NEW STRONG GEOCHEMICAL ANOMALIES IDENTIFIED AT COOLGARDIE PROJECT INCL. + 100 PPB AU HIGHLIGHTS New 1km-long soil geochemical anomaly discovered using mobile metal ion (MMI) method Anomalous samples include 108 and 110 ppb Au Anomaly coincides with major cross-cutting structure intersecting the greenstone sequence Previous scout drilling intersected gold mineralisation at 40-60m depth No previous soil geochemical work or systematic drilling undertaken over area Primary Gold Limited () ( Primary or the Company ) is pleased to announce the first phase of exploration at the recently acquired south-western tenements (see ASX announcement 12 October 2016), targeting prospective geology zones away from the known deposits, has been successfully completed. 461 samples, distributed over a regular 200 x 100m grid, were collected from the 9 km 2 area (5 km long and 0.8 2.7 km wide) (Figure 1). All samples were collected and assayed using mobile metal ion (MMI) methodology - a proven advanced geochemical exploration technique used in finding mineral deposits. Figure 1: Map of the Primary Gold tenements in the Coolgardie area showing location of the geochemical samples collected and assayed using MMI method The program discovered new geochemical anomalies, including a 1km long strong gold anomaly denoted as Anomaly-1, and two weaker anomalies, Anomaly-2 and Anomaly-3 (Figure 2). 1
Anomaly-1 is located on the floodplains of the Gazali creek extending in a down-stream direction along the creek banks. Mobile gold content in the soil samples from this area consistently exceeds 50 ppb Au (MMI) and in two samples reached 108 and 110 ppb Au (MMI) values (Figure 2). Anomaly 1 spatially coincides with a major cross-cutting structure that strikes in a NW SE direction intersecting the Coolgardie greenstone sequence at a high angle (Figure 3). This structure, located in the central part of Primary s tenement package, is geologically similar to that hosting Primary s Tycho deposit in the eastern part of the tenement package. Shallow scout drilling by previous explorers in the Anomaly-1 area intersected gold mineralisation at depths ranging from 40m to 60m (Figure 3). Anomaly 2 is located in the P 15/5892 lease on the north-western side of Primary s tenements package approximately 700m from Barra Resources (ASX:BAR) Burbanks mine (Figure 1). The area is characterised by presence of the quartz veins which are exposed in the exploration trenches excavated by the previous explorers and possibly representing a hydrothermal halo of the Burbanks deposit. Anomaly 3 was discovered in the area where Archean greenstone sequence is partially covered by Cainozoic sedimentary rocks where it coincides with ultramafic sequence intercalated with basalts. The weak anomaly possibly reflects increased thickness of the sedimentary cover. Managing Director Garry Mills said the discovery of a 1km long soil geochemical anomaly, in an area previously untested by soil geochemical analysis or systematic drilling, confirms our belief these tenements potentially host gold mineralisation and warrants systematic drilling. Anomaly 1, in particular, shows significant potential and will be our priority target for the 2018 drill program. While Anomaly 2 and 3 are potential drill targets, further MMI geochemical sampling will be undertaken to provide more confidence in these anomalies. I look forward to updating investors on the results from the drilling campaign in the new year. Figure 2: Geochemical soil anomalies of the mobile gold determined using MMI method 2
Figure 3: Geological features of the areas characterised by the anomalous mobile gold (MMI-gold) contents in the soil. White circles denote the historic scout drilling results of the previous explorers Data Integrity Location of the samples (Easting and Northing coordinates) were determined using handheld GPS. The samples were collected from A-horizon of soil by digging a small hole, 10 30 cm deep, and sieving the dug material through a 1.6 mm sieve. Depth was approximately determined using the shovel blade as a reference. Approximately 300 grams of sieved material was collected, which is a standard size of the MMI samples. The samples were placed into a sample bag and delivered to SGS laboratory. All samples were dry. The procedure of extraction of the mobile metals and their assaying was developed by SGS laboratory. The method uses multicomponent solution for weak partial extraction of the mobile ions which are released in to the solution. The concentration of the released metals is assayed using high-sensitivity (ppb level) ICP-MS technique. The QAQC procedures used in this geochemical programme was developed and applied by the SGS laboratory and included repeat assays of the soil samples and using blanks and certified standards (MMI MAMISO169). Strong MMI gold anomaly was confirmed by repeat assay of the anomalous sample. Results were as follows: Original sample: CMI 00302 108 ppb Repeat assay: REP CMI00302 106 ppb Further actions Anomaly-1 is an important exploration target for Primary and will be drill tested in 2018. Primary is planning to drill several drill holes along the exploration traverses intersecting the anomalous zone. Anomalies-2 and -3 represent potential drill targets and further geochemical sampling will be undertaken prior to drilling. 3
For more information, please contact: Garry Mills +61 8 6143 6700 Or download our Primary Gold App Competent Persons Statement The information in this announcement that relates to Exploration Results is based on information compiled by Dr Marat Abzalov, who is a Competent Person according to JORC 2012 Code. Dr Abzalov is a Fellow of the Australasian Institute of Mining and Metallurgy. He has sufficient experience in exploration, interpretation and evaluation of gold mineralisation, and has a strong expertise in the all aspects of data collection, interpretation and geostatistical analysis to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves. Dr Abzalov is employed as a director of Primary Gold Ltd. Dr Abzalov consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. 4
APPENDIX 1: Sampling results Table A1: Location and gold grade of the anomalous (Au > 30 ppb) geochemical samples prepared and assayed using MMI methodology SAMPLE ID EAST NORTH TENEMENT Au, ppb CMI00089 327562.5 6569297.03 M 15/128 30.8 CMI00253 323480.8051 6566502.089 P 15/5892 63 CMI00280 323198.7778 6566484.455 P 15/5892 34.7 CMI00296 324434.8494 6565449.825 P 15/6088 30.7 CMI00297 324512.8105 6565387.557 P 15/6088 43.7 CMI00298 324580.478 6565318.034 P 15/6088 51.8 CMI00299 324669.7452 6565262.178 P 15/6088 110 CMI00302 324898.7111 6565064.051 P 15/6088 108 CMI00303 325001.5413 6564997.607 P 15/6088 60.6 CMI00304 325080.9051 6564941.446 P 15/5719 88.7 5
APPENDIX 2: JORC (2012) COMPLIANCE CHECK LIST Criteria of JORC Code 2012 Reporting criteria presented in the Section 1 of the JORC Table 1 Explanation given in the JORC Code 2012 (Sampling techniques and data) Details of the Reported Project (1.1.) Sampling techniques Nature and quality of sampling (eg cut channels, random chips, or specific specialized 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. 461 soil samples have been collected and processed using mobile-metal ion (MMI) technique. Samples were collected from A-horizon of soil at the depth approximately 10 to 25 cm below the surface. Upper 5-10 cm of soil layer was scraped away eliminating possible contamination and loose organic material. Samples were obtained by sieving the dug material using 1.6mm aluminium sieve, 330mm diameter. Approximately 300 grams of material was collected. In order to ensure quality and representativeness of the MMI samples the sampling procedures were developed for this project by an experienced MMI-geochemist (Andrew Hawker). Sampling was carried by the Primary Gold personnel strictly following the established procedures. Depth of sampling was maintained within the interval of 10 25 cm assuring consistency of the results. 6
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 (eg 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 (eg submarine nodules) may warrant disclosure of detailed information. Standard procedure of sampling and processing of the MMI samples was used. All samples were delivered to SGS laboratory in Perth, who has exclusive license to use MMI technique. Drilling techniques (1.2.) Drill sample recovery (1.3.) Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg 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. 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. Not applicable as no drilling was undertaken. Not applicable as no drilling was undertaken. Not applicable as no drilling was undertaken. Not applicable as no drilling was undertaken. 7
Logging (1.4.) 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. Documentation of the samples included registration of the coordinates obtained using hand held GPS, Soil type, colour, hardness, moisture, depth of sampling, presence of outcrops of sub-cropping quartz veins. Level of details is sufficient for interpretation of the geochemical sampling results and reporting the findings as Exploration Results of the JORC code. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. Logging was qualitative. No photos of the samples were taken. The total length and percentage of the relevant intersections logged. 100% of samples were logged to the level of details sufficient for reporting Exploration Results Subsampling techniques and sample preparation (1.5.) 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. Not applicable as no drilling was undertaken. Geochemical samples were collected from A-horizon of soil by digging a small hole, 10 30 cm deep, and sieving the dug material through 1.6 mm sieve. Approximately 300 grams of sieved material was collected, placed into sample bag and delivered to SGS laboratory. All samples were dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. MMI method uses multicomponent solution for weak partial extraction of the mobile ions which are released in to the solution. The concentration of the released metals is assayed using high-sensitivity ICP-MS technique. The procedure of extraction of the mobile metals and their assaying was developed by SGS laboratory. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Not applicable. Preparation of the MIM samples does not include sub-sampling 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. Laboratory QAQC procedures included repeat assays, blanks, and standard samples (MMI M AMISO169). 8
Whether sample sizes are appropriate to the grain size of the material being sampled. Yes. 250 350 gr is a standard size of geochemical samples that are processes using MMI technique Quality of assay data and laboratory tests (1.6.) Verification of sampling and assaying (1.7.) 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 (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. The verification of significant intersections by either independent or alternative company personnel. A high-sensitivity ICP-MS technique that provides results at part-per billion (ppb) range is used with MMI technique. Not applicable. Geophysical tools were not used. Internal QAQC procedures of the SGS laboratory were used at the programme MMI gold anomaly was confirmed by repeat assay of the sample CMI00302. The repeat assay has confirmed the original result: CMI 00302 108 ppb REP CMI00302 106 ppb The use of twinned holes. Not applicable. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data. Assay results were obtained from the lab in an electronic form and saved on the company s server. No adjustments were made to the data 9
Location of data points (1.8.) 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. X -Y coordinates of the samples were determined using Handheld GPS. Depth was approximately determined using the shovel blade as a reference Specification of the grid system used. Grid MGA (GDA94) zone 51. Quality and adequacy of topographic control. Not applicable. Data spacing and distribution (1.9.) 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. Samples were collected following a regular, 200 x 100m, grid. Sampling traverses were 200m apart and distance between samples on a traverse was 100m Samples were collected primarily for identification of geochemical gold anomalies and they are sufficient for 1 st phase of exploration. The 200x100m sampling grid is sufficient to identify gold anomalies that can be reported as Exploration Results. The anomalies, obtained by 200 x 100m sampling also sufficient for planning of the exploration drilling, however in some cases they can be infilled to 50 x 50m grid if more accurate definition of the drill targets is needed. Whether sample compositing has been applied. Samples compositing was not used Orientation of data in relation to geological structure (1.10.) Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. Sampling traverses are distributed at 200m apart and oriented across the strike of the main structures. Distance between samples along the traverse is 100m. This grid is optimal for detecting the gold anomalies and assessing their spatial distribution that possibly reflects the shape and size of the underlaying mineralisation generating the anomaly. 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. Not applicable as no drilling was undertaken. 10
Sample security (1.11.) Audits or reviews (1.12.) The measures taken to ensure sample security The results of any audits or reviews of sampling techniques and data. Samples were not left unattended. Most of the samples were delivered to laboratory at the end of the day when they were collected. Unauthorised people did not have access to the samples. No audits or reviews of the MMI geochemical data was undertaken. The validation of the identified anomalies will be made by scout drilling that will be testing the strong anomalies. The weak anomalies (e.g. Anomaly - 3) will be infilled to 50x50m grid. Reporting criteria presented in the Section 2 of the JORC Table 1 (Reporting of Exploration Results) Criteria of JORC Code 2012 Explanation given in the JORC Code 2012 Details of the Reported Project Mineral tenement and land tenure status (2.1) Exploration done by other parties (2.2) 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. The sampled were collected from several leases, including M15/128, P15/5719, P15/5722, P15/5723, P15/5892, P15/5901, P15/5902, P15/6088, P15/6089, P15/6090 All leases are securely held and maintained in an orderly manner by Primary Gold. Orientation MMI study was undertaken together with geochemical contractors HGS Australia. HGS Australia assisted in developing the sampling methodology for application of the exploration techniques Geology (2.3) Deposit type, geological setting and style of mineralisation. The Archean lode gold deposits of the Coolgardie Goldfield are dominated by veins, breccia zones, stockworks and/or shear zones; not hosted by a specific greenstone lithology but by a number of 11
different lithologies, generally always within the greenstone succession. Mineralisation occurs typically adjacent to or within major tectonic zones, which includes shear zones, deformation zones and fold hinges, predominantly on or close to the lithological contacts and is generally thought to have been broadly synchronous with peak metamorphism (about 2,650 Ma). Drill hole Information (2.4) 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. Drilling was not undertaken. This report presents results of 461 geochemical soil samples. Location of the anomalous (Au > 50 ppb) samples are as follows: SAMPLE ID EAST NORTH TENEMENT Au, ppb CMI00089 327562.5 6569297.03 M 15/128 30.8 CMI00253 323480.8051 6566502.089 P 15/5892 63 CMI00280 323198.7778 6566484.455 P 15/5892 34.7 CMI00296 324434.8494 6565449.825 P 15/6088 30.7 CMI00297 324512.8105 6565387.557 P 15/6088 43.7 CMI00298 324580.478 6565318.034 P 15/6088 51.8 CMI00299 324669.7452 6565262.178 P 15/6088 110 CMI00302 324898.7111 6565064.051 P 15/6088 108 CMI00303 325001.5413 6564997.607 P 15/6088 60.6 CMI00304 325080.9051 6564941.446 P 15/5719 88.7 The anomalous samples are denoted on the on the map as bold red and pink dots. 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. Information on all MMI samples that contain anomalous concentration of gold (above 50 ppb) is included into this report. This information is considered material. 12
Data aggregation methods (2.5) Relationship between mineralisation widths and intercept lengths (2.6) In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. 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 ). Not applicable. The current report is presenting the results of geochemical exploration using MMI soil sampling technique Not applicable because intercepts were not estimated from the sampling data Not applicable. Objective of the study was to find soil gold anomalies which are reported here Not applicable. Objective of the study was to find soil gold anomalies which are reported here. The main anomaly, referred as Anomaly-1 is approximately 1 km long and extended along the Gazali creek, which coincides with cross-cutting structure intersecting the Coolgardie Greenstone sequence. The anomaly is characterised by the mobile gold contents (MMI geochemistry) above 100 ppb. Such values when they obtained by MMI technique are considered as strong gold anomaly. Information on mineralisation is not available because mineralisation is yet to be discovered by the drilling programme that will test the anomalies 13
Diagrams (2.7) 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. Balanced reporting (2.8) Other substantive exploration data (2.9) 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 current report presents results of geochemical exploration and is made in a form of balanced reporting. Objective of the report is to present the new geochemical anomalies that was discovered using MMI geochemical technique. The anomalies represent an exploration target of the Primary Gold and they will be tested by drilling The previous explorers have drilled several shallow scout drillholes in the area which is defined by Primary Gold as Anomaly-1, based on the results of completed MMI sampling. The drilling has intersected gold mineralisation with the sample grades achieving 13.4 g/t 14
Further work (2.10) The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or largescale 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. Anomaly 1 represents a drill target of the Primary Gold and it will be tested by drilling in 2018. Anomalies 2 and 3 require additional study and will be infilled to 50x50m MMI grid. Maps were presented in the section 2.7 of the JORC table 15