PDI-TORO JV SHARPENS FOCUS WITH MAJOR DRILLING PROGRAM · PDI-TORO JV SHARPENS FOCUS WITH MAJOR...

16 January 2019

PDI-TORO JV SHARPENS FOCUS WITH MAJOR DRILLING

PROGRAM HIGHLIGHTS

• The Predictive/Toro Gold Joint Venture has focused its Cote D’Ivoire exploration activity on its

Boundiali and Ferkessedougou North Projects with Boundiali assessed as the most likely to advance

rapidly towards resource definition.

• 10,000m of RC and diamond drilling will commence at Boundiali in the March Quarter.

• At Ferkessedougou North, an IP survey identified a 1.5km long chargeable trend, correlating with

gold mineralisation, on which trenching is currently underway. Drilling is likely to begin later in the

field season.

• To facilitate progress at Boundiali and Ferkessedougou North, further work on non-core Joint

Venture properties will be limited and some ground may be surrendered, consistent with Predictive’s

business model.

• The Company has decided to reduce its equity in the Toro JV to 30% (from 35%) via non-

contribution of expenditure for the past 6 months. Through this decision, receipt of cash from the

Bobosso transaction along with careful control of exploration expenditure in Guinea and Mali, the

Company now holds more cash (A$1.5M) than it had at the end of the September Quarter.

Predictive Discovery Limited (“Predictive” or “Company”) is pleased to provide an update on the

Predictive/Toro Gold Joint Venture exploration program in Cote D’Ivoire. In the 2019 field season, the Joint

Venture will focus exploration activities on the Boundiali and Ferkessedougou North Projects.

Approximately 10,000 metres of Reverse Circulation (RC) and diamond drilling is programmed to begin in

the March Quarter with further drilling expected later in the field season.

“At our most recent JV meeting, it was agreed that Boundiali and Ferkessedougou North represent the best

opportunities for making a multi-million-ounce discovery. An initial 10,000m drill program is planned to

target both the 6km-long Nyangboue gold-in-soil anomaly (on Boundiali) and the 14km-long Boundiali

North soil anomaly. With excellent results so far including 30m at 8.3g/t Au and 20m at 10.5g/t Au1 and

only 2km of the 20km of gold-in-soil anomalies drill tested, Boundiali remains underexplored and offers a

strong opportunity to expand the known gold mineralised zones in 2019. Another key target is the recent

gold discovery at Ferkessedougou North, which is currently being tested by trenching and likely to be

followed up by drilling later in the field season.

Our decision to reduce equity in the Toro JV balanced retention of cash reserves in the light of the current

unfavourable equity market against maximising our JV share. We believe that this decision is in the best

interest of shareholders by minimising the need for a dilutive capital raising while holding our JV equity at

our target level of 30%” - said Paul Roberts, Managing Director.

1ASX Release - 30m at 8.3 g/t Au from Boundiali, Cote D’Ivoire

http://www.investi.com.au/api/announcements/pdi/9d7ee0bf-2a8.pdf

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BOUNDIALI PROJECT

The Boundiali and Boundiali North permits represent the highest-priority exploration targets for the 2019

field season with 10,000m of initial drilling planned on both permits including reconnaissance RC drilling

to test the stronger Boundiali North soil anomalies.

At Boundiali North, drilling will focus on the recently discovered 14km-long gold anomalous zone (Figure

1) with results from the recent soil sampling programs2 increasing the prospects for a large-scale gold

discovery with several large and coherent high-grade anomalies including:

• Northern Zone: 1.5km long, 900m wide, peak values of 707ppb and 579ppb Au

• Central zone: 2.7km long, with peak values of 317ppb, 414ppb

Figure 1 - Boundiali and Boundiali North highlighting large gold soil anomalies within 14km long zone in Boundiali

North (white outlines). The grey ellipse covers the 6km long Nyangboue anomaly.

2 ASX Announcement – BOUNDIALI NORTH - LARGE COHERENT GOLD SOIL ANOMALIES WITHIN 14KM LONG ZONE https://www.investi.com.au/api/announcements/pdi/303be473-e42.pdf

https://www.investi.com.au/api/announcements/pdi/303be473-e42.pdf

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At Boundialli, Infill drilling on the Nyangboue prospect (Figure 2) will build on the previous RC and

diamond drilling programs which identified a 1.2 km long gold mineralised zone3 with broad widths,

visible gold and high-grade results including:

• NDC007 - 30m at 8.3g/t Au from 39m, including 1.5m at 56.9g/t Au and 1.5m at 39.3g/t Au

• BRC003 - 28m at 4.0g/t Au from 3m, including 1m at 49.7g/t Au

• BRC004BIS (twin hole) - 20m at 10.45g/t Au from 38m including 1m at 145.5g/t Au

• BRC006 - 9m at 7.9 g/t Au from 99m including 1m at 44.7g/t Au

Figure 2 - Nyangboue Prospect RC and diamond drill results superimposed on soil geochemical map

Of the 6km long Nyangboue gold-in-soil anomalous zone, 4km remains untested by drilling.

Predictive obtained the Boundiali permit in January 2014 and the Boundiali North permit was granted in

April 2018. The Boundiali and Boundiali North permits are located within a very well mineralised

greenstone belt which contains the large operating Tongon and Syama gold mines and consists of granite,

metasediments (including conglomerates), mafic volcanics and intrusives.

3 ASX Announcement - Drilling Extends Boundiali Gold Mineralised Zone to at least 1.2km https://www.investi.com.au/api/announcements/pdi/c54f2535-1b4.pdf

https://www.investi.com.au/api/announcements/pdi/c54f2535-1b4.pdf

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FERKESSEDOUGOU NORTH PROJECT

In 2016, soil sampling at Ferkessedougou North4 revealed a 17km long zone of gold-in-soil anomalies,

with only a small portion receiving drill testing. The widespread gold mineralisation is located in altered

sheared granite bodies, with one zone in the southern part of the zone in which gold mineralisation has

been drilled over more than 1 km of strike with the best intercept from hole FNRC016 with 25m at

3.06g/t Au from 64m5, including 4m at 13.78g/t Au, within an 80m wide zone of lower-grade gold

mineralisation.

A recently completed gradient array Induced Polarisation (IP) survey over the southern gold mineralised

zone (Figure 3) has demonstrated a clear spatial correlation between mineralisation identified in previous

drilling and a 1.5km long IP (chargeability) anomaly. The survey also identified other chargeability

anomalies indicating potential for more gold mineralisation to the east and west of the drilled zone.

More information about the IP survey is reported in the Appendix. Trenching is in progress on the new IP

anomalies with results to be assessed in combination with previous drill results to identify key targets for a

future drilling program.

Figure 3 – Southern Gold Prospect, Ferkessedougou North, showing previous drill results and IP (chargeability)

anomalies

4 ASX Announcement – 17km Long gold-anomalous soil trend on new Cote D’Ivoire permit https://www.investi.com.au/api/announcements/pdi/3477a0e2-45f.pdf 5 ASX Announcement – Assays Confirm and Expand New Gold Discovery in Cote D’Ivoire

http://www.investi.com.au/api/announcements/pdi/9bee2336-4da.pdf

https://www.investi.com.au/api/announcements/pdi/3477a0e2-45f.pdf

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OTHER PROJECTS

Recent drill results at Kokoumbo have emphasised the complexity of the geology there. While drill assays

have demonstrated significant gold on both the Kokoumbo and Beriaboukro permits, further work is

needed to achieve the targeted one-milllion-ounce discovery that the Joint Venture partners require.

The Joint Venture will consider its options at Kokoumbo over the coming months, allowing work at

Boundiali and Ferkessedougou North to be accelerated.

TORO JOINT VENTURE UPDATE

Predictive has made the strategic decision not to contribute its 35% share of exploration expenditure for

the six months to December 2018 in order to restrict cash outflows at a time when raising capital based on

an acceptable share price is difficult. Consequently, the Company’s cash holdings at the end of December

2018 were A$1.5 million, $0.1 million more than the cash held at the end of the September Quarter.

Predictive’s equity in the JV has therefore been reduced from 35% to approximately 30%. A 30% stake

reflects the Company’s ideal equity structure and contribution at the lower equity will help with future calls

on Predictive’s cash position.

Joint Venture exploration work for the current field season will be very largely confined to the Boundiali

and Ferkessedougou North Projects. Some permits may be surrendered, allowing maximum focus on

Boundiali and Ferkessedougou North. This turnover of permits is entirely consistent with the prospect

generator model of and allows the Company to focus its expenditure only on the highly prospective

targets.

- END -

For further information please contact:

Paul Roberts Bruce Waddell

Managing Director Company Secretary

Tel: +61 402 857 249 Tel: +61 8 6143 1840

Email: [email protected] Email: [email protected]

APPENDIX – IP Survey Details

Section 1: Sampling Techniques and Data

Criteria

JORC Code

Explanation

Commentary

Sampling Technique 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

downhole gamma sondes, or

handheld XRF instruments, etc).

These examples should not be

taken as limiting the broad

Not applicable – this release refers to a ground geophysical survey.

mailto:[email protected]

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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.

Drilling

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).


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.


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Logging

Whether core and chip samples have been geologically and geotechnical 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/Trench, channel, etc) photography.

The total length and percentage of the relevant intersections logged.


Sub-Sampling Technique 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.


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, 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


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precision have been

established.

Verification of Sampling and Assaying

The verification of significant intersections by either independent or alternative company personnel.

The use of twinned holes The verification of significant intersections by either independent or alternative company personnel. Discuss any adjustment to assay data


Location of Data points

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.

Specification of the grid

system used Quality and

adequacy of topographic

control

GPS navigation was used to locate data points.

Grid details: WGS84 datum, Zone 30 North.

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

Gradient array IP station spacing was 100 x 25m. A subsequent

three line pole-dipole survey used a station spacing of 50m

(a=50m, n=10).

No information is reported that is relevant to a Mineral

Resource of Reserve estimation.

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

The gradient array and pole-dipole lines were orientated east-south-

east in order to image north-north-east trending structures

identified in geological mapping and an aeromagnetic survey.

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structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

Sample Security

The measures taken to ensure sample security

Not applicable – this release refers to a ground geophysical

survey.

Audits or Reviews

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

No audits or reviews of sampling techniques and data have

been undertaken.

Section 2 Reporting of Exploration Results 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 Ferkessedougou North exploration permit was granted to

GIV Minerals SARL in 2015. Predictive Discovery Cote D’Ivoire

SARL may earn a 51% interest by spending US$1 million and 85%

by completing a DFS. Predictive Discovery Limited holds

approximately 30% of Predictive Discovery Cote D’Ivoire SARL.

Exploration Done by Other Parties

Acknowledgment and appraisal of exploration by other parties.

Information about previous exploration work has not been found.

Geology Deposit type, geological setting and style of mineralisation.

The geology of the Ferkessedougou North permit consists of

foliated metasediments, granite, granodiorite and lesser amounts

of probable mafic volcanics and mafic intrusives.

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:

• 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


survey.

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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.


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’).


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.

An appropriate map is included – Figure 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.


survey.

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 relevant exploration data is either reported in this release or

has been reported previously and is referred to in the release.

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Further Work The nature and scale of planned further work (eg tests for lateral 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.

Trenching to test IP targets generated by this survey is currently in

progress.

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