ANNUAL RESOURCE AND RESERVE STATEMENT

Transcription

1 ASX Announcement 28 September 2016 ASX: DRM ANNUAL RESOURCE AND RESERVE STATEMENT 17% increase in Group Resource Inventory to 1.38Moz and 27,000t Cu 1 33% increase in Andy Well Resource Inventory (including Gnaweeda) after mining depletion o 46% classified as Measured and Indicated 9.6g/t for 368,000oz) o Inferred Resource of 2.4g/t (419,000oz) includes maiden Gnaweeda Resource Group Ore Reserves of 5.8g/t (467,000oz) 2 o Andy Well Reserve of 6.1g/t equates to a further 2 years mine life before potential additions from Gnaweeda Andy Well gold endowment (Resource plus production to date) reaches 1Moz Doray Minerals Ltd (ASX: DRM, Doray, the Company), today announced an updated Resource and Reserve estimate as at 30 June 2016, including a 17% increase to the Group Mineral Resource Inventory, which now totals approximately 1.38 million ounces contained gold across the Andy Well and Deflector Projects. Doray has increased the total Andy Well Resource inventory by 33% over the past 12 months, net of mining depletion. The Andy Well Resource (excluding Gnaweeda) now stands at 8.4g/t for 520,000 ounces with approximately 368,000 ounces (46%) classified as Measured and Indicated and with an average grade of approximately 9.6g/t. The increase in the total Andy Well Resource to 3.7g/t (786,000 ounces) has come through: Replacement of Resources within the Wilber, Judy and Suzie Lodes depleted by mining; and Addition of the maiden Inferred Resource for the Turnberry deposit at Gnaweeda The Andy Well Ore Reserve has been maintained at approximately 145, g/t after production of over 84,000 ounces in the financial year ending 30 June 2016 and approximately 250,000 ounces to date. Doray s Managing Director, Mr Allan Kelly, said that the Andy Well Project had exceeded expectations when compared with the original BFS, completed in 2012, prior to the commencement of mining and construction. Since commencement of production in gust 2013, Andy Well has produced over 250,000 ounces of gold and has at least a further 2 years of Reserves remaining, compared with the BFS estimate of 256,000 ounces and mine life of 3.7 years, Mr Kelly said. If we look at the cumulative production to date, when combined with the current Resource, the total number exceeds 1 million ounces for the first time in the Project s short history, he added. Combined with Deflector, the Group Ore Reserve Inventory totalled 467,000 contained 5.8g/t at 30 June 2016, before the commencement of production from Deflector. There has been no change to the Mineral Resource / Reserve at the Deflector Project at 30 June 2016, as the Project had only recently commenced mining and production at that date, however upcoming exploration programs have the potential to add to the mining inventory in the near term. 1 See Tables 1 and 2 below 2 See Table 6 1 P a g e

2 Table 1. Doray Minerals Ltd Gold Mineral Resource Inventory as at 30 June Measured Indicated Inferred Total Grade Ounces Grade Ounces Grade Ounces Grade Ounces Units kt g/t oz kt g/t oz kt g/t oz kt g/t oz Andy Well ,000 1, ,000 5, ,000 6, ,000 Deflector 1, ,000 1, , ,000 2, ,000 TOTAL 1, ,000 2, ,000 5, ,000 9, ,377,000 Table 2. Doray Minerals Ltd Copper Mineral Resource Inventory as at 30 June Measured Indicated Inferred Total Grade Cu Grade Cu Grade Cu Grade Cu Units kt % t kt % t kt % t kt % t Deflector 1, ,000 1, , ,000 2, ,000 TOTAL 1, ,000 1, , ,000 2, ,000 2 P a g e

3 1. Mineral Resources Andy Well Gold Project Doray Minerals Ltd, 28 September 2016 Total Mineral Resources for the Andy Well Gold Project now incorporate Resources at both Andy Well, as well as those at the nearby Gnaweeda Project for the first time. Total Mineral Resources for the Project are now estimated at 3.7g/t for 786,000 contained ounces, a net increase of 197,000oz from the 30 June 2015 position, after depletion due to mining during the year. The breakdown of the Andy Well Mineral Resource inventory is detailed in Table 3 below. Figure 1 illustrates the reconciliation between the Andy Well Gold Project Mineral Resource inventory between 30 June 2015 and 30 June Mineral Resources at Andy Well itself include re estimation of the Wilber, Judy and Suzie Lodes utilising data generated through the extensive on going underground diamond drilling programme at the mine. Wilber Lode Drilling has seen the net contained Resources at Wilber essentially remain neutral after mining depletion (317,000ozs against 331,000ozs as at 30 June 2015). The majority of this Resource added in replacing mine depletion has come from direct extensions to the orebody at depth, as well as extending the known strike of the orebody to the north at depth. Importantly, total Measured and Indicated Resources at Wilber have been slightly increased after mine depletion (227,000ozs against 224,00ozs as at 30 June 2015). The decrease in Inferred Resource has occurred mainly through the restriction of the Resource estimation into areas of lower drill density. In effect, drilling during FY2016 has been able to convert Inferred Resources into higher confidence categories, but hasn t been able to significantly extend Inferred Resources beyond previous drill coverage. This has occurred as a direct result of the inability to drill significantly further at depth due to limited suitable underground drill positions. Doray is working to alleviate this issue in FY2017 through the instigation of a deep directional drilling campaign from surface. The details of the Wilber Lode re estimation are summarised in the Appendix to this release and the updated JORC Table 1. Judy Lode In addition to Wilber, Mineral Resources at the Judy Lode have been increased after mining depletion (141,000ozs against 126,000ozs as at 30 June 2015). Along with a net increase in total endowment, the overall average Mineral Resource grade has been increased from 6.4g/t to 8.5g/t. The increase in Mineral Resources, and also the increase in overall average grade, is a result of the identification and drilling of the steep northerly plunging high grade shoots at Judy South, as well as drilling into the higher grade mineralisation at Judy North below the previously defined porphyry hosted mineralisation. In addition to the identification of the high grade controls on mineralisation, underground mining of the Judy Lode through the course of FY2016 has allowed significant refinement in the interpretation of the lode. The details of the Judy Lode re estimation are summarised in the Appendix to this release and the updated JORC Table 1. Suzie Lode As mentioned in the ASX Release dated 2 June 2016, drilling during the year at the Suzie Lode has resulted in a downgrading of the Mineral Resource after depletion for open pit mining carried out during the year. This drilling essentially failed to convert much of the previously Inferred Resource once drill density was increased. As a result, while the total contained ounces in the Suzie Indicated Resource was essentially doubled (44,000ozs against 22,000ozs as at 30 June 2015), and the overall grade increased (6.5g/t against 5.9g/t ) even once mining depletion had been taken into account, the total Inferred Resource has been reduced significantly. The details of the Suzie Lode re estimation are summarised in the Appendix to this release and the updated JORC Table 1. Gnaweeda The Andy Well Gold Project now incorporates the Inferred Mineral Resource defined for the Turnberry prospect at Gnaweeda, totalling 1.8g/t for 266,000ozs. This Resource is based predominately on a series of RC drilling programmes completed at the Project by Doray since acquisition. As detailed in the ASX Release dated 20 July 2016, the Turnberry interpretation is deliberately based on a broad mineralised envelope, and takes a conservative approach to the treatment of drill intersections due to the current irregularity of drill spacing. A comprehensive RC and diamond drill programme is currently 3 P a g e

4 underway at Gnaweeda, with the objective of upgrading confidence in the interpretation, as well as allowing for an initial mining evaluation to be undertaken. Since commencement of mining operations at Andy Well, Doray has continued to add to the Mineral Resource inventory through drill extensions to the Andy Well Lode system, as well as through the addition of a second Resource centre at Gnaweeda. As illustrated in Figure 2, the Andy Well Gold Project now stands at a total gold endowment of over 1 Million ounces (current Mineral Resources and cumulative production to date), confirming its status as a significant gold operation in the Murchison Region of WA. Total Andy Well Mineral Resources are detailed in Table 3 below, with explanatory notes for the Andy Well Lodes estimation included in Appendix A. Details of the Gnaweeda Turnberry Mineral Resource estimation are included in the ASX Release dated 20 July Figure 1. Reconciliation of the Andy Well Resource inventory between 30 June 2015 and 30 June Figure 2. Andy Well Project Total Gold Endowment from discovery (March 2010) to 30 June P a g e

5 Table 3. Andy Well Gold Project Mineral Resource Inventory as at 30 June 2016 Andy Well Wilber Andy Well Judy Andy Well Suzie Andy Well Stockpiles Sub Total Andy Well Lodes Gnaweeda Turnberry TOTAL RESOURCE (t) Measured Indicated Inferred Total Grade (g/t) Ounces (t) Grade (g/t) Ounces (t) Grade (g/t) Ounces (t) Grade (g/t) Ounces 124, , , , , ,000 1,007, , , , , , , , , , , , , ,000 40, ,000 40, , , ,000 1,020, , , ,000 1,921, ,000 4,600, ,000 4,600, , , ,000 1,020, ,000 5,337, ,000 6,521, ,000 Note: Andy Well Lodes reported above a 0.1g/t, Turnberry Resource above 0.8g/t. Rounding errors may occur. All Mineral Resources are inclusive of those used to determine Ore Reserves. 5 P a g e

6 Figure 3. Wilber Lode long section showing new Resource outlines. 6 P a g e

7 Figure 4. Judy Lode long section showing new Resource outlines. 7 P a g e

8 Figure 5. Suzie Lode long section showing new Resource outlines. 8 P a g e

9 Deflector Gold Project Doray Minerals Ltd, 28 September 2016 There has been no change to the Deflector Mineral Resource inventory, previously announced by Doray as at 30 June 2015, as processing of ore had not materially started as at the 30 June The breakdown of the Deflector Mineral Resource inventory, both in terms of contained Gold and associated contained Copper by product, as at 30 June 2016 is detailed below. Table 4. Deflector Gold Mineral Resource Inventory as at 30 June 2016 (Kt) Measured Indicated Inferred Total Grade (g/t) Ounces (Kt) Grade (g/t) Ounces (Kt) Grade (g/t) Ounces (Kt) Grade (g/t) Ounces Deflector 1, ,000 1, , ,000 2, ,000 TOTAL 1, ,000 1, , ,000 2, ,000 (Kt) Table 5. Deflector Copper Mineral Resource Inventory as at 30 June 2016 Measured Indicated Inferred Total Cu Grade (%) Cu (Kt) Cu Grade (%) Cu (Kt) Cu Grade (%) Cu (Kt) Cu Grade (%) Cu Deflector 1, ,000 1, , ,000 2, ,000 TOTAL 1, ,000 1, , ,000 2, ,000 Note: Deflector Mineral Resources reported above a 0.5g/t. Rounding errors may occur. All Mineral Resources are inclusive of those used to determine Ore Reserves. 9 P a g e

10 Figure 6. Deflector West Lode long section, showing classification of Mineral Resources. 10 P a g e

11 2. Ore Reserves Andy Well Gold Project Reserves are approximately 145,000 ounces, net of mining depletion during the year ending 30 June With the addition of the Deflector Gold Project, Doray s combined Ore Reserve totals over 460,000 ounces. Total Ore Reserves are detailed in Tables 6 and 7 below, with explanatory notes for the revised Reserves included in Appendix A. Table 6. Proved & Probable Gold Ore Reserves as at 30 June 2016 (Classifications in Tables 8 11 below) (Kt) Gold Grade (g/t) Ounces Andy Well ,000 Deflector 1, ,000 TOTAL 2, ,000 Table 7. Proved & Probable Copper Reserves as at 30 June 2016 (Classifications in Tables 9 11 below) Copper Cu Grade Cu (Kt) (%) Deflector 1, % 16,000 TOTAL 1, % 16,000 Note: Calculations have been rounded to the nearest 1,000t, 0.1g/t grade and 1,000oz metal, 0.1g/t Ag grade and 1,000oz metal and 0.1% Cu grade and 1,000t metal. Differences occur due to rounding Andy Well Gold Project Ore Reserves at Andy Well are estimated at 734,000t at 6.1g/t for 145,000 contained ounces, net of mining depletion to 30 June During FY16, ore mining from the Judy Lode commenced via underground access from the Wilber Lode, and the remaining Wilber Stage 2 and Suzie open pit Reserves were mined to completion. The remaining Suzie Ore Reserve is planned for extraction using underground methods via access developed from the Judy Decline. 11 P a g e

12 Table 8. Classification of Andy Well Gold Ore Reserves (t) Proved Probable Total Grade (g/t) Ounces (t) Grade (g/t) Ounces (t) Grade (g/t) Ounces Andy Well Lodes 51, , , , , ,000 Gnaweeda TOTAL RESERVES 51, , , , , ,000 Note: Figures have been rounded to the nearest 1,000t, 0.1g/t grade and 1,000oz metal, differences occur due to rounding. Underground Reserves are based on a nominal 2.0g/t lower cut-off grade. Figure 7 Reconciliation of the Andy Well Reserve inventory between 30 June 2015 and 30 June P a g e

13 Deflector Gold Copper Project There has been no change to the Deflector Mineral Reserves as previously announced by Doray as at 30 June The breakdown of the Deflector Mineral Reserves of contained Gold and associated contained Copper by product, as at 30 June 2016 is detailed below. Total Gold Ore Reserves 6.0g/t for 5.6g/t for 322,000 contained ounces. Total Copper Ore Reserves 0.9% containing 16,000t of copper. Table 9. Deflector Gold & Copper Open Pit Reserves as at 30 June 2016 DEFLECTOR Gold Copper Grade (g/t) Ounces Cu Grade (%) Cu Proved 348, , % 6,000 Probable TOTAL 348, , % 6,000 Table 10. Deflector Gold & Copper Underground Reserves as at 30 June 2016 DEFLECTOR Gold Copper Grade (g/t) Ounces Cu Grade (%) Cu Proved 560, , % 6,000 Probable 873, , % 4,000 TOTAL 1,432, , % 10,000 Table 11. Deflector Total Gold & Copper Ore Reserves as at 30 June 2016 DEFLECTOR Gold Copper Grade (g/t) Ounces Cu Grade (%) Cu Proved 908, , % 11,000 Probable 873, , % 4,000 TOTAL 1,781, , % 16,000 Note: Calculations have been rounded to the nearest 1,000t, 0.1g/t grade and 1,000oz metal, 0.1g/t Ag grade and 1,000oz metal and 0.1% Cu grade and 1,000t metal. Differences occur due to rounding 13 P a g e

14 3. Increased Exploration Budget to drive further Resource and Reserve increases Doray Minerals Ltd, 28 September 2016 Doray s Board has recently approved a budget of $15.5 million for exploration activities at the company s various projects for the 2017FY with the greatest component of that budget allocated to brownfields and Resource extensional exploration at both the Andy Well ($6.5m) and Deflector ($4.5M) Gold Projects. These budgets are focussed on the extensions to current active orebodies and delineation of potential new orebodies within trucking distance of existing processing infrastructure. To that end, a number of programmes are either currently underway, or are in the definitive planning stages for execution in the short term. At the Andy Well Gold Project, RC drilling has recommenced at the Turnberry prospect at Gnaweeda with one rig active at Turnberry at present. A prospect wide Aboriginal heritage survey has just been completed covering the entire proposed Mining Lease area. This will allow a ramp up in drilling activities at Turnberry, as well as facilitating any potential mine development. It is planned that diamond drilling at Turnberry will shortly commence in conjunction with the RC drilling, and an aggressive aircore programme will be undertaken to scope out the entire 6km strike of the Turnberry geological structure down to the St Anne s prospect. While these drill programmes are focussing on both extending coverage of known mineralisation as well as infilling the existing Resource area and upgrading confidence levels, other technical studies including metallurgical, hydro geological, geotechnical and environmental baseline surveys are underway to facilitate future mining evaluation and permitting. Underground extensional diamond drilling is also ongoing at Andy Well, whilst planning for a deep directional drilling programme under the Wilber and Judy lodes is well advanced. These holes will target mineralisation in excess of 200m down dip of current drill coverage, and aim to provide longer term targets for mine planning and infill drilling. At the Deflector Gold Project, RC drilling is well advanced testing the southern extensions to the current open pit, where grade control drilling has suggested strong oxide and transitional mineralisation is continuing out of the current pit design. In addition, a deeper diamond drilling campaign is planned for the December quarter, with the aim of extending the two main orebodies at Deflector (the Western and Central Lodes) beyond the base of drilling, currently approximately 350m below surface. The current Resource estimate and hence life of mine are constrained by the current extents of drilling. Successful drilling results are expected to increase the Resource estimate and life of mine in the future. For further information, please contact: Cameron Peacock Investor Relations Doray Minerals Ltd +61 (0) investorrelations@dorayminerals.com.au ENDS Margie Livingston Media Relations AMN Corporate +61 (0) margie@amncorporate.com 14 P a g e

15 About Doray Minerals Limited Doray Minerals Ltd, 28 September 2016 Doray Minerals Limited is an stralian gold producer, developer and explorer with two new high grade Western stralian gold assets: the Andy Well Gold Project, which commenced production in gust 2013; and the Deflector Gold Project, which commenced production in May Doray has a strategic portfolio of gold exploration properties within Western stralia and South stralia and each presents multiple discovery opportunities. The Company's Board and management team has a proven track record in discovery, development, and production. Competent Persons Statement The information in this announcement that relates to Ore Reserves is based on information compiled by Peter Bamford. Mr Bamford is a full time employee of Doray Minerals Ltd and is a Fellow of the stralasian Institute of Mining and Metallurgy (simm). Mr Bamford has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activities, which he is undertaking. This qualifies Mr Bamford as a Competent Person as defined in the 2012 edition of the stralasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bamford consents to the inclusion of information in this announcement in the form and context in which it appears. Mr Bamford holds shares and performance rights in Doray Minerals Ltd. The information in this announcement that relates to Mineral Resources is based on information compiled by Mark Cossom. Mr Cossom is a full time employee of Doray Minerals Ltd and is a Member of the stralasian Institute of Mining and Metallurgy (simm). Mr Cossom has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activities, which he is undertaking. This qualifies Mr Cossom as a Competent Person as defined in the 2012 edition of the stralasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Cossom consents to the inclusion of information in this announcement in the form and context in which it appears. Mr Cossom holds shares and performance rights in Doray Minerals Ltd. 15 P a g e

16 APPENDIX A Notes on Mineral Resource and Ore Reserve Inventory Resource Estimation Methodology Wilber Lode 2016 Doray Minerals Ltd, 28 September 2016 The 2016 resource update for the Wilber Lode is based on a compilation of 579 Reverse Circulation and 719 diamond drillholes completed to date by Doray Minerals Ltd, inclusive of 5 holes (4 RC and 1 Diamond) previously drilled by WMC Ltd. The data and information incorporated in the estimation project includes all resource definition drilling and assay data available as of 30th of April 2016, provided and validated by Doray. All interpretations of the mineralised domains were undertaken by Brad Ackroyd (Senior Mine Geologist) and reviewed by Karen Wellman (Senior Resource Geologist) prior to commencing the resource estimation. Drill spacing varies with Resource Definition drilling based on 20m x 25m and 50m x 50m spaced centres within the main mineralization area. Surface grade control drill spacing was 5m x 5m with underground diamond drilling on 12.5m x 20m centres. All Doray drilling has been geologically logged, with samples collected by either cone splitting of RC chips on 1m intervals down hole, half core (HQ, NQ, LTK 60) and whole core (BQ) samples for diamond drilling, with a minimum sample width of 0.3m and a maximum sample width of 1.3m. Samples were submitted to either Minanalytical or SGS Laboratories in Perth and analysed for by either: 25g fire assay digest with an AAS determination (Minanalytical); or a 30g fire assay with AAS determination (SGS). All assays were required to conform to Doray Minerals QA/QC guidelines as well as internal laboratory QA/QC guidelines. All holes have been located by Real Time Kinetic GPS on surface, as well as multi shot reflex tool surveys down hole. The Wilber lode consists of a simple steeply dipping, quartz vein hosted lode within a well defined shear zone in the mafic sequence. The mineralisation interpretation is based on the logged and mapped quartz vein and quartz vein percentages. The lode consists of three domains, Wilber Lode North (WLN), Wilber Lode South (WLS) and Wilber Lode Main (WLM), all dipping steeply to the west. WLN and WLM are separated by a north south trending fault with reverse dextral movement interpreted. For the purposes of estimation, WLM and WLS were combined as they were deemed to be one continuous lode. A geological domain was also created for the cross cutting late stage Proterozoic dolerite dykes, which were used to deplete the model as these dykes are interpreted to post date, and thus stope out mineralisation. Geological domains were also created for transported material, oxide and transitional weathering domains. All domains were interpreted in 3 dimensions utilising Surpac Software, and wire framed into either solid 3dm s for grade domains, or dtm surfaces for transported and weathered domains. Assay data was composited to 1m intervals and evaluated in Snowden Supervisor where statistical analysis indicated the top cut for all Wilber domains could be increased to 400 ppm. Several steep northerly plunging high grade shoots are now evident at Wilber, supported by strong grade continuity of 250m in the variogram model. Quantitative Kriging Neighbourhood Analysis was carried out and used to validate decisions on search and estimation parameters for grade interpolation. A 3D Ordinary Kriged block model was created for the Wilber Lode, with a block size of 1mE by 20mN by 20mRL with sub celling permitted to 0.25mE by 5mN by 5mRL. Bulk density values were assigned to the model based on ore zone and weathering domains. Bulk density values were generated by statistical analysis of down hole Gamma probe data collected from 6 holes across the Wilber deposit, with values collected every 10cm down hole. These Gamma data were also checked against several values obtained by water displacement method from across the fresh rock domain, in order to validate the detailed data. Several check runs were completed utilising different top cuts and estimation parameters as validation checks of the grade estimate. These checks indicated limited sensitivity to the choice of top cut. The model was also validated by visual inspection of both the block model fill against the raw assay data, as well as the generation and inspection of grade tonnage curves, and composite vs. block grade data by both elevation and northings through the deposit. As a significant amount of production data is now available, the resource model was evaluated against mined areas and slightly under called the total ounces mined to date. Model classification for Measured, Indicated and Inferred (in accordance with the JORC Code 2012) was based on data density, as well as analysis of slope of regression block statistics throughout the model. 16 P a g e

17 Resource Estimation Methodology Judy Lode 2016 Doray Minerals Ltd, 28 September 2016 The 2016 resource update for the Judy Lode is based on a compilation of 126 Reverse Circulation and 201 diamond drillholes completed to date by Doray Minerals Ltd. The data and information incorporated in the estimation project includes all resource definition drilling and assay data available as of 30th of April 2016, provided and validated by Doray. All interpretations of the mineralised domains were undertaken by Brad Ackroyd (Senior Mine Geologist) and reviewed by Karen Wellman (Senior Resource Geologist) prior to commencing the resource estimation. Drill spacing varies with Resource Definition drilling based on 20m x 25m and 50m x 50m spaced centres within the main mineralization area. Surface grade control drill spacing was 7.5m x 10m with underground diamond drilling on 12.5m x 20m centres. All Doray drilling has been geologically logged, with samples collected by either cone splitting of RC chips on 1m intervals down hole, half core (HQ, NQ, LTK 60) and whole core (BQ) samples for diamond drilling, with a minimum sample width of 0.3m and a maximum sample width of 1.3m. Samples were submitted to either Minanalytical or SGS Laboratories in Perth and analysed for by either: 25g fire assay digest with an AAS determination (Minanalytical); or a 30g fire assay with AAS determination (SGS). All assays were required to conform to Doray Minerals QA/QC guidelines as well as internal laboratory QA/QC guidelines. All holes have been located by Real Time Kinetic GPS on surface, as well as multi shot reflex tool surveys down hole. Two grade domains (Judy North and Judy South) were interpreted using geological logging where the lode was identified primarily on the presence of the quartz bearing structure irrespective of assay grade. The Judy Lode is split by a late stage Proterozoic dolerite dyke that post dates mineralisation which was modelled separately. Additionally, geological domains were created for transported material, as well as oxide and transitional weathering domains. All domains were interpreted in 3 dimensions utilising Surpac Software, and wire framed into either solid 3dm s for grade domains, or dtm surfaces for transported and weathered domains. The Judy Lode Mineral Resource was calculated in situ using 3D Ordinary Kriged estimation methodology. Raw sample data was composited into one metre intervals using the mineralised domain wireframes to control selection. Grade was interpolated into 1mE by 20mN by 20mRL parent cells, with sub celling permitted to 0.25mE by 5mN by 5mRL. The composite data was evaluated in Snowden Supervisor where statistical analysis indicated that grade tenure at Judy North differed from Judy South and therefore they were treated separately. Geostatistics suggested the top cut for Judy South could be increased to 150 ppm in the South and 70 ppm at Judy North. A steep northerly plunging high grade shoot was identified in variogram modelling and supported by the mine geology team. Quantatative Kriging Neighborhood Analysis was carried out on the domains to guide the choice of other estimation and search parameters. Bulk density values were assigned to the model based on ore zone and weathering domains. Bulk density values were generated by statistical analysis of down hole Gamma probe data collected from 6 holes across the Wilber deposit, with values collected every 10cm down hole. These Gamma data were also checked against several values obtained by water displacement method from across the fresh rock domain, in order to validate the detailed data. The resource was estimated in several runs utilising different top cuts and estimation parameters as validation checks of the grade estimate. The model was also validated by visual inspection of both the block model fill against the raw assay data, as well as the generation and inspection of grade tonnage curves, and composite vs. block grade data by both elevation and northings through the deposit. As some production data is now available in Judy South, the resource model was evaluated against mined areas and slightly under called the total ounces mined to date. Model classification for Indicated and Inferred (in accordance with the JORC Code 2012) was based on data density, as well as analysis of slope of regression block statistics throughout the model. 17 P a g e

18 Resource Estimation Methodology Suzie Lode 2016 Doray Minerals Ltd, 28 September 2016 The 2016 resource update for the Suzie Lode is based on a compilation of 164 Reverse Circulation and 35 diamond drillholes completed to date by Doray Minerals Ltd with the exception of three holes completed by WMC. The data and information incorporated in the estimation project includes all resource definition drilling and assay data available as of 15th of April 2016, provided and validated by Doray. All interpretations of the mineralised domains were undertaken by Brad Ackroyd (Senior Mine Geologist) and reviewed by Karen Wellman (Senior Resource Geologist) prior to commencing the resource estimation. Drill spacing varies with Resource Definition drilling based on 20m x 25m and 50m x 50m spaced centres within the main mineralization area. Surface grade control drill spacing was 7.5m x 10m. All Doray drilling has been geologically logged, with samples collected by either cone splitting of RC chips on 1m intervals down hole, half core (HQ, NQ, LTK 60) and whole core (BQ) samples for diamond drilling, with a minimum sample width of 0.3m and a maximum sample width of 1.3m. Samples were submitted to either Minanalytical or SGS Laboratories in Perth and analysed for by either: 25g fire assay digest with an AAS determination (Minanalytical); or a 30g fire assay with AAS determination (SGS). All assays were required to conform to Doray Minerals QA/QC guidelines as well as internal laboratory QA/QC guidelines. All holes have been located by Real Time Kinetic GPS on surface, as well as multi shot reflex tool surveys down hole. The Suzie Lode is associated with a single continuous quartz vein developed within a narrow shear zone running sub parallel to the Wilber and Judy Lodes. Suzie is located approximately 500m to the east of the Wilber Lode and was mined in 2015 as a small open cut. One domain was interpreted from the geological and assay data received. The domain was interpreted based on logged quartz intervals in drill holes, irrespective of assay grade. A minimum downhole length of 1m was interpreted, with a nominal average true width of intercepts estimated to be between 1 2m. Post mineralisation cross cutting Proterozoic dolerite dykes were also modelled and used to deplete the grade model. Additionally, geological domains were created for transported material, as well as oxide and transitional weathering domains. All domains were interpreted in 3 dimensions utilising Surpac software, and wire framed into either solid 3dm s for grade domains, or dtm surfaces for transported and weathered domains. Raw assay data was composited to 1m intervals and evaluated in Snowden Supervisor where statistical analysis indicated a top cut of 100 ppm. Variogram modelling indicated grade continuity was greatest in the dip plane moderately plunging to the north. Quantitative Kriging Neighbourhood Analysis was carried out and used to validate decisions on search and estimation parameters for grade interpolation. A 3D Ordinary Kriged block model was created for the Suzie Lode, with a block size of 1mE by 20mN by 20mRL with sub celling permitted to 0.25mE by 5mN by 5mRL. Bulk density values were assigned to the model based on ore zone and weathering domains. Bulk density values were generated by statistical analysis of down hole Gamma probe data collected from 6 holes across the Wilber deposit, with values collected every 10cm down hole. These Gamma data were also checked against several values obtained by water displacement method from across the fresh rock domain, in order to validate the detailed data. Several check runs were completed utilising different top cuts and estimation parameters as validation checks of the grade estimate. The model was also validated by visual inspection of both the block model fill against the raw assay data, as well as the generation and inspection of grade tonnage curves, and composite vs. block grade data by both elevation and northings through the deposit. Model classification for Indicated and Inferred (in accordance with the JORC Code 2012) was based on data density, as well as analysis of slope of regression block statistics throughout the model. 18 P a g e

19 Ore Reserve Methodology Andy Well Doray Minerals Ltd, 28 September 2016 The Andy Well Ore Reserve is based wholly on underground mining, following the completion of the Wilber and Suzie open pits during FY16. Andy Well Mine encompasses several lodes including Wilber, Judy and Suzie. Reserves were generated on the basis of underground extraction using conventional drill and blast with twin boom jumbo, bogger and truck mobile fleet for mine development and bottom up, modified Avoca longhole stoping with cemented rock fill and waste fill for ore production. Ore development headings are accessed by a 5mW x 5.5mH decline mined at a gradient of 1:7 and a linking level cross cut drive. Levels are spaced at 17m vertically in Wilber and Judy, and at 20m in Suzie. Mine design work was completed using Deswik software with ore development for all areas being split into individual tasks 3m in length and 3mW x 4.7mH. Stope blocks were also created as individual tasks with 10m strike lengths, and widths assigned as 2.5m for Wilber and 2.0m for both Judy and Suzie. Each task was then interrogated against the relevant resource block model to allocate their respective tonnes and grades. Factors for overbreak and recovery were also applied. Using current mining, processing and site costs, each level was evaluated to determine the economic limits then an overall evaluation of each mining area was completed. Reserve design extends to 850mRL for Wilber Deeps, 987mRL for Middle, 1101mRL for Judy and 1173mRL for Suzie. Reserves were evaluated using a gold price of AUD$1600 per ounce. Ore Reserve Methodology Deflector The Deflector Ore reserve is based upon open pit and underground mining. This Reserve has not changed since ASX: MYG announcement 4 gust 2014, which details the methodology used to compile estimates. 19 P a g e

20 Andy Well 2016 Resource Summary (Table 1) Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) 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. Reverse circulation (RC) percussion drill chips collected through a cyclone and sampled at 1 metre intervals, riffle split, cone split and spear sampled. Diamond core (HQ, NQ, LTK-60) sampled half core, 0.1m to 1.3m. Diamond core (BQ) sampled whole core, 0.1m to 1.3m. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Riffle and cone splitting; spear sampling. Drilling techniques Drill sample recovery 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. 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). 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. Mineralisation determined qualitatively through: presence of sulphide and visible gold in quartz; internal structure (massive, brecciated, laminated) of quartz. Mineralisation determined quantitatively via fire assay and aqua regia assay methods. Diamond core samples crushed to 2mm and pulverized to 75µm. RC samples 1m analysed by 30g Fire Assay and AAS. When visible gold is observed in RC chips or diamond core, this sample is flagged by the supervising geologist for the benefit of the laboratory. PQ, HQ and NQ sized diamond drill core, oriented by Reflex system. Underground NQ, LTK-60 and BQ sized diamond drill core, not oriented 150mm reverse circulation drill chips. Core, assessed during drilling for loss, loss intervals recorded on core blocks, logged by geologist. Visual estimate of RC drill chip recovery recorded in database. Core: use of drilling fluid to minimize wash out. RC chips, minimize drill water use. 20 P a g e

21 Criteria JORC Code explanation Commentary 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. As sample recoveries are generally very high, there is no known relationship between sample recovery and grade. 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. Holes logged to a level of detail to support mineral resource estimation: lithology; alteration; mineralization; geotechnical; structural. Qualitative: lithology, alteration, foliation. Quantitative: vein percentage; mineralization (sulphide) percentage; RQD measurement; structural orientation angles; assayed for gold, arsenic, copper, iron, nickel; density from downhole gamma ray logging (6 holes), water displacement (11 holes); Core photographed wet and dry. All holes logged for entire length of hole. Subsampling techniques and sample preparation Quality of assay data and 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. The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. Core sawn half and quarter core from pre-2014 diamond drilling. All current underground diamond drilling is whole core sampled RC chips cone and riffle split, sampled dry where possible, and wet when excess ground water could not be prevented. Diamond core is crushed to 10mm by a jaw crusher then the entire sample is pulverized to 75µm by a LM5 (85% passing) The entire ~3kg RC sample is pulverized to 75µm (85% passing) Gold analysis is determined by either o 25g charge fire assay with an AAS finish (Minanalytical). o 30g charge fire assay with an AAS finish (SGS). Pulp duplicates taken at the pulverising stage and selective repeats conducted at the laboratories discretion. RC chips: field duplicates from re-split residual sample. Core: quarter or half core taken as duplicate. Sample size appropriate for grain size of samples material. Fire assay, total technique, appropriate for gold Aqua regia digest, partial assay, appropriate for gold and trace elements AAS appropriate for gold. 21 P a g e

22 Criteria JORC Code explanation Commentary laboratory ICPOES for trace elements. tests Verification of sampling and assaying Location of data points 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 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. 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. No geophysical data used in estimation. Certified reference material standards, 1 in 50 samples, to ppm, 1042 submitted with 2.6% failure rate is considered acceptable. Blanks: CRM blank, field blank; lab - barren quartz flush; from total of 525 samples 2.2% failed, which is considered acceptable. Duplicates: o Field: RC re-split residual sample, core every 50 th sample quarter cored o Lab: Random pulp duplicates are taken on average 1 in every 10 samples All sampling is routinely inspected by senior geological staff. Significant intersections are inspected by senior geological staff and DRM corporate staff. 2% of samples returned > 0.1g/t are sent to an umpire laboratory on a quarterly basis for verification. A single diamond hole (MNDD064) was drilled immediately adjacent to a RC hole (MNRC038) but was not sampled as it was for geotechnical purposes. Visual inspection of the diamond hole correlates well with the intersection returned from the RC hole. Data stored in Datashed database on internal company server, logging performed on LogChief and synchronised to Datashed database, data validated by database administrator, import validate protocols in place. Visual validation in Surpac by company geologists. No adjustments made to assay data. First gold assay is utilized for any resource estimation. Collars: surveyed with RTK GPS. Downhole: surveyed with in-rod Reflex tool; conventional or northseeking gyro tool, in-rod or open hole. MGA94 - Zone 50; Wilber Local grid, rotated 45 east, along strike of 22 P a g e

23 Criteria JORC Code explanation Commentary Wilber deposit. Data spacing and distribution Orientation of data in relation to geological structure Sample security dits or reviews Quality and adequacy of topographic control. 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. 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 measures taken to ensure sample security. The results of any audits or reviews of sampling techniques and data. Topographic data generated using high resolution photogrammetric techniques. Drill hole spacing is nominally 25 x 50m at shallow depths (0-175m) and 50x50m to 50m x 100m at deeper depths (>175m) Nominal 20m spacing on 25m section in mineralized area, 50m x 50m along strike and down dip. N/A Drill holes oriented at right angles to strike of deposit, dip optimized for drillability and dip of orebody, sampling believed to be unbiased. Not Applicable All samples are selected, cut and bagged in a tied numbered calico bag, grouped into larger polyweave bags and cable tied. Polyweave bags are placed into larger bulky bags with a sample submission sheet and tied shut. Consignment note and delivery address details are written on the side of the bag and delivered to Toll Express in Meekatharra. The bags are delivered directly to MinAnalytical in Canning Vale, WA who are NATA accredited for compliance with ISO/IEC17025:2005. Review of sampling and QAQC procedures and data by Cube Consulting in November P a g e

24 Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria JORC Code explanation Commentary Mineral tenement and land tenure status Exploration done by other parties 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. Acknowledgment and appraisal of exploration by other parties. M51/870 is 100% owned by Andy Well Mining Ltd, which is a wholly owned subsidiary of DRM. M51/870 is located within the Yugunga- Nya Native Title Claim. M51/870 Heritage surveys have been conducted over active mining and exploration areas M51/870 is valid until 2033 Historic exploration was carried out on Wilber by Dominion Mining, Western Mining Corporation and stralasian Gold Mines, including geophysics, soil mapping and sampling, and drilling. Geology Deposit type, geological setting and style of mineralisation. Project scale geology consists of Archean aged high Mg Basalt units intruded by north-south striking porphyry intrusives. These are cross cut by east-west striking Proterozoic dolerite dykes. The mineralized quartz vein cross cuts the Archaen units but not the Proterozoic dykes. Drill hole Information Data aggregation methods 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: o easting and northing of the drill hole collar o elevation or RL (Reduced Level elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o 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. 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. No new results being reported No top-cuts have been applied when reporting results. 1 from the interval in question is reported Intercepts are reported on a geological basis (i.e. where quartz veining is present). Significant grade intervals are often intercepted external to quartz veining but are not included in the released figures, only those that have quartz veining associated. No metal equivalent values are used for reporting exploration results 24 P a g e

25 Criteria JORC Code explanation Commentary The assumptions used for any reporting of metal equivalent values should be clearly stated. Relationship between mineralisation widths and intercept lengths Diagrams Balanced reporting Other substantive exploration data Further work 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 (eg down hole length, true width not known ). 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. 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. 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. The nature and scale of planned further work (eg 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. Drill holes oriented at right angles to strike of deposit, dip optimized for drilling purposes and dip of ore body. Mineralised intersections should approximate true widths. Strike of Wilber and Judy Lodes is 45 dipping to the west at 80. Strike of Suzie Lode is 45 dipping 70 to the west. No new results being reported. All holes drilled are reported. All meaningful and material data is reported. Further drilling is to be conducted down dip of the existing Wilber and Judy Resource once suitable drill positions become available from underground. Extensional drilling is also planned from surface targeting Wilber and Judy Deeps. 25 P a g e