HIGH-GRADE TIN ZONES 19 June 2013 ASX CODE: KAS OUR PRIME COMMODITY IS TIN LME TIN PRICE (17/06/13) US$20,295 / T (CASH BUYER) ABOUT KASBAH KASBAH IS AN AUSTRALIAN LISTED MINERAL EXPLORATION AND DEVELOPMENT COMPANY. THE COMPANY IS ADVANCING THE ACHMMACH TIN PROJECT IN THE KINGDOM OF MOROCCO TOWARDS PRODUCTION. PROJECTS ACHMMACH TIN PROJECT BOU EL JAJ TIN PROJECT HIGHLIGHTS AT ACHMMACH CONFIRMED The results of in-fill drilling on sections 2430mE and 2470mE have successfully confirmed position, grade and geometry of the key high-grade mineralisation targeted for early underground extraction at Achmmach. Drilling is demonstrating potential for additional tonnage to be added to the Measured category in the next Resource update. Best drilling widths from section 2430mE include: 24m @ 1.08% Sn from 304m (including 2m @ 3.13% Sn from 321m) (AD229) 28m @ 1.26% Sn from 314m (including 3m @ 6.47% Sn from 334m) (AD235) 14m @ 1.46% Sn from 412m (AD225) CAPITAL STRUCTURE Best drilling widths from section 2470mE include: SHARES ON ISSUE: 396M UNLISTED OPTIONS: 21.95M CASH @ 31/03/13: $13.2M MAJOR SHAREHOLDERS WORLD BANK (IFC) 15.8% AFRICAN LION GROUP 15.1% TRANSAMINE 3.3% TRAXYS 3.3% MGMT & DIRECTORS 3.1% THAISARCO 2.0% CONTACT US 29m @ 1.13% Sn from 274m (including 6m @ 1.69% Sn from 280m) 22.6m @ 0.79% Sn from 300.4m (including 7m @ 1.23% Sn from 307m) 15m @ 1.38% Sn from 313m (including 4m @ 2.63% Sn from 316m) 23m @ 1.38% Sn from 316m (including 5m @ 2.96% Sn from 316m) (AD230) (AD237) (AD241) (AD230) : +61 8 9463 6651 : info@kasbahresources.com : www.kasbahresources.com Approximately 800 assays are now pending. Resource update expected in Quarter 3, 2013.
OVERVIEW Kasbah Resources Limited ( Kasbah, ASX:KAS) is pleased to report the continuation of high-grade tin mineralisation from its 20m spaced in-fill drilling program of the Gap Zone at the Achmmach Tin Project in Morocco. Sections 2430mE and 2470mE (refer Figures 1, 2 and 3) have successfully: increased resolution in a key area of the ore body targeted for early stage underground development; demonstrated the general continuity of the high-grade mineralised core defined in the March 2013 Resource model; and returned consistent moderate to high grade results from secondary targets at intermediate and deeper levels. Meknes Trend Figure 1: Achmmach Drill Plan (Meknes Trend) DRILLING OBJECTIVE The Meknes Trend within the Achmmach hill has an interpreted strike length of approximately 2km and was modelled in the March 2013 Mineral Resource Estimate (refer Table 1 ) which was released to the ASX on 5 March 2013. This resource model was based predominantly upon 40m spaced drill sections (but included some 20m spaced drill holes) drilled up to January 2013. 2
Table 1 Achmmach Tin Project Mineral Resource Estimate (5 March 2013) undiluted and @ 0.5% Sn cut off grade Category M Tonnes Sn % Contained Tin (k tonnes) Measured 0.5 1.20 6.0 Indicated 14.2 0.85 120.7 Inferred 0.6 0.70 4.2 Total 15.3 0.85 130.9 The objectives of the resource development drilling program post the release of the 5 March 2013 Mineral Resource at Achmmach has been to: extend the 20m spaced in-fill drill sections (between 2270mE and 2670mE); complete 40m spaced in-fill and extensional drilling across the Eastern Zone (on sections 3330mE to 3410mE); and complete close spaced drilling of the Eastern Zone Shallow ( EZS ) mineralisation centred on section 3050mE. If successful, this drilling may increase the Measured and Indicated component of the next mineral resource estimate. 1 Once all outstanding assays have been received a new resource estimate will commence. This estimate will incorporate all drilling completed across the shallow and deeper targets within the Meknes Trend at Achmmach and Kasbah expects an updated mineral resource estimate in Quarter 3, 2013. The updated estimate will be used in the Definitive Feasibility Study ( DFS ), due Quarter 4, 2013. KEY POINTS 2430mE & 2470mE Sections 2430mE and 2470mE are the second and third completed 20m spaced infill sections in the Gap Zone of the Meknes Trend (refer Figure 1). Approximately 240m of strike length (from 2390mE to 2630mE) has been now been infilled to 20m drill spacing. This area of the Gap Zone represents the prime target for initial ore extraction and as such the 20m spaced infill program aims to provide higher resolution and increased confidence in determining the location of the high-grade tourmaline-tin zones. 1 Kasbah notes that until the results of the drilling program are returned, the Mineral Resource classification upgrade cannot be guaranteed. 3
Diamond drilling on those sections is validating Indicated Resources and, where possible, targets the upgrade of Indicated Resources to Measured category. Sections 2430mE and 2470mE fall in the western portion of the Gap Zone where the 2013 Resource block model interpreted 4 sub-vertical feeders and more than ten branching tourmaline-tin envelopes of various sizes. The primary drilling target on both sections is TZ2270_860 which carries moderate to high grade tin results across 15 to 20m in the footwall and within a felsic intrusive for more than 120m dip length (e.g. 24m @ 1.21% Sn from 296m in AD130 on section 2410mE; 14.2m @ 3.17% Sn from 319m in AD100 on section 2450mE and 35.8m @ 1.21% Sn from 287.2m in AD141 on section 2490mE). Section 2430mE was tested with 7 drill holes totalling 3,185.2m. Section 2470mE also included seven holes for a total of 3,399.1m. Drill holes AD221, AD225, AD229 and AD230 were already integrated in the March 2013 mineral resource estimate while new drill holes will be included in the Quarter 3, 2013 resource update. SUMMARY 2430mE and 2470mE results Drilling on 2430mE and 2470mE has successfully confirmed the position and overall metal content of the high-grade mineralisation predicted by the March 2013 resource model in TZ2270_860 while refining the geometry of it. As highlighted in the ASX announcement on section 2510mE (released 13/2/13) westward from 2510mE the up dip portions of the tourmaline envelope TZ2270_860 appear to split into two branches. On section 2430mE (refer Figure 2 the main mineralisation seems to be diverted along the bottom branch which is believed to be associated with the southern limb of a decametric fold linking FEEDER_01 and FEEDER_03. On section 2470mE (refer Figure 3) hole AD230 returned unexpectedly wider high-grade intervals from both branches but mineralisation also appeared to be delimited up dip by Feeder_03. These results support the westward continuity of the high-grade ellipsoid inside TZ2270_860 defined on section 2510mE and establish an averaged dip length of about 90m and thicknesses around 15 to 20m. Moderate to high-grade mineralisation with shorter range continuity was cross cut as predicted in the hanging wall of the intrusive (in several envelopes constituting the previously named Fez Zone). Thinner but relatively consistent mineralisation was encountered as well in the deeper levels (780-850RL) in TZ2290_860. All drill widths reported here are true widths. 4
Figure 2: Cross Section 2430mE Figure 3: Cross Section 2470mE 5
Best drilling results from section 2430mE include: AD221: 5.4m @ 0.57% Sn from 288m; 6m @ 1.04% Sn from 346m; and 6m @ 0.92% Sn from 360m. AD225: 7m @ 0.69% Sn from 296m; 14.2m @ 0.93% Sn from 325m (including 2.0m @ 2.09% Sn from 325m); 14m @ 1.46% Sn from 412m; and 5m @ 0.98% Sn from 432m. AD229: 24m @ 1.08% Sn from 304m (including 2m @ 3.13% Sn from 321m). AD235: 3m @ 1.17% Sn from 210m; 5m @ 0.67% Sn from 234m; 2m @ 1.54% Sn from 302m; and 28m @ 1.26% Sn from 314m (including 3m @ 6.47% Sn from 334m). AD238: 11m @ 0.53% Sn from 332m; and 6m @ 1.75% Sn from 394m (including 2m @ 4.30% Sn from 394m). AD242: 10m @ 1.20% Sn from 332m; and 3m @ 0.82% Sn from 388m. AD243: 5m @ 1.66% Sn from 178m; 7.2m @ 0.56% Sn from 239.8m; 6m @ 0.65% Sn from 264m; and 12m @ 1.11% Sn from 335m. 6
Best results from on section 2470mE include: AD230: 2.2m @ 1.56% Sn from 267m; 29m @ 1.13% Sn from 274m (including 6m @ 1.69% Sn from 280m); 23m @ 1.38% Sn from 316m (including 5m @ 2.96% Sn from 316m); and 5m @ 0.55% Sn from 343m. AD234: 5m @ 0.69% Sn from 386m; 2m @ 1.94% Sn from 427m; and 11m @ 0.57% Sn from 481m. AD237: 22.6m @ 0.79% Sn from 300.4m (including 7m @ 1.23% Sn from 307m); 6m @ 1.12% Sn from 413m; and 6m @ 0.60% Sn from 425m. AD239: 1m @ 4.58% Sn from 378m. AD241: 6m @ 1.12% Sn from 194m; 4m @ 1.17% Sn from 223m; 5m @ 0.78% Sn from 243m; 7m @ 0.88% Sn from 282m; 6.2m @ 0.89% Sn from 294m; 1m @ 3.62% Sn from 304m; 15m @ 1.38% Sn from 313m (including 4m @ 2.63% Sn from 316m); and 4m @ 0.96% Sn from 476m. AD246: 2m @ 1.84% Sn from 152m; and 14m @ 0.86% Sn from 312m (including 2m @ 2.11% Sn from 319m). AD256: 14m @ 0.55% Sn from 320m. 7
Refer to Appendix A for significant assays, Appendix B for drill hole collar summary, Appendix C for Assays and 2012 JORC QA/QC summary. LOOKING FORWARD All the three major drill programs across the Meknes Trend at Achmmach have now been completed. These programs included: 1. The 20m spaced infill of the Gap Zone across 240m of strike length (from 2390mE to 2630mE); 2. The 40m spaced coverage of the Eastern Zone extending the resource (out to 3410mE); and 3. The 40x20m infill of the Eastern Zone Shallow ( EZS ) mineralisation. Approximately 800 drill assays are currently pending from the laboratory. The next Achmmach resource update is on track to be reported in Quarter 3, 2013. Wayne Bramwell Managing Director For further information please visit: Or email: www.kasbahresources.com info@kasbahresources.com ABOUT KASBAH Kasbah currently has two 100% owned tin projects located in the Kingdom of Morocco. A definitive feasibility study ( DFS ) into the development of a 1Mtpa underground mine, concentrator and associated infrastructure at Achmmach is due for completion in Q4, 2013 with Kasbah targeting first tin production in 2015. Toyota Tsusho Corporation ( TTC ) of Japan is Kasbah s strategic development partner in the Achmmach Tin Project. TTC has a right to acquire a 20% interest in the Achmmach Tin Project, having earned a nominal interest of 18.8% to date by paying $16 million in cash to Kasbah in 2012. TTC is required to make a final payment to Kasbah within 90 days of completion of the DFS to earn its 20% interest. Kasbah retains a 100% interest in the Bou El Jaj Tin Project, 10km from its Achmmach Tin Project. 8
COMPETENT PERSONS STATEMENT The information in this report that relates to Exploration Results is based on and fairly represents information and supporting documentation prepared by Mr Pierre Chaponniere, a Competent Person who is a Member of the Australasian Institute of Geoscientists (AIG). Mr Chaponniere is a full-time employee of Kasbah Resources Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Chaponniere consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. FORWARD LOOKING STATEMENTS This announcement may contain forward-looking statements which involve a number of risks and uncertainties. These forward looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this announcement. No obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. 9
APPENDIX A SIGNIFICANT INTERSECTIONS A Hole ID Section ID Collar UTM 30N WGS84 E Collar UTM 30N WGS84 N From (m) To (m) Down-hole interval (m) Tin Grade B Sn % AD221 2430mE 243353 3714783 288 293.4 5.4 0.57 346 352 6 1.04 360 366 6 0.92 AD225 2430mE 243353 3714784 296 303 7 0.69 325 339.15 14.15 0.93 incl. 325 327 2 2.09 412 426 14 1.46 432 437 5 0.98 AD229 2430mE 243352 3714785 304 328 24 1.08 incl. 321 323 2 3.13 AD230 2470mE 243409 3714745 267 269.2 2.2 1.56 274 303 29 1.13 incl. 280 286 6 1.69 316 339 23 1.38 incl. 316 321 5 2.96 343 348 5 0.55 AD234 2470mE 243409 3714744 386 391 5 0.69 427 429 2 1.94 481 492 11 0.57 AD235 2430mE 243352 3714786 210 213 3 1.17 234 239 5 0.67 302 304 2 1.54 314 342 28 1.26 incl. 334 337 3 6.47 AD237 2470mE 243384 3714817 300.4 323 22.6 0.79 incl. 307 314 7 1.23 413 419 6 1.12 425 431 6 0.60 AD238 2430mE 243372 3714736 332 343 11 0.53 394 400 6 1.75 incl. 394 396 2 4.30 AD239 2470mE 243410 3714745 378 379 1 4.58 AD241 2470mE 243384 3714817 194 200 6 1.12 223 227 4 1.17 243 248 5 0.78 282 289 7 0.88 294 300.2 6.2 0.89 304 305 1 3.62 10
Hole ID Section ID Collar UTM 30N WGS84 E Collar UTM 30N WGS84 N From (m) To (m) Down-hole interval (m) Tin Grade B Sn % 313 328 15 1.38 incl. 316 320 4 2.63 476 480 4 0.96 AD242 2430mE 243371 3714736 332 342 10 1.20 388 391 3 0.82 AD243 2430mE 243351 3714783 178 183 5 1.66 239.8 247 7.2 0.56 264 270 6 0.65 335 347 12 1.11 AD246 2470mE 243384 3714817 152 154 2 1.84 312 326 14 0.86 incl. 319 321 2 2.11 AD256 2470mE 243384 3714818 320 334 14 0.55 A Significant intersection criteria >100m below natural surface selection criteria: 0.5% Sn and 5m down-hole and 3m down-hole < 0.5% Sn included; or 0.5% Sn and 2.5 %Tin-metres metal accumulation down-hole and 3m down-hole consecutive < 0.5% Sn included. <100m below natural surface selection criteria: 0.3% Sn and 3m down-hole and 3m down-hole < 0.3% Sn included; or 0.3% Sn and 1.5 %Tin-metres metal accumulation down-hole and 3m down-hole consecutive < 0.3% Sn included. B grades adjusted for recovery. 11
APPENDIX B - DRILL-HOLE COLLAR DETAILS Hole ID Collar UTM 30N WGS84 N Collar UTM 30N WGS84 E RL (m) Azimuth TRUE Dip Depth AD221 243353 3714783 1157 161.0-58 468.0 AD225 243353 3714784 1157 161.5-62 440.3 AD229 243352 3714785 1157 162.0-66 532.7 AD230 243409 3714745 1182 162.0-68 440.0 AD234 243409 3714744 1182 161.0-64 503.5 AD235 243352 3714786 1157 161.0-71 489.0 AD237 243384 3714817 1149 162.0-58 494.6 AD238 243372 3714736 1181 162.5-62 427.7 AD239 243410 3714745 1182 163.0-60 406.0 AD241 243384 3714817 1150 163.0-62 551.0 AD242 243371 3714736 1180 162.5-57 414.0 AD243 243351 3714783 1158 159.0-76 413.5 AD246 243384 3714817 1150 163.0-68 455.5 AD256 243384 3714818 1150 160.5-68 548.5 APPENDIX C - ASSAY DATA Drill Hole From (m) To (m) Sample Width Tin Grade B Sn% AD221 288.00 289.00 1.00 0.64 289.00 290.00 1.00 0.60 290.00 291.00 1.00 0.24 291.00 292.00 1.00 0.57 292.00 292.90 0.90 0.80 292.90 293.40 0.50 0.61 346.00 347.00 1.00 0.83 347.00 348.00 1.00 0.22 348.00 349.00 1.00 0.33 349.00 350.00 1.00 0.50 350.00 351.30 1.30 2.96 351.30 352.00 0.70 0.76 360.00 361.00 1.00 0.48 361.00 362.00 1.00 0.64 362.00 363.00 1.00 0.92 363.00 364.00 1.00 1.31 12
Drill Hole From (m) To (m) Sample Width Tin Grade B Sn% 364.00 365.00 1.00 1.39 365.00 366.00 1.00 0.79 AD225 296.00 297.00 1.00 0.61 297.00 297.60 0.60 0.35 297.60 298.80 1.20 0.32 298.80 300.00 1.20 1.83 300.00 301.00 1.00 0.54 301.00 302.00 1.00 0.31 302.00 303.00 1.00 0.62 325.00 326.00 1.00 2.28 326.00 327.00 1.00 1.90 327.00 328.00 1.00 0.46 328.00 329.00 1.00 0.47 329.00 330.00 1.00 0.97 330.00 331.00 1.00 0.47 331.00 332.00 1.00 0.82 332.00 333.00 1.00 0.89 333.00 334.00 1.00 0.24 334.00 335.00 1.00 1.07 335.00 336.00 1.00 1.30 336.00 337.00 1.00 0.44 337.00 338.00 1.00 0.45 338.00 339.15 1.15 1.20 412.00 413.00 1.00 0.61 413.00 414.00 1.00 1.37 414.00 415.00 1.00 7.62 415.00 416.00 1.00 0.25 416.00 417.00 1.00 0.45 417.00 418.00 1.00 0.59 418.00 419.00 1.00 0.33 419.00 420.00 1.00 0.65 420.00 421.00 1.00 2.09 421.00 422.00 1.00 3.09 422.00 423.00 1.00 1.74 423.00 424.00 1.00 0.57 424.00 425.00 1.00 0.25 425.00 426.00 1.00 0.87 432.00 433.00 1.00 1.14 433.00 434.00 1.00 1.89 434.00 435.00 1.00 0.37 435.00 436.00 1.00 0.42 13
Drill Hole From (m) To (m) Sample Width Tin Grade B Sn% 436.00 437.00 1.00 1.62 AD229 304.00 305.00 1.00 0.84 305.00 306.00 1.00 0.17 306.00 307.00 1.00 0.27 307.00 307.60 0.60 1.01 307.60 309.00 1.40 2.48 309.00 310.00 1.00 1.05 310.00 311.00 1.00 1.25 311.00 312.00 1.00 0.33 312.00 313.00 1.00 0.40 313.00 314.00 1.00 1.40 314.00 315.00 1.00 1.61 315.00 316.00 1.00 2.16 316.00 317.00 1.00 0.77 317.00 318.00 1.00 0.99 318.00 319.00 1.00 1.10 319.00 320.00 1.00 0.21 320.00 321.00 1.00 0.40 321.00 322.00 1.00 1.65 322.00 323.00 1.00 4.63 323.00 324.00 1.00 0.69 324.00 325.00 1.00 0.36 325.00 326.00 1.00 0.48 326.00 327.00 1.00 0.46 327.00 328.00 1.00 0.66 AD230 267.00 268.00 1.00 2.54 268.00 268.50 0.50 0.66 268.50 269.20 0.70 0.82 274.00 275.00 1.00 4.01 275.00 276.00 1.00 0.13 276.00 277.00 1.00 0.40 277.00 278.00 1.00 1.03 278.00 279.00 1.00 1.29 279.00 280.00 1.00 0.73 280.00 281.00 1.00 2.17 281.00 282.00 1.00 1.62 282.00 283.00 1.00 0.73 283.00 284.00 1.00 0.58 284.00 285.00 1.00 1.01 285.00 286.00 1.00 4.07 286.00 287.00 1.00 0.29 14
Drill Hole From (m) To (m) Sample Width Tin Grade B Sn% 287.00 288.00 1.00 0.63 288.00 289.00 1.00 0.28 289.00 290.00 1.00 0.62 290.00 291.00 1.00 0.59 291.00 292.00 1.00 0.43 292.00 293.00 1.00 0.12 293.00 294.00 1.00 0.89 294.00 295.00 1.00 0.20 295.00 296.00 1.00 2.10 296.00 297.00 1.00 0.34 297.00 298.00 1.00 1.34 298.00 299.00 1.00 0.98 299.00 300.00 1.00 1.39 300.00 301.00 1.00 1.78 301.00 302.00 1.00 2.43 302.00 303.00 1.00 0.70 316.00 317.00 1.00 2.77 317.00 318.00 1.00 1.21 318.00 319.00 1.00 2.20 319.00 320.00 1.00 3.28 320.00 321.00 1.00 5.35 321.00 322.00 1.00 0.65 322.00 323.00 1.00 0.84 323.00 324.00 1.00 1.20 324.00 325.00 1.00 1.03 325.00 326.00 1.00 0.49 326.00 327.00 1.00 0.82 327.00 328.00 1.00 0.17 328.00 329.00 1.00 0.97 329.00 330.00 1.00 0.47 330.00 331.00 1.00 1.11 331.00 332.00 1.00 0.36 332.00 333.00 1.00 0.36 333.00 334.00 1.00 0.64 334.00 335.00 1.00 2.43 335.00 336.00 1.00 1.44 336.00 337.00 1.00 1.16 337.00 338.00 1.00 2.14 338.00 339.00 1.00 0.66 343.00 344.00 1.00 1.01 344.00 345.00 1.00 0.41 15
Drill Hole From (m) To (m) Sample Width Tin Grade B Sn% 345.00 346.00 1.00 0.06 346.00 347.00 1.00 0.74 347.00 348.00 1.00 0.55 AD234 386.00 387.00 1.00 0.48 387.00 388.00 1.00 1.18 388.00 389.00 1.00 0.52 389.00 390.00 1.00 0.63 390.00 391.00 1.00 0.64 427.00 428.00 1.00 2.66 428.00 429.00 1.00 1.22 481.00 482.00 1.00 1.11 482.00 483.00 1.00 0.13 483.00 484.00 1.00 0.27 484.00 485.00 1.00 0.08 485.00 486.00 1.00 0.82 486.00 487.00 1.00 0.26 487.00 488.00 1.00 0.26 488.00 489.00 1.00 0.81 489.00 490.00 1.00 0.83 490.00 491.00 1.00 0.73 491.00 492.00 1.00 0.96 AD235 210.00 211.00 1.00 1.86 211.00 212.00 1.00 0.70 212.00 213.00 1.00 0.95 234.00 235.00 1.00 1.33 235.00 236.00 1.00 0.60 236.00 237.00 1.00 0.51 237.00 238.00 1.00 0.43 238.00 239.00 1.00 0.50 302.00 303.00 1.00 1.90 303.00 304.00 1.00 1.17 314.00 315.00 1.00 0.50 315.00 316.00 1.00 0.25 316.00 317.00 1.00 1.02 317.00 318.00 1.00 0.95 318.00 319.00 1.00 0.42 319.00 320.00 1.00 0.28 320.00 321.00 1.00 0.34 321.00 322.00 1.00 1.01 322.00 323.00 1.00 0.84 323.00 324.00 1.00 0.82 16
Drill Hole From (m) To (m) Sample Width Tin Grade B Sn% 324.00 325.00 1.00 1.23 325.00 326.00 1.00 0.19 326.00 327.00 1.00 0.87 327.00 328.00 1.00 0.27 328.00 329.00 1.00 1.25 329.00 330.00 1.00 0.41 330.00 331.00 1.00 0.41 331.00 332.00 1.00 0.38 332.00 333.00 1.00 0.71 333.00 334.00 1.00 0.53 334.00 335.00 1.00 4.06 335.00 336.00 1.00 13.75 336.00 337.00 1.00 1.61 337.00 338.00 1.00 0.83 338.00 339.00 1.00 0.69 339.00 340.00 1.00 0.40 340.00 341.00 1.00 0.79 341.00 342.00 1.00 0.52 AD237 300.40 301.10 0.70 3.71 301.10 302.00 0.90 0.35 302.00 303.00 1.00 0.30 303.00 304.00 1.00 1.04 304.00 305.00 1.00 0.29 305.00 306.00 1.00 0.63 306.00 307.00 1.00 0.17 307.00 308.00 1.00 1.82 308.00 309.00 1.00 0.82 309.00 310.00 1.00 2.16 310.00 311.00 1.00 0.58 311.00 312.00 1.00 0.78 312.00 313.00 1.00 1.33 313.00 314.00 1.00 1.11 314.00 315.00 1.00 0.70 315.00 316.00 1.00 0.46 316.00 317.00 1.00 0.68 317.00 318.00 1.00 0.36 318.00 319.00 1.00 0.18 319.00 320.00 1.00 0.56 320.00 321.00 1.00 0.26 321.00 322.00 1.00 0.12 322.00 323.00 1.00 0.73 17
Drill Hole From (m) To (m) Sample Width Tin Grade B Sn% 413.00 414.00 1.00 1.00 414.00 415.00 1.00 2.81 415.00 416.00 1.00 1.01 416.00 417.00 1.00 0.41 417.00 418.00 1.00 0.91 418.00 419.00 1.00 0.60 425.00 426.00 1.00 0.49 426.00 427.00 1.00 0.18 427.00 428.00 1.00 0.14 428.00 429.00 1.00 1.63 429.00 430.00 1.00 0.54 430.00 431.00 1.00 0.64 AD238 332.00 333.00 1.00 0.83 333.00 334.00 1.00 0.39 334.00 335.00 1.00 0.15 335.00 336.00 1.00 0.68 336.00 337.00 1.00 0.70 337.00 338.00 1.00 0.12 338.00 339.00 1.00 0.69 339.00 340.00 1.00 0.47 340.00 341.00 1.00 0.51 341.00 342.00 1.00 0.71 342.00 343.00 1.00 0.61 394.00 395.00 1.00 6.01 395.00 396.00 1.00 2.58 396.00 397.00 1.00 0.27 397.00 398.00 1.00 0.31 398.00 399.00 1.00 0.52 399.00 400.00 1.00 0.85 AD239 378.00 379.00 1.00 4.58 AD241 194.00 195.00 1.00 1.53 195.00 196.00 1.00 0.46 196.00 197.00 1.00 1.28 197.00 198.00 1.00 0.70 198.00 199.00 1.00 1.43 199.00 200.00 1.00 1.33 223.00 224.00 1.00 0.73 224.00 225.00 1.00 2.51 225.00 226.00 1.00 0.67 226.00 227.00 1.00 0.56 243.00 244.00 1.00 1.09 18
Drill Hole From (m) To (m) Sample Width Tin Grade B Sn% 244.00 245.20 1.20 0.05 245.20 246.00 0.80 0.03 246.00 247.00 1.00 2.02 247.00 248.00 1.00 0.72 282.00 283.00 1.00 0.47 283.00 284.00 1.00 0.78 284.00 285.00 1.00 0.99 285.00 286.00 1.00 1.01 286.00 287.00 1.00 0.29 287.00 288.00 1.00 1.30 288.00 289.00 1.00 1.32 294.00 295.00 1.00 0.80 295.00 296.00 1.00 0.31 296.00 297.00 1.00 0.10 297.00 298.00 1.00 0.99 298.00 299.00 1.00 2.69 299.00 300.15 1.15 0.50 304.00 305.00 1.00 3.62 313.00 314.00 1.00 0.51 314.00 315.00 1.00 0.76 315.00 316.00 1.00 0.51 316.00 317.00 1.00 4.10 317.00 318.10 1.10 1.15 318.10 319.00 0.90 1.85 319.00 320.00 1.00 3.62 320.00 321.00 1.00 1.18 321.00 321.75 0.75 0.86 321.75 323.00 1.25 0.54 323.00 324.00 1.00 0.90 324.00 325.00 1.00 0.60 325.00 326.00 1.00 2.08 326.00 327.00 1.00 1.78 327.00 328.00 1.00 0.58 476.00 477.00 1.00 0.71 477.00 478.00 1.00 0.61 478.00 479.00 1.00 0.51 479.00 480.00 1.00 2.00 AD242 332.00 333.00 1.00 0.57 333.00 334.00 1.00 0.24 334.00 335.00 1.00 2.01 335.00 336.00 1.00 1.25 19
Drill Hole From (m) To (m) Sample Width Tin Grade B Sn% 336.00 337.00 1.00 1.10 337.00 338.00 1.00 0.33 338.00 339.00 1.00 1.53 339.00 340.00 1.00 2.88 340.00 341.00 1.00 1.39 341.00 342.00 1.00 0.76 388.00 389.00 1.00 0.93 389.00 390.00 1.00 0.74 390.00 391.00 1.00 0.81 AD243 178.00 179.00 1.00 2.62 179.00 180.00 1.00 1.31 180.00 181.00 1.00 1.63 181.00 182.00 1.00 1.15 182.00 183.00 1.00 1.59 239.80 241.00 1.20 0.93 241.00 242.50 1.50 0.50 242.50 243.50 1.00 0.14 243.50 244.50 1.00 0.30 244.50 245.90 1.40 0.83 245.90 247.00 1.10 0.51 264.00 265.00 1.00 0.53 265.00 266.00 1.00 0.04 266.00 267.00 1.00 1.45 267.00 268.00 1.00 0.26 268.00 269.00 1.00 0.69 269.00 270.00 1.00 0.93 335.00 336.00 1.00 1.10 336.00 337.00 1.00 1.29 337.00 338.00 1.00 1.78 338.00 339.00 1.00 0.87 339.00 340.00 1.00 0.97 340.00 341.00 1.00 2.87 341.00 342.00 1.00 0.92 342.00 343.00 1.00 1.57 343.00 344.00 1.00 0.29 344.00 345.00 1.00 0.60 345.00 346.00 1.00 0.52 346.00 347.00 1.00 0.52 AD246 152.00 153.00 1.00 0.77 153.00 154.00 1.00 2.91 312.00 313.00 1.00 0.60 20
Drill Hole From (m) To (m) Sample Width Tin Grade B Sn% 313.00 314.00 1.00 0.92 314.00 315.00 1.00 0.65 315.00 316.00 1.00 0.14 316.00 317.00 1.00 0.73 317.00 318.00 1.00 0.67 318.00 319.00 1.00 0.34 319.00 320.00 1.00 1.77 320.00 321.00 1.00 2.46 321.00 322.00 1.00 0.47 322.00 323.00 1.00 0.49 323.00 324.00 1.00 1.11 324.00 325.00 1.00 0.85 325.00 326.00 1.00 0.87 AD256 320.00 321.00 1.00 0.59 321.00 321.70 0.70 0.22 321.70 323.00 1.30 0.21 323.00 324.00 1.00 1.28 324.00 325.00 1.00 0.57 325.00 326.00 1.00 0.19 326.00 327.00 1.00 0.69 327.00 328.00 1.00 0.43 328.00 329.00 1.00 0.26 329.00 330.00 1.00 0.24 330.00 331.30 1.30 1.63 331.30 332.00 0.70 0.42 332.00 333.00 1.00 0.11 333.00 334.00 1.00 0.54 B grades adjusted for recovery 21
JORC TABLE 1 Section 1: Sampling Techniques & Data Criteria Explanation Commentary Sampling techniques Drilling techniques Drill sample recovery 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. 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. The Achmmach Tin Project was entirely sampled using Diamond Drilling (DD). Sample diameters vary from PQ, HQ and NQ depending on the depth. A total of 293 DD holes were drilled for 105,193m achieving a section spacing of 60m, 40m and 20m depending on the area of the deposit. Sample representivity was ensured by: - locating collar using Differential GPS or Total Station with sub meter vertical and horizontal accuracy; - using Diamond Drilling to obtain high quality core samples that were exhaustively logged for lithology, alteration, mineralization, density, weathering and structural attributes; and - sampling half core on nominal 1m intervals using industry best practice protocols and QAQC procedures Each sample is analysed with a handheld Niton XRF analyser and anomalous samples are submitted to ALS laboratory for more precise analysis. Diamond core PQ, HQ or NQ size were sampled on a nominal 1m interval, cut by Kasbah into half core with automatic core saw, dried, crushed to 80% passing 200 microns to produce a 250g sample and dispatched to ALS laboratory. Sample was subsequently pulverised to 85% passing 75 microns to produce a 25g charge. Tin was assayed using fused bead preparations with XRF determination. Diamond Drilling with core diameter varying from PQ, HQ and NQ. To maximize recovery in weathered ground, triple tube was used, mostly in HQ3 and NQ3. Hole depths range from 13m to 630m. Orientation of core has been performed using the Eazymark and the ACT tool methods. DD recoveries were measured and captured in the database from AD149. Prior to AD149 recovery by run (part of the geotechnical logging) was used to assess sample recovery. Triple tube was used to maximize core recovery in weathered or broken ground. Drillers reduced core runs to sub meter intervals in difficult ground conditions. Logging depths were checked against core blocks and rod counts were routinely carried out by drillers and upon the geologist request. 22
Criteria Explanation Commentary Logging Sub-sampling techniques and sample preparation 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. 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. 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. Released intercepts and assay values are adjusted for recovery with the formula: - Lab assay value x sample recovery = Corrected assay value; and - As core samples are conservative and in situ samples, it is expected that sample bias due to preferential loss / gain of fine / coarse material is negligible. Geological and geotechnical logging was carried on all core produced. Lithology, alteration, mineralization, weathering and structures were all recorded. Geotechnical logging was also completed according to industry best practice. Logging was entered directly into a self-validated template and resulting tables were uploaded into a GBIS database post validation. Logging of diamond core recorded both qualitative and quantitative parameters. Lithology, alteration, weathering, mineralization, structural and geotechnical logs collect both quantitative and qualitative fields. Diamond core was stored in clearly labelled core trays and photographed after mark up, before sampling with both Dry and Wet photos recorded. All drill holes were logged from start to end of hole. Core was cut in half onsite by Kasbah initially using manual core saw and later automatic core saw. Samples were collected from the same side of the core. Only core samples. The sample preparation of diamond core is considered adequate as per industry best practice involving onsite core samples collection, weighting and drying. Prior to AD100, half core samples were sent to ALS laboratory for crushing and pulverizing. From drill hole AD100, crushing and splitting of half core samples was achieved onsite. 80% of sampled crushed material passing 200 microns and splitting using a rotary splitter to obtain a 250g sample. Samples were subsequently dispatched to ALS laboratories for pulverizing to 85% passing 75 microns. QC procedures involve the use of Certified Reference Material as assay standards along with blanks, field duplicates, coarse reject duplicates and pulp duplicates. The insertion rate of these averaged 1:7. In addition, 3% of pulp duplicates have been analysed externally by an independent laboratory or umpire laboratory. A selection of 114 samples HQ and NQ diameter were chosen for second half core sampling. Statistical analysis of these field duplicates shows a very high level of repeatability and a lack of bias between original and duplicate sample data. 23
Criteria Explanation Commentary Quality of assay data and laboratory tests Verification of sampling and assaying 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. 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. The sample sizes are on average 1m intervals and vary from PQ, HQ or NQ diameter. This size is considered appropriate to the grain size of the material being sampled to correctly represent the tin mineralization at Achmmach. Kasbah tin assays were determined using fused bead X-Ray Fluorescence (XRF) which is the current industry standard for tin. This assay technique is considered total as it extracts and measures the entire element contained within the sample. No geophysical tools were used to determine any element concentrations used in the resource estimate. A Thermo Scientific Niton handheld XRF XL3t analyser was used as a complementary help to identify core intervals to be assayed. Internal laboratory QAQC involved the use of various Certified Reference Materials as assay standards along with pulp duplicate. For the entire drilling program, Kasbah regularly inserted Certified Reference Material independently having a range of values from 0.2 to 1.05%Sn at a rate of 1:20. Once sample preparation was achieved onsite (from AD100), Kasbah regularly inserted: - coarse reject duplicates at a rate of 1:25; and - blanks at a rate of 1:50. In addition, 3% of pulp duplicates have been analysed externally by an independent laboratory or umpire laboratory. Duplicate and standard statistical analysis demonstrates the data to be reliable and unbiased. All significant intercepts are reviewed and confirmed by at least three senior personnel before release to the market. No twinned holes have been drilled at Achmmach to date. Data is collected by qualified geologists and entered into spread sheets with pre-determined lookup fields. The spread sheets are locked and have validation rules attached in order to limit potential data entry errors. After entry and validation, data is being imported via a GBIS frontend onto a SQL server database. The import process also includes a validation step. Data is stored on a server located in a locked room on site and replicated to the Perth Office. Backups are also regularly made. Regular data validation reviews are being conducted by Kasbah supervisors and audited prior to Resource Estimation. No adjustments or calibration are made to the raw assay data. Data is imported directly onto the database in raw original format. 24
Criteria Explanation Commentary Location of data points Data spacing and distribution Orientation of data in relation to geological structure 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. 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. Drill hole collars were set out using hand-held GPS or by offset from nearby previously drilled holes. The final drill hole collar coordinates were established by a licensed contract surveyor, using either a Trimble Differential GPS or a total station TopCon when tree cover was too thick. Sub-meter accuracy horizontally and vertically is expected from the surveying equipment used. Quality Control collar location checks were routinely inserted at each survey campaign in order to monitor accuracy and consistency of the equipment at a rate of 1:10. Down hole surveys were conducted using Single shot Reflex and multi-shot Reflex cameras depending on the drilling contractor. Down hole survey shots were taken every 50m prior to AD097 and at 25m intervals ever since. Coordinate system is UTM 30N and datum is WGS84. A Local grid was introduced locally over the Achmmach Tin Project with the Easting axis parallel to the overall tin mineralization. The Local grid is rotated 20deg anticlockwise from the UTM system. The Digital Elevation Model of the Achmmach Tin Project used in Resource Estimation was derived from a stereo image pair of a GeoEye-1 acquisition from December 2011. 1m vertical accuracy is expected from the dataset. Drill spacing is variable. Drill sections are 60m, 40m or 20m spaced (Easting) depending on the area of the deposit. Multiple holes are drilled from the same drill pad in a fan configuration leading to various pierce point spacing. It is the opinion of the Competent Person that mineralized envelopes have sufficiently demonstrated geological and grade continuity to support the definition of Mineral Resource and Ore Reserve as defined in the 2012 JORC Code. For mineral resource estimation purpose, grades have been estimated on 1m composited assay data. Sample compositing was not applied to interval calculations reported to the market. Reported intercepts were calculated as per industry best practice. Early drilling from the south flank of the Achmmach hill would have intercepted the mineralized structures at an acute angle. But in general, the orientation of the drill program has been designed to intersect tourmaline structures perpendicularly or nearly perpendicular. No orientation sampling bias has been identified in the data at this stage. 25
Criteria Explanation Commentary Sample security Audits or reviews The measures taken to ensure sample security. The results of any audits or reviews of sampling techniques and data. Chain of custody is managed by Kasbah from the site up to Meknes. From there a local transport company, SDTM, is responsible to deliver the samples to DSV in Casablanca. From Casablanca, DSV is responsible to clear and air freight samples to ALS laboratory. Sample bags and drums are sealed with security tags for transport. Sample data review was carried out by: - Carras as part of the 2008 Resource Estimate; - QG as part of the 2010 Resource Estimate; - MiningOne as part of the 2012 Resource Estimate; and - QG as part of the 2013 Resource Estimate. At each step, the database was considered to be sufficient quality and reliability to carry out resource estimation. JORC TABLE 2 Section 2: Reporting of Exploration Results Criteria 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 license to operate in the area. Acknowledgment and appraisal of exploration by other parties. Mining permits - PE2912 and PE 193172 are both 100% owned by Kasbah s Moroccan subsidiary Kasbah Gold Sarlau. Toyota Tsusho Corporation has a right to acquire 20% interest in these permits through a Joint Venture. Signed agreements with the Moroccan Administration. The permits are in good standing and there are no known impediments. ONHYM completed 14,128m of diamond drilling prior to Kasbah commencing operations. Geology Deposit type, geological setting and style of mineralisation. Primary tin deposit, cassiterite dominant. 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: 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. In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. As per tables in Appendices A and B in body of text. N/A As per Tables in Appendices A and C in body of text. 26
Criteria Explanation Commentary 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. Relationship between mineralization widths and intercept lengths The assumptions used for any reporting of metal equivalent values should be clearly stated. 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 ). N/A Drill widths are true widths. Refer images. Drill widths are true widths. 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. Refer to Figures 1, 2, and 3 in body of text. Balanced reporting Other Substantive exploration data Further work 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 (e.g. tests for lateral extensions or depth extensions or large-scale stepout 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. Refer to Appendix C in body of text. N/A Resource Update scheduled for Quarter 3, 2013. Refer images. 27