ASX ANNOUNCEMENT ASX CODE: 12 December SRN 2016 17 January 2017 Exceptionally High Grade Silver and Lead at Kooline Highlights Multiple high grade rock chip results returned from initial reconnaissance at Kooline Sample No Silver Lead g/t % BKCR0002 170 49.3 BKCR0011 105 27.5 BKCR0012 60 51.7 BKCR0013 215 56.4 BKCR0014 150 48.0 BKCR0015 95 26.8 BKCR0016 110 25.2 BKCR0017 135 49.8 BKCR0018 215 60.7 BKCR0019 100 39.0 BKCR0020 365 25.1 BKCR0022 145 53.0 BKCR0024 25 21.1 Two Lead-Silver mineralised trends over a strike of 4.5km identified Drill ready targets - drilling program design and schedule imminent Additional untested targets extend beneath recent sediments Lead prices have increased by 26% from January 2016 to present (Source: LME, 2017)
Surefire Resources NL is pleased the announce the assay results for the initial rock chip samples collected during the recent site visit to the Kooline Silver-Lead-Copper Project ( the Project ). Figure 1: Rock Chip Sampling, Historical Workings and Mineralised Corridors A field trip to the tenements yielded twenty-four rock chip samples across a wide area. Seven samples returned lead assays in excess of 40% lead (Table 1). Ten samples produced assays over 3oz per tonne silver, and two samples assayed at greater than 1% copper. The resulting assays confirm the widespread occurrence of high grade silver and lead values in mineralised structures that crop out over a minimum 4.5km of strike at Kooline. The west-northwest trending mineralised structures are buried in the west by sediments associated with the Ashburton River floodplain. Little work has been attempted where the structures lie beneath the recent cover. Geophysical reprocessing is presently underway to determine the potential of delineating additional targets under cover.
In addition, reconnaissance of the old workings at Kooline confirmed the untested potential extensions both along strike and down dip. Thus, many prospects are drillready. The extremely positive results returned to date at Kooline have provided the impetus to rapidly implement a drilling program to test the extent of mineralisation within the 4.5km corridor of mineralisation commented Surefire s Executive Director, Don Valentino. Figure 2: Bilrose Historical Workings Table 1: Rock Chip Sampling Results Sample Easting Northing Pb % Ag ppm Cu % Au ppm Fe % Mn % S % BKCR001 445,348 7,442,451 3.35 25 0.02 0.16 1.84 0.03 0.3 BKCR002 445,424 7,442,404 49.3 170 0.16 0.19 1.12 0.01 4.3 BKCR003 445,066 7,442,580 3.59 1 0.07 0.28 2.41 1.01 0.1 BKCR004 445,065 7,442,570 5.97 25 1.50 0.28 1.69 0.19 0.1 BKCR005 444,966 7,442,634 4.33 1 0.11 0.12 1.89 0.02 0.1 BKCR006 444,940 7,442,645 3.11 30 0.38 0.12 1.85 0.08 0.1 BKCR007 444,762 7,442,711 0.277 1 0.40 0.1 2.41 0.02 0.1 BKCR008 444,730 7,442,729 0.11 1 1.88 0.03 2.2 0.01 0.1 BKCR009 444,730 7,442,729 37 80 0.19 0.13 2.18 0.14 2.9 BKCR010 442,543 7,443,555 1.99 1 0.03 0.04 2.04 0.01 0.1 BKCR011 442,066 7,443,727 27.5 105 0.49 0.18 1.49 0.01 0.5 BKCR012 443,582 7,443,334 51.7 60 0.08 0.06 1.89 0.02 5.9 BKCR013 443,565 7,443,562 56.4 215 0.34 0.1 1.09 0.01 6.0 BKCR014 443,630 7,443,821 48 150 0.05 0.07 1.32 0.01 6.0 BKCR015 443,591 7,443,847 26.8 95 0.26 0.35 1.96 0.02 0.8 BKCR016 443,801 7,443,749 25.2 110 0.02 0.42 1.3 0.01 4.2 BKCR017 446,185 7,443,015 49.8 135 0.02 0.04 2.13 0.02 6.2 BKCR018 446,177 7,443,678 60.7 215 0.16 0.06 1.03 0.04 9.1 BKCR019 445,108 7,443,553 39 100 0.02 0.09 3.31 0.03 4.3 BKCR020 444,565 7,443,540 25.1 365 0.14 0.15 0.872 0.01 9.7 BKCR021 443,908 7,444,162 7.13 25 0.01 0.04 2.63 0.02 0.7 BKCR022 444,137 7,444,086 53 145 0.01 0.09 2.43 0.02 5.9 BKCR023 445,350 7,444,060 16.6 45 0.01 0.2 1.62 0.04 3.3 BKCR024 445,294 7,443,869 21.1 25 0.02 0.02 1.44 0.02 0.8
Figure 2: Regional Location Plan of Kooline About Kooline The Project, located 55km south of the Paulsen s Gold Mine, within the Ashburton Province, produced a total of 3,600t of lead and 950kg (30,546oz) of silver over an eleven-year period (1948 and 1959). Much of the historical production came from three mines: The Gift, Jane-Audrey and Bilrose, which lie within the tenure. Kooline lies within the northern margin of the West Bangemall Basin and encompass rocks of the Ashburton and Capricorn Formations of the Wyloo Group. Lead-silver mineralisation at Kooline is associated with mesothermal quartz veins along shear zones in siltstones and greywackes. These sub-vertical vein sets occur in multiple stacked and en echelon sets over several kilometres of strike. Individual veins range from 0.5 to >2m in thickness. Lead Price Lead prices have steadily risen by 26% since the start of 2016 to present. The majority of lead currently consumed is in the form of lead-acid batteries. Figure 3: Lead Prices (US$/t) from 3 Jan 2016 to 13 Jan 2017 (LME, 2017)
Competent Persons Statement: The information in this announcement that relates to the Kooline Project Exploration Results is based on information compiled and fairly represented by Mr Jonathan King, who is a Member of the Australian Institute of Geoscientists and a consultant to Surefire Resources NL. Mr King has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he has undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr King consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.
JORC Code, 2012 Edition Appendix 1 Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) Criteria JORC Code explanation Comments Sampling techniques Drilling techniques Nature and quality of sampling (eg 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 (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. In cases where industry standard work has been done this would be relatively simple (eg reverse circulation drilling was used to obtain 1m samples from which 3kg was pulverised to produce a 30g 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. 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, facesampling bit or other type, whether core is oriented and if so, by what method, etc). Rock Chip Samples: Rock chip samples were taken across selected areas of interest and in proximity to historical workings. Lab checks were completed on several of the anomalous samples. Rock Chip Sampling: Samples were taken on the exposed mineralisation. Each sample represents a composite of several rock chip samples per location. Standard sampling methodology applied.
Criteria JORC Code explanation Comments Drill sample recovery Method of recording and assessing core and chip sample recoveries and results assessed. Logging 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. 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. Each sample represents a composite of the rock chips gathered along the mineralised structure for a 2-metre area. Sample bias exists as only the mineralised veins were sampled as a test on grade of the vein. Samples not logged. Samples not logged, as all represent exposed mineralisation. Subsampling techniques and sample preparation 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. Samples weighing less than 3.5 kg were dried, crushed, pulvervise to 75 micron. Four acid digestion and titration for ore grade analysis. Gold by fire assay and ICP-AES for most other elements. 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. No QAQC sample checks taken, reconnaissance level work only. Sub- Rocsamples taken within 1m of the registered point. Field duplicates not collected. Quality of assay data and 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 All samples weighed in at below 3.5 kilograms. SGS used initial screen to determine high grade lead samples and followed with EDTA titration methods. 4 Acid digestion with ICP reading method
Criteria JORC Code explanation Comments laboratory whether the technique is considered Gold by fire assay, 30g charge and read by tests partial or total. AAS. Verification of sampling and assaying Location of data points Data spacing and distribution Orientation of data in relation to geological structure 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. 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 downhole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Not used for grade reporting or interpretation. No QAQC procedures were documented. Specification of the grid system used. MGA 94 Zone 50. 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. Paper records converted to digital format. No adjustments were made to assay data presented in this report. A digital terrain model was generated from the high resolution magnetic survey. The quality of the DTM is sufficient for the stage of exploration for the Project. Rock chip information gathered at the observation and interest. Not attempting to establish a mineral resource only guide the prospectivity and future drilling. Each sample is a composite of several subsamples collected from the target horizon at each site locality. The mineralisation is relatively steeply dipping.
Criteria JORC Code explanation Comments 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. Sample security Audits reviews or The measures taken to ensure sample security. The results of any audits or reviews of sampling techniques and data. The collected samples travelled with the field team, who despatched them promptly upon their return to Perth None conducted. 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. The Kooline project consists of two exploration licences E08/2372 and E08/2373 in Western Australia. The Licences are held by Ilmenite Resources Pty Ltd. Surefire Resources NL has a four month exclusive option to acquire a 90% interest in the Kooline Project through the issue of 250,000,000 shares to Ilmenite Resources Pty Ltd or its nominee(s). Ilmenite Resources Pty Ltd is to retain a 10% free carried equity interest in Kooline until the completion of a DFS. Upon the completion of a DFS Ilmenite Resources Pty Ltd is required to contribute or dilute according to industry standard dilution formula. Upon diluting to a 5% equity interest, Ilmenite Resources Pty Ltd can elect to dilute to a 1.5% net smelter royalty. No known impediments exist with respect to the exploration or development of the Kooline Project. The majority of exploration activities conducted to date across the Kooline Project has been by Athena Resources Ltd.
Criteria JORC Code explanation Commentary Geology Deposit type, geological setting The Kooline Project is located within the and style of mineralisation. Proterozoic Ashburton Formation, uppermost stratigraphic unit of the Wyloo Group. The Ashburton Formation consist of mudstone, sandstone and minor conglomerate, banded iron formation and felsic t mafic volcanics. Two phases of deformation are evident resulting in SW trending folds and NW trending folds with attendant steep to vertical bedding. The lead-silver mineralisation at Kooline is associated with mesothermal quartz veins along shears in siltstones and greywackes. These sub vertical veins occur in multiple stacked and en echelon sets over several kilometres of strike. Drill Information hole 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.
Criteria JORC Code explanation Commentary Data aggregation In reporting Exploration Results, No aggregation methods applied. methods 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 No aggregation methods applied. 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 No metal equivalence are reported. reporting of metal equivalent values should be clearly stated. Relationship between mineralisation widths and intercept lengths Diagrams 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. Maps and plans have been included in announcement. Balanced reporting Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. All results including those with no significant interceptions have been reported.
Criteria JORC Code explanation Commentary Other substantive Other exploration data, if No other exploration data is considered exploration data meaningful and material, should meaningful and material to this be reported including (but not announcement. 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. Further work The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Detailed geological mapping, infill auger geochemistry, detailed rock chip sampling and underground mapping are planned to be undertaken. Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. Planning for drilling is currently underway, further releases will be made to market upon finalisation of the planned drilling.