Broken Hill Cobalt Project

Mineral Resources and Ore Reserves

Mineral Resources Summary as at 30 June 2020

The Mineral Resource estimate for the Broken Hill Cobalt project was independently prepared by SRK Consulting and is reported in accordance with the guidelines of the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (‘2012 JORC Code’). The Mineral Resource estimate comprises 123 Mt at 782 ppm cobalt equivalent (CoEq) (660 ppm Co & 7.3% S) for 81,400 t contained cobalt (at a 275 ppm CoEq cut-off) and is summarised below by classification.
The Mineral Resource is inclusive of the Ore Reserve estimate.

The Mineral Resource estimates for the BHCP deposits (at a 275 ppm CoEq cut-off) detailed by Mineral Resource classification (CoEq = Co ppm + S % * 16.74).

Ore Reserve Summary as at 30 June 2020

The Ore Reserve estimate for the Broken Hill Cobalt project was independently prepared by Australian Mine Design and Development Pty Ltd and is reported in accordance with the guidelines of the 2012 JORC Code. The Ore Reserve estimate comprises 71.8 Mt at 710 ppm cobalt for 51,000 t contained cobalt and is summarised below by classification. The Ore Reserve estimate is based on, and inclusive of the 2019 Mineral Resource initially released on 4 April 2019 and re-reported in 2020 (with an updated cut-off based on Project Update 2020 results). No Inferred Mineral Resources have been used in the estimation of the Ore Reserve.

General Notes:
Data is reported to significant figures to reflect appropriate precision and may not sum precisely due to rounding.
The Mineral Resource and Ore Reserve estimates are as released on 16 July 2020 in the market announcement titled ‘Broken Hill Cobalt Project (BHCP) Project Update 2020’. The Mineral Resource has been reported at a cut-off of 275 ppm cobalt equivalent based on an assessment of material that has reasonable prospects of eventual economic extraction. The cobalt equivalent grade has been derived from the following cut-off calculation: CoEq ppm = Co ppm + (S ppm × (S price/Co price) × (S recovery/Co recovery)). This equates to CoEq ppm = Co ppm + (S% × 16.74). The parameters used for this calculation are listed in the table below. The Company confirms all elements included in the metal equivalence calculation have reasonable potential to be recovered and sold.

Assumption Input
A$/US$ Exchange Rate 0.70
Cobalt Price US$25/lb Co
Sulphur Price US$123/t
Cobalt Recovery 85.5%
Sulphur Recovery 64.4%

The Company confirms it is not aware of any new information or data that materially affects the information included in the relevant market announcements. In the case of Mineral Resources, Ore Reserves and production targets, 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.