Core Exploration : May 05 2015 - New zinc target identified at Black Gate Prospect

Criteria JORC Code explanation Commentary

Sampling techniques

 Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma

sondes, or handheld XRF instruments, etc). These examples should

not be taken as limiting the broad meaning of sampling.

 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 (e.g. 'RC 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 (e.g. submarine nodules) may warrant disclosure of detailed information.

 ‐20 mesh sieved soil samples (~200g) and sporadic rock‐chip samples

(~500g) where soil under developed.

 Samples collected at 50 metre centres on 200 metre spaced traverses infilled to 50 x 50 metres where anomalous.

 Soil samples collected from a nominal 5‐10cm depth

Drilling techniques

 Drill type (e.g. core, RC, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. 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).

 Soil sampling only

Drill sample recovery

 Method of recording and assessing core and chip sample recoveries and results assessed.

 Soil sampling only

Criteria JORC Code explanation Commentary

 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.

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.

 Various sample site parameters are recorded for each site including: Terrain, Cover Characteristics, Presence of organics, soil type, lag type, sub-crop type, vegetation.

 Rock chips 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.

 See sampling section above for a description of sampling and sub- sampling techniques.

 Sample sizes are considered appropriate for the expected grainsize of mineralisation.

 Every twentieth sample collected for analysis was duplicated. A

certified standard was analysed in sequence every 25 analyses.

 Subsampling techniques are undertaken in line with standard operating practices in order to ensure no bias associated with sub- sampling.

 The nature, quality and appropriateness of the sampling technique is considered adequate for the type of mineralisation and confidence

Criteria JORC Code explanation Commentary

 Whether sample sizes are appropriate to the grain size of the material being sampled.

level being attributed to this initial reconnaissance soil sampling.

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 (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

 Analysis was undertaking using Core Exploration's Niton XL3t 950

GOLDD+ handheld XRF (SN:61847) in "SOIL" mode

 Analysis was undertaken under controlled conditions using a Niton Portable Stand and the analyser directly connected to a computer located in an air-conditioned room

 The Niton has a new XRF tube and was calibrated by Portable

Analytical Solutions in March 2015

 Analysis time was 90 seconds (30 seconds for each window)

 No other calibration adjustments were made.

 Samples were wrapped in a single layer of cling film for analyses and standards when used were also wrapped in a single layer of cling

film. Only negligible attenuation was observed analysing standards with or without the cling film wrap

 Duplicates and a certified standard (Niton RCRApp which was considered appropriate for silver and base-metals) were inserted in sequence as detailed above.

 25 samples were selected for certified laboratory check-analysis by Intertek Genalysis (Perth) using their TL7 partial leach analysis for Ag-Cu-Pb-Zn

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.

 Primary data is captured directly into an in-house referential and integrated database system designed and managed by the Exploration Manager. All analysis data is cross-validated within the

database by various integrity scripts.

 Analysis data is not adjusted.

Criteria JORC Code explanation Commentary

 Discuss any adjustment to assay data.

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.

 All coordinates are recorded in GDA 94 MGA Zone 53.

 Surveys were undertaken by Core Exploration staff using a hand-held

GPS this tool has an accuracy of approximately 3m.

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.

 Initial reconnaissance soil sampling only.

 Initial samples collected at 50m spacing on 200m spaced traverses with infill to 50 x 50 metres over anomalous areas (see figures)

 No compositing has been applied

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.

 Initial reconnaissance soil sampling only

Sample security

 The measures taken to ensure sample security.

 Samples are retained by the company for future reference and are stored in a rented secure storage area in Alice Springs

Audits or reviews

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

 No audits or reviews have been undertaken

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.

 The Black Gate Prospect is contained within EL 27709 that is 100%

held by DBL Blues Pty Ltd a wholly owned subsidiary of Core

Exploration Ltd.

 Core Exploration manages EL 27709.

 EL 27709 is located on The Gardens Station.

 All drilling was undertaken outside of Heritage, Conservation or

National Parks on EL 27709.

Exploration done by

other parties

 Acknowledgment and appraisal of exploration by other parties.

 Historical exploration is very limited in the Black Gate Prospect area however extensive exploration has been undertaken by numerous parties on Mordor Pound targeting Ni -PGE in a discrete ultramafic

complex

Geology

 Deposit type, geological setting and style of mineralisation.

 The mineralisation style targeted is akin to Blueys Inkheart Ag-Pb-Zn mineralisation hosted within juxtaposed blocks of overthrust Bitter

Springs and Heavitree Quartzite Formations

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:

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above sea level in

metres) of the drill hole collar

o dip and azimuth of the hole

o down hole length and interception depth

o hole length.

 If the exclusion of this information is justified on the basis that the

 Reconnaissance soil sampling only

Criteria JORC Code explanation Commentary

information is not Material and this exclusion does not detract from

the understanding of the report, the Competent Person should clearly explain why this is the case.

Data aggregation

methods

 In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. 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.

 Initial reconnaissance soil sampling only. No metal equivalents are reported.

Relationship between

mineralisatio

n 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 (e.g. 'down hole length, true width not known').

 Initial reconnaissance soil sampling only.

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.

 See attached plans showing sample density.

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 soil analyses 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

 Geological mapping confirmed biotite-muscovite schist of the White Range Nappe Complex over thrust on Bitter Springs Formation and Heavitree Quartzite Units of the Amadeus Basin Formations. Iron

rich gossans were noted in the Bitter Springs Formation especially in

contact with overthrust basement