ECR Minerals : Drill Results - Bailieston Gold Project, Australia

Ivor Jones, Director & COO

Email: info@ecrminerals.com

Website: www.ecrminerals.com

Sasha Sethi

• 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.

• Reverse circulation ('RC') drilling has been used to obtain 1 m samples from which 4 to 5 kg of sample was taken. The 4-5kg sample was split and a 1.2 kg subsample fully pulverised, and a 50 g charge initially fire assayed. Subsequently, 1 kg was reassayed using a bulk leach.

• 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).

• RC holes were completed with a 5 inch face sampling hammer.

• 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.

• RC total sample was collected before any preparation.
• There is no information on whether or not there is a relationship between sample recovery and grade.

• 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.

• Each 1m chip sample was systematically logged.
• Samples have not been photographed as yet.

• 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.

• RC samples were split using a 3 stage Jones riffle splitter in order to obtain a 4-5 kg sub-sample. Where samples were wet, a tube was used to collect as good a sample as possible.
• Nearly all samples were collected dry. Very few samples were wet.
• The Bendigo sample preparation facility was inspected by Ivor Jones during a 2017 site visit and found to be suitable for purpose.
• Select samples were also assayed using a bulk leach to test for appropriateness of the size of the subsample being assayed and a much larger sample being assayed. There was very little difference between the bulk assay and the fire assay technique.

• 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.

• 1 in every 25 samples was blank material, 1 in every 25 samples was a CRM. 62 pulp samples (~ 10%) were re-assayed using a BLEG technique.
• Based on the analysis of the results from the QAQC processes, it can be concluded that sample assay determination accuracy and precision is within accepted industry standards and contamination during sample preparation was not an issue. It is the author's opinion that the sample preparation and assay determinations provided by On-Site assay laboratory are acceptable.

• 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.

• There has been no twinned holes or other verification of data reported here.
• There has been no adjustment to the assays.

• 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 locations were recorded by GPS measurements.
• Down-hole surveys were systematically performed every 30m.
• Geographical data were obtained and reported according to the UTM zone 55S (WGS84).
• Elevation and accurate coordinates will be determined when the collars are surveyed.

• 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.

• Data spacing varies between 50 m and 200 m along strike.
• Data spacing and distribution is not sufficient for the evaluation of mineral resources.
• Sample compositing has been applied for exploration results reporting.

• 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.

• Drilling was performed towards the northeast whilst the mineralisation is northwest-southeast striking. Drilling intersects the mineralisation at a relatively high angle and is not expected to cause any issues in the evaluation of the project.

• The measures taken to ensure sample security.

• Samples were individually bagged and sealed in larger bags of 10; the bags were under the direct supervision of ECR until they were delivered to the laboratory, and always on the same day as the sample was drilled.

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

• There has been no external review of the sampling and assaying procedures.

• 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 Bailieston project falls within ECR's Bailieston (EL5433) tenement. The tenement largely falls within Crown Land.
• EL5433 is due for renewal in March 2018.
• EL5433 is subject to a royalty agreement with Currawong Resources Pty Ltd.

• Acknowledgment and appraisal of exploration by other parties.

• Work completed by earlier companies has been used to guide the Company's exploration on the Maori trend. However, exploration has been very limited on the Scoulars trend.

• Deposit type, geological setting and style of mineralisation.

• Mineralisation appears to be a disseminated style of mineralisation associated with disseminated and oxidized hematite with minor quartz.

• 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.

• Drill hole information has been tabulated as a part of this report.

• 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.

• Exploration results have been averaged over the entire intersection of interest using a value of 0.2 g/t to define the limits of the low-grade intersections.
• There are no metal equivalent values considered.

• 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').

• The drill intercepts are interpreted to have intersected the mineralised packages at a high angle.

• 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 of the Bailieston project area showing geochemical results and interpretations has been made available previously.

• 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.

• This has been incorporated in the tabulation of the results in this report.

• 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.

• A plan of the Bailieston project area showing geochemical results and interpretations has been made available previously.

• 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.

• Exploration should continue along the geochemical anomalies to test for any significant mineralisation.
• Whilst the grade at Scoulars is relatively low, the mineralisation is relatively thick and shallow. It is recommended that this mineralisation is further tested to see if a bulk low grade resource can be identified.
• Follow-up drilling on the Maori trend should also be considered.
• Additional exploration should cover the Byron Shaft area.