The Kochang Gold & Silver Mine

A High Grade Low Risk Project

Overview

Kochang is an epithermal vein deposit with parallel vertical ore bodies covering 8.3 sq km that reportedly produced 110,000 oz of gold and 5.9 million oz of silver between 1961 and 1975. Consisting of a gold and silver mine, there are currently four main veins and a number of parallel subsidiary veins vein, which have been identified, as well as a newly identified cross-cutting vein. Historic drilling indicates the veins continue to depth below the current 250m mine and mapping shows the veins on surface providing potential above and below the old workings. The veins extend to the NE providing a strike length of 2.5km with 600m between the two mines not exploited. There is potential to expand operations to the southwest/northeast and to depth, as well as exploit the already mined areas.

Highlights

Total current non JORC estimate is between 550,000 and 700,000 tonnes, with a range of grades between 5.2 g/t to 6.6 g/t gold, and 27.3 g/t to 34.8 g/t silver.

3 main veins and 1 cross vein between main veins in gold mine area & 1 main vein and parallel satellite veins at the silver mine.

Data points to several separate veins not mined in the past, veins continue to depth and the veins on surface are providing potential above and below old workings.

Assays >3 g/t Au returned by 589 samples (44%) with an average channel width, equivalent to vein width of 0.42m – average for channel samples 5.92 g/t Au and 31.54 g/t Ag.

Mine currently only 150m in vertical extent – drilling intersected three veins up to 90m below the current mined depth – potential to extend the resource to depth is very good.

Hydrothermal deposit shows very high grades over a significant strike length of approximately 2.5km.

Outcrop and surface geology mapping and interpretation connected the two mines with 600m + in mineable strike.

Initial 116,000 oz Au quantified already. Given an expected ultimate production level of 60,000 tonnes per annum, a mine life of 10 years is estimated with an initial annual yield c.10,000 ounces per annum.

Rationale for Kochang

Kochang is a relatively simple operation to reopen with excellent historic data, significant work already carried out, and a path to short term cashflow. The mine had good access, established infrastructure, is low Capex and offers high margin production potential.

Cashflow from Kochang will allow for an acceleration in production from Gubong

Geological and Gold Geochem Compilation Map

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