Jebel Ohier PCD history of QMSD exploration.

Exploration work on Block 62 has been continuous since 2013. The first year included remote sensing, mapping and sediment sampling to generate targets. This work quickly focused on a geochemical copper and gold anomaly at Jebel Ohier (JO). It was clear after year one that hydrothermal alteration was present at JO, suggesting a major mineralizing system.

Year two commenced the first phase of drilling with an exploratory program of 5,600m reverse circulation drilling (RC) as well as further mapping, hyperspectral studies and ground geophysics. The surface rocks at JO are completely obscured by desert varnish therefore the construction of drill roads through the steep hilly terrain of JO was revelatory in exposing the fresh rock beneath, demonstrating large sections of mineralisation. A great deal of channel sampling along these roads was completed aiding the drill siting. By the end of year two, the first indications of a possible Porphyry Copper Deposit (PCD) discovery at JO were emerging.

The third year (April 2015 to March 2016) saw the project progress to phase two drilling. A program of RC and diamond core drilling (DD) totalling 11,389m was completed. In parallel to the drilling there were studies on the metallogeny and geochronology, mapping and logging (both lithological and geotechnical) and airborne geophysics. Preliminary metallurgical testing was also carried out on two RC holes which showed amenability to sulphide flotation and oxide leaching. These programs confirmed JO as major, newly-discovered PCD, hosting oxide and sulphide mineralization as well as identifying numerous other targets delineated across B62, including new PCD targets around JO.

With the confirmed identification of JO as a PCD, the mapping and logging practices were converted to the “Anaconda” style during year four (April 2016 to March 2017). This was a major change in approach and it enabled the various veining systems within the porphyry to be correctly described and mineralising domains identified. Phase two drilling continued into phase three with a total of 13,130m being drilled. Three dimensional modelling of the deposit commenced to firstly complete an in-house JO mineral inventory demonstrating significant content of Cu & Au and secondly in preparation for the maiden Mineral Resource Estimate (MRE).

Year five (April 2017 to March 2018) saw a continuation of phase three drilling with an increase during the year to 4 rigs. In total Phase 3 completed approximately 35,000m of DD drilling. A second phase of “Anaconda” style mapping and logging was conducted on surface outcrop and on the drill core. A maiden MRE was completed by the end of 2017 after the production of sections along the drill fence lines identifying the domain envelopes and Leapfrog modelling of the grade shells. Phase 3 drilling that continued after the data cut off for the maiden MRE has already demonstrated extension of the mineralisation beyond the block model in both extent and depth and has also confirmed additional PCD centres in close proximity of JO. Where allowable these extensions will be incorporated into a resource update by year end 2018 which will lead into the Preliminary Economic Assessment (PEA) in Q1 2019. Three metallurgical holes were completed as part of phase 3 drilling and the samples were shipped to Australia for testwork.

The fourth phase of drilling, a 133,000m drill program commenced in October 2018 of year six (April 2018 to March 2019). Data from the completed phase 3 program as well as the early holes of phase 4 were utilized to produce a MRe upgrade which produced a substantial increase in tonnage and copper/gold content. A PEA commenced at the end of year six and the remainder of phase 4 will feed into the data for further Resource updates for a pre-feasibility study scheduled to commence late 2020.

Jebel Ohier PCD Resources and Reserves.

Maiden Mineral Resource Estimate December 2017

  • The information in this report that is related to Mineral Resource has been reviewed and endorsed by Remi Bosc, who is a Member of the European federation of Geologist and an independent consultant. Remi Bosc has sufficient relevant experience to qualify as “qualified person” set out in National Instrument 43-101 of the Canadian Securities Administrators (“NI 43-101”).
  • Values were rounded to two or three significant figures to reflect the relative estimation precision of each resource classification.
  • Dyke material in the sulphide zone has been excluded from the Resource estimate, with the proportion of dyke material in each block estimated using Indicator Kriging.
  • Exploration Potential should not be mistaken as Mineral Resource.
  • Cut off 0.2% Cu

Jebel Ohier PCD Drill Results, selected significant intervals.

Jebel Ohier PCD Cross sections and drill hole location map.

Phase 3 drill hole locations
Cross Section 2100E
Cross section 1950E
Cross Section 225E
Long Cross Section