Mineral Reserves

Ore Reserves have been estimated for all four historical tailings dumps in Mundic Gully, Red Oxide, No 2 Mill and Shepherds (ASX: December 8, 2016).

Mount Morgan Project Ore Reserve Estimate 20161

carbine-reserves-table

Table Notes:

  1. Please refer to Competent Persons statements; this estimate has been prepared in accordance with JORC Code (2012) guidelines. Further details for the estimate can be found in ASX announcement: December 8, 2016.
  2. AuEq (g/t) refers to the calculated Au equivalent grade formula for which is stated below.
  3. PyriteEq (wt %) refers to the calculated pyrite equivalent grade formula for sulphide ore, which is stated below.
  4. Some discrepancies in total may occur due to the rounding of numbers.

Mineral Resources

Updated Mineral Resource estimates have been prepared for the No 2 Mill, Mundic Gully, Red Oxide, Shepherds, Mount Morgan Open Pit and Sandstone Gully tailings dumps (ASX: 18 July 2016, 27 July 2016,1 August 2016, 9 August 2016 and 30 August 2016).

Mount Morgan Tailings Mineral Resource Summary

carbine-resources-table

Table Notes:

  1. Carbine Resources Limited ASX announcements 18 July 2016, 27 July 2016, 1 August 2016, 9 August 2016, 16 August 2016 and 30 August 2016.
  2. Rounding errors can occur.
  3. The Mineral Resources listed in this table are inclusive of Ore Reserves.

Exploration Target

An update to the Mount Morgan Exploration Target has also been completed in conjunction with this 2016 Carbine Resource Estimate Update (ASX: 30 August 2016).  This update involved a detailed review of previous studies, the existing and new Mineral Resource estimates, all known historical drill and trench data, historical reports, plans and site photos, and visual site inspection of all visible mine dumps.

 Carbine 2016 Exploration Target Summary

carbine-exploration-target-table

Table Notes:

  1. The potential quality and grade of the Exploration Target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resources and it is uncertain if further exploration will result in the estimation of the Mineral Resource.
  2. Rounding errors will occur.

 Competent Person Statement

Exploration Targets, Exploration Results, Mineral Resources

The information in this report that relates to Exploration Targets, Exploration Results and the Inferred Mineral Resources for Mount Morgan In-Pit and Sandstone Gully is based on, and fairly represents, information and supporting documentation prepared by Mr. C Newman, who is a Competent Person according to the JORC 2012 Code.  Mr. C Newman is a fulltime employee of Carbine Resources and a Fellow of the Australasian Institute of Mining and Metallurgy.  He has sufficient experience that is relevant to the style of mineralization and the 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 Exploration Results, Mineral Resources and Ore Reserves’.  The information in this report is extracted from previous company releases ‘ASX: 16 August 2016 and 30 August 2016’, and is available to view on the Carbine Resources website.  The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.  The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. 

The information in this report that relates to the Mineral Resources for Mundic Gully, Shepherds Gully, No 2 Mill and Red Oxide is based on information compiled by Dr M. Abzalov, who is a Competent Person according to the JORC 2012 Code.  Dr M. Abzalov is a Fellow of the Australasian Institute of Mining and Metallurgy.  He has sufficient experience in estimation of resources of gold mineralisation, and has a strong expertise in the all aspects of the 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 M. Abzalov is independent consultant, contracted to Carbine Resources for providing the technical guidelines for resource definition drilling at the Mount Morgan tailings project and in estimating the Mineral Resources. The information in this report is extracted from previous company releases ‘ASX: 18 July 2016, 27 July 2016, 1 August 2016 and 9 August 2016, and is available to view on the Carbine Resources website.  The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.  The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. 

Ore Reserves

The information in this report that relates to Mineral Reserves for Mount Morgan is based on, and fairly represents, information and supporting documentation prepared by Mr. A James, who is a Competent Person according to the JORC 2012 Code.  Mr. A James is a fulltime employee of Carbine Resources as the Managing Director of the Company and he holds shares in the Company.  He is a Fellow of the Australasian Institute of Mining and Metallurgy.  He has sufficient experience that is relevant to the style of mineralization and the 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 Exploration Results, Mineral Resources and Ore Reserves’.  Mr. A James consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Metal Equivalents

AuEq was calculated for each ore source based on the different metallurgical recoveries associated with those ore sources established from detailed metallurgical test work (refer to Section 6 for further details).  A combined total AuEq was also determined for representation of the combined effect of the four different ore sources.  The following formulas show the various calculations for the AuEq values seen in this announcement.  The AuEq value is determined by multiplying the recovered metal by the metal prices and dividing by the gold price to determine the equivalent gold grade. Consideration is also given to the fact that the end product for copper is copper sulphate and for pyrite is pyrite concentrate.  The total AuEq is determined by taking a weighted average of the four separate AuEq grades.

Mundic Gully AuEq = Au (g/t) + Cu (%)*172.11 + PyriteEq (wt%)*1.30

No 2 Mill AuEq = Au (g/t) + Cu (%)*172.76 + PyriteEq (wt%)*1.73

Red Oxide AuEq = Au (g/t) + Cu (%)*122.83

Shepherds AuEq = Au (g/t) + Cu (%)*138.83 + PyriteEq (wt%)*1.79

Metal prices used in this calculation are US$1,200/oz gold, US$60/t unroasted iron pyrite for years 1 and 2 and US$80/t thereafter, A$5,800/t copper.  Copper sulphate revenue is based on copper LME price for approximately 25% copper grade plus A$500/t premium for copper sulphate.  Metal recoveries are provided in Section 6.   It is Carbine’s view that all the metals included within this formula are expected to be recovered and sold.

27th February 2017