PEAhttps://www.miningdataonline.com/reports/BetaHunt_PEA_03042016.pdf Report Prepared
and Signed by Qualified Persons:
David Penswick P.Eng. and
Elizabeth Haren MAusIMM CPGeo
Effective Date: February1, 2016
Signature Date: March 4, 2016
Conclusion and Recommendations The PEA demonstrates that Beta Hunt is a robust operation that is able to generate positive cash flows
in the current low metal price environment. The costs for the program are included in the Base Case evaluation presented in this report.
Key recommendations include: ·Infilling drilling of existing Inferred Resources should be performed in
order to confirm resource estimates and upgrade these resources to
Indicated or Measured categories. The recommended program
could be completed from stations in existing workings and entails 26,000 metres of drilling at an estimatedcost of A$2.6M
.
·Infill drilling should be followed by a pre
-feasibility study (PFS) to identify the economically viable portion of
Measured and Indicated Resources that can be classified as reserves. It is expected this study would be initiated before the end of 2016, with a total estimated cost of A$1.0M
. This study will include test work on Beta Hunt mineralization to validate the suitability of concentratefor roasting
.
·Subsequent toinfill drilling and in parallel with the engineering study, step-out drilling of exploration targets should be conducted in order to define new resources that would permit mine life to be extended.
An initial program of 21,500metres, including 16,500m planned to target gold and the remaining 5,000mto targetnickel, would cost an estimated A$2.2M
. The exact split between gold and nickel targets in step out drilling, as well as any further drilling, would be contingent on the results of the initial program
.
·A key feature of Beta Hunt is the separate but adjacent nickel and gold deposits and associated ability to modulate production in response to market conditions. Accordingly, and given current market turbulence, short-term plans should include sufficient flexibility to allow prioritization of whichever metal allows free cash flow to be maximized at the time