MINERAL EXPLORATION: DRILLING, SAMPLING AND DATA QUALITY ASSURANCE MANUAL

Ongoing 4,000 metre drilling program successfully underpinning final mine design and grade control and highlighting both resource extension and exploration upside Key points 4,000 metre drilling program 75% complete. Confirmatory drilling for final mine design and grade control is anticipated to further convert Indicated Mineral Resources to Measured Resource status. Positive indication of opportunity for extension of resources and exploration upside.  Infill drilling inside both Berenai and Siamang DFS Ore Reserve pits for the purpose of increasing the proportion of Measured Resource, grade control and finalisation of mine design at these deposits for production scheduled to start in Q2-2015: Planned infill and extensional drilling completed at Berenai, successfully confirming width and grade of Mineral Resources as expected and discovering additional mineralization in the footwall of the Berenai main lode (RRC 1546 intercepted 14 metres at 4.82 g/t Au & 54 g/t Ag from 22 metres). The resource model can now be projected to surface and additional follow-up drilling is underway. Drilling program completed within the Siamang DFS Ore Reserve pit has confirmed the expected continuity and tenor of mineralisation. Resource model update is underway and offers the potential for a revised pit optimisation to provide more ounces, than the current DFS pit design.  Extension drilling adjacent to both Nuri and Bujang DFS Ore Reserve pits aimed at adding open pit ounces at these deposits: Drilling within the current Ore Reserve pit design at Nuri has increased confidence in the resource model in an area that was previously poorly constrained, with an additional hole planned to test for continuity of mineralisation further to the south. Extensional drilling program has been successfully completed at Bujang and demonstrates continuity of high grade mineralisation along the Bujang structure at depth. While the mineralisation narrows towards surface results justify further drilling at depth to expand resources to allow for potential future underground mining.  Exploration drilling at NW-Plant site, Racambai and Jenih prospects testing near mine exploration targets aimed at adding resources: Two drill holes at the Jenih prospect, immediately north-northeast of Belinau, for down dip extension of mineralisation have been completed and provide indication that intercepts are in the upper levels of an epithermal system. Assays are pending. Following additional interpretation further drilling will be planned for future drill programs.

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it's about the most effective and successful mineral exploration methods.

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Structural data collection from drill core relies on the ability of the core to be accurately oriented. A number of methods are available for core orientation, but broken zones and core loss present difficulties in obtaining orientation data, which can result in a paucity of structural data for significant intervals of a drill hole. Where orientation is achieved, errors and uncertainties can result in significant scatter in the calculated structure orientation populations. Televiewer surveys, both optical and acoustic, provide a reliable and accurate alternative method of recording structural data. They are relatively quick to run, and allow data capture from vertical and inclined drill holes without the need for diamond coring. The Televiewer survey captures a downhole image of the internal drill hole walls. Structural data can be captured from the image by fitting sinusoids to discontinuity traces visible in the drill hole wall. Although structural data can be picked automatically, it is argued that data should be picked by experienced engineers who clearly understand the intended use of the resultant datasets, and the limitations of the surveys. In lieu of a procedure for the undertaking of Televiewer interpretation for structural orientation data for geotechnical purposes, the authors propose a set of guidelines and protocols that in their experience have proven useful. 1 Introduction Discontinuities within the rock mass act as planes of weakness along which instability can occur. Part of the geotechnical investigation process involves characterising the minor and major structures within the rock mass, including the nature of the structures and their orientation. The nature of the structures, in terms of their roughness, infill, and wall strength characteristics, are best undertaken through the hands‐on assessment of the structures, be that in drill core or exposure. Orientation data can be measured directly from exposure, or indirectly from oriented drill core. At the design stage, structures are generally characterised from drill core, but broken zones and core loss can present difficulties in obtaining orientation data. This can result in a paucity of structural data for significant intervals of a drill hole. Where orientation of drill core is achieved, errors and uncertainties can result in significant scatter in recorded data. Televiewer surveys, both optical and acoustic, provide a reliable and accurate method of recording structural data, by capturing a downhole image of the internal drill hole walls, as well as orientation data. They are relatively quick to run, and allow data capture from vertical and inclined holes without the need for costly diamond coring. Structural data can be captured from the image by fitting sinusoids to discontinuity traces visible in the drill hole wall, a process known as 'picking'. Picking of structural data from Televiewer surveys can be time consuming, but, if undertaken in a systematic manner, it often provides more valuable data than automatically picked data. A number of case studies are presented in order to demonstrate potential issues with manually and automatically picked data and demonstrate the value of having Televiewer interpretation undertaken by experienced engineers. Although standard procedures exist for most forms of geotechnical data collection, the authors are not

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