Core Exploration : Oct 21 2014 - Additional Silver Lead Mineralisation Discovered at Inkheart

Hole ID

Easting

Northing

RL

Total Depth

DIP

TAZ

Completion

IKRC006

475081

7401305

618.9

192

-60

325

Sep 2014

IKRC007

475152

7401357

614.4

186

-60

315

Sep 2014

IKRC008

475338

7401385

605.8

115

-60

135

Sep 2014

IKRC009

475219

7401695

611.6

90

-60

315

Sep 2014

IKRC010

475252

7401649

612.0

102

-60

315

Sep 2014

IKRC011

475152

7401517

607.7

60

-60

315

Sep 2014

IKRC012

475212

7401425

606.9

108

-60

315

Sep 2014

IKRC013

475257

7401391

606.7

114

-60

325

Sep 2014

IKRC014

475189

7401296

616.1

198

-60

315

Sep 2014

IKRC015*

475174

7401294

616.9

210

-60

135

Sep 2014

IKRC016*

474896

7401281

615.8

132

-60

315

Sep 2014

IKRC017*

474868

7401309

621.3

150

-60

315

Sep 2014

IKRC018*

474727

7401134

612.8

150

-60

315

Sep 2014

IKRC019*

474558

7401006

616.6

162

-60

315

Sep 2014

IKRC020*

474328

7400929

622.0

150

-60

315

Sep 2014

BLRC013*

474664

7400463

605.1

150

-60

315

Sep 2014

IKRC021*

475324

7401376

605.7

126

-60

135

Sep 2014

IKRC022*

474999

7401304

618.7

132

-60

315

Oct 2014

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 '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 (eg submarine nodules) may warrant disclosure of detailed information.

• All RC drill cuttings were spear sampled.

• RC sampling was initially undertaken using 3m composite intervals for first-pass analysis however a one metre un-composited samples collected using a splitter on the cyclone were retained for future follow-up analysis over anomalous zones.

• All drilled intervals were sampled as 3-metre composites

• Each one metre drilled interval is qualitatively annotated with a sample quality based on weight and moisture content.

Drilling

techniques

• Drill type (eg core, RC, 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).

• Coughlan Drilling were contracted to undertake RC drilling

• All drilling was face sampling with a 5 1/2" RC Hammer

• RC drilling was drilled at various angles and orientations with downhole surveys undertaken nominally every 30m down hole

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.

• A visual estimate of recovery over individual one-metre drilled estimates was recorded.

• RC drilling only so no assessment of sample representivity or sample bias available.

Criteria JORC Code explanation Commentary

• 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.

• Drill cuttings are qualitatively logged and photographed

• Qualitative logging includes lithology, colour, mineralogy, description, marker horizons, weathering, texture, alteration and mineralization

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.

• 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 submitted for analysis was sampled was duplicated. Certified standards were submitted in sequence for every

25 samples submitted.

• 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 level being attributed to this initial reconnaissance drilling program.

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

• A certified and accredited global laboratory (Intertek-Genalysis) was used for all assays.

• Sample preparation was undertaken in Alice Springs with analysis undertaken at Intertek's Adelaide laboratory.

• Samples were analysed using Intertek's 4A/OM10 technique which

Criteria JORC Code explanation Commentary

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.

involves near-total 4 acid digest and analysis using ICP-OES and

ICP-MS for 46 elements including Ag and Pb.

• Internal certified laboratory QAQC is undertaken by Intertek.

• Duplicates and certified standards were inserted in sequence as detailed above.

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.

• Primary data is captured dirtectly into an in-house referential and integrated database system designed and managed by the Exploration Manager. All assay data is cross-validated within the database by various integrity scripts and externally using MapInfo drill hole validation checks including interval integrity checks.

• Laboratory assay data is not adjusted.

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.

Collar co-ordinate surveys

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

• Surveys have been undertaken by Core Exploration staff using a hand-held GPS this tool has an accuracy of approximately 3m.

• Topographic control uses the DTM generated by the UTS 100m airborne survey conducted over the area by Western Desert in 2008

Down hole surveys

• Downhole surveys were undertaken using a Reflex electronic survey camera system supplied by Coughlan Drilling nominally every 30m down hole.

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

• Initial reconnaissance RC drilling only.

• See drilling section above regarding composite sampling

Criteria JORC Code explanation Commentary

applied.

• Whether sample 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 drilling only

Sample security

• The measures taken to ensure sample security.

• Sample Intervals are put into individually numbered calico sample bags and are then loaded into cable tied bulka-bags before being dispatched to Intertek-Alice Springs for sample preparation..

• Assay pulps are returned to Core Exploration from contracted laboratories on a regular basis and stored securely for future reference.

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 Inkheart / Blueys prospect areas is contained within EL 28136 that is 100% held by DBL Blues Pty Ltd a wholly owned subsidiary of Core Exploration Ltd.

• Core Exploration manages EL 28136.

• EL 28136 is located on Love Creek Station which is Aboriginal

Freehold Land owned by the Central Land Council (CLC).

• A work agreement has been signed with the CLC over EL 28136 and the work programme undertaken has been authorised by the CLC .

• All drilling was undertaken outside of Heritage, Conservation or

National Parks on EL 28136.

• All work was undertaken within the scope of the Exploration Mining

Management Plan (EMMP) that was approved by NTDME

Exploration

done by other parties

• Acknowledgment and appraisal of exploration by other parties.

• Various phases of historical exploration have been undertaken at Blueys by a number of companies over the last 30 years. Inkheart was discovered by CXO early in 2014 with this drilling program designed to follow up the initial drilling traverse completed in May

2014.

Geology

• Deposit type, geological setting and style of mineralisation.

• Geology comprises Neo-Proterozoic Amadeus Basin Metasediments of the Heavitree Quartzite and Bitter Springs Formation that have been in part over thrust by Meso-Proterozoic Artnarpa Igneous Complex. Drilling is targeting Ag-Pb mineralisation.

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

• Drill hole information is recorded within the CXO in-house database with all collar locations listed in the table accompanying this document.

Criteria JORC Code explanation Commentary

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 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.

• No material information is excluded.

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.

• Aggregated intersections have been calculated separately for silver and lead using a 30g/t silver cut-off and 0.1% lead cut-off. Minimum intersection widths are 3m and up to 3m of internal dilation are included

• 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 (eg 'down hole length, true width not known').

• Initial reconnaissance drilling only thus geometric relationship of mineralisation to vertical drill orientation unknown.

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 drill hole density and sections as well as the tabulated drill hole information data accompanying this document.

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.

• See attached table of intersections.

• Reported intersections use the criteria detailed in the above section

"data aggregation methods".

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

• Mineralisation is generally hosted by carbonate-rich lithologies of the Bitter Springs Formation. Due to the drilling technique primary textures are hard to distinguish or are obliterated.

Criteria JORC Code explanation Commentary

deleterious or contaminating substances.

• Groundwater is generally present below 100m depth.

• Multi-element geochemistry assaying (45 elements) is routine for all sampling. Some elemental associations are recognised within certain lithologies within the region and are used as a tool to assist in interpretation of original lithologies where alteration affected the ability to visually determine the lithology.

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.

• Subject to Board approval further drilling may be undertaken