29 July 2013

Via ASX Online

Manager
Company Announcements Office
Australian Securities Exchange
Chatree 2013 Mineral Resources & Ore Reserves

Kingsgate Consolidated Limited (ASX: KCN) is pleased to advise that it has increased the gold Mineral
Resource inventory and Ore Reserves at Chatree, after mine depletion, over the 10 months to end April
2013.
Chatree Mineral Resources at 0.30g/t gold cut-off grade are now estimated at 4.03 million ounces of
gold, an increase of over 9%, including mining depletion, compared to the June 2012 estimate of 3.81
million ounces of gold. The major positive changes relate to the results from a strategic drilling program
that commenced at Chatree in late 2012 that has led to an upgrade in the resource model.
Chatree Ore Reserves at 0.35g/t gold are now estimated at 1.82 million ounces gold compared to 1.73
million ounces gold in 2012 at 0.30g/t gold cut-off grade. This is an increase in gold of 13% before
mining depletion of approximately 122,000 ounces of gold. The mining depletion has been more than
offset by the upgrade to the resource model and new pit designs. Higher costs have resulted in an
increase in the cut-off grade from 0.30 to 0.35g/t gold. The overall changes have resulted in a
decrease in reserve tonnes albeit at a higher average gold grade and consequent increase in reserve
ounces.
The Mineral Resources and Ore Reserves have been reported according to the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 edition).
Gavin Thomas, Kingsgates Managing Director and Chief Executive Officer, said the increase in
resources and reserves at Chatree is a great outcome and continues to justify our long-held confidence
in the mines world class standing.
Given the opportunity and nature of our planned drilling programs we are confident that the resources
will continue to grow into the future.


Gavin Thomas
Managing Director & CEO
Kingsgate Consolidated Limited



Chatree 2013 Mineral Resources and Ore Reserves Statement
As at 30 April 2013 Mineral Resources at Chatree at 0.30g/t gold cut-off grade total 4.03 million ounces of gold
and 32.8 million ounces of silver in 188.3 million tonnes with corresponding Ore Reserves at 0.35g/t gold cut-
off grade of 1.82 million ounces of gold and 17.04 million ounces of silver in 69.5 million tonnes of ore.
Tabl e 1: Mi neral Resources, i ncl usi ve of Ore Reserves and Stockpi l es, Chatree Gol d Mi ne
Apri l 2013

Chatree Mineral Resources, April 2013, Inclusive of Ore Reserves & Stockpiles
At 0.30g/t Gold Cut-Off Grade
Category


Tonnes Grade Contained Metal
Gold Silver Gold Silver
(Million) (g/t) (g/t) (M oz) (M oz)
Measured 92.8 0.72 6.60 2.15 19.7
Indicated 49.8 0.64 4.69 1.02 7.51
Inferred 45.7 0.58 3.81 0.85 5.60
Total 188.3
0.66 5.42 4.03 32.8
1. Note: Rounding of some figures may cause numbers not to add correctly.
Mineral Resources
Since estimation of the 2012 Mineral Resources, additional drilling has been included prior to the 2013
estimate. The drilling was part of a strategic exploration program within the mining leases at Chatree that
commenced in late 2012 and was designed to investigate a number of specific areas that had the potential to
upgrade both mineral resources and ore reserves at Chatree and included:
Upgrading Inferred Resources for optimal long term mine planning;
Targeting extensions to currently known areas of mineralisation;
Exploring deeper higher grade structures that may have the potential to extend the pit deeper or
potential for underground mining.
As at the end of April 2013 Recoverable Mineral Resource at Chatree at 0.30g/t cut-off grade totals 4.03
million ounces of gold and 32.8 million ounces silver in 188.3 million tonnes of rock. The upgraded resource,
including depletion from production to the end of April 2013, represents an increase of 356,000 ounces of gold
and 2,162,000 ounces of silver when compared to the June 2012 Mineral Resource estimate for Chatree at
the same cut-off grade.
The increase in the global Mineral Resources at Chatree was most noticeable at the Q Prospect, where recent
drilling encountered significant gold mineralisation at or near the surface. The inclusion of new drilling from A,
D, S and K Prospects, has also had a positive impact on the Mineral Resource Estimate.
Further drilling opportunities are available to target Inferred Resources that lie in close proximity to current pit
designs, within the mining leases. Note also that several new significant intercepts at A Prospect are
identifying new areas of gold mineralization with perceived potential at shallower depths. A drill plan is under
consideration for these areas.
Ore Reserves
Ore Reserves at 0.35g/t gold cut-off grade total 1.82M ounces of gold in 69.5M tonnes of ore at a gold grade
of 0.81 g/t. These ore reserves are based on optimisation of the Mineral Resource model with current costs,
revenue and recovery parameters. The increase in the cut-off grade had resulted in an increase in gold grade
from the mine to 0.85g/t from 0.77g/t gold (excluding stockpiled ore) and a decrease of approximately 1.8M
tonnes of ore. The new pit designs resulted in a decrease in the waste to ore stripping ratio from 3.0:1 to
2.8:1(excluding waste capitalised to TSF #2.)
The 2013 Ore Reserve estimate for Chatree is an increase of 13% in gold ounces compared to the 2012
estimate, pre mining depletion. The total of 1.82M ounces of gold comprises 69.5M tonnes (71.3M tonnes) of
ore at a gold grade of 0.81g/t (0.75g/t). Estimates for 2012 are in brackets.
From the reconciliation graph below, the positive impact of the new resource model, principally driven by the
additional data from the drilling, and new pit designs clearly offset the negative impact of mining depletion and
the higher cut-off grade (COG). The increase in COG was driven by the combined effect of an increase in
costs.



Tabl e 2: Ore Reserves at Chat ree Gol d Mi ne Apri l 2013
Chatree Ore Reserves Inclusive of Stockpiles
At >0.35g/t Gold cut-off grade
Category


Tonnes Grade Contained Ounces
Gold Silver Gold Silver
(Million) (g/t) (g/t) (M Oz) (M Oz)
Proved
Probable
Stockpiles
45.4 0.87 7.8 1.27 11.39
14.8 0.78 6.0 0.37 2.86
9.3. 0.58 9.3 0.17 2.78
Total 69.5 0.81 7.6 1.82 17.04
Notes:
1. Reserves are based on a gold price of US$1,480/oz and a silver price of US$26/oz.
2. All reserves are based on detailed pit designs.
3. Rounding of figures may cause numbers not to add correctly.
Fi gure 1 : Reconci l i at i on of Chat ree 2013 Ore Reserve est i mat i on t o 2012

Competent Persons Statements:
In this report, information concerning Thailand operations relates to Exploration Results, Mineral Resources and Ore
Reserve estimates is based on information compiled by the following Competent Persons: Ron James, Brendan Bradley,
Kevin Woodward and Suphanit Suphananthi who are employees of the Kingsgate Group. All except Brendan Bradley are
members of The Australasian Institute of Mining and Metallurgy; Brendan Bradley is a member of the Australian Institute of
Geoscientists. These people qualify as Competent Persons as defined in the Australasian code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012 edition) and possess relevant
experience in relation to the mineralisation of being reported herein as Exploration Results, Mineral resources and Ore
reserves. Each Competent Person has consented to the Public reporting of these statements and the inclusion of the
material in the form and context in which it appears.
The information in this report that relates to Chatree Recoverable Mineral Resource estimation is based on work that has
been audited by Jonathon Abbott who is a full-time employee of MPR Geological Consultants and a member of the
Australasian Institute of Geoscientists. Mr Abbott has sufficient experience that is relevant to the style of mineralisation and
type of deposit under consideration and to the activity that they are undertaking to qualify as a Competent Person as
defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves. Mr Abbott consents to the inclusion in the report of the matters based on their information in the form and
context in which it appears.

4

ChatreeGoldMine,Thailand
JORCCode2012EditionTable1
Section1:SamplingTechniquesandData
Criteria Commentary
Sampling
techniques
Thedepositwassampledbyacombinationofsurfacediamonddrill(DD)andreversecirculation(RC)holes
SamplingisguidedbytheKingsgateGroupprotocolsandQAQCproceduresasperindustrystandard.
Standardsamples,duplicatedsamplesandblanksamplesareinsertedintotheassaysamplesbatchatleast1inevery25samples.Eachsamplebatchsubmitted
forassayhas100150sampleswithamaximumof250samplesperbatch.AllRCsamplesarethentransportedtotheChatreeMinelaboratoryforassaying.Wet
RCsampleswillbelefttonaturallydrypriorrifflesplitting.
TheChatreeGoldMineisalowsulphidationepithermalgoldsilverdepositandspans2.5by7.5kmcomprisingatleast8goldsilverbearingquartzvein
structures,fiveofwhicharecurrentlybeingminedbyopenpitmethods.Alldepositshavebeendrilledandsampledusingindustrystandardtechniques.ForRC
drilling,asamplefromeachmetreiscollectedfromthecyclonethensplitwitharifflesplittertocreatetworepresentativesamplesof34kginweighteach
(dependingoninitialsamplemass);onesampleissenttothelaboratoryforassayingandtheotherkeptasareferencesample.Diamondcoreisloggedfor
geologyandgeotechnicalcharacteristics.Withtheexceptionofbarrendykeswithinthesystem,diamondcoreistypicallysampledon1metreintervalsand
halvedusingadiamondsaw.Thesampleissendtothelaboratoryforassayingandtheremainingcoreiskeptincoretraysforfuturereference.
Allsamplesaredried,crushedandpulverisedtoget85%passing75microns,witha50gchargeanalysedforgoldbyfireassaytechniquewithAASfinishand
silverbyAAtechnique.
Drilling
techniques
DuringthecourseofexplorationandresourcedevelopmentdrillingattheChatreeGoldMine,twomaintypesofdrillingwereemployed.Thesewereface
samplingreversecirculationdrilling(RC)anddiamonddrilling(DDH).
ThemajorityofDDsamplesarehalfcoresamplesofNQandHQcoresizeandRCsamplesarecollectedbyaconeorrifflesplitterusingafacesamplinghammer
withanominal5.5inchto5.25inchhole.
Thelatestdrilldatabasecomprises691,330metresofdrilling.Thesewerefacesamplingreversecirculationdrilling(RC)of571,861samples(83%)anddiamond
drilling(DDH)of119469samples(17%),someofthedrillinghasbeencarriedoutbymixedequipmentdrilling(RD)andothershavemadedrillingforWater(RW)
whichwassampled.
Atperiodicpointsthroughdrilling,whencompetentcoreisbeingdrilled,coreorientationiscarriedout.Allorientatedcoreisloggedandphotographed.
Drillsample
recovery
RCsamplerecoveryiscalculatedfromweighingthedrysamplepriortorifflesplitting.Thisweightiscomparedwiththecalculatedfullrecoveryweight.Overall
averageRCsamplerecoveryis80%.Somelowersamplerecoveriesarecommonlyfoundinsoftandlesscompetentrocksuchassoil,shearzonesorbrokenrock.
MostRCsampleinChatreearedry,with73%sampleshavingmoisturerecordscompletelydryand27%havemoistureinthesample.
Diamondcorerecoveryisrecordedbythedrillersandcheckedbythefieldgeologist.
AverageDDHcoresamplerecoveryis85%.MostoftheDDHcoreisdrilledfromfreshrockinRCprecollarswheremostoftherockiscompetent.Somelower
DDHcorerecoveriesareassociatedwithshearorbrecciazones,althoughthesearerelativelyuncommonatChatreeandseldomassociatedwithmineralized
zones.

5

Criteria Commentary
OverallthesamplesofRCandDDHshowgoodrecoveries.Ithasdeterminedthattherelationshipbetweengoldgradeinthemineralizationandrecoveryhasnot
introducedabiasintheresourcesampling.
InordertoimprovesamplerecoveryandreducecontaminationinthesmallnumberofwetRCdrillholesadrillbitslightlysmallerthanthehammerisused.
DrillinginabrokengroundinnorthernoperationusuallyrequirestheuseofanaircompressorandboostertomaintainadequaterecoveryofRCchipsamples
andreducethelikelihoodofsamplecontamination.
Thedrillingcontractanddailygeologicalsupervisionofthedrillersrequiretheoperatorstodotheirbesttoprovidegoodquality,uncontaminatedsampleswith
goodrecovery.
OverallthesamplesofRCandDDHshowagoodrecoveryespeciallyinsidethemineralisedzones.Ithasdeterminedthattherelationshipbetweentherecovery
andthegradedonotshowanybias,theauthorconsidersthattheChatreeresourcesamplingrecoveryisgenerallyappropriatedandthatrelationshipbetween
goldgradeinthemineralizationandrecoveryhasnotintroducedabiasintheresourcesampling
Preferentialloss/gainoffine/coarsematerialisconsideredtobelow.Fortimetotime,RCdrillsampleshavebeensievedandthefineandcoarsesample
materialhasbeenseparatelyassayed.Sidebysidecomparisonsshownoassaybiasbetweenbothsamplesizes.
RCvsDDHcomparisonswereassessedusingcloselypairedsamplepointsmainlyfromfivepairsofholes(RCholes=129,130,131,132&134,pairedwithDDH
holes474,475,476,468&469,respectively).558pairsofcloselyspacedtwometrecomposites(ieRCDDHpointswithin10metresofeachother)exist.Based
ontheresultsfor544samplepairswithoutliersremoved(iesamples>30g/t)thereisanoverallcloseagreementbetweenRCandDDHsamples.Nobiasis
notedbetweenRCandDDHsamplepairs.
Logging
Geologicalloggingiscompletedforallholesandrepresentativeacrossthedeposit.Thelithology,alteration,andstructuralcharacteristicsofRCchipsanddrill
coreareloggedtoapaperbasedsystemandthentransferreddirectlyintothedatabaseusingtheChatreegeologicalcodes.Thisdataisimportedintothe
centraldatabaseaftervalidationinMicromine,AccessandproprietaryimporttoolconstructedbyH&SConsultants.
Overthepast10to14years,loggingisbothqualitativeandquantitative.Checksandrechecksofloggingtakeplacewhennewholesaredrilledadjacenttoolder
holes.Thisprovidesagoodcrosscheckagainstgeologistvariation.ThemajorityofgeologistsonsiterecordinggeologydatahavebeenworkingatChatreein
excessof5years
Alldrillcoreisphotographed,andRCchipsarestoredonsiteinachipboardlibrary.Drillcoreisstoredonsiteinacorereferencelibrary.
AllRCandDDdrillholesarefullyloggedforgeology,recovery,mineralisation,alteration,geotechnical(DD),andsamplequality.
Subsampling
techniques
andsample
preparation
Themajorityofdrillcorewassampledbytakinghalfcoresamplesfromthesamesideofthecore.Corewascutusingacoresawanddiamondblade.Inbroken
groundthegeologistandsamplertookrandompiecesofbrokenrocktorepresentthemetreasbestaspossible.Brokenrockaccountsforaverysmall
proportionofthecore.
Allsamplesareweighedandrecorded.Somequartercoresampleshavebeenusedandstatisticalcomparisonandtheirquantityisimmaterial.
RCSamplesaresplitusingarifflesplitter
ThemajorityofRCSamplesaredry.Ontheoccasionthatwetsamplesareencountered,theyaredriedpriortosplittingwitharifflesplitter.
TheprocedureforRCsamplingonsiteisasfollows:ThefullRCsamplefromeachmetreiscollectedfromthecyclonethenoncedrysplitwitharifflesplitterto
producetworepresentativesamplesof34kgeach(dependingoninitialsamplemass);onesampleissenttothelaboratoryforassayingandtheotherkeptasa
referencesample.Standardsamples,duplicatedsamplesandblanksamplesareinsertedtotheassaysamplesbatchatleast1inevery25samples.Eachsample
batchsubmittedforassayhas100150sampleswithamaximumof250samplesperbatch.AllRCsamplesarethentransportedtotheChatreeMinelaboratory
forassaying.

6

Criteria Commentary
FollowingthemarkingupofthecorebythegeologistHQandNQcorewerehalveddiamondbladecorecuttingsaw.Aftercuttingthecorewasplacedbackinthe
coretrayforcheckingbythegeologisttoensurecorrectcuttingandreplacement.Baggingofthesamplesforanalysiswascarriedoutunderthegeologists
supervision.Samplenumberswerewrittenontheremainingorcoreatthestartofeachsampleintervalwithanarrowindicatingthedirectionofthesample.
Standardsamplesandblanksamplesareinsertedtotheassaysamplesbatchatleast1inevery25samples.Eachsamplebatchsubmittedforassayhas100150
sampleswithamaximumof250samplesperbatch.AllDDHsamplesarethentransportedtothelaboratoryatChatreeGoldMineforassaying.
TheonsitelaboratoryattheChatreeminesiteiscurrentlycertifiedbyISOwitha17025rating.
Samplesasreceivedaredriedtoremovemoisture.Allsampleshavebeendriedat120oCforaminimumof8hours.Theentiredrysampleiscrushed,bymeans
ofaRhinoJawCrushertoanominal24mm.A11.5kgsplitistakenandpulverisedina2000ccLabtechnicsB2000pulveriser.Nosievetestsareperformed.A
secondcoarsesplitistakenfromthejawcrushatregularintervals(~10thsample)andassayed.Inadditiontothenormalreplicateassay(Au1,Au2&Au3)of
pulpstakenfromtheoriginalsamplealiquot,resplitjawcrushedmaterialaretakenatapproximatelyevery10thsample.OREASstandardsareusedasinternal
laboratorystandards.
ForRC:Certifiedstandardsamples,duplicatesamplesandblanksamplesareinsertedtotheassaysamplesbatchatleast1inevery25samples
ForDDH:CertifiedStandardsamplesandblanksamplesareinsertedtotheassaysamplesbatchatleast1inevery25samples.Eachsamplebatchsubmittedfor
assayhas100150sampleswithamaximumof250samplesperbatch.
Evaluationofresultsfromthesubmittedcertifiedstandardsiscarriedoutonabatchbybatchbasis,andonamonthlybasistocheckforaccuracyandbias.The
majorityofstandardsshowanoverallmeanbiasoflessthan5%withnoconsistentpositiveornegativebias.Duplicateassaysshowgoodcorrelationwithitspair
andnoapparentbias.
FieldRCduplicatesaretakenattherigfromthesecondchuteontherifflesplitter(wherethereferencesampleistakenfrom).Fieldduplicatesareevery50
th

sample.
Diamondcoresampleutilisethelaboratorysamplepreparationduplicateprocedureinstead.
Withinthelaboratoryatthesamplepreparationstage,asecondcoarsesplitistakenfromthejawcrushatregularintervals(~10thsample)andassayed.
Boththeresultsofthefieldduplicatesamplesandthelaboratoryduplicatesamplesshowanacceptablelevelofrepeatabilityforalowsulphidationepithermal
goldsilverdeposit.
Thesamplesizeisconsideredappropriateforafinegold/silverlowsulphidationepithermaldeposit
Qualityof
assaydataand
laboratory
tests
AssayingforgoldandsilveronprimarysamplesiscarriedoutbyChatreeGoldMineonsitelaboratory.Goldassayingisbyfireassay(25and50gramsamples)
withAASfinish.Allassaysgreaterthan6.0g/tAuarerepeatedusingagravimetricfinish.AgisassayedusinganaquaregiadigestionwithAASfinish.
TheonsitelaboratoryattheChatreeminesiteiscurrentlycertifiedbyISOwitha17025rating.
Theanalyticaltechniqueisconsideredtobeatotalrepresentationoftheintervalsampled.
TheuseofgeophysicaltoolsisnotapplicablebecausethesetechniquesarenotusedforResourceestimation.
Anappropriatesamplingprotocolhasbeendesignedandimplementedspecifyinghowsampleswillbecollected,splitandsubsequentlypreparedinthe
laboratory.Laboratorysamplepreparationisroutinelycheckedusinggrindingtestsandsieveanalysisandthoroughdocumentationisexecuted.Analytical
standards,rigsplits,blanksamplesandduplicatesamplingarealwaysincludedandallareroutinelyplottedtodetermineiftheyarewithinapredefined
tolerance.Interlaboratorychecksaredoneonaperiodicbasisandtheresultsareanalysedstatistically.
TheQA/QCprocedureestablishedover13years(20002013)tocontrolandensuretherepresentativenessofthesamplesismaintainedinthetimeobtaining
highqualitysampletorepresentalargevolumeoforeinsitu.Theproceduresidentifythebestpracticesforcollection,recording,samplepreparation,safety
proceduresandotherestablishedstandardstoensureprecisionandaccuracymadeinChatreeGoldMine.

7

Criteria Commentary
Overall,thestandardsamples,duplicatedsamplesandblanksamplesareinsertedtotheassaysamplesbatchatleast1inevery25samples;duplicatesamples
areoutofsequence.Eachsamplebatchsubmittedforassayhas100150sampleswithamaximumof250samplesperbatch.Theduplicatedsampleisnot
insertedinDDHsampling.AllsamplesarethentransportedtotheChatreeMinelaboratoryforassaying.
Evaluationofresultsfromthesubmittedcertifiedstandardsiscarriedoutonabatchbybatchbasis,andonamonthlybasistocheckforaccuracyandbias.The
majorityofstandardsshowanoverallmeanaccuracyoflessthan5%withnoconsistentpositiveornegativebias.Duplicateassaysshowgoodcorrelationwithits
pairandnoapparentbias.
Incaseswherestandardassaysfalloutsideoftheacceptablerange,theentirebatchisreassayedoncetheerrorisdetermined.
ResultsoftheQAQCsamplingareconsideredacceptableforalowsulphidationgoldsilverdeposit.Substantialfocushasbeengiventoensuringsampling
proceduresmeetindustrybestpracticetoensureacceptablelevelsofaccuracyandprecision.
Verificationof
samplingand
assaying
Significantintersectionshavebeenverifiedbyalternatecompanypersonnelandexternalconsultants.
Significantintersectionshavebeenreassayedbydifferenttechniques(includingLeachwell,Fireassay)todeterminetheiraccuracy.
ComparisonbetweennearbyResourcescompositesamples&gradecontrol(GC)compositesamplesusingamaximumfivemetreseastwestbyfivemetres
northsouthby2metresverticalsearchgavedatapairsfor13%ofthe314972resourcecompositesinthestudy.ThepairedresourceandGCcompositesshow
comparableaveragegrades.TheGCisconsideredasindependentchecktoverifytheintersectionofresourcedrilling.
Twinnedholesarenotroutine.HowevertheextendedhistoryofdrillingatChatreehasresultedanymanyoverlappingdrillholesamplesfromdifferentholesthat
lieadjacentwitheachothercanbeusedtocompareaveragesandassayrepresentivity.Withtheexceptionofassayoutliers(eghighgrade),datapairingofthese
overlappinginterceptsshowsnosignificantmisrepresentationofthegrades.
Datawasaccumulatedandcompiledcoveringcollars,surveys,assaysincludingrigsplitsandstandardsaswellaslaboratoryduplicates(checkassays),lithology,
veins,alterationstyles,recoverydataforbothRCandcoreholestogetherwithmoisturereadings.Additionaldatagatheredincludespotheightsfortopography,
structuralandgeotechnicalorientationinformationincludingwherepossibleRQD,rockhardnessandcompressivestrength,densitiesandpreliminary
metallurgicaldata.Asamatterofcoursedrilllogswereproducedandcorewasinspectedonsite.Dataisorganisedinanappropriatelyprotectedrelational
Accessdatabase.
TheKingsgateGrouphaveinplaceformaldatavalidationproceduresfordatainthedatabasewithdatabeingvalidatedasclosetothesourceaspossibleto
ensurereliabilityandaccuracy.Inconsistenciesidentifiedinthevalidationproceduresarerecheckedandchangesmadetothedatabaseoncetheproblemis
identified.
Consistencyofloggersovertime,differentloggersoverasinglecampaignandbetweensuccessivedrillingcampaignsareconsideredandstandardisationis
attempted.Incaseswherestandardisationisnotpossible,portionsofcoreand/orRCchipsarerevisitedtopinpointtheinconsistencies.Theconsistencyof
lithological,alteration,mineralisationandstructuraldataarecrossreferencedintermittentlythroughoutcampaigns.Allinconsistentloggingarerecordedin
sheetsandupdatedinthedatabase.
Theentiredrillholeisloggedandthisinformationistransferredtothedatabase.Thedataentryprocessincludesroutinecrosschecksbygeologistsandalsothe
databaseimporttools.Anyerrorsareimmediatelyrectified.
Assayresultsarenotadjustedastheyrepresenttotalgoldforthesampleinterval.However
o Allsampleswithgoldvaluebelowdetectionlimit0.01arereplacedby0.005assayresult.
o Ifthesampledoesnthavegoldvaluebecauseitisinalatestagedyke,thenullvalueisreplacedwith0.00,butitisleftasnullforotherlithologycodes.
Locationof
data
points
TOPOGRAPHY
AlocalminegridisutilisedatChatreeGoldMine.
Regularlyupdatedsitetopographyisprovidedbytheonsitesurveyteam.

8

Criteria Commentary
HOLECOLLARSURVEY
AllholecollarsarepickedupusingaDGPSorbythesitesurveyteam.DownHoleSurveying
Aslongasgroundconditionsaresuitablealldiamonddrillholes,RCholesandholeswithdiamondcoretailsweresubjectedtodownholesurvey.Thereislittle
evidenceofsignificantholedeviationforholeswith50to100mprecollarshoweverallRCholesinexcessof5080maresurveyed.Holesweresurveyedat25
to30mintervals.Thesurveyingwasusuallyundertakenduringwithdrawalofthedrillstringfromtheholewiththeuseofastainlesssteelrodatthemeasuring
end.
Somerocks,mostlydykes,haveaminortomoderatemagneticcontentandmayhaveinfluencedsomeoftheazimuthreadings.However,ingeneral,therewas
verylittlevariationbetweenreadingsinanygivenholeandastainlesssteelstarterrodisusedwhereeverdownholesurveyistobeundertakentoneutraliseand
remanentmagnetisminthesteelrodsorintherockunits.
Dataspacing
and
distribution
Nominaldrillspacingis20x25metres.Selectedareawithgoodgeologicalcontinuityhavebeendrilledat40x50metresandmaybesubjecttoselectiveinfill
drillingto20x25metreswherenecessaryorasrequiredformineplanningpurposes.
RCsamplesarenominally1metrewhensentforassaytesting.Coresamplesaresampledusinggeologicalboundariesthesamplesizeisnominally1metrebut
canbeassmallas30centimetres.Samplesarecompositedto2metreslengthsforresourceevaluation.
DataspacinganddistributionaresufficienttoestablishthedegreeofgeologicalcontinuityappropriateforJORC2012classificationsapplied.
ThecurrentResourceestimateisbasedontwometresdownholecompositesfromRCanddiamonddrilldatabase.Thiscompositeintervalwasselectedasa
multipleofthecommon1metresamplelength(whichrepresentsacombined92%oftheresourcedrilling).
Orientationof
datainrelation
togeological
structure
Themajorityoftheresourcedrillholesaregenerallyinclinedataround55degrees,andorientedapproximatelyperpendiculartothelocaldominant
mineralisationcontrols.Structuralloggingoftheorientatedcoreconfirmsthatthedrillingisforthemostpartperpendicularthedominantmineralisedtrends.
Inareaswheretheresourcedrillholesaresubparalleltothedominantmineralisationstructures,comparisonwithgradecontrolsamplingshowsnosignificant
differenceinmeangoldgrades.Caseswheresubparalleldrillingoccurs,orisnotcertain,usuallyresultinscissorholesbeingdrilledintheoppositedirectionto
ensurethemineralisationtrendsareaccuratelymapped.
PairedresourceandGCcompositesshowcomparableaveragegradesforcompositesinEastDippingdirection(perpendiculartomineralisation)withtheWest
dippingcompositesshowingaslightbiasinthehighergradeoutliers.Theeastdippingandwestdippingcompositesshowagoodcorrelationuntilcomposite
valuesareabove3.5Aug/t.ConsideringtheproportionofResourceCompositeswithgoldgradevaluesover3.5g/tAuis5%forcompositingineastdirectionand
3%forwestdirectionanysamplebiascausedbydrillingsubparalleltothemineralisationisconsideredtobeimmaterialtotheResourceestimation.
Sample
security
RC samples are delivered to the assay laboratory by company staff at the end of drill hole. If samples are left on site overnight they are considered secure,
becausethereisaguardonsiteatnighttimewhenthereisnodrillingoperation.Samplesaretransporteddirectlyfromsitetotheassaylaboratory.
Drillcoreiscutandtransporteddirectlytotheassaylaboratory.Duplicatesamplesarereviewedandareoutofsequencesoanyriskofsampletamperingwould
bealsonoticedinduplicateQAQCChecks.
Auditsor
reviews
InthepastHellmanandSchofield(H&S)havecarriedoutresourceestimationsatChatreefromprefeasibilityin1999untilthe2010MineralResource.In2011
theresourceestimationswerecarriedoutonsiteandauditedbyH&S.Furtherresourceestimationworkhasbeencarriedoutinconjunctionwithresource
consultantJonAbbottofMPRGeologicalConsultantsPtyLtd.Informationandmapsfromthesereportshavebeenintegratedintothisreport.
ChatreeGoldMiningisroutinelyvisitedbyexternalcompetentpersonsthatreviewanddiscussallprocedureofsamplingtechniques,geologicalinterpretation,
parameteroftheestimation.Theseauditsandreviewsarestoredonthecentralserverforreviewing.
Theauthorsofthecurrentestimationarecompetentpersonsofthecompanywhoregardtheestimationprocedure,dataandassayquality,geologyand
mineralisationanditscontinuityasappropriateforthestyleofmineralizationofdepositthathasChatree

9

Criteria Commentary
TheChatreeMillandGradeControldrillingprovidesanindependentcheckagainsttheResourcemodelinalreadyminedportionsoftheChatreeSystem.These
twoindependentcheckssupportthereliabilityoftheResourceEstimationintheminedareasforthecurrentoperationtodate.
Externalandinternalreviewshavedeemedthedataandthesamplingtechniquestobeinlinewithindustrystandardsandofsufficientqualitytocarryouta
MineralResourceEstimation.

SECTION2:NotApplicable

SECTION3:EstimationandReportingofMineralResources
Criteria Commentary
Database
integrity
TheChatreeGoldMinehasinplaceformaldatavalidationproceduresfordatainthedatabasewithdatabeingvalidatedasclosetothesourceaspossibleto
ensurereliabilityandaccuracy.Allgeologicalandfielddataistransferredfrompaperlogsintoexcelandaccessdatabasetables.Thedatabaseadministrator
validatesthedataonceitisimportedintothecompanyAccessDatabase.Dataentryerrorsareidentifiedbydatavalidationsoftwareandgeologicaldataentry
errorsareidentifiedbycrosschecksbytheprojectgeologists.
Theexplorationdatabaseisconfiguredforoptimalvalidationthroughconstraints,librarytables,triggersandstoredprocedures.Datathatfailstheserulesis
quarantineduntilitiscorrected.
DatabaseiscentrallymanagedbyaDatabaseManagerwhoisresponsibleforallaspectsofdataentry,validation,development,qualitycontrolandspecialist
queries.Thisisastandardsuiteofvigorousvalidationandchecksforalldata.
Sitevisits
TheCompetentPersonsregularlyvisitsite,orworkonsite.ProceduralandreconciliationchecksoftheResourceEstimateagainstgradecontrol,mininghistory
areroutinelydoneandanyvariationsareinvestigated.
Thisisnotapplicablebecauseallcompetentpeoplehaveroutinelyvisitedthesite,includingindependentresourceconsultants
Geological
interpretation
Theconfidenceinthegeologicalinterpretationofthemineraldepositishigh.TheChatreesystemhasseenResourceestimationscarriedoutforthepast10
years,andtheseresourceestimationshavebeenfollowedupwith10yearsofmining.Bothresourcedrillingdataandminingdata(pitmappingandgrade
control)areusedtogetherwhenbuildingtheframeworkforthemineraldepositsandtheircontrols.
Mineralisationandgeologicalwireframesarecreatedusingthesedatasets.
Thegeologicaldatausedtoconstructthegeologicalmodelincludesregionalanddetailedsurfaceandpitmapping,drillholeslogs,andinterpretationsfrom
drillingcrosssections.
Mineralisationwireframeshavebeencreatedbasedongoldandsilverassayswhicharedesignedconstraintheedgestothegolddeposits.
AlthoughsmallvariationsintheGeologicalandResourceInterpretationsdooccuronacasebycasebasis,theeffectsofthesevariationsdonotsignificantly
impactontheresourceandareconsideredimmaterial.Howevertheselocalizedimpactsarecontinuallymonitoredbetweengradecontrolandresource
definitionandmodifiedwhererequired.
HistoricalMiningActivityagainsttheblockmodelalsoconfirmsthecloserelationshipbetweenthecurrentgeologicalmodelsandtheglobalreconciliation
betweentheasminedpitsandtheproductionhistory.
TheuseofgeologyinguidingandcontrollingMineralResourceestimationispartiallyapplicableatChatree.Oxidisationandbroadstratigraphytypesdocontrol

10

Criteria Commentary
thegrossdistributionofgoldandsilvermineralisationwithinthesystem.Howeveratalocalscale,mineralisationiscontrolledbystructuresthatcrosscut
geologytrends.AcombinationofbroadscalegeologicalwireframesandknowledgeonmineralisationcontrolsisutilisedwhencreatingtheResourceEstimate.
RegionalfaultsarenotedintheChatreearea,buttheirimpactonresourceriskisconsideredimmaterialgiventheintensityofdrilling.
PostmineralisationdykesaffectgradecontinuitywithintheChatreeSystem.Thesedykesvaryinwidthfrom<1mtoupto8metresinwidth.Thedykestypically
crosscutthemineralisationandcreatedatablanksinthedrilldataandrequireconsiderationduringtheResourceestimation.Severalreviewslookingat
whethertoincludeorexcludedataassociatedwithdykeshavebeenconductedduringresourceestimation.Thecomparisonsdonoshowsignificantdifference
betweeneachother.Thecurrentestimationtreatsalldykesand0g/tgoldandtheseareincludedintheestimation.
SpecificalgeologicalunitswithintheChatreesystemcanbeconsideredapreferredhost.ThesearemostnotableintheAProspectwherethesedimentaryunit
hoststhemajorityoftheore.
Dimensions
ThegrossdimensionsoftheChatreeMineralResourceextendincontinuousstrikefromthesouthernedgeofthemininglease,throughtothenorthernQ
Prospectfor4.2kilometres.ThemaintrendscanbesplitintoseveralveinorientationsmeetinginthecentreoftheminingleaseatAProspect.Theoverall
widthoftheresourceistypically40to80metresdependingondip,butextendsupto160metresintheAProspect.ThemaximumMineralResourcedepthis
371metres.
Estimation
andmodelling
techniques
ThetechniqueusedintheestimationisMIK(multipleindicatorkriging).Ingolddepositswhereshortscalevariationinthesamplegradesisoftenextreme,the
conventionalapproachtoresourceestimationhasbeenfoundtoproduceunacceptableresults.Themainreasonisthatitisimpossibletogeneratereliable
estimatesofthegradesatthescalethatwillbeusedfororeselectioninmining.
MIKestimateswithinlargervolumescalledpanels,theproportionofmaterialthatwillbeselectedasoreusingacertainselectionstrategyinmining.Thegrade
ofthisproportionisalsoestimated.Thelargervolumeofpanel,whichusuallyhasthedimensionsofthedrillholespacing,isusedtoensuremorereliable
estimatesofgrade.
IntheMIKmethodthiscanbedonethrougheitherexcludingthepotentiallyproblematicsamplegradesfromthecalculationoftheindicatorstatisticsorusing
somealternativemeasurefortheaveragegradeofthehighestclass,suchasthemedianasopposedtothemean.Thedeterminationofcuttingorcappingof
extremegradesvalueoroutlierwasperformedwiththedataanalysistroughtheconditionalstatisticthatallowsgeneratingatableofstatisticforapredefined
setofclassthresholds.Theuppergradebinforalldomainswascarefullyanalysedaccordingtotheirspatiallocationandthedifferencebetweenthemeanand
themediansodeterminetheuseofanyoftheseorthemeangradeoftheupperbinexcludingasetofoutliercomposites.
Akeycomponentofthemineralresourceestimationistheestablishmentofdomainsforthedatatobemodelled.Resourceestimateswillnotproduceresults
thatreconcilewithhistoricalminingfiguresifthedataisnotdomainedaccordingtotheappropriategeologicalinterpretation.ThroughouttheChatreeGold
Minegeologicalmodelgenesisconceptsthatareconsideredtocapturethegeometryandtheoreticaldistributionofmineralisationalongwiththesitebased
geologicalinterpretation,whichisconsistentwithregionalandlocalgeologicalinformationareutilisedintheformulationofgeologicalparametersandthe
subsequentdevelopmentofadomainstrategy.
Theinterpolationparametersconsidereddifferentsearchpassanddifferentdataused,givenconfidencelevelforclassifiedtheresource.

X Y Z
1 25 25 12 16 4 48
2 37.5 37.5 18 16 4 48
3 37.5 37.5 18 8 2 48
4 70 70 30 8 2 48
Search
Pass
Radi i
Mi ni mum
Data
Mi ni mum
Octants
Maximum
Data

11

Criteria Commentary
TheGS3SoftwaredevelopedbyHellmanandSchofieldisdesignedtobuildmodelofthedistributionofresourcesandgenerateestimatesofresourcesinmineral
deposits.HellmanandSchofieldPtyLimiteddistributethesoftwareunderlicense.
Thesoftwareisdesignedtoprovidethetraineduserwithasetoftoolstobuildmodelsofthedistributionofrecoverablegradeandtonnesforasingleelement
suchasgoldwithinamineraldeposit.Themineralizationmaybepartitionedintoamaximumof10differentprimarymineralizationstyles(orgeologicdomains)
eachofwhichmayhaveupto8secondarymineralizationoralterationzonessuperimposedonthem.Thisconfigurationisdesignedtoallowtheusertheability
tomodelseveralmineralizationstylescontrolledbystructuresandlithologies(primarydomains)whichareoverprintedbyseveralstagesofoxidationand
leachingdefiningoxidised,mixedandsulphidezoneswhicharecalledsecondaryorsubdomains.
Thesoftwarenormallyconsistsoffivemaincomponents:
- DataVisualizationandSelection
- UnivariateandBivariateStatistics
- DataTransformation
- VariogramAnalysisandModelling
- MultipleIndicatorKrigingModelling.
ReconciliationofMIKblockmodelestimatesagainstproductionatoperatingminesisanimportantmeasureofthepredictivenatureoftheMIKblockmodelfor
futureproduction.Threesetsofdataaregenerallyavailable,namelytheMIKblockmodel,theGradeControlAsMinedfigureandProductionHistory(Mill)Data
withstockpiledoreadjustmentsthelatteroftenreferredtoasmilldata.Chatreegoldmineevaluatesthisdataonroutinely(bymonthly,quarterlyandyear)
andalsofortheoperationalhistorytoobtainalevelofconfidenceinMIKblockmodelperformancetoactualproduction.
TheAkaraMineGeologyDepartmentkeepsongoingrecordsonMIKBlockModelPerformanceagainstgradecontrol.Theoverallhistoryoftheoperationshows
goodreconciliationbetweentheMIKBlockModelsandtheGradeControlModels.ConsideringallGradeControlPredicteddrillingdataupuntilApril2012was
basedonminesiteLeachwellassays(notcalibratedforrecovery)theglobalreconciliationbetweenMIKModels(assayedbyconventionalfireassaytechnique)is
acceptable,withGradeControlPredictedcomingwithinata95%reconciliationontonnes,93%ongoldgrade,and88%ongoldounces.
ThegoodglobalreconciliationbetweentheProgressiveMIKModelsandtheGradeControlPredictedModelisalsosupportedbytheoverallmillprocessing
historyatChatreeOperation(accountingforstockpiles).
ThecombinedoverallProcessedOreandStockpile(38.01Mt@1.37g/tAufor1.672Moz)havealsobeencomparedagainstthecurrentMIKResourceEstimate
thatlieswithinthecurrentAsMinedpitsurfaceandalsotakingintoaccountthevariationinlowercutoffgradesincecommencementofoperations.These
variationshavebeenestimatedagainsttheMIKResourceEstimatebyaseriesofwireframescreatedthatrepresentthedifferentminingareas,theirdatemined
andthecutoffgradeused.OverallthecurrentMIKResourceEstimatereconcileswellagainsttheProcessedOreandStockpilehistoryshowinga0.1%variation
onTonnes,a3.0%variationongoldgradeanda3.1%variationonounces.
ChatreeOperationisagoldandsilverproducerandtherearenobyproducts
Sulphidecontentisconsideredtobegloballylowanditseffectonacidminedrainageisreviewedattheminingstage.
Resourcemodelblocksizeisrelatedtodrillpatternsize.Theblockmodelisconstructedwithpanelsof10mx25mx6m.Nominaldrillspacingis25metresin
theNorth,intheeastthespacingismorevariable(between1020m).
Thesefactorsassumeminingselectivityconsistentwithcurrentpractice,withoreselectionbasedon6by8by1.5metregradecontrolsamplingandminimum
oreblocking resolution of around 2 by 4 metres, by 3 metres vertical. Reliability of the selected variance adjustment factors is demonstrated by the generally
reasonablecomparisonbetweengradecontrolandmodelestimates.

12

Criteria Commentary
Overall the Chatree mineralisation presents gold and silver as the main commodities for exploitation, howeverthe silver values in Chatree deposit are usually
lowwithveryfewhighgradevaluesandlowcorrelationbetweengoldandsilver
Thedomainsusedforthisestimateisbasedontheorientationofthemineralization.Mineralizeddomainsassignmentforresourcemodellinghasbeenbasedon
wireframemodelofgeologicalinterpretations,veins,drillholesdata,gradecontroldataandpitgeologicalmap.Mineralizationdomainsaredividedaccordingto
theirstyleandorientationofmineralization.
MIKmodelledthegradethresholdsandclassmeansforeachmineralisedforeachattributeanddomain,indicatorthresholdsweredefinedusingaconsistentset
ofprobabilitythresholds.
The highest indicator class represents only 1% of the data, and in a highly skewed distribution such as seen in the resource datasets, this indicator class can
containadisproportionateamountofthemetal,soasmallnumberofcompositescanhaveadisproportionateimpactontheestimationofresources.Therefore
adecisiontolimittheimpactoftheextremegradesvalueoroutlieronthefinalestimatesmustoftenbemade.
Validationof theblockmodelinvolvedgoingthrougheachsection(25malongstrike)andplan(6m)tocheckthatblockgradesmatchedthatofthedrillholes
informingtheblock.Theblockswerealsocheckedtomakesuretheymatchedthemineralisationmodel.
In addition, validation is also carried out by reconciling the new block model with past mine production and grade control data for the same area where a
sufficientlylargeareahasbeenminedtoberegardedasbeingrepresentativeoffutureproduction.ThegoodglobalreconciliationbetweentheProgressiveMIK
ModelsandtheGradeControlPredictedModelisalsosupportedbytheoverallmillprocessinghistoryatChatreeOperation(accountingforstockpiles)
Moisture
Theestimatedtonnesintheofresourcesusedrybulkdensity.Thesampleforbulkdrydensityaretakenregularandsystematicspecificgravitymeasurements
aretakenonrepresentativenumberofdiamonddrillcoreaccordingtoaformalprotocol.
Tocalculatethemoistureofthesamplecores,thesampleisweighedonaprecisionelectronicbalance,thenisdriedinanovenat110C,andagaindryweightis
measuredbydeterminingthemoisturecontentoftherelationshipoftheinitialweight/finalweight,similarcalculationisperformedfortheRCsampleswhere
the sample is dried naturally. Determined moisture values have been used to analyse any bias in the results of chemical tests on the samples, which is not
relevanttothecalculationofResourcetonnage.
Cutoff
parameters
Thecutoffgradeisbasedontheincrementalcostofprocessingore,usingbudgetcostestimatesforeachpit.RecentworkusingaUSD1600/ozgoldprice
indicatedthattheaveragecutoffgradeacrossallpitswasapproximately0.32g/tandataUSD1400/ozgoldpricethecutoffgradewasapproximately0.36g/t.
Thevariabilityofthecutoffgradebetween0.3and0.4dependingonlocation,metallurgyandcostvariationjustifiedaglobalresourcecutoffgradeat0.3on
theassumptionthataveragegoldpricevariabilityoverthepast3yearsisapproximately1,550USD/oz.
Miningfactors
or
assumptions
MiningatChatreeisbyopencutmethods,utilising200tand100tclassexcavators.Assuch,thesizeoftheblocksusedintheresourceestimation(10mx25mx
6m)isappropriatetothestyleofminingbeingundertaken.Itisassumedthatdetailedgradecontroldrillingwillbeappliedtoore/wastedelineationprocesses
usingRCdrillingatcloserspacing.
ThisisconsistentwithcurrentminingpractisesatChatree
Metallurgical
factorsor
assumptions
Plantrecoveryvariesdependingonmaterialtype,pitandthroughputrate.Historically,theChatreeplanthasbeenabletoachieverecoveriesofover85%Au.
Thereiscontinuoustestworkperformedtoimprovetheknowledgeaboutthevariabilityofrecoveryindifferentlithologys.
Theassumptionof85%basedonhistoricalperformanceisnotnecessarilyandindicatoroffutureperformanceandslightlylowerrecoveriesatAProspectare
wellmappedbygeologicaldomains,andgradedistribution.
Detailedmetallurgicalreportshavebeencompletedforthemajorityofmajorprospects,andtheseresultshavebeenappliedtothemineralisationdomains
whenestimatingReserves.

13

Criteria Commentary
Environmental
factorsor
assumptions
CurrentResourceliewithinaMiningLeaseandconsiderationofWasteDumpsandInfrastructurehasbeenmadewhenestimatingthelowercuttoff.The
ChatreeOperationhascompletedvariousenvironmentalimpactstatementsincompliancewithregulationsforapprovalofMiningLeases.
Bulkdensity
Regularandsystematicspecificgravitymeasurementsaretakenonrepresentativenumberofdiamonddrillcoreaccordingtoaformalprotocol.Thisdatais
includedinthedatabase.DensitiesaverageforOxide(2.16),Transitional(2.40)andFresh(2.62).
Althoughdensitydatarequiresongoingrevisiononacasebycasebasis,thedensitiesadoptedforoxide,transitionalandfreshremainvaliddensity
measurementsconsideringtheresultsofexcellentglobalreconciliationbetweenthenewApril2013MIKModelandhistoricalMilledandStockpiledrecords(a
highproportionofwhichwouldrepresentoxideandtransitional).
Anysignificantvariationinoxideortransitionaldensitywouldberecognizedinthiscomparison.Sincethereconciliationremainsavalidtestofthecurrent
densitiesadoptedfortheresourceestimatethesewillcontinuetobeusedfortheglobalresource.
Classification
Resourceconfidencelevelswereassignedtothecurrentestimatesonthebasisofsearchpass,andatriangulationdefiningthelimitsofcloserspacedsampling.
The current estimation has used four search passes reflecting confidence on continuity of mineralisation style based on mining experience and geological
continuityoverthehistoryofresourcedrilling.
Panelsinthecurrentmodelestimatesareassignedtoconfidencecategoriesof1,2and3whichrepresentestimatesofprogressivelylowerconfidence,Panels
within the classification triangulation were assigned to confidence categories 1, 2 and 3 on the basis of search pass, and all panels outside the classification
triangulation were classified as category 3. For public release of the estimates, estimates for categories 1 reported as Measured, categories 2 reported as
Indicatedandcategory3panelsreportedasInferred.
The confidence in a mineral resource estimate was judged on quality of input data assay, mineralisation/geological continuity along strike anddown dip, data
densityandminingexperienceofsimilardeposits.Theauthorconsidersthatthereliabilityofresourceisdemonstratedbythegenerallyreasonablecomparison
betweengradecontrolandmodelestimates.
Theauthorsconsiderthatthereliabilityofresourceisconfirmedbythereasonablecomparisonbetweengradecontrolandmodelestimates
the authors of the current estimation are competent persons of the company who regard the estimation procedure, quality data, data assay,
mineralisation/geological continuity along strike and down dip, data density are considered appropriate for the style of mineralization of deposit that has
Chatree.
Auditsor
reviews.
InthepastHellmanandSchofield(H&S)havecarriedoutresourceestimationsatChatreefromprefeasibilityin1999untilthe2010mineralresource.In2011
theresourceestimationswerecarriedoutonsiteandauditedbyH&S.ThecurrentMineralResourceestimatehasbeenauditedbyJJonAbbottofMPR
GeologicalConsultantsPtyLtd.ThisTable1formsasmallpartofamoreextensiveMineralResourceReportforChatree,thisreportformpartofthecompanys
internaldocumentationandisprovidedtoindependentconsultantsduringtheiraudits.
ChatreeGoldMiningisroutinelyvisitedbyexternalcompetentpersonswhoreviewanddiscussallprocedureofsamplingtechniques,geologicalinterpretation,
parameteroftheestimation,auditsandreviews.
TheresultsofsuchauditsconcludethatproceduresanddatausedtoestimatetheMineralResourceareappropriateforthestyleofmineralizationfoundat
Chatreeandconsistentwithothersimilaroperationselsewhere.

14

Criteria Commentary
Discussion
ofrelative
accuracy/
confidence
TheChatreeOperationhasbeenactivelyminingforthepast10years.AnappropriatewaytogaugetherelativeaccuracyofthecurrentMineralResource
estimateandisconfidenceistoreviewitsperformancelookingbackintheareasalreadymined.ReconciliationofMIKblockmodelestimatesagainstproduction
atoperatingminesisanimportantmeasureofthepredictivenatureoftheMIKblockmodelforfutureproduction.Threesetsofdataaregenerallyavailable,
namelytheMIKblockmodel,theGradeControlAsMinedfigureandProductionHistory(Mill)Datawithstockpiledoreadjustmentsthelatteroftenreferredto
asmilldata.Chatreegoldmineevaluatesthisdataonroutinely(bymonthly,quarterlyandyear)andalsofortheoperationalhistorytoobtainalevelof
confidenceinMIKblockmodelperformancetoactualproduction.
TheAkaraMineGeologyDepartmentkeepsongoingrecordsonMIKBlockModelPerformanceagainstgradecontrol.Theoverallhistoryoftheoperationshows
goodreconciliationbetweentheMIKBlockModelsandtheGradeControlModels.ConsideringallGradeControlPredicteddrillingdataupuntilApril2012was
basedonminesiteLeachwellassays(notcalibratedforrecovery)theglobalreconciliationbetweenMIKModels(assayedbyconventionalfireassaytechnique)is
acceptable,withGradeControlPredictedcomingwithinata95%reconciliationontonnes,93%ongoldgrade,and88%ongoldounces.
ThegoodglobalreconciliationbetweentheProgressiveMIKModelsandtheGradeControlPredictedModelisalsosupportedbytheoverallmillprocessing
historyatChatreeOperation(accountingforstockpiles).
ThecombinedoverallProcessedOreandStockpile(38.01Mt@1.37g/tAufor1.672Moz)havealsobeencomparedagainstthecurrentMIKResourceEstimate
thatlieswithinthecurrentAsMinedpitsurfaceandalsotakingintoaccountthevariationinlowercutoffgradesincecommencementofoperations.These
variationshavebeenestimatedagainsttheMIKResourceEstimatebyaseriesofwireframescreatedthatrepresentthedifferentminingareas,theirdatemined
andthecutoffgradeused.OverallthecurrentMIKResourceEstimatereconcileswellagainsttheProcessedOreandStockpilehistoryshowinga0.1%variation
onTonnes,a3.0%variationongoldgradeanda3.1%variationonounces.
Thecurrentestimateisanestimateonglobalandlocal,basedonastatisticalandgeostatisticalanalysis,estimatedbymultipleindicatorkrigging(MIK)approach
asinthepreviousestimates,theconfidenceinamineralresourceestimatewasjudgedonqualityofinputdataassay,mineralisation/geologicalcontinuityalong
strikeanddowndip,datadensityandminingexperienceofsimilardeposits.Theauthorconsidersthatthereliabilityofresourceisdemonstratedbythe
generallyreasonablecomparisonbetweengradecontrolandmodelestimates.
TheMineralResourceestimateisconsideredtobeofsufficientlocalconfidencetoallowmineplanningstudiestobecompleted.Theestimatehasbeen
classifiedasacombinationofMeasured,IndicatedandInferred,withtheMeasuredandIndicatedResourceofasufficientlocalconfidencetoallowoptimisation
studies,pitdesignsandminescheduling.
Asmentionedabove,atthetimeofestimation,thecombinedoverallProcessedOreandStockpile(38.01Mt@1.37g/tAufor1.672Moz)havealsobeen
comparedagainstthecurrentMIKResourceEstimatethatlieswithinthecurrentAsMinedpitsurfaceandalsotakingintoaccountthevariationinlowercut
offgradesincecommencementofoperations.OverallthecurrentMIKResourceEstimatereconcileswellagainsttheProcessedOreandStockpilehistory
showinga0.1%variationonTonnes,a3.0%variationongoldgradeanda3.1%variationonounces.

15

SECTION4:EstimationandReportingofOreReserves
Criteria Commentary
Mineral
Resources
Estimatefor
conversionto
OreReserves
ThemineralresourceestimateisbasedontheApril2013MIKresourcemodeldevelopedbytheKingsgateGroup.ThemethodologywasreviewedbyMPRGeological
ConsultantsPtyLtd(MPR).TheChatreeGoldMineOreReserveEstimateisderivedfromdetailedpitdesignsbasedontheoutputofWhittleoptimizationsrunonthe
AprilResourceModelcompiledbyKingsgatesThaiexplorationsubsidiary,IsaaraMining(Issara).
TheChatreeMineralResourceestimateisinclusiveoftheApril2013OreReserves.
Sitevisits ThecompetentpersonisbasedonsiteatChatreeGoldMine.
StudyStatus
TheChatreeGoldMinehasbeenoperatingfor10yearsandiswellestablished.
Afeasibilitystudywasconductedin2005fortheChatreeNorthleasesandthatisbasisofthecurrentmineplan.
Whentheresourcemodelisupdatedwithadditionaldrilling,theminingdesignsandplansarereviewedandfinancialevaluationsapplied.
CutoffGrade
Thecutoffgradeusedtoreportreservesisderivedfromtheincrementalcostofprocessingore,includingthecostofrehandlefromstockpiles.
Agradeof0.35g/tAuhasbeenusedforOreReserveEstimate.
MiningFactors
DetailedpitdesignshavebeencompletedforallpitsatChatree,basedontheApril2013ResourceModelfromIssara.
TheopenpitshavebeendesignedfollowingpitsloperecommendationsofBFPConsultantsPtyLtdfortheChatreeNorthFeasibilityStudy.
Miningequipmentandbenchheightselectionisappropriatefortheorebody.Bothoreandwasteareblastedon9mbenchesthenminedin3mflitchesby100tand180t
classexcavators.Gradecontrolisdonebyreversecirculationdrillingon18mbenchesaheadofdrillingandblasting.
Openpitshavebeendesignedwith2wayhaulroadsexceptforthefinalbenches,whichhavebeendesignedwithonewayaccesstoreducestrippingrequirements.
AsthemodelisanMIKmodel,miningdilutionandrecoveryfactorsarenotrequired.
Openpitcutbackshavebeendesignedwithaminimumbenchwidthof50m.
InferredMineralResourcesareexcludedfromthepitoptimizationsandreservesandcountedaszerograde.
Allrequiredinfrastructureisalreadyinplace.
Metallurgical
Factors/
Recovery
Model
ChatreeGoldMinehasbeenrunningfor10yearsandsuccessfullyextractsgoldandsilverfromorebyaCIL/CIPprocess.
TherecoverymodelsforGoldandSilverusedintheestimationoftheChatreeGoldMinereservesarevariablerecoverymodelsbasedonheadgrade.Thealgorithms
usedwerederivedfromtestworkperformedoverthefullrangeofheadgradesfromdifferentgeographicareasaswellashistoricaloperationaldata.
Theaveragerecoveryforgoldmetalfortheremainingreservesis80.5%andforsilvermetal43.6%.
Thereareminoramountsofcarbonaceousorewithintheorebodyandtestworkhasbeenperformedtodeterminetheimpactonrecovery.Theresultsofthistestwork
havebeenincorporatedintotheoverallrecoverymodelfortheorebody.
Environmental
ChatreegoldmineoperatesunderanapprovedEnvironmentalandHealthImpactAssessmentwhichisregularlyauditedbyThaigovernmentofficials.TheEHIAcovers
thestorageoftailingsfromtheprocessingplantandwasterock.
Theminecurrentlyhasaplasticlinedtailingsstoragefacilityfor62Mtonnesofore.Thisis7Mtonesbelowthecurrentremainingorereserveandprovisionofafurther
facilitywillberequiredtowardstheendoftheminelife.
WasteischaracterizedintopotentiallyacidformingandnonacidformingandplacedintodumpsinaccordancewiththeEHIA.
Thesiteconditionsarethatnowateristobedischargedfromthemininglease.

16

Criteria Commentary
Infrastructure
ChatreeGoldMineissuppliedwithelectricityfromtheThainationalgridandaccesstoBangkokisbysealedhighways.
AlllandwithintheminingleaseisownedbyKingsgatesThaisubsidiary,AkaraMiningLimited.Landsurroundingtheprojectisgenerallyfreeholdtitle,andassuch
negotiationsareconductedwithindividuallandholderstoobtainaccesstoland.
Labourissourcedfromlocalcommunitiessurroundingtheoperation.Over90%ofthestaffemployedonsiteareThaiNationals.AkaraMiningdoesnotprovideanyon
siteaccommodation,withallstafflivingwithinthelocalcommunities.
Costs
CapitalcostsincludedintheNPVcalculationfortheprojectincludeallowancesforplantupgradestoimprovethroughputandalsoconstructionofthetailsstoragefacility
aswellassustainingcapitalforallaspectsofthemine.
TheoperatingcostsusedintheWhittleoptimizations,andtodeterminethecutofgrade,arebasedonthecurrentcontractminingunitratesand12monthhistorical
costs,withadjustmentsmadeforexpectedpricemovementsofmajorconsumablese.g.electricalpower.
Anexchangerateof30Baht/USDwasassumedfortheWhittleoptimisationsandNPVcalculationsbasedonthelasttwoyearshistoricaldata.
Transportationchargesarebasedonhistoricalaverageswithadjustmentsmadeforexpectedpricemovements.
Treatmentchargesarebasedoncurrentoperatingcosts.
TheroyaltypaidtotheThaigovernmentforgoldproductionisbasedonaslidingscaleaccordingtotheprevailinggoldprice.
(1)twopointfivepercentofthepriceofgoldpergramforthepricenotexceedingBahtFourHundred;
(2)fivepercentofthepriceofgoldpergramforthepartinexcessofBahtFourHundredbutnotexceedingBahtSixHundred;
(3)tenpercentofthegoldpergramforthepartinexcessofBahtSixHundredbutnotexceedingBahtOneThousand;
(4)fifteenpercentofthepriceofgoldpergramforthepartinexcessofBahtOneThousandbutnotexceedingBahtOneThousandFiveHundred;
(5)twentypercentofthepriceofgoldpergramforthepartinexcessofBahtOneThousandFiveHundred.
TheroyaltypaidtotheThaigovernmentforsilverproductionis10%.
Revenue
Factors
AgoldpriceofUSD1480/troyozandasilverpriceofUSD26/troyozwereusedtocalculatetheremainingreserves.Thecompanyhaspreviouslyusedathreeyearrolling
averagecommoditypricewhichwouldhavebeenUSD1500/ozforgoldandUSD29.5/ozforsilverbutduetothevolatilecommoditypriceschoseamoreconservative
estimatethatequatedtospotpriceatthetimeoftheestimate.
Market
Assessment
ProductionfromtheChatreeGoldMineissoldatspotmarketprices,withnohedgingagreementscurrentlyinplace.
Thecurrentlylifeofmineplanindicatesthattheminecanproducebetween130kOzAuand140kOzAuperyear,andanaverageof610kOzAgperyear,overthe
currentremaining12yearminelife.
Economic
TheprojectNPVwascalculatedusingthesitetwoyearbudgetcostsfromJuly2013toJune2015andappliedtotheLifeofMinePlan,withadjustmentsforexpectedcost
movementsovertime(escalation).
TheprojectNPVwaspositiveandcalculatedusingadiscountrateof7.5%,agoldpriceofUS$1,480/ozwitharemainingminelifeof12years.
Social Chatreegoldminehasverycloseworkingrelationshipswiththecommunitiessurroundingtheproject,withanumberoffundssetuptoprovideservicesandsupport.

17

Criteria Commentary
OtherRisks
Therearenosignificantnaturallyoccurringriskstotheproject.AmajorfloodingeventinThailandin2011didnotimpacttheoperation.
MaterialLegalandMarketingAgreements
OutputfromtheChatreeGoldMineissoldatspotmarketpriceswithnohedgingagreementscurrentlyinplace.
Governmentagreementsandapprovals
ThequotedremainingreservesincludepitsthatrequireGovernmentapprovalstorelocatepublicroadsandextendminingleasesbeforethosereservescanbefully
exploited.
Atthispointintimethereappearstobenoreasonforapprovalstobenotforthcomingintimetoexploittheaffectedreserves.
Classification ResourcesclassifiedasMeasuredthatfallwithinthedesignedpitareclassifiedasProvenreserves.IndicatedresourcesareclassifiedasProbablereserves.
Auditsor
Reviews
TherehavebeennoformalexternalauditsoftheOreReserveestimate.TheOreReserveestimatewaspeerreviewedinternallywithinKingsgate.
Accuracy/
Confidence
LongtermhistoricalreconciliationoftheChatreeresourcemodeltomillproductionshowsahighlevelofconfidencethereportedcontainedmetal.
Thereconciliationcarriedoutisglobalinnatureasorefromdifferentpitsandstockpilesisblendedinthemillfeed.