypex's concessions are valid until 2068.¡ IRS exercised an option to acquire 100% of the

Project from Arypex in August 2015.¡ In addition, the Project is subject to a net smelter

royalty payable on production (1.5% from sales).

Type, reference name/number, location andownership including agreements or material issueswith third parties such as joint ventures, partnerships,overriding royalties, native title interests, historicalsites, wilderness or national park and environmentalsettings. The security of the tenure held at the time of reportingalong with any known impediments to obtaining alicence to operate in the area.

Exploration Done by Other Parties

¡ Exploration has been conducted by RIOIBEXduring 1985 and 1986 and by HercynianResources during 2007 and 2008. Priorexploration was conducted by Peñarroya EspañaSA;; however, this data has since been lost.

Acknowledgment and appraisal of exploration byother parties.

Geology



¡ La Parrilla deposit is a north-east strikingtungsten deposit with scheelite mineralisationhosted within quartz veins ranging from stringersto stock work in nature. Veining dipspredominantly at 30° to the south-east.

Deposit type, geological setting and style ofmineralisation.

Drill hole information

¡ Not applicable. Exploration results havepreviously been reported. This Table relates tothe reporting of the Mineral Resource estimates.

Data aggregation methods ¡ For the resource estimate, samples return withbelow detection limit grades are replace with halfthe detection limit and samples with gradesabove upper detection limit is replace with theupper detection limit.

¡ No metal equivalents used or statedRelationship between mineralisation widths and

intercept lengths¡ Drill intersections are not reported as true widths.

Diagrams

¡ Not applicable. Exploration results havepreviously been reported. This Table relates tothe reporting of the Mineral Resource estimates.

Balance reporting ¡ Not applicable. Exploration results havepreviously been reported. This Table relates tothe reporting of the Mineral Resource estimates.

Other substantive exploration data ¡ Not applicable. Exploration results havepreviously been reported. This Table relates tothe reporting of the Mineral Resource estimates.

Further work ¡ Further work will include detailed interpretation ofresults and further drilling.

Section 3 Estimation and Reporting of Mineral Resources

Database Integrity ¡ All drilling data is contained in an Excel databaseand stored by IRS. Validation in the database isset to prevent the accidental duplication,alteration or deletion of records suitable for useduring this resource estimate.

Measures taken to ensure that data has not beencorrupted by, for example, transcription or keyingerrors, between its initial collection and its use forMineral Resource estimation purposes. Data validation procedures used.Site Visits

¡ Mr Andrew Weeks, Principal Mining Geologist,and Mr Sergio Tenorio, Senior Geologist fromGolder visited the La Parrilla project on 7 and 8August 2015. The purpose of the visit was tohold discussions with project staff and gainfamiliarity with the deposit geology and scale,site land-use and topography, and observe somesite practices.

¡ Only RC drilling and sample collection wastaking place at the time, so Golder did notobserve DDH drilling or sampling nor visited thesample preparation laboratory.

¡ Mr Weeks and Mr Tenorio made the followingobservations:§ The exploration programme is well

organised. Office, laboratory, and samplepreparations areas are clean, tidy, and ingood repair. Housekeeping appears to be apriority.

§ RC drilling is to good international standards,

Comment on any site visits undertaken by theCompetent Person and the outcome of those visits. If no site visits have been undertaken indicate whythis is the case.



although some safety procedures could beimproved (e.g. rod handling procedure;;maintenance and use of whip checks onsample hoses).

§ Drill pad preparation and set out isexcellent. There are good controls on drill rig(hole) alignment.

§ RC sample recovery appears exceptional.§ Discussion about processes and viewing of

DDH core cutting and sampling areasuggests that DDH processes are goodstandard.

§ The use of plastic boxes for core samples toprevent spillage from sample bags isinnovative.

§ Plans for validation of RC sampling asdiscussed with site personnel are supportedby Golder.

§ Land-use and topography should not be amajor impediment in developing the site,although placement of waste dumps may belimited to flat areas in the south-east of theexisting pit.

§ There appears to be sufficient space foradding additional circuits to the processplant.

Geological Interpretation¡ The resource estimation has been based on the

geological interpretation supplied by WResources with minor corrections by Golder toimprove three-dimensional (3D) conformity. WResources examined the mineralised interceptsin each drill hole and grouped these into specificvein packages.

¡ W Resources provided Golder with the sectionalinterpretation of these vein packages, thenGolder tied these together in 3D to createwireframe solids of each vein package.

¡ Three dimensional wireframe modelling werecarried out using Vulcan® software.

Confidence in (or conversely, the uncertainty of) thegeological interpretation of the mineral deposit. Nature of the data used and of any assumptionsmade. The effect, if any, of alternative interpretations onMineral Resource estimation. The use of geology inguiding and controlling Mineral Resource estimation. The factors affecting continuity both of grade andgeology.

Dimensions¡ The mineralised zone is approximately 1000 m

long (north-west - south-east) by 400 m wide. The mineralisation goes from surface outcrop toapproximately 300 m below the surface in thedeepest zone.

The extent and variability of the Mineral Resourceexpressed as length (along strike or otherwise), planwidth, and depth below surface to the upper andlower limits of the Mineral Resource.

Estimation and Modelling Techniques¡ Mineralisation was defined by mineralisation

zones identified from downhole veining andgeochemical data. Mineralised material isidentified as being >1% accumulative veinacross the sampling interval, other material ischaracterised as waste.

¡ The estimation technique used for the MineralResource estimation is the geostatistical methodof Ordinary Kriging. Parameters were derivedfrom variograms to estimate the average gradefor WO3, Sn and As.

¡ Block sizes were selected with respect to the

The nature and appropriateness of the estimationtechnique(s) applied and key assumptions, includingtreatment of extreme grade values, domaining,interpolation parameters, and maximum distance ofextrapolation from data points. If a computer assistedestimation method was chosen include a descriptionof computer software and parameters used. The availability of check estimates, previousestimates and/or mine production records andwhether the Mineral Resource estimate takesappropriate account of such data.



nominal drilling spacing to ensure acceptablelocal estimation quality.

¡ The block size selected for this deposit is 10 m(X) by 10 m (Y) by 5 m (Z). The sub-block sizeis 5 m (X) by 1 m (Y) by 2.5 m (Z).

¡ All samples were composited to 3 m forestimation purposes.

¡ The estimation was conducted in three passeswith the search size increasing for each pass.

¡ High grade spatial restraining was applied forgrade estimation of individual domains. Thethreshold uses to restrict high grades was basedon the assessment of sample statistics andprobability plots. Restraining of high grades wasto within 20 m by 20 m by 4 m distance insidethe vein packages.

¡ Each individual domain was estimate separatelyand an unfolding technique was applied forestimation to better capture mineralisationcontinuity within the domains

¡ The model was validated visually and statisticallyusing comparisons to composite data statistics,swath plots and evaluation of the gradeestimation smoothing effect.

The assumptions made regarding recovery ofby-‐‑products. Estimation of deleterious elements or othernon-‐‑grade variables of economic significance(e.g. sulfur for acid mine drainage characterisation). In the case of block model interpolation, the blocksize in relation to the average sample spacing and thesearch employed. Any assumptions behind modelling of selectivemining units. Any assumptions about correlation betweenvariables. Description of how the geological interpretation wasused to control the resource estimates. Discussion of basis for using or not using gradecutting or capping. The process of validation, the checking process used,the comparison of model data to drill hole data, anduse of reconciliation data if available.

Moisture¡ All tonnages are based on volume

measurements converted using dry bulkdensities.

Whether the tonnages are estimated on a dry basis orwith natural moisture, and the method ofdetermination of the moisture content.

Cut-off Parameters¡ The resource model is constrained by

assumptions about economic cut-off grades. The tabulated resources were reported usingcut-off grade of 400 ppm WO3 which was appliedon a block by block basis.

The basis of the adopted cut-off grade(s) or qualityparameters applied.

Mining Factors or Assumptions¡ W Resources have a vision to develop an open

pit mining and processing operation at La Parrillawith production rates circa. 2.2 million perannum.

¡ Golder would expect that open pit production atthose rates will require medium scale miningequipment - say 100 to 150 tonne excavatorsand matching truck fleet - on typical miningbench heights of around 2.5 to 5 m.

¡ Golder does not expect any visual control on ore-waste contacts during mining, especially duringnight shift, so future grade control practices willbe critical for minimising misdirection.

Assumptions made regarding possible miningmethods, minimum mining dimensions and internal(or, if applicable, external) mining dilution. It is always necessary as part of the process ofdetermining reasonable prospects for eventualeconomic extraction to consider potential miningmethods, but the assumptions made regarding miningmethods and parameters when estimating MineralResources may not always be rigorous. Where this isthe case, this should be reported with an explanationof the basis of the mining assumptions made.

Metallurgical Factors or Assumptions¡ Detailed test work on ore sorting, pressure jig,

standard hutch jig, scrubbing tests, gravityconcentration on the fines, plus arsenic flotationand electrostatic separation testing have beencarried out. A preliminary 72.8% tungsten metalrecovery is used in the modelling, howeverfurther optimization is needed in the backendgravity circuit to gain confidence in the process

The basis for assumptions or predictions regardingmetallurgical amenability. It is always necessary aspart of the process of determining reasonableprospects for eventual economic extraction toconsider potential metallurgical methods, but theassumptions regarding metallurgical treatmentprocesses and parameters made when reportingMineral Resources may not always be rigorous.



flowsheet.

¡ Arsenic removal is not an issue and investigation

is underway for oxidizing the flotation product

(sulfur flotation) for sale as a possible tertiary

product.

¡ Arsenic content in the tungsten product can be

reduced to below the EU transportable limit and

subsequently end up with a clean, possibly

saleable product. Alternatively, the arsenic can

be oxidized to a stable form with bacteria before

disposal.

Where this is the case, this should be reported withan explanation of the basis of the metallurgicalassumptions made.

Environmental Factors or Assumptions¡ Golder is not aware of any environmental issues

that would affect the eventual economic

extraction of the deposit.

¡ While infrastructure requires some remediation

prior to commencing operations, the site already

has facilities for capturing process water, tailings

residue facilities, and channels for diverting

storm and flood water around the open pit.

Assumptions made regarding possible waste andprocess residue disposal options. It is alwaysnecessary as part of the process of determiningreasonable prospects for eventual economicextraction to consider the potential environmentalimpacts of the mining and processing operation. While at this stage the determination of potentialenvironmental impacts, particularly for a greenfieldsproject, may not always be well advanced, the statusof early consideration of these potentialenvironmental impacts should be reported. Wherethese aspects have not been considered this shouldbe reported with an explanation of the environmentalassumptions made.

Bulk Density¡ Bulk density values were assigned based on

mineralisation. The bulk densities were based

on immersion measurements from 692 samples

from 43 diamond drill holes.

Whether assumed or determined. If assumed, thebasis for the assumptions. If determined, the methodused, whether wet or dry, the frequency of themeasurements, the nature, size andrepresentativeness of the samples. The bulk density for bulk material must have beenmeasured by methods that adequately account forvoid spaces (vugs, porosity, etc.), moisture anddifferences between rock and alteration zones withinthe deposit.Discuss assumptions for bulk density estimates usedin the evaluation process of the different materials.

Classification¡ Mineral Resources are classified according to

the following criteria and assumptions:

§ Measured Resources: no measured material

has been defined for this deposit.

§ Indicated Resources:

-‐‑ Has a relative drill spacing of 100 by 25m or less

-‐‑ Has a higher estimation confidence asreflected by:

· Blocks that have a kriging slope ofregression above 0.7

· Blocks that are estimated within thefirst two passes

· Blocks that are estimated with 16 ormore samples

§ Inferred Resources: all remaining estimated

blocks, generally represented by

discontinuous and geologically complex

zones with poor drilling coverage.

The basis for the classification of the MineralResources into varying confidence categories. Whether appropriate account has been taken of allrelevant factors, i.e. relative confidence intonnage/grade estimations, reliability of input data,confidence in continuity of geology and metal values,quality, quantity and distribution of the data. Whether the result appropriately reflects theCompetent Person(s)' view of the deposit.



¡ Extrapolation of mineralisation from drill holes

was limited to half of the nominal drill hole

spacing on section.

Audits or Reviews¡ This Mineral Resource estimate is an update to

the previous estimates completed by Golder in

2013.

¡ No audits or reviews have been undertaken on

this Mineral Resource estimate.

The results of any audits or reviews of MineralResource estimates.

Discussion of Relative Accuracy/Confidence¡ The La Parrilla Mineral Resource is an estimate

of the global remaining in-situ WO3 after makingallowances for historical mining. No reliable

historical production data is available to compare

with this resource estimate.

¡ The revised Mineral Resource estimate

represents a 30% or a 5 million tonnes increase

over the previous estimate. The increase in the

total resource and higher resource confidence is

attributable to improved definition to mineralised

zones and extensions to mineralisation as a

result of the completion of infill and extension on

DD and RC drilling.

¡ The relative accuracy is reflected in the Mineral

Resource classification discussed above that is

in line with industry acceptable standards

Where appropriate a statement of the relativeaccuracy and confidence level in the MineralResource estimate using an approach or proceduredeemed appropriate by the Competent Person. Forexample, the application of statistical or geostatisticalprocedures to quantify the relative accuracy of theresource within stated confidence limits, or, if such anapproach is not deemed appropriate, a qualitativediscussion of the factors that could affect the relativeaccuracy and confidence of the estimate. The statement should specify whether it relates toglobal or local estimates, and, if local, state therelevant tonnages, which should be relevant totechnical and economic evaluation. Documentationshould include assumptions made and theprocedures used. These statements of relative accuracy and confidenceof the estimate should be compared with productiondata, where available.

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