Freehill Intersects 18m of Near Pure Magnetite at >63% Fe ... · Table 4 - Davis Tube analysis of a...

Freehill Mining Ltd – iron ore producers | ACN 091 608 025 |www.freehillmining.com | Tel: +61 03 86021700

Melbourne Office |88 Miller Street, West Melbourne, Vic 3003 |email: [email protected] La Serena, Chile office |Level 7, Edificio Seville, Avenida Del Mar La Serena, Chile South America

5 March 2019 Freehill Intersects 18m of Near Pure Magnetite at >63% Fe within 50m of Surface at Yerbas Buenas

Highlights: ▪ 120m of high grade magnetite averaging 30% Fe intersected in large magnetic structure

▪ Structure is open to the south and widens based on geophysics

▪ Only 12-14m of sand cover over structure allows for very simple pre-stripping ▪ Assays confirm Yerbas Buenas contains very high quality magnetite suitable for processing at

pellet plant 30km away where FHS has supply agreement ▪ JORC Resource Mineral Estimate underway Freehill Mining Limited (“Freehill” or “the company”, ASX: FHS) is pleased to report outstanding assay results from the maiden drill program at the flagship Yerbas Buenas magnetite project in Chile. As reported, a 4,300m of Reverse Circulation (RC) drilling program was successfully completed on 11 December with holes ranging from 150m to 250m in depth. Assay results have been received for the six holes that have been drilled at the YB6 structure. Key highlights from first set of assays include:

Hole ID Interval Intersection Significant High Grade intersections

Hole YB013

12m

32m-44m 37.1% Fe

Hole YB014

14m 6m-20m 19.8%Fe

Hole YB015 Including including

8m 28m 56m

10m-18m 34m-62m 8m-64m

27.2%Fe 37.4% Fe 25.2% Fe

Hole YB016 including including including

172m 38m 16m 16m

14m-186m 14m-52m 20m-36m 36m-52m

24.4%Fe 41.7%Fe 61.0 %Fe 29.4%Fe

Hole YB022

38m 12m-50m 19.9% Fe

Table 1 - Significant total iron (%Fe total) grade intervals for drill holes along the YB6 structure

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Comment Freehill’s Chief Executive Officer Peter Hinner commented: “These are simply outstanding assays and whilst many of the intersections exhibit high grade mineralisation, the highlight is the 18m of near pure magnetite we intersected less than 50 metres from surface. These assay results are a major milestone and value catalyst for Freehill as they unlock a great deal of Yerbas Buenas’ value. “We have now demonstrated that the magnetic targets identified by geophysics and now drilling contain a high quality magnetite suitable for the large, local pellet feed plant owned by Chile’s largest iron ore producer Compania Minera del Pacifico (“CMP”), a subsidiary of CAP. “Yerbas Buenas is shaping up as a significant Chilean magnetite project with established offtake agreements and third party processing operations available to us only 35 kilometres from site. We look forward to reporting a JORC Mineral Resource Estimate during March and also updating our Conceptual Exploration Target.” Exploration Overview Exploration was confined to the southern portion of the project area with drilling focusing in and around the trial mining pit area and confirming magnetite mineralisation within several identified magnetic structures to the immediate north and south of the pit that form part of a contiguous elongated magnetic structure 2.3km long. The structure is open at both the northern and southern boundaries of the project tenement. Drilling covered some 1.1km of strike along the southern portion of the main 2.3km structure. The maiden drilling campaign comprised 24 RC holes completed in December 2018 for 4,300m of drilling. Figure 2 shows the campaign drilling targets of YB1, YB3 and YB6. Figure 1 is a north-south cross section of downhole iron grades along the transect shown in Figure 3. Drilling of the YB6 structure:

❖ Shows it contains substantial sections of almost pure magnetite. ❖ Confirms that the structure is mineralised with magnetite iron ore. ❖ Shows the structure appears to thicken and widen in a southward direction. ❖ The magnetite is of a high quality, low impurity suitable for pellet feed production. ❖ The structure has very little overburden.

Hole YB016 contains 22 intervals of lower grade intersections and if these are classified as an inter-burden and removed from the downhole average then the average grade of the remaining 142m from 14m-186m becomes 30.5% Fe. Detailed test work carried out by Freehill at Intertek laboratory has shown that a total iron content of 30.5% Fe would provide a 38% Mass Recovery using the standard Davis Tube Recovery (“DTR”) method commonly used for magnetite assessment. In very basic terms this means that for every 100 tonnes of material that could be mined and processed approximately 35 tonnes of magnetite could be recovered to a high grade fine product. A range of intervals with varying total iron grades was chosen from hole YB016 and analysed using David Tube to determine the recovery to magnetic product. The concentrate was then assayed using conventional XRF methods and those results presented in Table 3.

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The average Davis Tube magnetic concentrate grade derived from those tests provides a good indication of the quality of a potential pellet feed using Yerbas Buenas mine concentrates. Hole locations with depth and dip for the YB6 structure are summarised in Table 2.

Project Hole North (WGS84) East (WGS84) RL (m) Dip° Azimuth° Depth (m) Yerbas Buenas Magnetite

YB-013 6,723,507 279,623 171 -90 360 150 YB-014 6,723,456 279,603 172 -90 360 150 YB-015 6,723,298 279,614 172 -90 360 150 YB-016 6,723,085 279,635 168 -90 360 200 YB-022 6,723,189 279,606 172 -90 360 170 YB-023 6,723,188 279,606 172 -60 195 260

Table 2 Summary of drill hole position and geometry for holes in YB6 structure

Table 3 - Potential product quality based on Davis Tube mass yield and concentrate quality test work conducted on selected drill hole YB016 sample intervals that have iron grades indicative of a production concentrate These elemental analysis results compare very favourably with pellet feeds exported to the China and Korean markets by CAP as well tests on trial concentrates delivered to the Romeral pellet feed plant during the past 1-2 years.

Table 4 - Davis Tube analysis of a magnetite concentrate derived from a 61.5% Fe concentrate delivered to CAP pellet feed plant as part of normal deliveries during 2018 (note that DTT is used in Chile in place of DTR)

Figure 1 - Long section approximately N-S showing thickening trend of iron grade toward Hole YB016 in the south

%Fe DTT %Al2O3 %SiO2 %TiO2 %MnO %CaO %K2O %MgO %P %S68.420 0.256 0.598 0.116 0.09 0.162 0.016 0.268 0.013 0.002

%Fe DTT %Al2O3 %SiO2 %TiO2 %MnO %CaO %K2O %MgO %P %S 69.43 0.679 1.495 0.197 0.072 0.356 0.025 0.477 0.033 0.020

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Figure 2 - Yerbas Buenas project area showing the three main southern magnetite structures that have been drilled.

Complete assaying of all samples is expected to be completed in early March allowing resource modelling to begin. Campaign Outcomes Access to the exploration area is very easy with drill rigs able to mobilise from La Serena which is only 35 kms to the south along the Pan American highway. Rig access across the site is also straightforward as the area is relatively flat. Main features of the southern anomaly are that it appears to be only covered in sand. A north south line of drill holes along the YB6 magnetic structure confirmed a thick mineralised structure with a shallow sandy or highly weathered overburden averaging only 3-14m thick. The sand itself is sufficiently mineralised and liberated to be processed and magnetite extracted during any future pre-stripping activities with sufficient mineral value to cover the cost of any stripping activity. The magnetite that can be recovered from Yerbas Buenas material Target market is suitable for the production of a pellet feed which is a market that is increasing globally. The results show a very consistent elemental chemistry indicative of a high quality, low impurity magnetite. Demonstration processing plant has already produced ~58-64% Fe concentrate for feeding into a pellet feed plant at a crushing size of only -6mm which is a very encouraging result.

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Figure 3-TMI-RTP view of the YB6 structure showing the position of the north-south cross section A-A provided in Fig. 1

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Figure 4 - Example of typical massive magnetite found within the Yerbas Buenas structures (ex trial mining pit)

Figure 5 - Hole YB016 being drilled – note sandy overburden material which is only 12-14m deep and sitting over 170m of highly mineralised material

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About the Yerbas Buenas Project The Yerbas Buenas project has proven magnetite mineralisation as well as being prospective for both gold and copper mineralisation.

Drilling results from the company’s maiden drilling campaign clearly demonstrate that magnetite mineralisation extends to the extreme southern portion of the project area supporting the earlier high resolution ground magnetics surveys. Structures identified during the earlier ground magnetics geophysics surveys show a contiguous series of magnetic structures from the northern boundary of the property extending to the southern boundary, a distance of 2.3 kilometres. Results of a recent Induced Polarisation (IP) survey in the northern half of the project area have identified a large structure over 800m in diameter only 600m to the east of the northern magnetic structure. The IP target will be drilled during the year to verify the existence of sulphides. The area contains numerous artisanal copper and gold tunnels and diggings. Because of the location of the Yerbas Buenas project the company has been in the fortunate position of being able to supply a high quality magnetite concentrate to a nearby pellet feed plant owned by Chile’s largest iron ore producer CAP for the past two years.

Competent Persons Statement: The information in this report that relates to exploration results is based on information compiled by Mr Peter Hinner, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Hinner is a full-time employee of Freehill Mining Ltd 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’ (the JORC Code 2012). Peter Hinner consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. About Freehill Mining Limited Freehill Mining Limited (ASX: FHS) is a mineral exploration company focused on creating shareholder wealth through the identification of mineral resources in Chile and development of its Yerbas Buenas magnetite project. The company has also identified copper and gold mineralisation on its tenements and plans to undertake further mineral exploration programs on these at a later date. For further information, please contact:

Ray Mangion Paul Davies Chairman Chief Financial Officer Freehill Mining Limited Freehill Mining Limited +61 411 237 559 +61 419 363 630 Media & investor relations inquiries: Ben Jarvis, Six Degrees Investor Relations: +61 413 150 448

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Appendices – Full Iron Assay reporting *Significant assay intervals highlighted Hole ID From (m) To (m) Interval (m) Grade %Fe total

YB013 0 2 2.0 9.5YB013 2 4 2.0 11.8YB013 4 6 2.0 9.9YB013 6 8 2.0 7.0YB013 8 10 2.0 4.6YB013 10 12 2.0 3.6YB013 12 14 2.0 3.9YB013 14 16 2.0 3.5YB013 16 18 2.0 3.7YB013 18 20 2.0 6.7YB013 20 22 2.0 6.7YB013 22 24 2.0 5.2YB013 24 26 2.0 3.2YB013 26 28 2.0 9.7YB013 28 30 2.0 6.1YB013 30 32 2.0 5.7YB013 32 34 2.0 25.1YB013 34 36 2.0 31.8YB013 36 38 2.0 64.1YB013 38 40 2.0 65.2YB013 40 42 2.0 25.9YB013 42 44 2.0 10.3YB013 44 46 2.0 5.2YB013 46 48 2.0 7.1YB013 48 50 2.0 7.1YB013 50 52 2.0 6.7YB013 52 54 2.0 7.2YB013 54 56 2.0 6.9YB013 56 58 2.0 6.5YB013 58 60 2.0 6.3YB013 60 62 2.0 5.9YB013 62 64 2.0 5.8YB013 64 66 2.0 5.8YB013 66 68 2.0 5.4YB013 68 70 2.0 5.9YB013 70 72 2.0 6.8YB013 72 74 2.0 7.2YB013 74 76 2.0 6.2YB013 76 78 2.0 5.3YB013 78 80 2.0 5.4YB013 80 82 2.0 5.9YB013 82 84 2.0 5.8YB013 84 86 2.0 5.9YB013 86 88 2.0 4.9YB013 88 90 2.0 4.3YB013 90 92 2.0 4.2YB013 92 94 2.0 4.5YB013 94 96 2.0 5.8YB013 96 98 2.0 5.7YB013 98 100 2.0 4.7YB013 100 102 2.0 4.1YB013 102 104 2.0 4.6YB013 104 106 2.0 4.5YB013 106 108 2.0 4.2YB013 108 110 2.0 5.9YB013 110 112 2.0 5.9YB013 112 114 2.0 6.2YB013 114 116 2.0 6.0YB013 116 118 2.0 5.2YB013 118 120 2.0 5.7YB013 120 122 2.0 4.1YB013 122 124 2.0 2.9

Hole ID From (m) To (m) Interval (m) Grade %Fe total

YB013 124 126 2.0 3.9YB013 126 128 2.0 4.1YB013 128 130 2.0 3.3YB013 130 132 2.0 4.0YB013 132 134 2.0 6.5YB013 134 136 2.0 6.9YB013 136 138 2.0 6.9YB013 138 140 2.0 6.5YB013 140 142 2.0 6.3YB013 142 144 2.0 6.6YB013 144 146 2.0 6.6YB013 146 148 2.0 4.9YB013 148 150 2.0 6.4

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YB014 0 2 2.0 6.0YB014 2 4 2.0 6.3YB014 4 6 2.0 5.7YB014 6 8 2.0 32.9YB014 8 10 2.0 10.0YB014 10 12 2.0 20.9YB014 12 14 2.0 30.8YB014 14 16 2.0 7.0YB014 16 18 2.0 7.7YB014 18 20 2.0 29.1YB014 20 22 2.0 7.9YB014 22 24 2.0 8.8YB014 24 26 2.0 7.0YB014 26 28 2.0 7.2YB014 28 30 2.0 5.8YB014 30 32 2.0 5.6YB014 32 34 2.0 6.3YB014 34 36 2.0 5.3YB014 36 38 2.0 5.8YB014 38 40 2.0 6.8YB014 40 42 2.0 6.3YB014 42 44 2.0 6.2YB014 44 46 2.0 5.2YB014 46 48 2.0 5.4YB014 48 50 2.0 6.5YB014 50 52 2.0 5.1YB014 52 54 2.0 4.5YB014 54 56 2.0 4.8YB014 56 58 2.0 5.9YB014 58 60 2.0 6.4YB014 60 62 2.0 6.9YB014 62 64 2.0 7.7YB014 64 66 2.0 7.2YB014 66 68 2.0 5.1YB014 68 70 2.0 4.9YB014 70 72 2.0 12.1YB014 72 74 2.0 8.1YB014 74 76 2.0 5.7YB014 76 78 2.0 4.4YB014 78 80 2.0 6.8YB014 80 82 2.0 6.9YB014 82 84 2.0 5.8YB014 84 86 2.0 5.7YB014 86 88 2.0 6.0YB014 88 90 2.0 6.5YB014 90 92 2.0 5.3YB014 92 94 2.0 4.4YB014 94 96 2.0 5.6YB014 96 98 2.0 6.8YB014 98 100 2.0 6.8


YB014 100 102 2.0 8.1YB014 102 104 2.0 10.1YB014 104 106 2.0 8.1YB014 106 108 2.0 10.2YB014 108 110 2.0 6.0YB014 110 112 2.0 5.5YB014 112 114 2.0 6.6YB014 114 116 2.0 7.5YB014 116 118 2.0 7.7YB014 118 120 2.0 6.8YB014 120 122 2.0 6.3YB014 122 124 2.0 5.6YB014 124 126 2.0 5.9YB014 126 128 2.0 6.3YB014 128 130 2.0 5.2YB014 130 132 2.0 5.0YB014 132 134 2.0 3.5YB014 134 136 2.0 6.8YB014 136 138 2.0 7.1YB014 138 140 2.0 6.2YB014 140 142 2.0 4.8YB014 142 144 2.0 4.3YB014 144 146 2.0 4.1YB014 146 148 2.0 6.4YB014 148 150 2.0 6.3

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YB015 0 2 2.0 6.4YB015 2 4 2.0 6.1YB015 4 6 2.0 6.8YB015 6 8 2.0 6.8YB015 8 10 2.0 10.9YB015 10 12 2.0 30.9YB015 12 14 2.0 26.9YB015 14 16 2.0 18.2YB015 16 18 2.0 32.9YB015 18 20 2.0 6.3YB015 20 22 2.0 4.2YB015 22 24 2.0 3.9YB015 24 26 2.0 4.2YB015 26 28 2.0 4.8YB015 28 30 2.0 4.8YB015 30 32 2.0 4.7YB015 32 34 2.0 5.9YB015 34 36 2.0 60.9YB015 36 38 2.0 54.7YB015 38 40 2.0 54.8YB015 40 42 2.0 20.9YB015 42 44 2.0 11.4YB015 44 46 2.0 30.7YB015 46 48 2.0 54.9YB015 48 50 2.0 32.9YB015 50 52 2.0 48.9YB015 52 54 2.0 47.6YB015 54 56 2.0 34.0YB015 56 58 2.0 15.0YB015 58 60 2.0 29.9YB015 60 62 2.0 26.9YB015 62 64 2.0 23.1YB015 64 66 2.0 8.7YB015 66 68 2.0 16.5YB015 68 70 2.0 7.7YB015 70 72 2.0 8.5YB015 72 74 2.0 8.0YB015 74 76 2.0 6.2YB015 76 78 2.0 4.0YB015 78 80 2.0 5.3YB015 80 82 2.0 4.1YB015 82 84 2.0 4.3YB015 84 86 2.0 4.6YB015 86 88 2.0 3.8YB015 88 90 2.0 3.4YB015 90 92 2.0 5.1YB015 92 94 2.0 4.7YB015 94 96 2.0 4.8YB015 96 98 2.0 5.5YB015 98 100 2.0 7.1


YB015 100 102 2.0 4.7YB015 102 104 2.0 9.7YB015 104 106 2.0 11.6YB015 106 108 2.0 7.3YB015 108 110 2.0 8.8YB015 110 112 2.0 11.5YB015 112 114 2.0 6.6YB015 114 116 2.0 6.8YB015 116 118 2.0 7.1YB015 118 120 2.0 5.5YB015 120 122 2.0 3.9YB015 122 124 2.0 3.8YB015 124 126 2.0 6.0YB015 126 128 2.0 6.5YB015 128 130 2.0 6.3YB015 130 132 2.0 4.2YB015 132 134 2.0 3.4YB015 134 136 2.0 2.7YB015 136 138 2.0 3.3YB015 138 140 2.0 4.9YB015 140 142 2.0 5.7YB015 142 144 2.0 5.0YB015 144 146 2.0 5.4YB015 146 148 2.0 6.3YB015 148 150 2.0 5.8

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YB022 0 2 2.0 4.8YB022 2 4 2.0 5.1YB022 4 6 2.0 6.2YB022 6 8 2.0 6.7YB022 8 10 2.0 5.4YB022 10 12 2.0 6.7YB022 12 14 2.0 15.1YB022 14 16 2.0 14.8YB022 16 18 2.0 15.6YB022 18 20 2.0 17.1YB022 20 22 2.0 21.6YB022 22 24 2.0 34.6YB022 24 26 2.0 17.1YB022 26 28 2.0 18.2YB022 28 30 2.0 14.6YB022 30 32 2.0 20.1YB022 32 34 2.0 17.5YB022 34 36 2.0 17.3YB022 36 38 2.0 17.1YB022 38 40 2.0 17.1YB022 40 42 2.0 33.2YB022 42 44 2.0 37.8YB022 44 46 2.0 18.4YB022 46 48 2.0 14.5YB022 48 50 2.0 11.6YB022 50 52 2.0 8.8YB022 52 54 2.0 6.0YB022 54 56 2.0 5.8YB022 56 58 2.0 5.8YB022 58 60 2.0 18.1YB022 60 62 2.0 11.3YB022 62 64 2.0 5.3YB022 64 66 2.0 5.6YB022 66 68 2.0 13.8YB022 68 70 2.0 8.0YB022 70 72 2.0 8.8YB022 72 74 2.0 9.2YB022 74 76 2.0 16.6YB022 76 78 2.0 15.8YB022 78 80 2.0 22.1YB022 80 82 2.0 9.2YB022 82 84 2.0 15.0YB022 84 86 2.0 15.6YB022 86 88 2.0 19.9YB022 88 90 2.0 14.3YB022 90 92 2.0 9.4YB022 92 94 2.0 7.0YB022 94 96 2.0 14.6YB022 96 98 2.0 13.1YB022 98 100 2.0 8.1YB022 100 102 2.0 5.1YB022 102 104 2.0 5.8YB022 104 106 2.0 7.0YB022 106 108 2.0 7.7YB022 108 110 2.0 5.1


YB022 110 112 2.0 4.4YB022 112 114 2.0 5.0YB022 114 116 2.0 6.8YB022 116 118 2.0 6.4YB022 118 120 2.0 6.5YB022 120 122 2.0 6.7YB022 122 124 2.0 6.9YB022 124 126 2.0 6.5YB022 126 128 2.0 6.2YB022 128 130 2.0 7.3YB022 130 132 2.0 5.6YB022 132 134 2.0 6.6YB022 134 136 2.0 7.3YB022 136 138 2.0 7.2YB022 138 140 2.0 6.4YB022 140 142 2.0 7.2YB022 142 144 2.0 7.7YB022 144 146 2.0 7.4YB022 146 148 2.0 8.4YB022 148 150 2.0 14.2YB022 150 152 3.0 7.3YB022 152 154 4.0 5.6YB022 154 156 5.0 7.6YB022 156 158 6.0 5.4YB022 158 160 7.0 3.8YB022 160 162 8.0 10.2YB022 162 164 9.0 5.5YB022 164 166 10.0 4.6YB022 166 168 11.0 4.7YB022 168 170 12.0 5.6

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YB023 0 2 2.0 5.0YB023 2 4 2.0 4.6YB023 4 6 2.0 4.9YB023 6 8 2.0 5.3YB023 8 10 2.0 3.8YB023 10 12 2.0 5.1YB023 12 14 2.0 5.3YB023 14 16 2.0 5.0YB023 16 18 2.0 10.7YB023 18 20 2.0 6.6YB023 20 22 2.0 6.1YB023 22 24 2.0 6.3YB023 24 26 2.0 5.8YB023 26 28 2.0 6.8YB023 28 30 2.0 6.2YB023 30 32 2.0 6.8YB023 32 34 2.0 7.8YB023 34 36 2.0 10.0YB023 36 38 2.0 8.9YB023 38 40 2.0 7.5YB023 40 42 2.0 6.7YB023 42 44 2.0 6.6YB023 44 46 2.0 7.4YB023 46 48 2.0 6.7YB023 48 50 2.0 6.7YB023 50 52 2.0 6.3YB023 52 54 2.0 7.5YB023 54 56 2.0 6.4YB023 56 58 2.0 5.6YB023 58 60 2.0 5.9YB023 60 62 2.0 5.7YB023 62 64 2.0 5.8YB023 64 66 2.0 5.9YB023 66 68 2.0 8.2YB023 68 70 2.0 9.8YB023 70 72 2.0 11.9YB023 72 74 2.0 19.6YB023 74 76 2.0 25.1YB023 76 78 2.0 16.1YB023 78 80 2.0 13.9YB023 80 82 2.0 13.9YB023 82 84 2.0 24.1YB023 84 86 2.0 15.1YB023 86 88 2.0 6.2YB023 88 90 2.0 6.6YB023 90 92 2.0 7.8YB023 92 94 2.0 5.5YB023 94 96 2.0 5.7YB023 96 98 2.0 5.4YB023 98 100 2.0 5.9YB023 100 102 2.0 5.5YB023 102 104 2.0 6.3YB023 104 106 2.0 6.8YB023 106 108 2.0 7.0YB023 108 110 2.0 7.2YB023 110 112 2.0 7.2YB023 112 114 2.0 7.0YB023 114 116 2.0 6.2YB023 116 118 2.0 6.0YB023 118 120 2.0 6.0YB023 120 122 2.0 5.9YB023 122 124 2.0 4.7YB023 124 126 2.0 6.5


YB023 126 128 2.0 5.9YB023 128 130 2.0 9.2YB023 130 132 2.0 11.1YB023 132 134 2.0 7.7YB023 134 136 2.0 8.0YB023 136 138 2.0 5.2YB023 138 140 2.0 10.9YB023 140 142 2.0 10.4YB023 142 144 2.0 23.5YB023 144 146 2.0 6.9YB023 146 148 2.0 6.0YB023 148 150 2.0 4.6YB023 150 152 3.0 6.7YB023 152 154 4.0 5.4YB023 154 156 5.0 6.7YB023 156 158 6.0 5.5YB023 158 160 7.0 5.6YB023 160 162 8.0 6.2YB023 162 164 9.0 8.4YB023 164 166 10.0 7.3YB023 166 168 11.0 5.1YB023 168 170 12.0 8.4YB023 170 172 13.0 7.5YB023 172 174 14.0 24.1YB023 174 176 15.0 15.1YB023 176 178 16.0 13.3YB023 178 180 17.0 12.9YB023 180 182 18.0 12.2YB023 182 184 19.0 3.0YB023 184 186 20.0 2.7YB023 186 188 21.0 2.9YB023 188 190 22.0 3.0YB023 190 192 23.0 4.0YB023 192 194 24.0 4.1YB023 194 196 25.0 3.1YB023 196 198 26.0 6.3YB023 198 200 27.0 6.3YB023 200 202 28.0 11.9YB023 202 204 29.0 4.5YB023 204 206 30.0 6.9YB023 206 208 31.0 30.1YB023 208 210 32.0 9.5YB023 210 212 33.0 8.4YB023 212 214 34.0 7.1YB023 214 216 35.0 8.2YB023 216 218 36.0 13.9YB023 218 220 37.0 14.1YB023 220 222 38.0 9.3YB023 222 224 39.0 5.6YB023 224 226 40.0 5.1YB023 226 228 41.0 5.3YB023 228 230 42.0 5.1YB023 230 232 43.0 5.1YB023 232 234 44.0 5.8YB023 234 236 45.0 13.4YB023 236 238 46.0 8.9YB023 238 240 47.0 5.1YB023 240 242 48.0 7.4YB023 242 244 49.0 5.7YB023 244 246 50.0 6.1YB023 246 248 51.0 3.6YB023 248 250 52.0 6.7

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FREEHILL MINING LIMITED

JORC Code, 2012 Edition – Table 1 report Freehill Mining Limited

Section 1 Sampling Techniques and Data Criteria JORC Code explanation Commentary

Sampling 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.

• Reverse circulation drilling carried out by Major Drilling Group to obtain 2m samples. Samples split using a riffle splitter and both halves weighed accurately and the assay portion bagged immediately.

• Magnetic susceptibility measurements taken on all samples whilst at the drill rig and recorded.

• Raw drill samples delivered to laboratory, total sample dried, crushed to ¼”, then Boyd crusher to 10# and then 800g subsample pulverized to 200# (75microns.

• Assaying done by four acid digestion and either titration or AAS for total iron

• Samples also treated by Davis Tube, XRF and Magnasat

Drilling techniques

• 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).

• Reverse Circulation using 51/2 “ hammer

• Schramm T685 drill rig

Drill sample recovery

• 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.

• All sample weighed using platform scales at drill rig and continuously recorded

• Samples taken in 2m intervals • Sample recovery varied between

88% and 105% of theoretical with a mean of 94%

Logging • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

• The total length and percentage of the relevant intersections logged.

• All sample intervals logged by a qualified geologist with experience in magnetite deposits in Chile to a level appropriate with the style of mineralization

• Logging was both qualitative and quantitative

• Lithology, alteration, mineralization level & magnetic susceptibility all logged

Sub-sampling techniques and sample preparation

• If core, whether cut or sawn and whether quarter, half or all core taken.

• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

• For all sample types, the nature, quality and appropriateness of the sample preparation technique.

• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

• Whether sample sizes are appropriate to the grain size of the material being sampled.

• Sample passed through a riffle splitter at the drill rig directly from cyclone into splitter and both splits immediately weighed and assay split bagged.

• The method of splitting was deemed appropriate for iron mineralization. Samples were dry 90% of the time

• Duplicate samples taken at the rate of 5% and submitted to laboratory

Quality of assay data and laboratory tests

• 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,

• Ore preparation and the assaying methods and procedures were deemed appropriate for magnetite iron analysis and recovery assessment

• Handheld field magnetic susceptibility meter used for indicative and backup

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Criteria JORC Code explanation Commentary

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.

measurement • Duplicate samples taken at the rate of

5% at drill rig splitting stage • Blanks submitted to laboratory at the

rate of 5% of total sample number • Certified standards of two different

grades submitted to laboratory at 5% of total sample number

• Laboratory also ran internal blanks, duplicates and standards for all assay methods

• Intertek Chile laboratory used for all assay. Laboratory is ISO 9001accredited

Verification of sampling and assaying

• 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.

• Significant intersections were verified by magnetic susceptibility meter and visual colour assessment

• No twinned holes were done • All drill holes were logged onsite by

geologists and entered into a computer database by the geologists

• Both analogue and digital versions of all drilling logs, geological logs etc stored in multiple backup locations

• No adjustments were made to assay data

Location of data points

• 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.

• Drill hole locations initially located using a Garmin handheld GPS and subsequently collars and coordinates surveyed by Geodesica V60 Trimble 220 system DGPS

• Topographic drone survey carried out over a portion of the exploration area that was being actively mined

• All holes were ‘downhole’ surveyed using a Reflex Ezy-Gyro instrument to confirm drill trajectory

• All digital data, maps and data products reporting are provided in coordinate system: datum WGS84 and projection UTM zone 19S.

Data spacing and distribution

• 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.

• Data spacing and distribution is NOT suffiecient for Mineral Resource Estimation.

• No sample compositing has been applied.

Orientation of data in relation to geological structure

• 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 holes presented in this report are aligned approximately along strike of the main magnetic depositional structure

• Hole positions are not considered to have introduced a sampling bias

Sample security

• The measures taken to ensure sample security. • Chain of custody strictly controlled and all samples in the possession of drilling contractor or company geologists at all times until fully logged.

• Samples then loaded onto a laboratory truck with full manifest and taken to Intertek laboratory where they were bar coded upon receival

Audits or reviews

• The results of any audits or reviews of sampling techniques and data.

• No audit of data has been completed to date

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Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.)


Mineral tenement and land tenure status

• 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.

• The Yerbas Buenas Project is located on licenses held through Chilean subsidieries in which Freehill Investments currently has a 50% interest. Licenses are numbers 04102-2723-1, 04102-2714-2, 04102-2715-0, 04102-2755-K, 04102-2937-4 and total 398 hectares

• Freehill Investments Pty Ltd has a right to aquire the remaining 50% interest in these subsidiaries. The licences allow for the extraction of up to 5000 tonnes per month and Sernageomin, the Chiliean mining authority, provided approval for expanded production to 9,600 tonnes per month;

Exploration done by other parties

• Acknowledgment and appraisal of exploration by other parties.

• Two Reverse Circulation drill holes-SDHYB1101 & 1102- completed by previous tenement holder Compania Mineria del Pacifico (CMP-CAP) in 2011 and referred to in prospectus section 2.5 of IGR

• Holes drilled to 101m & 150m, Dip 70 degrees, azimuth 119, E6,723,594 N279,725 & E6,723,564 N279,758

• Complete drill hole assays provided by CAP, photographs of drilling activity and hole collars, geophysics by Geoexploracoiones,

• Samples assyed for Total %Fe and % magnetocs by Davis Tube.

• 50m line spaced ground magnetics survey completed over 800mx800m in 2010 by Geoexploraciones

Geology • Deposit type, geological setting and style of mineralisation.

• The deposit occurs within the El Tofo and Atacama Fault region with those projects lying along the El Tofo Fault being primarily iron bearing whilst those along the Atacama Fault tending to be predominantly copper bearing. The central area is characterised by three dominant intrusive structures.The structural setting is one of NE-SW trending subvertical tabular bodies with apatite the primary gangue. The primary intrusives unit is a diorite with veins of quartz-magnetite, disseminated magnetite. Andesitic porphyry occurs with abundant biotite, quartz with magnetite as well as hydrothermal breccia with magnetite. Yerbas Buenas shows some evidence evidence of IOCG mineralization.

Drill hole Information

• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above

sea level in metres) of the drill hole collar

• Hole positions and geometry for drill holes discussed in this media release have been shown in table 2 in body of report.

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o dip and azimuth of the hole o down hole length and interception depth o hole length.

• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

Data aggregation methods

• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

• The assumptions used for any reporting of metal equivalent values should be clearly stated.

• No weighted averages have been applied to the raw total iron results

Relationship between mineralisation widths and intercept lengths

• 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’).

• No material information is excluded. • Mineralisation geometry is estimated to

be horizontal and tabular. • It has been deemed that a drill hole

angle of -90° is optimal • Down hole widths are considered as

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.

• Plan, cross section and general site maps provided in report as Figures 1,2 & 3

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.

• This document is considered to be a balanced report of the magnetic structure being reported and discussed in this report.

Other substantive exploration data

• 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.

• All geophysical in the form of Ground magnetics data previously reported already

• No bulk sampling or other testing available

Further work • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

• Drilling of the YB6 structure was a first pass and conducted as a ground truthing exercise to validate the results of detailed ground magnetics.

• Planning has commenced for a more detailed drilling program during the latter half of 2019 to define a Resource

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Freehill Intersects 18m of Near Pure Magnetite at >63% Fe ... · Table 4 - Davis Tube analysis of a...

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