MANTLE MINING ASX: MNM & MNMOA DIRECTORS Mr Martin Blakeman Non-Executive Chairman Mr Ian Kraemer Managing Director Mr Peter Anderton Non-Executive Director Mr Stephen de Belle Non-Executive Director COMPANY SECRETARY Mr Winton Willesee PRINCIPAL PLACE OF BUSINESS AND REGISTERED OFFICE Suite 25, 145 Stirling Highway Nedlands, WA 6009 CONTACT DETAILS Website: www.mantlemining.com Email: admin@mantlemining.com ph: + 61 (8) 9389 3130 fax: + 61 (8) 9389 3199 P.O. Box 3144 Nedlands, WA 6009 ASX Release 26 November 2012 High Grade Gold at Coronation Mantle Mining Corporation Limited (ASX: MNM) Mantle, is pleased to advise that laboratory results from drilling at the Coronation prospect have been received for the company s 100% owned Granite Castle Gold and Silver Project in North Queensland and have yielded very exciting high grade gold, silver and zinc with copper and lead intercepts: Highlights: The Granite Castle Project is Mantle s most advanced gold project. It contains a large swarm of gold-silver mineralized shears including a JORC Code Compliant Resource 1 (last page for details) in a 600 metre portion of one shear (Figure 1). The best intercept was in drill hole GCRC 596 targeting a major Induced Polarisation (IP) anomaly (Figures 2 and 3) and returned 3m @ 10.9 g/t gold and 153 g/t silver from 149m downhole, including 1m @ 24.9 g/t gold and 230 g/t silver (Figure 4 and Table 1). Nearby holes also intercepted good grades. Drill hole GCRC 591 intercepted 1m @ 5.2 g/t gold from 23m downhole and 3m @ 2.3 g/t gold from 43m downhole including 1m @ 6.4 g/t gold. Drill hole GCRC 593 intercepted 1m @7.4 g/t gold from 58m downhole, 1m @ 9.1 g/t gold from 96m and 2m @ 2.3 g/t gold, 2.2% zinc, 750ppm copper and 4580 ppm lead from 141m (Figure 4 and Table 1). Pleasingly, these intercepts correlate extremely well with historic rock chip sample and drilling results that range from 5 to 25 g/t gold from surface to 120m deep. The shear remains open to depth and along strike (Figure 5). More pleasing is that the IP data also directly correlates with the Granite Castle JORC which contains 79,000oz gold and 1.5million oz silver in a 600m length of the shear and down to 130m vertical depth. The Granite Castle shear has been drilled down to 300m and a prior JORC resource of 167,000 oz gold to that depth was downgraded in 2008 when Mantle redid the JORC base to new modern compliance levels. However more deep drilling is expected to return that JORC to the full 167,000 oz gold level. It appears, from this latest drilling and the IP data (Figure 2), that the Coronation shear could be a larger and richer structure than the Granite Castle shear thereby leading to the conclusion that more drilling to JORC compliance spacings next year could yield a doubling, or even quadrupling of the JORC compliant resource base at the Granite Castle project. Significantly both shears remain open at depth, and there remain others yet to be tested to equivalent levels. Mantle would also like to advise that it is currently preparing an application for upgrade to a Mineral Development Licence (MDL) at the Granite Castle project. As part of that work, the company intends to undertake a scoping study of development options and appropriate next steps for further drilling and pre-feasibility work. Further information: Ian Kraemer Mantle Mining 0407 758 722 Page 1 of 8
Final laboratory analytical results have now been received for outstanding drillholes completed along the Coronation Shear and at the Davron and Telstra Tower prospects. A total of 22 drillholes have been completed on the Coronation Structures for 2079 metres; 2 holes (GCRC584, 585) at the Davron Prospect for 139 metres, and 2 holes (GCRC 586, 587) at the Telstra Tower prospect for 144 metres. The location of the drilling relative to the Granite Castle JORC resource is illustrated in Figure 1. Strong IP anomalies were identified on both the Granite Castle and Coronation shears, Figure 2. Figure 3 shows the locations of the 3 IP lines that were completed. Figure 1: Granite Castle (EPM 14179) project location and main target areas. Figure 2: Induced Polarisation (IP) section with Granite Castle JORC and Coronation target shears. Page 2 of 8
Final drillhole locations and hole depths relative to the surface shear traces are shown in Figure 4, and historical drilling in Figure 5. Significant gold and silver analyses collated from the laboratory analytical results are presented in Table 1. Significant high grade gold values have been obtained from the eastern end of the Coronation shear system. GCRC 596 targeted a major Induced Polarisation (IP) anomaly (Figures 2 and 3) and returned 3m @ 10.0 g/t gold and 153ppm silver from 149m downhole; including a 1m @ 24.9 g/t gold and 230 ppm silver. GCRC 596 was a deep drillhole specifically designed to target an IP geophysical target identified druring an IP survey undertaken by Mantle in 2007. Figure 3: Location of IP lines. Holes adjacent to GCRC 596 have also intercepted good grades and the presence of at least two mineralised structure is demonstrated. Drill hole GCRC 591 intercepted 1m @ 5.2 g/t gold from 23m downhole and 3m @ 2.3 g/t gold from 43m, including 1m @ 6.4 g/t gold. Drill hole GCRC 593 intercepted 1m @7.4 g/t gold from 58m downhole, 1m @ 9.1 g/t gold from 96m and 2m @ 2.3 g/t gold, 2.2% zinc, 750ppm copper and 4580 ppm lead from 141m (Figure 4 and Table 1). Drillhole collars GCRC 596 and GCRC 593 are 237 metres apart. This mineralisation remains open along strike and at depth and shall be a priority for follow-up step-out drilling. Drillholes completed to the west along the Coronation structure have confirmed mineralisation along the entire length, although not of the tenure of that intersected at the eastern portion. However, relative to the eastern portion the remainder of the Coronation has not been tested to equivalent depths Drillholes GCRC 576 and GCRC 572 at the western end of drilling on the Coronation structure have returned 1m @ 1.65 g/t gold and 5.1 ppm silver from 16m and 1m @ 1.3. g/t gold and 40.4 ppm silver from 18m, respectively. Page 3 of 8
Figure 4: Drill hole locations and (inclined) depths. Figure 5: Coronation shear historic drill hole intercepts. Page 4 of 8
It appears, from this latest drilling and the IP data (Figure 2), that the Coronation shear could be a larger and richer structure than the Granite Castle shear thereby leading to the conclusion that more drilling to JORC compliance spacings next year could yield a doubling, or even quadrupling of the JORC compliant resource base at the Granite Castle project. Significantly both shears remain open at depth, and there remain others yet to be tested to equivalent levels. GRANITE CASTLE PROJECT DRILLING 2012 - Analytical Summary Au/Ag Drill Hole Coordinates Significant Intersections 0.2 g/t Au Significant Intersections 1.0 g/t Au MGA94 N MGA94 E Set up Depth M M Dip/Azi (grid) M GCRC571 7777922 258491-50/197 45 23-24m 1m @ 0.32 g/t Au GCRC572 7777928 258491-60/197 70 30-33m 3m@0.30 g/t Au 18-19m 1m@1.31 g/t Au, 40.4 ppm Ag GCRC573 7777884 258567-50/197 72 1-2m 1m@ 0.2 g/t Au 33-36m 1m@0.87 g/t Au GCRC574 7777892 258566-60/197 102 15-17m 2m@0.26 g/t Au, 3.1ppm Ag 57-58m 1m@0.49 g/t Au, 2ppm Ag 82-82m 1m@0.21 g/t Au, 7.7 ppm Ag GCRC575 7777868 258640-50/197 78 63-64m 1m@0.23 g/t Au, 1 ppm Ag GCRC576 7777874 258643-60/197 102 16-17m 1m@1.65 g/t Au, 5.1 ppm Ag GCRC577 7777863 258723-50/197 48 19-20m 1m@1.07 g/t Au, 19.2 ppm Ag GCRC578 7777867 258725-60/197 78 22-25m 3m @0.68, 4.8 ppm Ag 24-25m 1m@1.26 g/t Au, 3.9 ppm Ag GCRC579 7777832 258816-50/197 54 24-26m 2m@0.38 g/t Au, 9.2 ppm Ag 27-29m 2m@0.66 g/t Au, 12.1 ppm Ag GCRC580 7777837 258814-60/197 72 30-33m 3m@0.44 g/t Au, 1.6 ppm Ag GCRC581 7778051 258902-60/215 70 10-11m 1m@0.28 g/t Au, 3.6 ppm Ag GCRC582 7777734 259004-60/197 66 GCRC583 7777741 259007-60/197 84 47-48m 1m@0.21 g/t Au GCRC584 7778530 259259-60/230 69 GCRC585 7778564 259235-60/230 70 GCRC586 7778036 259521-60/180 72 48-49m 1m@0.26 g/t Au 28-29m 1m@1.1 g/t Au, 29.8 ppm Ag GCRC587 7778056 259448-60/205 72 37-39m 2m@0.25 g/t Au, 6.2 ppm Ag 60-62m 2m@0.31 g/t Au, 6.3 ppm Ag GCRC588 7777712 259563-60/200 72 26-28m 2m@0.5 g/t Au, 11.5 ppm Ag 34-36m 2m@0.5 g/t Au, 2.5 ppm Ag 40-41m 1m@0.2 g/t Au, 1.4 ppm Ag GCRC589 7777782 259408-60/230 70 15-16m 1m@0.66 g/t Au, 1.5 ppm Ag 4-5m 1m@1.37 g/t Au, 1.9 ppm Ag GCRC590 7777868 259428-60/000 75 GCRC591 7777636 259260-50/197 54 23-24m 1m@5.18 g/t Au, 21.3 ppm Ag 43-46 3m@2.32 g/t Au, 6.33 ppm Ag includes: 44-45m 1m@6.37 g/t Au GCRC592 7777644 259262-60/197 78 64-66m 2m@0.53 g/t Au, 12.3 ppm Ag GCRC593 7777690 295195-60/206 180 116-117m 1m@0.66 g/t Au, 7.5 ppm Ag 58-59m 1m@7.41 g/t Au, 1.9 ppm Ag 96-97m 1m@9.1 g/t Au, 2.5 ppm Ag 115-116 1m@1.3 g/t Au, 1.5 ppm Ag 141-143m 2m@2.3 g/t Au, 32.3 ppm Ag GCRC594 7777831 259218-52/190 234 34-35m 1m@0.61 g/t Au, 16.6 ppm Ag 163-165m 2m@0.34 g/t Au, 0.6 ppm Ag GCRC595 7777785 259049-58/190 160 15-16m 1m@1.9 g/t Au, 19.1 Ag GCRC596 7777652 259432-58/190 215 188-189m 1m@0.25 g/t Au 86-88m 2m@1.05 g/t Au, 34.6 ppm Ag 149-152m 3m@10.99 g/t Au, 153ppm Ag includes: 150-151m 1m@24.9 g/t Au, 230ppm Ag Total (m) 2362 Table 1: Granite Castle Project Coronation target area, best results. Page 5 of 8
Background on the Granite Castle Gold and Silver Project The Granite Castle Gold Project is located 260km west of Townsville and 120km north of Hughenden in north Queensland. The project contains two major project areas, Granite Castle (EPM 14179) and Tag Alley (in EPM 15527). Mantle also applied for 330km 2 of prospective ground surrounding the existing tenements (EPM 19934) that covers prospective volcanics and historical tin (Sn) anomalism west and north of the Tag Alley Project, and areas to the south and south east of the Granite Castle Project prospective for repetitions of Granite Castle-type shears (Figures 6 & 7). Figure 6: Granite Castle exploration tenements. Figure 7: Granite Castle location and main target area. EPM 14179 (Range Creek) contains the Granite Castle JORC Code Compliant (Measured, Indicated and Inferred) gold and silver Resource 1 hosted solely in the single Granite Castle shear (Figure 7). The geologic model of the Granite Castle resource base is relatively simple with the majority of the resource extending from surface, sub-vertically to 130m depth (Figure 8). The JORC resource occupies 600m of strike length of the Granite Castle shear however the shear itself can be traced on surface for over 1km to the west and 200m east from the edges of the resource (Figure 7). In addition to the JORC Compliant shear, the project area contains a large swarm of gold-silver mineralised shears with over 14km identified to date. These additional shears are exposed at surface, in close proximity to, and semi parallel to, the existing Granite Castle shear (Figure 7). Figure 8: Granite Castle JORC Compliant Resource model (Green = 1-3g/t, Red = 3-5g/t, Pink = 5-10g/t Au). COMPETENT PERSON STATEMENT: The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Stuart Moore, an Executive of Mantle Mining Corporation Ltd. Mr Moore is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Moore consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Page 6 of 8
MANTLE MINING CORPORATION LIMITED s COMPANY PROJECT PORTFOLIO: Granite Castle Gold & Silver (QLD) Charters Towers Gold & Copper (QLD) Haunted Stream Gold & Copper (VIC) Ashford Gold & Silver (NSW) Trafford Coal & Coal Bed Methane (QLD) Latrobe Valley Black & Brown Coal (VIC) Bacchus Marsh Brown Coal (VIC) Barkly Phosphate (NT) Mantle s Gold Projects The Granite Castle Project area contains a JORC Code Compliant (Measured, Indicated and Inferred) gold and silver Resource 1. Mineralisation occurs in a 600m long portion of a single shear. Over 14km of additional shears have been located, most with drill holes and/or rock chip samples at similar grades to the JORC Compliant shear. The Charters Towers Project area contains the Great Britain JORC Code Compliant Inferred gold Resource 2 as well as a number of historic mines, including Day Dawn West, immediately west along strike of Citigold s (ASX: CTO) proposed City mining area. The Gromac/Puzzler area is prospective for deposits of copper, gold, silver and molybdenum. The Haunted Stream Project area is prospective for gold and copper including many historical, high-grade, gold mines along the Haunted Stream fault corridor. The company has been undertaking a series of exploratory drilling and ground magnetic programs in order to further understand the structural setting of the area and potential for delineation of extensions to the historic gold mines. The Ashford Project area is prospective for precious and base metals and a number of other minerals. The company has been granted three tenements for an initial three year period and is currently undertaking a detailed study of historical mining activity and regional prospectivity. The area represents Mantle s first work in NSW, a state where the company believes future access for mineral exploration will be expanded. Mantle s Coal Projects The Trafford Project area contains a large Exploration Target 3 of black coal. Mantle executed an Indigenous Land Use Agreement (ILUA) with the Native Title Holders of the Mt Mulligan area, the Djungan People and is progressing preliminary activities ahead of initial low impact exploration. The Bacchus Marsh Project area contains a 1.6 Billion tonne JORC Code Compliant brown coal Resource 4. Mantle formalised a JVA with Exergen Pty Ltd to develop the deposit utilising Exergen s patented Continuous Hydro-Thermal Dewatering (CHTD) technology. Exergen s partners include Tata Power, Itochu, Thiess and Sedgman. The Latrobe Valley Project area is prospective for both black and brown coal deposits including many historical mines within the Gippsland Basin. The tenements immediately abut the main Latrobe Valley depression. There is a high level of prospectivity that the historic Wonthaggi Black coal seams exist at depth within the project area. Mantle s Phosphate Project The Barkly Project area sits in the Georgina Basin between Minemaker s (ASX: MAK) Wonarah deposit and Phosphate Australia s (ASX: POZ) Highland Plains deposit. Historic phosphate rock intercepts exist within the tenements and Mantle is undertaking a series of drilling programs to more closely define the potential for covered deposits. 1, 2, 3 & 4: Mineral Resource and Exploration Target tables and associated Competent Persons Statements on next page. Page 7 of 8
JORC MINERAL RESOURCES, EXPLORATION TARGETS and COMPETENT PERSONS STATEMENTS: 1. Granite Castle Gold & Silver Project: Granite Castle Gold and Silver Resource Estimate (@ 0.2 g/t Au low grade & 30 g/t Au high grade cut-offs) Class Tonnes Au (g/t) Au (oz) Ag (g/t) Ag (oz) Measured 122,614 3.99 15,727 53.3 209,941 Indicated 264,021 3.44 29,198 67.6 574,182 Inferred 460,443 2.32 34,375 50.4 746,680 Total 847,078 2.91 79,301 56.2 1,530,803 Granite Castle Gold and Silver Exploration Target Target Tonnes Au (g/t) Au (oz) Ag (g/t) Ag (oz) Below JORC Resource 300,000 400,000 2.5 3.5 55-70 Total 300,000 400,000 2.5 3.5 55-70 Statements in this report relating to the Granite Castle Gold and Silver Resource Estimate are based on a report provided to the Company by Hellman and Schofield Pty Ltd, dated 16 th May 2008 and first released to the ASX by Mantle on 28 th May 2008. The information in this report that relates to Mineral Resources is based on information compiled by Dr William Yeo, a full time employee of Hellman and Schofield Pty Ltd. Dr Yeo is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Yeo consents to the inclusion of the matters based on his information in the form and context in which it appears in this report. The report also covered mineralised structures below the resource and quantified a contained exploration potential (Exploration Target) within those structures. Dr Yeo notes that the potential quantity and grade of the Exploration Target is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource, and that it is uncertain if further exploration will result in the determination of a Mineral Resource 2. Charters Towers Gold Project: Great Britain Gold Resource Estimate (@ 0.5 g/t Au low grade & 30 g/t Au high grade cut-offs) Class Tonnes Au (g/t) Au (oz) Inferred 2,128,000 1.8 125,000 Total 2,128,000 1.8 125,000 Statements in this report relating to the Great Britain Gold Resource Estimate are based on a report provided to Glengarry Resources Ltd by Resource Evaluations Pty Ltd dated August 2004 and independently confirmed by Ravensgate Minerals Industry Consultants and included in Mantle s 2006 Prospectus as released to the ASX by Mantle on 2 nd October 2006. The Resource Evaluations Pty Ltd report was compiled by Mr Mark Drabble, a Member of the Australasian Institute of Mining and Metallurgy and Mr Gerry Fahey, also a Member of the Australasian Institute of Mining and Metallurgy: This report was completed under the overall supervision and direction of Gerry Fahey and the 3D modelling and Mineral Resource estimation was carried out by Mark Drabble both of whom are Competent Persons as defined by the Australasian Code for the Reporting of Mineral Resources and Ore reserves (JORC Code) 1999 edition and who consent to the inclusion in this report of the matters based on his information in the form and context in which it appears. 3. Trafford Coal Project: Mt Mulligan Black Coal Exploration Target Target Tonnes (Mt) TM (%) Ash (% adb) VM (% daf) FC (% daf) TS (% adb) SE (Mj/Kg) Mulligan Sub-basin 100 500 2 3 11 42 29 39 60 71 0.14 0.43 16 28 Total 100 500 2 3 11 42 29 39 60 71 0.14 0.43 16 28 Statements in this report relating to the Mt Mulligan Coal Exploration Target are based on data provided to the Company by the vendors of the project, as first released in a report to the ASX by Mantle on 25 th September 2007: Under the Guidelines for the Estimation and Reporting of Australian Black Coal Deposits (1999), Mount Mulligan had an identified Class 1 deposit of 144m tonnes and an identified Class 2 deposit of 507m tonnes. Upon review of the geological data in consultation with Mantle s consultant geologists, it was considered appropriate that the range of the Exploration Target be considered as 100M to 500M tonnes. Information in this report that relates to Exploration Results is based on information compiled by Mr Ian Kraemer an Executive of Mantle Mining Corporation Ltd. Mr Kraemer is a Fellow of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Kraemer consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. In addition, Mr Kraemer notes that the potential quantity and grade of the Black Coal Exploration Target is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource, and that it is uncertain if further exploration will result in the determination of a Mineral Resource. 4. Bacchus Marsh Coal Project: Bacchus Marsh (Maddingley Seam) Brown Coal Resource Estimate (@ 30% Ash upper cut-off) Class Tonnes (Bt) TM (%) Ash (% db) VM (% db) FC (%db) TS (% db) GDSE (Mj/Kg) Inferred 1.6 52.9 10.4 47.2 42.4 3.4 24.5 Total 1.6 52.9 10.4 47.2 42.4 3.4 24.5 Statements in this report relating to the Bacchus Marsh Brown Coal Resource estimates are based on a report provided to the Company by AMC Consultants Pty Ltd, dated August 2012: Information in this report that relates to Coal Resource estimates prepared by AMC Consultants Pty Ltd is based on information compiled by Ms K Zunica, who is a Member of the Australasian Institute of Mining and Metallurgy and is a full time employee of AMC Consultants Pty Ltd. The estimates are based on exploration data provided by Mantle Mining Corporation Ltd. Ms Zunica has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ms Zunica has provided written consent to the inclusion in the report of the matters based on her information in the form and context in which it appears. Page 8 of 8