Altona Mining Ltd.: Cloncurry Project: Bedford Resource Upgrade

(firmenpresse) - Altona Mining Ltd.: Cloncurry Project: Bedford Resource Upgrade

- Bedford deposit Mineral Resource increased to 4.8 million tonnes at 0.80% copper and 0.21g/t gold

- Contained copper metal increased by 124% and contained gold by 191%

- Global Mineral Resource for the Cloncurry Project now stands at 1.67 million tonnes contained copper and 0.4 million ounces contained gold


Altona Mining Limited (Altona or the Company - http://www.commodity-tv.net/c/mid,5428,Company_Updates/?v=297328) is pleased to announce a new Mineral Resource estimate for the Bedford deposit at the Companys 100% owned Cloncurry Copper Project near Mt Isa in Queensland. Bedford is located 6 kilometres southeast of the planned Little Eva open pit mine and processing plant and lies within granted mining leases.

The new resource estimate is: 4.8 million tonnes at 0.80% copper and 0.21g/t gold for 38,000 tonnes of contained copper and 32,000 ounces contained gold.

The resource is reported at a 0.3% lower cut-off grade and is classified as indicated and inferred. A full tabulation is given in Tables 1 and 2. A detailed summary of the supporting data and methodology is given in Appendix 1, being Table 1 of the 2012 Edition of the JORC Code.

The global Mineral Resource for the Cloncurry Project is now:

290 million tonnes at 0.58% copper, 0.05g/t gold for 1.67 million tonnes of contained copper and 0.4 million ounces contained gold (Appendix 2).

The new Bedford Mineral Resource estimate is based on a new geological model informed by detailed surface geochemical and geological mapping. The new model was also informed by two additional diamond drillholes drilled for metallurgical samples and geotechnical studies.

The Mineral Resource reports sulphide ore only and extends from 20 metres to 140 metres below surface. An oxide cap ranging from surface to depths of 20 to 30 metres is excluded from the resource estimate.

The increase from the 2012 estimate resulted primarily from better understanding of continuity and geometry. The mineralised structures were able to be better defined based on mapping of surface workings and high resolution copper-in-soil sampling. An increase in tonnage also resulted from new bulk density data from diamond core as opposed to prior conservative estimates.

The Bedford deposit is part of the Little Eva mine development and is scheduled to commence production in year 2 of the mine plan. The new model indicates the potential to increase Bedford ore reserves and pit optimisations are planned as part of the project optimisation.

Geology

The Bedford deposit is an Iron-Oxide-Copper Gold (IOCG) style mineral system typical of the Cloncurry district. The neighbouring Little Eva deposit is a more typical IOCG deposit with similarities to the major Ernest Henry deposit located 70 kilometres to the southeast.

The deposit is hosted within a steep, west-dipping shear zone striking north to north-northeast. The shear zone varies from 50 to 120 metres wide within which there are en-echelon and overlapping arrays of mineralised structures. Mineralisation is best developed in two separate zones, Bedford North and Bedford South within a strike length of 2.5 kilometres. Individual mineralised structures associated with ore grade mineralisation (>0.3% copper) have true widths ranging from 5 to 12 metres.

Host stratigraphy comprises a north to north-northeast striking, moderate to steep west dipping interlayered sequence of amphibolite and biotite schist. The stratigraphy is intruded by narrow planar concordant granite and pegmatoidal dykes/sills.

Bedford South mineralised structures are largely layer parallel. At Bedford North the mineralised structures are interpreted to trend north-south, crosscutting north-northeast striking stratigraphy. Secondary north-northeast linking structures are found along bedding/foliation. Magnetite-biotite alteration assemblages with quartz veining are concentrated in the mineralised structures with a strongly feldspar-hematite altered footwall below.

The dominant ore mineral is coarse-grained chalcopyrite (with minor magnetite, pyrite, pyrrhotite and gold) which occurs within quartz veins, breccia fill and as disseminations in host rocks.

The deposit is sub-cropping. An irregular 20 to 30 metres thick zone of weathering with secondary copper oxide mineralisation blankets the deposit.

Resource Definition and Modelling

Drilling is mostly at a spacing of approximately 25 metres along strike and 25 metres down dip over the main zones with spacing between drill lines increasing to 100 metres along strike from the main zones. Drilling comprises 99 RC and 2 diamond holes for a total of 10,139 metres drilled. All drill holes were drilled west to east to intersect approximate true widths of mineralisation. RC drilling was completed using a face sampling hammer. A small number of RAB holes (13) were used where no other data were available and resources derived from RAB data are classified as inferred.

Samples were collected routinely on 1 metre intervals for logging and assaying. All samples were submitted for multi-element ICPAES and/or AAS analysis at reputable laboratories. Quality Assurance/Quality Control (QA/QC) samples were routinely inserted and monitored. Quality monitoring ensured that the accuracy and precision of this analysis is acceptable.

3D geological models constructed from surface mapping, detailed surface geochemistry and drilling data were used to constrain resource estimation. Resource estimation was conducted using block model methodologies consistent with planned semi-selective mining parameters. Copper and gold grades were estimated using ordinary kriging at the parent block scale. Post-processing of the data by uniform conditioning was applied to copper to estimate block grades at the selective mining scale.
In-situ bulk density values are based on physical measurements conducted on diamond drill core and on comparitive data from the neighbouring deposits.

Please direct enquiries to:

Alistair Cowden
Managing Director
Altona Mining Limited
Tel: +61 8 9485 2929
altona(at)altonamining.com

David Tasker
Professional Public Relations
Perth
Tel: +61 8 9388 0944
David.Tasker(at)ppr.com.au

JochenStaiger
Swiss Resource Capital AG
Tel: +41 71 354 8501
js(at)resource-capital.ch

About Altona

Altona Mining Limited is an ASX listed company focussed on the Cloncurry Project in Queensland, Australia. The Project has Mineral Resources containing some 1.65 million tonnes of copper and 0.41 million ounces of gold. It is envisaged that a 7 million tonnes per annum open pit copper-gold mine and concentrator will be developed at the Project. The development is permitted with proposed annual production(1) of 38,800 tonnes of copper and 17,200 ounces of gold for a minimum of 13 years. A Definitive Feasibility Study was published in March 2014. Altona has completed a Framework Agreement with Sichuan Railway Investment Group to fully fund and develop the Project through its Hong Kong subsidiary, China Sichuan International Investment Limited. The transaction is scheduled to close prior to 31 July 2017.

1Refer to the ASX release Cost Review Delivers Major Upgrade to Little Eva dated 13 March 2014 which outlines information in relation to this production target and forecast financial information derived from this production target. The release is available to be viewed at www.altonamining.com or www.asx.com.au. The Company confirms that all the material assumptions underpinning the production target and the forecast financial information derived from the production target referred to in the above-mentioned release continue to apply and have not materially changed.

Competent Persons Statement

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on a report prepared by Mr Frank Browning, MSci (Hons), MSc, GAIG a full time employee of Altona, has five years relevant experience but is not a full member of AIG. The report was supervised and audited by Mr Roland Bartsch, BSc (Hons), MSc, MAusIMM and this public release is based on information compiled by Mr Bartsch. Mr Bartsch is a full time employee of the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bartsch consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Table 1: Bedford Mineral Resource as a 0.3% copper cut-off
Tonnes Copper Gold Contained Contained
(million)(%) (g/t) Copper Gold
(tonnes) (ounces)
Measure- - - - -
d

Indicat2.3 0.95 0.23 22,000 17,000
ed


Inferre2.5 0.66 0.19 16,000 15,000
d

Total 4.8 0.80 0.21 38,000 32,000
Note: Totals may not match sub-totals due to rounding.

Table 2: Bedford Mineral Resource reported above a range of cut-off grades
Cut-off Tonnes Copper ContainedGold Contained
Grade (million)(%) Copper (g/t) Gold

(tonnes) (ounces)
(% Cu)
0 29.2 0.19 56 0. 51
,000 06 ,000

0.15 7.1 0.61 43,000 0.17 39,000
0.2 5.9 0.70 41,000 0.19 36,000
0.3R 4.8 0.80 38,000 0.21 32,000
0.4 4.1 0.88 36,000 0.22 29,000
0.5 3.4 0.97 33,000 0.24 26,000
R Mineral Resource reported cut-off grade.

Table 3: Comparison of Bedford Mineral Resource estimates above a cut-off grade of 0.3% copper
Tonnes Copper Gold ContainedContained
(millio(%) (g/t)
n)
Copper Gold
(tonnes) (ounces)
2017 estim4.8 0.80 0.21 38,000 32,000
ate

2012 estim1.7 0.99 0.20 17,000 11,000
ate

% Change 182% -19% 5% 124% 191%


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Figure 1: Cloncurry Project location map


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Figure 2: Little Eva Project layout including Bedford


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Figure 3: Bedford North block model cross section N7767750. Block colour represents ordinary kriging derived copper grade. Estimation domains and surface datasets utilised in modelling are also labelled


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Figure 4: Bedford South block model cross section N7766425. Block colour represents ordinary kriging derived copper grade. Estimation domains and surface datasets utilised in modelling are also labelled


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Figure 5: Oblique three dimensional view (looking northeast) of the classified resource model excluding oxide (Unclassified) and low grade envelope domains (Inferred)


APPENDIX 1: TABLE 1 OF THE 2012 EDITION OF THE JORC CODE

The table below is a description of the assessment and reporting criteria used in reporting the Exploration Results that reflects those presented in Table 1 of The Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Section 1: Sampling Techniques and Data
Criteria Commentary
Sampling · The drilling dataset incorporates 24 Rotary
techniqu Air Blast (RAB), 99 Reverse Circulation (RC)
es and 2 diamond drill holes for a total of
11,061m.

· RAB accounts for 8% of drilled metres and was
only
utilised
in the absence of RC or DD sampling (13 holes w
ithin resource
area
), where the tenor and thickness of
mineralisation is consistent with results from
adjacent drill sections and overlying
Cu-in-soil geochemistry. All mineralisation
delineated by RAB drilling is classified as
Inferred
Resources.

· 84% of samples were collected at 1m
intervals. The remainder were collected at 2m
intervals, with a small quantity of partial
metre sample lengths
(<1%).

· Approximately 2-3kg sample weights were
obtained from each interval for geochemical
analysis.

· 2 RC drillholes were completed by CRAE in
1990 (1.6% of drilling dataset). All remaining
drilling was conducted by Altona Mining (or
precursor company Universal Resources) between
2003 and
2015.

· CRAE RC and Universal RAB sampling procedures
are not
available.

· Altona RC samples were collected directly
using a trailer mounted cyclone and cone (35%)
or triple deck riffle splitter (65%). A small
number of wet intervals were sub-sampled with
a scoop
(<1%).

· Altona diamond core sampling was guided by
geology, with quarter or half core submitted
for
analysis.

· All samples were collected into pre-numbered
calico bags, packed by Altona staff into
polyweave or bulka bags and shipped by truck
to laboratories in
Townsville.

Drilling · RAB drilling specifications are not available.
techniqu· RC holes were drilled using 5.375, 5.5, or
es 6 face sampling
hammers.

· HQ3 and NQ3 core sizes were used in diamond
drilling.

· Holes were drilled at a dip angle of ~-60o to
intersect mineralisation at optimal true width
angles.

Drill · Core recovery was measured and RC sample
sample recovery visually estimated.
recovery

· Recoveries are considered to be excellent
averaging > 90%, and typically 100%. Lower
recoveries were occasionally observed in the
hole collars (top few metres).


· The majority of samples were dry.
· Every individual RC sample was collected into
the cyclone prior to cone
splitting.

· RC sample bias due to preferential loss/gain
of fine/coarse material is considered well
within acceptable
limits.

· Best practice methods were used for diamond
coring to ensure the return of high quality
core
samples.

Logging · All Altona drill holes were logged by
geologists at the rig using Altona standard
logging
procedures.

· Altona logging was qualitative and
quantitative including, colour, lithology,
mineralisation, alteration, sulphide and oxide
mineralogy, sulphide and oxide amount,
texture, grain size and
structure.

· Representative drill core and RC chips have
been
retained.

Sub-sampl· CRAE RC and Universal RAB sampling procedures
ing are not
techniqu available
es and .
sample · Altona RC samples were split at an 87.5% :
preparat 12.5% ratio using cyclone and cone or riffle
ion splitter to obtain a ~2-3kg sub-sample for
analysis. Occasional wet intervals were
sub-sampled using a
scoop.

· Diamond core intervals were halved or
quartered to produce
sub-samples.

· Samples were sent to ALS or SGS Analabs
Laboratories in Townsville for sample
preparation and analysis. Both are independent
commercial certified laboratories that use
industry standard preparation including
drying, crushing and

pulverisation.
· Typical sub-sample sizes are considered
representative for typical copper
mineralisation in the Cloncurry Project
area.

Quality · The majority of samples (98%) were analysed
of at SGS Analabs in
assay Townsville
data as outlined below.
and · Copper was analysed using a mixed acid
laborato digestion (hydrochloric,
ry
tests perchloric, hydrofluoric) followed by
inductively coupled plasma

atomic emission spectrometry (ICPAES) with a re-
assay of ore grade (>1% Cu) samples by
AAS
.
· From 2003 to 2006 Gold was analysed using a
50g fusion followed by aqua regia digestion of
the Au/Ag prill with a AAS
determination.
In 2009 Gold was analysed by fire assay with
AAS finish.


· Quality Control comprised standards
(certified reference materials for gold,
copper and blanks) inserted into the sampling
sequence at a ~1:20 ratio, to test the
accuracy of laboratory analysis for each
sample batch. Field duplicates were also
collected at a ~1 : 20 ratio to control
sampling precision, involving the riffle
splitting of bulk RC samples or splitting of
diamond core
sub-samples.

· Duplicate data display acceptable accuracy
and precision. Results for standard reference
materials do not exhibit positive bias beyond
Altonas two standard deviation
benchmark.

· Field duplicate 2nd split were submitted to
an
u
mpire laboratory on a 1:20 basis and compared
well
.
· No geophysical tools were used to determine
the results reported
here.

Verificat· Results were checked by several Altona
ion of personnel.
sampling
and · No twinned holes.
assaying· Field logging data was primarily collected
using a laptop and uploaded into the company
Datashed database and validated by company
database
personnel.

· All assay files were received in digital
format from SGS Analabs Laboratory. Data was
uploaded into the Altona Datashed database and
validated by company database personnel. No
manual data inserts took
place.

· No adjustments have been applied to the
results.

Location · CRAE collar locations were measured using a
of data hand-held
points GPS.

· Altona RC and diamond collar locations have
been surveyed by licensed surveyors using a
DGPS with approximately 0.1m

or better horizontal accuracy. Elevation
accuracy is considered to be less than
0.5m.
RAB holes have reported accuracies from 0.005
to
3m.

· 25% of Altona RC and diamond drill holes have
been down-hole surveyed with professional gyro
systems,
6
9% have down-hole camera surveys and the
remaining 6% have collar orientations
only.

· The Grid is GDA94 MGA Zone 54.
Data · Drilling has typically been completed at 25m
spacing intervals along 25m spaced east-west sections.
and Section line spacing increases to 50-100m
distribu outside the main mineralised
tion zones.

· The majority of samples were collected at 1m
downhole intervals. Other sample lengths do
not exceed
2m.

Orientati· Mineralisation in Bedford South strikes
on of NNE-SSW, changing to a N-S orientation in
data in Bedford North. Both zones exhibit steep
relation westerly
to dips.
geologic
al · Drilling was completed to the east at -60
structur degree dip, such that with changing
e mineralisation dip, true widths are estimated
to vary from 80-100% of down hole intercepts.


· No bias is considered to result from drilling
direction.

Sample · Samples from RC and diamond drilling were
security collected and bagged into pre-numbered calico
bags at the drill site during the drilling
operation. Unique sample numbers were retained
during the whole
process.

· Samples were collected and delivered to SGS
Analabs as they were collected.


· Samples were stored in Altona facilities in
Cloncurry prior to transport to
Townsville.

· All samples were then catalogued and sealed
prior to dispatch to laboratory by

Altona staff.
Audits · QA/QC samples were routinely monitored by the
or database manager and geologist on a batch and
reviews campaign basis. The accuracy of key elements
such Cu and Au, was acceptable and the field
duplicate assay data was unbiased and shows an
acceptable level of
precision.

· No external audits or reviews have been
undertaken.

Section 2: Reporting of Exploration Results
Criteria Commentary
Mineral · Bedford is within Mining Lease 90164; 100%
tenement owned by Altona
and Mining.
land
tenure · No joint ventures apply.
status · There are agreements in place with the native
title holders, the Kalkadoon people and with
landholders.

· No significant historic sites or national
parks are located within the reported
exploration
site.

· The Mining Lease was granted in late 2012 and
is in good
standing.

Explorati· CRAE completed mapping (Bedford South) and
on done ground magnetics, followed by 5 reconnaissance
by RC drill holes in
other 1990.
parties
· Universal Resources completed RAB (43 holes),
followed by RC (97 holes) and diamond drilling
(3 holes) from 2003 to
2009.

· Altona Mining completed an additional diamond
drill hole in 2015, as well as assaying a
previously unsampled geotechnical diamond
hole.

· In 2015 Altona also completed detailed
mapping and high resolution soil sampling over
Bedford
North
on a 20 x 10m spacing.
Geology · Bedford deposit is interpreted to be part of
the broader Iron-Oxide-Copper Gold (IOCG)
style mineral system common to the Cloncurry
district.

· Bedford host lithology is characterised by a
north to north northeast striking, steep west
dipping interlayered sequence of amphibolite
and biotite schist, underlain by psammite and
intruded concordantly by planar
granite
and pegmatite intrusions.
· Alteration appears to be zoned, with
magnetite-biotite alteration and quartz
veining concentrated in ore zones, above a
strongly feldspar-hematite altered foot wall.


· Sulphide mineralisation is associated with a
steep west dipping shear zone and comprises
chalcopyrite and pyrite in planar bodies that
can be parallel or slightly oblique to
bedding. Copper oxide species occur above top
of fresh rock, in a ~20 to 30m zone of
variably weathered bedrock.


· Ore formation is interpreted to be
structurally controlled, with brittle
fracturing facilitating hydrothermal fluid
flow and accommodation of metal sulphide
precipitation. Structural development

at interfaces between rocks of contrasting
competency is
evident
. Moderate to shallow northerly plunging ore
shoots
are
interpreted to be the result of the low angle
in
tersection of transgressive mineralised structur
es
and
more competent stratigraphy.
Drill · Exploration results are not being reported
hole for the Mineral Resource area. Drill hole
Informat information is provided in the Mineral
ion Resource estimation
section.

Data · Exploration results are not being reported
aggregat for the Mineral Resource
ion area.
methods

Relations· Exploration results are not being reported
hip for the Mineral Resource
between area.
minerali
sation · Drilling azimuths are considered to be
widths approximately perpendicular to the strike and
and dip of the mineralisation resulting in
intercep unbiased true
t widths.
lengths

Diagrams · Refer to the Figures 1 to 5.
Balanced · Exploration results are not being reported
reportin for the Mineral Resource
g area.

Other · Exploration results are not being reported
substant for the Mineral Resource
ive area.

explorati
on
data

Further · Additional work in the future will consist of
work diamond core drilling for metallurgical and/or
geotechnical testwork sampling, as well as
infill and exploration step-out RC drilling
for resource definition purposes.


Section 3: Estimation and Reporting of Mineral Resources
Criteria Commentary
Database · Data used for estimation is stored within a
integrit SQL Server database and is managed using
y DataShed software. The structure of the
drilling and sampling data is based on the
Maxwell Data
Model.

· Drill data is logged directly into digital
logging systems and uploaded to the database
by the database administrator (Altona standard
procedures since
2005).

· Laboratory data has been received in digital
format and uploaded directly to the database.
(Altona standard procedures since
2002).

· In both cases the data was validated on entry
to the database, by a variety of means,
including the enforcement of coding standards,
constraints and triggers. These are features
built into the data model that ensure that the
data meets essential standards of validity and
consistency.

· Original data sheets and files have been
retained and are used to validate the contents
of the database against the original
logging.

· Validation of existing collar, downhole
survey and assay data was completed.
Validation steps
included:

· Drillhole collar locations were compared to
the topographic surface.


· Downhole deviations of all drillhole traces
were examined and problematic surveys were
excluded.


· All data (e.g. assay, bulk density, RQDs,
core recovery) was checked for incorrect
values by deriving minimum and maximum values.


· Lithology data was checked to ensure standard
rock type codes were used.


· Meta-data fields were checked to ensure they
were populated and that the data recorded was
consistent.

Site · Numerous site visits have been undertaken by
visits Mr
Bartsch
and Mr Browning.
Geologica· Confidence in the geological interpretation
l of the deposit is moderate to high. Good local
interpre constraints exist on the spatial extent and
tation geometry of separate lithological and
structural components through the integrated
analysis of surface mapping, surface
geochemistry, surface geophysics, drill hole
logging, downhole geochemistry, magnetic
susceptibility and radiometrics. Drilling and
high resolution soil
samp
ling (10mE by 25mN) provide good deposit scale
constraints on the geometry and continuity of
mineralisation.

· Bedford deposit is interpreted to be part of
the broader Iron-Oxide-Copper Gold (IOCG)
style mineral system common to the Cloncurry
district.

· Mineralisation occurs at surface, is exposed
in sub-crop, and is confirmed through drilling
in the main zones down dip to ~140m vertical
depth below
surface.

· The deposit is hosted within a steep west
dipping shear zone striking north to north
northeast. The shear zone varies from 50 to
120m wide with internal arrays of
mineralised
structures.
· Mineralisation has been defined in two
separate zones, Bedford North and Bedford
South, the shear zone is however through
going. The overall deposit extends over a
strike length of 2.5km; the northern zone
1.15km and southern zone 850m long.

Within the shear zone individual mineralised
structures associated with ore grade
mineralisation (>0.3% copper) are planar and
have true widths ranging from 5 to
12m.

· Host stratigraphy comprises a north to north
northeast striking, moderate to steep west
dipping interlayered sequence of amphibolite
and biotite schist, underlain by psammite and
intruded concordantly by narrow planar granite
and pegmatoidal
dykes/sills.

· In Bedford South mineralised structures are
interpreted to be bedding/foliation

parallel. In Bedford North the main mineralised
structures are interpreted to trend
north-south stepping across north northeast
striking stratigraphy, with the development of
a set of secondary north northeast linking
structures along bedding/foliation.

Moderate to shallow northerly plunging ore
shoots are interpreted to be the result of the
low angle intersection of transgressive
mineralised structures and more competent
stratigraphy.

· Magnetite-biotite alteration and quartz
veining are concentrated in the ore zones,
above a strongly feldspar-hematite altered
foot
wall.

· The dominant ore mineral is coarse grained
chalcopyrite (with minor magnetite, pyrite,
pyrrhotite and gold) which occurs within
quartz veins, breccia fill and disseminations
within the host shear
zone.

· An irregular 20 to 30m thick zone of
weathering with oxide mineralisation blankets
the deposit. Although the top of fresh rock is
well defined variability of copper mineral
species within the weathering profile is not
well
understood.

· Geological interpretation was completed on a
sectional basis; from which polylines were
interpolated to create 3D solid wireframes for
mineralisation and surfaces for weathering
interfaces.

· The main mineralisation domains were defined
using grade constraints. A nominal cut-off
grade of 0.3% Cu was used to define boundaries
between strongly mineralised structures and a
weakly-mineralised low grade envelope, which
was itself separated from unmineralised rock
by a 0.1% Cu grade
shell.

· Three main geological domains were defined
based on observed internal consistency in
geological characteristics: north-south
trending mineralised structures,
north-northeast trending linking mineralised
structures and low grade
envelopes.

· Statistical and geostatistical analysis
verified the domain definition by confirming
statistical homogeneity and the presence of
distinct continuity
characteristics.

· Contact analysis informed the selection of
hard domain boundaries for
estimation.

· All domains were further subdivided using a
top of fresh rock surface to separate oxide
mineralisation and primary sulphide
mineralisation.

Dimension· The main zone of mineralisation extends over
s a strike length of 2.5km, including a distinct
1.15km long northern zone Bedford North and
850m long southern zone Bedford
South.

· Mineralisation dips broadly west at 70-80°.
· Mineralisation occurs at surface, is exposed
in sub-crop, and is confirmed through drilling
in the main zones down dip to ~140m vertical
depth below
surface.
-
· The deposit remains open to north and south
along strike, down dip and between the two
zones.

Estimatio· Drillhole sample data was flagged from
n and estimation domain
modellin wireframes.
g
techniqu· Sample data was composited to a 1m downhole
es length.

· The influence of extreme outliers was reduced
by top-cutting, with top-cut levels determined
by a combination of qualitative (grade
histograms, lognormal probabilty plots) and
quantitative analysis (decile analysis).
Top-cuts were applied to nine gold and two
copper samples, less than 1.5% of samples in
affected
domains.

· Variography was completed to characterise
copper and gold continuity in each sulphide
domain.

Nugget varies greatly as a proportion of
overall variance in different domains,
recording changes in the degree of small scale
variability and/or errors. High influence is
modelled in the north-south mineralised
structures, accounting for ~30% of copper and
13% of gold variability. Geometric anisotropy
is consistent with the geological model, with
variogram reference planes striking north to
north-northeast and dipping steeply west
(70-80°). A shallow (20-25°) northerly plunge
is also evident on this plane.

Directional variogram model ranges include:
North-south mineralised structures - 54m along
strike, 90m down dip, 3.8m across plane.
North-northeast linking mineralised structures
- 52m along strike, 30m down dip, 4m across
plane. Low grade envelope - 55m along strike,
40m down dip, 6m across
plane.

· Drillhole spacing ranges from 25m to 100m
along strike; 25m on-section spacing

is typical.
· Grade estimation was into parent blocks of
10mE by 20mN on 10mRL via ordinary kriging.


· Three estimation passes were completed with
search ellipse orientations derived from
principal directions of continuity in the
variogram. Search distances in the first
search were optimised by domain type using
quantitative kriging neighbourhood analysis.
These distances were doubled and subsequently
trippled in the second and third estimation
passes.

· Search parameters in the second and third
estimation passes for the north-south trending
mineralised structures were further optimised,
with reduced minimum and optimum sample
numbers improving local accuracy at the
transitions between dense and sparse sample
data.

· Post-processing of the ordinary kriged panel
data by uniform conditioning was used to
estimate copper grades at the selective mining
unit (SMU) scale of 5mE by 5mN by
5mRL.

· The ordinary kriged copper and gold panel
model grades were visually validated against
the input drillhole data. Comparisons were
also carried out between domain wireframe and
domain block model volumes, average domain
sample and domain block grades, as well as
grade-tonnage curves for different estimation
methods.

Moisture · Tonnes have been estimated on a dry basis.
· Moisture content has not been tested.
Cut-off · The Mineral Resource is reported above a 0.3%
paramete copper cut-off grade and within 140m of the
rs surface, to reflect current commodity prices
and open pit
mining.

Mining · Planned extraction is by open pit mining.
factors · Mining factors such as dilution and ore loss
or have not been
assumpti applied.
ons

Metallurg· No metallurgical assumptions have been built
ical into the resource
factors models.
or
assumpti· Preliminary metallurgical and mineralogical
ons testing on samples from sulphide
mineralisation support recovery and indicate
that economic concentrate grades can be
achieved.

Environme· The Bedford resource is included as a
ntal component of the Little Eva Project covered by
factors a granted Environmental Authority
or (EA).
assumpti
ons · Baseline and ongoing studies form part of EA
requirements.

· Analysis of simulated tailings fluids and
solids prepared through laboratory scale test
work indicates favourable environmental
results for the neighbouring Little Eva
deposit. Simulated sulphide and oxide tailings
were found to be benign in terms of potential
for formation of acidic, saline or
metalliferous
drainage.

· By nature of similar setting to Little Eva,
in-part shared host rocks and low sulphide
content, no adverse environmental
considerations have been built into the
resource
model.

Bulk · 23 in-situ bulk density measurements were
density collected by Altona personel from BFD163 in
2015. Values are based on physical
measurements conducted on core samples using
the weight in air / weight in water
method.

· Samples were primarily collected from
partially weathered rock. Excluding two
outliers an average density of 2.78 was
returned.

· In-situ bulk densities applied to the
resource estimate are: oxidised rock 2.4
t/m
3, and, fresh rock 2.8 t/m3. These values are
considered
conservative.

Classific· Bedford Mineral Resources have been
ation classified on the basis of confidence in
geological and grade continuity using the
drilling density, geological model, modelled
grade continuity, estimation passes and
conditional bias measures (slope of the
regression and kriging efficiency) as
criteria.

· Measured Mineral Resources - none defined
· Indicated Mineral Resources - have been
defined in areas where drill spacing is 25m
by 25m or less, extending
t
o a down dip extent of up to 25m below
drilling. Block grades were primarily
calculated in the first estimation pass.
Further drilling is percieved unlikely to
result in material
change.

· Inferred Mineral Resources have been defined
in areas where extension of mineralisation is
supported by sparse drill data (50-100m
spacing along strike) and good continuity in
Cu-in-soil anomalism. A significant proportion
of block grades have been calculated in later
estimation
passes.

· The classification considers all available
data and quality of the estimate and reflects
the Competent Persons view of the
deposit.

Audits · The geological interpretation, estimation
or parameters and validation of the resource
reviews models has been internally reviewed by Altona
staff.

Discussio· The assigned classification of Indicated and
n or Inferred reflects the Competent Persons
relative assessment of the accuracy and confidence
accuracy levels in the Mineral Resource
/ confid estimate.
ence

APPENDIX 2: SUMMARY OF MINERAL RESOURCE ESTIMATES FOR THE CLONCURRY PROJECT
DEPOSIT TOTAL CONTAINED MEASURED INDICATED INFERRED
METAL
TonneGrade CopperGold TonneGrade TonneGrade TonneGrade
s s s

milliCu Au tonnesouncesmilliCu Au milliCu Au milliCu Au
on on on on

% g/t % g/t % g/t % g/t
LITTLE EVA PROJECT
Little Eva105.90.52 0.09 546,00295,0037.1 0.60 0.09 45.0 0.46 0.08 23.9 0.50 0.10
0 0

Turkey 21.0 0.59 123,00- - - 17.7 0.59 3.4 0.58 -
Creek 0

Ivy AnnA 7.5 0.57 0.07 43,00017,000- - - 5.4 0.60 0.08 2.1 0.49 0.06
Lady Clayr14.0 0.56 0.20 78,00085,000- - - 3.6 0.60 0.24 10.4 0.54 0.18
e
A
Bedford 4.8 0.80 0.21 38,00032,000- - - 2.3 0.95 0.23 2.5 0.66 0.19
Sub-to153.30.54 0.09 829,00430,0037.1 0.60 0.09 74.0 0.52 0.07 42.2 0.53 0.11
tal 0 0

OTHER DEPOSITS
BlackardA 76.4 0.62 - 475,00- 27.0 0.68 - 6.6 0.60 - 42.7 0.59 -
0

ScanlanA 22.2 0.65 - 143,00- - - - 18.4 0.65 - 3.8 0.60 -
0

Longamundi10.4 0.66 - 69,000- - - - - - - 10.4 0.66 -
A

LegendA 17.4 0.54 - 94,000- - - - - - - 17.4 0.54 -
Great Sout6.0 0.61 - 37,000- - - - - - - 6.0 0.61 -
hern
A
CarolineA 3.6 0.53 - 19,000- - - - - - - 3.6 0.53 -
Charlie Br0.7 0.40 - 3,000 - - - - - - - 0.7 0.40 -
own
A
Sub-to136.70.61 - 840,00- 27.0 0.68 - 25.0 0.64 84.7 0.59 -
tal 0

TOTAL 290.00.58 0.05 1,668,430,0064.1 0.63 0.05 99.0 0.55 0.05 126.90.57 0.04
000 0
A This information was prepared and first disclosed under the JORC Code 2004 Edition. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. All other resources classified and reported in accordance with JORC Code 2012 edition.
Note: Tonnages are dry metric tonnes and have been rounded, hence small differences may be present in the totals.
See ASX release of 23 October 2007 and 26 July 2011 (Longamundi, Great Southern, Caroline and Charlie Brown), 23 April 2012 (Ivy Ann and Lady Clayre), 03 July 2012 (Blackard and Scanlan) and 22 August 2012 (Legend) for full details of resource estimation methodology and attributions.
Little Eva is reported above a 0.2% copper lower cut-off grade, all other deposits are above 0.3% lower copper cut-off.

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Datum: 09.03.2017 - 12:20 Uhr
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