Intrepid Mines Limited: Kitumba Drilling Results at Mumbwa Project

SYDNEY, AUSTRALIA--(Marketwired - April 9, 2015) - Intrepid Mines Limited (IAU.AX) ("Intrepid" or the "Company") advises that assay results from Phase 8 drilling conducted at the Kitumba prospect within the Mumbwa Project in west-central Zambia, have returned encouraging results.

Final drilling assay results have been received, including 13 diamond holes and 8 reverse circulation holes. The key results to note include:

• Highlights from infill drilling at Kitumba:

  • KITDD_041A: 42 metres @ 2.21% copper from 252-294 metres

  • KITDD_052: 22 metres @ 1.68% copper from 356-378 metres

  • KITDD_053: 64 metres @ 1.55% copper from 226-290 metres

  • KITDD_054: 26 metres @ 1.52% copper from 378-404 metres

• Highlights from geotechnical and sterilisation drilling:

  • KITDD_060: 12 metres @ 1.31% copper from 333-345 metres

  • KITDD_062: 7 metres @ 1.48% copper from 344-351 metres

  • KITDD_068: 39 metres @ 0.75% copper from 380-419 metres

• Highlights from drilling at Kitumba east:

  • KITDD_070: 20 metres @ 0.97% copper from 289-309 metres

• Highlights from RC drilling on new exploration targets:

  • o 7 metres at 0.71% copper from 43-50 metres, with a peak assay of 1 metre @ 0.98% copper from 46-47 metres

The Company's CEO, Scott Lowe said:

"We are pleased to provide the final assay results from the Phase 8 drilling program, as well as the results from some RC drilling on targets outside of Kitumba. We are particularly encouraged by the copper results returned from the RC drilling on Target H.

The Company recognizes that the current copper market is very challenging for new projects, and the next phase of operations will include work aimed at enhancing Kitumba economics. The objective of this work will be to deliver a project capable of attractive returns at lower copper prices and will involve a range of initiatives including drilling nearby satellite targets. We look forward to following up on Target H and other targets in the next drilling season, which will get underway immediately following the end of the wet season, expected to be around mid-April.

Feasibility work will continue to be staged to take account of economics and will incorporate these Phase 8 drill results along with 2015 drilling results and the outcome of value enhancement efforts. A revised Mineral Resource and Reserve estimate will form part of the future feasibility work."

The Company has received assay results for the following drill holes from the Phase 8 drilling program at Kitumba:

• KITDD_041A

• KITDD_052

• KITDD_053

• KITDD_054

• KITDD_056

• KITDD_057

• KITDD_058

• KITDD_059

• KITDD_060

• KITDD_062

• KITDD_068

• KITDD_069

• KITDD_070

The location of these drill holes is shown in Figure 1.

Figure 1: Phase 8 Kitumba area drill hole location plan, showing collar locations and planned development as presented in the Optimised PFS: http://media3.marketwire.com/docs/1001031-F1.pdf

Assay results for RC drilling of areas slated for infrastructure (sterilisation drilling) and on IP targets have been received for the following holes and are shown on Figure 2:

• KITRC_003

• KITRC_004

• KITRC_005

• KITRC_006

• HRC_002

• KAKRC_002

• KAKDD_004

• KAKDD_006

Figure 2. RC and sterilisation drill hole location plan showing collar locations and company tenure on hill shaded elevation model: http://media3.marketwire.com/docs/1001031-F2.pdf

Phase 8 Drilling Program

Drilling restarted at Kitumba in June 2014 and was completed in November 2014. A total of 33 diamond holes were completed for a total of 12,849 metres. The drill program was specifically designed to aid in further feasibility studies for both the proposed mine and process plant design. The drilling was targeting additional resource definition, the collection of further metallurgical samples, and geotechnical and hydrogeological assessment.

Table 1. Completed Phase 8 drill holes

ID	East	North	Z	Azi	Dip	EOH (m)	Comment
KAKDD_004	474960	8375409	1,267	90	-70	548	Sterilisation
KAKDD_005	476000	8375000	1,278	90	-60	550	Sterilisation
KAKDD_006	476247	8374300	1,272	90	-57	341	Sterilisation
KITDD_041A	479091	8373991	1,405	90	-75	599	Infill
KITDD_042A	479092	8373797	1,417	90	-70	539	Infill
KITDD_043	479044	8373908	1,409	90	-78	468	Infill
KITDD_044	479160	8373797	1,431	90	-70	459	Infill
KITDD_045	479189	8373921	1,408	90	-75	543	Infill
KITDD_046	479160	8373950	1,409	90	-70	455	Infill
KITDD_047	479212	8374067	1,420	90	-66	358	Infill
KITDD_048	479200	8373742	1,447	0	-90	542	Infill
KITDD_049	479217	8374017	1,427	90	-70	500	Infill
KITDD_050	479087	8373702	1,424	90	-70	468	Infill
KITDD_051	479215	8374098	1,424	85	-70	423	Infill
KITDD_052	479140	8374113	1,415	90	-70	444	Infill
KITDD_053	479172	8374024	1,415	0	-90	497	Infill
KITDD_054	479127	8374068	1,410	90	-70	551	Infill
KITDD_055	479256	8373862	1,450	0	-90	603	Infill
KITDD_056	478777	8373870	1,386	0	-90	196	Shaft
KITDD_057	478777	8373921	1,384	0	-90	196	Shaft
KITDD_058	478777	8374034	1,396	0	-90	329	Shaft
KITDD_059	478777	8374284	1,389	0	-90	214	Shaft
KITDD_060	478905	8374127	1,408	115	-70	522	Decline
KITDD_061	478572	8373954	1,380	239	-70	141	Decline
KITDD_062	478902	8373946	1,393	115	-70	500	Decline
KITDD_063	478363	8373829	1,359	0	-90	85	Decline
KITDD_064	478167	8373714	1,373	59	-70	71	Decline
KITDD_065	478090	8373664	1,378	239	-70	61	Decline
KITDD_066	477998	8373604	1,379	239	-70	46	Decline
KITDD_067	479275	8374000	1,439	88	-65	402	Kitumba east
KITDD_068	478690	8374000	1,387	87	-55	539	Kitumba west
KITDD_069	478800	8373910	1,390	90	-70	249	Kitumba west
KITDD_070	479300	8373900	1,433	88	-65	414	Kitumba east
						12,853

The collection of material for metallurgical analysis included samples representative of ore-feed (and gangue) from a conceptual mining schedule, comminution samples and feed for a pilot plant. Initial assay results were reported to the ASX in December 2014. Metallurgical holes were also designed to fill gaps in the existing resource and to inform a future update of the Mineral Resource Estimate. Select metallurgical/infill holes were also used for geotechnical and hydrological purposes.

Drilling that was specifically designed for geotechnical purposes only was also completed (no mineralisation expected: KITDD_061, KITDD_063, KITDD_064, KITDD_065 and KITDD_066 were not assayed). These holes were drilled into areas of planned development (boxcut, decline, air shafts). Geotechnical holes have been probed with an Acoustic Televiewer ("ATV") for the collection of detailed-high resolution structural and engineering data. Geotechnical samples for laboratory analysis have been collected and planned test work includes: unconfined compressive strength, direct shear, triaxial, Cerchar abrasivity index, slake durability and petrographic analysis.

Drilling Outside of Kitumba

Additional drilling outside the Kitumba resource included a fence of three RC holes on Target F, two RC holes on Target H and sterilisation drilling on areas slated for planned infrastructure (Table 2).

Figure 3: Mumbwa Project targets: http://media3.marketwire.com/docs/1001031-F3.pdf

Table 2. RC drilling

ID	East	North	z	Azi	Dip	EOH	Comments
						(m)
HRC_001	484935	8369628	1,332	310	60	300	Target H, not assayed
HRC_002	485555	8369135	1,307	310	60	94	Target H, hole Failed
KAKRC_001	474769	8374771	1,268	110	60	300	Target F, not assayed
KAKRC_002	475008	8374694	1,279	110	60	246	Target F
KAKRC_003	475251	8374591	1,295	110	60	288	Target F, not assayed
KITRC_003	477444	8372609	1,282	50	60	300	Sterilisation (planned camp)
KITRC_004	476859	8373314	1,275	50	60	300	Sterilisation (planned plant)
KITRC_005	477534	8373710	1,349	50	60	300	Sterilisation (planned waste rock dump)
KITRC_006	477943	837519	1,300	270	60	276	Sterilisation (planned water storage facility)

"Target H" RC Drilling - Assay Results

RC drilling in the Target H IP survey area was focused on a conductivity anomaly for HRC_001 and a coincident chargeability anomaly, conductivity lineament and copper in soils anomaly situated on an iron-breccia cap for HRC_002 (Table 2 and Figure 2). The holes were drilled at 60 degrees to crosscut key structural and stratigraphic boundaries. Samples were collected from intercepts identified as mineralised in logging and using a portable field XRF.

A total of 99 samples were collected for HRC_002, including quality control samples and were submitted to the laboratory for analysis. An oxidised zone of 7 metres at 0.71% copper ("Cu") from 43-50 metres, with a peak assay of 1 metre @ 0.98% Cu from 46-47 metres was returned. HRC_002 failed at 94 metres in leached and weathered material. Deep leaching is seen at Kitumba in response to the Kitumba fault zone, hydrothermal alteration and the acid generation capacity of sulphide material.

Given these encouraging results, a diamond tail will be drilled on HRC_002 following the end of the wet season (in the second quarter of 2015). HRC_001 was un-mineralised and not sampled.

Final results having passed QA/QC are summarised here.

Table 3. Summary of assay results for HRC_002.

From	To	Interval	Cu %
34	52	18	0.48
Including
43	50	7	0.71
86	89	3	0.36

"KIT" RC Drilling - Assay Results

RC drilling in the Kitumba area was focused on sterilisation drilling in areas of planned infrastructure (Table 2 and Figure 2). Samples were collected from intercepts identified as mineralised in logging and using a portable field XRF. Holes were drilled at 60 degrees to crosscut key structural and stratigraphic boundaries.

13 samples were collected for KITRC_003, 13 for KITRC_004, 211 for KITRC_005 and 138 for KITRC_006. These samples (including quality control samples), were submitted to the laboratory for analysis. Assays of note were only returned from KITRC_005. The best intercept from KITRC_005 was 4 metres @ 0.66% Cu from 202-206 metres.

Final results having passed QA/QC are summarised here.

Table 4. Summary of assay results for KITRC_005.

From	To	Interval	Cu %
149	159	10	0.45
171	177	6	0.48
201	207	6	0.56
Including
202	206	4	0.66

"Target F" RC Drilling - Assay Results

RC drilling in the southern part of the Kakozhi IP survey area was focused on "Target F", a zone of high chargeability coincident with a copper in soils anomaly (Table 2 and Figure 2). Holes were drilled at 60 degrees to crosscut key structural and stratigraphic boundaries. Samples were collected from intercepts identified as mineralised in logging and using a portable field XRF.

43 samples were collected for KAKRC_002, including quality control samples and were submitted to the laboratory for analysis. The peak assay returned was 1 metre @ 0.54% Cu from 148-149 metres. The IP and copper in soils anomaly at Target F has been interpreted as occurring on the contact between a Hook intrusive and the older Kundelungu metasediments. No samples were collected from KAKRC_001 and KAKRC_003. No further work is recommended.

Final results having passed QA/QC are summarised here.

Table 5. Summary of assay results for KAKRC_002.

From	To	Interval	Cu %
146	149	3	0.30

Kitumba Infill Drilling

KITDD_041A - Assay Results

KITDD_041A was drilled on an azimuth of 090, inclined 75 degrees to a depth of 599 metres. This hole was drilled to collect metallurgical samples as well as for resource definition. Intercepts of note include 42 metres @ 2.21% Cu from 252-294 metres.

A series of 537 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 6. Summary of assay results for drill hole KITDD_041A (azi 090, dip 75, EOH 599 m)

From	To	Interval	Cu %
2	38	36	0.33
52	56	4	0.34
68	106	38	0.34
136	146	10	0.31
172	182	10	0.40
225	300	75	1.40
Including
252	294	42	2.21
313	334	21	0.81
353	399	46	0.64
403	409	6	0.46
414	423	9	0.34
426	502	76	0.74
527	530	3	0.27
548	552	4	0.86

KITDD_052 - Assay Results

KITDD_052 was drilled on an azimuth of 90, inclined 70 degrees to a depth of 444 metres. This hole was drilled to collect metallurgical samples as well as for resource definition in the northern extent of the ore body. Intercepts of note include 22 metres @ 1.68% Cu from 356-378 metres.

A series of 367 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 7. Summary of assay results for drill hole KITDD_052 (azi 090, dip 70, EOH 444m)

From	To	Interval	Cu %
60	70	10	0.31
74	78	4	0.28
94	100	6	0.25
112	237	125	0.51
240	252	12	0.30
261	265	4	0.27
275	338	63	0.87
Including
281	293	12	2.15
349	353	4	0.38
356	404	48	1.02
Including
356	378	22	1.68
414	420	6	0.46
426	430	4	0.69

KITDD_053 - Assay Results

KITDD_053 was drilled vertically to a depth of 497 metres. This hole was drilled to collect metallurgical samples as well as for resource definition. Intercepts of note include 64 metres @ 1.55% Cu from 226-290 metres.

A series of 420 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 8. Summary of assay results for drill hole KITDD_053 (vertical, EOH 497 m)

From	To	Interval	Cu %
50	200	150	0.35
205	209	4	0.33
212	218	6	0.33
226	290	64	1.55
298	320	22	0.94
325	343	18	0.94
350	359	9	0.93
364	371	7	0.37
415	439	24	0.75
444	448	4	0.43
451	456	5	1.28
469	479	10	0.99

KITDD_054 - Assay Results

KITDD_054 was drilled on an azimuth of 090, inclined 70 degrees to a depth of 551 meters. This hole was drilled to collect metallurgical samples as well as for resource definition in the northern end of the deposit. Intercepts of note include 26 metres @ 1.52% Cu from 378-404 metres.

A series of 469 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 9. Summary of assay results for drill hole KITDD_054 (azi 090, dip 70, EOH 551m)

From	To	Interval	Cu %
102	118	16	0.25
126	150	24	0.31
158	287	129	0.83
294	305	11	0.46
332	338	6	0.47
345	408	63	0.92
Including
378	404	26	1.52
412	418	6	0.80
444	454	10	0.32
457	530	73	0.79

Kitumba West drilling

KITDD_068 - Assay Results

KITDD_068 was drilled on an azimuth of 087, inclined 55 degrees to a depth of 539 metres. This hole was drilled targeting an IP chargeability anomaly and following up low-moderate grade mineralisation in KITDD_015. Intercepts of note include 39 metres @ 0.75% Cu from 380-419 metres.

A series of 403 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 10. Summary of assay results for drill hole KITDD_068 (azi 087, dip 55 EOH 539 m)

From	To	Interval	Cu %
32	36	4	0.29
60	66	6	0.51
176	186	10	0.46
300	304	4	0.98
321	345	24	0.71
358	364	6	0.38
369	421	52	0.64
Including
380	419	39	0.75
435	440	5	0.33
444	446	2	1.10
450	461	11	0.41
473	483	10	0.33

KITDD_069 - Assay Results

KITDD_069 was drilled on an azimuth of 090, inclined 70 degrees to a depth of 249 metres. This hole was drilled to follow up shallow hypogene (sulphide) mineralisation intersected in KITDD_015 and KITDD_057. A shallow zone of sulphides was intersected including an assay of 1 metre @ 1.15% from 57-58 metres within a low- grade zone of 44 metres at 0.32% Cu from 40-84 metres.

A series of 145 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 11. Summary of assay results for drill hole KITDD_069 (azi 090, dip 70 EOH 249 m)

From	To	Interval	Cu %
40	84	44	0.32

Kitumba East drilling

KITDD_070 - Assay Results

KITDD_070 was drilled on an azimuth of 088, inclined 65 degrees to a depth of 414 metres. This hole was drilled targeting the southern extension of the "Kitumba East" zone, a hematite breccia situated to the east of the Kitumba Fault Zone (the main ore body is located on the western side) previously intersected in KITDD_036. The hole successfully intersected "Kitumba East" in multiple zones, however grades are below ore grade. Best intercepts include 20 metres @ 0.97% Cu from 289-309 metres. KITDD_067 was drilled targeting the interpreted northern extension of Kitumba East, however was un-mineralised and not sampled.

A series of 209 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 12. Summary of assay results for drill hole KITDD_070 (azi 088, dip 65 EOH 414 m)

From	To	Interval	Cu %
214	230	16	0.29
240	284	44	0.47
289	309	20	0.97
364	373	9	0.67
377	396	19	0.68

Geotechnical drilling

KITDD_056 - Assay Results

KITDD_056 was drilled vertically to a depth of 196 metres. This hole was drilled for geotechnical information on the planned position of a ventilation shaft. No assays of note were returned.

A series of 110 samples, including quality control samples, were submitted to the laboratory for analysis.

KITDD_057 - Assay Results

KITDD_057 was drilled vertically to a depth of 196 metres. This hole was drilled for geotechnical information on the planned position of a ventilation shaft.

A series of 131 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 13. Summary of assay results for drill hole KITDD_057
(vertical, EOH 196 m)

From	To	Interval	Cu %
32	63	31	0.47
80	84	4	0.41
90	94	4	0.32

KITDD_058 - Assay Results

KITDD_058 was drilled vertically to a depth of 329 metres. This hole was drilled for geotechnical information on the planned position of a ventilation shaft.

A series of 197 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 14. Summary of assay results for drill hole KITDD_058
(vertical, EOH 329 m)

From	To	Interval	Cu %
218	223	5	0.72
235	242	7	0.58

KITDD_059 - Assay Results

KITDD_059 was drilled vertically to a depth of 214 metres. This hole was drilled for geotechnical information on the planned position of a ventilation shaft.

A series of 140 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 15. Summary of assay results for drill hole KITDD_059
(vertical, EOH 214 m)

From	To	Interval	Cu %
26	36	10	0.35
54	60	6	0.31
77	82	5	0.56
139	144	5	1.30
184	188	4	0.25

KITDD_060 - Assay Results

KITDD_060 was drilled on an azimuth of 115, inclined 70 degrees to a depth of 522 metres. This hole was drilled on the planned position of the decline. Narrow zones of mineralisation including 12 metres @ 1.31% Cu from 333-345 metres.

A series of 402 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 16. Summary of assay results for drill hole KITDD_060 (azi 115, dip 70 EOH 522 m)

From	To	Interval	Cu %
108	126	18	0.32
130	134	4	0.33
218	224	6	0.28
234	254	20	0.27
261	264	3	0.37
268	270	2	0.87
294	307	13	0.44
312	317	5	0.38
322	345	23	0.94
Including
333	345	12	1.31
370	379	9	0.35
386	391	5	0.33
395	401	6	0.56
404	409	5	0.40
414	423	9	0.75
440	453	13	0.35
467	473	6	0.87

KITDD_062 - Assay Results

KITDD_062 was drilled on an azimuth of 115, inclined 70 degrees to a depth of 500 metres. This hole was drilled on the planned position of the decline. Narrow zones of mineralisation (outside of the mine design) including 7 metres @ 1.48% Cu from 344-351 metres.

A series of 311 samples, including quality control samples, were submitted to the laboratory for analysis.

Final results having passed QA/QC are summarised here.

Table 17. Summary of assay results for drill hole KITDD_062 (azi 115, dip 70 EOH 500 m)

From	To	Interval	Cu %
10	20	10	0.32
152	156	4	0.33
178	190	12	0.46
198	208	10	0.44
226	230	4	0.39
274	309	35	0.37
324	336	12	0.39
342	352	10	1.15
Including
344	351	7	1.48
354	380	26	0.41
392	428	36	0.33
444	450	6	0.40

Notes:

Sampling and assaying of the drill core and RC chips collected follows a standard site protocol with samples being submitted to the Intertek Genalysis Laboratory preparation facility in Chingola, Zambia before being shipped to the Intertek Genalysis Laboratory in Perth, Australia for analysis (4-acid digest with an ICP finish).

A cut-off grade of 0.25% copper, a maximum internal dilution of 2 metres (drilled thickness) and a drilled thickness of >2 metres are used as a guideline when delineating the drilled thickness intervals of mineralisation, with length-weighted average grades reported. True-widths are not quoted, as the mineralised zone is associated with a sub-vertical "pipe" shaped zone of brecciation. No upper limit has been applied to copper grades in these exploration results.

A total of 8 elements were analysed. Multi-element analyses (including copper) were performed using Inductively Coupled Plasma - Mass Spectrometry (ICP-MS) and Inductively Coupled Plasma - Optical Emission Spectroscopy (ICP-OES) analyses by the fully NATA accredited Intertek Genalysis Laboratory in Perth, Australia. Samples were analysed for total copper and Ca, Fe, K, Mn and S by 4-acid digest with an ICP-OES finish, U by 4-acid digest with an ICP-MS finish, and acid-soluble copper (ASCu) by cold acid leach with an AAS finish.

A Quality Assurance/Quality Control ("QA/QC") program includes chain of custody protocol, a systematic submittal of 20% QA/QC samples including field duplicates, field blanks and certified reference samples into the flow of samples submitted to the laboratory and submission of samples for umpire analysis by a second accredited laboratory.

ATTRIBUTION

The information in this report which relates to exploration results at the Mumbwa Project in Zambia is based on information compiled by Mr Michael J Robertson, MSc, Pr.Sci.Nat., MSAIMM who is a member of the South African Institute of Mining and Metallurgy, which is a Recognised Professional Organisation ('RPO'). Mr Robertson has more than 22 years' experience in mineral exploration and is a full- time employee of The MSA Group. Mr Robertson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and a Qualified Person as defined in the Canadian National Instrument 43-101 (Standards of Disclosure for Mineral Projects). Mr Robertson has consented to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Forward-looking statements

This announcement contains certain forward-looking statements relating to, but not limited to Intrepid's expectations, intentions, plans and beliefs. Forward-looking information can often be identified by forward-looking words such as 'anticipate', 'believe', 'expect', 'goal', 'plan', 'intend', 'estimate', 'may' and 'will' or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future outcomes, or statements about future events or performance. Forward-looking information may include reserve and resource estimates, estimates of future production, unit costs, costs of capital projects, and timing of commencement of operations and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and reserves, the grade and recovery of ore which is mined varying from estimates, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from those expressed or implied.

Shareholders and potential investors are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Intrepid undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

Appendix1: JORC Code, 2012 Edition

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria		JORC Code explanation		Commentary
Sampling techniques		- Nature and quality of sampling (eg, cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. - Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. - Aspects of the determination of mineralisation that are Material to the Public Report. - In cases where 'industry standard' work has been done this would be relatively simple (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.		- A total of 33 diamond drill holes were drilled in phase 8 for a total of 12,853m. 13 are presented here. Holes were drilled at various inclinations from vertical through to 55 degrees, predominantly angled towards 090 at between 60 and 115 degrees. Geotechnical drill holes on the proposed decline position were drilled at 239 degrees. 9 RC holes were drilled in phase 8 for a total of 2404m. Assay results for 6 of these are presented here. RC holes were drilled on an inclination of 60 degrees to cross cut zones of structural and stratigraphic interest. - Diamond core only was used to sample the Kitumba deposit. RC was used on sterilisation holes and targets outside the Kitumba deposit. Core and chips were logged for lithology, regolith state, alteration, mineralisation, structure, density and magnetic susceptibility. Core was half split (HQ) or quarter split (PQ) and sampled following BTR protocols and QAQC procedures as per industry best practice. - Sampled on nominal 1m intervals varied in order to respect geological boundaries in mineralised zone, 2m outside. - Sample is dried, crushed (~ 2mm), milled and 200g split taken for four acid digest followed by ICP-MS and, ICP-OES finish, and cold acid leach with an AAS finish.
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).		- Diamond core was, HQ predominant with PQ pre-collars. Core was oriented using a Reflex ACT II. Reverse Circulation was used on sterilisation holes and targets outside Kitumba.
Drill sample recovery		- Method of recording and assessing core and chip sample recoveries and results assessed. - Measures taken to maximise sample recovery and ensure representative nature of the samples. - 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.		- Core recoveries are logged, core recoveries for phases 1-7 were 96%. - Core is reconstructed on angle iron for measurement against driller's blocks, orientation lines and recording of driller's breaks. - Diamond core has high recoveries.
Logging		- 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. - Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. - The total length and percentage of the relevant intersections logged.		- All core and chip samples have been logged for geological (lithology, mineralisation, alteration) and geotechnical (alpha/beta angles, RQD, defect count) information, all data is stored in a database. - Select holes have been logged using a down-hole acoustic televiewer for geotechnical information, all holes are logged and photographed. - The total length of logged core for phase 8 is 12,853m and 2404m of chips. 5250m from 13 diamond holes and 2404m from 9 RC holes announced here.
Sub-sampling techniques and sample preparation		- If core, whether cut or sawn and whether quarter, half or 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 and appropriateness of the sample preparation technique. - Quality control procedures adopted for all sub-sampling stages to maximize representivity of samples. - 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. - Whether sample sizes are appropriate to the grain size of the material being sampled.		- All core is cut with purpose built core saws onsite, with half core (HQ and NQ size) collected for sampling, ensuring the same side of the core is consistently sampled. In the case of PQ size core, quarter core was cut and sampled. Field duplicates were submitted to monitor QC of sample preparation and laboratory assay precision. - RC chip samples were riffle split down to 2 kg of dry material and sent to the lab for further preparation and analysis. - Samples were submitted to the Intertek Genalysis Laboratory preparation facility in Chingola, Zambia and crushed.to 85% - Sample sizes are appropriate to the grain size of the material being sampled.
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. - 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. - 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.		- Samples were submitted to a four acid digest (sulphuric, nitric, perchloric and hydrofluoric) and cold acid leach. - QA QC procedures include; a chain of custody protocol, the systematic submittal of 20% QA/QC samples including field duplicates, field blanks and certified reference samples into the flow of samples submitted to the laboratory. Re-assaying of the mineralised zones and submission of samples for umpire analysis by a second accredited laboratory will be carried out prior to inclusion in any updated Mineral Resource Estimate.
Verification of sampling and assaying		- 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.		- Significant intersections are reported by The MSA Group which is an independent contractor providing geological services to the company. - KITDD_041 (318m) and KITDD_042 (287m) were not drilled to target depth due to difficult drilling conditions. KITDD_041A and KITDD_042A were drilled from surface on the same pad and confirmed logging and geochemical results. - Data entry and verification is undertaken by MSA following an established protocol, all data is stored in a digital database and regularly backed-up. - No statistical adjustments to data have been applied.
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. - Specification of the grid system used. - Quality and adequacy of topographic control.		- Hole collars have been surveyed by differential GPS, down hole surveys were collected every 6m (inclined holes) and 12m (vertical holes) using Reflex and Gyro instruments during different phases of the project. Appropriate QC procedures were applied to verify down hole surveys. - The grid system for Kitumba is UTM WGS84, Zone 35 South. - An airborne laser elevation survey was flown as part of the FalconTM dataset acquired in 2006.
Data spacing and distribution		- 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.		- The nominal drill hole spacing varies between 20m and 40m in the high grade portion to between approximately 80m and 200m outside of this extending out to 200m x 200m on the margins. - Not reported here. - Results not composited.
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. - 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.		- Holes are predominantly drilled towards 090 at a 60-80 degrees dip to intersect sub vertical N-S oriented mineralisation. Holes have been drilled towards 180 and 270 confirming the sub-vertical nature of the deposit. - No orientation based bias had been identified in the data to this point.
Sample security		- The measures taken to ensure sample security.		- An unbroken sample chain of custody was implemented, as follows: − Plastic sample bags sealed and placed inside polyweave bags sealed with cable ties − Sample shipments examined on arrival at the laboratory and the sample dispatch form signed and returned with a confirmation of the security seals and the presence of all samples comprising each batch.
Audits or reviews		- The results of any audits or reviews of sampling techniques and data.esults of any audits or reviews of sampling techniques and data.		- Audits of the sample preparation laboratories at AH Knight in Kitwe and Intertek Genalysis in Chingola and an audit of the Intertek Genalysis Laboratory in Johannesburg were conducted by the CP.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria		JORC Code explanation		Commentary
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 security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.		- Kitumba, Target F and Target H are located entirely within the 100% owned Kitumba Mining licence 19820-HQ-LML. - The mining licence was granted on the 21st of November, 2014 for a period of 25 years.
Exploration done by other parties		- Acknowledgment and appraisal of exploration by other parties.		- The Mumbwa Project operated under joint venture with BHP Billiton from 2008-2011.
Geology		- Deposit type, geological setting and style of mineralization.		- The Kitumba deposit is recognised as having IOCG type characteristics; it is hosted in a hematite breccia complex within intrusives of the Hook Granitoid suite (Early Cambrian to Neoproterozoic). Mineralisation is supergene in nature (chalcocite, malachite, chalcosiderite, native copper) to 400+m, hypogene mineralisation consists primarily of chalcopyrite and pyrite.
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: − easting and northing of the drill hole collar − elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar − dip and azimuth of the hole − down hole length and interception depth − hole length. - 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.		- See Table 1.
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 assumptions used for any reporting of metal equivalent values should be clearly stated.		- Length-weighted average grades reported. No upper limit has been applied to copper grades in these exploration results. - A cut-off grade of 0.25% Cu, a maximum internal dilution of 2m (drilled width) and a drilled thickness of >2m are used as a guideline when delineating the drilled thickness intervals of mineralisation, unless otherwise stated. - All metal grades reported are single element.
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. - 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').		- True-widths are not quoted, as the mineralised zone is associated with a sub-vertical north-south oriented zone of brecciation.
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.		- A plan map (Figure 1), is contained within this announcement.
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.		- There is no outstanding exploration data considered material that has not been previously reported or is not contained within this report.
Further work		- The nature and scale of planned further work (eg, tests for lateral extensions or depth extensions or large-scale step-out drilling). - Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.		- Future drilling at Kitumba will focus on sample collection for metallurgy, sterilisation and geotechnical drilling to satisfy requirements for a "DFS" and project development. Exploration work will concentrate on satellite prospects surrounding Kitumba within the Mumbwa Project area.