RTG to Acquire 90% Stake in the High Grade Chanach Gold Project in the Kyrgyz Republic

Resource
Category

Zone

Tonnes
(Kt)

Au
(g/t)

Ounces
(KOz)

Inferred

Lower Gold Zone

1,155

4.00

148

Inferred

Upper Gold Zone

772

4.67

116

Inferred

Sandstone Zone

279

11.41

102

Inferred

Quartz Main

325

6.22

65

Inferred

Quartz Min

185

1.87

11

Inferred

Eastern Gold Zone

123

2.79

11

Inferred

Camp Gold Zone

106

8.77

30

Inferred

Total

2,945

5.11

484

Resource
Category

Zone

Tonnes
(Kt)

Au
(g/t)

Ounces
(KOz)

Inferred

Quartz Cu

700

0.51

4

Inferred

Chanach

16,534

0.36

60

Inferred

Total

17,234

0.37

64

Criteria

JORC Code Explanation

Commentary

Sampling Techniques

• Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling
• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
• Aspects of the determination of mineralisation that are Material to the Public Report.
• In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

• RC Drill samples were collected using a face sampling hammer with each metre of drilling deposited in a plastic bag that is fed through a three-tier riffle splitter to obtain a 2.5-3kg sample.
• Diamond drill samples were collected by cutting NQ (50mm) core in half along its axis and sampling one half of the core. This generates approximately 2.5kg of core.
• Sample bags were visually inspected for volume to ensure minimal size variation. Where variability was observed, sample bags were weighed. Sampling was carried out under standard industry protocols and QAQC procedures
• A 300 gram subsample was extracted using a Jones Splitter and pulverized to 200 mesh (75 micron).
• A 30 gram sample is digested for gold analysis by Aqua Regia digest and Atomic Adsorption Spectrophotometry (AAS), and for copper analysis via pressed pellet X-ray florescence (XRF).
• A 0.2 gram sample is digested for multi-element analysis by Aqua-Regia digest and Inductive Coupled Plasma (ICP) using Mass Spectroscopy (MS) or Optical Emission Spectroscopy (OES).

Drilling Techniques

• Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).

• Reverse Circulation Drilling, 900CFM/350PSI compressor, with 133mm (5.25 inch) diameter face sampling hammer bit. Industry standard processes for RC drilling.
• Diamond drilling, NQ (50mm) diameter orientated core via Reflex ACT3.

Drill sample recovery

• Method of recording and assessing core and chip sample recoveries and results assessed.
• Measures taken to maximise sample recovery and ensure representative nature of the samples.
• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

• The calculated volume of 1m RC sample is 30kg based on rock density of 2.6 g/cm3. Sample bags were visually inspected for volume to ensure minimal size variation. Where variability was observed, sample bags were weighed. Sampling was carried out under standard industry protocols and QAQC procedures.
• Visual inspection of sample size of 1 metre samples.
• Diamond Core recovery calculations are based on recorded recovery measurements taken on core.
• No studies on relationships between sample recovery and grade have been carried out.

Logging

• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.
• The total length and percentage of the relevant intersections logged.

• Drill samples have been geologically logged and have been submitted for petrological studies. Samples have been retained and stored. The logging is considered sufficient for JORC compliant resource estimations.
• Logging is considered qualitative.
• All of the intersections have been logged.

Sub-sampling techniques and sample preparation

• If core, whether cut or sawn and whether quarter, half or all core taken.
• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
• For all sample types, the nature, quality and appropriateness of the sample preparation technique.
• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
• Whether sample sizes are appropriate to the grain size of the material being sampled.

• NQ core is cut via a diamond saw and half core sampled.
• Samples were riffle split from 30kg down to 3kg. Where samples were too wet to riffle split, samples were tube sampled.
• RC Samples were collected using a face sampling hammer which pulverises the rock to chips. The chips are transported up the inside of the drill rod to the surface
• Half NQ diamond core (2.5 kg) is sampled.
• At this stage of the exploration no sub sampling is undertaken during the collection stage.
• The whole sample collected is crushed to 1mm and a 200g sub-sample pulverised. A 2-10 gram sub sample of the pulverised sample is analysed. Field duplicates for diamond core are not routinely collected.
• The sample sizes are considered to be appropriate to correctly represent the mineralisation style.

Quality of assay data and laboratory tests

• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
• For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
• Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

• The analytical techniques used Aqua Regia acid digest, Atomic adsorption Spectrophotometry for gold analysis and ICP MS or OES for multi-element analysis are considered suitable for the reconnaissance style sampling undertaken.
• Gold analysis was carried out using a Thermo Scientific Solar S2 AA-Spectrometer with Atom Trap STAT (Slotted Tube Atom Trap), gaseous hydride generation system (VP100 Continuous Flow Vapour System)
• Multi-element analysis was carried out by aqua regia digest with ICP MS and OES analysis using an iCAP 6300 ICP-instrument manufactured by Thermo-Scientific (USA-UK).
• All mineralised intervals have been re-assayed at Bureau Veritas laboratory In Perth by Fire assay and ICP-OES using 40g samples and reported for Au, Pt, Pd
• All mineralised multi-element intervals have been digested and refluxed with a mixture of Acids including Hydrofluoric, Nitric, Hydrochloric and Perchloric Acids.
• Cu and Zn have been determined by Inductively Coupled Plasma (ICP) Optical Emission Spectrometry.
• Ag, As, Mo, Pb, and Sb have been determined by Inductively Coupled Plasma (ICP) Mass Spectrometry.
• Laboratory QAQC involves the use of internal lab standards using certified reference material, blanks, splits and replicates as part of the in house procedures.

Verification of sampling and assaying

• The verification of significant intersections by either independent or alternative company personnel.
• The use of twinned holes.
• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
• Discuss any adjustment to assay data.

• An executive director of White Cliffs has visually verified significant intersections in rock samples from the Chanach project.
• Twinned holes have not been used.
• Primary data was collected using a set of standard Excel templates on paper and re-entered into laptop computers. The information was sent to WCNin-house database manager for validation and compilation into an Access database. Assay data is received in digital and hard copy directly from the laboratory and imported into the database.
• No adjustments or calibrations were made to any assay data used in this report.

Location of data points

• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
• Specification of the grid system used.
• Quality and adequacy of topographic control.

• Sample locations were recorded using handheld Garmin GPS60s. Elevation values were in AHD RL and values recorded within the database. Expected accuracy is + or - 5 m for easting, northing and 10m for elevation coordinates.
• All holes are downhole surveyed to provide an accurate 3D drill trace.
• The grid system is WGS84 UTM (zone 42 north).
• Topographic surface uses handheld GPS elevation data, which is adequate at the current stage of the project.

Data spacing and distribution

• Data spacing for reporting of Exploration Results.
• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
• Whether sample compositing has been applied.

• The nominal sample spacing is 1 metre intervals down the hole.
• In the opinion of the Competent Persons the mineralisation has demonstrated sufficient continuity to be classified as a Mineral Resource under the guidelines of the JORC Code (2012).
• Samples have not been composited before geochemical analysis. Samples are composited to 1 metre for grade estimation.

Orientation of data in relation to geological structure

• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

• The sampling orientation for drilling is designed to be as perpendicular as possible to the known orientation of the structures.
• No orientation based sampling bias has been identified in the data at this point.

Sample security

• The measures taken to ensure sample security.

• Sample security is managed by White Cliff. Samples are collected by Company employees and transported by Company vehicles to the Laboratory in Kara Balta. The sample processing facility has Security Officers on duty 24 hours per day. The Company stores all mineralised intervals and all laboratory samples in a secured steel vault within the secured processing facility.

Audits or reviews

• The results of any audits or reviews of sampling techniques and data.

• The Company carries out its own internal data audits. No problems have been detected.

JORC Code Explanation

Commentary

Mineral tenement and land tenure status

• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

• The mineralisation is located within Exploration License AP590 which is a Joint Venture between WCN Limited (90%) and BW3 Pty Ltd (10%)
• There are no other material issues.
• The tenement is in good standing and no known impediments exist.

Exploration done by other parties

• Acknowledgment and appraisal of exploration by other parties.

• No other exploration has been carried out

Geology

• Deposit type, geological setting and style of mineralisation.

• The geological setting is of Cambrian to Permian aged intrusive porphyry systems, bounded by overlying basaltic, and sedimentary rocks. Mineralisation is mostly situated within granitic porphyry units as broad alteration containing copper sulphides and within narrow quartz veins and faults.

Drill Hole Information

• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
  • easting and northing of the drill hole collar
  • elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar
  • dip and azimuth of the hole
  • down hole length and interception depth
  • hole length.
• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

• This data has been provided in previous announcements and the volume of information would detract from a clear understanding of the current Mineral Resource.

Data Aggregation methods

• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
• The assumptions used for any reporting of metal equivalent values should be clearly stated.

• No length weighting has been applied due to the nature of the sampling technique.
• No top-cuts have been applied in reporting of the intersections.
• No aggregate intercepts are used.
• No metal equivalent values are used for reporting exploration results.

Relationship between mineralisation widths and intercept lengths

• These relationships are particularly important in the reporting of Exploration Results.
• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).

• The majority of mineralisation is steeply dipping therefore the length of mineralised intercepts in the drill holes will be longer than the true width of the mineralised zones due to the angle between the orientation of the structure and the drill hole. In general, the length relationship between true width and down hole length is ~0.5.

Diagrams

• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

• Appropriate maps and sections are included in the body of this report and in previous announcements.

Balanced Reporting

• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

• Representative reporting is included within the body of this report and in previous announcements.
• The Mineral Resource is based on all available drill hole data at the time of its estimation.

Other substantive exploration data

• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

• Extensive metallurgical test work has been conducted on all mineralised zones. The test work includes total recoverable gold, gravity recoverable gold, cyanide recoverable gold, sequential copper leach and bottle leach.
• Exploration targeting has been enhanced by a structural study completed by Orefind in 2017, a ground magnetics study by Southern Geoscience in 2016 and a geophysical study completed by Baoding Geological Engineering Institute in 2011. The project is a target rich environment with 2019 planned exploration focussing on multiple targets.

Further Work

• The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

• Ongoing reverse circulation and diamond drilling will be used to further define the nature and extent of the geochemical anomalism, and to gain lithological information.
• Most mineralisation is open both along strike and down dip.

JORC Code Explanation

Commentary

Database integrity

• Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.
• Data validation procedures used.

• Assay data digitally received directly from the laboratory and electronically transferred into an access database. Geological and survey data is received in excel spreadsheets and imported electronically into the database.
• Once in the database, the data is exported to a Map-info drill hole file where it Is validated for consistency. The drill-holes are displayed in sections and the geology visually validated for consistency.

Site visits

• Comment on any site visits undertaken by the Competent Person and the outcome of those visits.
• If no site visits have been undertaken indicate why this is the case

• The prior Competent Person for Exploration results was been with WCNfor 9 years and managed the Chanach project since acquisition in 2009. He is intimately involved in the Chanach deposits, with 18 site visits being undertaken including managing drilling programs on site, field mapping, drill hole logging and geological interpretation.
• A Competent Person from Optiro Pty Ltd the consulting company that carried out the mineral resource estimate visited the site in July 2017 and confirmed all material aspects of the drilling programs, assay laboratory and QAQC.
• The current Competent Person has not visited the site due to tight timing constraints.

Geological Interpretation

• Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit.
• Nature of the data used and of any assumptions made.
• The effect, if any, of alternative interpretations on Mineral Resource estimation.
• The use of geology in guiding and controlling Mineral Resource estimation.
• The factors affecting continuity both of grade and geology.

• There is a moderate level of confidence in the geological interpretation due to the presence of outcropping mineralisation at surface.
• Wireframes used to constrain the estimation are based on drill hole intercepts and geological boundaries. All wireframes at the Chanach copper deposit have been constructed to 0.25% Cu cut-off grade and at the Chanach gold deposit have been constructed to a 0.3 ppm Au cut-off grade for shape consistency.
• The current interpretation of controls on and interpretation of mineralisation are relatively simple and no alternative interpretations have been considered. Further exploration may result in slight changes to interpreted mineralisation zones.
• Wireframes are used to constrain the estimation and are based on drill hole intercepts and geological boundaries.
• Wireframes are constructed to a 0.3 ppm Au cut-off grade for gold and a 0.25% Cu cut-off grade for copper for shape consistency.

Dimensions

• The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource

• The gold Mineral Resource comprises four main zones, LGZ, UGZ, SSZ and QZ which have a strike length of 300 m and extend vertically for approximately 150 m below surface along with three minor zones.
• The copper Mineral Resource has one zone with a total strike length of 600 m and which extends vertically for approximately 350 m below surface and another smaller zone.

Estimation and modelling techniques

• The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.
• The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.
• The assumptions made regarding recovery of by-products.
• Estimation of deleterious elements or other non-grade variables of economic significance (eg sulphur for acid mine drainage characterisation).
• In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.
• Any assumptions behind modelling of selective mining units.
• Any assumptions about correlation between variables.
• Description of how the geological interpretation was used to control the resource estimates.
• Discussion of basis for using or not using grade cutting or capping.
• The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.

• Grade estimation using Ordinary Kriging (OK) was completed using Datamine software for Au and Cu. Drill grid spacing at the gold zones approximates 50 m and 100 m at the main copper zone.
• Variogram orientations were largely controlled by the strike of mineralisation and downhole variography. Variograms for estimation purposes were determined for each zone.
• Other estimation parameters, such as search distance, minimum and maximum sample numbers were derived from KNA. Search distances varied depending on the element being estimated and the domain.
• There has been no production at Chanach of gold or copper.
• No assumptions have been made regarding recovery of any by-products.
• No deleterious elements were estimated, and none are known to exist.
• The block model dimensions and parameters were based on the geological boundaries and average drill grid spacing. Sub-blocks were used to ensure that the block model honoured the domain geometries and volume. Block estimates were controlled by the original parent block dimensions.
• The individual parent block dimensions were 25 mE by 5 mN by 25 mRL, with sub-blocking allowed.
• Estimation into parent blocks used a discretisation of 10 (X points) by 5 (Y points) by 10 (Z points) to better represent estimated block volumes.
• No selective mining units were modelled in this estimate due to the wide drill spacing. It is assumed that the SMU is equal to the block model parent cell or smaller.
• Gold and copper were estimated for each deposit.
• Drill hole sample data was flagged using domain codes generated from three dimensional mineralisation domains. RC sampling was at 1 m intervals and diamond drilling was composited to 1 m.
• Mineralisation domains were treated as hard boundaries in the estimation process.
• Top cuts were established by investigating univariate statistics and histograms of sample values. Top cut values were selected to reduce the influence of outliers and varied by deposit.
• Model validation was carried out using visual comparisons between composites and estimated blocks, checks for negative or absent grades, and statistical comparison against the input drill hole data and graphical profile (swath) plots.

Moisture

• Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.

• Tonnages are estimated on a dry basis.

Mining factors or assumptions

• Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.

• No minimum mining assumptions were made for each deposit during the resource wireframing or estimation process. The wireframing of gold mineralisation generally required a minimum of 2 samples to be included in the wireframe.
• Mining parameters, including minimum width assumptions, will be applied during the conversion to Ore Reserves.

Metallurgical factors or assumptions

• The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.

• No metallurgical factors or assumptions are made during the resource estimation process as this will be addressed during conversion to Ore Reserve.

Environmental factors or assumptions

• Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.

• No environmental factors or assumptions have been made during the resource estimation process.

Bulk density

• Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.
• The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit.
• Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.

• Bulk Densities were collected across the Chanach gold project in the mineralised intervals from both RC and diamond drill holes. The average bulk density was calculated as 2.54 t/m3 based on 125 samples.
• Bulk density was measured using the wax encapsulation and weight in water displacement analytical method
• A bulk density of 2.74 t/m3was used for the fresh material in the Chanach deposit and 2.50 t/m3 for the oxide material. These measurements were based on the host rock types and experience from similar deposits.

Classification

• The basis for the classification of the Mineral Resources into varying confidence categories.
• Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).
• Whether the result appropriately reflects the Competent Person’s view of the deposit.

• Classification of the resource models is based primarily on drill density and geological understanding, in conjunction with extensive QAQC data and bulk density measurements.
• The classification takes into account the relative contributions of geological and data quality and confidence, as well as grade confidence and continuity.
• The classification reflects the view of the Competent Person.

Audits or reviews

• The results of any audits or reviews of Mineral Resource estimates

• No external audits or reviews have been carried out. The resource estimate has been internally peer reviewed.

Discussion of relative accuracy/ confidence

• Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.
• The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.
• These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

• The relative accuracy of the Mineral Resource estimate is reflected in the reporting of the Mineral Resource as per the guidelines of the 2012 JORC Code. The statement relates to global estimates of tonnes and grade.
• The estimate is considered to be relevant to a global report of tonnage and grade.
• There has been no production.