Drilling Hits Higher Grade Copper Zones

September 29, 2014

Intersections of up to 1.38% copper, 0.25g/t gold and 11.8g/t silver highlight potential for attractive grades within the two major porphyry systems being tested in Western Victoria 

HIGHLIGHTS

SMD002 (Junction Prospect) – Assay Results

  • Assay results now received for the bottom third of drill hole SMD002 have returned a well-mineralised intervalof:
    • 5m at 1.38% copper, 0.25g/t gold and 11.8g/t silver
  • The mineralised zone is characterised by disseminated to patchy pyrite and chalcopyrite associated with biotite alteration (potassic) and hydrothermal magnetite demonstrating the tenor of grade that the Junction porphyry system is capable of producing.
  • This is the first instance of gold being associated with copper mineralisation at Junction and is considered highly encouraging.
  • Broad zones of low-grade copper mineralisationpreviously reported are consistent with a peripheral location for the upper portion of the drill hole:
    • 62m at 0.17% copper; 15m at 0.1% copper; and 44.8m at 0.15% copper.

SMD003 (Thursday’s Gossan Prospect) – Assay Results

  • Drill hole SMD003 assay results return:
    • 3m at 1.36% copper, 31.2g/t silver and 343ppm molybdenum from a ‘D’ vein; and
    • 196m at 0.13% copper
  • This drill-hole is a significant incremental step towards the target mineralisation in what is clearly a large porphyry system at depth.
  • It has also provided an oriented ‘D’ vein measurement, indicating that the target zone may be to the south of and at depth below SMD003, although this may be influenced by a structural offset which is currently being further investigated.

SMD004 (Thursday’s Gossan Prospect) – Partial Assay Results

  • SMD004 has returned partial assay results from the upper ~200m with:
    • 52m at 0.23% copper associated with near-surface supergene enrichment
    • Assay results from the lower ~440m pending.

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