Argonaut Resources NL : Drill Intercepts - Lumwana West project in Zambia

Hole

East

North

RL

Dip

Azimuth

Total Depth (m)

From

(m)

To

(m)

Interval

(m)

Cu

(%)

Co

(ppm)

U

(ppm)

Oxidation

State

Comment

WMDD001

341940

8643000

1279.05

-60

90

252.00

58.15

61.55

3.40

0.36

212

2

fresh

DD

63.38

71.90

8.52

0.29

176

8

fresh

DD

168.00

170.00

2.00

0.13

41

2

fresh

DD

WMDD002

341760

8643000

1281.22

-60

90

302.80

122.80

130.40

7.60

0.17

64

5

fresh

DD

WMDD003

341630

8643000

1283.61

-70

90

287.90

152.70

153.70

1.00

0.24

127

22

fresh

DD

159.90

160.90

1.00

0.15

32

8

fresh

DD

166.00

166.90

0.90

0.16

42

3

fresh

DD

KVDD001

351260

8649130

1295.98

-60

210

320.80

50.00

57.00

7.00

0.23

35

6

fresh

DD

64.00

68.25

4.25

0.12

32

10

fresh

DD

106.05

107.00

0.95

0.45

74

2

fresh

DD

109.00

111.00

2.00

0.29

63

4

fresh

DD

129.00

130.00

1.00

0.20

24

67

fresh

DD

185.57

187.37

1.80

0.23

30

3

fresh

DD

193.00

202.00

9.00

0.27

49

11

fresh

DD

KVDD002

350870

8649245

1285.51

-60

210

350.80

22.39

23.39

1.00

0.14

47

2

fresh

DD

131.54

132.12

0.58

0.18

194

1

fresh

DD

154.96

158.35

3.39

0.10

72

1

fresh

DD

195.19

196.00

0.81

0.10

41

1

fresh

DD

201.59

204.00

2.41

0.18

39

2

fresh

DD

243.04

244.00

0.96

0.45

51

17

fresh

DD

264.00

264.94

0.94

0.10

54

3

fresh

DD

NYDD047

NSI

no visual intersect

NYDD048

NSI

no visual intersect

NYDD049

339482

8630000

1315

-60

90

254.80

159.60

165.05

5.45

0.48

84

13

transition

DD

NYU11RD021

339284

8629832

1318

-70

90

297.89

NSI

DD

NYDD050

338845

8630800

1341

-70

90

263.90

NSI

no visual intersect

WMDD004

342280

8644200

1290

-60

90

239.80

84.00

89.00

5.00

0.16

77

4

fresh

DD

WMDD005

342680

8644200

1284

-60

90

198.34

38.00

39.00

1.00

0.11

118

1

fresh

DD

44.00

45.00

1.00

0.14

101

1

fresh

DD

66.00

67.00

1.00

0.11

53

2

fresh

DD

69.61

71.21

1.60

0.22

398

2

fresh

DD

76.74

80.80

4.06

0.42

318

2

fresh

DD

162.68

167.30

4.62

0.11

104

3

fresh

DD

194.00

195.00

1.00

0.13

71

3

fresh

DD

WMDD006

341640

8643700

1298

-60

90

198.00

NSI

NYDD051

339750

8629900

1306

-60

90

248.80

34.00

35.00

1.00

0.15

178

3

oxide

DD

ZNDD001

347760

8646700

1286

-60

90

195.00

66.78

68.00

1.22

0.11

51

1

fresh

DD

171.23

173.00

1.77

0.10

33

1

fresh

DD

ZNDD002

347600

8646700

1278

-60

90

213.00

185.00

186.25

1.25

0.12

23

1

fresh

DD

ZNDD003

347360

8645900

1283

-60

90

213.00

99.00

101.00

2.00

0.12

45

1

fresh

DD

149.00

154.00

5.00

0.12

87

4

fresh

DD

LMDD001

354505

8645660

1283

-60

50

323.90

3.00

5.00

2.00

0.11

125

9

oxide

DD

14.00

18.00

4.00

0.12

40

6

transition

DD

LMDD002

354620

8645940

1278

-60

180

285.00

57.00

58.00

1.00

0.10

47

5

fresh

DD

125.80

127.00

1.20

0.24

61

2

fresh

DD

130.00

132.00

2.00

0.14

81

3

fresh

DD

135.93

141.20

5.27

0.13

70

8

fresh

DD

Hole

East

North

RL

Dip

Azimuth

Total Depth (m)

From

(m)

To

(m)

Interval

(m)

Cu

(%)

Co

(ppm)

U

(ppm)

Oxidation

State

Comment

MFDD001

358030

8645890

1239

-60

135

194.80

4.00

5.00

1.00

0.41

55

8

oxide

DD

15.84

16.84

1.00

0.15

42

2

transition

DD

21.00

22.20

1.20

0.12

60

3

transition

DD

70.00

72.75

2.75

0.23

145

8

fresh

DD

MFDD002

357800

8645900

1241

-60

135

228.22

109.82

113.00

3.18

0.30

64

11

fresh

DD

122.00

125.80

3.80

0.20

99

9

fresh

DD

141.00

142.00

1.00

0.11

106

7

fresh

DD

158.00

159.00

1.00

0.17

285

3

fresh

DD

179.00

180.00

1.00

0.11

32

2

fresh

DD

206.80

208.23

1.43

0.13

85

3

fresh

DD

209.83

210.76

0.93

0.11

81

5

fresh

DD

KBDD001

348740

8635760

1250

-60

225

206.90

81.00

120.00

39.00

0.61

44

6

fresh

DD, cut-off grade not applied

including

92.00

96.00

4.00

0.43

42

4

fresh

DD

102.60

120.00

17.40

1.18

65

12

fresh

DD

including

108.00

118.00

10.00

1.76

60

15

fresh

DD

including

108.00

109.00

1.00

3.21

59

17

fresh

DD

and

116.00

118.00

2.00

2.74

61

24

fresh

DD

138.00

140.00

2.00

0.11

29

7

fresh

DD

153.00

157.00

4.00

0.12

20

3

fresh

DD

159.62

163.00

3.38

0.12

19

2

fresh

DD

166.20

174.55

8.35

0.19

41

4

fresh

DD

176.36

177.16

0.80

0.15

46

6

fresh

DD

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.

• The Kabikupa, Mufuka, LMW and ZNS prospects were sampled using diamond drill holes. A total of 11 drill holes were drilled for a total of 2555.93 metres.

• Diamond drillcore only was sampled. Drillcore was logged for lithology, weathering, alteration, mineralisation and structure. Sampling was conducted as half core (NQ and HQ) or quarter core (PQ) for visibly mineralised intervals with an appropriate buffer into the unmineralised country rock. Sampling followed ARE protocols and industry best practice QA/QC procedures.

• Drillore sampled on nominal 1 metre intervals which varied with respect to lithological and geological boundaries in mineralised zones. A 2 metre maximum sample length outside mineralized zones, also varied with respect to lithological and geological boundaries.

• Samples were dried, crushed (~5mm), split up to 1.2kg, pulverised and pulp taken for four acid digest followed by

ICP-OES (multi-element), ICP-MS (U) or Aqua Regia/AAS (Au)

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 only, NQ3 with PQ3 or HQ3 collars. HQ and

NQ drillcore was oriented using an Ezy Mark orientation tool.

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.

• Drillcore recoveries are logged per drilling run, overall core recoveries greater than 95%.

• Drillcore reconstructed on angle iron for run length measurement against driller's blocks, orientation lines and recording of driller's breaks.

• Diamond drillcore has high recoveries with negligible core loss recorded.

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.

• Drillcore has been logged for geological (lithology, mineralisation, alteration) and geotechnical (alpha/beta angles, RQD, recovery) information, all data is stored in a database and or spreadsheets.

• All holes are logged and photographed.

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 maximise 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 drillcore was cut in half using core saws at AMC Kitwe, and half core (HQ and NQ size) collected for sampling, ensuring

the same side (RHS looking downhole) of the drillcore was consistently sampled. Field duplicates (pulp and crush checks) were submitted routinely to monitor QC of sample preparation and laboratory analysis.

• Samples were prepared at and crushed to 85%

1.2kg subsample split (rotary and riffle) for pulverising to 85%

• Sample sizes are appropriate to the grain size of the material being sampled.

Criteria

JORC Code explanation

Commentary

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 Inductively Coupled Plasma (ICP) finish.

• QAQC procedures include a chain of custody protocol, systematic submittal of 10 to 20% QA/QC samples including field duplicates, field blanks and externally sourced certified reference samples into the flow of samples submitted to the laboratory.

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 ARE and checked by

AMSA.

• No drill holes have been twinned.

• Data entry and verification is undertaken by AMC following an established protocol into Reflex Logger software, all data is stored in a digital database (Reflex Hub) 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.

• Drill hole locations have been surveyed by averaged Garmin

GPS measurements, down hole surveys were collected every

50 metres using a Reflex EZ-TRAC instrument.

• Appropriate QC procedures were applied to verify down hole surveys.

• The grid system for the Lumwana West Project is UTM WGS84, zone 35 South.

• All GPS collar locations corrected to UTS 2010 survey DTM.

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.

• Wide spaced exploration drilling.

• No resources or reserves reported.

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.

• Mapping undertaken at prospect scale to refine local structural fabric and thus to drill perpendicular to the interpreted structural orientation.

• No orientation based bias had been identified in the data to this point.

Sample security

• The measures taken to ensure sample security.

• The chain of custody for sample dispatch was implemented and is as follows:

• Polywoven bags containing samples, labelled, sealed with cable ties and weighed.

• Sample despatch shipments were delivered to the sample preparation laboratory and the sample dispatch form signed and returned with a confirmation of the cable tie seals in place and the delivery of all samples within each batch.

Audits or reviews

• The results of any audits or reviews of sampling techniques and data.

• Visits and review of the sample preparation laboratory at Intertek Genalysis in Chingola and of the Intertek Genalysis laboratory in Adelaide were conducted by the senior personnel.

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.

• Large Scale Prospecting Licence, 16121-HQ-LPL, Lumwana

West, approximately 100 km west of Solwezi, Zambia.

Licence renewed for further 2 year period. Current expiry date is 20/07/2015. Prior to expiry an application for extension of term will be submitted to the Geological Survey of Zambia. Mwombezhi Resources holds 100% of the licence, Lumwana West Resources (100% subsidiary of Argonaut Resources

NL) has an earn in joint venture. Currently, have acquired

90% interest. Portions of the licence area are forest reserves requiring permission to access which has been granted.

• Mineral tenement and land tenure status

• 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.

• No known impediments.

• Exploration done by other parties

• Acknowledgment and appraisal of exploration by other parties.

• Roan Selection Trust (1960's - 1970's) - Regional soil sampling, augering, wagon drilling and diamond drilling. Drilling at Nyungu (Drill holes MM295 and MM296).

• AGIP - COGEMA JV (1982 - 1987) - Systematic regional radiometric traversing, soil and stream sediment sampling, geological mapping, pitting and trenching between 1982 and

1987. No drilling.

• Phelps Dodge (1990's) - Soil sampling and drilling. Drilling at

Nyungu and Kavipopo (Drill holes NYU1 and 2, KAV 1 and 2).

• Zamanglo (2000 - 2003) - Regional and infill soil sampling.

Geological mapping, IP/CR/CSAMT geophysical surveys. Three phases of RC drilling, at Nyungu (MBD00RC001-011 and MBD01RC001-009) and regional program (MBD02RC001-012) including 3 drill holes at ZNS and 4

drill holes at LMW.

• Equinox (2003 - 2008) - unknown but some unknown drill collars are presumably from this phase.

• No previous exploration drilling evident or known at Kabikupa or Mufuka prospects.

• Geology

• Deposit type, geological setting and style of mineralisation.

• Style of mineralisation targeted is Lumwana style, structurally controlled, shear hosted, Cu +/- Co (+/- U and Au).

• 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 - Lumwana West Project Drill holes

Criteria

JORC Code explanation

Commentary

• 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 0.1% Cu and a maximum internal dilution of 3m

• (downhole width) are used as a guideline when delineating the drilled thickness intervals of mineralisation.

• 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').

• Down hole length, true width not known.

• 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 within report.

• 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 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.

• Further geological interpretation and structural analysis to be completed on these prospects. Target testing contingent on positive interpretation.

• All future exploration work is commercially sensitive and will not be released to the market until results are available.