Air Core drilling discovers gold mineralisation at Naujombo South

For further information, please contact:

Campbell Baird – Managing Director

Tel: +61 8 9388 7877

Stuart McKenzie – Commercial Manager and Company Secretary

Tel: +61 8 9388 7877

Sampling techniques

• Samples were composited up to 4m and sent for FAA-515 analyses (Fire Assay). All samples were submitted for analysis.  Sampling did not cross major geological boundaries.
• Grade standards (Certified Reference Materials – CRM’s) and field duplicate samples were used to monitor analytical accuracy and sampling precision.
• Sampling is guided by Indiana Resources’ standard operating and QA/QC procedures.
• AC chips are geologically logged using standard Indiana logging templates.
• The 1m bulk samples were sampled via a jones riffle splitter at the completion of each meter drilling.  The subsample was weighed and an equal weight composite (up to 4 m) was made at Ntaka Hill utilising a jones riffle splitter.
• An additional 1m EOH multi-element sample was taken.
• Sample piles are routinely photographed.

Drilling techniques

• AC Drilling was carried out using a 4 ½ blade bit to refusal at the fresh rock interface.  A slim line RC hammer was then used to ensure that fresh un-oxidised material was drilled before completion of the hole.  Drilling was undertaken by Mitchell Drilling using a Universal drill rig mounted on a truck.

Drill sample recovery

• Samples were all dry.
• AC drill recoveries were weighted using the 1 metre samples as an indicator of sample recovery.
• Recoveries were excellent (>90%), with good recoveries recorded throughout the holes.

Logging

• Geological logging of all AC holes captured various qualitative and quantitative parameters such as mineralogy, colour, and texture and sample quality.
• Logging data is collected via ruggedised laptops. The data is subsequently downloaded into a dedicated Datashed database for storage, hosted by a database consultancy.
• All AC holes have been geologically logged both qualitative and quantitative in nature and captures downhole depth, colour, lithology, texture, mineralogy, mineralisation, alteration and other features of the samples.
• AC sampling is not appropriate for mineral resource estimation and is considered a qualitative sampling technique.
• AC Hammer sampling is the equivalent to slim line RC sampling and may be appropriate for mineral resource estimation.
• Sample sheets and the database recorded the different sampling method for each sample collected.

Sub-sampling techniques and sample preparation

• AC composite samples were collected with a splitter.
• Sample duplicates were obtained by repeating the composite sampling process.
• All Samples were produced dry at the rig and no moist or wet samples were encountered during the drilling.

Quality of assay data and laboratory tests

• All samples were submitted to SGS for both the sample preparation and analytical assay.
• Samples were sent to the SGS laboratory in Mwanza (Tanzania) for sample preparation. Samples are crushed so that >70% passes -2mm and then pulverised so that >85% passes -75 microns.
• For all samples, a split of the sample is analysed using a lead oxide collection fire assay and AAS finish (SGS Minerals Codes FAA-515).
• QC insertion rates were every 20th sample (1 standard, 1 blank, 1 site duplicate).
• QAQC review of blanks, duplicates and Standards all indicate that the results are fit for purpose and that the assay method used is appropriate.
• Every hole drilled had at least one standard or duplicate inserted into the hole sample string.
• Laboratory duplicates and standards were also used as quality control measures at different sub-sampling stages.

Verification of sampling and assaying

• Senior Indiana Resources geological personnel supervise the sampling, and alternative personnel verified the sampling locations.
• Assay data is loaded directly into the Datashed database which is hosted by and managed by an external database consultancy.

• Below detection limit values (negatives) have been replaced by background values for each element.

Location of data points

• Drillhole collars have been surveyed using a differential GPS with an accuracy of 0.5 cm following the completion of the program.
• Collar surveys are validated against planned coordinates and the topographic surface.
• The primary grid used is UTM WGS84 Zone 37 South datum and projection.
• A local grid origin 439,750 mE 8,910,700 mN with a baseline oriented 045 has also been used for planning and reporting purposes – this is applicable to Naujombo.
• Naujombo South uses the WGS84 Zone 37 grid as its primary and only grid system.

Data spacing and distribution

• The spacing drilling is mainly on 40 m drill spacing with line spacing being approximately 200m so as to test the majority of the geochemical anomaly.

Orientation of data in relation to geological structure

• The majority of holes have been drilled at -60 dip toward whichever direction is appropriate to intersect the geology.

Sample security

• The samples are packed at the drill site and sealed prior to daily transport to the local field office which has 24 hour security for compositing prior to transport using a secured vehicle by field staff to SGS Mwanza. The laboratory (SGS) stores the samples in a secured yard prior to performing the assays in Mwanza.

Audits or reviews

• No audits or reviews have been conducted on sampling techniques to date.

Criteria

Explanation

Mineral tenement and land tenure status

• The exploration results reported in this announcement are from work carried out on granted prospecting licence PL/11309/2016, PL 9944/2014 or PL 5977/2009 which are owned by Anga Resources Limited (PL/11309/2016 and PL 9944/2014) or Ngwena Limited (PL 5977/2009), a wholly owned subsidiary of Indiana Resources.
• The prospecting licence PL/11309/2016, PL 9944/2014 and PL 5977/2009is in good standing.
• The tenements are the subject of a joint venture agreement with MMG Exploration Holdings Limited which holds an interest of approximately 14%.

Exploration done by other parties

• Exploration has been performed by an incorporated subsidiary company of Indiana Resources, Ngwena Limited
• Stream sediment surveys carried out historically by BHP were assayed for the commodity referred to in the announcements and was used to identify this target.

Geology

• The regional geology is thought to comprise late Proterozoic Mozambique mobile belt lithologies consisting of mafic to felsic gneisses interlayered with amphibolites and metasedimentary rocks including locally marbles and minor graphitic gneiss.

Drill hole information

• The drillhole information is supplied in Section 1 and the location of the drillhole collars is shown in the accompanying release (Appendix 1).
• No material information has been deliberately excluded.

Data aggregation methods

• Significant intercepts are reported based on a 100ppb cut-off with a minimum length of 1 m which has an allowable maximum 4m of internal low-grade material. All significant intercepts are generated using Datashed software automated grade compositing function.

Relationship between mineralisation widths and intercept lengths

• Due to the exploratory nature of the drilling the assessment of geometry of the mineralisation is ongoing.
• At present all the reported lengths are ‘down-hole’.

Diagrams

• A diagram showing the location of the drillhole collars is included in this announcement.

Balanced reporting

• All reported visual estimate intervals are downhole intervals from drilling aimed at being as perpendicular to mineralisation as practical.

Other substantive exploration data

• All other meaningful exploration data concerning the Naujombo Gold Prospect has been previously reported to the ASX.

Further work

• Refer to the announcement.