annual report 2018...letter dear shareholders, the financial year ending 28 february 2018 was a year...

2018ANNUAL REPORT

DIRECTORSBrian GilbertsonNon-Executive Chairman

Priyank ThapliyalExecutive Director

Paul MurrayNon-Executive Director

Mr Sungwon YoonNon-Executive Director

Andrew BellNon-Executive Director

EXECUTIVESPriyank ThapliyalChief Executive Officer

Melissa NorthCompany Secretary and Chief Financial Officer

PRINCIPAL OFFICELevel 1016 St Georges TerracePerth WA 6000

Telephone: (08) 9346 5500Facsimile: (08) 9481 5933Email: [email protected]

SHARE REGISTRYLINK MARKET SERVICES LIMITEDQV1 Building, Level 12, 250 St Georges Terrace, Perth WA 6000

Telephone: 1300 554 474Fax: (02) 9287 0303Email: [email protected]: www.linkmarketservices.com.au

AUDITORSGRANT THORNTON AUDIT PTY LTD Level 43, 152-158 St Georges Terrace, Perth WA 6000

Telephone: (08) 9480 2000Facsimile: (08) 9322 7787Email: [email protected]: www.grantthornton.com.au

CORPORATE DIRECTORY

Cover photograph: Tshipi é Ntle manganese mine pit

i

ABN 51 105 991 740

CONTENTS PAGEChairman’s Letter 2

Review of Operations 3

Directors’ Report 12

Remuneration Report (Audited) 16

Corporate Governance Statement 23

Auditor’s Independence Declaration 32

Statement of Consolidated Profit or Loss and Other Comprehensive Income 33

Statement of Consolidated Financial Position 34

Statement of Consolidated Changes in Equity 35

Statement of Consolidated Cash Flows 36

Notes to the Consolidated Financial Statements 37

Directors’ Declaration 64

Independent Auditor’s Report 65

Additional Information For Listed Companies 70

Appendices: JORC Tables 72

1

A N N U A L R E P O R T 2 0 1 8

CHAIRMAN’S LETTERDear Shareholders,

The financial year ending 28 February 2018 was a year of record performance for Jupiter Mines Limited, culminating in the biggest mining IPO on the ASX of this decade. Trading in our shares started on 18th April, valuing Jupiter at some A$720 million. I record my thanks to the ASX for their assistance and efficiency in getting the IPO done in excellent time; to our advisors and brokers who worked hard towards that outcome; to our pre-IPO shareholders for supporting our strategy and its execution; and above all I welcome our new Australian institutional shareholders to our share register.

Tshipi Borwa in South Africa, of which Jupiter owns 49.9%, is one of the largest, longest-life and lowest-cost manganese exporters globally. Founded on an excellent operating performance, Tshipi sales in the 2018 financial year grew to 3.3 million tonnes into a market of healthy manganese prices. Jupiter’s share of Tshipi’s profit was $94 million, enabling the distribution, with marketing profits, of over $102 million to its shareholders, thus an increase of over 100% on the prior year. Jupiter has now already returned to its shareholders 160% of the initial capital investment. A long mine-life remains to enable further distributions in reasonable markets for many decades to come.

For the foreseeable future, I expect Tshipi to remain the bed-rock of our business. Nevertheless, shareholders will be aware of infrastructure in the Yilgarn region, and particularly at Esperance Port, potentially becoming available with the pending termination of Cliffs operations there. In stronger iron ore markets, that might eventually create opportunities to realise the option value intrinsic in our Mount Ida Magnetite and Mount Mason Hematite Projects. I know of no other iron ore opportunity in the region which even approaches the size of our Mount Ida resources, which size would be needed to utilise the Esperance facilities in the long-term, so to amortise expenditures over an extended period.

I conclude by recording my great gratitude to Mr Priyank Thapliyal, whose enormous contributions to the development of Tshipi and the success of our IPO can hardly be overestimated; and also to Ms Melissa North for her able support to Priyank during this past year.

Yours faithfully,

Jupiter Mines Limited

Brian GilbertsonChairman

Figure 1: Jupiter Board and Management at the Company’s Listing Ceremony, 18 April 2018

Figure 2: CEO Priyank Thapliyal and Chairman Brian Gilbertson ring the ASX bell to start Jupiter trading

2

J U P I T E R M I N E S L I M I T E D

Chairman’s Letter

REVIEW OF OPERATIONS Jupiter Mines Limited (“Jupiter” or the “Company”) has an interest in two projects: a 49.9% share in Tshipi é Ntle Manganese Mining Proprietary Limited (“Tshipi”), which operates the Tshipi Borwa Manganese mine in South Africa; and in Australia, the Central Yilgarn Iron Project (“CYIP”), which includes the Mount Ida Magnetite Project and Mount Mason Hematite Project.

TSHIPI BORWA MANGANESE MINE The Tshipi Borwa mine is an open-pit manganese mine with an integrated ore processing plant located in the Kalahari Manganese Fields, in the Northern Cape Province of South Africa, which is the largest Manganese bearing geological formation in the world.

During the year, Tshipi produced 3.64mt at an average cost of US$2.09 per dmtu and sold 3.34mt of manganese ore with the average manganese price being US$4.74 per dmtu (37% FOB Port Elizabeth). It is currently operating at a production run-rate of approximately 3.6mtpa, which is estimated to make it the largest single manganese mine in South Africa and one of the five largest manganese exporters globally.

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Production Profile (’000t)

Figure 4: Production profile for 2018 financial year

As the manganese market continued to steadily increase over the year, Tshipi capitalised on this with its favourable position on the global manganese cost curve. After making its first distribution to shareholders in February 2017 of ZAR1 billion, Tshipi made additional distributions of ZAR500 million and ZAR1.1 billion in September 2017 and February 2018 respectively. This signalled the return, in full, of original investment capital to shareholders, as well as the first dividend paid from profits.

Figure 3: Tshipi Manganese Mine Location Map

3Review of Operations

A N N U A L R E P O R T 2 0 1 8

Set out below is the audited profit and loss statement and balance sheet for Tshipi:

ZAR’000 Year Ended 28 February 2018

Year Ended 28 February 2017

INCOME STATEMENT:Revenue 7,140,808 3,777,213Cost of goods sold (3,982,254) (2,350,432)Gross margin 3,158,554 1,426,781Other income 6,531 3,013Administrative expenses (5,628) (5,280)Impairment of property, plant and equipment / loss on derecognition (20,825) -Other operating expenses (370,363) (93,549)Operating profit 2,768,269 1,330,965Finance income 34,771 19,484Finance expenses (91,034) (111,771)Profit before taxation 2,712,006 1,238,678Taxation (810,537) (347,641)Profit after taxation 1,901,469 891,037

BALANCE SHEET:Current assetsTax receivable - 2,129Royalties prepaid 6,087 -Inventory 382,153 316,117Trade and other receivables 882,016 472,445Cash and cash equivalents 209,562 469,218Total current assets 1,479,818 1,259,909

Non-current assetsProperty, plant and equipment 1,755,374 1,777,861Mineral rights 189,104 194,792Other financial assets 24,972 21,742Deferred stripping activity assets 424,367 290,420Total non-current assets 2,393,817 2,284,815Total assets 3,873,635 3,544,724

Current liabilitiesTax payable 7,372 -Loan from related parties - 929,399Trade and other payables 385,382 474,712Total current liabilities 392,754 1,404,111

Non-current liabilitiesDecommissioning and rehabilitation provision 45,797 32,209Deferred tax 567,234 471,422Total non-current liabilities 613,031 503,631Total liabilities 1,005,785 1,907,742

EquityShare capital and share premium 321,359 321,359Retained earnings 2,429,530 1,198,662Contributed assets reserve 116,961 116,961Total equity 2,867,850 1,636,982Total equity and liabilities 3,873,635 3,544,724

4


Review of Operations

Jupiter commissioned an independent valuation of its stake in Tshipi according to valuation and accounting standards as at 31 December 2017. The preferred valuation of the Jupiter’s investment was concluded to be ZAR6,751 million (approximately $741 million; ZAR:AUD9.11). Under the equity accounting standards which the investment is accounted for, a further revaluation to the $741 million valuation amount is not permitted. Further information on the investment balance is provided at Note 15.

SOUTH AFRICAN MARKETING BRANCHJupiter continued its operations in South Africa marketing its 49.9% of Tshipi manganese ore (“Jupiter SA”). Jupiter SA has been carrying out the sale and export of Jupiter’s share of Tshipi’s manganese ore. For the financial year to 28 February 2018, gross loss of $84,940 was recorded by the marketing branch (gross profit 2017: $9,256,987), and marketing fee income of $10,048,724 (2017: $1,245,317). 2018 revenue and cost of sales relate to final adjustment invoices from 2017.

CENTRAL YILGARN IRON PROJECTSThe Central Yilgarn Iron Project (“CYIP”) area is located 130km by road northwest of the town of Menzies. The CYIP consists of the smaller DSO project (Mount Mason) and the flagship long-life Magnetite Project (Mount Ida).

Both projects are planned around existing infrastructure in the region, including the Leonora to Esperance railway line, and the Port of Esperance. Access to existing infrastructure is becoming available later in the 2018 calendar year, which opens up prospects of these projects.

With iron ore prices remaining unstable and access to infrastructure to be investigated, both the Mount Ida Magnetite Project and Mount Mason Hematite Project remain on care and maintenance.

Jupiter commissioned an independent valuation of its iron ore assets in line with valuation and accounting standards. The valuation recommended the Mount Ida Magnetite Project to be valued at between $3 million and $25 million, and the Mount Mason DSO Hematite Project valued at between $0.3 million and $1 million. Upon further examination, the Board has resolved to adopt valuations of $8.1 million for Mount Ida and $0.6 million for Mount Mason and recognised an impairment of $4.4 million and reversal of impairment of $0.3 million respectively. These amounts have been recognised in Statement of Profit or Loss and Other Comprehensive Income. Further information is provided at Note 14 of the financial statements.

These projects will remain on care and maintenance until economic conditions improve and access to infrastructure is available.

MOUNT IDA MAGNETITE PROJECT

The flagship Mount Ida Magnetite Project has the reserves to be a tier one long-life magnetite mine.

Jupiter suspended work on the Mount Ida Feasibility Study in November 2012, and the project remains on care and maintenance. No work has been undertaken on this project in this financial year.

MOUNT MASON DSO HEMATITE PROJECT

The Mount Mason high-grade hematite mineralisation is located approximately 12km northwest of the Mount Ida Magnetite Project. It has the potential to be a low-cost start-up, near term project with a short payback period. It is envisaged that the proposed Mount Mason Project, upon completion, would lead to mining at the Mount Ida magnetite deposit.

Jupiter suspended optimisation of the Mount Mason Feasibility Study at the end of 2014, and the project remains on care and maintenance. No work has been undertaken on this project in this financial year.

MINERAL RESOURCES AND ORE RESERVES AND COMPETENT PERSONS STATEMENTSTSHIPI MINERAL RESOURCES AND ORE RESERVES

Jupiter reports mineral resources and ore reserves in accordance with the 2012 edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) as required by Chapter 5 of the ASX Listing Rules.

Tshipi is a long mine life and a large JORC Mineral Resource Position. The following tables show the mineral resources and ore reserves of the Tshipi Mine in accordance with the JORC Code (2012) as at 31 December 2017, and comparison to previous year. There have been no material movements between the date of the below statements and the end of the financial year.

Figure 5: CYIP Project Location Map


A N N U A L R E P O R T 2 0 1 8

Tshipi mineral resources (inclusive of ore reserves): Classification Zone Tonnes Mn (%) Fe (%) SG (t/m3 )

Measured

X 19 305 000 31.87 4.81 3.55 Y 9 532 000 22.24 5.74 3.32 Z 9 104 000 32.52 5.78 3.60 M 16 945 000 38.15 4.63 3.76 C 31 982 000 36.40 3.74 3.66 N 13 733 000 35.62 4.87 3.65

Supergene 1 999 000 36.44 4.70 3.49 Total 102 602 000 34.07 4.63 3.61

Indicated

X 37 272 000 31.20 4.91 3.50 Y 6 237 000 23.10 5.45 3.28 Z 16 712 000 31.39 6.33 3.54 M 15 417 000 37.79 5.27 3.74 C 32 957 000 36.69 3.74 3.68 N 10 858 000 34.95 5.46 3.66

Total 119 455 000 33.51 4.91 3.58

Inferred

X 67 955 000 30.92 5.22 3.52 Y 22 730 000 25.41 5.35 3.35 Z 22 802 000 31.39 5.73 3.57 M 43 817 000 34.67 5.10 3.68 C 53 450 000 35.35 4.13 3.66 N 26 726 000 34.43 5.41 3.66

Total 237 483 000 32.52 5.04 3.58 Total Mineral Resource 459 541 000 33.13 4.91 3.59

Tonnes are rounded down to 1 000t Tshipi ore reserves:

Zone Tonne Mn (%) SG (t/m3)

Proved

Z 2 913 000 31.62 3.59 M 12 181 000 38.01 3.77 C 24 379 000 36.47 3.68 N 7 410 000 34.36 3.65

Supergene 766 000 37.03 3.51 Sub-total 47 649 000 36.25 3.69

Probable

Z 3 265 000 32.12 3.56 M 9 230 000 38.20 3.75 C 21 749 000 36.83 3.68 N 4 517 000 33.86 3.65

Sub-total 38 761 000 36.41 3.68 Total Ore Reserve 86 410 000 36.32 3.69

Tonnes are rounded down to 1 000t Figure 6: Mineral resources and ore reserves of the Tshipi Mine in accordance with JORC Code (2012) as at 31 December 2017

Reconciliation of Mineral Resources and Ore Reserves to Previous Statements

Classification Zone Tonnes Mn (%) Fe (%) SG (t/m3)

Measured

X 15 857 000 32 4.76 3.66 Y 8 523 000 22.4 5.54 3.51 Z 7 427 000 32.26 5.81 3.64 M 15 782 000 38.18 4.55 3.71 C 27 446 000 36.41 3.76 3.56 N 9 212 000 35.51 4.94 3.65

Supergene 3 635 000 35.34 5.23 3.52 Total 87 882 000 34.08 4.61 3.55

Indicated

X 20 570 000 31.44 4.77 3.52 Y 4 010 000 22.24 5.42 3.51 Z 9 660 000 31.52 5.97 3.62 M 12 200 000 37.45 5.04 3.69 C 20 600 000 36.82 3.79 3.56 N 7 530 000 34.85 5.24 3.45

Total 74 570 000 33.77 4.78 3.56

Inferred

X 68 360 000 31.08 5.06 3.52 Y 18 410 000 24.18 5.43 3.49 Z 28 800 000 31.4 5.76 3.62 M 51 650 000 35.35 5.06 3.72 C 60 490 000 35.73 4.12 3.5 N 27 550 000 34.37 5.44 3.51

Total 255 260 000 32.94 4.98 3.56 Total Resource 417 712 000 33.33 4.87 3.56 Tonnes are rounded down to 1 000t Figure 7: Previous Mineral Resource Estimate as at 31 December 2016

TSHIPI MINERAL RESOURCES AND ORE RESERVES (CONTINUED)

6



TSHIPI MINERAL RESOURCES AND ORE RESERVES (CONTINUED)

69

Classification Zone Tonnes Mn (%) Fe (%) SG (t/m3)

Measured

X 3 448 000 -0.1 0.0 -0.1 Y 1 009 000 -0.2 0.2 -0.2 Z 1 677 000 0.3 0.0 0.0 M 1 163 000 0.0 0.1 0.0 C 4 536 000 0.0 0.0 0.1 N 4 521 000 0.1 -0.1 0.0

Supergene -1 636 000 1.1 -0.5 0.0 Total 14 720 000 0.0 0.0 0.1

Indicated

X 16 702 000 -0.2 0.1 0.0 Y 2 227 000 0.9 0.0 -0.2 Z 7 052 000 -0.1 0.4 -0.1 M 3 217 000 0.3 0.2 0.0 C 12 357 000 -0.1 0.0 0.1 N 3 328 000 0.1 0.2 0.2

Total 44 885 000 -0.3 0.1 0.0

Inferred

X -405 000 -0.2 0.2 0.0 Y 4 320 000 1.2 -0.1 -0.1 Z -5 998 000 0.0 0.0 -0.1 M -7 833 000 -0.7 0.0 0.0 C -7 040 000 -0.4 0.0 0.2 N -824 000 0.1 0.0 0.2

Total -17 777 000 -0.1 0.0 -0.1 Total Resource 41 829 000 -0.2 0.0 0.0

Tonnes are rounded down to 1 000t

Figure 8: Reconciliation between 31 December 2017 and 31 December 2016 mineral resource estimates

The following is noted with regards to the reconciliation of 31 December 2017 to 31 December 2016 of mineral resources:

� The measured mineral resource has increased by 14.7Mt

� The indicated mineral resource has increased by 44.8Mt

� The inferred mineral resource has decreased by 17.8Mt

Zone Tonne Mn (%) SG

Proved

Z 3 457 000 31.89 3.65 M 11 776 000 38.22 3.72 C 20 814 000 36.46 3.55 N 6 272 000 35.68 3.54

SUPER 2 423 000 34.72 3.48 Sub-total 44 744 000 36.37 3.6

Probable

Z 1 932 000 31.92 3.64 M 4 031 000 38.63 3.69 C 7 821 000 36.98 3.57 N 2 052 000 34.74 3.45

Sub-total 15 838 000 36.49 3.59 Total 60 583 000 36.40 3.60

Figure 9: Previous Ore Reserve as at 31 December 2016


A N N U A L R E P O R T 2 0 1 8

MOUNT IDA MINERAL RESOURCE ESTIMATES (CONTINUED)

Zone Tonnes Mn (%) SG

Proved

Z -544 000 -0.3 -0.06 M 405 000 -0.2 0.05 C 3 565 000 0.0 0.13 N 1 138 000 -1.3 0.11

SUPER -1 657 000 2.3 0.03 Sub-Total 2 905 000 -0.1 0.09

Probable

Z 1 333 000 0.2 -0.08 M 5 199 000 -0.4 0.06 C 13 928 000 -0.2 0.11 N 2 465 000 -0.9 0.20

Sub-Total 22 923 000 -0.1 0.09 Total 25 827 000 -0.1 0.09

Figure 10: Reconciliation between 31 December 2017 and 31 December 2016 ore reserves

The total ore reserves have increased by some 25.8Mt. The majority of this was in the probable category and was a result of inferred mineral resources being upgraded to indicated mineral resources, after the 2017 exploration campaign. Mining depletion during the period was approximately 3.3Mt.

The information in this report and this mineral resources and ore reserves statement with respect of the Tshipi mine that relates to Reporting of Mineral Resources and Ore Reserves estimation is based on and fairly represents information compiled by Mr Stewart Nupen and Mr Jonathan Buckley. Mr Jonathan Buckley is a Fellow of the Southern African Institute of Mining and Metallurgy. Mr Stewart Nupen is a member of the Southern African Institute of Mining and Metallurgy. Mr Nupen and Mr Buckley are employed by Mineral Corporation Consultancy (Pty) Ltd trading as “The Mineral Corporation”. They have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which being undertaking to qualify as a “Competent Person” as defined in the JORC Code. Mr Buckley and Mr Nupen have approved this mineral resources and ore reserves statement as a whole and each consent to the inclusion in this report of the statements based on their information as provided in the Competent Persons Report dated 31 December 2017, in the form and context in which they appear.

MOUNT IDA MINERAL RESOURCE ESTIMATES

The following tables show the mineral resources estimates of the Mount Ida project in accordance with the JORC Code (2012) as at 7 February 2018. There have been no material between the date of the below statements and the end of the financial year. There have been no material changes since the last mineral resource estimate (ASX Announcements 4 September 2012 and 8 January 2013) therefore no reconciliation is shown.

Central Zone based on Unweathered BIF with a 10% Magnetic Fe block grade cut-off

Zone/ Class Material Tonnes x106 Fe

(%)SiO2(%)

Al2O3(%)

CaO (%)

P(%)

S(%)

LOI (%)

MgO (%)

MnO (%)

Central In situ Total 1,062 30.23 48.47 1.88 2.70 0.07 0.28 -0.56 3.00 0.07Indicated In situ Magnetic 38.45% 25.64 2.64 0.02 0.07 0.01 0.09 -1.14 0.05 0.01

Concentrate 409 66.69 6.86 0.05 0.17 0.01 0.23 -2.97 0.12 0.02

Central In situ Total 169 27.03 51.68 2.40 2.92 0.07 0.31 -0.43 3.33 0.10Inferred In situ Magnetic 32.12% 21.31 2.34 0.02 0.06 0.01 0.10 -0.96 0.05 0.01

Concentrate 54 66.34 7.28 0.05 0.17 0.02 0.32 -2.98 0.15 0.02

Central In situ Total 1,231 29.79 48.91 1.95 2.73 0.07 0.28 -0.54 3.05 0.08Total In situ Magnetic 37.58% 25.05 2.60 0.02 0.06 0.01 0.09 -1.12 0.05 0.01

Concentrate 463 66.65 6.91 0.05 0.17 0.01 0.24 -2.97 0.12 0.02

South and North Zone based on Unweathered BIF with a 10% Magnetic Fe block grade cut-off

Class Material Tonnes x106 Fe(%)

SiO2(%)

Al2O3(%)

CaO (%)

P(%)

S(%)

LOI (%)

MgO (%)

MnO (%)

South In situ Total 567 28.63 49.92 2.35 3.47 0.07 0.36 -0.65 2.76 0.09Inferred In situ Magnetic 34.26% 22.93 2.26 0.02 0.07 0.01 0.17 -1.02 0.05 0.01

Concentrate 194 66.93 6.60 0.06 0.21 0.02 0.50 -2.96 0.14 0.03

North In situ Total 48 31.63 48.82 1.54 2.20 0.07 0.12 -0.84 2.07 0.06Inferred In situ Magnetic 42.36% 28.32 2.97 0.01 0.07 0.01 0.04 -1.32 0.05 0.02

Concentrate 20 66.85 7.02 0.03 0.16 0.02 0.09 -3.11 0.13 0.05

Nth + Sth In situ Total 615 28.86 49.84 2.28 3.37 0.07 0.34 -0.67 2.71 0.09Total In situ Magnetic 34.89% 23.35 2.32 0.02 0.07 0.01 0.16 -1.04 0.05 0.01

Concentrate 214 66.92 6.64 0.05 0.20 0.02 0.46 -2.98 0.14 0.04

Combined Central, South and North Zones based on Unweathered 10% BIF with a Magnetic Fe block grade cut-off


(%)SiO2(%)

Al2O3(%)

CaO (%)

P(%)

S(%)

LOI (%)

MgO (%)

MnO (%)


Concentrate 408 66.69 6.86 0.05 0.17 0.01 0.23 -2.97 0.12 0.02


Concentrate 269 66.81 6.77 0.05 0.20 0.02 0.43 -2.98 0.14 0.03


Concentrate 677 66.74 6.83 0.05 0.18 0.01 0.31 -2.97 0.13 0.03



(%)SiO2(%)

Al2O3(%)

CaO (%)

P(%)

S(%)

LOI (%)

MgO (%)

MnO (%)


Concentrate 409 66.69 6.86 0.05 0.17 0.01 0.23 -2.97 0.12 0.02


Concentrate 54 66.34 7.28 0.05 0.17 0.02 0.32 -2.98 0.15 0.02


Concentrate 463 66.65 6.91 0.05 0.17 0.01 0.24 -2.97 0.12 0.02



SiO2(%)

Al2O3(%)

CaO (%)

P(%)

S(%)

LOI (%)

MgO (%)

MnO (%)


Concentrate 194 66.93 6.60 0.06 0.21 0.02 0.50 -2.96 0.14 0.03


Concentrate 20 66.85 7.02 0.03 0.16 0.02 0.09 -3.11 0.13 0.05


Concentrate 214 66.92 6.64 0.05 0.20 0.02 0.46 -2.98 0.14 0.04



(%)SiO2(%)

Al2O3(%)

CaO (%)

P(%)

S(%)

LOI (%)

MgO (%)

MnO (%)


Concentrate 408 66.69 6.86 0.05 0.17 0.01 0.23 -2.97 0.12 0.02


Concentrate 269 66.81 6.77 0.05 0.20 0.02 0.43 -2.98 0.14 0.03


Concentrate 677 66.74 6.83 0.05 0.18 0.01 0.31 -2.97 0.13 0.03

8





(%)SiO2(%)

Al2O3(%)

CaO (%)

P(%)

S(%)

LOI (%)

MgO (%)

MnO (%)


Concentrate 409 66.69 6.86 0.05 0.17 0.01 0.23 -2.97 0.12 0.02


Concentrate 54 66.34 7.28 0.05 0.17 0.02 0.32 -2.98 0.15 0.02


Concentrate 463 66.65 6.91 0.05 0.17 0.01 0.24 -2.97 0.12 0.02



SiO2(%)

Al2O3(%)

CaO (%)

P(%)

S(%)

LOI (%)

MgO (%)

MnO (%)


Concentrate 194 66.93 6.60 0.06 0.21 0.02 0.50 -2.96 0.14 0.03


Concentrate 20 66.85 7.02 0.03 0.16 0.02 0.09 -3.11 0.13 0.05


Concentrate 214 66.92 6.64 0.05 0.20 0.02 0.46 -2.98 0.14 0.04



(%)SiO2(%)

Al2O3(%)

CaO (%)

P(%)

S(%)

LOI (%)

MgO (%)

MnO (%)


Concentrate 408 66.69 6.86 0.05 0.17 0.01 0.23 -2.97 0.12 0.02


Concentrate 269 66.81 6.77 0.05 0.20 0.02 0.43 -2.98 0.14 0.03


Concentrate 677 66.74 6.83 0.05 0.18 0.01 0.31 -2.97 0.13 0.03

Figure 11: Mineral resource estimates for Mount Ida in accordance with JORC Code (2012)

MOUNT MASON MINERAL RESOURCE ESTIMATES

The following tables show the mineral resources estimates of the Mount Mason project in accordance with the JORC Code (2012) as at 7 February 2018. There have been no material between the date of the below statements and the end of the financial year. There have been no material changes since the last mineral resource estimate (Mineral Resource Statement 22 December 2011, December 2011 Quarterly Report, released 30 January 2012), therefore no reconciliation is shown.

Classification Tonnes Fe(%)

SiO2(%)

Al2O3(%) P (%) S (%) CaO

(%)MgO(%)

LOI(%)

Measured 4,800,000 60.3 7.37 2.90 0.05 0.01 0.03 0.04 2.63

Indicated 1,080,000 59.4 10.41 3.47 0.06 0.01 0.03 0.05 2.55

Inferred 320,000 58.4 14.10 4.37 0.08 0.01 0.03 0.06 2.88

Total Measured + Indicated 5,900,000 60.1 7.92 3.01 0.05 0.01 0.03 0.04 2.62

Figure 12: Mineral resource estimates Mount Mason in accordance with JORC Code (2012)

The information in this report and this mineral resources and ore reserves statement with respect to the CYIP that relates to mineral resource estimates is based on and fairly represents information compiled by Dr Michael Cunningham and Mr Rodney Brown, who are each Members of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Dr Cunningham and Mr Brown are employed by SRK Consulting (Australasia Pty Ltd). They have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which being undertaking to qualify as a “Competent Person” as defined in the JORC Code. Dr Cunningham and Mr Brown have approved this mineral resources and ore reserves statement as a whole and each consent to the inclusion in this report of the statements based on their information as provided in the Independent Geologists Report dated February 2018, in the form and context in which they appear.

SUMMARY OF GOVERNANCE ARRANGEMENTS AND INTERNAL CONTROLS

Mineral Resource and Ore Reserves are estimated by suitably qualified Jupiter or Tshipi personnel or external consultants in accordance with the requirements of the JORC Code, industry standard techniques and internal guidelines for the estimation and reporting of Ore Reserves and Mineral Resources.

All Mineral Resource estimates and supporting documentation are prepared and reviewed by a suitably qualified external Competent Person. All Ore Reserves estimates and supporting documentation are reviewed by a suitably qualified external Competent Person. All Ore Reserve estimates are prepared in conjunction with feasibility studies and Company budgets which consider all material factors. The Mineral Resources and Ore Reserves Statement included in the Annual Report is reviewed by a suitably qualified external Competent Person prior to its inclusion.


A N N U A L R E P O R T 2 0 1 8

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1 0



ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED

28 FEBRUARY 2018ABN 51 105 991 740 CONSOLIDATED ENTITY

1 1Annual Financial Report

A N N U A L R E P O R T 2 0 1 8

DIRECTORS’ REPORT In accordance with a resolution of Directors, the Directors present their Report together with the Financial Report of Jupiter Mines Limited (Jupiter) and its wholly owned subsidiaries (together referred to as the Consolidated Entity or Group) for the financial year ended 28 February 2018 and the Independent Auditor’s Report thereon.

DIRECTORSThe Directors of Jupiter at any time during or since the end of the financial year are as follows:

Non-Executive

� Brian Patrick Gilbertson

� Paul Raymond Murray

� Andrew Bell

� Sungwon Yoon

Executive

� Priyank Thapliyal

Additional information is provided below regarding the current Directors.

Brian Patrick Gilbertson BSc (Maths and Physics), BSc (Hons) (Physics), MBL, PMD45

(Chairman; Non-Executive Director; Member of the Remuneration and Nomination Committee, appointed 15 March 2018)

Mr Gilbertson was appointed a Director on 22 June 2010.

Mr Gilbertson has extensive experience in the global natural resources industry. He was Managing Director of Rustenburg Platinum Mines Limited in the 1980’s, a period during which the company gained recognition as the world’s foremost producer of platinum. In the 1990’s, as Executive Chairman of Gencor Limited, he led the restructuring of the South African mining industry into the post-Apartheid era, transforming Gencor Limited into a focused mineral and mining group. During this period he held ultimate responsibility for Impala Platinum Holdings, for Samancor Limited (the world’s largest producer of manganese and chrome ore and alloys) and for Trans-Natal Coal Corporation (a major coal producer and exporter). Important new initiatives included the Hillside and Mozal aluminium smelters, the Columbus stainless steel plant, and the purchase of the international mining assets (Billiton plc) of the Royal Dutch Shell Group.

In 1997, Gencor Limited restructured its non-precious metals interests as Billiton plc. With Mr Gilbertson as Executive Chairman, Billiton plc raised US$1.5 billion in an initial public offering on the LSE, taking the company into the FTSE 100. Separately, Mr Gilbertson worked to merge the gold operations of Gencor and Gold Fields of South Africa, creating Gold Fields Limited, a leader

in the world gold mining industry. He served as its first Chairman until October 1998. In 2001, Billiton plc merged with BHP Limited to create what is widely regarded as the world’s premier resources company, BHP Billiton plc. Mr Gilbertson was appointed its second Chief Executive on 1 July 2002.

In late 2003, Mr Gilbertson led mining group Vedanta Resources plc (Vedanta) to the first primary listing of an Indian company on the London Stock Exchange in the second largest IPO of the year (US$876 million). He served as Chairman of Vedanta until July 2004.

He was appointed President of Sibirsko-Uralskaya Aluminium Company (SUAL), the smaller aluminium producer in Russia and led that company into the US$30 billion merger with RUSAL and the alumina assets of Glencore International A.G., creating the largest aluminium company in the world.

Mr Gilbertson established Pallinghurst Advisors LLP and Pallinghurst (Cayman) GP L.P. during 2005 and 2007 respectively, to develop opportunities on behalf of a group of natural resource investors, which currently a shareholder of Jupiter.

Mr Gilbertson is the non-executive chairman of Pallinghurst Resources Limited, a company listed on the Johannesburg Stock Exchange (JSE: PRL), and is a director of various companies controlled by PRL.

Mr Gilbertson is a British and South African citizen. He has not been a Director of any other ASX listed company in the past three years.

1 2


Directors’ Report

Paul Raymond Murray FFin, CPA

Independent Non-Executive Director; Remuneration Committee Chairman; Audit Committee Chairman

Paul is a founding director of Jupiter Mines Limited and was Chairman at the time of formation in August 2003. Paul was appointed as a Director of the Company on 20 August 2003. He has served continuously since that time as Chairman of both the Audit Committee and the Remuneration and Nomination Committee.

In addition to attending to various statutory duties as required, Paul has a strong record of attendance at Company board and shareholder meetings and contributes to consideration and discussions in respect of matters on the Company’s business papers.

Apart from academic qualifications which are relevant to his roles, Paul has held positions on boards of a number of ASX listed companies. Mining experience includes exploration for and mining of tin in the New England district of NSW and service on the boards of successful Australian oil and gas companies, Basin Oil NL and Reef Oil NL.

Andrew Bell B.A. (Hons), M.A., LLB (Hons)

Independent Non-Executive Director; Audit Committee Member; Remuneration Committee Member

Mr Bell was appointed as a Director of Jupiter on 4 June 2008.

Mr Bell is Chairman of Red Rock Resources plc, and Regency Mines plc, being companies listed on the AIM market of the London Stock Exchange Ltd. He was a natural resources analyst in London in the 1970s, then specialised in investment and investment banking covering the Asia region.

He has been involved in the resource and mining sectors in Asia since the 1990s, and has served on the Boards of a number of listed resource companies.

Sungwon Yoon MBA (Vanderbilt, the US)

Non-Executive Director; Audit Committee Member, appointed 15 March 2018

Mr Yoon was appointed as a Director of Jupiter on 31 March 2016.

Mr Yoon is the Managing Director of POSCO Australia Pty Ltd, a significant shareholder of the Company.

After joining POSCO in 1992, Mr Yoon has focused on steel making raw materials during his career. He has over 25 years’ experience in various roles and responsibilities across POSCO’s raw materials procurement, investment, strategy and transportation. Before assuming the Managing Director role of POSCO Australia in March 2016, Mr Yoon was the General Manager of the POSCO coal procurement group.

Priyank Thapliyal Metallurgical Engineer, B Tech, M Eng, MBA (Western Ontario, Canada)

Executive Director; Chief Executive Officer

Priyank Thapliyal was appointed as a Director of the Company on 4 June 2008.

Priyank joined Sterlite Industries in 2000 and worked alongside Mr Anil Agarwal (owner) to implement the strategies that led to the creation of Vedanta Resources plc, a FTSE 100 company. Vedanta floated on the London Stock Exchange (LSE) in December 2003 and raised USD 870 million in its IPO, in what was the largest mining IPO on the LSE that year, and also the first primary listing of an Indian company on the LSE. The success of the Vedanta IPO was instrumental in other emerging market mining companies seeking LSE listings.

Subsequent to the LSE listing, he led Vedanta’s first major overseas acquisition via the USD 50 million controlling investment in Konkola Copper Mines (KCM) in Zambia in 2004. At the time of his departure in October 2005 to co-found Pallinghurst Advisors LLP, the KCM stake was valued at USD 1 billion and Vedanta had a market capitalisation of USD 7.5 billion.

Priyank has been instrumental in delivering Pallinghurst Advisors LLP’s steel feed strategy via Jupiter. That has led to the creation of the flagship Tshipi Mine, from what was a greenfield project, into one of the largest, long-life and low-cost assets of strategic importance.

Prior to Vedanta, Priyank was a mining and metals investment banker with CIBC World Markets in Toronto Canada, is a qualified Metallurgical Engineer, MBA and former Falconbridge employee.

Mr Thapliyal has not been a Director of any other ASX listed companies in the past three years.

Melissa North B.Com, CA

Company Secretary

Ms Melissa North joined Jupiter Mines in May 2012 as Group Financial Controller and was subsequently appointed CFO and Company Secretary on 15 November 2012.

Prior to joining Jupiter, Ms North held various roles in finance management and business advisory services over almost a decade, including Group Financial Controller positions within the Chime Communications Group (London) and other large media agencies in the United Kingdom. Ms North qualified as a Chartered Accountant in 2004 after extensive work experience at Grant Thornton Perth (now Crowe Horwath).

DIRECTORS (CONTINUED)

1 3Directors’ Report

A N N U A L R E P O R T 2 0 1 8

PRINCIPAL ACTIVITIESThe principal activities of Jupiter during the year have been the operation of the Tshipi Manganese Mine in South Africa and the sale of manganese ore.

REVIEW OF FINANCIAL RESULTS AND OPERATIONS The consolidated results of Jupiter for the year ended 28 February 2018 was a profit of $92,205,663 after a $5,584,142 tax expense (2017: profit of $200,099,335 after a $5,619,368 tax expense). Further details of the results of the Consolidated Entity are set out in the accompanying financial statements in this Annual Report.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRSDuring the year, the Company undertook two equal access share buy-backs in March and December 2017, reducing the issued capital of the Company by 217,312,665 ordinary shares. Refer to Note 19.

Jupiter’s marketing branch commenced the purchase and sale of Jupiter’s share of manganese ore as an agent, recording a marketing commission instead of sales and cost of sales in the Statement of Profit or Loss and Other Comprehensive Income.

DIVIDENDSNo dividends were paid or declared during the year by Jupiter.

FINANCIAL POSITIONAt 28 February 2018, Jupiter held $76,544,487 in cash and cash equivalents (2017: $84,709,260), had a carrying value of investments using the equity method of $385,267,255 (2017: 345,556,557) and carrying value of exploration expenditure of $8,700,000 (2017: $11,632,006).

SIGNIFICANT EVENTS AFTER REPORTING DATEThese financial statements were authorised for issue on 29 May 2018 by Director Brian Gilbertson.

Jupiter undertook an equal access share buy-back, offering to buy-back 5.81% of issued capital for $0.44 per share, comprising a capital portion of $0.23 per share and dividend portion of $0.21 per share. The offer period closed on 19 February 2018. Subsequently on 19 March 2018, 116,182,215 shares were cancelled, and proceeds of $51,120,174 were paid to shareholders.

Jupiter was admitted to the official list of the Australian Securities Exchange on 18 April 2018, following a $240 million Initial Public Offering (“IPO”).

As part of the IPO, a number of shareholders have entered into Voluntary Escrow Deeds under which they have undertaken to the Company not to dispose of any interest in, or to grant any security over, certain Shares held by them on completion of the Offer. Please refer to the Company’s prospectus for full details.

Upon successful listing of Jupiter, Jupiter CEO Priyank Thapliyal was entitled to receive a bonus which is to be satisfied by the issue of 10,650,530 shares (please refer to Remuneration Report for full details). The issue of these shares is to be approved by an ordinary resolution at the Company’s 2018 Annual General Meeting. If not approved, the bonus will be payable in cash equal to the IPO offer price, being $4,260,212.

LIKELY DEVELOPMENTS, BUSINESS STRATEGIES AND PROSPECTSThe operations at the Tshipi Borwa Manganese Mine are expected to continue in a similar manner to present.

The Directors still intend Jupiter to proceed with the development of Jupiter’s Mount Ida Magnetite and Mount Mason DSO Hematite projects should access to infrastructure become available and the projects are economically viable.

OPTIONS AND RIGHTSAs at 28 February 2018, there were nil (28 February 2017: nil) options over unissued shares in the capital of Jupiter. No options were granted during the financial year.

Since 28 February 2018 to the date of this Annual Report, no options have been granted. Nil (28 February 2017: Nil) options lapsed or were vested during the financial year.

ON MARKET BUY-BACKJupiter is not currently conducting an on-market buy-back of any of its shares.

MEETINGS – ATTENDANCE BY DIRECTORSBoard Meetings

The number of Directors’ meetings and the number of meetings attended by each of the Directors of Jupiter during the financial year under review are:

DirectorNumber of meetings held during tenure of

the Director

Number of meetings attended

Brian Gilbertson 4 4

Paul Murray 4 4

Priyank Thapliyal 4 4

Andrew Bell 4 4

Sungwon Yoon 4 4

1 4


Directors’ Report

Committee Meetings

The number of committee meetings and the number of meetings attended by each of the Directors of Jupiter during the financial year under review are:

Director Audit Committee meetings attended

Audit Committee meetings held during tenure

Remuneration Committee

meetings attended

Remuneration Committee meetings

held during tenure

Paul Murray 2 2 3 3

Priyank Thapliyal 2 2 3 3

Andrew Bell 2 2 3 3

DIRECTORS’ INTERESTSParticulars of Directors’ interests in securities as at the date of this report are as follows:

Director Ordinary Shares Options over Ordinary Shares

Brian Gilbertson1 - -

Paul Murray 1,199,400 -

Priyank Thapliyal 22,432,728 -

Andrew Bell2 - -

Sungwon Yoon3 - -

1 Brian Gilbertson as the Chairman of Pallinghurst Resources Limited (listed on the JSE and BSX) has a relevant interest in Pallinghurst Steel Feed Dutch (B.V.) (PSF). PSF is the registered owner of 379,948,385 Ordinary Shares in the Company at balance date.

2 Andrew Bell as the Chairman and Director of Red Rock Resources plc has a relevant interest in Red Rock Resources plc (RRR). RRR is the registered owner of 24,657,516 Ordinary Shares in the Company at balance date.

3 Sungwon Yoon is the Managing Director of POSCO Australia Pty Ltd, has a relevant interest in POSCO Australia Pty Ltd (POSCO) and POSCO Australia GP PTY LTD (POSA GP). POSCO is the registered owner of 59,783,270 Ordinary Shares and POSA GP is the registered owner of 291,891,733 shares in the Company at balance date.

Unissued shares under option

Up until the date of this report, there are no further unissued shares under option.

Shares issued during or since the end of the year as a result of exercise

During or since the end of the financial year, the Company did not issue any ordinary shares as a result of the exercise of options.

Contracts with Directors

There are no agreements with any of the Directors other than remuneration agreements.

AUDITOR’S INDEPENDENCE DECLARATIONThe Lead Auditor’s Independence Declaration for the year ended 28 February 2018 has been received and can be found on page 32 of the Annual Report.

MEETINGS – ATTENDANCE BY DIRECTORS (CONTINUED)


A N N U A L R E P O R T 2 0 1 8

REMUNERATION REPORT (AUDITED)The Directors of Jupiter Mines Limited (the Group) present the Remuneration Report for Non-Executive Directors, Executive Directors and other Key Management Personnel, prepared in accordance with the Corporations Act 2001 and the Corporations Regulations 2001.

The Remuneration Report is set out under the following main headings:

(a) Principles used to determine the nature and amount of remuneration

(b) Details of remuneration

(c) Service agreements

(d) Share-based remuneration; and

(e) Other information

(a)Principlesusedtodeterminethenatureandamountofremuneration

The principles of the Group’s executive strategy and supporting incentive programs and frameworks are:

� to align rewards to business outcomes that deliver value to shareholders

� to drive a high performance culture by setting challenging objectives and rewarding high performing individuals; and

� to ensure remuneration is competitive in the relevant employment market place to support the attraction, motivation and retention of executive talent

Jupiter has structured a remuneration framework that is market competitive and complementary to the reward strategy of the Group.

The Board has established a Remuneration and Nomination Committee which operates in accordance with its charter as approved by the Board and is responsible for determining and reviewing compensation arrangements for the Directors and the Executive Team.

The Committee has engaged independent remuneration consultants to provide any necessary information to assist in the discharge of its responsibilities (refer to the disclosures below).

The remuneration structure that has been adopted by the Group consists of the following components:

� fixed remuneration being annual salary; and

� short term incentives, being employee bonuses.

The Remuneration and Nomination Committee assess the appropriateness of the nature and amount of remuneration on a periodic basis by reference to recent employment market conditions with the overall objective of ensuring maximum stakeholder benefit from the retention of a high quality Board and Executive Team.

The payment of bonuses and other incentive payments are reviewed by the Remuneration and Nomination Committee annually as part of the review of executive remuneration and a recommendation is put to the Board for approval. All bonuses and incentives must be linked to pre-determined performance criteria.

1 6


Directors’ Report

Short Term Incentive (STI) Jupiter performance measures involve the use of annual performance objectives.

The performance measures have been set after consultation with the Directors and executives and are specifically tailored to the areas where each executive has a level of control. The measures target areas the Board believes hold the greatest potential for expansion and profit.

Use of remuneration consultantsJupiter Mines Limited Remuneration and Nomination Committee employed the services of Aon Hewitt Limited to review and to provide recommendations in respect of the amount and elements of non-executive and executive remuneration, including short-term and long-term incentives.

Under the terms of the engagement, Aon Hewitt provided remuneration recommendations as defined in section 9B of the Corporations Act 2001 and was paid $6,000 for these services.

Aon Hewitt Limited have confirmed that the above recommendations have been made free from undue influence by members of the Group’s key management personnel.

Aon Hewitt Limited was engaged by, and reported directly to, the Chair of the Remuneration and Nomination Committee.

The report containing the remuneration recommendations was provided by Aon Hewitt Limited directly to the chair of the Remuneration and Nomination Committee.

Aon Hewitt Limited was permitted to speak to management throughout the engagement to understand Company processes, practices and other business issues and obtain management perspectives. However, Aon Hewitt Limited was not permitted to provide any advice or recommendations to members of management before advice or recommendations was given to members of the Remuneration and Nomination Committee and not unless Aon Hewitt had approval to do so from members of the Remuneration and Nomination Committee.

As a consequence, the Board is satisfied that the recommendations were made free from undue influence from any members of the key management personnel.

Voting and comments made at the Company’s last Annual General MeetingThe Company did not prepare a Remuneration Report for the previous financial year, therefore was not presented to Shareholders at the last Annual General Meeting.

Consequences of performance on shareholder wealth In considering the Group’s performance and benefits for shareholder wealth, the Board have regard to the following indices in respect of the current financial year and the previous four (4) financial years:

Item 2018 2017 2016 2015 2014

EPS (per share) 0.0434 0.0902 (0.0756) (0.0140) (0.0024)

Dividends (cents per share) - - - - -

Net profit/(loss) after tax ($’000) 92,205,663 200,099,335 (172,396,327) (31,869,576) (5,532,772)

Share of profit/(loss) from Tshipi investment ($’000) 94,040,638 41,474,035 (6,936,157) 18,406,525 8,810,941


A N N U A L R E P O R T 2 0 1 8

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--

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1 8


Directors’ Report

(c) Serviceagreements

Remuneration and other terms of employment for the Executive Directors and other key management personnel are formalised in a Service Agreement. The major provisions of the agreements relating to remuneration are set out below:

Priyank Thapliyal – Chief Executive Officer

Subject Provision

Base salary The Executive is entitled to receive an annual salary of £400,000 (with no pension fund or superannuation contributions).

IPO Bonus The Executive is entitled to receive a bonus (IPO Bonus) equal to 1% of the amount by which the indicative market capitalisation of Jupiter determined by the number of Shares on issue at the Prospectus Date (1,948,340,503 Shares) multiplied by the Offer Price, exceeds $353,315,000 (being the pro forma total equity of the Company shown in the Company’s pro forma consolidated statement of financial position in the Replacement Prospectus dated 4 April 2018).

The IPO Bonus shall be satisfied by the issue of Shares at the deemed issue price equal to the Offer Price, subject to and conditional upon Shareholder approval of the issue of bonus Shares in accordance with the requirements of the Listing Rules. It is anticipated that Shareholder approval for the issue of Shares to satisfy the IPO Bonus will be sought at the Company’s next annual general meeting (anticipated to be held in July 2018).

If approval of Shareholders is not obtained for the issue of Shares to satisfy the IPO Bonus, the IPO Bonus is payable in cash.

Annual Bonus The Executive will be entitled to receive a bonus (Annual Bonus) equal to 1% of the value of amounts paid by way of: (i) a dividend; (ii) a distribution, payment or return of capital; or (iii) the acceptance of equal access buy-back offers made to all Shareholders, paid or made by the Company to its Shareholders at any time after the listing date until the date of termination of the Executive’s employment. The Annual Bonus is payable in cash.

Confidentiality The Executive must keep the Company’s confidential information confidential, except in certain circumstances, including where the disclosure is required by law or the Company provides prior written consent.

Termination The Company may terminate the Executive’s employment by giving 6 months’ written notice and payment of an amount equal to 6 months’ salary and the amount of Annual Bonus paid in the 12 months prior to termination.

The Company may make payment in lieu of notice, comprising an amount of up to 12 months’ salary and the amount of Annual Bonus paid in the 12 months prior to termination.

The Company may otherwise terminate the employment immediately for misconduct or other matters that are usual grounds for summary dismissal.

The Executive may terminate the Executive’s employment by giving 6 months’ written notice.

In the event of a change of control (within the meaning of section 50AA of the Corporations Act) and diminution in the duties and responsibilities of the Executive as a chief executive officer of a public listed company, the Executive may elect to terminate the employment and become entitled to receive a payment equal to 12 months’ salary and the amount of Annual Bonus paid in the 12 months prior to termination.

Restrictive covenants

The Executive is subject to post-employment restraints on engaging in a business for the production, purchase, sale or marketing of manganese ore, and soliciting the employees, suppliers or clients of the Company or Tshipi é Ntle. The restraint has potential effect globally for up to 6 months following termination of employment.


A N N U A L R E P O R T 2 0 1 8

Melissa North – Chief Financial Officer and Company Secretary

Subject Provision

Base salary The Executive is entitled to receive an annual salary of $200,000 and superannuation at a rate of 12% of the annual salary.

Bonus arrangements If the Company is admitted to the official list of ASX, the Executive will become entitled to the payment of a one off cash bonus of an amount to be determined by the Board in its absolute discretion.

Following the end of each financial year commencing after 28 February 2018, and the Executive being employed at the date of release of the Company’s financial statements for the financial year to which the bonus relates, the Executive may be entitled to an annual bonus of an amount to be determined by the Board in its absolute discretion.

Other entitlements The Executive is entitled to a computer and mobile phone allowance, and reimbursement of all out of pocket expenses necessarily incurred by the Chief Financial Officer in the performance of her duties, including expenses relating to entertainment, meals and travelling.

Confidentiality The Executive must keep the Company’s confidential information confidential, except in certain circumstances, including where the disclosure is required by law or the Company provides prior written consent.

Termination The Executive or the Company may terminate the contract by giving 3 months’ written notice. The Company may make payment in lieu of notice.

The Company may otherwise terminate the employment immediately for misconduct or other matters that are usual grounds for summary dismissal.

Restrictive covenants The Executive is subject to post-employment restraints on soliciting the Company’s employees, suppliers or clients. The restraint has potential effect globally for up to 6 months following termination of employment.

(d)Share-basedremuneration

The Company has not granted any share-based remuneration and does not plan to adopt any such remuneration plans.

(e)Bonusesincludedinremuneration

Details of the short-term incentive cash bonuses awarded as remuneration to each key management personnel, the percentage of the available bonus that was paid in the financial year, and the percentage that was forfeited because the person did not meet the service and performance criteria is set out below.

Other Key Management Personnel

Grant date Nature of compensation

Service or performance

criteria

Financial year

related to

Included in remuneration

($)

Percentage vested during

the year

Percentage forfeited

during the year

Priyank Thapliyal 1 1 March 2018 Cash bonus Upon signing of Service Agreement

and successful shareholder

distribution in March 2018

2018 863,015 100% -

Melissa North 13 March 2017 Cash bonus Upon successful completion of

March 2017 share buy-back

2018 46,800 100% -

1 Bonus was accrued as at 28 February 2018 and paid on 6 April 2018.

2 0


Directors’ Report

(f) Otherinformation

No options are held by key management personnel for 2018 or 2017.

Shares held by directors and key management personnel The number of ordinary shares in the Company during the 2018 reporting period held by each of the Group’s key management personnel, including their related parties, is set out below:

Director/Employee Balance at start of year

Granted as remuneration

Received on exercise Other changes1 Held at the end of

reporting period

Year ended 28 February 2018

Brian Gilbertson2 421,042,093 - - (41,093,708) 379,948,385

Andrew Bell3 27,324,375 - - (2,666,859) 24,657,516

Sungwon Yoon4 389,710,775 - - (38,035,772) 351,675,003

Paul Murray 1,260,000 - - (60,600) 1,199,400

Priyank Thapliyal 24,858,963 - - (2,426,235) 22,432,728

1 Shares bought back by the Company in March and December 2017.

2 Brian Gilbertson as the Chairman of Pallinghurst Resources Limited (listed on the JSE and BSX) has a relevant interest in Pallinghurst Steel Feed Dutch (B.V.) (PSF). PSF is the registered owner of 379,948,385 Ordinary Shares in the Company at balance date.

3 Andrew Bell as the Chairman and Director of Red Rock Resources plc has a relevant interest in Red Rock Resources plc (RRR). RRR is the registered owner of 24,657,516 Ordinary Shares in the Company at balance date.

4 Sungwon Yoon is the Managing Director of POSCO Australia Pty Ltd, has a relevant interest in POSCO Australia Pty Ltd (POSCO) and POSCO Australia GP PTY LTD (POSA GP). POSCO is the registered owner of 59,783,270 Ordinary Shares and POSA GP is the registered owner of 291,891,733 shares in the Company at balance date.

Other transactions with key management personnelThere were no other material transactions with key management personnel for 2018 or 2017.

End of Audited Remuneration Report


A N N U A L R E P O R T 2 0 1 8

ENVIRONMENTAL REGULATIONS AND PERFORMANCEJupiter’s operations are subject to general environmental regulation under the laws of the States and Territories of Australia and South Africa. The various exploration interests held by Jupiter impose future environmental obligations for site remediation following sampling and drilling programs.

The Board is aware of these requirements and management is charged with ensuring compliance. The Directors are not aware of any breaches of these environmental regulations and licence obligations during the year.

INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORSSince the end of the previous financial year, Jupiter has paid premiums to insure the Directors and Officers of the Consolidated Entity. Details of the nature of the liabilities covered and the amount of premium paid in respect of Directors’ and Officers’ insurance policies preclude disclosure to third parties.

Jupiter has not paid any premiums in respect of any contract insuring its auditor against a liability incurred in that role as an auditor of Jupiter. In respect of non-audit services, Grant Thornton Audit Pty Ltd, Jupiter’s auditor has the benefit of an indemnity to the extent Grant Thornton Audit Pty Ltd reasonably relies on information provided by Jupiter which is false, misleading or incomplete. No amount has been paid under this indemnity during the financial year ending 28 February 2018 or to the date of this Report.

NON-AUDIT SERVICESThe Board of Directors is satisfied that the provision of non-audit services during the financial year is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The Directors are satisfied that the services disclosed below did not compromise the external auditor’s independence for the following reasons:

� all non-audit services are reviewed and approved by the Audit Committee prior to commencement to ensure they do not adversely affect the integrity and objectivity of the auditor; and

� the nature of the services provided does not compromise the general principles relating to auditor independence in accordance with APES 110: Code of Ethics for Professional Accountants set by the Accounting Professional and Ethical Standards Board.

The following fees were paid or payable to Grant Thornton Australia Limited for non-audit services provided during the year ended 28 February 2018:

Taxation services $32,100 (2017: $34,125)

Corporate finance $60,000 (2017: nil)

CORPORATE GOVERNANCEThe Directors aspire to maintain the standards of Corporate Governance appropriate to Jupiter. Jupiter’s Corporate Governance Statement is set out on pages 23 to 31 of this Report.

PROCEEDINGS ON BEHALF OF JUPITERNo person has applied for leave of Court to bring proceedings on behalf of Jupiter or intervene in any proceedings to which Jupiter is a party for the purpose of taking responsibility on behalf of Jupiter for all or any part of those proceedings. Jupiter was not a party to any such proceedings during the year.

The Consolidated Entity was not a party to any such proceedings during the reporting year.

This report is signed in accordance with a resolution of the Board of Directors.

Brian GilbertsonCape Town

29 May 2018

2 2


Directors’ Report

CORPORATE GOVERNANCE STATEMENTOVERVIEWThe Company’s Board of Directors (Board) is responsible for the overall corporate governance of the Company, and it recognises the need for the highest standards of ethical behaviour and accountability. It is committed to administering its corporate governance structures to promote integrity and responsible decision-making. Accordingly, where appropriate the Company has sought to adopt the ‘Corporate Governance Principles and Recommendations’ (Third Edition) (ASX Recommendations) published by the ASX Corporate Governance Council.

The corporate governance principles and practices adopted by the Company may depart from those generally applicable to ASX-listed companies under ASX Recommendations where the Board considers compliance is not appropriate having regard to the nature and size of the Company’s business and operations.

The Company sets out below its “if not why not” report in relation to those matters of corporate governance where the Company’s practice departs from the ASX Recommendations, to the extent that they are currently applicable to the Company.

This statement is current as at 29 May 2018 and has been approved by the Board.

ASX Corporate Governance Principles and Recommendations

Principle ASX Recommendation Comply Comments

Principle 1 – Lay solid foundation for management and oversight

1.1 A listed entity should disclose:

(a) the respective roles and responsibilities of its board and management; and

(b) those matters expressly reserved to the board and those delegated to management.

Yes Jupiter has adopted a Board Charter that discloses the role and responsibilities of the Board.

Under the Board Charter, the Board is responsible for the overall operation and stewardship of the Company and, in particular, is responsible for:

� oversight of control and accountability systems;

� appointing and removing the Chief Executive Officer, Chief Financial Officer and Company Secretary;

� approving the annual operating budget;

� approving and monitoring the progress of major capital and operating expenditure;

� monitoring compliance with all legal and regulatory obligations;

� reviewing any risk management system (which may be a series of systems established on a per-project basis);

� monitoring any executive officer’s performance; and

� approving and monitoring financial and other reporting to the market, shareholders of the Company (Shareholders), employees and other stakeholders.

A copy of the Board Charter can be found on the Company’s website at www.jupitermines.com/about-us/corporate-governance

2 3Corporate Governance Statement

A N N U A L R E P O R T 2 0 1 8


1.2 A listed entity should:

(a) undertake appropriate checks before appointing a person, or putting forward to security holders a candidate for election, as a director; and

(b) provide security holders with all material information in its possession relevant to a decision on whether or not to elect or re-elect a director.

Yes Jupiter conducts background checks of candidates for the position of director of the Company (Director) prior to their appointment or nomination for election by Shareholders, including checks as to good character, experience, education, qualifications, criminal history and bankruptcy.

The Company does not propose to conduct specific checks prior to nominating an existing Director for re-election by Shareholders at a general meeting on the basis that the Company will have already conducted relevant character checks prior to the Director’s initial appointment.

As a matter of practice, Jupiter includes in its notices of meeting a brief biography and other material information in relation to each Director who stands for election or re-election, including relevant qualifications and professional experience of the nominated Director for consideration by Shareholders.

1.3 A listed entity should have a written agreement with each director and senior executive setting out the terms of their appointment.

Yes The Company has entered into an employment contract with Priyank Thapliyal, the Company’s Chief Executive Officer, who is engaged on a full time basis. The Company has also entered into an employment contract with Melissa North, the Company’s Chief Financial Officer and Company Secretary, who is engaged on a full time basis. The Company has entered into letters of engagement with each of its non-executive Directors setting out the key terms and conditions of their engagement.

1.4 The company secretary of a listed entity should be accountable directly to the board, through the chair, on all matters to do with the proper functioning of the board.

Yes The Company Secretary reports directly, and is accountable, to the Board through the Chairman of the Board (Chairman) in relation to all governance matters.

The Company Secretary also advises and supports the Board to implement adopted governance procedures and co-ordinates the circulation of meeting agendas and papers.


(a) have a diversity policy which includes requirements for the board or a relevant committee of the board to set measurable objectives for achieving gender diversity and to assess annually both the objectives and the entity’s progress in achieving them;

(b) disclose that policy or a summary of it; and

(c) disclose as at the end of each reporting period the measurable objectives for achieving gender diversity set by the board or a relevant committee of the board in accordance with the entity’s diversity policy and its progress towards achieving them, and either:

(i) the respective proportions of men and women on the board, in senior executive positions and across the whole organisation (including how the entity has defined “senior executive” for these purposes); or

(ii) if the entity is a “relevant employer” under the Workplace Gender Equality Act, the entity’s most recent “Gender Equality Indicators”, as defined in and published under that Act.

No Given the Company’s main asset is its interest in the Tshipi Borwa Manganese Mine (Tshipi Project), which it holds through its indirect 49.9% interest in Tshipi é Ntle, and Jupiter itself has few employees, Jupiter has not adopted a formal diversity policy at this stage.

The Company has a policy to select the best available officers and staff for each relevant position in a non-discriminatory manner based on merit.

Notwithstanding this, the Board respects and values the benefits that diversity (e.g. gender, age, ethnicity, cultural background, disability and martial/family status etc) brings in relation to expanding the Company’s perspective and thereby improving corporate performance, increasing Shareholder value and maximising the probability of achieving the Company’s objectives.

The Board is committed to developing a diverse workplace where appointments or advancements are made on a fair and equitable basis.

2 4


Corporate Governance Statement



(a) have and disclose a process for periodically evaluating the performance of the board, its committees and individual directors; and

(b) disclose, in relation to each reporting period, whether a performance evaluation was undertaken in the reporting period in accordance with that process.

Yes The Remuneration and Nomination Committee is responsible for the evaluation of the Board’s performance and its individual Directors.

Jupiter has also adopted in its Board Charter a commitment to review its own performance at intervals considered appropriate by the Chairman. The same performance review mechanism is also present in the Audit Committee and Remuneration and Nomination Committee Charters.

Jupiter will continue to disclose if and when it has conducted any performance evaluations.


(a) have and disclose a process for periodically evaluating the performance of its senior executives; and

(b) disclose, in relation to each reporting period, whether a performance evaluation was undertaken in the reporting period in accordance with that process.

Yes The Board is responsible for monitoring the performance of senior executive officers.

The Board has established policies to ensure that Jupiter remunerates fairly and responsibly. The Company designed its remuneration policy to ensure that the level and composition of remuneration is competitive, reasonable and appropriate to attract and maintain Directors with the requisite skills and experience to guide the Company towards achieving its objectives.

Jupiter will continue to disclose if and when it has conducted any performance evaluations.

Principle 2 – Structure the board to add value

2.1 The board of a listed entity should:

(a) have a nomination committee which:

(i) has at least three members, a majority of whom are independent directors; and

(ii) is chaired by an independent director,

and disclose:

(iii) the charter of the committee;

(iv) the members of the committee; and

(v) as at the end of each reporting period, the number of times the committee met throughout the period and the individual attendances of the members at those meetings; or

(b) if it does not have a nomination committee, disclose that fact and the processes it employs to address board succession issues and to ensure that the board has the appropriate balance of skills, knowledge, experience, independence and diversity to enable it to discharge its duties and responsibilities effectively.

Yes The Board has established a Remuneration and Nomination Committee (RN Committee).

The RN Committee Charter discloses the RN Committee’s role and responsibilities.

The RN Committee presently consists of Paul Murray, Andrew Bell and Brian Gilbertson. Mr Murray and Mr Bell are the Company’s only Directors who are both independent and non-executive. Mr Murray is the chairman of the RN Committee.

Jupiter will continue to disclose at the end of each reporting period the number of times the RN Committee met throughout the relevant period.

The RN Committee Charter is available on Jupiter’s website at www.jupitermines.com/about-us/corporate-governance

2.2 A listed entity should have and disclose a board skills matrix setting out the mix of skills and diversity that the board currently has or is looking to achieve in its membership.

No Jupiter does not currently have a skills or diversity matrix in relation to its Board members. The Board considers that such a matrix is not necessary given the current state of operations.

The RN Committee is presently responsible for ensuring the Directors have the appropriate mix of competencies to enable the Board to discharge its responsibilities effectively.

The Board may adopt such a matrix later as the Company’s operations evolve.


A N N U A L R E P O R T 2 0 1 8



(a) the names of the directors considered by the board to be independent directors;

(b) if a director has an interest, position, association or relationship of the type described in Box 2.3 but the board is of the opinion that it does not compromise the independence of the director, the nature of the interest, position, association or relationship in question and an explanation of why the board is of that opinion; and

(c) the length of service of each director.

Yes The Board considers that Mr Paul Murray and Mr Andrew Bell are independent Directors because they are free from any business or other relationship with the Company that could materially interfere with, or reasonably be perceived to materially interfere with, the independent exercise of their judgement as Directors.

The Company appointed Mr Murray as a Director on 20 August 2003 and Mr Bell as a Director on 19 May 2008.

2.4 A majority of the board of a listed entity should be independent directors.

No A majority of the Board are not independent Directors. Two of the Board’s five Directors, being Mr Paul Murray and Mr Andrew Bell are considered independent.

The Company does not consider Mr Brian Gilbertson independent because he is the non-executive chairman of, and a shareholder in, Pallinghurst Resources Limited, the ultimate parent company of Pallinghurst Steel Feed (Dutch) B.V., being a substantial Shareholder of the Company.

The Company does not consider Mr Sungwon Yoon independent because he is the managing director of POSCO Australia Pty Ltd, a significant shareholder of Jupiter.

The Company does not consider Mr Priyank Thapliyal independent because Jupiter employs him in an executive capacity, as the Company’s Chief Executive Officer.

The Company believes that the current structure of the Board is the most appropriate given the size and current operations of the Company.

2.5 The chair of the board of a listed entity should be an independent director and, in particular, should not be the same person as the CEO of the entity.

No The Chairman, Mr Brian Gilbertson, is not an independent Director. The Board believes an independent non-executive Chairman is not necessary as Mr Gilbertson’s experience and industry knowledge makes him the most appropriate person to lead the Board at this time.

Mr Priyank Thapliyal is the Chief Executive Officer and is not the Chairman.

2.6 A listed entity should have a program for inducting new directors and provide appropriate professional development opportunities for directors to develop and maintain the skills and knowledge needed to perform their role as directors effectively.

Yes Induction programWhen a Director is appointed, they receive with their appointment letter a copy of the Company’s constitution, corporate governance policies and charters. The contents of this due diligence pack contain sufficient information to allow the new Director to gain an understanding of the rights, duties, responsibilities and role of the Board, Board committees and the executive team.

The Company Secretary arranges for new Directors to undertake an induction program to enable them to gain an understanding of:

� the Company’s operations and the industry sectors in which it operates;

� the Company’s financial, strategic, operational and risk management position;

� their rights, duties and responsibilities; and

� any other relevant information.

As part of this induction program, a new Director will meet with all incumbent Directors (if this has not already taken place).

Director developmentIn order to achieve continuing improvement in Board performance, all Directors are encouraged to undergo continual professional development.

2 6




Principle 3 – Act ethically and responsibly

3.1 A listed entity should have a code of conduct for its directors, senior executives and employees and disclose that code or a summary of it.

Yes The Board believes that the success of Jupiter has been, and will continue to be, enhanced by a strong ethical culture within the organisation.

Jupiter has a Code of Conduct and Ethics (Code) which sets the standards that all Directors, officers, employees, consultants and contractors and all other people representing the Company are expected to comply with in relation to all commercial operations.

The Code also outlines the procedure for reporting any breaches of the Code and the possible disciplinary action the Company may take in respect of any breaches.

In addition to their obligations under the Corporations Act 2001 (Cth) (Corporations Act) in relation to inside information, all Directors, employees and consultants have a duty of confidentiality to Jupiter in relation to confidential information they possess.

In fulfilling their duties, each Director dealing with corporate governance matters may obtain independent professional advice at Jupiter’s expense after consultation with the Chairman.

The Company ensures that all incumbent and new personnel have a copy of the Code. It is also available on Jupiter’s website at www.jupitermines.com/about-us/corporate-governance

Principle 4 – Safeguard integrity in corporate reporting

4.1 The board of a listed entity should:

(a) have an audit committee which:

(i) has at least three members, all of whom are non-executive directors and a majority of whom are independent directors; and

(ii) is chaired by an independent director, who is not the chair of the board,

and disclose:


(iv) the relevant qualifications and experience of the members of the committee; and

(v) in relation to each reporting period, the number of times the committee met throughout the period and the individual attendances of the members at those meetings; or

(b) if it does not have an audit committee, disclose that fact and the processes it employs that independently verify and safeguard the integrity of its corporate reporting, including the processes for the appointment and removal of the external auditor and the rotation of the audit engagement partner.

Yes The Company has established an Audit Committee to assist the Board in its oversight responsibilities in relation to financial management and reporting, external audit and financial risk management of the Company and safeguarding the independence of the external auditor.

The Audit Committee Charter sets out the functions, operating mechanisms and responsibilities of the Audit Committee.

The Audit Committee presently consists of Paul Murray, Andrew Bell and Sungwon Yoon. Mr Murray and Mr Bell are the Company’s only Directors who are both independent and non-executive. Mr Murray acts as the chairman of the Audit Committee.

The Audit Committee Charter also requires that all committee members have a working familiarity with basic accounting and finance practices and that at least one member have financial expertise.

A copy of the Audit Committee Charter is available on Jupiter’s website at www.jupitermines.com/about-us/corporate-governance


A N N U A L R E P O R T 2 0 1 8


4.2 The board of a listed entity should, before it approves the entity’s financial statements for a financial period, receive from its CEO and CFO a declaration that, in their opinion, the financial records of the entity have been properly maintained and that the financial statements comply with the appropriate accounting standards and give a true and fair view of the financial position and performance of the entity and that the opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

Yes As a matter of practice, Jupiter obtains declarations from its Chief Executive Officer and Chief Financial Officer substantially in the form referred to in Recommendation 4.2 before approving its financial statements.

4.3 A listed entity that has an AGM should ensure that its external auditor attends its AGM and is available to answer questions from security holders relevant to the audit.

Yes In accordance with the Company’s constitution and the applicable provisions of the Corporations Act, the Company requests its external auditor to attend each annual general meeting and be available to answer shareholder questions about the conduct of the audit and the preparation and content of the auditor’s report.

Principle 5 – Make timely and balanced disclosure

5.1 A listed entity should have a written policy for complying with its continuous disclosure obligations under the Listing Rules and disclose that policy or a summary of it.

Yes Jupiter has adopted a Continuous Disclosure Policy.

Jupiter is a “disclosing entity” pursuant to section 111AR of the Corporations Act and, as such, is required to comply with the continuous disclosure requirements of Chapter 3 of the Listing Rules and section 674 of the Corporations Act.

The Company is committed to observing its disclosure obligations under the Corporations Act and its obligations under the Listing Rules.

The Company will post all announcements provided to ASX on its website.

A copy of the Continuous Disclosure Policy is available on Jupiter’s website at www.jupitermines.com/about-us/corporate-governance

Principle 6 – Respect the rights of security holders

6.1 A listed entity should provide information about itself and its governance to investors via its website.

Yes Information about Jupiter and its corporate governance, including copies of the Company’s various corporate governance policies and charters, are available on its website at www.jupitermines.com/about-us

6.2 A listed entity should design and implement an investor relations program to facilitate effective two-way communication with investors.

Yes Jupiter has adopted a Shareholder Communications Policy to promote effective communication with Shareholders, ensure all relevant information is disseminated to Shareholders effectively and to encourage the participation of Shareholders at Company general meetings.

The Company communicates with Shareholders:

� through releases to the market via the ASX;

� through Jupiter’s website;

� through information provided directly to Shareholders; and

� at general meetings.

2 8




6.3 A listed entity should disclose the policies and processes it has in place to facilitate and encourage participation at meetings of security holders.

Yes Jupiter supports Shareholder participation in general meetings and seeks to provide appropriate mechanisms for such participation, including by ensuring that meetings are held at convenient times and places to encourage Shareholder participation.

In preparing for general meetings, Jupiter drafts the notice of meeting and related explanatory information so that they provide all of the information that is relevant to Shareholders in making decisions on matters to be voted on by them at the meeting. This information is presented clearly and concisely so that it is easy to understand and not ambiguous.

Jupiter uses general meetings as a tool to effectively communicate with Shareholders and allow Shareholders a reasonable opportunity to ask questions of the Board of Directors and to participate in the meeting.

Mechanisms for encouraging and facilitating Shareholder participation are reviewed regularly to encourage the highest level of Shareholder participation.

6.4 A listed entity should give security holders the option to receive communications from, and send communications to, the entity and its security registry electronically.

Yes Jupiter considers that communicating with Shareholders by electronic means is an efficient way to distribute information in a timely and convenient manner.

Jupiter provides new Shareholders with the option to receive communications from Jupiter electronically and encourages them to do so. Existing Shareholders are also encouraged to request communications electronically.

Jupiter will provide all Shareholders that have opted to receive communications electronically with notifications when it uploads an announcement or other communication (including an annual reports and notice of meeting) to the ASX announcements platform.

Principle 7 – Recognise and manage risk

7.1 The board should:

(a) have a committee or committees to oversee risk, each of which:

(i) has at least three members, a majority of whom are independent directors; and

(ii) is chaired by an independent director,

and disclose:


(iv) the members of the committee; and

(v) as at the end of each reporting period, the number of times the committee met throughout the period and the individual attendances of the members at those meetings; or

(b) if it does not have a risk committee or committees that satisfy (a) above, disclose that fact and the processes it employs for overseeing the entity’s risk management framework.

No Jupiter does not have a separate risk management committee.

The Board as a whole is broadly responsible for risk management, including the review of any risk management system or series of systems that may be implemented by management on a per-project basis. The Audit Committee is responsible for the management of financial risk.

The Board considers that, given the Company’s current scope of operations and the fact that only Mr Thapliyal holds an executive position, efficiencies or other benefits would not be gained by establishing a separate risk management committee at present.

As the Company’s operations evolve, the Board will reconsider the appropriateness of forming a separate risk management committee.


A N N U A L R E P O R T 2 0 1 8


7.2 The board or a committee of the board should review the entity’s risk management framework at least annually to satisfy itself that it continues to be sound; and disclose, in relation to each reporting period, whether such a review has taken place.

Yes The Board has responsibility for the monitoring of risk management and reviews the Company’s risk management framework on an annual basis to ensure that the framework continues to be effective.

The Company will continue to disclose the outcome of the annual risk management review in its annual reports.


(a) if it has an internal audit function, how the function is structured and what role it performs; or

(b) if it does not have an internal audit function, that fact and the processes it employs for evaluating and continually improving the effectiveness of its risk management and internal control processes.

Yes Jupiter does not currently have an internal audit function. This function is undertaken by relevant staff under the direction of the Board.

The Company has adopted internal control procedures, including the following:

� the Company has authorisation limits in place for expenditure and payments;

� a Director or senior manager must not approve a payment to themselves or a related party, other than standard salary/directors fees in accordance with their Board approved remuneration;

� the Company prepares cash flow forecasts which include materiality thresholds and which are regularly reviewed; and

� the Company regularly reviews its other financial materiality thresholds.

The Board and senior management are charged with evaluating and considering improvements to the Company’s risk management and internal control processes on an ongoing basis.

The Board considers that an internal audit function is not currently necessary given the current size and scope of the Company’s operations.

As the Company’s operations evolve, the Board will reconsider the appropriateness of adopting an internal audit function.

7.4 A listed entity should disclose whether it has any material exposure to economic, environmental and social sustainability risks and, if it does, how it manages or intends to manage those risks.

Yes Jupiter’s primary business is the production and export of manganese via its 49.9% beneficial interest in the Tshipi Project in South Africa. As such, the Company is exposed to the unique risks to which Tshipi é Ntle is exposed. This includes, but is not limited to, the following key risks:

� fluctuations in the price of manganese ore;

� fluctuations in third party contractor costs;

� any reduction in the global demand for steel;

� risks arising from mining operations being concentrated at one mine;

� economic, political or social instability in South Africa may effect operations or profits; and

� a range of other economic, environmental and social sustainability risks faced by all other mining industry companies in an open economy.

3 0




Principle 8 – Remunerate fairly and responsibly

8.1 The board of a listed entity should have a remuneration committee which:

(a) has at least three members, a majority of whom are independent directors;

(b) is chaired by an independent director, and disclose:

(c) the charter of the committee;

(d) the members of the committee; and

(e) as at the end of each reporting period, the number of times the committee met throughout the period and the individual attendances of the members at those meetings.

Yes The Company has established a RN Committee to assist the Board in fulfilling its responsibilities with respect to:

� remuneration policies for non–executive Directors;

� remuneration policies for executive Directors;

� remuneration policies for executive management;

� equity participation;

� human resources policies; and

� any other matters referred to the RN Committee by the Board.

The RN Committee Charter sets out the functions, operating mechanisms and responsibilities of the committee.

The RN Committee presently consists of Paul Murray, Andrew Bell and Brian Gilbertson. Mr Murray and Mr Bell are the Company’s only Directors who are both independent and non-executive. Mr Murray acts as the chairman of the RN Committee.

Jupiter will disclose, at the end of each reporting period, the number of times the committee met throughout the relevant period.

A copy of the RN Committee Charter is available on Jupiter’s website at www.jupitermines.com/about-us/corporate-governance

8.2 A listed entity should separately disclose its policies and practices regarding the remuneration of non-executive directors and the remuneration of executive directors and other senior executives.

Yes Jupiter’s policies and practices regarding the remuneration of executive and non-executive Directors and other senior executives will be set out in the remuneration report contained in Jupiter’s annual report for each financial year.

Furthermore, Jupiter’s remuneration policies and practices are subject to review by the RN Committee, as set out in the Company’s RN Committee Charter.

8.3 A listed entity which has an equity-based remuneration scheme should have a policy on whether participants are permitted to enter into transactions (whether through the use of derivatives or otherwise) which limit the economic risk of participating in the scheme; and disclose that policy or a summary of it.

Yes Jupiter’s Share Trading Policy states the requirements for all Directors, executives, employees, contractors and consultants of the Company dealing in the Company’s Securities.

The policy provides that Directors and senior executives must not at any time enter into a transaction (e.g. writing a call option) that operates or is intended to operate to limit the economic risk of holdings of unvested Jupiter securities under any equity-based remuneration schemes offered by the Company.

A copy of the Share Trading Policy is available on Jupiter’s website at www.jupitermines.com/about-us/corporate-governance


A N N U A L R E P O R T 2 0 1 8

AUDITOR’S INDEPENDENCE DECLARATION

Central Park, Level 43 152-158 St Georges Terrace Perth WA 6000 Correspondence to: PO Box 7757 Cloisters Square Perth WA 6850 T +61 8 9480 2000 F +61 8 9480 2050 E [email protected] W www.grantthornton.com.au

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited. Liability limited by a scheme approved under Professional Standards Legislation.

Auditor’s Independence Declaration to the Directors of Jupiter Mines Limited

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Jupiter Mines Limited for the year ended 28 February 2018, I declare that, to the best of my knowledge and belief, there have been: a no contraventions of the auditor independence requirements of the Corporations Act 2001 in

relation to the audit; and

b no contraventions of any applicable code of professional conduct in relation to the audit.

GRANT THORNTON AUDIT PTY LTD Chartered Accountants

M J Hillgrove Partner - Audit & Assurance Perth, 30 May 2018

3 2


Auditor’s Independence Declaration

STATEMENT OF CONSOLIDATED PROFIT OR LOSS AND OTHER

COMPREHENSIVE INCOMEFOR THE YEAR ENDED 28 FEBRUARY 2018

Consolidated Group

Note February 2018 $

February 2017 $

Revenue 2 (413,595) 155,555,500

Cost of sales 2 328,655 (146,298,513)

Gross profit (84,940) 9,256,987

Other income 2 10,287,421 1,438,072

Employee benefits expense (1,498,751) (529,667)

Depreciation of property, plant and equipment 11 (287) -

Amortisation of intangible assets 12 (12,244) (13,774)

Administrative expenses (51,795) (52,608)

Other expenses (2,264,161) (1,278,080)

Profit from operations 6,375,243 8,820,930

Share of profit from joint venture entities using the equity method 15 94,040,638 41,474,035

Impairment of exploration and evaluation asset 14 (4,119,418) -

Reversal of impairment of investment in joint venture entities 15 - 143,641,903

Gain on sale of assets held for sale 8 345,447 -

Finance income 282,538 1,250,140

Finance costs (139,845) (473,691)

Foreign exchange gain 1,005,202 11,005,386

Profit before income tax 97,789,805 205,718,703

Income tax expense 3 (5,584,142) (5,619,368)

Net profit attributable to members of parent entity 92,205,663 200,099,335

Other comprehensive income

Items that may subsequently be reclassified to profit or loss:

Available for sale financial assets - current year gains 20 656,408 180,488

Exchange differences on translating foreign operations 20 268,608 -

Other comprehensive income for the period, net of tax 925,016 180,488

Total comprehensive income for the period 93,130,679 200,279,823

Profit for the year attributable to:

Owners of the parent 92,205,663 200,099,335

Total comprehensive attributable to:

Owners of the parent 925,016 180,488

Overall Operations

Basic profit per share 5 0.0434 0.0902

Diluted profit per share 5 0.0434 0.0902

The Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

3 3

A N N U A L R E P O R T 2 0 1 8

Statement of Consolidated Profit or Loss and Other Comprehensive Income

STATEMENT OF CONSOLIDATED

FINANCIAL POSITIONAS AT 28 FEBRUARY 2018

Consolidated Group


February 2017 $

ASSETS

Current Assets

Cash and cash equivalents 6 76,544,487 84,709,260

Trade and other receivables 7 45,863,083 9,956,038

Assets held for sale 8 - 2,726,219

Other current assets 13 70,381 26,708,028

Total Current Assets 122,477,951 124,099,545

Non-Current Assets

Available for sale financial assets 9 1,043,702 387,294

Property, plant and equipment 11 6,366 327,015

Intangible assets 12 1,985 7,329

Investments accounted for using the equity method 15 385,267,255 345,556,557

Exploration and evaluation assets 14 8,700,000 11,632,006

Deferred tax asset 3 302,484 488,030

Total Non-Current Assets 395,321,792 358,398,231

TOTAL ASSETS 517,799,743 482,497,776

LIABILITIES

Current Liabilities

Trade and other payables 16 49,007,737 3,517,007

Employee benefits 17 52,447 18,972

Total Current Liabilities 49,060,184 3,535,979

Non-Current Liabilities

Deferred tax liability 3 2,581,865 3,537,977

Total Non-Current Liabilities 2,581,565 3,537,977

TOTAL LIABILITIES 51,642,049 7,073,956

NET ASSETS 466,157,694 475,423,820

EQUITY

Issued capital 19 433,003,602 526,639,293

Reserves 20 1,105,503 180,488

Accumulated profits/(losses) 32,048,589 (51,395,961)

TOTAL EQUITY 466,157,694 475,423,820

The above Statement of Financial Position should be read in conjunction with the accompanying notes.

3 4


Statement of Consolidated Financial Position


CHANGES IN EQUITYFOR THE YEAR ENDED 28 FEBRUARY 2018

NoteOrdinary

Issued Capital$

Foreign Currency

Translation Reserve

$

Financial Assets

Reserve$

Accumulated (Losses)/

Profits$

Total$

Balance at 1 March 2016 526,639,293 - - (251,495,298) 275,143,995

Profit attributable to members of parent entity - - - 200,099,335 200,099,335

Total other comprehensive income for the year - - 180,488 - 180,488

Total comprehensive income/(loss) for the year - - 180,488 (51,395,961) 475,423,820

Dividends paid or provided for - - - - -

Balance as at 28 February 2017 526,639,293 - 180,488 (51,395,961) 475,423,820

Profit attributable to members of parent entity - - - 92,205,663 92,205,663

Total other comprehensive income for the year - 268,608 656,408 - 925,016

Total comprehensive income for the year - 268,608 656,408 92,205,663 93,130,679

Shares bought back 19 (93,635,691) - - (8,761,112) (102,396,803)

Balance as at 28 February 2018 433,003,602 268,608 836,896 32,048,589 466,157,694

The Statement of Changes in Equity should be read in conjunction with the accompanying notes.

3 5

A N N U A L R E P O R T 2 0 1 8

Statement of Consolidated Changes in Equity


CASH FLOWSFOR THE YEAR ENDED 28 FEBRUARY 2018

Consolidated Group


February 2017 $

CASH FLOWS FROM OPERATING ACTIVITIES

Payments to suppliers and employees (1,500,317) (1,280,756)

Other income 11,901,390 294,287

Net cash from/(used in) operating activities 24 10,401,073 (266,776)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of intangible assets 12 (6,900) (11,606)

Purchase of property, plant and equipment 11 (1,500) -

Sale of motor vehicles - 39,545

Payments for exploration and evaluation of mining reserves (874,927) (873,670)

Sale of assets held for sale 8 3,071,641 -

Dividend received from investments 15 27,744,378 -

Interest received 306,254 719,693

Net cash from/(used in) investing activities 30,238,946 (845,731)

CASH FLOWS FROM FINANCING ACTIVITIES

Share buy-backs 19 (102,396,803) -

Proceeds from loan repayments 52,452,358 48,452,249

Net cash from/(used) in financing activities (49,944,445) 48,452,249

Net increase/(decrease) in cash and cash equivalents held (9,304,452) 47,339,742

Cash and cash equivalents at beginning of financial period 84,709,260 37,369,518

Effect of exchange rates on cash holdings in foreign currencies 1,139,679 -

Cash and cash equivalents at the end of the financial period 76,544,487 84,709,260

The Statement of Cash Flows should be read in conjunction with the accompanying notes.

3 6


Statement of Consolidated Cash Flows

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 28 FEBRUARY 2018

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThese consolidated financial statements and notes represent those of Jupiter Mines Limited (“Jupiter”) and its Controlled Entities (the “Consolidated Group” or “Group”).

The separate financial statements of the parent entity, Jupiter Mines Limited, have not been presented within this financial report as permitted by the Corporations Act 2001.

The financial statements were authorised and issued by the Board of Directors on 29 May 2018.

Basis of Preparation

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and the Corporations Act 2001.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of this financial report are presented below and have been consistently applied unless otherwise stated.

The financial report has been prepared on an accruals basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. All amounts in the financial report have been rounded to the nearest dollar. Tables may not cast in all instances due to rounding.

Jupiter Mines Limited is a for-profit entity for the purpose of preparing the financial statements.

(a)PrinciplesofConsolidation

The Group financial statements consolidate those of the Parent Company and all of its subsidiaries as of 28 February 2018. The parent controls a subsidiary if it is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. All subsidiaries have a reporting date of 28 February. A list of controlled entities is contained in Note 10 to the financial statements.

In preparing the consolidated financial statements, all inter-Group balances and transactions between entities in the Consolidated Group have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with those adopted by the parent entity.

Business Combinations

The Group applies the acquisition method in accounting for business combinations. The consideration transferred by the Group to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred and the equity interests issued by the Group, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred.

The Group recognises identifiable assets acquired and liabilities assumed in a business combination regardless of whether they have been previously recognised in the acquiree’s financial statements prior to the acquisition. Assets acquired and liabilities assumed are generally measured at their acquisition-date fair values.

Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum of: (a) fair value of consideration transferred, (b) the recognised amount of any non-controlling interest in the acquire, and (c) acquisition-date fair value of any existing equity interest in the acquiree, over the acquisition-date fair values of identifiable net assets. If the fair values of identifiable net assets exceed the sum calculated above, the excess amount (i.e. gain on a bargain purchase) is recognised in profit or loss immediately.

(b)InterestsinJointVentures

The Group acquired an interest in Tshipi é Ntle Manganese Mining Proprietary Limited (“Tshipi”), a joint venture entity, in October 2010. The Group’s accounting policy for joint ventures was considered by the Directors as part of the deliberation on the Tshipi acquisition, and had not been formally considered or articulated previously.

Associates are those entities over which the Group is able to exert significant influence but which are not subsidiaries.

A joint venture is an arrangement that the Group controls jointly with one or more other investors, and over which the Group has rights to a share of the arrangement’s net assets rather than direct rights to underlying assets and obligations for underlying liabilities.

Investments in associates and joint ventures are accounted for using the equity method.

Any goodwill or fair value adjustment attributable to the Group’s share in the associate or joint venture is not recognised separately and is included in the amount recognised as investment.

The carrying amount of the investment in associates and joint ventures is increased or decreased to recognise the Group’s share of the profit or loss and other comprehensive income of the associate and joint venture, adjusted where necessary to ensure consistency with the accounting policies of the Group.

Unrealised gains and losses on transactions between the Group and its associates and joint ventures are eliminated to the extent of the Group’s interest in those entities. Where unrealised losses are eliminated, the underlying asset is also tested for impairment.

3 7Notes to the Consolidated Financial Statements

A N N U A L R E P O R T 2 0 1 8

(c) IncomeTax

The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax expense (income).

Current income tax expense charged to profit or loss is the tax payable on taxable income. Current tax liabilities (assets) are measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.

Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well unused tax losses.

Current and deferred income tax expense (income) is charged or credited outside profit or loss when the tax relates to items that are recognised outside profit or loss.

Except for business combinations, no deferred income tax is recognised from the initial recognition of an asset or liability, where there is no effect on accounting or taxable profit or loss.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled and their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.

Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.

Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where: (a) a legally enforceable right of set-off exists; and (b) the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future years in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

(d)Property,PlantandEquipment

Each class of property, plant and equipment is carried at cost as indicated less, where applicable, any accumulated depreciation and impairment losses.

Plant and equipment

Plant and equipment are measured on the cost basis.

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

The cost of fixed assets constructed within the Consolidated Group includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of Profit or Loss and Other Comprehensive Income during the financial year in which they are incurred.

Depreciation

The depreciable amount of all fixed assets is depreciated on a straight-line basis over their useful lives to the Consolidated Group commencing from the time the asset is held ready for use.

The depreciation rates used for each class of depreciable assets are:

Class of Fixed Asset Depreciation Rate

Office equipment 33.33%

Furniture & fittings 33.33%

Motor vehicles 12.50%

Leasehold improvements 20.00%

Buildings 10.00%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the Statement of Profit or Loss and Other Comprehensive Income.

(e)ExplorationandEvaluationExpenditure

The application of the Group’s accounting policy for exploration and evaluation expenditure requires judgment in determining whether it is likely that future economic benefits are likely either from future exploitation or sale or where activities have not reached a stage which permits a reasonable assessment of the existence of reserves. The determination of a Joint Ore Reserves Committee (JORC) resource is itself an estimation process that requires varying degrees of uncertainty depending on sub-classification and these estimates directly impact the point of deferral of exploration and evaluation expenditure. The deferral policy requires management to make certain estimates and assumptions about future events or circumstances, in particular whether an economically viable extraction operation can be established. Estimates and assumptions made may change if new information becomes available. If, after expenditure is capitalised, information becomes available suggesting that the recovery of expenditure is unlikely, the amount capitalised is written off in the Statement of Profit or Loss and Other Comprehensive Income in the year when the new information becomes available.

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

3 8


Notes to the Consolidated Financial Statements

(f) Leases

Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership that is transferred to entities in the Consolidated Group, are classified as finance leases.

Finance leases are capitalised by recognising an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the year.

Leased assets are depreciated on a straight-line basis over the shorter of their estimated useful lives or the lease term.

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are recognised as expenses in the years in which they are incurred.

Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the lease term.

(g)FinancialAssets

Recognition and initial measurement

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified “at fair value through profit or loss”, in which case transaction costs are expensed to profit or loss immediately.

Classification and subsequent measurement

Finance instruments are subsequently measured at fair value, amortised cost using the effective interest rate method, or cost.

Amortised cost is the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method.

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense item in profit or loss.

The Group does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the requirements of Accounting Standards specifically applicable to financial instrument

(i) Loans and receivablesLoans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost.

Loans and receivables are included in current assets, where they are expected to mature within 12 months after the end of the reporting period.

(ii) Held-to-maturity investmentsHeld-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the Group’s intention to hold these investments to maturity. They are subsequently measured at amortised cost.

Held-to-maturity investments are included in non-current assets where they are expected to mature within 12 months after the end of the reporting period. All other investments are classified as current assets.

(iii) Available-for-salefinancialassetsAvailable-for-sale financial assets are non-derivative financial assets that are either not suitable to be classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.

They are subsequently measured at fair value with changes in such fair value (i.e. gains or losses) recognised in other comprehensive income (except for impairment losses and foreign exchange gains and losses). When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other comprehensive income is reclassified into profit or loss.

Available-for-sale financial assets are included in current assets where they are expected to be sold within 12 months after the end of the reporting period. All other financial assets are classified as non-current assets.

(iv) Financial liabilitiesNon-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.

Impairment of Financial Assets

At the end of each reporting period, the Group assess whether there is objective evidence that a financial asset has been impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events (a “loss event”) having occurred, which has an impact on the estimated future cash flows of the financial asset(s).

In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of the instrument is considered to constitute a loss event. Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit or loss at this point.



A N N U A L R E P O R T 2 0 1 8

In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation; and changes in arrears or economic conditions that correlate with defaults.

For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is used to reduce the carrying amount of financial assets impaired by credit losses. After having taken all possible measures of recovery, if management establishes that the carrying amount cannot be recovered by any means, at that point the written-off amounts are charged to the allowance account or the carrying amount of impaired financial assets is reduced directly if no impairment amount was previously recognised in the allowance account.

When the terms of the financial assets that would otherwise have been past due or impaired have been renegotiated, the group recognises the impairment for such financial assets by taking into account the original terms as if the terms have not been renegotiated so that the loss events have occurred are duly considered.

(h)ImpairmentofNon-FinancialAssets

At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the Statement of Profit or Loss and Other Comprehensive Income.

Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.

(i) EmployeeBenefits

Provision is made for the Company’s liability for employee benefits arising from services rendered by employees to reporting date. Employee benefits that are expected to be settled wholly within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. Those cash flows are discounted using market yields on high quality corporate bonds with terms to maturity that match the expected timing of cash flows.

(j) Provisions

Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

(k)CashandCashEquivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, less credit card facilities used. Bank overdrafts are shown as short-term borrowings in liabilities.

(l) TradeandOtherReceivables

Trade receivables, which generally have 30 day terms, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less an allowance for impairment.

Collectability of trade receivables is reviewed on an ongoing basis at an operating unit level. Individual debts that are known to be uncollectible are written off when identified. An impairment provision is recognised when there is objective evidence that the Group will not be able to collect the receivable.

(m)RevenueandOtherIncome

Revenue from the sale of goods is recognised when significant risks and rewards of the saleable product have transferred to the customer. Risks and rewards are considered passed to the customer upon delivery to the customer’s control. This generally occurs when the product is physically transferred onto a vessel.

Revenue from inventory sales is measured at fair value of consideration received/receivable. Revenue is stated after deducting sales taxes, duties and levies.

The price is determined on a provisional basis at the date of sale (cost insurance and freight). Adjustments to the sale price may occur based on variances in the metal or moisture content of the ore up to the date of final pricing. The period between provisional invoicing and final pricing is typically between 2 and 3 months. Accordingly, the fair value of the original revenue and associated receivable is adjusted each reporting period by reference to the best estimate of the actual metal and moisture content. The changes in fair value are recorded as an adjustment to revenue.

Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets, is the rate inherent in the instrument.

All revenue is stated net of the amount of goods and services tax (GST).

(n)BorrowingCosts

Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in the Statement of Profit or Loss and Other Comprehensive Income in the period in which they are incurred.

(o)GoodsandServicesTax(GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers.


4 0



(p)TradeandOtherPayables

Trade and other payables are carried at cost and due to their short term nature they are not discounted. They represent liabilities for goods and services provided to the Group prior to the end of the financial period that are unpaid and arise when Jupiter becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition.

(q)ComparativeFigures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial period.

(r) CriticalAccountingEstimatesandJudgements

The Directors evaluate estimates and judgements incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Group.

Keyestimates–Impairmentofnon-financialassetsThe Group assesses impairment at each reporting date by evaluating conditions specific to the Group that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined.

Key estimates – OptionsThe fair value of services received in return for options granted are measured by reference to the fair value of options granted. The estimate of the fair value of the services received is measured based on the Black Scholes option-pricing model. The contractual life of the options is used as an input into the model. Expectations of early exercise are incorporated into the model as well.

The expected volatility is based on the historic volatility of peer Group entities (calculated on the weighted average remaining life of the share options), adjusted for any expected changes to volatility due to publicly available information.

Key judgements – Exploration and evaluation expenditureThe Group’s accounting policy for exploration and evaluation expenditure results in certain items of expenditure being capitalised for an area of interest where it is considered likely to be recoverable by future exploitation or sale or where the activities have not reached a stage which permits a reasonable assessment of the existence of reserves. This policy requires management to make certain estimates and assumptions as to future events and circumstances, in particular whether an economically viable extraction operation can be established. Any such estimates and assumptions may change as new information becomes available. If, after having capitalised the expenditure under the policy, a judgement is made that recovery of the expenditure is unlikely, the relevant capitalised amount will be written off to the Statement of Profit or Loss and Other Comprehensive Income.

(s) Sharebasedpayments

Under AASB 2 share based payments, the Company is required to determine the fair value of options issued to employees as remuneration and recognise as an expense in the Statement of Profit or Loss and Other Comprehensive Income. This standard is not limited to options and also extends to other forms of equity-based remuneration.

(t) ForeignCurrencyTranslation

(i) Functional and presentation currencyThe functional and presentation currency of Jupiter and its subsidiaries is Australian dollars ($). The presentation and functional currency for the interest in Tshipi and South African marketing branch is the South African Rand.

The results are translated into Australian dollars for disclosure in Jupiter’s consolidated accounts.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

(ii) Translation of interest in Joint Venture functional currency to presentation currency

The results of the South African Joint Venture interest are translated into Australian dollars using an average rate over the period of the transactions. Assets and liabilities are translated at exchange rates prevailing at reporting dates.



A N N U A L R E P O R T 2 0 1 8

(u)

Acc

ount

ing

stan

dard

san

dIn

terp

reta

tion

sis

sued

but

not

yet

eff

ecti

ve

Aust

ralia

n Ac

coun

ting

Stan

dard

s an

d In

terp

reta

tions

that

hav

e re

cent

ly be

en is

sued

or a

men

ded

but a

re n

ot y

et e

ffect

ive a

nd h

ave

not b

een

adop

ted

by th

e G

roup

for t

he a

nnua

l rep

ortin

g pe

riod

endi

ng 2

8 Fe

brua

ry 2

018

are

outlin

ed in

the

tabl

e be

low

:

New

/rev

ised

pr

onou

ncem

ent

Supe

rsed

ed

pron

ounc

emen

tN

atur

e of

cha

nge

Effec

tive

date

(ann

ual r

epor

ting

perio

ds e

ndin

g on

or a

fter…

)

Like

ly im

pact

on

initi

al a

pplic

atio

n

AASB

9 F

inan

cial

Inst

rum

ents

(D

ecem

ber 2

014)

AASB

139

Fin

ancia

l In

stru

men

ts:

Reco

gnitio

n an

d M

easu

rem

ent

AASB

9 in

trodu

ces

new

requ

irem

ents

for t

he c

lassifi

catio

n an

d m

easu

rem

ent

of fi

nanc

ial a

sset

s an

d lia

biliti

es a

nd in

clude

s a

forw

ard-

look

ing

‘exp

ecte

d lo

ss’

impa

irmen

t mod

el an

d a

subs

tant

ially-

chan

ged

appr

oach

to h

edge

acc

ount

ing.

Thes

e re

quire

men

ts im

prov

e an

d sim

plify

the

appr

oach

for c

lassifi

catio

n an

d m

easu

rem

ent o

f fina

ncial

ass

ets

com

pare

d w

ith th

e re

quire

men

ts o

f AAS

B 13

9.

The

main

cha

nges

are

:(a

) Fi

nanc

ial a

sset

s th

at a

re d

ebt i

nstru

men

ts w

ill be

clas

sified

bas

ed o

n: (i)

the

objec

tive

of th

e en

tity’s

bus

ines

s m

odel

for m

anag

ing

the

finan

cial a

sset

s; a

nd

(ii) th

e ch

arac

teris

tics

of th

e co

ntra

ctua

l cas

h flo

ws.

(b)

Allo

ws

an ir

revo

cabl

e ele

ctio

n on

initia

l rec

ogni

tion

to p

rese

nt g

ains

and

loss

es o

n in

vest

men

ts in

equ

ity in

stru

men

ts th

at a

re n

ot h

eld fo

r tra

ding

in

oth

er c

ompr

ehen

sive

inco

me

(inst

ead

of in

pro

fit o

r los

s).

Divid

ends

in

resp

ect o

f the

se in

vest

men

ts th

at a

re a

retu

rn o

n in

vest

men

t can

be

reco

gnise

d in

pro

fit o

r los

s an

d th

ere

is no

impa

irmen

t or r

ecyc

ling

on

disp

osal

of th

e in

stru

men

t.

(c)

Intro

duce

s a

‘fair

valu

e th

roug

h ot

her c

ompr

ehen

sive

inco

me’

mea

sure

men

t ca

tego

ry fo

r par

ticul

ar s

impl

e de

bt in

stru

men

ts.

(d)

Fina

ncial

ass

ets

can

be d

esig

nate

d an

d m

easu

red

at fa

ir va

lue

thro

ugh

profi

t or

loss

at i

nitia

l rec

ogni

tion

if do

ing

so e

limin

ates

or s

igni

fican

tly re

duce

s a

mea

sure

men

t or r

ecog

nitio

n in

cons

isten

cy th

at w

ould

aris

e fro

m m

easu

ring

asse

ts o

r liab

ilities

, or r

ecog

nisin

g th

e ga

ins

and

loss

es o

n th

em, o

n di

ffere

nt

base

s.

1 Ja

nuar

y 20

18Th

e en

tity

is ye

t to

unde

rtake

a d

etail

ed a

sses

smen

t of

the

impa

ct o

f AAS

B 9.

How

ever

, bas

ed o

n th

e en

tity’s

pr

elim

inar

y as

sess

men

t, th

e St

anda

rd is

not

exp

ecte

d to

ha

ve a

mat

erial

impa

ct o

n th

e tra

nsac

tions

and

bala

nces

re

cogn

ised

in th

e fin

ancia

l sta

tem

ents

whe

n it

is fir

st

adop

ted

for t

he y

ear e

ndin

g 28

Feb

ruar

y 20

19.

Consolidated Group

February 2018 $

February 2017 $


4 2



New

/rev

ised

pr

onou

ncem

ent

Supe

rsed

ed

pron

ounc

emen

tN

atur

e of

cha

nge

Effec

tive

date

(ann

ual r

epor

ting

perio

ds e

ndin

g on

or a

fter …

.)

Like

ly im

pact

on

initi

al a

pplic

atio

n

AASB

9 F

inan

cial

Inst

rum

ents

(D

ecem

ber 2

014)

co

ntin

ued

(as

abov

e)(e

) W

here

the

fair

valu

e op

tion

is us

ed fo

r fina

ncial

liabi

lities

the

chan

ge in

fair

valu

e is

to b

e ac

coun

ted

for a

s fo

llow

s:

�th

e ch

ange

attr

ibut

able

to c

hang

es in

cre

dit r

isk a

re p

rese

nted

in O

ther

Co

mpr

ehen

sive

Inco

me

(‘OCI

’)

�th

e re

main

ing

chan

ge is

pre

sent

ed in

pro

fit o

r los

s

If th

is ap

proa

ch c

reat

es o

r enl

arge

s an

acc

ount

ing

mism

atch

in th

e pr

ofit o

r lo

ss, t

he e

ffect

of t

he c

hang

es in

cre

dit r

isk a

re a

lso p

rese

nted

in p

rofit

or l

oss.

Oth

erw

ise, t

he fo

llow

ing

requ

irem

ents

hav

e ge

nera

lly b

een

carri

ed fo

rwar

d un

chan

ged

from

AAS

B 13

9 in

to A

ASB

9:

�cla

ssific

atio

n an

d m

easu

rem

ent o

f fina

ncial

liabi

lities

; and

�de

reco

gnitio

n re

quire

men

ts fo

r fina

ncial

ass

ets

and

liabi

lities

.

AASB

9 re

quire

men

ts re

gard

ing

hedg

e ac

coun

ting

repr

esen

t a s

ubst

antia

l ov

erha

ul o

f hed

ge a

ccou

ntin

g th

at e

nabl

e en

tities

to b

ette

r refl

ect t

heir

risk

man

agem

ent a

ctivi

ties

in th

e fin

ancia

l sta

tem

ents

.

Furth

erm

ore,

AAS

B 9

intro

duce

s a

new

impa

irmen

t mod

el ba

sed

on e

xpec

ted

cred

it lo

sses

. Th

is m

odel

mak

es u

se o

f mor

e fo

rwar

d-lo

okin

g in

form

atio

n an

d ap

plies

to a

ll fina

ncial

inst

rum

ents

that

are

sub

ject t

o im

pairm

ent a

ccou

ntin

g.

AASB

15

Reve

nue

from

Con

tract

s w

ith

Cust

omer

s

AASB

118

Rev

enue

AASB

111

Co

nstru

ctio

n Co

ntra

cts

Int.

13 C

usto

mer

Lo

yalty

Pro

gram

mes

Int.

15 A

gree

men

ts

for t

he C

onst

ruct

ion

of R

eal E

stat

e

AASB

15:

repl

aces

AAS

B 11

8 Re

venu

e, A

ASB

111

Cons

truct

ion

Cont

ract

s an

d so

me

reve

nue-

relat

ed In

terp

reta

tions

: �

esta

blish

es a

new

reve

nue

reco

gnitio

n m

odel

�ch

ange

s th

e ba

sis fo

r dec

idin

g w

heth

er re

venu

e is

to b

e re

cogn

ised

over

tim

e or

at a

poi

nt in

tim

e

�pr

ovid

es n

ew a

nd m

ore

deta

iled

guid

ance

on

spec

ific to

pics

(e.g

. mul

tiple

elem

ent a

rrang

emen

ts, v

ariab

le pr

icing

, rig

hts

of re

turn

, war

rant

ies a

nd

licen

sing)

�ex

pand

s an

d im

prov

es d

isclo

sure

s ab

out r

even

ue.

1 Ja

nuar

y 20

18Th

e Co

mpa

ny h

as a

nalys

ed th

e ne

w re

venu

e st

anda

rd a

nd

mor

e sp

ecific

ally

the

guid

ance

inclu

ded

in th

e st

anda

rd.

�Th

e So

uth

Afric

an B

ranc

h en

ters

into

sale

s co

ntra

cts

with

ext

erna

l cus

tom

ers

for t

he s

ale o

f man

gane

se o

re

how

ever

Tsh

ipi is

prim

arily

resp

onsib

le fo

r the

pro

duct

ion

of o

re, g

ettin

g th

e or

e to

the

port

and

load

ing

the

ore

on b

oard

a v

esse

l and

ther

efor

e ev

en th

ough

the

Sout

h Af

rican

Bra

nch

ente

rs in

to th

ese

sales

con

tract

s, in

th

eir o

wn

nam

e, w

e do

not

con

sider

the

Bran

ch to

be

prim

arily

resp

onsib

le fo

r ful

fillin

g th

e co

ntra

ct. I

f the

co

ntra

ct w

as n

ot fu

lfilled

and

pen

alties

are

impo

sed

on

the

Sout

h Af

rican

Bra

nch

by th

e cu

stom

ers

then

the

Bran

ch w

ould

impo

se th

ese

pena

lties

on T

ship

i.



A N N U A L R E P O R T 2 0 1 8

New

/rev

ised

pr

onou

ncem

ent

Supe

rsed

ed p

rono

unce

men

tN

atur

e of

cha

nge

Effec

tive

date

(a

nnua

l rep

ortin

g pe

riods

end

ing

on

or a

fter …

.)

Like

ly im

pact

on

initi

al a

pplic

atio

n

�W

ith re

gard

s to

inve

ntor

y risk

, the

Sou

th A

frica

n Br

anch

only

take

s fla

sh

title

of th

e go

ods.

Jup

iter M

ines

Limite

d en

ters

into

bac

k-to

-bac

k sa

les

agre

emen

ts w

ith Ts

hipi fo

r the

pur

chas

e of

ore

onc

e th

e So

uth

Afric

an

Bran

ch h

as e

nter

ed in

to a

sale

s co

ntra

ct w

ith a

cus

tom

er. E

ven

thou

gh

the

Sout

h Af

rican

Bra

nch

are

entit

led to

their

por

tion

of Ts

hipi’s

pro

duct

ion

as p

er th

e ta

ke o

r pay

off-

take

agr

eem

ent,

in pr

actic

e th

e So

uth

Afric

an

Bran

ch w

ould

not

be

requ

ired

to p

urch

ase

the

ore

from

Tsip

hi w

ithou

t ha

ving

sold

the

ore

to a

cus

tom

er. T

here

is th

eref

ore

limite

d inv

ento

ry ri

sk

for t

he S

outh

Afri

can

Bran

ch.

�Th

e So

uth

Afric

an B

ranc

h is

rem

uner

ated

with

a c

omm

ission

for e

ach

sale.

�Th

e So

uth

Afric

an B

ranc

h is

only

expo

sed

to lim

ited

cred

it ris

k as

eac

h sa

le w

ith a

third

par

ty c

usto

mer

is m

ade

unde

r a le

tter o

f cre

dit.

Base

d on

the

abov

e fa

ctor

s, th

e Co

mpa

ny d

oes

not e

xpec

t any

sign

ifican

t ch

ange

in th

e m

anne

r in

whic

h re

venu

e is

curre

ntly

reco

gnise

d.

AASB

15

Reve

nue

from

Con

tract

s w

ith C

usto

mer

s co

ntin

ued

Int.

18 T

rans

fer o

f Ass

ets

from

Cus

tom

ers

Int.

131

Reve

nue

– Ba

rter T

rans

actio

ns

Invo

lving

Adv

ertis

ing

Serv

ices

Int.

1042

Sub

scrib

er A

cqui

sitio

n Co

sts

in

the

Telec

omm

unica

tions

Indu

stry

AASB

16

Leas

esAA

SB 1

17 L

ease

s

Int.

4 De

term

inin

g w

heth

er a

n Ar

rang

emen

t con

tain

s a

Leas

e

Int.

115

Ope

ratin

g Le

ases

—Le

ase

Ince

ntive

s

Int.

127

Evalu

atin

g th

e Su

bsta

nce

of

Tran

sact

ions

Invo

lving

the

Lega

l For

m o

f a

Leas

e

AASB

16:

�re

plac

es A

ASB

117

Leas

es a

nd s

ome

lease

-relat

ed In

terp

reta

tions

�re

quire

s all

leas

es to

be

acco

unte

d fo

r ‘o

n-ba

lance

she

et’ b

y les

sees

, oth

er th

an

shor

t-ter

m a

nd lo

w v

alue

asse

t lea

ses

�pr

ovid

es n

ew g

uida

nce

on th

e ap

plica

tion

of th

e de

finitio

n of

leas

e an

d on

sale

and

leas

e ba

ck a

ccou

ntin

g

�lar

gely

reta

ins th

e ex

isting

less

or

acco

untin

g re

quire

men

ts in

AAS

B 11

7

�re

quire

s ne

w a

nd d

iffere

nt d

isclo

sure

s ab

out l

ease

s

1 Ja

nuar

y 20

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4 4



NOTE 2: REVENUE

Consolidated Group

February 2018 $

February 2017 $

Sales revenue (413,595) 155,555,500

Cost of sales 328,655 (146,298,513)

Gross profit (84,940) 9,256,987

Marketing fee income 10,048,724 1,245,317

Other income 238,697 192,755

Other income 10,287,421 1,438,072

Jupiter Mines Limited (External Profit Company) is registered in South Africa for the purpose of the sale and export of Jupiter’s share of Tshipi manganese ore. The negative sales revenue and cost of sales are due to adjustments made at between load port and discharge port. From 1 March 2017, Jupiter earned only a marketing fee on an agency basis, meaning ore is purchased by Jupiter Mines (South Africa) via Jupiter Mines (Australia). Due to this, Trade Receivables and Payables have increased for the reporting period. Please see Segment Reporting Note 23 for further details.

NOTE 3: INCOME TAX EXPENSE AND DEFERRED TAXESThe major components of tax expense and the reconciliation of the expected tax expense based on the domestic effective tax rate of Jupiter Mines at 30% (2017: 30%) and the reported tax expense in the profit or loss are as follows:

Tax expense comprises:

(a) Current tax 6,354,708 2,569,420

Add:

Deferred income tax relating to origination and reversal of temporary differences

� Origination and reversal of timing differences (1,137,146) 350,534

� Utilisation of unused tax losses 398,033 5,421,204

� Recognition of previously unrecognised deferred tax assets - (2,721,790)

� Under/(over) provision in respect of prior years (31,453) -

Tax Expense 5,584,142 5,619,368

(b) Accounting profit before tax 97,789,805 205,718,703

Domestic tax rate for Jupiter Mines Limited at 30% (2017: 30%) 29,336,942 61,715,611

Tax rate differential (1,614,911) (813,141)

Other expenditure not allowed or allowable for income tax purposes 438,261 267,539

Reversal of impairments - (43,092,571)

Deferred Tax Asset losses not brought to account 3,786,681 1,876,450

Recoupment of prior year tax losses not previously brought to account - (5,421,204)

Deferred Tax Asset temporary differences not previously brought to account - 3,072,860

Deferred Tax Asset losses not previously brought to account - (373,446)

Share of profit in equity accounted investments (26,331,379) (11,612,730)

Income tax expense 5,584,142 5,619,368


A N N U A L R E P O R T 2 0 1 8

Deferred taxes arising from temporary differences and unused tax losses can be summarised as follows:

Deferred Tax Assets (Liabilities) Opening balance 1 March 2017

Recognised in Profit and Loss During the

Year

Closing Balance 28 February 2018

Liabilities

Property, plant and equipment (64,201) 75,288 11,087

Exploration (3,472,501) 879,602 (2,592,900)

Other (1,275) 1,223 (52)

Balance as at 28 February 2018 (3,537,977) 956,113 (2,581,865)

Assets

Trade and other receivables 93,397 14,385 107,782

Pension and other employee obligations 5,692 259 5,950

Provisions 12,600 2,850 15,450

Other 2,895 170,406 173,301

Unused tax losses 373,446 (373,446) -

Balance as at 28 February 2018 488,030 (185,546) 302,484

Net Deferred Tax Liabilities (3,049,947) 770,567 (2,279,381)

NOTE 4: AUDITORS’ REMUNERATIONAmounts paid or payable to the auditors of the Company and charged as an expense were:

Consolidated Group

February 2018$

February 2017$

Audit and review of the financial statements

� Auditors of Jupiter Mines Limited 140,262 78,935

� Auditors of subsidiary or related entities 182,798 18,022

Remuneration for audit and review of financial statements 323,060 96,957

Other non-audit services

� Taxation services 32,100 34,125

� Corporate finance 60,000 -

Total other service remuneration 92,100 34,125

Total auditors’ remuneration 415,160 131,082

NOTE 3: INCOME TAX EXPENSE AND DEFERRED TAXES (CONTINUED)

4 6



NOTE 5: EARNINGS PER SHARE AND DIVIDENDSBoth the basic and diluted earnings per share have been calculated using the profit attributable to shareholders of the parent Company (Jupiter Mines Limited):

Reconciliation of earnings to net profit for the year

Net profit 92,205,663 200,099,335

No. No.

Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS and dilutive EPS 2,126,815,701 2,281,835,383

Profit per share $0.0434 $0.0902

NOTE 6: CASH AND CASH EQUIVALENTS

Consolidated Group

February 2018 $

February 2017 $

Cash at bank and in hand 9,375,739 68,981,719

Short-term bank deposits 10,237,361 99,060

Restricted cash 52,766,038 15,628,481

Cash in transit 4,165,349 -

76,544,487 84,709,260

The effective interest rate on short-term bank deposits was 0.34%; (February 2017: 0.14%) the term deposits range between 30 and 90 days.

Restricted cash represents funds that were held in trust for payment of the equal access share buy-back proceeds to shareholders on 19 March 2018. Cash in transit represents an inter-account transfer effected on 28 February 2018 but not cleared until 1 March 2018.

NOTE 7: TRADE AND OTHER RECEIVABLES

Consolidated Group

February 2018 $

February 2017 $

Trade receivables 45,679,877 -

GST and VAT receivables 93,363 10,620

Sundry receivables 89,843 9,945,418

45,863,083 9,956,038

All of the Group’s trade and other receivables have been reviewed for indicators of impairment. It was found that the Group’s exposure to bad debts is not significant. Due to the short term nature of these receivables, their carrying value is assumed to approximate their fair value.

Details regarding the foreign exchange and interest rate risk exposure are disclosed in Note 27.

The majority of trade receivables represent amounts receivable by Jupiter South Africa branch relating to the sale of manganese ore to third party customers. No debtors were recorded in 2017 due to Tshipi conducting sales on behalf of Jupiter whilst it completed the registration of The Company in South Africa. The net receivable for 2017 was disclosed as part of Sundry receivables. Refer to Note 2 for further details.


A N N U A L R E P O R T 2 0 1 8

NOTE 8: ASSETS HELD FOR SALE

Consolidated Group

February 2018 $

February 2017 $

Non-current assets held for sale comprise:

OM Tshipi (S) Pte Limited

� Receivable on exit of joint venture - 2,726,219

Total Assets Held for Sale - 2,726,219

Non-current assets held for sale comprised the receivable due on exit of the OM Tshipi (S) Pte Limited (“OMT”) joint venture, which was completed on 11 April 2017. Jupiter Kalahari S.A. entered into a sale agreement to sell its shares in OMT for US$2,300,000 (approximately $3,071,641). A gain on sale of shares of $345,447 was recognised in the Statement of Profit or Loss and Other Comprehensive Income.

NOTE 9: AVAILABLE FOR SALE FINANCIAL ASSETS

Consolidated Group

February 2018 $

February 2017 $

Listed investments, at fair value

� Shares in listed corporations 1,043,702 387,294

Available-for-sale financial assets consist of investments in ASX listed company’s ordinary shares, and therefore they have no fixed maturity date or coupon rate. The fair value of listed available-for-sale investments has been determined directly by reference to published price quotations in an active market. This resulted in a net gain on revaluation of $656,408 for the 2018 financial year, which was recognised in the Financial Assets Reserve. In the comparative 2017 financial year there was a net gain of $180,488, which was recognised in the Financial Assets Reserve.

NOTE 10: INTERESTS IN SUBSIDIARIES

Percentage Owned (%)*

Controlled entities consolidated Notes Country of Incorporation 2018 2017

Parent Entity:

� Jupiter Mines Limited Australia

Subsidiaries of Jupiter Mines Limited:

� Future Resources Australia Pty Limited Australia 100 100

� Central Yilgarn Pty Limited Australia 100 100

� Broadgold Pty Limited Australia 100 100

� Jupiter Kalahari S.A. (a) Luxembourg 100 100

� Jupiter Mines Limited (Incorporated in Australia) External Profit Company (b) South Africa 100 100

*Percentage of voting power is in proportion to ownership

Principal Activities:(a) During the period all Controlled Entities with the exception of Jupiter Kalahari S.A were dormant.(b) The Company is registered as a South African branch company for the purposes of its manganese ore marketing activities.

4 8



NOTE 11: PROPERTY, PLANT AND EQUIPMENTDetails of the Group’s property, plant and equipment and their carrying amounts are as follows:

Leasehold Improvements

$

Plant and Equipment

$

Furniture and Fittings

$

Total$

Gross carrying amount:

Balance as at 1 March 2017 110,923 3,731,792 195,740 4,038,455

Additions - 1,500 - 1,500

Balance as at 28 February 2018 - 3,733,292 - 4,039,955

Depreciation and impairment:

Balance as at 1 March 2017 (110,923) (3,405,351) (195,740) (3,712,014)

Depreciation - (321,575) - (321,575)

Balance as at 28 February 2018 - 3,726,926 - 4,033,589

Carrying amount as at 28 February 2018 - 6,366 - 6,366

All depreciation and impairment charges are included within depreciation, amortisation and impairment of non-financial assets. Depreciation charges of $321,288 relating to the CYIP assets are capitalised to Exploration and Evaluation Assets. Other depreciation of $287 is expensed to the Statement of Profit or Loss and Other Comprehensive Income.

NOTE 12: INTANGIBLE ASSETSDetail of the Group’s other intangible assets and their carrying amounts are as follows:

Software Licenses $ Total $

Gross carrying amount:

Balance as at 1 March 2017 338,112 338,112

Additions, separately acquired 6,900 6,900

Balance as at 28 February 2018 345,012 345,012

Amortisation and impairment:

Balance as at 1 March 2017 (330,783) (330,783)

Amortisation (12,244) (12,244)

Balance as at 28 February 2018 (343,027) (343,027)

Carrying amount at 28 February 2018 1,985 1,985

Intangible assets have finite useful lives. The current amortisation charges for intangible assets are included under depreciation and amortisation expense per the Statement of Profit or Loss and Other Comprehensive Income. All software is amortised over 3 years.

NOTE 13: OTHER CURRENT ASSETS

Consolidated Group

February 2018 $

February 2017 $

Deposits 70,381 429,396

Loans to related party – Tshipi é Ntle Manganese Mining Proprietary Limited - 26,278,632

70,381 26,708,028

The remaining loans payable by Tshipi were repaid during the year. The loan was held in South African Rand. For terms of related party arrangements refer to Note 26.

Details regarding fair value, foreign exchange risk and interest rate risk is disclosed in Note 27.

The maximum exposure to credit risk at the reporting date is the higher of the carrying value of each class of receivable. No collateral is held as security.


A N N U A L R E P O R T 2 0 1 8

NOTE 14: EXPLORATION AND EVALUATION ASSETS

Consolidated Group

February 2018 $

February 2017 $

Opening Balance 11,632,006 10,384,000

Additions 1,187,412 1,248,006

Impairment (4,119,418) -

Closing Balance 8,700,000 11,632,006

Costs carried forward in respect of the following areas of interest:

� Mount Mason 600,000 296,830

� Mount Ida 8,100,000 11,335,176

8,700,000 11,632,006

Jupiter once again commissioned an independent valuation of its iron ore assets in line with valuation and accounting standards. The valuation recommended the Mount Ida Magnetite Project to be valued at between $3 million and $25 million, and the Mount Mason DSO Hematite Project valued at between $0.3 million and $1 million. Upon further examination, the Board has resolved to adopt valuations of $8.1 million for Mount Ida and $0.6 million for Mount Mason, and recognised an impairment of $4.4 million and reversal of impairment of $0.3 million respectively. These amounts have been recognised in Statement of Profit or Loss and Other Comprehensive Income.

NOTE 15: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHODSet out below are the Joint Ventures of the Group as at 28 February 2018, in which in the opinion of the Directors, are material to the Group. The entities listed below have share capital consisting solely of ordinary shares, which are held directly by the Group. The country of incorporation or registration is also their principal place of business, and the proportion of the Group’s ownership interest is the same as the proportion of voting rights held. These entities are held through a fully controlled entity, Jupiter Kalahari S.A. The investments are accounted for using the equity method in accordance with AASB 128.

Ownership interest held by the Group

Name of Entity Country of Incorporation 2018 2017 Nature of

RelationshipMeasurement

Method

Tshipi é Ntle Manganese Mining Proprietary Limited South Africa 49.9% 49.9% Joint Venture Joint Venture

OM Tshipi (S) Pte Ltd* Singapore - 33.3% Joint Venture Joint Venture

*See Note 8. Jupiter gave notice to exit the OM Tshipi (S) Pte Ltd joint venture on 1 March 2016 and the exit was completed on 11 April 2017.

Consolidated Group

Summarised Financial Information February 2018$

February 2017$

Tshipi é Ntle Manganese Mining Proprietary Limited

Opening carrying value of joint venture 345,556,557 178,818,142

Decrease of shareholder loan (26,585,562) (18,377,523)

Dividend paid (27,744,378) -

Share of profit using the equity method 94,040,638 41,474,035

Reversal of impairment of carrying value of investment - 143,641,903

385,267,255 345,556,557

OM Tshipi (S) Pte Ltd

Opening carrying value of joint venture - 2,726,219

Share of profit using the equity method - -

Receivable on exit of joint venture transferred to Assets Held for Sale (Note 8) - (2,726,219)

- -

Total investments using the equity method 385,267,255 345,556,557

5 0



In accordance with the Group’s accounting policies and processes, the Group performs its impairment testing annually at 28 February. The Board commissioned an independent valuation of the Company’s investment in Tshipi, which provided a preferred valuation of Jupiter’s investment of approximately $741 million as at 31 December 2017, which is above the carrying value of the investment at 28 February 2018. There are no material changes to the value between 31 December 2017 and balance date.

For the previous year end, the Group also commissioned an independent valuation share of its investment which recommended a preferred valuation of the Tshipi Borwa asset to be $889,156,478. The Board therefore resolved to reverse the investment in Tshipi of $143,643,903 that was recorded in the 2016 financial year.

Further details relating to the 2018 valuation are as follows:

(a)Methodology

Impairment is recognised when the carrying amount exceeds the recoverable amount. The recoverable amount being the value in use of the cash-generating unit (“CGU”) has been estimated using the discounted cash flows method based on the Group’s recoverable minerals.

Value in use is estimated based on discounted cash flows using market based commodity price, estimated quantities of recoverable minerals, production levels, operating costs and capital requirements. When Life of Mine (LOM) plans fully utilise the existing mineral resource and the Group have demonstrated an ability to replenish resources, an estimated replenishment rate has been applied to unmined resources.

Estimates of quantities of recoverable minerals, production levels, operating costs and capital requirements are sourced from the Group planning and budgeting process, capacity levels and mining plans for the following year. The 2020 budget and mine plan were developed in the context of the current manganese price environment.

Significant judgements and assumptions are made by the Group to determine value in use. This includes assessing variable key assumptions such as manganese market prices, cost structures, production utilisation and capacity, available minerals and discount rates. Any change in these variable assumptions can cause adverse changes in one or more of the assumptions used to estimate value in use.

(b)KeyAssumptions

Commodity prices

The Tshipi Borwa valuation is particularly sensitive to the manganese price. The independent valuation used information from a range of sources to forecast the manganese price. The manganese price assumptions used was US$4.00 per dry metric tonne unit (“dmtu”) (37% FOB Port Elizabeth) over the life of mine.

Discount rate

The future cash flows of the CGU are discounted by the estimated real after tax weighted average cost of capital (WACC), pursuant to the Capital Asset Pricing Model. This has been estimated based on the Tshipi WACC rate as the Tshipi mining operation is the Group’s primary asset.

Production activity and operating and capital costs

Life of mine production activity and operating and capital cost assumptions are based on the Group’s latest budget, including the five year budget and separately estimated LOM plan. Discounted cash flows include expected cost improvements and sustaining capital requirements. Estimated production is assumed consistent with the capacity of the Tshipi mine taken into account while assuming a constant recovery rate.

Resources and reserves

Resource and Reserve tonnes were based on JORC 2012.

NOTE 16: TRADE AND OTHER PAYABLES

Consolidated Group

February 2018 $

February 2017 $

Trade payables 43,432,749 133,949

Sundry payables and accrued expenses 5,574,988 3,383,058

49,007,737 3,517,007

Due to the short term nature of these payables, their carrying value is assumed to approximate to their fair value. The majority of trade payables represent amounts payable to Tshipi relating to the purchase of manganese ore.

No payables were recorded in 2017 due to Tshipi conducting sales on behalf of Jupiter whilst it completed the registration of the Company in South Africa. The net receivable for 2017 was disclosed as part of Sundry Receivables. Refer to Note 2 for further information.

NOTE 15: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)


A N N U A L R E P O R T 2 0 1 8

NOTE 17: CURRENT PROVISIONSAll provisions are considered current. The carrying amounts and movements in the provisions account are as follows:

Carrying amount 1 March 2017 – employee benefits 18,972

Additional provisions 45,612

Amount utilised (4,474)

Reversals (7,663)

Carrying amount 28 February 2018 52,447

Carrying amount 1 March 2016 – employee benefits 42,879

Additional provisions 14,468

Amount utilised (38,375)

Reversals -

Carrying amount 28 February 2017 18,972

NOTE 18: EMPLOYEE REMUNERATIONExpenses recognised for employee benefits are analysed below:

Consolidated Group

February 2018 $

February 2017 $

Employee benefits - expense

Salary and wages 576,805 500,165

Superannuation costs 23,376 25,124

Payroll and other taxes 555 4,378

Bonuses payable 898,015 -

Employee benefits expense 1,498,751 529,667

Bonuses payable relate to payments paid or accrued to the CEO and CFO. Refer to Remuneration Report for further details.

NOTE 19: EQUITYThe share capital of Jupiter Mines consists only of fully paid ordinary shares; the shares do not have a par value. All shares are equally eligible to receive dividends and the repayment of capital and represent one vote at the shareholders’ meeting of Jupiter Mines.

2018 No. Shares

2017 No. Shares

2018 $

2017 $

Shares issued and fully paid:

Beginning of the year 2,281,835,383 2,281,835,383 526,639,293 526,639,293

13 March 2017 share buy-back ($0.5264 per share) (134,190,158) - (70,635,693) -

5 December 2017 share buy-back ($0.2767 per share) (83,122,507) - (22,999,998) -

Total contributed equity at 28 February 2,064,522,718 2,281,835,383 433,003,602 526,639,293

The share buy-back completed on 5 December 2017 comprised a capital portion shown above of $22,999,998, and a dividend portion of $8,761,112, which is shown in the Consolidated Statement of Changes in Equity. Cash paid to shareholders in the buy-back totalled $102,396,803.

5 2



Capital Management

Management controls the capital of the Group in order to maintain an appropriate debt to equity ratio, provide the shareholders with adequate returns and ensure that the Group can fund its operations and continue as a going concern.

The Group’s debt and capital includes ordinary share capital and financial liabilities, supported by financial assets.

There are no externally imposed capital requirements at balance date.

Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of debt levels, distributions to shareholders and share issues.

NOTE 20: RESERVES

Consolidated Group

Notes February 2018$

February 2017 $

Financial assets reserve (a) 836,895 180,488

Foreign currency translation reserve (b) 268,608 -

1,105,503 180,488

(a)FinancialAssetReserve

The financial assets reserve records amounts relating to the revaluation of available for sale financial assets. See also Note 9.

(b)Foreigncurrencytranslationreserve

The foreign currency translation reserve relates to the differences arising from the revaluation of the Jupiter South African branch financial statements from South African Rand to Australian Dollars.

NOTE 21: CAPITAL AND LEASING COMMITMENTSThe Group leases an office under an operating lease. The future minimum lease payments are as follows:

Consolidated Group

February 2018 $

February 2017 $

Operating Lease Commitments

Non-cancellable operating leases contracted for but not capitalised in the financial statements

Payable – minimum lease payments

� Not later than 12 months 13,039 51,790

� Between 12 months and 5 years - 13,039

13,039 64,829

This is made up of a non-cancellable lease of 2 years however it can be subleased (with prior consent of Lessor). Amounts include rent, outgoings and cleaning with 4.5% annual rent review increase. It does not take into account reduced guarantees or returned deposits or incentives. Figures based on 3 months (1 March to 31 May 2018) which is the end of the lease. The expense recognised for the operating lease was $54,690 (2017: $314,918). The property lease is non-cancellable for two years, with rent payable monthly in advance.

At balance date a lease extension for a further two years had been requested and was in process of being finalised.

Expenditure Commitments

In order to maintain current rights of tenure to mining tenements, the Company and Group are required to perform minimum work to meet the requirements specified by various State governments. These obligations can be reduced by selective relinquishment of exploration tenure or application for expenditure exemptions. Due to the nature of the Company and Group’s operations in exploring and evaluating areas of interest, it is very difficult to forecast the nature and amount of future expenditure. It is anticipated that expenditure commitments for the next twelve months will be tenement rentals of $484,484 (2017: $473,760) and exploration expenditure of $676,100 (2017: $676,100).


A N N U A L R E P O R T 2 0 1 8

NOTE 22: CONTINGENT LIABILITIES AND ASSETSContingent liabilities

The parent entity has provided guarantees to third parties in relation to the performance and obligations of controlled entities in respect of banking facilities. At reporting date, the value of these guarantees and facilities are $57,884 (2017: $57,884). Total utilised at reporting date was $57,884 (2017: $57,884).

Contingent assets

No contingent assets exist as at 28 February 2018 or 28 February 2017.

NOTE 23: SEGMENT REPORTINGThe Group operates in the mining industry. The Group has identified its operating segments based on the internal reports that are reviewed and used by the chief operating decision makers (the Board of Directors and key management) in assessing performance and determining the allocation of resources.

The Group segments are structured primarily on the basis of its exploration and production interests. These are considered to be the Central Yilgarn Iron Exploration Project (Iron Ore), located in Australia, the producing Tshipi Mine (Manganese) located in South Africa, and Jupiter’s South African branch which carries out the sale of manganese ore. The remaining items of revenue, expenses, assets and liabilities, relate to corporate operations. Any transactions between reportable segments have been offset for these purposes.

Segment information for the reporting period is as follows:

28 February 2018CYIP – Iron Ore

(Australia)$

Jupiter Mines – Manganese (South Africa)

Tshipi – Manganese

(South Africa)$

Total$

Revenue - (413,595) - (413,595)

Cost of sales - 328,655 - 328,655

Other income - 10,048,724 - 10,048,724

Employee benefits expense - (378,143) - (378,143)

Other expenses - (327,381) - (327,381)

Segment operating profit - 9,258,260 - 9,258,260

Share of profit from joint venture entities using the equity method - - 94,040,638 94,040,638

Impairment of exploration and evaluation assets (4,119,418) - - (4,119,418)

Finance costs - (158,204) - (158,204)

Foreign exchange loss (478,321) (478,321)

Total (4,119,418) 8,621,736 94,040,638 98,542,956

Corporate (753,151)

Net profit before tax from continuing operations 97,789,805

Segment assets 8,705,157 49,892,882 385,267,255 443,865,294

Corporate assets 73,934,449

Total assets 517,799,743

Segment liabilities - (44,752,145) - (44,752,145)

Corporate liabilities (6,889,904)

Total liabilities (51,642,049)

5 4



28 February 2017CYIP – Iron

Ore (Australia)$

Jupiter Mines – Manganese (South Africa)

Tshipi – Manganese

(South Africa)$

Total$

Revenue - 155,555,500 - 155,555,500

Cost of sales - (146,298,513) - (146,298,513)

Other income - 1,245,317 - 1,245,317

Employee benefits expense - (266,209) - (266,209)

Other expenses - (147,716) - (147,716)

Segment operating profit - 10,088,379 - 10,088,380

Share of profit from joint venture entities using the equity method - - 41,474,035 41,474,035

Reversal of impairment of investment in joint venture entities - - 143,641,903 143,641,903

Finance costs - (452,912) - (452,912)

Foreign exchange loss - (448,122) - (448,122)

Total - 9,187,346 185,115,938 194,303,284

Corporate 410,034

Foreign exchange gain 11,005,386

Net profit before tax from continuing operations 205,718,703

Segment assets 11,959,025 9,876,666 371,835,189 393,670,880

Corporate assets 88,826,896

Total assets 482,497,776

Segment liabilities - (3,253,863) - (3,253,863)

Corporate liabilities (3,820,093)

Total liabilities (7,073,956)

NOTE 23: SEGMENT REPORTING (CONTINUED)


A N N U A L R E P O R T 2 0 1 8

NOTE 24: RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES

Consolidated Group

February 2018 $

February 2017 $

Profit after income tax 92,205,663 200,099,335

Adjustments for:

Depreciation and amortisation 12,531 13,774

Impairment of exploration interests 4,119,418 -

Reversal of impairment of investment in joint venture entities - (143,641,903)

Interest accrued and not yet paid (173) (587,961)

Foreign exchange differences (3,286,639) (11,585,162)

Share of profit from joint venture entities using equity method (94,040,638) (41,474,035)

Loss on sale of motor vehicles - 6,998

Assets held for sale 2,726,193 -

Net changes in working capital:

(Increase)/decrease in trade and other receivables (35,070,025) -

(Increase)/decrease in other assets (17,225) (9,872,723)

Increase/(decrease) in trade payables and other creditors 44,521,672 6,798,808

Increase/(decrease) in provisions 863 (23,907)

Increase/(decrease) in deferred tax liability (770,567) -

Net cash from/(used in) operating activities 10,401,073 (266,776)

NOTE 25: EVENTS AFTER THE REPORTING DATEThese financial statements were authorised for issue on 29 May 2018 by Director Brian Gilbertson.

Jupiter undertook an equal access share buy-back, offering to buy-back 5.81% of issued capital. The offer period closed on 19 February 2018. Subsequently on 19 March 2018, 116,182,215 shares were cancelled, and proceeds of $51,120,174 were paid to shareholders.

Jupiter was admitted to the official list of the Australian Securities Exchange on 18 April 2018 following a $240 million Initial Public Offering (“IPO”).

As part of the IPO, a number of shareholders have entered into Voluntary Escrow Deeds under which they have undertaken to the Company not to dispose of any interest in, or to grant any security over, certain Shares held by them on completion of the Offer. Please refer to the Company’s prospectus for full details.

Upon successful listing of Jupiter, Jupiter CEO Priyank Thapliyal was entitled to receive a bonus which is to be satisfied by the issue of 10,650,530 shares (please refer to Remuneration Report for full details). The issue of these shares is to be approved by an ordinary resolution at the Company’s 2018 Annual General Meeting. If not approved, the bonus will be payable in cash equal to the IPO offer price, being $4,260,212.

5 6



NOTE 26: RELATED PARTY TRANSACTIONSThe Group’s related parties include its associates and joint venture, key management and others as described below. In addition.

Unless otherwise stated, none of the transactions incorporate special terms and conditions and no guarantees were given or received. Outstanding balances are usually settled in cash.

Consolidated Group

February 2018 $

February 2017 $

Transactions with key management personnel:

Consulting fees paid to Andrew Bell Consultants, a company in which Mr A Bell has a beneficial interest. 37,500 35,750

Consulting fees paid to Mr P Murray 38,500 33,000

Expenses reimbursed to Pallinghurst Advisors LLP, a company in which Mr B Gilbertson has a beneficial interest. 226,729 31,142

Expenses reimbursed to Pallinghurst GP Limited, a company in which Mr B Gilbertson has a beneficial interest. 44,932 -

Expenses reimbursed to Mr B P Gilbertson. 17,622 -

Expenses reimbursed to Mr P Thapliyal. 103,678 132,895

Transactions with joint ventures:

Loans receivable from Tshipi é Ntle Manganese Mining Proprietary Limited - 26,278,632

Trade amounts receivable from Tshipi é Ntle Manganese Mining Proprietary Limited - 9,876,666

Other amounts receivable from Tshipi é Ntle Manganese Mining Proprietary Limited 24,944 -

Trade amounts payable to Tshipi é Ntle Manganese Mining Proprietary Limited 44,301,527 -

Other amounts payable to Tshipi é Ntle Manganese Mining Proprietary Limited 40,778 -

NOTE 27: FINANCIAL INSTRUMENTSThe Group’s financial instruments consist mainly of deposits with banks, short-term investments, accounts receivable and payable.

The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows:

Consolidated Group

February 2018 $

February 2017 $

Financial Assets

Cash and cash equivalents 76,544,487 84,709,260

Trade and other receivables 45,863,083 9,956,038

Available-for-sale financial assets 1,043,702 387,294

Other current assets 70,381 26,278,632

123,521,653 121,331,224

Financial Liabilities

Trade and other payables 49,007,737 3,517,007

49,007,737 3,517,007


A N N U A L R E P O R T 2 0 1 8

Financial Risk Management Policies

The Directors monitor the Group’s financial risk management policies and exposures and approves financial transactions.

The Directors’ overall risk management strategy seeks to assist the Group in meeting its financial targets, while minimising potential adverse effects on financial performance. Its functions include the review of credit risk policies and future cash flow requirements.

Specific Financial Risk Exposures and Management

The main risks the Group is exposed to through its financial instruments are credit risk, liquidity risk and market risk consisting of interest rate risk, liquidity risk and equity price risk.

(a)CreditRisk

Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss to the Group.

Credit risk is managed through the maintenance of procedures (such procedures include the utilisation of systems for the approval, granting and renewal of credit limits, regular monitoring of exposures against such limits and monitoring of the financial stability of significant customers and counterparties), ensuring to the extent possible, that customers and counterparties to transactions are of sound credit worthiness. Such monitoring is used in assessing receivables for impairment.

Risk is also minimised through investing surplus funds in financial institutions that maintain a high credit rating, or in entities that the Directors have otherwise cleared as being financially sound.

Credit Risk ExposuresThe maximum exposure to credit risk by class of recognised financial assets at reporting date, excluding the value of any collateral or other security held, is equivalent to the carrying value and classification of those financial assets (net of any provisions) as presented in the statement of financial position. Credit risk also arises through the provision of financial guarantees, as approved at Board level, given to parties securing the liabilities of certain subsidiaries.

Trade and other receivables that are neither past due or impaired are considered to be of high credit quality. Aggregates of such amounts are as detailed in Note 7.

There are no amounts of collateral held as security in respect of trade and other receivables.

The Group does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into by the Consolidated Group.

Credit risk related to balances with banks and other financial institutions is managed by investing cash with major financial institutions in both cash on deposit and term deposit accounts. Interest rates on major deposits that are re-invested are at a fixed rate on a monthly basis.

(b)Liquidityrisk

Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. The Group manages this risk through the following mechanisms:

� preparing forward looking cash flow analysis in relation to its operational, investing and financing activities;

� monitoring undrawn credit facilities;

� obtaining funding from a variety of sources;

� maintaining a reputable credit profile;

� managing credit risk related to financial assets;

� only investing surplus cash with major financial institutions; and comparing the maturity profile of financial liabilities with the realisation profile of financial assets.

The Group has no significant exposure to liquidity risk due to the level of cash and cash equivalents detailed at Note 6. The Group manages liquidity risk by monitoring immediate and forecast cash requirements and ensuring adequate cash reserves are maintained.

NOTE 27: FINANCIAL INSTRUMENTS (CONTINUED)

5 8



The tables below reflect an undiscounted contractual maturity analysis for financial liabilities. Cash flows realised from financial assets reflect management’s expectation as to the timing of realisation. Actual timing may therefore differ from that disclosed. The timing of cash flows presented in the table to settle financial liabilities reflects the earliest contractual settlement dates.

Within 1 Year 1 to 5 Years Over 5 Years Total

2018$

2017$

2018$

2017$

2018$

2017$

2018$

2017$

Consolidated Group

Financial liabilities due for payment

Trade and other payables 49,007,737 3,517,007 - - - - 49,007,737 3,517,007

Total expected outflows 49,007,737 3,517,007 - - - - 49,007,737 3,517,007

Financial assets – cash flows realisable

Cash and cash equivalents 76,544,487 84,709,260 - - - - 76,544,487 84,709,260

Trade and other receivables 45,863,083 9,956,038 - - - - 45,863,083 9,956,038

Assets held or available for sale - - 1,043,702 387,294 - - 1,043,702 387,294

Other current assets 70,381 26,278,632 - - - 70,381 26,278,632

Total anticipated inflows 122,477,951 120,943,930 - - - - 123,521,653 121,331,224

Net (outflow)/inflow on financial instruments 73,470,214 117,426,923 1,043,702 387,294 - - 74,513,916 117,814,217

(c) MarketRisk

Market risk arises from the Groups use of interest bearing and foreign currency financial instruments. It is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in interest rates (interest rate risk), foreign exchange (currency risk) or other market factors (other price risk).

(i) Interest rate riskExposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting period whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments. The financial assets and financial liabilities with exposure to interest rate risk are detailed below:

Consolidated Group

February 2018 $

February 2017 $

Financial Assets

Cash and cash equivalents 76,544,487 84,709,260

Other current assets 70,381 26,278,632

Other non-current assets - -

76,614,868 110,987,891


Short term borrowings - -

Long term borrowings - -

The Group is also exposed to earnings volatility on floating rate instruments



A N N U A L R E P O R T 2 0 1 8

(ii) Foreign exchange risk Jupiter operates internationally and is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the Australian Dollar and South African Rand. Jupiter’s exposure to currency risk is on cash, trade receivables, and borrowings. Foreign currency risk is the risk of exposure to transactions that are denominated in a currency other than the Australian dollar. The carrying amounts of the Group’s financial assets and liabilities are denominated in two different currencies as set out below:

28 February 2018

AUD ZAR EUR USD Total $

Financial Assets 10,833,965 4,168,497 4,225,713 57,316,312 76,544,487

Other Current Assets - - - - -

(iii) Other price riskPrice risk relates to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices largely due to demand and supply factors for commodities. As the Group does not derive revenue from sale of products, the effect on profit and equity as a result of changes in the price risk is not considered material. The fair value of the mining projects will be impacted by commodity price changes (predominantly iron ore, nickel and uranium) and could impact future revenues once operational. However, management monitors current and projected commodity prices.

(iv) Summarised sensitivity analysisThe following table summarises the sensitivity of the Jupiter Group’s financial assets and financial liabilities to interest rate risk and foreign exchange risk.

Management have reviewed interest rate and foreign exchange risk and determined the rates applied to be appropriate.

Interest Rate Risk Foreign Exchange Risk

-50 bps +50 bps -10% +10%

28 February 2018 Carrying Amount $ Profit $ Other

Equity $ Profit $ Other Equity $ Profit $ Other

Equity $ Profit $ Other Equity $

Financial Assets

Cash and cash equivalents 74,544,487 (37,272) - 37,272 - - - - -

Receivables 45,863,083 - - - - (4,586,308) - 4,586,308 -

Available-for-sale financial assets 1,043,702 - - - - - - - -

Other current assets 70,381 - - - - - - - -


Trade and other payables 49,007,737 - - - - 4,900,774 - (4,900,774) -

Total increase/(decrease) (37,272) - 37,272 - 314,466 - (314,466) -


6 0



(v) F

ixed

Inte

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2018 %

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2018 $

2017

$20

18 $

2017

$20

18 $

2017

$20

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2017

$20

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2017

$20

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2017

$

Fina

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ets:

Cash

and

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0.34

0.14

66,3

65,2

7884

,610

,200

10,1

79,2

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,060

--

--

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44,4

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Rece

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--

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9,95

6,03

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8

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387,

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1,04

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7,29

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Trad

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pay

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--

--

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49,0

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Tota

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anci

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s-

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7

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e



A N N U A L R E P O R T 2 0 1 8

(d)NetFairValue

The net fair values of cash and cash equivalents and non-interest bearing monetary financial assets and liabilities approximates their carrying value. The net fair value of financial assets and financial liabilities is based upon market prices where a market exists or by discounting the expected future cash flows by the current interest rates for assets and liabilities with similar risk profiles.

Listed equity investments have been valued by reference to market prices prevailing at reporting date.

February 2018 February 2017

Carrying Amount $

Net Fair Value $

Carrying Amount $

Net Fair Value $

Financial Assets

Cash at bank(i) 76,544,487 76,544,487 84,709,260 84,709,260

Trade and other receivables(i) 45,863,083 45,863,083 9,956,038 9,956,038

Assets available for sale(ii) 1,043,702 1,043,702 387,294 387,294

Other current assets 70,381 70,381 26,278,632 26,278,632

Other non-current assets - - - -

123,521,653 123,521,653 121,331,224 121,331,224


Trade and other payables(i) 49,007,737 49,007,737 3,517,007 3,517,007

The fair values in the above table have been determined based on the following methodology:

(i) Cash and cash equivalents, trade and other receivables and trade and other payables are short-term investments in nature whose carrying value is equivalent to fair value. Trade and other payables exclude amounts provided for annual leave which is not considered a financial instrument.

(ii) For listed available-for-sale financial assets, closing quoted bid prices at the end of the reporting period are used. Unlisted available-for-sale financial assets are recorded at cost.

Financial Instruments Measured at Fair ValueThe financial instruments recognised at fair value in the statement of financial position have been analysed and classified using a fair value hierarchy reflecting the significance of the inputs used in making the measurements. The fair value hierarchy consists of the following levels:

� quoted prices in active markets for identical assets or liabilities (Level 1);

� inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (Level 2); and

� inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).

Group – as at 28 February 2018 Level 1 $

Level 2 $

Level 3 $

Total $

Financial Assets

Assets available for sale 1,043,702 - - 1,043,702

Included in Level 1 of the hierarchy are listed investments. The fair values of these financial assets have been based on the closing quoted bid prices at reporting date, excluding transaction costs.


6 2



NOTE 28: PARENT COMPANY INFORMATION

Consolidated Group

February 2018 $

February 2017 $

ASSETS

Current assets 110,281,625 84,794,394

Non-current assets 347,567,100 267,879,275

Total Assets 457,848,725 352,673,650

LIABILITIES

Current liabilities 47,350,621 240,095

Non-current liabilities 2,581,866 3,537,977

Total Liabilities 49,932,487 3,778,072

NET ASSETS 407,916,238 348,895,578

EQUITY

Contributed equity 433,003,602 526,639,293

Financial assets reserve 836,896 180,488

Accumulated losses (25,924,259) (177,924,203)

TOTAL EQUITY 407,916,238 348,895,578

FINANCIAL PERFORMANCE

Profit for the period 6,062,935 159,441,232

Other comprehensive income 656,408 180,488

TOTAL COMPREHENSIVE INCOME 6,719,343 159,621,720

NOTE 29: COMPANY DETAILSThe registered office and principal place of business of Jupiter is:

Jupiter Mines LimitedLevel 1016 St Georges TerracePerth WA 6000


A N N U A L R E P O R T 2 0 1 8

DIRECTORS’ DECLARATIONThe Directors of Jupiter Mines Limited declare that:

1. the financial statements, notes and the additional disclosures included in the Directors Report designated as audited, of the consolidated entity are in accordance with the Corporations Act 2001 including:

(a) complying with Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; and

(b) give a true and fair view of the financial position as at 28 February 2018 and of the performance for the year ended on that date of the company and consolidated entity;

2. The financial statements and notes also comply with International Financial Reporting Standards as disclosed in Note 1.

3. There are reasonable grounds to believe that Jupiter Mines Limited will be able to pay its debts as and when they become due and payable.

4. This declaration has been made after receiving the declarations required to be made to the Directors in accordance with section 295A of the Corporations Act 2001 for the financial year ended 28 February 2018.

Signed on behalf of the Board of Directors

Brian GilbertsonCape Town

29 May 2018

6 4


Directors’ Declaration

INDEPENDENT AUDITOR’S REPORT

Central Park, Level 43 152-158 St Georges Terrace Perth WA 6000

Correspondence to: PO Box 7757 Cloisters Square Perth WA 6850

T +61 8 9480 2000 F +61 8 9322 7787 E [email protected] W www.grantthornton.com.au

Independent Auditor’s Report to the Members of Jupiter Mines Limited

Report on the audit of the financial report

Opinion We have audited the financial report of Jupiter Mines Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 28 February 2018, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies, and the directors’ declaration.

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:

a Giving a true and fair view of the Group’s financial position as at 28 February 2018 and of its performance for the year ended on that date; and

b Complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

GrantThorntonAuditPtyLtdACN130913594a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation.

6 5Independent Audit Report

A N N U A L R E P O R T 2 0 1 8


Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter How our audit addressed the key audit matter Exploration and Evaluation Expenditure (Note 1(e) and Note 14)

As at 28 February 2018 the Group attributed $8,700,000 to exploration and evaluation expenditure comprising of the Mount Mason ($600,000), and Mount Ida ($8,100 000) projects. The Group is required to assess each areas of interest in accordance with AASB 6 Exploration for and Evaluation of Mineral Resources to ensure the carrying value does not exceed its recoverable amount. The process undertaken by management to assess whether there are any impairment triggers in each area of interest involves an element of management judgement. This is a key audit matter due to the nature of the balance and the judgements required in determining the recoverable amounts, including the judgemental nature of the estimates and assumptions used in the impairment analysis.

Our procedures included, amongst others: • Documenting the processes and internal controls

in respect to accounting for additions and around management’s review and assessment of applicability of impairment indicators;

• Obtaining a schedule of areas of interest held by the Group and assessing the Group’s right to tenure over the exploration licences to which exploration expenditure have been capitalised;

• Considering the application of requirements under AASB 6 Exploration for and Evaluation of Mineral Resources in relation to expenditure capitalised during the period;

• Obtaining management’s assessment of impairment considerations and performing the following: - Critically assessing inputs and assumptions in

management’s analysis; - Evaluating compliance with the requirements

of AASB 6; - Engaging the services of an independent

geologist to evaluate management’s assessment of impairment indicators and compare to fair value based on available market information;

- Assessing the competencies of the expert in accordance with ASA 500 as a management’s expert;

- Assessing the competencies of the expert in accordance with ASA 620 Using the work of an Auditors Expert;

- Evaluating the sufficiency of the impairment charge; and

• Assessing the adequacy of related disclosures in Note 1(e) and Note 14.

6 6


Independent Audit Report


Investments accounted for using the equity method (Note 1(b) and Note 15)

The Group has an investment of $385,267,255 in an unlisted equity investment which has been included the Group’s Consolidated Statement of Financial Position as at 28 February 2018. The Group recognises this investment as a joint venture using the equity method in accordance with AASB 128: Investment in Associates and Joint Ventures. Management assesses the value of this investment annually by engaging an independent expert to consider various valuation techniques such as a discounted cash flow model and comparable sale transactions. This is considered a key audit matter due to the significant judgement involvement in assessing the valuation of the investment.

Our procedures included, amongst others: • Considering the appropriateness of the method

applied by the Group to perform the valuation of the investment utilising the equity method in accordance with the requirements of the accounting standards.

• Procedures included obtaining the key valuation inputs, including the long term manganese price, ore reserves and discount rates and performing the following:

o Critically assessing the inputs and assumptions;

o Engaging the services of an independent geologist to evaluate the assessment made by the management expert;

o Engaging the services of a specialist to evaluate the weight average cost of capital relevant to the South African market;

o Assessing the competencies of the expert in accordance with ASA 500 as a managements expert;

o Assessing the competencies of the experts in accordance with ASA 620 Using the work of an Auditors Expert; and

• Assessing the adequacy of related disclosures in

Note 1(b) and Note 15.


A N N U A L R E P O R T 2 0 1 8


Marketing Fee and Trade Receivables (Note 1(m), Note 1(l), Note 2 and Note 7)

The Group’s marketing fee income of $10,048,724 is the only revenue being earnt directly by the Group and related receivable of $45,679,877 as at 28 February 2018. The Group's marketing branch earns a marketing fee on an agency basis from the sale and export of Jupiter’s share of the manganese ore. The selling price is determined on a provisional basis at the date of sale. Adjustments to the sale price may occur based on variances in the metal or moisture content of the ore up to the date of final pricing. The period between provisional invoicing and final pricing may range between two and three months. Accordingly, the fair value of the original revenue and associated receivable is adjusted each reporting period by reference to the best estimate of the actual metal and moisture content by management. The changes in fair value are recorded as an adjustment to marketing income. This area is a key audit matter due to revenue being recognised based on management’s estimates.

Our audit procedures to address the matter included, amongst others:

• Considering the assessment of management’s position paper pursuant to the agency agreement and the associated accounting impact;

• Documenting the processes and internal controls in respect of accounting for revenue and other income;

• Obtaining a schedule of the marketing fee and selecting a sample for testing by agreeing the inputs to supporting documentation including bill of lading documentation, quality certificates containing weight, moisture and Manganese content and the contract price;

• Recalculating the marketing fee; • Selecting sales at or near year end to

determine if the revenue recognition has been recorded in the correct period;

• Tracing a sample of outstanding receivables at 28 February 2018 to payments received after yearend. Where any balances remained unpaid, we considered whether they were recoverable by examining the ageing of these items and assessing historic payment terms; and

• Reviewing in detail the changes in presentation and associated note disclosures in the financial statements and assessing that they are in accordance with the applicable Accounting Standards.

Information Other than the Financial Report and Auditor’s Report Thereon The Directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 28 February 2018, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors’ for the Financial Report The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

6 8


Independent Audit Report


In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our auditor’s report. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 16 to 21 of the directors’ report for the year ended 28 February 2018. In our opinion, the Remuneration Report of Jupiter Mines Limited, for the year ended 28 February 2018, complies with section 300A of the Corporations Act 2001. Responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. GRANT THORNTON AUDIT PTY LTD Chartered Accountants M J Hillgrove Partner – Audit & Assurance Perth, 30 May 2018


A N N U A L R E P O R T 2 0 1 8

ADDITIONAL INFORMATION FOR LISTED COMPANIESAdditional information required by the ASX listing rules and not disclosed elsewhere in this report is set out below. The information is effective as at 29 May 2018.

Substantial shareholders

Name Number of fully paid ordinary shares % holding

Stichting Pensioenfonds ABP (and its associate Pallinghurst EMG African Queen L.P.) 289,075,945 14.84%

Investec Bank Limited 261,154,529 13.40%

Pallinghurst Steel Feed (Dutch) B.V. 145,845,375 7.49%

POSCO Australia GP Pty Ltd (and its associate POSCO Australia Pty Ltd) 134,992,472 6.93%

HJM Jupiter L.P. 98,263,429 5.04%

Voting rights

Ordinary Shares: On a show of hands, every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

Distribution of equity security holders

Holding Number of shareholders

Number of shares % of capital

1 – 1,000 97 29,390 0.00%

1,001 – 5,000 488 1,514,557 0.08%

5,001 – 10,000 428 3,586,878 0.18%

10,001 – 100,000 1,182 44,193,071 2.27%

100,001 and over 350 1,899,016,607 97.47%

2,545 1,948,340,503 100%

Shareholders with less than a marketable parcel

As at 29 May 2018, there were 140 shareholders on the register holding less than a marketable parcel ($500) based on the closing market price of $0.345.

Securities subject to voluntary escrow

Escrowed shareholder Number of shares escrowed

Pallinghurst Steel Feed (Dutch) B.V. 145,845,372

POSCO Australia GP Pty Ltd 112,044,320

HJM Jupiter L.P. 98,263,429

FRK Jupiter L.P. 93,406,454

EMG Jupiter L.P. 85,446,062

POSCO Australia Pty Ltd 22,948,152

Priyank Thapliyal 21,129,387

Red Rock Resources plc 18,524,914

Total 597,608,090

7 0


Additional Information for ASX Listed Companies

The Voluntary Escrow Deeds entered into by the Escrowed Shareholders prevent any sale of Shares as follows:

(a) for 50% of the Escrowed Shares, until the date that the Company releases to ASX its audited financial statements for the financial year ending 28 February 2019; and

(b) for the remaining 50% of the Escrowed Shares (the “Escrow Release Condition”):

(i) if the following occurs:

(A) the Company releases to ASX its reviewed financial statements for the half financial year ending 31 August 2018; and

(B) the VWAP of Shares traded on ASX for any 20 consecutive trading days is 20% or more above the IPO Offer Price following release to ASX of the Company’s reviewed financial statements for the half financial year ending 31 August 2018,

until the date that the Escrow Release Condition is satisfied; and

(ii) if the Escrow Release Condition is not satisfied, until the date that the Company announces to ASX its reviewed financial statements for the half financial year ending 31 August 2019.

However, these restrictions do not apply to the sale, transfer, disposal or cancellation (as applicable) of the relevant Escrowed Shares in the following circumstances:

(a) where an Escrowed Shareholder accepts an offer under a takeover bid (as defined in the Corporations Act) in relation to their Shares, provided holders of not less than 50% of the Shares not subject to restrictions then on issue have accepted the takeover bid;

(b) where the Shares of an Escrowed Shareholder are to be transferred or cancelled as part of a merger by way of a scheme of arrangement under Part 5.1 of the Corporations Act; or

(c) where an Escrowed Shareholder elects to dispose of any Escrowed Shares pursuant to a buy-back of Shares or a reduction of capital conducted by the Company.

The Voluntary Escrow Deeds in any event terminate no later than 2 years after the date they were entered into.

The undertakings given by the Escrowed Shareholders under the Voluntary Escrow Deeds may give the Company a “relevant interest” in the Escrowed Shares for the purposes of the Corporations Act. However, the Company has obtained relief from ASIC so that the takeovers provisions of the Corporations Act will not apply to these relevant interests.

Twenty largest shareholders

Shareholder Number of shares held

Percentage (%) of issued shares

1 Investec Bank Limited 261,154,529 13.40%2 Stichting Pensioenfonds ABP 252,648,636 12.97%3 HSBC Custody Nominees (Australia) Limited 157,974,221 8.11%4 Pallinghurst Steel Feed (Dutch) B.V. 145,845,372 7.49%5 POSCO Australia GP Pty Ltd 112,044,320 5.75%6 HJM Jupiter L.P. 98,263,429 5.04%7 FRK Jupiter L.P. 93,406,454 4.79%8 EMG Jupiter L.P. 85,446,062 4.39%9 JP Morgan Nominees Australia Limited 73,434,605 3.77%10 National Nominees Limited 57,354,287 2.94%11 Citicorp Nominees Pty Limited 50,439,341 2.59%12 BNP Paribas Noms Pty Ltd 48,890,683 2.51%13 Pallinghurst EMG African Queen L.P. 36,427,309 1.87%14 Morgan Stanley Australia Securities (Nominee) Pty Limited 30,936,770 1.59%15 UBS Nominees Pty Ltd 29,835,500 1.53%16 BNP Paribas Nominees Pty Ltd 23,328,218 1.20%17 Priyank Thapliyal 23,289,387 1.20%18 POSCO Australia Pty Ltd 22,948,152 1.18%19 HSBC Custody Nominees (Australia) Limited – A/C 2 21,565,549 1.11%20 Red Rock Resources plc 18,524,914 0.95%

TOTAL 1,643,757,738 84.38%

Unissued equity securitiesThere are no unissued equity securities.

Securities exchangeThe Company is listed on the Australian Securities Exchange.

7 1Additional Information for ASX Listed Companies

A N N U A L R E P O R T 2 0 1 8

APPENDICES: JORC TABLESTSHIPI BORWA JORC TABLE 1

ii

© M

iner

al C

orpo

ratio

n Co

nsul

tanc

y (P

ty)

Ltd

Repo

rt N

o. C

-TM

M-J

UP-

1786

- 1

079,

Apr

il 20

18

Com

pete

nt P

erso

ns R

epor

t on

Tshi

pi é

Ntle

Man

gane

se M

inin

g (P

ty)

Lim

ited‟

s Ts

hipi

Bor

wa

Min

e

Sect

ion

1: S

ampl

ing

Tech

niqu

es a

nd D

ata

Sect

ion

in C

PR

Crite

ria

JOR

C Co

de e

xpla

natio

n Co

mm

enta

ry

Sam

plin

g te

chni

ques

Nat

ure

and

qual

ity o

f sa

mpl

ing

(eg

cut

chan

nels

, ran

dom

chi

ps, o

r sp

ecifi

c sp

ecia

lised

indu

stry

sta

ndar

d m

easu

rem

ent

tool

s ap

prop

riate

to

the

min

eral

s un

der

inve

stig

atio

n, s

uch

as d

own

hole

gam

ma

sond

es, o

r ha

ndhe

ld X

RF

inst

rum

ents

, etc

). T

hese

exa

mpl

es s

houl

d no

t be

tak

en a

s lim

iting

the

bro

ad m

eani

ng o

f sa

mpl

ing.

In

clud

e re

fere

nce

to m

easu

res

take

n to

ens

ure

sam

ple

repr

esen

tivity

and

the

app

ropr

iate

cal

ibra

tion

of a

ny

mea

sure

men

t to

ols

or s

yste

ms

used

. As

pect

s of

the

det

erm

inat

ion

of m

iner

alis

atio

n th

at a

re M

ater

ial t

o th

e Pu

blic

Rep

ort.

In

cas

es w

here

„ind

ustr

y st

anda

rd‟ w

ork

has

been

don

e th

is w

ould

be

rela

tivel

y si

mpl

e (e

g „re

vers

e ci

rcul

atio

n dr

illin

g w

as u

sed

to o

btai

n 1

m s

ampl

es f

rom

whi

ch 3

kg

was

pul

veris

ed t

o pr

oduc

e a

30 g

cha

rge

for

fire

assa

y‟).

In

othe

r ca

ses

mor

e ex

plan

atio

n m

ay b

e re

quire

d, s

uch

as w

here

the

re is

coa

rse

gold

tha

t ha

s in

here

nt s

ampl

ing

prob

lem

s.

Unu

sual

com

mod

ities

or

min

eral

isat

ion

type

s (e

g su

bmar

ine

nodu

les)

may

war

rant

dis

clos

ure

of d

etai

led

info

rmat

ion.

Sect

ion

6.3

Sect

ion

6.4

Dril

ling

tech

niqu

es

Dril

l typ

e (e

g co

re, r

ever

se c

ircul

atio

n, o

pen-

hole

ham

mer

, rot

ary

air

blas

t, a

uger

, Ban

gka,

son

ic, e

tc)

and

deta

ils (

eg

core

dia

met

er, t

riple

or

stan

dard

tub

e, d

epth

of di

amon

d ta

ils, f

ace-

sam

plin

g bi

t or

oth

er t

ype,

whe

ther

cor

e is

or

ient

ed a

nd if

so,

by

wha

t m

etho

d, e

tc).

Se

ctio

n 6.

2

Dril

l sam

ple

reco

very

Met

hod

of r

ecor

ding

and

ass

essi

ng c

ore

and

chip

sam

ple

reco

verie

s an

d re

sults

ass

esse

d.

Mea

sure

s ta

ken

to m

axim

ise

sam

ple

reco

very

and

ens

ure

repr

esen

tativ

e na

ture

of th

e sa

mpl

es.

Whe

ther

a r

elat

ions

hip

exis

ts b

etw

een

sam

ple

reco

very

and

gra

de a

nd w

heth

er s

ampl

e bi

as m

ay h

ave

occu

rred

due

to

pref

eren

tial l

oss/

gain

of fin

e/co

arse

mat

eria

l.

Sect

ion

6.2.

1.4

Logg

ing

Whe

ther

cor

e an

d ch

ip s

ampl

es h

ave

been

geo

logi

cally

and

geo

tech

nica

lly lo

gged

to

a le

vel o

f de

tail

to s

uppo

rt

appr

opria

te M

iner

al R

esou

rce

estim

atio

n, m

inin

g st

udie

s an

d m

etal

lurg

ical

stu

dies

. W

heth

er lo

ggin

g is

qua

litat

ive

or q

uant

itativ

e in

nat

ure.

Cor

e (o

r co

stea

n, c

hann

el, e

tc)

phot

ogra

phy.

Th

e to

tal l

engt

h an

d pe

rcen

tage

of

the

rele

vant

inte

rsec

tions

logg

ed.

Sect

ion

6.2.

1.3

Sub-

sam

plin

g te

chni

ques

and

sa

mpl

e pr

epar

atio

n

If c

ore,

whe

ther

cut

or

saw

n an

d w

heth

er q

uart

er, h

alf or

all

core

tak

en.

If n

on-c

ore,

whe

ther

riff

led,

tub

e sa

mpl

ed, r

otar

y sp

lit, e

tc a

nd w

heth

er s

ampl

ed w

et o

r dr

y.

For

all s

ampl

e ty

pes,

the

nat

ure,

qua

lity

and

appr

opria

tene

ss o

f th

e sa

mpl

e pr

epar

atio

n te

chni

que.

Q

ualit

y co

ntro

l pro

cedu

res

adop

ted

for

all s

ub-s

ampl

ing

stag

es t

o m

axim

ise

repr

esen

tivity

of sa

mpl

es.

Mea

sure

s ta

ken

to e

nsur

e th

at t

he s

ampl

ing

is r

epre

sent

ativ

e of

the

in s

itu m

ater

ial c

olle

cted

, inc

ludi

ng f

or in

stan

ce

resu

lts f

or fi

eld

dupl

icat

e/se

cond

-hal

f sa

mpl

ing.

W

heth

er s

ampl

e si

zes

are

appr

opria

te t

o th

e gr

ain

size

of th

e m

ater

ial b

eing

sam

pled

.

Sect

ion

6.3

Sect

ion

6.4

Qua

lity

of a

ssay

dat

a an

d la

bora

tory

tes

ts

The

natu

re, q

ualit

y an

d ap

prop

riate

ness

of th

e as

sayi

ng a

nd la

bora

tory

pro

cedu

res

used

and

whe

ther

the

tec

hniq

ue is

co

nsid

ered

par

tial o

r to

tal.

For

geop

hysi

cal t

ools

, spe

ctro

met

ers,

han

dhel

d XR

F in

stru

men

ts, e

tc, t

he p

aram

eter

s us

ed in

det

erm

inin

g th

e an

alys

is

incl

udin

g in

stru

men

t m

ake

and

mod

el, r

eadi

ng t

imes

, cal

ibra

tions

fac

tors

app

lied

and

thei

r de

rivat

ion,

etc

. N

atur

e of

qua

lity

cont

rol p

roce

dure

s ad

opte

d (e

g st

anda

rds,

bla

nks,

dup

licat

es, e

xter

nal l

abor

ator

y ch

ecks

) an

d w

heth

er a

ccep

tabl

e le

vels

of ac

cura

cy (

ie la

ck o

f bi

as)

and

prec

isio

n ha

ve b

een

esta

blis

hed.

Sect

ion

6.4

Sect

ion

6.5

Verif

icat

ion

of s

ampl

ing

and

assa

ying

The

verif

icat

ion

of s

igni

fican

t in

ters

ectio

ns b

y ei

ther

inde

pend

ent

or a

ltern

ativ

e co

mpa

ny p

erso

nnel

. Th

e us

e of

tw

inne

d ho

les.

D

ocum

enta

tion

of p

rimar

y da

ta, d

ata

entr

y pr

oced

ures

, dat

a ve

rific

atio

n, d

ata

stor

age

(phy

sica

l and

ele

ctro

nic)

pr

otoc

ols.

D

iscu

ss a

ny a

djus

tmen

t to

ass

ay d

ata.

Sect

ion

6.7

7 2


Appendices: JORC Tables

iii

© M

iner

al C

orpo

ratio

n Co

nsul

tanc

y (P

ty)

Ltd

Repo

rt N

o. C

-TM

M-J

UP-

1786

- 1

079,

Apr

il 20

18

Com

pete

nt P

erso

ns R

epor

t on

Tshi

pi é

Ntle

Man

gane

se M

inin

g (P

ty)

Lim

ited‟

s Ts

hipi

Bor

wa

Min

e

Sect

ion

1: S

ampl

ing

Tech

niqu

es a

nd D

ata

Sect

ion

in C

PR

Crite

ria

JORC

Code

exp

lana

tion

Com

men

tary

Loca

tion

of d

ata

poin

ts

Accu

racy

and

qua

lity

of s

urve

ys u

sed

to lo

cate

dril

l hol

es (

colla

r an

d do

wn-

hole

sur

veys

), t

renc

hes,

min

e w

orki

ngs

and

othe

r lo

catio

ns u

sed

in M

iner

al R

esou

rce

estim

atio

n.

Spec

ifica

tion

of t

he g

rid s

yste

m u

sed.

Q

ualit

y an

d ad

equa

cy o

f to

pogr

aphi

c co

ntro

l.

Sect

ion

6.2.

1.2

Sect

ion

7.2.

1

Dat

a sp

acin

g an

d di

strib

utio

n

Dat

a sp

acin

g fo

r re

port

ing

of E

xplo

ratio

n Res

ults

. W

heth

er t

he d

ata

spac

ing

and

dist

ribut

ion

is s

uffic

ient

to

esta

blis

h th

e de

gree

of ge

olog

ical

and

gra

de c

ontin

uity

ap

prop

riate

for

the

Min

eral

Res

ourc

e an

d O

re R

eser

ve e

stim

atio

n pr

oced

ure(

s) a

nd c

lass

ifica

tions

app

lied.

W

heth

er s

ampl

e co

mpo

sitin

g ha

s be

en a

pplie

d.

Sect

ion

6.2.

1.5

Sect

ion

7.2.

5

Orie

ntat

ion

of d

ata

in r

elat

ion

to g

eolo

gica

l str

uctu

re

Whe

ther

the

orie

ntat

ion

of s

ampl

ing

achi

eves

unb

iase

d sa

mpl

ing

of p

ossi

ble

stru

ctur

es a

nd t

he e

xten

t to

whi

ch t

his

is

know

n, c

onsi

derin

g th

e de

posi

t ty

pe.

If t

he r

elat

ions

hip

betw

een

the

drill

ing

orie

ntat

ion

and

the

orie

ntat

ion

of k

ey m

iner

alis

ed s

truc

ture

s is

con

side

red

to

have

intr

oduc

ed a

sam

plin

g bi

as, t

his

shou

ld b

e as

sess

ed a

nd r

epor

ted

if m

ater

ial.

Sect

ion

6.2.

1.1

Sect

ion

6.2.

1.2

Sam

ple

secu

rity

The

mea

sure

s ta

ken

to e

nsur

e sa

mpl

e se

curit

y.

Sect

ion

6.3.

1.2

and

Sect

ion

6.7

Audi

ts o

r re

view

s Th

e re

sults

of an

y au

dits

or

revi

ews

of s

ampl

ing

tech

niqu

es a

nd d

ata.

Se

ctio

n 25

Sect

ion

2: R

epor

ting

of E

xplo

ratio

n Res

ults

Se

ctio

n in

CPR

Crite

ria

JORC

Code

exp

lana

tion

Com

men

tary

Min

eral

ten

emen

t an

d la

nd

tenu

re s

tatu

s

Type

, ref

eren

ce n

ame/

num

ber,

loca

tion

and

owne

rshi

p in

clud

ing

agre

emen

ts o

r m

ater

ial i

ssue

s w

ith t

hird

par

ties

such

as

join

t ve

ntur

es, p

artn

ersh

ips,

ove

rrid

ing

roya

lties

, nat

ive

title

inte

rest

s, h

isto

rical

site

s, w

ilder

ness

or

natio

nal p

ark

and

envi

ronm

enta

l set

tings

. Th

e se

curit

y of

the

ten

ure

held

at

the

time

of r

epor

ting

alon

g w

ith a

ny k

now

n im

pedi

men

ts t

o ob

tain

ing

a lic

ence

to

oper

ate

in t

he a

rea.

Sect

ion

1.9

Sect

ion

2 Se

ctio

n 3.

1 Se

ctio

n 3.

2 Se

ctio

n 4.

1 Se

ctio

n 4.

3 Se

ctio

n 17

.1

Expl

orat

ion

done

by

othe

r pa

rtie

s Ac

know

ledg

men

t an

d ap

prai

sal o

f ex

plor

atio

n by

oth

er p

artie

s.

Sect

ion

6.1

Sect

ion

6.2

Geo

logy

D

epos

it ty

pe, g

eolo

gica

l set

ting

and

styl

e of

min

eral

isat

ion.

Se

ctio

ns 5

Dril

l hol

e In

form

atio

n

A su

mm

ary

of a

ll in

form

atio

n m

ater

ial t

o th

e un

ders

tand

ing

of t

he e

xplo

ratio

n re

sults

incl

udin

g a

tabu

latio

n of

the

fo

llow

ing

info

rmat

ion

for

all M

ater

ial d

rill h

oles

:

east

ing

and

nort

hing

of th

e dr

ill h

ole

colla

r

elev

atio

n or

RL

(Red

uced

Lev

el –

ele

vatio

n ab

ove

sea

leve

l in

met

res)

of th

e dr

ill h

ole

colla

r

dip

and

azim

uth

of t

he h

ole

do

wn

hole

leng

th a

nd in

terc

eptio

n de

pth

ho

le le

ngth

. If

the

exc

lusi

on o

f th

is in

form

atio

n is

just

ified

on

the

basi

s th

at t

he in

form

atio

n is

not

Mat

eria

l and

thi

s ex

clus

ion

does

no

t de

trac

t fr

om t

he u

nder

stan

ding

of th

e re

port

, the

Com

pete

nt P

erso

n sh

ould

cle

arly

exp

lain

why

thi

s is

the

cas

e.

Sect

ions

6

Sect

ions

6.1

Se

ctio

ns 6

.2

Sect

ions

7.2

.4

The

loca

tion

of d

rillh

oles

is a

dequ

atel

y de

scrib

ed

on p

lans

TSHIPI BORWA JORC TABLE 1 (CONTINUED)

7 3

A N N U A L R E P O R T 2 0 1 8


iv

© M

iner

al C

orpo

ratio

n Co

nsul

tanc

y (P

ty)

Ltd

Repo

rt N

o. C

-TM

M-J

UP-

1786

- 1

079,

Apr

il 20

18

Com

pete

nt P

erso

ns R

epor

t on

Tshi

pi é

Ntle

Man

gane

se M

inin

g (P

ty)

Lim

ited‟

s Ts

hipi

Bor

wa

Min

e

Sect

ion

2: R

epor

ting

of E

xplo

ratio

n Res

ults

Se

ctio

n in

CPR

Crite

ria

JORC

Code

exp

lana

tion

Com

men

tary

Dat

a ag

greg

atio

n m

etho

ds

In r

epor

ting

Expl

orat

ion

Res

ults

, wei

ghtin

g av

erag

ing

tech

niqu

es, m

axim

um a

nd/o

r m

inim

um g

rade

tru

ncat

ions

(eg

cu

ttin

g of

hig

h gr

ades

) an

d cu

t-of

f gr

ades

are

usu

ally

Mat

eria

l and

sho

uld

be s

tate

d.

Whe

re a

ggre

gate

inte

rcep

ts in

corp

orat

e sh

ort

leng

ths

of h

igh

grad

e re

sults

and

long

er le

ngth

s of

low

gra

de r

esul

ts,

the

proc

edur

e us

ed fo

r su

ch a

ggre

gatio

n sh

ould

be

stat

ed a

nd s

ome

typi

cal e

xam

ples

of su

ch a

ggre

gatio

ns s

houl

d be

sh

own

in d

etai

l. Th

e as

sum

ptio

ns u

sed

for

any

repo

rtin

g of

met

al e

quiv

alen

t va

lues

sho

uld

be c

lear

ly s

tate

d.

Sect

ion

7.2.

2 Se

ctio

n 7.

2.5

Sect

ion

7.2.

6 N

ot a

pplic

able

Rel

atio

nshi

p be

twee

n m

iner

alis

atio

n w

idth

s an

d in

terc

ept

leng

ths

Thes

e re

latio

nshi

ps a

re p

artic

ular

ly im

port

ant

in t

he r

epor

ting

of E

xplo

ratio

n Res

ults

. If

the

geo

met

ry o

f th

e m

iner

alis

atio

n w

ith r

espe

ct t

o th

e dr

ill h

ole

angl

e is

kno

wn,

its

natu

re s

houl

d be

rep

orte

d.

If it

is n

ot k

now

n an

d on

ly t

he d

own

hole

leng

ths

are

repo

rted

, the

re s

houl

d be

a c

lear

sta

tem

ent

to t

his

effe

ct (

eg

„dow

n ho

le le

ngth

, tru

e w

idth

not

kno

wn‟

).

Sect

ion

7.2.

5 Se

ctio

n 7.

2.7

Sect

ion

7.2.

10

Dia

gram

s Ap

prop

riate

map

s an

d se

ctio

ns (

with

sca

les)

and

tab

ulat

ions

of in

terc

epts

sho

uld

be in

clud

ed for

any

sig

nific

ant

disc

over

y be

ing

repo

rted

. The

se s

houl

d in

clud

e, b

ut n

ot b

e lim

ited

to a

pla

n vi

ew o

f dr

ill h

ole

colla

r lo

catio

ns a

nd

appr

opria

te s

ectio

nal v

iew

s.

Sect

ion

7.2.

3 Se

ctio

n 7.

2.10

Se

ctio

n 7.

2.11

Se

ctio

n 7.

3 Se

ctio

n 7.

6.4

Bala

nced

rep

ortin

g W

here

com

preh

ensi

ve r

epor

ting

of a

ll Ex

plor

atio

n Res

ults

is n

ot p

ract

icab

le, r

epre

sent

ativ

e re

port

ing

of b

oth

low

and

hi

gh g

rade

s an

d/or

wid

ths

shou

ld b

e pr

actic

ed t

o av

oid

mis

lead

ing

repo

rtin

g of

Exp

lora

tion

Res

ults

. N

ot a

pplic

able

; in

divi

dual

inte

rsec

tions

are

not

re

port

ed

Oth

er s

ubst

antiv

e ex

plor

atio

n da

ta

Oth

er e

xplo

ratio

n da

ta, i

f m

eani

ngfu

l and

mat

eria

l, sh

ould

be

repo

rted

incl

udin

g (b

ut n

ot li

mite

d to

): g

eolo

gica

l ob

serv

atio

ns;

geop

hysi

cal s

urve

y re

sults

; ge

oche

mic

al s

urve

y re

sults

; bu

lk s

ampl

es –

siz

e an

d m

etho

d of

tre

atm

ent;

m

etal

lurg

ical

tes

t re

sults

; bu

lk d

ensi

ty, g

roun

dwat

er, g

eote

chni

cal a

nd r

ock

char

acte

ristic

s; p

oten

tial d

elet

erio

us o

r co

ntam

inat

ing

subs

tanc

es.

Oth

er e

xplo

ratio

n da

ta is

not

mat

eria

l Th

e re

sults

of m

etal

lurg

ical

tes

twor

k is

no

long

er

rele

vant

giv

en t

he o

pera

ting

hist

ory

Furt

her

wor

k

The

natu

re a

nd s

cale

of pl

anne

d fu

rthe

r w

ork

(eg

test

s fo

r la

tera

l ext

ensi

ons

or d

epth

ext

ensi

ons

or la

rge-

scal

e st

ep-

out

drill

ing)

. D

iagr

ams

clea

rly h

ighl

ight

ing

the

area

s of

pos

sibl

e ex

tens

ions

, inc

ludi

ng t

he m

ain

geol

ogic

al in

terp

reta

tions

and

fut

ure

drill

ing

area

s, p

rovi

ded

this

info

rmat

ion

is n

ot c

omm

erci

ally

sen

sitiv

e.

Sect

ion

6.8

The

CP is

not

aw

are

of a

ny m

ater

ial i

nfor

mat

ion

that

has

not

bee

n di

vulg

ed in

thi

s re

port

Sect

ion

3: E

stim

atio

n an

d R

epor

ting

of M

iner

al R

esou

rces

Se

ctio

n in

CPR

Crite

ria

JORC

Code

exp

lana

tion

Com

men

tary

Dat

abas

e in

tegr

ity

Mea

sure

s ta

ken

to e

nsur

e th

at d

ata

has

not

been

cor

rupt

ed b

y, f

or e

xam

ple,

tra

nscr

iptio

n or

key

ing

erro

rs, b

etw

een

its in

itial

col

lect

ion

and

its u

se fo

r M

iner

al R

esou

rce

estim

atio

n pu

rpos

es.

Dat

a va

lidat

ion

proc

edur

es u

sed.

Se

ctio

n 6.

7

Site

vis

its

Com

men

t on

any

site

vis

its u

nder

take

n by

the

Com

pete

nt P

erso

n an

d th

e ou

tcom

e of

tho

se v

isits

. If

no

site

vis

its h

ave

been

und

erta

ken

indi

cate

why

thi

s is

the

cas

e.

Sect

ion

1.2

Sect

ion

6.5

and

Sect

ion

6.7

Sect

ion

8.6

Sect

ion

9.6

Sect

ion

12.7

Se

ctio

n 19

.5


7 4



v

© M

iner

al C

orpo

ratio

n Co

nsul

tanc

y (P

ty)

Ltd

Repo

rt N

o. C

-TM

M-J

UP-

1786

- 1

079,

Apr

il 20

18

Com

pete

nt P

erso

ns R

epor

t on

Tshi

pi é

Ntle

Man

gane

se M

inin

g (P

ty)

Lim

ited‟

s Ts

hipi

Bor

wa

Min

e

Sect

ion

3: E

stim

atio

n an

d R

epor

ting

of M

iner

al R

esou

rces

Se

ctio

n in

CPR

Crite

ria

JORC

Code

exp

lana

tion

Com

men

tary

Geo

logi

cal i

nter

pret

atio

n

Conf

iden

ce in

(or

con

vers

ely,

the

unc

erta

inty

of )

the

geol

ogic

al in

terp

reta

tion

of t

he m

iner

al d

epos

it.

Nat

ure

of t

he d

ata

used

and

of an

y as

sum

ptio

ns m

ade.

Th

e ef

fect

, if an

y, o

f al

tern

ativ

e in

terp

reta

tions

on

Min

eral

Res

ourc

e es

timat

ion.

Th

e us

e of

geo

logy

in g

uidi

ng a

nd c

ontr

ollin

g M

iner

al R

esou

rce

estim

atio

n.

The

fact

ors

affe

ctin

g co

ntin

uity

bot

h of

gra

de a

nd g

eolo

gy.

Sect

ion

7.1

Sect

ion

7.2.

2 Se

ctio

n 7.

2.3

Dim

ensi

ons

The

exte

nt a

nd v

aria

bilit

y of

the

Min

eral

Res

ourc

e ex

pres

sed

as le

ngth

(al

ong

strik

e or

oth

erw

ise)

, pla

n w

idth

, and

de

pth

belo

w s

urfa

ce t

o th

e up

per

and

low

er li

mits

of th

e M

iner

al R

esou

rce.

Se

ctio

n 7.

2.3

Estim

atio

n an

d m

odel

ling

tech

niqu

es

The

natu

re a

nd a

ppro

pria

tene

ss o

f th

e es

timat

ion

tech

niqu

e(s)

app

lied

and

key

assu

mpt

ions

, inc

ludi

ng t

reat

men

t of

ex

trem

e gr

ade

valu

es, d

omai

ning

, int

erpo

latio

n pa

ram

eter

s an

d m

axim

um d

ista

nce

of e

xtra

pola

tion

from

dat

a po

ints

. If

a c

ompu

ter

assi

sted

est

imat

ion

met

hod

was

cho

sen

incl

ude

a de

scrip

tion

of c

ompu

ter

soft

war

e an

d pa

ram

eter

s us

ed.

The

avai

labi

lity

of c

heck

est

imat

es, p

revi

ous

estim

ates

and

/or

min

e pr

oduc

tion

reco

rds

and

whe

ther

the

Min

eral

Res

ourc

e es

timat

e ta

kes

appr

opria

te a

ccou

nt o

f su

ch d

ata.

Th

e as

sum

ptio

ns m

ade

rega

rdin

g re

cove

ry o

f by

-pro

duct

s.

Estim

atio

n of

del

eter

ious

ele

men

ts o

r ot

her

non-

grad

e va

riabl

es o

f ec

onom

ic s

igni

fican

ce (

eg s

ulph

ur fo

r ac

id m

ine

drai

nage

cha

ract

eris

atio

n).

In t

he c

ase

of b

lock

mod

el in

terp

olat

ion,

the

blo

ck s

ize

in r

elat

ion

to t

he a

vera

ge s

ampl

e sp

acin

g an

d th

e se

arch

em

ploy

ed.

Any

assu

mpt

ions

beh

ind

mod

ellin

g of

sel

ectiv

e m

inin

g un

its.

Any

assu

mpt

ions

abo

ut c

orre

latio

n be

twee

n va

riabl

es.

Des

crip

tion

of h

ow t

he g

eolo

gica

l int

erpr

etat

ion

was

use

d to

con

trol

the

res

ourc

e es

timat

es.

Dis

cuss

ion

of b

asis

for

usi

ng o

r no

t us

ing

grad

e cu

ttin

g or

cap

ping

. Th

e pr

oces

s of

val

idat

ion,

the

che

ckin

g pr

oces

s us

ed, t

he c

ompa

rison

of m

odel

dat

a to

dril

l hol

e da

ta, a

nd u

se o

f re

conc

iliat

ion

data

if a

vaila

ble.

Sect

ion

7.2

Sect

ion

7.3

Sect

ion

7.4

Sect

ion

7.5

Sect

ion

7.6

Sect

ion

7.7

Sect

ion

7.8

Sect

ion

7.9

Sect

ion

7.10

Se

ctio

n 7.

11

Moi

stur

e W

heth

er t

he t

onna

ges

are

estim

ated

on

a dr

y ba

sis

or w

ith n

atur

al m

oist

ure,

and

the

met

hod

of d

eter

min

atio

n of

the

m

oist

ure

cont

ent.

N

ot a

pplic

able

Cut-

off pa

ram

eter

s Th

e ba

sis

of t

he a

dopt

ed c

ut-o

ff g

rade

(s)

or q

ualit

y pa

ram

eter

s ap

plie

d.

Sect

ion

7.2.

2

Min

ing

fact

ors

or a

ssum

ptio

ns

Assu

mpt

ions

mad

e re

gard

ing

poss

ible

min

ing

met

hods

, min

imum

min

ing

dim

ensi

ons

and

inte

rnal

(or

, if ap

plic

able

, ex

tern

al)

min

ing

dilu

tion.

It

is a

lway

s ne

cess

ary

as p

art

of t

he p

roce

ss o

f de

term

inin

g re

ason

able

pro

spec

ts f

or

even

tual

eco

nom

ic e

xtra

ctio

n to

con

side

r po

tent

ial m

inin

g m

etho

ds, b

ut t

he a

ssum

ptio

ns m

ade

rega

rdin

g m

inin

g m

etho

ds a

nd p

aram

eter

s w

hen

estim

atin

g M

iner

al R

esou

rces

may

not

alw

ays

be r

igor

ous.

Whe

re t

his

is t

he c

ase,

thi

s sh

ould

be

repo

rted

with

an

expl

anat

ion

of t

he b

asis

of th

e m

inin

g as

sum

ptio

ns m

ade.

Sect

ions

7.4

.1

Met

allu

rgic

al f

acto

rs o

r as

sum

ptio

ns

The

basi

s fo

r as

sum

ptio

ns o

r pr

edic

tions

reg

ardi

ng m

etal

lurg

ical

am

enab

ility

. It

is a

lway

s ne

cess

ary

as p

art

of t

he

proc

ess

of d

eter

min

ing

reas

onab

le p

rosp

ects

for

eve

ntua

l eco

nom

ic e

xtra

ctio

n to

con

side

r po

tent

ial m

etal

lurg

ical

m

etho

ds, b

ut t

he a

ssum

ptio

ns r

egar

ding

met

allu

rgic

al t

reat

men

t pr

oces

ses

and

para

met

ers

mad

e w

hen

repo

rtin

g M

iner

al R

esou

rces

may

not

alw

ays

be r

igor

ous.

Whe

re t

his

is t

he c

ase,

thi

s sh

ould

be

repo

rted

with

an

expl

anat

ion

of

the

basi

s of

the

met

allu

rgic

al a

ssum

ptio

ns m

ade.

Sect

ions

7.4

.2

Envi

ronm

enta

l fac

tors

or

assu

mpt

ions

Assu

mpt

ions

mad

e re

gard

ing

poss

ible

was

te a

nd p

roce

ss r

esid

ue d

ispo

sal o

ptio

ns. I

t is

alw

ays

nece

ssar

y as

par

t of

the

pr

oces

s of

det

erm

inin

g re

ason

able

pro

spec

ts f

or e

vent

ual e

cono

mic

ext

ract

ion

to c

onsi

der

the

pote

ntia

l env

ironm

enta

l im

pact

s of

the

min

ing

and

proc

essi

ng o

pera

tion.

Whi

le a

t th

is s

tage

the

det

erm

inat

ion

of p

oten

tial e

nviro

nmen

tal

Sect

ion

17


7 5

A N N U A L R E P O R T 2 0 1 8


vi

© M

iner

al C

orpo

ratio

n Co

nsul

tanc

y (P

ty)

Ltd

Repo

rt N

o. C

-TM

M-J

UP-

1786

- 1

079,

Apr

il 20

18

Com

pete

nt P

erso

ns R

epor

t on

Tshi

pi é

Ntle

Man

gane

se M

inin

g (P

ty)

Lim

ited‟

s Ts

hipi

Bor

wa

Min

e

Sect

ion

3: E

stim

atio

n an

d R

epor

ting

of M

iner

al R

esou

rces

Se

ctio

n in

CPR

Crite

ria

JORC

Code

exp

lana

tion

Com

men

tary

impa

cts,

par

ticul

arly

for

a g

reen

field

s pr

ojec

t, m

ay n

ot a

lway

s be

wel

l adv

ance

d, t

he s

tatu

s of

ear

ly c

onsi

dera

tion

of

thes

e po

tent

ial e

nviro

nmen

tal i

mpa

cts

shou

ld b

e re

port

ed. W

here

the

se a

spec

ts h

ave

not

been

con

side

red

this

sho

uld

be r

epor

ted

with

an

expl

anat

ion

of t

he e

nviro

nmen

tal a

ssum

ptio

ns m

ade.

Bulk

den

sity

Whe

ther

ass

umed

or

dete

rmin

ed. I

f as

sum

ed, t

he b

asis

for

the

ass

umpt

ions

. If d

eter

min

ed, t

he m

etho

d us

ed, w

heth

er

wet

or

dry,

the

fre

quen

cy o

f th

e m

easu

rem

ents

, the

nat

ure,

siz

e an

d re

pres

enta

tiven

ess

of t

he s

ampl

es.

The

bulk

den

sity

for

bul

k m

ater

ial m

ust

have

bee

n m

easu

red

by m

etho

ds t

hat

adeq

uate

ly a

ccou

nt f

or v

oid

spac

es

(vug

s, p

oros

ity, e

tc),

moi

stur

e an

d di

ffer

ence

s be

twee

n ro

ck a

nd a

ltera

tion

zone

s w

ithin

the

dep

osit.

D

iscu

ss a

ssum

ptio

ns f

or b

ulk

dens

ity e

stim

ates

use

d in

the

eva

luat

ion

proc

ess

of t

he d

iffer

ent

mat

eria

ls.

Sect

ion

6.6

Clas

sific

atio

n

The

basi

s fo

r th

e cl

assi

ficat

ion

of t

he M

iner

al R

esou

rces

into

var

ying

con

fiden

ce c

ateg

orie

s.

Whe

ther

app

ropr

iate

acc

ount

has

bee

n ta

ken

of a

ll re

leva

nt f

acto

rs (

ie r

elat

ive

conf

iden

ce in

ton

nage

/gra

de

estim

atio

ns, r

elia

bilit

y of

inpu

t da

ta, c

onfid

ence

in c

ontin

uity

of ge

olog

y an

d m

etal

val

ues,

qua

lity,

qua

ntity

and

di

strib

utio

n of

the

dat

a).

Whe

ther

the

res

ult

appr

opria

tely

ref

lect

s th

e Co

mpe

tent

Per

son‟

s vi

ew o

f th

e de

posi

t.

Sect

ion

7.6

Sect

ion

7.7

Sect

ion

7.8

Audi

ts o

r re

view

s Th

e re

sults

of an

y au

dits

or

revi

ews

of M

iner

al R

esou

rce

estim

ates

. Se

ctio

n 25

Dis

cuss

ion

of r

elat

ive

accu

racy

/ co

nfid

ence

Whe

re a

ppro

pria

te a

sta

tem

ent

of t

he r

elat

ive

accu

racy

and

con

fiden

ce le

vel i

n th

e M

iner

al R

esou

rce

estim

ate

usin

g an

ap

proa

ch o

r pr

oced

ure

deem

ed a

ppro

pria

te b

y th

e Co

mpe

tent

Per

son.

For

exa

mpl

e, t

he a

pplic

atio

n of

sta

tistic

al o

r ge

osta

tistic

al p

roce

dure

s to

qua

ntify

the

rel

ativ

e ac

cura

cy o

f th

e re

sour

ce w

ithin

sta

ted

conf

iden

ce li

mits

, or,

if s

uch

an

appr

oach

is n

ot d

eem

ed a

ppro

pria

te, a

qua

litat

ive

disc

ussi

on o

f th

e fa

ctor

s th

at c

ould

affe

ct t

he r

elat

ive

accu

racy

and

co

nfid

ence

of th

e es

timat

e.

The

stat

emen

t sh

ould

spe

cify

whe

ther

it r

elat

es t

o gl

obal

or

loca

l est

imat

es, a

nd, i

f lo

cal,

stat

e th

e re

leva

nt t

onna

ges,

w

hich

sho

uld

be r

elev

ant

to t

echn

ical

and

eco

nom

ic e

valu

atio

n. D

ocum

enta

tion

shou

ld in

clud

e as

sum

ptio

ns m

ade

and

the

proc

edur

es u

sed.

Th

ese

stat

emen

ts o

f re

lativ

e ac

cura

cy a

nd c

onfid

ence

of th

e es

timat

e sh

ould

be

com

pare

d w

ith p

rodu

ctio

n da

ta,

whe

re a

vaila

ble.

Sect

ion

7.6.

4 Se

ctio

n 7.

11

Sect

ion

4: E

stim

atio

n an

d Rep

ortin

g of

Ore

Res

erve

s Se

ctio

n in

CPR

Crite

ria

JORC

Code

exp

lana

tion

Com

men

tary

Min

eral

Res

ourc

e es

timat

e fo

r co

nver

sion

to

Ore

Res

erve

s D

escr

iptio

n of

the

Min

eral

Res

ourc

e es

timat

e us

ed a

s a

basi

s fo

r th

e co

nver

sion

to

an O

re R

eser

ve.

Clea

r st

atem

ent

as t

o w

heth

er t

he M

iner

al R

esou

rces

are

rep

orte

d ad

ditio

nal t

o, o

r in

clus

ive

of, t

he O

re R

eser

ves.

Se

ctio

n 7.

9

Site

vis

its

Com

men

t on

any

site

vis

its u

nder

take

n by

the

Com

pete

nt P

erso

n an

d th

e ou

tcom

e of

tho

se v

isits

. If

no

site

vis

its h

ave

been

und

erta

ken

indi

cate

why

thi

s is

the

cas

e.

Sect

ion

8.6

Sect

ion

9.6

Sect

ion

12.7

Se

ctio

n 19

.5

Stud

y st

atus

The

type

and

leve

l of st

udy

unde

rtak

en t

o en

able

Min

eral

Res

ourc

es t

o be

con

vert

ed t

o O

re

Res

erve

s.

The

Code

req

uire

s th

at a

stu

dy t

o at

leas

t Pr

e-Fe

asib

ility

Stu

dy le

vel h

as b

een

unde

rtak

en t

o co

nver

t M

iner

al

Res

ourc

es t

o O

re R

eser

ves.

Suc

h st

udie

s w

ill h

ave

been

car

ried

out

and

will

hav

e de

term

ined

a m

ine

plan

tha

t is

Sect

ion

8.7

Sect

ion

9.7

Sect

ion

10

Sect

ion

11


7 6



vii

© M

iner

al C

orpo

ratio

n Co

nsul

tanc

y (P

ty)

Ltd

Repo

rt N

o. C

-TM

M-J

UP-

1786

- 1

079,

Apr

il 20

18

Com

pete

nt P

erso

ns R

epor

t on

Tshi

pi é

Ntle

Man

gane

se M

inin

g (P

ty)

Lim

ited‟

s Ts

hipi

Bor

wa

Min

e

Sect

ion

4: E

stim

atio

n an

d Rep

ortin

g of

Ore

Res

erve

s Se

ctio

n in

CPR

Crite

ria

JORC

Code

exp

lana

tion

Com

men

tary

tech

nica

lly a

chie

vabl

e an

d ec

onom

ical

ly v

iabl

e, a

nd t

hat

mat

eria

l Mod

ifyin

g Fa

ctor

s ha

ve b

een

cons

ider

ed.

Sect

ion

12

Cut-

off pa

ram

eter

s Th

e ba

sis

of t

he c

ut-o

ff g

rade

(s)

or q

ualit

y pa

ram

eter

s ap

plie

d.

Sect

ion

23.1

.3.6

Min

ing

fact

ors

or a

ssum

ptio

ns

The

met

hod

and

assu

mpt

ions

use

d as

rep

orte

d in

the

Pre

-Fea

sibi

lity

or F

easi

bilit

y St

udy

to c

onve

rt t

he M

iner

al

Res

ourc

e to

an

Ore

Res

erve

(i.e

. eith

er b

y ap

plic

atio

n of

app

ropr

iate

fac

tors

by

optim

isat

ion

or b

y pr

elim

inar

y or

de

taile

d de

sign

).

The

choi

ce, n

atur

e an

d ap

prop

riate

ness

of th

e se

lect

ed m

inin

g m

etho

d(s)

and

oth

er m

inin

g pa

ram

eter

s in

clud

ing

asso

ciat

ed d

esig

n is

sues

suc

h as

pre

-str

ip, a

cces

s, e

tc.

The

assu

mpt

ions

mad

e re

gard

ing

geot

echn

ical

par

amet

ers

(eg

pit

slop

es, s

tope

siz

es, e

tc),

gra

de c

ontr

ol a

nd p

re-

prod

uctio

n dr

illin

g.

The

maj

or a

ssum

ptio

ns m

ade

and

Min

eral

Res

ourc

e m

odel

use

d fo

r pi

t an

d st

ope

optim

isat

ion

(if a

ppro

pria

te).

Th

e m

inin

g di

lutio

n fa

ctor

s us

ed.

The

min

ing

reco

very

fac

tors

use

d.

Any

min

imum

min

ing

wid

ths

used

. Th

e m

anne

r in

whi

ch I

nfer

red

Min

eral

Res

ourc

es a

re u

tilis

ed in

min

ing

stud

ies

and

the

sens

itivi

ty o

f th

e ou

tcom

e to

th

eir

incl

usio

n.

The

infr

astr

uctu

re r

equi

rem

ents

of

the

sele

cted

min

ing

met

hods

.

Sect

ion

8 Se

ctio

n 9

Sect

ion

10

Sect

ion

11

Sect

ion

11.4

Se

ctio

n 12

Se

ctio

n 23

.1.3

Met

allu

rgic

al f

acto

rs o

r as

sum

ptio

ns

The

met

allu

rgic

al p

roce

ss p

ropo

sed

and

the

appr

opria

tene

ss o

f th

at p

roce

ss t

o th

e st

yle

of m

iner

alis

atio

n.

Whe

ther

the

met

allu

rgic

al p

roce

ss is

wel

l-tes

ted

tech

nolo

gy o

r no

vel i

n na

ture

. Th

e na

ture

, am

ount

and

rep

rese

ntat

iven

ess

of m

etal

lurg

ical

tes

t w

ork

unde

rtak

en, t

he n

atur

e of

the

met

allu

rgic

al

dom

aini

ng a

pplie

d an

d th

e co

rres

pond

ing

met

allu

rgic

al r

ecov

ery

fact

ors

appl

ied.

An

y as

sum

ptio

ns o

r al

low

ance

s m

ade

for

dele

terio

us e

lem

ents

. Th

e ex

iste

nce

of a

ny b

ulk

sam

ple

or p

ilot

scal

e te

st w

ork

and

the

degr

ee t

o w

hich

suc

h sa

mpl

es a

re c

onsi

dere

d re

pres

enta

tive

of t

he o

rebo

dy a

s a

who

le.

For

min

eral

s th

at a

re d

efin

ed b

y a

spec

ifica

tion,

has

the

ore

res

erve

est

imat

ion

been

bas

ed o

n th

e ap

prop

riate

m

iner

alog

y to

mee

t th

e sp

ecifi

catio

ns?

Sect

ion

14

Envi

ronm

enta

l Th

e st

atus

of st

udie

s of

pot

entia

l env

ironm

enta

l im

pact

s of

the

min

ing

and

proc

essi

ng o

pera

tion.

Det

ails

of w

aste

roc

k ch

arac

teris

atio

n an

d th

e co

nsid

erat

ion

of p

oten

tial s

ites,

sta

tus

of d

esig

n op

tions

con

side

red

and,

whe

re a

pplic

able

, th

e st

atus

of ap

prov

als

for

proc

ess

resi

due

stor

age

and

was

te d

umps

sho

uld

be r

epor

ted.

Sect

ion

17

Sect

ion

11

Infr

astr

uctu

re

The

exis

tenc

e of

app

ropr

iate

infr

astr

uctu

re:

avai

labi

lity

of la

nd f

or p

lant

dev

elop

men

t, p

ower

, wat

er, t

rans

port

atio

n (p

artic

ular

ly f

or b

ulk

com

mod

ities

), la

bour

, acc

omm

odat

ion;

or

the

ease

with

whi

ch t

he in

fras

truc

ture

can

be

prov

ided

, or

acc

esse

d.

Sect

ion

13

Sect

ion

15

Sect

ion

16

Cost

s

The

deriv

atio

n of

, or

assu

mpt

ions

mad

e, r

egar

ding

pro

ject

ed c

apita

l cos

ts in

the

stu

dy.

The

met

hodo

logy

use

d to

est

imat

e op

erat

ing

cost

s.

Allo

wan

ces

mad

e fo

r th

e co

nten

t of

del

eter

ious

ele

men

ts.

The

deriv

atio

n of

ass

umpt

ions

mad

e of

met

al o

r co

mm

odity

pric

e(s)

, for

the

prin

cipa

l min

eral

s an

d co

- pr

oduc

ts.

The

sour

ce o

f ex

chan

ge r

ates

use

d in

the

stu

dy.

Der

ivat

ion

of t

rans

port

atio

n ch

arge

s.

The

basi

s fo

r fo

reca

stin

g or

sou

rce

of t

reat

men

t an

d re

finin

g ch

arge

s, p

enal

ties

for

failu

re t

o m

eet

spec

ifica

tion,

etc

. Th

e al

low

ance

s m

ade

for

roya

lties

pay

able

, bot

h G

over

nmen

t an

d pr

ivat

e.

Sect

ion

21

Sect

ion

22

Sect

ion

23.1

.4


7 7

A N N U A L R E P O R T 2 0 1 8


viii

© M

iner

al C

orpo

ratio

n Co

nsul

tanc

y (P

ty)

Ltd

Repo

rt N

o. C

-TM

M-J

UP-

1786

- 1

079,

Apr

il 20

18

Com

pete

nt P

erso

ns R

epor

t on

Tshi

pi é

Ntle

Man

gane

se M

inin

g (P

ty)

Lim

ited‟

s Ts

hipi

Bor

wa

Min

e

Sect

ion

4: E

stim

atio

n an

d Rep

ortin

g of

Ore

Res

erve

s Se

ctio

n in

CPR

Crite

ria

JORC

Code

exp

lana

tion

Com

men

tary

Rev

enue

fac

tors

The

deriv

atio

n of

, or

assu

mpt

ions

mad

e re

gard

ing

reve

nue

fact

ors

incl

udin

g he

ad g

rade

, met

al o

r co

mm

odity

pric

e(s)

ex

chan

ge r

ates

, tra

nspo

rtat

ion

and

trea

tmen

t ch

arge

s, p

enal

ties,

net

sm

elte

r re

turn

s, e

tc.

The

deriv

atio

n of

ass

umpt

ions

mad

e of

met

al o

r co

mm

odity

pric

e(s)

, for

the

prin

cipa

l met

als,

min

eral

s an

d co

-pr

oduc

ts.

Sect

ion

20

Sect

ion

23.1

.4

Mar

ket

asse

ssm

ent

The

dem

and,

sup

ply

and

stoc

k si

tuat

ion

for

the

part

icul

ar c

omm

odity

, con

sum

ptio

n tr

ends

and

fac

tors

like

ly t

o af

fect

su

pply

and

dem

and

into

the

fut

ure.

A

cust

omer

and

com

petit

or a

naly

sis

alon

g w

ith t

he id

entif

icat

ion

of li

kely

mar

ket

win

dow

s fo

r th

e pr

oduc

t.

Pric

e an

d vo

lum

e fo

reca

sts

and

the

basi

s fo

r th

ese

fore

cast

s.

For

indu

stria

l min

eral

s th

e cu

stom

er s

peci

ficat

ion,

tes

ting

and

acce

ptan

ce r

equi

rem

ents

prio

r to

a s

uppl

y co

ntra

ct.

Sect

ion

16.4

Se

ctio

n 20

Se

ctio

n 23

.1.4

N

ot a

pplic

able

Econ

omic

Th

e in

puts

to

the

econ

omic

ana

lysi

s to

pro

duce

the

net

pre

sent

val

ue (

NPV

) in

the

stu

dy, t

he s

ourc

e an

d co

nfid

ence

of

thes

e ec

onom

ic in

puts

incl

udin

g es

timat

ed in

flatio

n, d

isco

unt

rate

, etc

. N

PV r

ange

s an

d se

nsiti

vity

to

varia

tions

in t

he s

igni

fican

t as

sum

ptio

ns a

nd in

puts

. Se

ctio

n 23

.1.4

Soci

al

The

stat

us o

f ag

reem

ents

with

key

sta

keho

lder

s an

d m

atte

rs le

adin

g to

soc

ial l

icen

ce t

o op

erat

e.

Sect

ion

18

Oth

er

To t

he e

xten

t re

leva

nt, th

e im

pact

of th

e fo

llow

ing

on t

he p

roje

ct a

nd/o

r on

the

est

imat

ion

and

clas

sific

atio

n of

the

O

re R

eser

ves:

An

y id

entif

ied

mat

eria

l nat

ural

ly o

ccur

ring

risks

. Th

e st

atus

of m

ater

ial l

egal

agr

eem

ents

and

mar

ketin

g ar

rang

emen

ts.

The

stat

us o

f go

vern

men

tal a

gree

men

ts a

nd a

ppro

vals

crit

ical

to

the

viab

ility

of th

e pr

ojec

t, s

uch

as m

iner

al t

enem

ent

stat

us, a

nd g

over

nmen

t an

d st

atut

ory

appr

oval

s. T

here

mus

t be

rea

sona

ble

grou

nds

to e

xpec

t th

at a

ll ne

cess

ary

Gov

ernm

ent

appr

oval

s w

ill b

e re

ceiv

ed w

ithin

the

tim

efra

mes

ant

icip

ated

in t

he P

re-F

easi

bilit

y or

Fea

sibi

lity

stud

y.

Hig

hlig

ht a

nd d

iscu

ss t

he m

ater

ialit

y of

any

unr

esol

ved

mat

ter

that

is d

epen

dent

on

a th

ird p

arty

on

whi

ch e

xtra

ctio

n of

the

res

erve

is c

ontin

gent

.

Sect

ion

23.4

Se

ctio

n 4

Sect

ion

3

Clas

sific

atio

n Th

e ba

sis

for

the

clas

sific

atio

n of

the

Ore

Res

erve

s in

to v

aryi

ng c

onfid

ence

cat

egor

ies.

W

heth

er t

he r

esul

t ap

prop

riate

ly r

efle

cts

the

Com

pete

nt P

erso

n‟s

view

of th

e de

posi

t.

The

prop

ortio

n of

Pro

babl

e O

re R

eser

ves

that

hav

e be

en d

eriv

ed fro

m M

easu

red

Min

eral

Res

ourc

es (

if an

y).

Sect

ion

23

Audi

ts o

r re

view

s Th

e re

sults

of an

y au

dits

or

revi

ews

of O

re R

eser

ve e

stim

ates

. Se

ctio

n 25

Dis

cuss

ion

of r

elat

ive

accu

racy

/ co

nfid

ence

Whe

re a

ppro

pria

te a

sta

tem

ent

of t

he r

elat

ive

accu

racy

and

con

fiden

ce le

vel i

n th

e O

re R

eser

ve e

stim

ate

usin

g an

ap

proa

ch o

r pr

oced

ure

deem

ed a

ppro

pria

te b

y th

e Co

mpe

tent

Per

son.

For

exa

mpl

e, t

he a

pplic

atio

n of

sta

tistic

al o

r ge

osta

tistic

al p

roce

dure

s to

qua

ntify

the

rel

ativ

e ac

cura

cy o

f th

e re

serv

e w

ithin

sta

ted

conf

iden

ce li

mits

, or

, if su

ch a

n ap

proa

ch is

not

dee

med

app

ropr

iate

, a q

ualit

ativ

e di

scus

sion

of th

e fa

ctor

s w

hich

cou

ld a

ffect

the

rel

ativ

e ac

cura

cy

and

conf

iden

ce o

f th

e es

timat

e.

The

stat

emen

t sh

ould

spe

cify

whe

ther

it r

elat

es t

o gl

obal

or

loca

l est

imat

es, a

nd, i

f lo

cal,

stat

e th

e re

leva

nt t

onna

ges,

w

hich

sho

uld

be r

elev

ant

to t

echn

ical

and

eco

nom

ic e

valu

atio

n. D

ocum

enta

tion

shou

ld in

clud

e as

sum

ptio

ns m

ade

and

the

proc

edur

es u

sed.

Ac

cura

cy a

nd c

onfid

ence

dis

cuss

ions

sho

uld

exte

nd t

o sp

ecifi

c di

scus

sion

s of

any

app

lied

Mod

ifyin

g Fa

ctor

s th

at m

ay

have

a m

ater

ial i

mpa

ct o

n O

re R

eser

ve v

iabi

lity,

or

for

whi

ch t

here

are

rem

aini

ng a

reas

of un

cert

aint

y at

the

cur

rent

st

udy

stag

e.

It is

rec

ogni

sed

that

thi

s m

ay n

ot b

e po

ssib

le o

r ap

prop

riate

in a

ll ci

rcum

stan

ces.

The

se s

tate

men

ts o

f re

lativ

e ac

cura

cy a

nd c

onfid

ence

of th

e es

timat

e sh

ould

be

com

pare

d w

ith p

rodu

ctio

n da

ta, w

here

ava

ilabl

e.

Sect

ion

23

Sect

ion

24


7 8



ix

© M

iner

al C

orpo

ratio

n Co

nsul

tanc

y (P

ty)

Ltd

Repo

rt N

o. C

-TM

M-J

UP-

1786

- 1

079,

Apr

il 20

18

Com

pete

nt P

erso

ns R

epor

t on

Tshi

pi é

Ntle

Man

gane

se M

inin

g (P

ty)

Lim

ited‟

s Ts

hipi

Bor

wa

Min

e

Sect

ion

5: E

stim

atio

n an

d Rep

ortin

g of

Dia

mon

ds a

nd O

ther

Gem

ston

es

Sect

ion

in C

PR

Crite

ria

JORC

Code

exp

lana

tion

Com

men

tary

NO

T AP

PLIC

ABLE


7 9

A N N U A L R E P O R T 2 0 1 8


MT MASON JORC TABLE 1SR

K C

onsu

lting

Ap

pend

ix A

-1

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

JOR

C C

ode,

201

2 Ed

ition

– T

able

1

Sect

ion

1 Sa

mpl

ing

Tech

niqu

es a

nd D

ata

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Sam

plin

g te

chni

ques

•

Nat

ure

and

qual

ity o

f sam

plin

g (e

.g.

cut c

hann

els,

rand

om c

hips

, or

spec

ific

spec

ialis

ed in

dust

ry s

tand

ard

mea

sure

men

t too

ls a

ppro

pria

te to

th

e m

iner

als

unde

r inv

estig

atio

n,

such

as

dow

nhol

e ga

mm

a so

ndes

, or

hand

held

XR

F in

stru

men

ts, e

tc.).

Th

ese

exam

ples

sho

uld

not b

e ta

ken

as li

miti

ng th

e br

oad

mea

ning

of

sam

plin

g.

• In

clud

e re

fere

nce

to m

easu

res

take

n to

ens

ure

sam

ple

repr

esen

tivity

and

th

e ap

prop

riate

ca l

ibra

tion

of a

ny

mea

sure

men

t too

ls o

r sys

tem

s us

ed.

• As

pect

s of

the

dete

rmin

atio

n of

m

iner

alis

atio

n th

at a

re M

ater

ial t

o th

e Pu

blic

Rep

ort.

• In

cas

es w

here

‘ind

ustry

sta

ndar

d’

wor

k ha

s be

en d

one,

this

wou

ld b

e re

lativ

ely

sim

ple

(e.g

. ‘re

vers

e ci

rcul

atio

n dr

illing

was

use

d to

obt

ain

1 m

sam

ples

from

whi

ch 3

kg

was

pu

lver

ised

to p

rodu

ce a

30

g ch

arge

fo

r fire

ass

ay’).

In o

ther

cas

es, m

ore

expl

anat

ion

may

be

requ

ired,

suc

h as

whe

re th

ere

is c

oars

e go

ld th

at

has

inhe

rent

sam

plin

g pr

oble

ms.

U

nusu

al c

omm

oditi

es o

r m

iner

alis

atio

n ty

pes

(e.g

. sub

mar

ine

nodu

les)

may

war

rant

dis

clos

ure

of

deta

iled

info

rmat

ion.

• Th

e M

t Mas

on R

esou

rce

Estim

ate

com

pris

es s

ever

al d

rill c

ampa

igns

and

var

ious

sam

plin

g pr

ogra

ms

(Err

or!

Ref

eren

ce s

ourc

e no

t fou

nd.)

in m

ain

body

of r

epor

t).

Pe

rcus

sion

sam

plin

g:

• H

oles

dril

led

in 1

978

wer

e no

t use

d in

the

estim

atio

n, b

ut d

escr

iptio

ns fo

r geo

logi

cal p

urpo

ses

wer

e us

ed.

R

C s

ampl

ing:

•

RC

dril

ling

occu

rred

in 2

006

to 2

008

and

2011

. •

The

com

plet

e sa

mpl

e w

as c

olle

cted

and

pas

sed

thro

ugh

a th

ree-

tiere

d Jo

nes

riffle

spl

itter

, pro

duci

ng a

12.

5% a

nd

87.5

% s

plit.

The

12.

5% s

plit

was

col

lect

ed in

a s

ingl

e, p

re-n

umbe

red,

cal

ico

sam

ple

bag

and

the

reje

ct 8

7.5%

spl

it w

as re

tain

ed in

a p

last

ic b

ag.

The

drilli

ng c

ontra

ctor

sup

plie

d th

e la

bour

to c

olle

ct th

e sp

lits

and

plac

e th

em in

the

sam

ple

bags

pro

vide

d. T

he b

ags

wer

e at

tach

ed to

the

resp

ectiv

e sp

litte

r chu

tes

at th

e co

mm

ence

men

t of t

he

sam

ple

inte

rval

. At

the

com

plet

ion

of e

ach

met

re o

f dril

ling,

the

sam

ples

(ret

entio

n an

d ca

lico

bag)

wer

e re

mov

ed

from

the

chut

es a

nd le

ft ad

jace

nt to

the

drill

hole

in ro

ws

of 2

0, i.

e. 2

0 m

leng

th o

f hol

e. T

he c

alic

o ba

g w

as ti

ed

and

secu

red

at th

is s

tage

. Le

ss th

an 1

0 sa

mpl

es w

ere

wet

sam

ples

. Th

e ch

ip s

ize

was

uni

form

ly s

mal

l (<1

0 m

m).

• Ea

rlier

dril

l pro

gram

s (2

006

and

2008

) sam

ples

wer

e co

llect

ed o

n 2

m in

terv

als

or 4

m in

terv

als,

but

then

on

1 m

(2

011)

. •

Whe

n co

llect

ing

the

sam

ples

, the

sam

pler

or g

eolo

gist

cro

ss c

heck

ed th

e sa

mpl

e nu

mbe

rs w

ith th

e ho

le d

epth

s to

en

sure

cor

rect

labe

lling

and

corre

latio

n, in

serte

d ce

rtifie

d re

fere

nce

mat

eria

ls (C

RM

s) a

nd to

ok d

uplic

ates

sam

ples

fo

r QA/

QC

. Sa

mpl

e co

llect

ion

took

pla

ce, a

t mos

t, w

ithin

24

hour

s of

the

hole

bei

n g d

rille

d, b

ut w

as g

ener

ally

ca

rried

out

on

the

sam

e da

y.

• Al

l sam

ples

for s

ubm

issi

on w

ere

plac

ed im

med

iate

ly o

n co

llect

ion

into

larg

e pl

astic

sac

ks (7

- 10

sam

ples

per

sa

ck).

The

sac

k w

as s

eale

d an

d la

belle

d w

ith id

entif

ying

num

bers

and

des

tinat

ion.

The

sac

ks w

ere

subd

ivid

ed

into

lots

of 2

0 sa

cks.

The

pro

gram

pro

duce

d 4

lots

of s

acks

. Al

l sac

ks w

ere

palle

tised

at t

he P

errin

vale

Sta

tion

hom

este

ad a

nd d

ispa

tche

d as

a s

ingl

e ba

tch

by a

cou

rier s

ervi

ce fr

om L

eono

ra to

the

labo

rato

ry in

Per

th.

• N

omin

al s

plit

size

s w

ere

appr

oxim

atel

y 3.

5 kg

.

Dia

mon

d dr

illin

g (D

D) s

ampl

ing:

(201

1)

• Af

ter l

oggi

ng, m

ark-

up, a

nd p

hoto

grap

hing

cor

e (w

et a

nd d

ry),

the

core

(whe

n or

ient

ed) w

as a

ligne

d in

the

core

sa

w s

o th

at it

cut

~2

cm to

the

low

er s

ide

of th

e or

ient

atio

n lin

e (s

ide

oppo

site

to w

here

dow

nhol

e tic

k an

d ot

her

info

rmat

ion

is w

ritte

n).

Onc

e cu

t, th

e ha

lf pi

ece

of s

ampl

e th

at d

oes

not h

ave

info

rmat

ion

writ

ten

on is

bag

ged

in

calic

o an

d se

nt fo

r tes

ting,

whe

reas

the

othe

r hal

f is

repl

aced

in th

e co

re tr

ay.

• C

ore

sam

ples

wer

e te

rmin

ated

at l

ithol

ogic

al b

ound

arie

s an

d sa

mpl

ing

inte

rval

leng

ths

rang

ed fr

om ~

0.1

m to

>1

.2 m

.

8 0



SRK

Con

sulti

ng

Appe

ndix

A-2

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Add

ition

al d

rillin

g:

• An

add

ition

al 4

PQ

dia

mon

d ho

les

wer

e dr

illed

in 2

012

for g

eote

chni

cal p

urpo

ses

only

and

SR

K is

not

aw

are

of a

ny

sam

plin

g or

ass

ayin

g as

soci

ated

with

thes

e ge

otec

hnic

al d

rill h

oles

.

Dril

ling

tech

niqu

es

• D

rill t

ype

(e.g

. cor

e, re

vers

e ci

rcul

atio

n, o

pen -

hole

ham

mer

, rot

ary

air b

last

, aug

er, B

angk

a, s

onic

, etc

.) an

d de

tails

(e.g

. cor

e di

amet

er, t

riple

or

sta

ndar

d tu

be, d

epth

of d

iam

ond

tails

, fac

e-sa

mpl

ing

bit o

r oth

er ty

pe,

whe

ther

cor

e is

orie

nted

and

if s

o, b

y w

hat m

etho

d, e

tc.).

• Fo

r RC

: A U

nim

og-m

ount

ed In

gers

oll-R

and

mod

el H

R2

drill

was

set

up

with

825

cfm

@ 4

00 p

si a

ir co

mpr

esso

r op

erat

ing

a 12

0 m

m R

C h

amm

er.

• Fo

r DD

: Ter

ra D

rillin

g, a

Kal

goor

lie b

ased

con

tract

or, u

sed

a Te

rra R

ig 1

fitte

d w

ith H

Q3

and

PQ3

corin

g eq

uipm

ent.

Dril

l sam

ple

reco

very

•

Met

hod

of re

cord

ing

and

asse

ssin

g co

re a

nd c

hip

sam

ple

reco

verie

s an

d re

sults

ass

esse

d.

• M

easu

res

take

n to

max

imis

e sa

mpl

e re

cove

ry a

nd e

nsur

e re

pres

enta

tive

natu

re o

f the

sam

ples

. •

Whe

ther

a re

latio

nshi

p ex

ists

be

twee

n sa

mpl

e re

cove

ry a

nd g

rade

an

d w

heth

er s

ampl

e bi

as m

ay h

ave

occu

rred

due

to p

refe

rent

ial l

oss/

gain

of

fine

/coa

rse

mat

eria

l.

• Fo

r the

pre

-201

1 dr

ill pr

ogra

ms,

no

reco

rds

of d

rill c

hip

reco

very

wer

e ke

pt.

How

ever

, it i

s no

ted

that

two

hole

s ha

ve s

ectio

ns w

here

no

sam

ples

wer

e co

llect

ed a

nd a

ccor

ding

to in

form

atio

n pr

ovid

ed b

y Ju

pite

r, th

is w

as d

ue to

“d

rille

r erro

r”. J

upite

r re -

sam

pled

hol

es 0

8MM

RC

001

and

08M

MR

C00

2 fro

m th

e re

tent

ion

half

core

and

thes

e as

say

resu

lts w

ere

used

in th

e re

sour

ce e

stim

ates

.

RC

•

The

hole

s w

ere

drille

d w

ith a

ll sa

mpl

es b

eing

col

lect

ed v

ia th

e R

C s

yste

m.

A m

inor

am

ount

of b

ypas

s fro

m th

e st

uffin

g bo

x at

the

colla

r occ

urre

d.

Dus

t rej

ectio

n fro

m th

e cy

clon

e w

as m

inim

ised

by

care

ful u

se o

f wat

er in

ject

ion

whi

le d

rillin

g. S

ome

hole

s re

quire

d th

e us

e of

a fo

amin

g ag

ent t

o as

sist

in li

fting

cut

tings

and

mai

ntai

ning

hol

e w

all

stab

ility.

Onl

y m

inor

am

ount

s of

wat

er w

ere

inte

rsec

ted

in th

e ho

les

and

only

a fe

w s

ampl

es w

ere

colle

cted

in a

w

et s

tate

. Th

e co

mpl

ete

indi

vidu

al s

ampl

e w

ere

not w

eigh

ed, b

ut a

ll sa

mpl

e re

ject

was

col

lect

ed in

rete

ntio

n ba

gs

stor

ed a

t the

dril

l site

in a

seq

uent

ial m

anne

r, in

the

even

t tha

t fur

ther

sam

plin

g be

war

rant

ed.

• Ea

ch m

etre

of R

C d

rillin

g w

as re

pres

ente

d by

a g

reen

bag

of r

esid

ual s

ampl

e, a

long

with

a p

rimar

y an

d a

dupl

icat

e sa

mpl

e in

a s

epar

ate

calic

o ba

g. T

he R

C ri

gs u

sed

for t

his

prog

ram

wer

e fit

ted

with

the

equi

vale

nt c

one

split

ters

se

tup

to d

istri

bute

sam

plin

g m

ater

ial a

s fo

llow

s:

- A

37.5

% re

pres

enta

tive

sam

ple

into

the

gree

n ba

g

- A

12.5

% re

pres

enta

tive

sam

ple

into

the

prim

ary

calic

o ba

g

- A

12.5

% re

pres

enta

tive

sam

ple

into

the

dupl

icat

e ca

lico

bag

-

A 37

.5%

repr

esen

tativ

e w

aste

sam

ple,

dis

char

ged

onto

the

grou

nd

• Th

e on

site

geo

logi

st a

lway

s ch

ecke

d fo

r an

unev

en d

istri

butio

n of

sam

ple

acco

rdin

g to

the

abov

e pe

rcen

tage

s.

• Th

e fo

llow

ing

key

info

rmat

ion

on fi

eld

sam

ple

qual

ity fo

r RC

dril

ling

was

reco

rded

on

the

‘Sam

plin

g’ s

heet

: -

Sam

plin

g m

oist

ure

(cla

ssifi

ed a

s W

et, M

oist

or D

ry)

- Sa

mpl

e re

cove

ry (c

lass

ified

as

<50%

, 50%

-70%

, 70%

-90%

, 90%

-100

% o

r >10

0%).

• It

was

the

resp

onsi

bilit

y of

the

geol

ogis

t ass

igne

d to

rig

supe

rvis

ion

and

logg

ing

of a

hol

e to

reco

rd th

is in

form

atio

n.

The

reco

very

per

cent

ages

wer

e es

timat

ed fr

om th

e co

nten

ts o

f the

resi

dual

sam

ple

in th

e gr

een

bag.

MT MASON JORC TABLE 1 (CONTINUED)

8 1

A N N U A L R E P O R T 2 0 1 8



SRK

Con

sulti

ng

Appe

ndix

A-3

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

DD

•

Trip

le tu

bing

was

use

d to

max

imis

e re

cove

ry.

• Fo

r mea

surin

g co

re lo

ss, t

wo

met

hods

wer

e us

ed.

The

first

met

hod

was

don

e du

ring

the

1 m

mar

king

pro

cess

, to

avoi

d du

plic

atin

g w

ork

and

to e

nsur

e ag

reem

ent b

etw

een

the

met

hods

. Th

is in

volv

es re

cord

ing

the

follo

win

g da

ta

for e

ach

drill

run:

-

Dep

th F

rom

(met

res)

-

Dep

th T

o (m

etre

s)

- Ac

tual

cor

e m

easu

rem

ent (

met

res)

. •

This

dat

a is

reco

rded

on

the

‘DH

Rec

over

y’ s

heet

of t

he lo

ggin

g fil

e, fr

om w

hich

a n

umbe

r of a

dditi

onal

fiel

ds w

ere

calc

ulat

ed, i

nclu

ding

‘Rec

over

y’ a

nd ‘C

ore

Loss

’.

• Th

e se

cond

met

hod

of re

cord

ing

core

loss

was

with

in th

e Li

thol

ogy

log

itsel

f. E

very

sec

tion

of c

ore

loss

was

re

cord

ed a

s a

sepa

rate

inte

rval

in th

e lit

holo

gy lo

g, a

nd a

ll fie

lds

left

empt

y ap

art f

rom

‘Lith

code

’ in

whi

ch ‘C

/L’ w

as

ente

red.

For

exa

mpl

e, g

iven

an

inte

rval

(0 -

2 m

) with

con

sist

ent g

eolo

gy o

f Ban

ded

Iron

– H

emat

ite (B

IH),

but w

ith

an in

terv

al o

f cor

e lo

ss b

etw

een

1.2

m a

nd 1

.4 m

, thr

ee s

epar

ate

inte

rval

s w

ere

reco

rded

as

follo

ws:

-

0 - 1

.2 m

= B

IH, a

long

with

its

desc

riptiv

e fie

lds

-

1.2

- 1.4

m =

C/L

-

1.4

- 2.0

m =

BIH

, alo

ng w

ith it

s de

scrip

tive

field

s.

• Th

ere

is n

o re

latio

nshi

p be

twee

n sa

mpl

e re

cove

ry a

nd g

rade

.

Logg

ing

• W

heth

er c

ore

and

chip

sam

ples

hav

e be

en g

eolo

gica

lly a

nd g

eote

chni

cally

lo

gged

to a

leve

l of d

etai

l to

supp

ort

appr

opria

te M

iner

al R

esou

rce

estim

atio

n, m

inin

g st

udie

s an

d m

etal

lurg

ical

stu

dies

. •

Whe

ther

logg

ing

is q

ualit

ativ

e or

qu

antit

ativ

e in

nat

ure.

Cor

e (o

r co

stea

n, c

hann

el, e

tc.)

phot

ogra

phy.

•

The

tota

l len

gth

and

perc

enta

ge o

f th

e re

leva

nt in

ters

ectio

ns lo

gged

.

• R

C lo

ggin

g is

bas

ed o

n de

scrip

tions

of d

rill c

hip

sam

ples

. Lo

ggin

g w

as c

arrie

d ou

t by

seve

ral g

eolo

gist

s ov

er th

e va

rious

dril

ling

cam

paig

ns.

Jupi

ter i

ntro

duce

d a

com

pany

logg

ing

sche

ma,

com

men

cing

with

the

2008

dril

ling

prog

ram

. Th

is s

chem

a ha

d so

me

inco

nsis

tenc

ies

with

the

prev

ious

sch

ema.

For

the

purp

ose

of th

is re

sour

ce

estim

atio

n up

date

, the

lith

olog

ical

sum

mar

y lo

gs w

ere

sim

plifi

ed in

ac c

orda

nce

with

the

sche

ma

used

in th

e in

itial

20

06 a

nd 2

007

drilli

ng p

rogr

ams.

The

lith

olog

ical

ass

ignm

ents

app

lied

cons

ider

ed th

e w

hole

rock

ass

ay

info

rmat

ion.

Thi

s w

as p

artic

ular

ly im

porta

nt in

loca

ting

shal

ey u

nits

. A

digi

tal c

olou

r pho

togr

aph

of c

hip

tray(

s) fo

r ea

ch h

ole

was

take

n. E

ach

inte

rval

was

des

crib

ed in

term

s of

rock

type

, wea

ther

ing

and

colo

ur.

Thes

e re

cord

s w

ere

ente

red

onto

pap

er lo

gs a

nd th

en in

to a

n M

S Ac

cess

dat

abas

e.

• Th

e w

eath

erin

g st

age

– H

ighl

y W

eath

ered

(HW

), M

ediu

m W

eath

ered

and

Fre

sh (F

R) –

was

als

o lo

gged

, with

the

base

of H

W a

nd to

p of

FR

cor

resp

ondi

ng to

‘bas

e of

com

plet

e ox

idat

ion’

and

‘top

of f

resh

rock

’ res

pect

ivel

y.

• Lo

ggin

g of

DD

and

RC

in 2

011

incl

uded

reco

rdin

g of

lith

ocod

e, c

olou

r, ch

ip s

hape

, gra

in s

ize,

har

dnes

s, te

xtur

e,

min

eral

ogy,

wea

ther

ing,

and

sam

ple

moi

stur

e.

• H

andh

eld

Nito

n XR

F an

d m

agne

tic s

usce

ptib

ility

data

wer

e co

llect

ed fo

r the

201

1 dr

ill sa

mpl

es.

Dat

a w

ere

digi

tally

ca

ptur

ed in

a fi

eld

Toug

hboo

k™ c

ompu

ter.

A c

ombi

natio

n of

the

geol

ogic

al lo

gs, X

RF

and

mag

netic

sus

cept

ibilit

y da

ta w

as th

en u

sed

to s

elec

t sam

ple

inte

rval

s to

be

sent

to th

e la

bora

tory

for t

estin

g.

8 2




SRK

Con

sulti

ng

Appe

ndix

A-4

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Sub-

sam

plin

g te

chni

ques

an

d sa

mpl

e pr

epar

atio

n

• If

core

, whe

ther

cut

or s

awn

and

whe

ther

qua

rter,

half

or a

ll co

re

take

n.

• If

non-

core

, whe

ther

riffl

ed, t

ube

sam

pled

, rot

ary

split

, etc

. and

w

heth

er s

ampl

ed w

et o

r dry

. •

For a

ll sa

mpl

e ty

pes,

the

natu

re,

qual

ity a

nd a

ppro

pria

tene

ss o

f the

sa

mpl

e pr

epar

atio

n te

chni

que.

•

Qua

lity

cont

rol p

roce

dure

s ad

opte

d fo

r all

sub -

sam

plin

g st

ages

to

max

imis

e re

pres

entiv

ity o

f sam

ples

. •

Mea

sure

s ta

ken

to e

nsur

e th

at th

e sa

mpl

ing

is re

pres

enta

tive

of th

e in

si

tu m

ater

ial c

olle

cted

, inc

ludi

ng fo

r in

stan

ce re

sults

for f

ield

du

plic

ate/

seco

nd-h

alf s

ampl

ing.

•

Whe

ther

sam

ple

size

s ar

e ap

prop

riate

to th

e gr

ain

size

of t

he

mat

eria

l bei

ng s

ampl

ed.

• Ea

ch d

rill h

ole

had

a su

b-sa

mpl

e ta

ken

for e

ach

1 m

inte

rval

that

was

reta

ined

in a

num

bere

d an

d la

belle

d ch

ip

tray.

•

RC

sam

ples

wer

e lo

gged

and

sam

pled

by

wet

-sie

ving

. D

D c

ore

was

firs

t mar

ked

up a

nd o

rient

ed p

rior t

o be

ing

cut

in h

alf u

sing

a d

rill s

aw.

• D

urin

g th

e 20

08 R

C s

ampl

ing,

a d

uplic

ate

sam

ple

was

take

n fro

m th

e dr

ill cu

tting

s at

a fr

eque

ncy

of 1

in 3

0. T

hese

sa

mpl

es w

ere

subj

ect t

o th

e sa

me

proc

essi

ng a

nd a

ssay

ing

met

hods

as

norm

al s

ampl

es.

Late

r, a

field

spl

it du

plic

ate

sam

ple

was

take

n at

a ra

te o

f 1 in

20

sam

ples

. Th

e du

plic

ate

was

take

n fro

m th

e re

tent

ion

bag

usin

g th

e sp

ear m

etho

d. A

site

sta

ndar

d w

as a

lso

incl

uded

at a

rate

of 1

in 2

0 sa

mpl

es.

• Th

ree

iron

ore

CR

Ms

wer

e us

ed in

the

2008

cam

paig

n at

a m

inim

um ra

te o

f one

per

dril

l hol

e.

• C

RM

s an

d D

uplic

ates

wer

e al

so u

sed

in th

e 20

06 a

nd 2

007

cam

paig

n at

a ra

te o

f 1 in

20.

•

Prio

r to

2011

, no

blan

k sa

mpl

es w

ere

subm

itted

. •

For 2

011

sam

plin

g, a

sui

te o

f six

iron

ore

CR

Ms

(sou

rced

from

Geo

stat

s La

bora

torie

s) w

ere

used

. C

RM

s an

d D

uplic

ates

wer

e in

serte

d in

to th

e sa

mpl

e st

ream

at a

rate

of 1

in 2

5.

• Sa

mpl

e si

zes

in re

latio

n to

gra

in s

ize

wer

e ap

prop

riate

for M

iner

al R

esou

rce

estim

atio

n pu

rpos

es.

Qua

lity

of

assa

y da

ta

and

labo

rato

ry

test

s

• Th

e na

ture

, qua

lity

and

appr

opria

tene

ss o

f the

ass

ayin

g an

d la

bora

tory

pro

cedu

res

used

and

w

heth

er th

e te

chni

que

is c

onsi

dere

d pa

rtial

or t

otal

. •

For g

eoph

ysic

al to

ols,

sp

ectro

met

ers,

han

dhel

d XR

F in

stru

men

ts, e

tc.,

the

para

met

ers

used

in d

eter

min

ing

the

anal

ysis

in

clud

ing

inst

rum

ent m

ake

and

mod

el, r

eadi

ng ti

mes

, cal

ibra

tions

fa

ctor

s ap

plie

d an

d th

eir d

eriv

atio

n,

etc.

•

Nat

ure

of q

ualit

y co

ntro

l pro

cedu

res

adop

ted

(e.g

. sta

ndar

ds, b

lank

s,

dupl

icat

es, e

xter

nal l

abor

ator

y ch

ecks

) and

whe

ther

acc

epta

ble

leve

ls o

f acc

urac

y (i.

e. la

ck o

f bia

s)

and

prec

isio

n ha

ve b

een

esta

blis

hed.

• Fr

om 2

006,

ALS

Che

mex

, a N

ATA-

accr

edite

d la

bora

tory

in P

erth

, whi

ch h

as a

com

preh

ensi

ve in

tern

al Q

A/Q

C

syst

em, w

as u

sed.

On

prov

idin

g th

e as

say

resu

lts, t

he la

bora

tory

sim

ulta

neou

sly

prov

ides

the

resu

lts o

f its

inte

rnal

Q

A/Q

C.

• W

h ole

rock

det

erm

inat

ions

wer

e m

ade

usin

g XR

F te

chni

ques

on

a fu

sed

disk

of t

he s

ampl

e.

• Bo

th la

bora

tory

-inse

rted

and

clie

nt-in

serte

d Q

A/Q

C m

ater

ial r

esul

ts a

re c

heck

ed to

ens

ure

they

fall

with

in th

e re

quire

d co

ntro

l lim

its fo

r the

pro

ject

. In

the

case

of t

h e M

t Mas

on s

tudy

, the

lim

it is

thre

e st

anda

rd d

evia

tions

(3

SD) f

rom

the

acce

pted

val

ue fo

r the

CR

Ms.

•

Tabl

e 4-

3 (in

mai

n bo

dy o

f rep

ort)

sum

mar

ises

the

QA/

QC

revi

ews

for e

ach

cam

paig

n.

Q

A/Q

C 2

011

• D

ata

qual

ity fo

r the

201

1 dr

illing

cam

paig

n w

as a

sses

sed

by S

tew

art (

2011

) of D

extra

l Geo

logi

cal S

ervi

ces,

and

by

Bino

ir (2

011)

of S

RK.

A to

tal o

f 67

field

sta

ndar

ds a

nd 8

0 fie

ld d

uplic

ates

wer

e su

bmitt

ed.

No

blan

ks w

ere

subm

itted

. Th

e st

anda

rds

used

are

sum

mar

ised

in th

e fo

llow

ing

tabl

e.

8 3

A N N U A L R E P O R T 2 0 1 8



SRK

Con

sulti

ng

Appe

ndix

A-5

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

•

Five

sta

ndar

ds w

ere

foun

d to

be

the

resu

lt of

fiel

d sw

aps

and

wer

e co

rrect

ed in

the

data

base

•

Stan

dard

s re

turn

ing

valu

es o

utsi

de o

f 3SD

of t

he m

ean

for a

spe

cific

ele

men

t wer

e co

nsid

ered

to h

ave

faile

d.

Indi

vidu

al s

tand

ards

con

tain

ing

mor

e th

an th

ree

fail e

d el

emen

ts (o

ut o

f Al 2O

3, Fe

, SiO

2, P

and

LOI)

wer

e co

nsid

ered

a fa

iled

stan

dard

. Ba

sed

on th

ese

crite

ria, 9

6% o

f the

sta

ndar

ds p

asse

d. T

his

incl

uded

resu

lts fr

om

GIO

P-01

4, w

hich

had

an

80%

failu

re ra

te.

The

use

of th

is s

tand

ard

was

dis

cont

inue

d du

e to

its

poor

per

form

ance

an

d it

was

sub

sequ

ently

rem

oved

from

the

data

base

. R

emov

al o

f GIO

P-01

4 fro

m th

e da

tase

t sub

sequ

ently

re

sulte

d in

a 1

00%

pas

s ra

te fo

r sta

ndar

ds.

• Fi

eld

dupl

icat

es w

ere

incl

uded

in s

ampl

e su

bmis

sion

s to

mon

itor f

ield

sam

plin

g pr

actic

es.

The

perfo

rman

ce o

f fie

ld

dupl

icat

es w

as m

easu

red

usin

g R

elat

ive

Paire

d D

iffer

ence

Plo

ts, S

catte

r Plo

ts a

nd Q

-Q P

lots

. A

sing

le d

ata

entry

er

ror w

as fo

und

and

corre

cted

prio

r to

the

revi

ew.

Scat

ter p

lots

for a

ll el

emen

ts s

how

ed re

gres

sion

coe

ffici

ents

>0

.95.

Fe

assa

ys h

ad a

regr

essi

on c

oeffi

cien

t of 0

.99,

with

94%

of d

ata

fallin

g w

ithin

10%

of t

he e

xpec

ted

valu

e.

Both

SiO

2 an

d Al

2O3 h

ad a

regr

essi

on c

oeffi

cien

t of 0

.99,

with

79%

and

74%

of d

ata

fallin

g w

ithin

10%

of t

he

expe

cted

val

ue re

spec

tivel

y. P

and

LO

I sho

wed

a lo

wer

rate

of r

epea

tabi

lity,

with

70%

and

69%

of t

he d

ata

fallin

g w

ithin

10%

of t

he e

xpec

ted

valu

es.

Q-Q

plo

ts in

dica

te th

at m

ost e

lem

ents

sho

w n

o si

gnifi

cant

bia

s be

twee

n th

e or

igin

al a

nd th

e du

plic

ate

sam

ple,

whi

ch s

ugge

sts

that

the

labo

rato

ry’s

cal

ibra

tion

is a

ccur

ate.

Rel

ativ

e pa

ired

diffe

renc

e pl

ots

high

light

ed th

e ca

libra

tion

varia

nce

betw

een

Fe a

nd th

e ot

her f

our m

ajor

ele

men

ts, w

ith F

e ha

ving

th

e gr

eate

st a

mou

nt o

f bia

s, b

ut d

ispl

ayin

g th

e le

ast a

mou

nt o

f spr

ead.

Fe

had

a bi

as to

war

ds th

e or

igin

al s

ampl

e at

val

ues

clos

e to

the

low

er d

etec

tion

limit,

with

the

bias

tren

ding

tow

ards

the

dupl

icat

e at

hig

her v

alue

s. A

l 2O3

disp

lays

the

grea

test

am

ount

of s

prea

d, s

ugge

stin

g th

at th

e ca

libra

tion

of th

e XR

F in

stru

men

t was

not

opt

imis

ed fo

r Al

2O3.

Tw

o du

plic

ates

faile

d fo

ur o

f the

five

ana

lyse

s an

d ar

e co

nsid

ered

faile

d du

plic

ates

. JM

S008

00 a

ppea

rs to

be

a d

uplic

ate

of J

MS0

0798

, and

may

be

the

resu

lt of

an

acci

dent

al fi

eld

swap

, alth

ough

this

is n

ot c

oncl

usiv

e as

so

me

anal

yses

do

not e

xact

ly m

atch

the

orig

inal

sam

ple

JMS0

0798

. JM

0130

0 ap

pear

s to

mat

ch J

MS0

1305

and

m

ay b

e th

e re

sult

of a

labo

rato

ry s

wap

dur

ing

sam

ple

prep

arat

ion.

Stan

dard

A

l 2O3%

Fe

(%)

SiO

2 (%

) P%

LO

I (%

) Su

pplie

r So

urce

M

ater

ial

Cer

tific

atio

n A

ssay

M

etho

d

GIO

P-01

4 3.

56

61.4

0 5.

27

0.04

0 2.

35

Geo

stat

s M

urch

ison

4

Labs

XR

F

GIO

P-01

5 4.

06

50.7

0 20

.10

0.03

0 1.

31

Geo

stat

s M

urch

ison

4

Labs

XR

F

GIO

P-01

7 3.

28

58.5

0 6.

13

0.06

0 6.

20

Geo

stat

s Pi

lbar

a 4

Labs

XR

F

GIO

P-06

4 2.

56

56.3

2 8.

03

0.03

7 5.

53

Geo

stat

s Pi

lbar

a 5

Labs

XR

F

GIO

P-07

8 2.

48

57.8

3 5.

02

0.04

0 8.

97

Geo

stat

s Pi

lbar

a 5

Labs

XR

F

GIO

P-09

0 1.

63

65.6

2 2.

44

0.15

9 1.

25

Geo

stat

s Pi

lbar

a 5

Labs

XR

F

8 4




SRK

Con

sulti

ng

Appe

ndix

A-6

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

QA

/QC

200

8 •

QA/

QC

pro

toco

ls w

ere

revi

ewed

by

Milt

on (2

009)

. N

o sa

mpl

es w

ere

flagg

ed a

s ha

ving

faile

d Q

A/Q

C a

nd a

ll da

ta

was

inco

rpor

ated

in th

e Fe

brua

ry 2

009

Infe

rred

Min

eral

Res

ourc

e es

timat

e.

• Th

ree

iron

ore

stan

dard

s w

ere

used

– G

IOP8

, 15

and

17 –

and

con

trol c

harts

sho

w a

ssay

ed v

alue

s ag

ains

t ex

pect

ed v

alue

and

lim

its o

f 2SD

. Al

l sam

ples

, exc

ept o

ne, f

ell w

ithin

acc

epta

ble

limits

. •

Fiel

d du

plic

ate

sam

ples

wer

e co

llect

ed a

t a fr

eque

ncy

of 1

in 3

0 fro

m R

C c

hip

sam

ples

. Th

ese

sam

ples

wer

e su

bjec

ted

to th

e sa

me

proc

essi

ng a

nd a

ssay

ing

met

hods

as

norm

al s

ampl

es.

The

regr

essi

on a

naly

sis

indi

cate

s th

at th

e pr

ecis

ion

of th

e re

sults

is w

ithin

acc

epta

ble

leve

ls.

Q

A/Q

C 2

007

• Q

A/Q

C p

roto

cols

are

brie

fly re

view

ed b

y M

ilton

(200

7).

No

sam

ples

wer

e fla

gged

as

havi

ng fa

iled

QA/

QC

and

all

data

was

inco

rpor

ated

into

the

Oct

ober

200

7 In

ferre

d M

iner

al R

esou

rce

estim

ate.

QA/

QC

con

sist

ed o

f fie

ld

dupl

icat

es a

nd s

tand

ard

refe

renc

e m

ater

ials

. O

n pr

ovid

ing

the

assa

y re

sults

, the

labo

rato

ry s

imul

tane

ousl

y pr

ovid

ed th

e re

sults

of i

ts in

tern

al Q

A/Q

C.

Both

labo

rato

ry-in

serte

d an

d Ju

pite

r-ins

erte

d Q

A/Q

C m

ater

ial r

esul

ts

wer

e ch

ecke

d by

Jup

iter t

o en

sure

they

fell

with

in th

e re

quire

d co

ntro

l lim

its o

f 3SD

from

the

expe

cted

val

ue.

QA/

QC

resu

lts w

ere

revi

ewed

gra

phic

ally

in a

tim

e se

quen

ce b

y Ju

pite

r to

iden

tify

any

syst

emic

bia

s. D

uplic

ate

sam

ples

wer

e re

view

ed to

pro

vide

insi

ght i

nto

sam

plin

g pr

oces

ses

and

iden

tify

any

hom

ogen

eity

issu

es.

Q

A/Q

C 2

006

• Ju

pite

r’s c

ontra

ct d

atab

ase

adm

inis

trato

r, rO

REd

ata,

sup

plie

d SR

K w

ith a

ssay

resu

lts a

nd c

ontro

l cha

rts fo

r st

anda

rds

as w

ell a

s re

sults

for d

uplic

ate

anal

ysis

. St

anda

rds

wer

e co

nsid

ered

to h

ave

faile

d w

hen

fallin

g ou

tsid

e 3S

D fr

om th

e ex

pect

ed v

alue

. Le

ss th

an 2

% o

f ass

ayed

sta

ndar

ds fe

ll ou

tsid

e of

con

trol l

imits

. •

Dup

licat

es w

ere

cons

ider

ed to

hav

e fa

iled

if th

e di

ffere

nce

betw

een

orig

inal

and

dup

licat

e as

says

was

>20

%.

Of

the

18 d

uplic

ate

sam

ples

, one

dup

licat

e ha

d an

Fe

assa

y fa

lling

outs

ide

the

20%

lim

it an

d a

furth

er th

ree

dupl

icat

es

had

SiO

2 and

/or A

l 2O3 a

ssay

s fa

lling

outs

ide

of th

e 20

% li

mit.

•

Ove

rall,

SR

K is

sat

isfie

d th

at a

ccep

tabl

e le

vels

of a

ccur

acy

and

prec

isio

n ha

ve b

een

esta

blis

hed

for M

iner

al

Res

ourc

e es

timat

ion

purp

oses

.

Verif

icat

ion

of

sam

plin

g an

d as

sayi

ng

• Th

e ve

rific

atio

n of

sig

nific

ant

inte

rsec

tions

by

eith

er in

depe

nden

t or

alte

rnat

ive

com

pany

per

sonn

el.

• Th

e us

e of

twin

ned

hole

s.

• D

ocum

enta

tion

of p

rimar

y da

ta, d

ata

entry

pro

cedu

res,

dat

a ve

rific

atio

n,

data

sto

rage

(phy

sica

l and

el

ectro

nic)

pro

toco

ls.

• D

iscu

ss a

ny a

djus

tmen

t to

assa

y da

ta.

• Th

e di

gita

l dat

a is

hel

d in

an

MS

Acce

ss d

atab

ase.

Dat

a us

ed in

this

est

imat

ion

wer

e co

llect

ed b

y Ju

pite

r and

pr

ovid

ed to

SR

K in

MS

Acce

ss fo

rmat

(Mt M

ason

_201

1120

8.m

db).

• H

ardc

opy

and

digi

tal d

ata

was

sup

plie

d by

the

labo

rato

ry a

nd fi

led

as p

roje

ct fi

les

and

elec

troni

cally

with

all

prev

ious

pro

ject

dat

a.

• Sa

mpl

es c

olle

cted

pre

-200

9 th

at s

how

ed e

cono

mic

gra

des

of m

iner

alis

atio

n w

ere

subm

itted

to a

sec

ond

labo

rato

ry

for a

naly

sis.

The

resu

lts o

f the

se a

naly

ses

verif

ied

the

orig

inal

ass

ays.

•

All a

ctiv

ities

rela

ting

to s

ampl

ing

and

assa

ying

hav

e be

en c

arrie

d ou

t by

qual

ified

, pro

fess

iona

l ind

epen

dent

pe

rson

(s) o

r com

pani

es n

ot re

late

d to

Jup

iter,

but c

ontra

cted

to c

ompl

ete

spec

ific

task

s. N

o ot

her s

peci

fic

inde

pend

ent v

erifi

catio

n ha

s be

en u

nder

take

n.

• SR

K w

as s

uppl

ied

orig

inal

ass

ay s

heet

s fo

r 201

1 dr

illing

and

sam

plin

g pr

ogra

m o

nly.

•

The

use

of tw

inne

d ho

les

to v

erify

dat

a ha

s no

t bee

n do

ne.

8 5

A N N U A L R E P O R T 2 0 1 8



SRK

Con

sulti

ng

Appe

ndix

A-7

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

• N

o ad

just

men

ts to

the

assa

y da

ta h

ave

been

mad

e.

Loca

tion

of

data

poi

nts

• Ac

cura

cy a

nd q

ualit

y of

sur

veys

use

d to

loca

te d

rill h

oles

(col

lar a

nd d

own -

hole

sur

veys

), tre

nche

s, m

ine

wor

king

s an

d ot

her l

ocat

ions

use

d in

M

iner

al R

esou

rce

estim

atio

n.

• Sp

ecifi

catio

n of

the

grid

sys

tem

use

d.

• Q

ualit

y an

d ad

equa

cy o

f top

ogra

phic

co

ntro

l.

• Th

e co

llar p

ositi

ons

for d

rill h

oles

dril

led

in 1

978

wer

e pi

cked

up

with

a h

andh

eld

GPS

. •

Jupi

ter e

ngag

ed a

lice

nsed

sur

veyo

r, D

ave

Hey

hoe,

dur

ing

Dec

embe

r 200

8 to

pic

k up

all

drill

hole

col

lars

, ge

ogra

phic

al fe

atur

es (t

rack

s an

d su

rvey

poi

nts)

and

to c

arry

out

a g

ridde

d su

rvey

to p

rovi

de A

ustra

lian

Hei

ght

Dat

um d

ata

for a

mor

e de

taile

d co

ntou

r pla

n of

the

area

. •

Dril

l hol

e co

llars

for t

he 2

011

cam

paig

n w

ere

surv

eyed

usi

ng d

iffer

entia

l Rea

l Tim

e Ki

nem

atic

s D

iffer

entia

l GPS

, w

ith a

n el

evat

ion

accu

racy

of 1

.5 m

. •

All c

oord

inat

es w

ere

reco

rded

in U

TM, G

DA

94 z

one

51 s

yste

ms.

Dat

a sp

acin

g an

d di

strib

utio

n

• D

ata

spac

ing

for r

epor

ting

of

Expl

orat

ion

Res

ults

. •

Whe

ther

the

data

spa

cing

and

di

strib

utio

n is

suf

ficie

nt to

est

ablis

h th

e de

gree

of g

eolo

gica

l and

gra

de

cont

inui

ty a

ppro

pria

te fo

r the

Min

eral

R

esou

rce

and

Ore

Res

erve

es

timat

ion

proc

edur

e(s)

and

cl

assi

ficat

ions

app

lied.

•

Whe

ther

sam

ple

com

posi

ting

has

been

app

lied.

• Th

e fir

st d

rillin

g ca

mpa

ign

by J

upite

r was

des

igne

d to

clo

se o

ff th

e M

t Mas

on m

iner

alis

atio

n to

the

north

and

eas

t, an

d to

test

sev

eral

targ

ets

prev

ious

ly re

cogn

ised

in p

relim

inar

y m

appi

ng b

y W

alsh

(200

6).

The

spac

ing

and

loca

tion

of th

e ho

les

wer

e la

rgel

y re

stric

ted

to e

xist

ing

track

s or

are

as th

at h

ad b

een

inve

stig

ated

by

a bo

tani

st a

nd

appr

oved

for m

inim

al c

lear

ing

by th

e D

epar

tmen

t of E

nviro

nmen

t and

Con

serv

atio

n (D

EC).

The

gen

eral

ly fl

at to

m

oder

ate

east

or w

est d

ippi

ng n

atur

e of

the

mai

n po

tent

ial u

nits

ena

bled

the

use

of v

ertic

al d

rillin

g fo

r eva

luat

ing

the

exte

nt o

f min

eral

isat

ion.

Thi

s al

so s

impl

ified

the

clea

ring

requ

irem

ents

and

the

type

of d

rill r

ig th

at c

an b

e us

ed.

The

spac

ing

of th

e ta

rget

dril

l hol

es w

ere

not d

esig

ned

to a

dher

e to

a re

gula

r grid

, but

veg

etat

ion

clea

ring

cond

ition

s.

• Th

e dr

illing

test

ing

of M

t Mas

on w

as la

rgel

y co

nstra

ined

by

envi

ronm

enta

l con

side

ratio

ns a

nd w

as in

itial

ly re

stric

ted

to o

ld tr

acks

and

cle

ared

are

as.

The

2008

pro

gram

was

furth

er re

stric

ted

by fa

una

(Mal

leef

owl)

cons

ider

atio

ns.

This

has

resu

lted

in a

pat

tern

of d

rillin

g th

at is

not

ent

irely

a re

gula

r grid

pat

tern

, but

is lo

osel

y a

50 m

by

50 m

pa

ttern

. •

All d

rillin

g pr

e-20

11 w

as v

ertic

al, a

nd s

ampl

ing

thro

ugh

min

eral

isat

ion

has

been

on

1 m

leng

ths.

•

A to

tal o

f 43

incl

ined

hol

es w

ere

drille

d in

201

1.

• 2

m c

ompo

site

s w

ere

take

n in

som

e ar

eas

of lo

w g

rade

or u

nmin

eral

ised

mat

eria

ls.

Hol

es th

at in

ters

ecte

d si

gnifi

cant

are

as o

f unm

iner

alis

ed ro

ck w

ere

not s

ampl

ed.

• N

o sa

mpl

e co

mpo

sitin

g w

as u

nder

take

n.

Orie

ntat

ion

of

data

in

rela

tion

to

geol

ogic

al

stru

ctur

e

• W

heth

er th

e or

ient

atio

n of

sam

plin

g ac

hiev

es u

nbia

sed

sam

plin

g of

po

ssib

le s

truct

ures

and

the

exte

nt to

w

hich

this

is k

now

n, c

onsi

derin

g th

e de

posi

t typ

e.

• If

the

rela

tions

hip

betw

een

the

drilli

ng

orie

ntat

ion

and

the

orie

ntat

ion

of k

ey

min

eral

ised

stru

ctur

es is

con

side

red

to h

ave

intro

duce

d a

sam

plin

g bi

as,

this

sho

uld

be a

sses

sed

and

repo

rted

if m

ater

ial.

• Su

rface

map

ping

and

dril

ling

resu

lts in

dica

te a

stro

ng s

trike

dire

ctio

n co

ntro

l with

min

eral

isat

ion

exte

ndin

g do

wn

dip.

Whi

le th

e ve

rtica

l dril

l hol

e or

ient

atio

n fo

r pre

-201

1 dr

illing

was

ade

quat

e fo

r Inf

erre

d M

iner

al R

esou

rce

estim

atio

n, in

ord

er to

incr

ease

cla

ssifi

catio

n an

d co

nfid

ence

of m

iner

alis

atio

n, h

oles

in th

e 20

11 c

ampa

ign

wer

e dr

illed

near

orth

ogon

al to

nor

th-n

orth

wes

t stri

ke a

nd s

hallo

w to

mod

erat

e di

ps o

f 20°

to 6

0° to

the

east

. •

A to

tal o

f 43

hole

s ha

ve d

ownh

ole

surv

eys,

and

20

incl

ined

hol

es d

o no

t. T

he d

ownh

ole

surv

ey d

ata

was

revi

ewed

an

d th

e de

viat

ion

in b

oth

bear

ing

and

dip

inve

stig

ated

. Th

e ch

ange

in b

earin

g an

d di

p is

rela

tivel

y sm

all f

or

incl

ined

hol

es; t

he c

hang

e in

bea

ring

is s

igni

fican

t for

ver

tical

hol

es, a

lthou

gh th

e ch

ange

s in

dip

rem

ain

smal

l.

This

is to

be

expe

cted

for v

ertic

al h

oles

whe

re a

ver

y sm

all d

efle

ctio

n ca

n re

sult

in a

sig

nific

ant c

hang

e in

bea

ring.

•

Whi

le v

ertic

al d

rillin

g m

ay h

ave

intro

duce

d so

me

sam

plin

g bi

as, m

ost o

f the

incl

ined

hol

es w

ere

drille

d w

est-

sout

hwes

t, ne

ar o

rthog

onal

to th

e no

rth-n

orth

wes

t stri

ke o

f BIF

uni

ts, a

nd a

t dip

s of

bet

wee

n 85

° an

d 50

° fro

m th

e ho

rizon

tal.

Min

eral

ised

uni

ts h

ave

shal

low

to m

oder

ate

dips

of 2

0° to

60°

to th

e ea

st.

8 6




SRK

Con

sulti

ng

Appe

ndix

A-8

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

• O

vera

ll, s

ampl

ing

bias

is m

inim

al a

nd is

take

n in

to a

ccou

nt in

the

clas

sific

atio

n of

the

Min

eral

Res

ourc

e es

timat

e.

Sam

ple

secu

rity

• Th

e m

easu

res

take

n to

ens

ure

sam

ple

secu

rity.

•

Littl

e is

kno

wn

abou

t sam

ple

secu

rity

pre-

2011

. Fo

r the

201

1 ca

mpa

ign,

fiel

d te

chni

cian

s w

ere

resp

onsi

ble

for

ensu

ring

that

the

sam

ples

wer

e ta

ken

from

the

corre

ct p

iece

of c

ore

and

from

the

corre

ct in

terv

als,

and

that

the

core

was

sam

pled

exa

ctly

to th

e in

terv

al m

arks

. C

ost c

ode

and

hole

num

bers

wer

e no

t ann

otat

ed o

n th

e ite

ms

to

be s

ent t

o th

e la

bora

tory

and

all

deta

ils w

ere

writ

ten

on th

e co

pies

of t

he s

ubm

issi

on s

heet

s re

tain

ed b

y Ju

pite

r.

Indi

vidu

al s

ampl

es w

ere

plac

ed in

pol

y -w

eave

bag

s, s

ecur

ed w

ith c

able

ties

and

shi

pped

to th

e la

bora

tory

for

anal

ysis

. A

reco

rd o

f all

sam

ples

shi

pped

was

reta

ined

by

the

geol

ogis

t sen

ding

the

sam

ple

ship

men

t. S

ampl

e su

bmis

sion

she

ets

wer

e fil

led

out b

y th

e ge

olog

ist b

y cr

eatin

g a

sam

ple

subm

issi

on n

umbe

r. Th

e sh

eet w

as c

opie

d an

d th

e ho

le ID

in th

e ‘In

tern

al U

se O

nly’

box

was

fille

d in

. T h

e sh

eet w

as th

en p

lace

d in

a p

last

ic s

leev

e an

d in

the

sam

ple

subm

issi

ons

fold

er, r

eady

for t

he n

ext c

ourie

r pic

k-up

.

Audi

ts o

r re

view

s •

The

resu

lts o

f any

aud

its o

r rev

iew

s of

sam

plin

g te

chni

ques

and

dat

a.

• SR

K co

nduc

ted

a th

orou

gh re

view

of d

rillin

g ‘S

tand

ard

Ope

ratin

g Pr

oced

ures

’, an

d ‘S

ampl

ing

and

QA/

QC

Pr

otoc

ols’

prio

r to

the

2011

dril

l cam

paig

n.

• N

o in

depe

nden

t aud

it or

revi

ew o

f sam

plin

g te

chni

ques

and

dat

a ha

s be

en u

nder

take

n.

8 7

A N N U A L R E P O R T 2 0 1 8



SRK

Con

sulti

ng

Appe

ndix

A-9

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Sect

ion

2 R

epor

ting

of E

xplo

ratio

n R

esul

ts

(Crit

eria

list

ed in

Sec

tion

1 al

so a

pply

to th

is s

ectio

n.)

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Min

eral

te

nem

ent a

nd

land

tenu

re

stat

us

• Ty

pe, r

efer

ence

nam

e/nu

mbe

r, lo

catio

n an

d ow

ners

hip

incl

udin

g ag

reem

ents

or m

ater

ial i

ssue

s w

ith

third

par

ties

such

as

join

t ven

ture

s,

partn

ersh

ips,

ove

rridi

ng ro

yalti

es,

nativ

e tit

le in

tere

sts,

his

toric

al s

ites,

w

ilder

ness

or n

atio

nal p

ark

and

envi

ronm

enta

l set

tings

. •

The

secu

rity

of th

e te

nure

hel

d at

the

time

of re

porti

ng a

long

with

any

kn

own

impe

dim

ents

to o

btai

ning

a

licen

ce to

ope

rat e

in th

e ar

ea.

• Th

e m

ain

depo

sit f

alls

with

in M

inin

g Le

ase

M29

/408

whi

ch is

who

lly o

wne

d by

Jup

iter M

ines

Lim

ited,

was

gra

nted

on

25

Nov

embe

r 201

1 an

d ex

pire

s on

24

Nov

embe

r 203

2. T

he te

nem

ent i

s bo

unde

d by

Haw

thor

n R

esou

rces

’ te

nem

ent E

29/5

10 (E

xplo

ratio

n) to

the

north

and

the

Jupi

ter t

enem

ent G

29/0

22 (G

ener

al) t

o th

e so

uth.

•

The

Mt M

ason

tene

men

t is

with

in th

e bu

ffer z

one

of a

Prio

rity

Ecol

ogic

al C

omm

unity

, com

mon

ly k

now

n as

the

Band

ed Ir

on F

orm

atio

n (B

IF).

How

ever

, cle

arin

g of

the

mai

n na

tive

vege

tatio

n ty

pe re

quire

d fo

r the

pro

ject

is

estim

ated

to b

e <0

.5%

of p

re-E

urop

ean

exte

nt a

nd th

eref

ore

cons

ider

ed in

sign

ifica

nt in

the

Mur

chis

on B

iore

gion

re

gion

al c

onte

xt.

• Th

e m

ain

envi

ronm

enta

l ris

k fo

r the

pro

ject

rela

tes

to n

atio

nally

sig

nific

ant t

hrea

tene

d sp

ecie

s; p

redo

min

antly

M

alle

efow

l. A

lthou

gh th

ere

is c

urre

ntly

unl

ikel

y to

be

any

dire

ct im

pact

to th

is s

peci

es, t

he p

roje

ct w

ill be

refe

rred

for a

sses

smen

t und

er th

e E

PB

C A

ct fo

r pot

entia

l im

pact

s, a

nd s

ubse

quen

t man

agem

ent c

ondi

tions

will

need

to b

e im

plem

ente

d.

Expl

orat

ion

done

by

othe

r pa

rties

• Ac

know

ledg

men

t and

app

rais

al o

f ex

plor

atio

n by

oth

er p

artie

s.

• Th

e ex

iste

nce

of a

dep

osit

of h

emat

ite a

t Mt M

ason

has

bee

n kn

own

sinc

e 19

12 w

hen

H W

B T

albo

t dis

cove

red

it.

Talb

ot re

fers

to th

e m

iner

alis

atio

n in

GSW

A Bu

lletin

45

as “a

larg

e m

ass

of fi

ne ir

on o

re”.

Supe

rfici

al e

xplo

ratio

n fo

r iro

n or

e an

d pi

gmen

t has

occ

urre

d si

nce

then

. •

The

Geo

logi

cal S

urve

y of

Wes

tern

Aus

tralia

libr

ary

files

pro

vide

som

e in

form

atio

n on

the

grad

es a

nd to

nnag

es o

f lo

w p

hosp

horu

s he

mat

it e s

uita

ble

for s

teel

mak

ing,

incl

udin

g th

e de

tails

of f

ive

surfa

ce s

ampl

es w

hich

gav

e a

com

posi

te g

rade

of 6

2.8%

Fe,

with

0.0

42%

P.

• In

197

8, K

algo

orlie

Sou

ther

n G

oldm

ines

sur

veye

d a

grid

, cut

som

e ac

cess

trac

ks, m

appe

d pa

rt of

Mt M

ason

and

dr

illed

20 s

hallo

w p

ercu

ssio

n ho

les

for i

ron

pigm

ent.

No

quan

titat

ive

anal

yses

for i

ron

wer

e re

cord

ed fo

r the

se

hole

s, b

ut g

ener

al d

escr

iptio

ns o

f the

cut

tings

wer

e re

cord

ed.

• J

F W

alsh

car

ried

out s

urfa

ce m

appi

ng a

nd s

ampl

ing

of M

t Mas

on in

Apr

il 20

05, w

hich

resu

lted

in a

n es

timat

e of

th

e po

tent

ial f

or ir

on o

re a

nd a

pla

n fo

r fur

ther

wor

k on

the

tene

men

t com

pris

ing

a re

view

of a

eria

l pho

togr

aphy

and

m

agne

tic s

urve

ys, a

n en

viro

nmen

tal s

urve

y an

d dr

illing

. •

A re

sour

ce e

stim

ate

was

com

plet

ed in

Aug

ust 2

006

on th

e fir

st n

ine

hole

s dr

illed

into

the

depo

sit.

Base

d on

the

RC

pr

ogra

m o

f dril

l tes

ting

and

the

map

ped

outc

rop

of h

emat

ite m

iner

alis

atio

n, a

n In

ferre

d M

iner

al R

esou

rce

estim

ate

was

com

plet

ed. I

nter

sect

ion

wid

ths

used

in th

e ca

lcul

atio

ns w

ere

base

d on

>55

% F

e cu

t -off.

A 3

D m

odel

of t

he

>55%

Fe,

bas

ed o

n a

set o

f cro

ss s

ectio

n in

terp

reta

tions

link

ing

the

surfa

ce h

emat

ite e

xpre

ssio

n, w

as m

ade.

The

55

% F

e m

iner

alis

atio

n sh

ape

was

then

use

d in

a b

lock

mod

el w

hich

had

a c

ell s

ize

of 1

0 m

nor

th s

outh

, 5 m

eas

t w

est a

nd 2

m v

erti c

ally

. Th

e or

e sh

ape

was

use

d to

con

stra

in a

n es

timat

e of

the

grad

es u

sing

an

inve

rse

dist

ance

to

the

pow

er o

f 2 m

etho

ds, s

pher

ical

, pla

nar s

earc

h ou

t to

60 m

radi

us.

An a

vera

ge d

ensi

ty o

f 3.5

t/m

3 was

use

d to

es

timat

e to

nnag

e. O

n th

is b

asis

, the

Mt M

ason

Infe

rred

Min

eral

Res

ourc

e w

as e

stim

ated

.

8 8




SRK

Con

sulti

ng

Appe

ndix

A-1

0

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

• D

urin

g Ju

ly 2

007,

a s

econ

d dr

illing

pro

gram

was

car

ried

out a

t Mt M

ason

and

pot

entia

l oth

er m

iner

alis

ed ta

rget

s.

This

pro

gram

of 1

2 ho

les

test

ed th

e du

e ea

st d

ownd

ip a

nd to

the

north

stri

ke e

xten

t of t

he h

emat

ite m

iner

alis

atio

n,

as w

ell a

s so

me

BIF

targ

ets.

In O

ctob

er 2

007,

Har

droc

k M

inin

g C

onsu

ltant

s co

mpl

eted

a M

iner

al R

esou

rce

estim

ate

in a

ccor

danc

e w

ith th

e JO

RC

Cod

e (2

004)

, usi

ng th

is n

ew d

ata.

The

reso

urce

rem

aine

d op

en b

oth

to th

e no

rthea

st a

nd s

outh

afte

r the

pro

gram

. •

An u

pdat

e to

the

Min

eral

Res

ourc

e w

as e

stim

ated

by

Har

droc

k M

inin

g C

onsu

ltant

s (in

acc

orda

nce

with

the

JOR

C

Cod

e (2

004)

, bas

ed o

n fu

rther

dril

ling

in 2

008.

•

SRK

used

furth

er d

rillin

g (R

C a

nd D

D) t

o re

port

an u

pdat

ed M

iner

al R

esou

rce

in F

ebru

ary

2012

in a

ccor

danc

e w

ith

the

JOR

C C

ode

(200

4).

Geo

logy

•

Dep

osit

type

, geo

logi

cal s

ettin

g an

d st

yle

of m

iner

alis

atio

n.

• Th

e M

t Mas

on ir

on o

re d

epos

it oc

curs

with

in th

e M

t Ida

Gre

enst

one

Belt.

The

Ida

Faul

t for

ms

a pr

omin

ent

stru

ctur

al fe

atur

e of

the

Mt I

da G

reen

ston

e Be

lt an

d m

arks

the

boun

dary

bet

wee

n th

e So

uthe

rn C

ross

and

Eas

tern

G

oldf

ield

s G

rani

te–G

reen

ston

e Te

rrane

s.

• Th

e M

t Mas

on a

rea

was

map

ped

in d

etai

l by

Jack

Wal

sh (2

005)

. Th

is m

appi

ng re

cogn

ised

out

crop

ping

mas

sive

he

mat

ite, “

shal

y he

mat

ite” z

ones

, iro

n-ric

h BI

F, ir

on-p

oor B

IF a

nd “C

anga

” ore

s th

at fo

rm th

e pr

omin

ent M

t Mas

on

hill

and

imm

edia

tely

sur

roun

ding

are

as.

This

type

of d

epos

it is

like

thos

e in

the

Kool

yano

bbin

g an

d M

t Win

darli

ng

area

s to

the

sout

h an

d w

est o

f Mt M

ason

. •

Und

erly

ing

rock

s of

the

leas

e ar

ea a

re A

rche

an in

age

and

are

con

side

red

part

of th

e M

ulga

bbie

For

mat

ion.

Th

e m

ain

units

out

crop

ping

in th

e ar

ea a

re B

IF w

ith m

inor

ass

ocia

ted

shal

es a

nd ra

re c

hert

band

s. B

asal

ts a

nd

dole

rites

out

crop

alo

ng th

e ce

ntra

l are

a of

the

leas

e on

the

wes

tern

sid

e of

the

mai

n sc

arp,

gra

nite

s in

the

sout

hwes

t cor

ner o

f the

leas

e ar

e ty

pica

lly o

verla

in b

y a

sand

pla

in.

• BI

F un

its s

trike

NN

W a

nd d

ip to

war

ds th

e ea

st a

t ang

les

of 2

0° to

60°

. BI

F un

its a

t Mt M

ason

are

cut

by

a W

NW

-st

rikin

g fa

ult d

ippi

ng a

t 80°

tow

ards

the

north

. A

dist

inct

zon

e of

bre

ccia

tion

and

quar

tz v

eini

ng a

ssoc

iate

d w

ith th

is

faul

t cro

ss-c

uts

the

BIF

units

. W

eath

erin

g as

soci

ated

with

this

faul

t res

ulte

d in

a s

ubst

antia

l bod

y of

mas

sive

to

bedd

ed h

emat

ite.

The

hem

atite

bod

y ou

tcro

ps o

ver a

n ap

prox

imat

e st

rike

leng

th o

f 600

m a

nd w

idth

of 1

50 m

. At

the

sout

h en

d of

the

hem

atite

bod

y, a

noth

er N

NW

stri

ke fa

ult m

ay c

ut th

e BI

F, a

lthou

gh fi

eld

evid

ence

is n

ot

stro

ng.

SRK

inte

rpre

ted

this

iden

tifie

d fa

ult a

s an

alte

ratio

n bo

unda

ry w

ith m

inor

dis

plac

emen

t. •

Hem

atite

min

eral

isat

ion

is b

elie

ved

to h

ave

form

ed b

y en

richm

ent o

f the

iron

con

tent

of B

IF a

nd a

ltera

tion

of

mag

netit

e to

hem

atite

by

the

pass

age

of ir

on-ri

ch w

ater

thro

ugh

the

syst

em.

Enric

hmen

t is

loca

lised

and

littl

e is

kn

own

abou

t its

con

trols

. H

emat

isat

ion

gene

rally

app

ears

to b

e bo

unde

d by

sha

le u

nits

whi

ch th

emse

lves

in s

ome

case

s ar

e pa

rtial

ly m

iner

alis

ed.

Faul

ts a

nd fo

ldin

g ha

ve b

een

iden

tifie

d as

pos

sibl

e im

porta

nt c

ontro

ls in

flui

d flo

w.

The

boun

dary

bet

wee

n “h

emat

ised

” and

BIF

uni

ts c

an b

e sh

arp

(ove

r 1 m

) or g

rada

tiona

l (se

vera

l met

res)

. G

ener

ally

, the

who

le m

iner

alis

ed s

eque

nce

dips

bet

wee

n 50

° an

d 60

° to

the

east

. Th

e ba

se o

f the

hem

atis

ed B

IF

over

lies

undi

ffere

ntia

ted

dole

rite

and

maf

ic ro

cks.

The

re is

re-c

emen

ted

hem

atite

rubb

le te

rmed

“Can

ga” d

epos

it do

wns

lope

of M

t Mas

on, w

hils

t the

nor

ther

n po

rtion

of t

he d

epos

it is

cov

ered

by

sedi

men

ts.

8 9

A N N U A L R E P O R T 2 0 1 8



SRK

Con

sulti

ng

Appe

ndix

A-1

1

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Dril

l hol

e In

form

atio

n •

A su

mm

ary

of a

ll in

form

atio

n m

ater

ial

to th

e un

ders

tand

ing

of th

e ex

plor

atio

n re

sults

incl

udin

g a

tabu

latio

n of

the

follo

win

g in

form

atio

n fo

r all

Mat

eria

l dril

l hol

es:

• ea

stin

g an

d no

rthin

g of

the

drill

hole

co

llar

• el

evat

ion

or R

L (R

educ

ed L

evel

–

elev

atio

n ab

ove

sea

leve

l in

met

res)

of

the

drill

hole

col

lar

• di

p an

d az

imut

h of

the

hole

•

dow

nhol

e le

ngth

and

inte

rcep

tion

dept

h •

hole

leng

th.

• If

the

excl

usio

n of

this

info

rmat

ion

is

just

ified

on

the

basi

s th

at th

e in

form

atio

n is

not

Mat

eria

l and

this

ex

clus

ion

does

not

det

ract

from

the

unde

rsta

ndin

g of

the

repo

rt, th

e C

ompe

tent

Per

son

shou

ld c

lear

ly

expl

ain

why

this

is th

e ca

se.

• N

o ne

w E

xplo

ratio

n R

esul

ts a

re re

porte

d. T

his

repo

rt re

late

s to

Min

eral

Res

ourc

es o

nly.

Dat

a ag

greg

atio

n m

etho

ds

• In

repo

rting

Exp

lora

tion

Res

ults

, w

eigh

ting

aver

agin

g te

chni

ques

, m

axim

um a

nd/o

r min

imum

gra

de

trunc

atio

ns (e

.g. c

uttin

g of

hig

h gr

ades

) and

cut

-off

grad

es a

re

usua

lly M

ater

ial a

nd s

houl

d be

st

ated

. •

Whe

re a

ggre

gate

inte

rcep

ts

inco

rpor

ate

shor

t len

gths

of h

igh

grad

e re

sults

and

long

er le

ngth

s of

lo

w g

rade

resu

lts, t

he p

roce

dure

us

ed fo

r suc

h ag

greg

atio

n sh

ould

be

stat

ed a

nd s

ome

typi

cal e

xam

ples

of

such

agg

rega

tions

sho

uld

be s

how

n in

det

ail.

• Th

e as

sum

ptio

ns u

sed

for a

ny

repo

rting

of m

etal

equ

ival

ent v

alue

s sh

ould

be

clea

rly s

tate

d.

• N

o ne

w E

xplo

ratio

n R

esul

ts a

re re

porte

d. T

his

repo

rt re

late

s to

Min

eral

Res

ourc

es o

nly.

9 0




SRK

Con

sulti

ng

Appe

ndix

A-1

2

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Rel

atio

nshi

p be

twee

n m

iner

alis

atio

n w

idth

s an

d in

terc

ept

leng

ths

• Th

ese

rela

tions

hips

are

par

ticul

arly

im

porta

nt in

the

repo

rting

of

Expl

orat

ion

Res

ults

. •

If th

e ge

omet

ry o

f the

min

eral

isat

ion

with

resp

ect t

o th

e dr

ill ho

le a

ngle

is

know

n, it

s na

ture

sho

uld

be re

porte

d.

• If

it is

not

kno

wn

and

only

the

dow

nhol

e le

ngth

s ar

e re

porte

d, th

ere

shou

ld b

e a

clea

r sta

tem

ent t

o th

is

effe

ct (e

.g. ‘

dow

n ho

le le

ngth

, tru

e w

idth

not

kno

wn’

).

• N

o ne

w E

xplo

ratio

n R

esul

ts a

re re

porte

d. T

his

repo

rt re

late

s to

Min

eral

Res

ourc

es o

nly.

Dia

gram

s •

Appr

opria

te m

aps

and

sect

ions

(with

sc

ales

) and

tabu

latio

ns o

f int

erce

pts

shou

ld b

e in

clud

ed fo

r any

sig

nific

ant

disc

over

y be

ing

repo

rted

Thes

e sh

ould

incl

ude,

but

not

be

limite

d to

a

plan

vie

w o

f dril

l hol

e co

llar l

ocat

ions

an

d ap

prop

riate

sec

tiona

l vie

ws.

• N

o ne

w E

xplo

ratio

n R

esul

ts a

re re

porte

d. T

his

repo

rt re

late

s to

Min

eral

Res

ourc

es o

nly.

Bala

nced

re

porti

ng

• W

here

com

preh

ensi

ve re

porti

ng o

f al

l Exp

lora

tion

Res

ults

is n

ot

prac

ticab

le, r

epre

sent

ativ

e re

porti

ng

of b

oth

low

and

hig

h gr

ades

and

/or

wid

ths

shou

ld b

e pr

actic

ed to

avo

id

mis

lead

ing

repo

rting

of E

xplo

ratio

n R

esul

ts.

• N

o ne

w E

xplo

ratio

n R

esul

ts a

re re

porte

d. T

his

repo

rt re

late

s to

Min

eral

Res

ourc

es o

nly.

Oth

er

subs

tant

ive

expl

orat

ion

data

• O

ther

exp

lora

tion

data

, if m

eani

ngfu

l an

d m

ater

ial,

shou

ld b

e re

porte

d in

clud

ing

(but

not

lim

ited

to):

geol

ogic

al o

bser

vatio

ns; g

eoph

ysic

al

surv

ey re

sults

; geo

chem

ical

sur

vey

resu

lts; b

ulk

sam

ples

– s

ize

and

met

hod

of tr

eatm

ent;

met

allu

rgic

al

test

resu

lts; b

ulk

dens

ity,

grou

ndw

ater

, geo

tech

nica

l and

rock

ch

arac

teris

tics;

pot

entia

l del

eter

ious

or

con

tam

inat

ing

subs

tanc

es.

• N

o ne

w E

xplo

ratio

n R

esul

ts a

re re

porte

d. T

his

repo

rt re

late

s to

Min

eral

Res

ourc

es o

nly.

9 1

A N N U A L R E P O R T 2 0 1 8



SRK

Con

sulti

ng

Appe

ndix

A-1

3

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Furth

er w

ork

• Th

e na

ture

and

sca

le o

f pla

nned

fu

rther

wor

k (e

.g. t

ests

for l

ater

al

exte

nsio

ns o

r dep

th e

xten

sion

s or

la

rge-

scal

e st

ep-o

ut d

rillin

g).

• D

iagr

ams

clea

rly h

ighl

ight

ing

the

area

s of

pos

sibl

e ex

tens

ions

, in

clud

ing

the

mai

n ge

olog

ical

in

terp

reta

tions

and

futu

re d

rillin

g ar

eas,

pro

vide

d th

is in

form

atio

n is

no

t com

mer

cial

ly s

ensi

tive.

• N

o ne

w E

xplo

ratio

n R

esul

ts a

re re

porte

d. T

his

repo

rt re

late

s to

Min

eral

Res

ourc

es o

nly.

9 2




SRK

Con

sulti

ng

Appe

ndix

A-1

4

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Sect

ion

3 Es

timat

ion

and

Rep

ortin

g of

Min

eral

Res

ourc

es

(Crit

eria

list

ed in

sec

tion

1, a

nd w

here

rele

vant

in s

ectio

n 2,

als

o ap

ply

to th

is s

ectio

n.)

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Dat

abas

e in

tegr

ity

• M

easu

res

take

n to

ens

ure

that

da

ta h

as n

ot b

een

corru

pted

by,

fo

r exa

mpl

e, tr

ansc

riptio

n or

ke

ying

erro

rs, b

etw

een

its in

itial

co

llect

ion

and

its u

se fo

r Min

eral

R

esou

rce

estim

atio

n pu

rpos

es.

• D

ata

valid

atio

n pr

oced

ures

use

d.

• Ju

pite

r too

k re

spon

sibi

lity

for d

ata

colle

ctio

n an

d su

pplie

d th

e da

taba

se fo

r Mt M

ason

to S

RK

in M

S Ac

cess

form

at (M

t M

ason

_201

1120

8.m

db).

The

cut

-off

date

for a

ll da

ta is

8 D

ecem

ber 2

011.

A s

umm

ary

of th

e da

taba

se ta

bles

is

show

n be

low

: Tabl

e D

escr

iptio

n R

ecor

ds

Col

lar

Col

lar c

oord

inat

e da

ta fo

r dril

l hol

es

111

Assa

y D

rill h

ole

XRF

assa

y da

ta

(incl

udin

g 11

51 S

G v

ia p

ycno

met

er a

nd 2

11 S

G b

ulk

mea

sure

men

ts)

4,54

7

Surv

ey

Dow

nhol

e su

rvey

dat

a (g

yro

and

colla

r) 66

9

MM

_Lith

o Li

thol

ogy

code

s 3,

015

MM

_Bul

k_D

ensi

ty

Bulk

den

sity

dat

a fo

r BH

ID 1

1MM

DH

028

22

MM

_Nito

n_Fi

eld_

Mag

sus

Han

dhel

d XR

F re

adin

gs (i

nclu

ding

806

fiel

d m

agne

tic s

usce

ptib

ility

read

ings

) 2,

416

MM

_RQ

D_C

orel

oss

RQ

D n

umbe

rs a

nd re

cord

ed c

ore

loss

1,

618

•

SRK

revi

ewed

and

val

idat

ed th

e da

taba

se, n

otin

g a

smal

l num

ber o

f erro

rs.

Thes

e va

lidat

ion

erro

rs a

nd c

orre

ctiv

e ac

tion

take

n (E

rror

! Ref

eren

ce s

ourc

e no

t fou

nd. i

n m

ain

body

of r

epor

t).

Hol

e-ID

Va

lidat

ion

erro

r St

atus

08R

CM

M01

9 08

RC

MM

020

11M

MR

C00

9 11

MM

DH

016

11M

MD

H02

9

Plan

ned,

but

not

dril

led

Hol

es re

mov

ed fr

om d

atab

ase

11M

MD

H02

5 11

MM

DH

026

11M

MD

H02

8

Inco

rrect

col

lar c

o-or

dina

tes

in c

olla

r tab

le

Hol

e re

mov

ed fr

om d

atab

ase

9 3

A N N U A L R E P O R T 2 0 1 8



SRK

Con

sulti

ng

Appe

ndix

A-1

5

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Hol

e-ID

Va

lidat

ion

erro

r St

atus

MM

RC

107

MM

RC

117

08R

CM

M01

2 08

RC

MM

013

11M

MD

H02

4 11

MM

DH

026

11M

MD

H02

8

Blan

k re

cord

s in

ass

ay ta

ble

Rec

ords

rem

oved

from

dat

abas

e

•

SRK

is s

atis

fied

that

the

Min

eral

Res

ourc

e St

atem

ent i

s ba

sed

on a

n ap

prop

riate

ly c

ompr

ehen

sive

pro

cess

of

chec

king

by

Jupi

ter.

SR

K di

d no

t det

ect a

ny o

bvio

us e

rrors

.

Site

vis

its

• C

omm

ent o

n an

y si

te v

isits

un

derta

ken

by th

e C

ompe

tent

Pe

rson

and

the

outc

ome

of th

ose

visi

ts.

• If

no s

ite v

isits

hav

e be

en

unde

rtake

n in

dica

te w

hy th

is is

th

e ca

se.

• Se

vera

l SR

K co

nsul

tant

s vi

site

d si

te fr

om 2

010

to 2

012.

The

Com

pete

nt P

erso

n co

nduc

ted

map

ping

and

a Q

A/Q

C

site

vis

it to

the

adja

cent

Mt I

da d

epos

it. J

upite

r inf

orm

ed S

RK

that

no

addi

tiona

l exp

lora

tion

has

been

con

duct

ed a

t M

t Mas

on s

ince

rele

ase

of th

e pr

evio

us M

iner

al R

esou

rce

estim

ate

in F

ebru

ary

2012

. Th

eref

ore,

no

site

vis

it to

Mt

Mas

on h

as b

een

unde

rtake

n by

SR

K si

nce

Nov

embe

r 201

1.

Geo

logi

cal

inte

rpre

tatio

n •

Con

fiden

ce in

(or c

onve

rsel

y, th

e un

certa

inty

of)

the

geol

ogic

al

inte

rpre

tatio

n of

the

min

eral

de

posi

t. •

Nat

ure

of th

e da

ta u

sed

and

of

any

assu

mpt

ions

mad

e.

• Th

e ef

fect

, if a

ny, o

f alte

rnat

ive

inte

rpre

tatio

ns o

n M

iner

al

Res

ourc

e es

timat

ion.

•

The

use

of g

eolo

gy in

gui

ding

an

d co

ntro

lling

Min

eral

Res

ourc

e es

timat

ion.

•

The

fact

ors

affe

ctin

g co

ntin

uity

bo

th o

f gra

de a

nd g

eolo

gy.

• SR

K co

nstru

cted

a 3

D g

eolo

gy m

odel

whi

ch fo

rms

one

of th

e in

puts

to th

e M

iner

al R

esou

rce

bloc

k m

odel

. Th

e ge

olog

ical

mod

el c

aptu

res

the

geol

ogy

at a

sca

le a

ppro

pria

te fo

r the

ant

icip

ated

larg

e to

nnag

e bu

lk m

inin

g, a

nd ta

kes

the

geol

ogic

ally

via

ble

scal

es o

f min

ing

sele

ctiv

ity in

to c

onsi

dera

tion:

-

Nor

th Z

one:

Thi

s is

the

mai

n D

SO h

emat

ite b

ody

and

is s

truct

ural

ly c

onst

rain

ed b

y a

NN

E tre

ndin

g fa

ult t

o th

e w

est a

nd a

n N

E tre

ndin

g al

tera

tion

boun

dary

to th

e ea

st.

- So

uth

Zone

: Pr

edom

inan

tly u

nalte

red

BIF

with

“poc

kets

” of h

igh-

grad

e he

mat

ite g

ener

ally

clo

se to

sur

face

. -

Can

ga:

Det

rital

dep

osit

form

ed b

y th

e w

eath

erin

g an

d tra

nspo

rtatio

n of

und

erly

ing

Nor

th Z

one

and

Sout

h Zo

ne

units

, whi

ch c

onta

ins

elev

ated

iron

pro

xim

al to

Nor

th Z

one

units

, but

is g

ener

ally

hig

h in

det

rital

ele

men

ts.

- In

tern

al w

aste

: Fou

r int

erna

l sha

le u

nits

with

in th

e N

orth

and

Sou

th z

ones

term

ed W

aste

A, B

, C a

nd E

. -

Exte

rnal

was

te:

Und

iffer

entia

ted

was

te m

ater

ial o

utsi

de o

f the

Nor

th a

nd S

outh

zon

es.

• Th

ere

is a

hig

h co

nfid

ence

leve

l in

the

geol

ogic

al in

terp

reta

tion

of th

e m

iner

al d

epos

it. I

t is

wel

l mod

elle

d fro

m lo

ggin

g co

des

and

the

geol

ogic

al m

odel

ler c

ondu

cted

a 3

-day

site

vis

it w

hich

add

ress

ed a

nd re

ctifi

ed s

ome

inco

nsis

tenc

ies

in

logg

ing

and

field

mag

netic

sus

cept

ibilit

y da

ta.

• Th

ere

appe

ars

to b

e lim

ited

scop

e fo

r alte

rnat

ive

inte

rpre

tatio

ns.

It is

con

side

red

unlik

ely

that

alte

rnat

ive

inte

rpre

tatio

ns w

ould

hav

e a

subs

tant

ial i

mpa

ct o

n th

e M

iner

al R

esou

rce

estim

ate,

due

to th

e ge

ner a

lly c

lose

spa

cing

of

the

data

poi

nts

and

the

tabu

lar n

atur

e of

the

BIF

units

.

9 4




SRK

Con

sulti

ng

Appe

ndix

A-1

6

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

• H

emat

isat

ion

gene

rally

app

ears

to b

e bo

unde

d by

sha

le u

nits

whi

ch th

emse

lves

, in

som

e ca

ses,

are

par

tially

m

iner

alis

ed.

Faul

ts a

nd fo

ldin

g ha

ve b

een

iden

tifie

d as

pos

sibl

e im

porta

nt c

ontro

ls in

flui

d flo

w.

The

boun

dary

be

twee

n “h

emat

ised

” and

BIF

uni

ts c

an b

e sh

arp

(ove

r 1 m

) or g

rada

tiona

l (se

vera

l met

res)

. G

ener

ally

, the

who

le

min

eral

ised

seq

uenc

e di

ps b

etw

een

50º a

nd 6

0º to

the

east

. Th

e ba

se o

f the

hem

atis

ed B

IF o

verli

es u

ndiff

eren

tiate

d do

lerit

e an

d m

afic

rock

s.

• Th

e m

iner

alis

ed z

ones

wer

e tre

ated

hav

ing

hard

bou

ndar

ies

durin

g gr

ade

estim

atio

n, w

hile

the

oxid

atio

n bo

unda

ries

wer

e tre

ated

as

soft

boun

darie

s, d

ue to

thei

r gra

datio

nal n

atur

e.

• Th

e m

ajor

fact

or a

ffect

ing

the

cont

inui

ty o

f bot

h gr

ade

and

geol

ogy

is fa

ultin

g. M

iner

alis

atio

n is

bou

nded

in th

e no

rth

by a

maj

or W

NW

faul

t dip

ping

80°

tow

ards

the

north

. A

dist

inct

zon

e of

bre

ccia

tion

and

quar

tz v

eini

ng a

ssoc

iate

d w

ith th

is fa

ult c

ross

-cut

s th

e BI

F un

its.

Wea

ther

ing

asso

ciat

ed w

ith th

is fa

ult r

esul

ted

in a

sub

stan

tial b

ody

of m

assi

ve

to b

edde

d he

mat

ite.

Min

eral

isat

ion

is b

ound

ed in

the

sout

h by

NN

W s

triki

ng fa

ult.

BIF

uni

ts s

trike

NN

W a

nd d

ip

tow

ards

the

east

at a

ngle

s of

20°

to 6

0°. T

hese

faul

t sur

face

s w

ere

treat

e d a

s ha

rd b

ound

arie

s du

ring

estim

atio

n.

Dim

ensi

ons

• Th

e ex

tent

and

var

iabi

lity

of th

e M

iner

al R

esou

rce

expr

esse

d as

le

ngth

(alo

ng s

trike

or

othe

rwis

e), p

lan

wid

th, a

nd d

epth

be

low

sur

face

to th

e up

per a

nd

low

er li

mits

of t

he M

iner

al

Res

ourc

e.

• Th

e he

mat

ite b

ody

outc

rops

ove

r an

appr

oxim

ate

strik

e le

ngth

of 6

00 m

and

wid

th o

f 150

m.

The

dept

h of

the

oreb

ody

was

mod

elle

d do

wn

to 3

50 m

RL

or a

ppro

xim

atel

y 20

0 m

ver

tical

relie

f. •

Boun

dary

ana

lysi

s w

as c

arrie

d ou

t to

dete

rmin

e th

e na

ture

of g

eolo

gica

l bou

ndar

ies.

Sof

t bou

ndar

ies

rang

ing

betw

een

1 m

and

3 m

wer

e ap

plie

d to

all

boun

darie

s, w

ith th

e ex

cept

ion

of th

e bo

ttom

con

tact

of t

he C

anga

, and

m

ajor

faul

ts b

ound

ing

the

Nor

th a

nd S

outh

zon

es.

• A

sum

mar

y of

app

lied

boun

darie

s is

giv

en in

in m

ain

body

of r

epor

t.

Estim

atio

n an

d m

odel

ling

tech

niqu

es

• Th

e na

ture

and

app

ropr

iate

ness

of

the

estim

atio

n te

chni

que(

s)

appl

ied

and

key

assu

mpt

ions

, in

clud

ing

treat

men

t of e

xtre

me

grad

e va

lues

, dom

aini

ng,

inte

rpol

atio

n pa

ram

eter

s an

d m

axim

um d

ista

nce

of

extra

pola

tion

from

dat

a p o

ints

. If

a co

mpu

ter a

ssis

ted

estim

atio

n m

etho

d w

as c

hose

n, in

clud

e a

desc

riptio

n of

com

pute

r sof

twar

e an

d pa

ram

eter

s us

ed.

• Th

e av

aila

bilit

y of

che

ck

estim

ates

, pre

viou

s es

timat

es

and/

or m

ine

prod

uctio

n re

cord

s an

d w

heth

er th

e M

iner

al

Res

ourc

e es

timat

e ta

kes

appr

opria

te a

ccou

nt o

f suc

h da

ta.

• Th

e as

sum

ptio

ns m

ade

rega

rdin

g re

cove

ry o

f by -

prod

ucts

.

• Es

timat

es w

are

carri

ed fo

r all

dom

ains

for:

- G

rade

s of

Fe,

SiO

2, Al

2O3,

P, C

aO, M

gO, S

and

LO

I -

Den

sity

•

Estim

atio

n m

etho

ds in

clud

ed:

- O

rdin

ary

Krig

ing

(OK)

, whi

ch w

as u

sed

for a

ll N

orth

and

Sou

th z

ones

for F

e, S

iO2 a

nd A

l 2O3 g

rade

s -

Inve

rse

dist

ance

squ

ared

, use

d in

Can

ga a

nd W

aste

dom

ains

as

wel

l as

for P

, CaO

, MgO

, S a

nd L

OI g

rade

s w

ithin

Nor

th a

nd S

outh

zon

es, a

nd D

ensi

ty.

• In

und

erta

king

the

OK

estim

ates

, blo

cks

size

, dis

cret

isat

ion,

num

ber o

f sam

ples

and

sea

rche

s w

ere

optim

ised

for F

e so

that

blo

cks

in th

e be

st d

rille

d ar

eas

will

have

an

unbi

ased

est

imat

e, i.

e. th

e sl

ope

of re

gres

sion

Z|Z

* is

clos

e to

1.

The

met

hod

follo

ws

that

set

out

by

Vann

et a

l (20

03).

The

resu

lts o

f the

Krig

ing

neig

hbou

rhoo

d an

alys

is w

ere

appl

ied

to o

ther

Krig

ed g

rade

s.

• Th

e pr

edom

inan

t ass

ay s

ampl

e le

ngth

was

1 m

and

the

flagg

ed d

ata

was

com

posi

ted

to 1

m le

ngth

s us

ing

the

geol

ogic

al d

omai

ns to

con

trol t

he c

ompo

sitin

g. D

omai

ning

was

des

crib

ed in

the

sect

ion

on g

eolo

gica

l int

erpr

etat

ion.

Ba

sic

stat

istic

s be

twee

n co

mpo

site

d an

d un

com

posi

ted

data

com

pare

d w

ell,

indi

catin

g th

e se

lect

ed c

ompo

site

leng

th

to b

e ap

prop

riate

. •

To o

ptim

ise

bloc

k si

ze, a

ser

ies

of d

iffer

ent b

lock

siz

es w

ere

Krig

ed a

nd th

e re

sults

of a

sin

gle

wel

l-inf

orm

ed b

lock

an

d po

orly

info

rmed

blo

ck re

view

ed.

A pa

rent

blo

ck s

ize

of 2

5 (X

) x 2

5 (Y

) x 6

(Z) w

as s

elec

ted.

•

To o

ptim

ise

the

num

ber o

f dis

cret

isat

ion

poin

ts, b

lock

s w

ere

Krig

ed w

ith a

ser

ies

of d

iffer

ent d

iscr

etis

atio

n po

ints

and

th

e re

sults

of a

sin

gle

wel

l -inf

orm

ed b

lock

and

a p

oorly

info

rmed

blo

ck re

view

ed.

A di

scre

tisat

ion

of 3

(X) x

3 (Y

) x 3

(Z

) was

sel

ecte

d.

9 5

A N N U A L R E P O R T 2 0 1 8



SRK

Con

sulti

ng

Appe

ndix

A-1

7

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

• Es

timat

ion

of d

elet

erio

us

elem

ents

or o

ther

non

-gra

de

varia

bles

of e

cono

mic

si

gnifi

canc

e (e

.g. s

ulph

ur fo

r aci

d m

ine

drai

nage

cha

ract

eris

atio

n).

• In

the

case

of b

lock

mod

el

inte

rpol

atio

n, th

e bl

ock

size

in

rela

tion

to th

e av

erag

e sa

mpl

e sp

acin

g an

d th

e se

arch

em

ploy

ed.

• An

y as

sum

ptio

ns b

ehin

d m

odel

ling

of s

elec

tive

min

ing

units

. •

Any

assu

mpt

ions

abo

ut

corre

latio

n be

twee

n va

riabl

es.

• D

escr

iptio

n of

how

the

geol

ogic

al

inte

rpre

tatio

n w

as u

sed

to c

ontro

l th

e re

sour

ce e

stim

ates

. •

Dis

cuss

ion

of b

asis

for u

sing

or

not u

sing

gra

de c

uttin

g or

ca

ppin

g.

• Th

e pr

oces

s of

val

idat

ion,

the

chec

king

pro

cess

use

d, th

e co

mpa

rison

of m

odel

dat

a to

dril

l ho

le d

ata,

and

use

of

reco

ncilia

tion

data

if a

vaila

ble.

• To

opt

imis

e th

e nu

mbe

r of s

ampl

es in

form

ing

a si

ngle

blo

ck, a

ser

ies

of K

rigin

g es

timat

ions

wer

e ru

n w

ith a

var

iabl

e nu

mbe

r of s

ampl

es a

nd th

e re

sults

of a

sin

gle

wel

l -inf

orm

ed b

lock

and

a p

oorly

info

rmed

blo

ck re

view

ed.

A m

axim

um

num

ber o

f 30

sam

ples

wer

e se

lect

ed fo

r Fe

in th

e N

orth

Zon

e, S

iO2 i

n bo

th N

orth

and

Sou

th z

ones

and

Al 2O

3 in

the

Nor

th Z

one.

A m

axim

um n

umbe

r of 5

0 sa

mpl

es w

ere

sele

cted

for F

e an

d 60

for A

l 2O3 i

n th

e So

uth

Zone

. •

A nu

mbe

r of K

rigin

g es

timat

ions

eac

h w

ith d

iffer

ent s

earc

h di

stan

ces

wer

e ru

n to

opt

imis

e th

e se

arch

vol

umes

. Th

e re

sults

of a

sin

gle

wel

l -inf

orm

ed b

lock

and

a p

oorly

info

rmed

blo

ck w

ere

revi

ewed

, and

the

sele

cted

sea

rche

s ar

e su

mm

aris

ed b

elow

:

Dom

ain

Varia

ble

Sear

ch d

ista

nce

Krig

ing

effic

ienc

y Sl

ope

of R

egre

ssio

n Su

m n

egat

ive

K

rigin

g w

eigh

ts

1 2

3 W

ell

info

rmed

Po

orly

in

form

ed

Wel

l in

form

ed

Poor

ly

info

rmed

W

ell

info

rmed

Po

orly

in

form

ed

31

Fe

90

50

30

86.5

5 -1

2.48

0.

99

0.40

2.

0 0.

0 31

Si

O2

130

50

30

91.4

8 18

.63

1.00

0.

64

2.8

5.5

31

Al2O

3 80

50

20

83

.89

-1.0

9 1.

00

0.49

0.

9 0.

0 32

Fe

18

0 90

40

84

.46

45.6

4 0.

99

0.91

0.

5 0.

9 32

Si

O2

200

110

60

92.0

2 57

.99

0.99

0.

94

0.4

1.4

32

Al2O

3 12

0 60

30

81

.18

3.59

0.

99

0.56

0.

2 0.

0

• A

sub-

cell

mod

el w

as c

onst

ruct

ed w

ith e

ach

sub-

cell

cont

aini

ng th

e sa

me

geol

ogic

al, d

ensi

ty a

nd g

rade

sub

-dom

ain

as th

e fla

gged

dril

l hol

e da

ta.

The

bloc

k m

odel

par

amet

ers

are

defin

ed in

mai

n bo

dy o

f rep

ort.

• Es

timat

ion

was

per

form

ed u

sing

Dat

amin

e™ s

oftw

are

and

chec

ked

usin

g Is

atis

™ s

oftw

are.

A n

umbe

r of K

rigin

g es

timat

ions

eac

h w

ith d

iffer

ent s

earc

h di

stan

ces

wer

e ru

n to

opt

imis

e th

e se

arch

vol

umes

.

• A

thre

e-pa

ss s

earc

h st

rate

gy w

as u

sed,

with

a d

iscr

etis

atio

n of

3 b

y 3

by 3

, and

var

iabl

e ra

dii d

epen

ding

on

the

elem

ent b

eing

est

imat

ed a

nd th

e do

mai

n.

- Fo

r Fe

estim

atio

n in

the

mai

n BI

F do

mai

n, th

e fir

st s

earc

h us

ed a

n in

itial

radi

us o

f 180

x 9

0 x

40 m

. Fo

r Fe

estim

atio

n in

the

enric

hed

BIF

dom

ain

(Nor

th z

one,

adj

acen

t maj

or fa

ult),

the

first

sea

rch

used

an

initi

al ra

dius

of

90 x

50

x 30

m.

The

seco

nd a

nd th

ird p

asse

s us

ed a

mul

tiplie

d fa

ctor

of 2

(dou

ble)

and

5 re

spec

tivel

y.

A m

inim

um o

f 10

and

max

imum

of 3

0 co

mpo

site

s w

as u

sed

for a

ll se

arch

pas

ses

-

The

sear

ch e

llipso

id s

trike

s at

300

° an

d di

ps 2

0° to

war

d th

e ea

st.

• A

num

ber o

f pre

viou

s es

timat

es w

ere

gene

rate

d by

Har

droc

k M

inin

g C

onsu

ltant

s (p

re-2

011)

and

SR

K in

201

2 (J

OR

C

Cod

e, 2

004

editi

on).

The

new

est

imat

es ta

ke th

ese

earli

er e

stim

ates

into

acc

ount

. N

o m

inin

g ha

s ta

ken

plac

e an

d ac

cord

ingl

y th

ere

are

no p

rodu

ctio

n re

cord

s fo

r use

in re

conc

iliatio

n.

• M

t Mas

on is

con

side

red

prim

arily

a h

emat

ite (D

SO) p

roje

ct, w

ith A

l 2O3,

CaO

, LO

I, M

gO, P

, S a

nd S

iO2 a

s by

-pr

oduc

ts. A

lthou

gh n

o m

etal

lurg

ical

test

wor

k ha

s be

en d

one,

Pro

Met

Eng

inee

rs c

ondu

cted

a s

tudy

bas

ed o

n its

in

tern

al d

atab

ase

and

prev

ious

exp

erie

nce

with

this

sty

le o

f min

eral

isat

ion.

Pro

Met

con

clud

ed th

at te

stw

ork

wou

ld b

e re

quire

d to

inve

stig

ate

the

met

allu

rgic

al c

hara

cter

istic

s an

d vi

abilit

y of

pro

cess

ing.

9 6




SRK

Con

sulti

ng

Appe

ndix

A-1

8

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

• A

stro

ng c

orre

latio

n ex

ists

bet

wee

n Fe

2O3 a

nd S

iO2,

mod

erat

e be

twee

n Fe

2O3 a

nd A

l 2O3 a

nd C

aO, a

nd w

eak

with

all

othe

r ele

men

ts.

No

assu

mpt

ions

rega

rdin

g co

rrela

tion

betw

een

varia

bles

wer

e m

ade

durin

g es

timat

ion,

and

eac

h el

emen

t was

est

imat

ed in

depe

nden

tly.

• A

desc

riptio

n of

how

the

geol

ogic

al in

terp

reta

tion

was

use

d to

con

trol t

he re

sour

ce e

stim

atio

n w

as g

iven

in th

e se

ctio

n on

geo

logi

cal i

nter

pret

atio

n.

• N

o gr

ade

cutti

ng o

r cap

ping

was

app

lied

beca

use

the

grad

e di

strib

utio

ns a

re n

ot s

trong

ly s

kew

ed, a

s in

dica

ted

by

rela

tivel

y lo

w c

oeffi

cien

ts o

f var

iatio

n.

• Th

e qu

ality

of e

stim

ates

was

val

idat

ed b

y se

vera

l met

hodo

logi

es:

- Th

e nu

mbe

r of n

egat

ive

Krig

wei

ghts

, Krig

ing

effic

ienc

y an

d sl

ope

of re

gres

sion

of t

he e

stim

atio

n w

as re

view

ed

and

foun

d to

be

satis

fact

ory.

-

The

bloc

k m

odel

was

vis

ually

val

idat

ed in

cro

ss s

ectio

ns a

s w

ell a

s sw

ath

plot

s of

the

mea

n co

mpo

site

sam

ple

grad

e vs

blo

ck m

odel

gra

de b

y no

rthin

g an

d el

evat

ion.

The

se p

lots

wer

e co

nstru

cted

for t

he N

orth

and

Sou

th

zone

s as

wel

l as

the

Can

ga d

omai

n, a

nd in

mos

t cas

es s

how

ed a

goo

d co

rrel a

tion

betw

een

sam

ple

grad

es a

nd

estim

ated

blo

ck g

rade

s.

- N

o re

conc

iliatio

n da

ta is

ava

ilabl

e be

caus

e no

min

ing

has

take

n pl

ace.

Moi

stur

e •

Whe

ther

the

tonn

ages

are

es

timat

ed o

n a

dry

basi

s or

with

na

tura

l moi

stur

e, a

nd th

e m

etho

d of

det

erm

inat

ion

of th

e m

oist

ure

cont

ent.

• To

nnag

es a

re e

stim

ated

on

a dr

y ba

sis,

and

moi

stur

e co

nten

t has

not

bee

n de

term

ined

.

Cut

-off

para

met

ers

• Th

e ba

sis

of th

e ad

opte

d cu

t-off

grad

e(s)

or q

ualit

y pa

ram

eter

s ap

plie

d.

• Th

e M

t Mas

on M

iner

al R

esou

rce

estim

ate

is re

porte

d at

a c

ut-o

ff gr

ade

of F

e >5

5%.

• Th

e cu

t-off

grad

e w

as c

hose

n on

the

basi

s of

pro

vidi

ng re

ason

able

pro

spec

ts fo

r eve

ntua

l eco

nom

ic e

xtra

ctio

n gi

ven

a m

ultit

ude

of fa

ctor

s, in

clud

ing

mod

ellin

g by

Pro

Met

Eng

inee

rs, l

ong

term

mar

ket p

rices

, and

min

ing

and

proc

essi

ng

cost

s.

• SR

K an

d th

e C

ompe

tent

Per

son

have

ele

cted

to m

aint

ain

a cu

t-off

of F

e >5

5% fo

r con

sist

ency

with

the

prev

ious

es

timat

es a

nd to

mai

ntai

n a

cons

erva

tive

basi

s fo

r the

cur

rent

est

imat

e.

9 7

A N N U A L R E P O R T 2 0 1 8



SRK

Con

sulti

ng

Appe

ndix

A-1

9

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Min

ing

fact

ors

or

assu

mpt

ions

• As

sum

ptio

ns m

ade

rega

rdin

g po

ssib

le m

inin

g m

etho

ds,

min

imum

min

ing

dim

ensi

ons

and

inte

rnal

(or,

if ap

plic

able

, ex

tern

al) m

inin

g di

lutio

n. It

is

alw

ays

nece

ssar

y as

par

t of t

he

proc

ess

of d

eter

min

ing

reas

onab

le p

rosp

ects

for

even

tual

eco

nom

ic e

xtra

ctio

n to

co

nsid

er p

oten

tial m

inin

g m

etho

ds, b

ut th

e as

sum

ptio

ns

mad

e re

gard

ing

min

ing

met

hods

an

d pa

ram

eter

s w

hen

estim

atin

g M

iner

al R

esou

rces

may

not

al

way

s be

rigo

rous

. Whe

re th

is is

th

e ca

se, t

his

shou

ld b

e re

porte

d w

ith a

n ex

plan

atio

n of

the

basi

s of

the

min

ing

assu

mpt

ions

mad

e.

• Th

e pr

opos

ed m

inin

g m

etho

d is

cur

rent

ly a

ssum

ed to

be

all o

pen

pit.

The

est

imat

es in

clud

e al

low

ance

for m

inin

g di

lutio

n in

that

the

pare

nt b

lock

siz

e is

25

x 25

x 3

m a

nd it

may

be

poss

ible

to m

ine

the

reso

urce

s m

ore

sele

ctiv

ely

than

this

. •

Inte

rnal

was

te a

t >55

% F

e is

loca

ted

in a

sin

gle

was

te b

and

with

thic

knes

s <3

m a

nd is

ass

umed

not

to b

e se

lect

ivel

y m

inea

ble.

Int

erna

l was

te c

ontri

bute

s le

ss th

an 0

.5%

tonn

es to

the

over

all r

esou

rce.

Met

allu

rgic

al

fact

ors

or

assu

mpt

ions

• Th

e ba

sis

for a

ssum

ptio

ns o

r pr

edic

tions

rega

rdin

g m

etal

lurg

ical

am

enab

ility.

It is

al

way

s ne

cess

ary

as p

art o

f the

pr

oces

s of

det

erm

inin

g re

ason

able

pro

spec

ts fo

r ev

entu

al e

cono

mic

ext

ract

ion

to

cons

ider

pot

entia

l met

allu

rgic

al

met

hods

, but

the

assu

mpt

ions

re

gard

ing

met

allu

rgic

al tr

eatm

ent

proc

esse

s an

d pa

ram

eter

s m

ade

whe

n re

porti

ng M

iner

al

Res

ourc

es m

ay n

ot a

lway

s be

rig

orou

s. W

here

this

is th

e ca

se,

this

sho

uld

be re

porte

d w

ith a

n ex

plan

atio

n of

the

basi

s of

the

met

allu

rgic

al a

ssum

ptio

ns m

ade.

• O

re p

roce

ssin

g te

stw

ork

was

con

duct

ed o

n th

ree

PQ d

iam

ond

drill

core

sam

ples

to d

eter

min

e w

heth

er h

ighl

y m

iner

alis

ed s

ectio

ns re

quire

d be

nefic

iatio

n an

d if

so, t

o w

hat e

xten

t, to

mee

t a p

rodu

ct s

peci

ficat

ion

of h

igh

iron

and

low

silic

a an

d al

umin

a an

d to

con

duct

dro

p te

sts

on a

ntic

ipat

ed “a

s m

ined

” cor

e sa

mpl

e le

ngth

s to

det

erm

ine

a lu

mp

fines

ratio

. •

The

feed

gra

de is

exp

ecte

d to

be

59.9

% F

e an

d sh

ould

incr

ease

to 6

1.8%

Fe

afte

r rem

oval

of t

he L

OI –

this

val

ue

indi

cate

s th

e le

vel o

f irre

duci

ble

impu

ritie

s in

the

ore

– no

min

ally

9%

, whi

ch is

not

con

side

red

unre

ason

able

. •

The

prop

osal

is to

pro

duce

two

prod

ucts

– lu

mp

and

fines

. Te

stw

ork

show

ed th

at b

oth

lum

p an

d fin

es m

eet t

he

crite

ria fo

r DSO

with

out b

enef

icia

tion.

9 8




SRK

Con

sulti

ng

Appe

ndix

A-2

0

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Envi

ronm

enta

l fa

ctor

s or

as

sum

ptio

ns

• As

sum

ptio

ns m

ade

rega

rdin

g po

ssib

le w

aste

and

pro

cess

re

sidu

e di

spos

al o

ptio

ns. I

t is

alw

ays

nece

ssar

y as

par

t of t

he

proc

ess

of d

eter

min

ing

reas

onab

le p

rosp

ects

for

even

tual

eco

nom

ic e

xtra

ctio

n to

co

nsid

er th

e po

tent

ial

envi

ronm

enta

l im

pact

s of

the

min

ing

and

proc

essi

ng o

pera

tion.

W

hile

at t

his

stag

e th

e de

term

inat

ion

of p

oten

tial

envi

ronm

enta

l im

pact

s,

parti

cula

rly fo

r a g

reen

field

s pr

ojec

t, m

ay n

ot a

lway

s be

wel

l ad

vanc

ed, t

he s

tatu

s of

ear

ly

cons

ider

atio

n of

thes

e po

tent

ial

envi

ronm

enta

l im

pact

s sh

ould

be

repo

rted.

Whe

re th

ese

aspe

cts

have

not

bee

n co

nsid

e red

this

sh

ould

be

repo

rted

with

an

expl

anat

ion

of th

e en

viro

nmen

tal

assu

mpt

ions

mad

e.

• Fl

ora

and

vege

tatio

n su

rvey

s es

tabl

ishe

d th

at th

e co

nditi

on o

f the

veg

etat

ion

in th

e pr

opos

ed d

istu

rban

ce a

rea

is

over

all v

ery

good

to e

xcel

lent

and

no

decl

ared

rare

flor

a or

thre

aten

ed e

colo

gica

l com

mun

ities

wer

e re

cord

ed in

the

area

•

The

prop

osed

cle

arin

g of

veg

etat

ion

will

resu

lt in

the

loss

of s

ome

indi

vidu

als

from

the

loca

l are

a; h

owev

er, t

he im

pact

w

ill no

t be

grea

t eno

ugh

to re

mov

e w

hole

com

mun

ities

or p

opul

atio

ns.

Mos

t of t

he s

peci

es a

nd c

omm

uniti

es

reco

rded

dur

ing

this

sur

vey

are

wid

espr

ead

thro

ugho

ut th

e M

urch

ison

Bio

regi

on a

nd th

eref

ore

the

loss

of a

sm

all

prop

ortio

n fro

m th

is a

rea

will

not b

e si

gnifi

cant

. •

Area

s w

here

the

poss

ible

new

Dro

sera

sp.

are

kno

wn

to o

ccur

sho

uld

be a

void

ed u

ntil

bette

r sam

ple

mat

eria

l can

be

colle

cted

and

pro

vide

d to

the

WAH

ERB,

for i

dent

ifica

tion

and

dete

rmin

atio

n of

its

cons

erva

tion

stat

us.

• Th

e fo

llow

ing

gene

ric re

com

men

datio

ns a

rise

from

the

flora

sur

vey:

-

Any

dist

urba

nce/

cle

arin

g m

ust b

e m

inim

ised

in e

xten

t to

redu

ce th

e lo

ss o

f ind

ivid

uals

and

impa

ct o

n po

pula

tions

-

Wee

d co

ntro

l mea

sure

s m

ust b

e im

plem

ente

d an

d fo

llow

ed d

urin

g an

d af

ter c

onst

ruct

ion

activ

ities

-

A re

habi

litat

ion

plan

sho

uld

be d

evel

oped

so

that

are

as a

re p

rogr

essi

vely

reha

bilit

ated

as

soon

as

they

are

no

long

er re

quire

d;

- D

rivin

g re

stric

tions

sho

uld

be im

plem

ente

d, e

nsur

ing

that

off-

road

driv

ing

is m

inim

ised

-

All s

taff

shou

ld b

e ed

ucat

ed o

n th

e im

porta

nce

of fi

re p

reve

ntio

n, a

nd e

quip

men

t pro

vide

d fo

r use

in th

e ev

ent o

f fir

e.

• In

term

s of

sub

terra

nean

faun

a, th

e lik

elih

ood

of s

tygo

faun

a w

ithin

the

Mt M

ason

pro

ject

are

a is

low

due

to th

e fe

w

inst

ance

s of

wat

er in

ters

ectio

n. T

rogl

ofau

na, o

n th

e ot

her h

and,

hav

e th

e po

tent

ial t

o oc

cur i

n th

e BI

F ra

nges

and

he

nce

shou

ld b

e su

rvey

ed a

ccor

ding

the

EPA

Gui

danc

e St

atem

ent N

o. 5

4A

• Th

e di

strib

utio

n of

the

Fede

rally

-list

ed M

alle

efow

l occ

urs

over

the

proj

ect a

rea

and

this

rare

spe

cies

may

stil

l occ

ur

with

in th

e ha

bita

ts p

rese

nt (O

utba

ck E

colo

gy S

ervi

ces,

200

7). T

wo

Mal

leef

owl m

ound

s ha

ve re

cent

ly b

een

reco

rded

w

ithin

the

proj

ect a

rea.

For

min

ing

appr

oval

s, a

full

verte

brat

e fa

una

surv

ey w

ould

be

requ

ired,

bas

ed o

n th

e Le

vel 2

Su

rvey

des

crib

ed in

EPA

(200

4).

• Su

lphi

de c

onte

nt is

low

, so

acid

min

e dr

aina

ge is

unl

ikel

y to

be

a si

gnifi

cant

pro

blem

. •

Ove

rall,

Jup

iter h

as u

nder

take

n a

num

ber o

f env

ironm

enta

l bas

elin

e st

udie

s in

ord

er to

sup

port

the

appr

oval

s pr

oces

s. S

tudi

es a

nd c

omm

unic

atio

n w

ith re

gula

tors

dem

onst

rate

d th

at e

nviro

nmen

tal i

mpa

cts

will

be m

anag

ed to

le

gisl

ativ

e re

quire

men

ts.

9 9

A N N U A L R E P O R T 2 0 1 8



SRK

Con

sulti

ng

Appe

ndix

A-2

1

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Bulk

den

sity

•

Whe

ther

ass

umed

or

dete

rmin

ed. I

f ass

umed

, the

ba

sis

for t

he a

ssum

ptio

ns. I

f de

term

ined

, the

met

hod

used

, w

heth

er w

et o

r dry

, the

fre

quen

cy o

f the

mea

sure

men

ts,

the

natu

re, s

ize

and

repr

esen

tativ

enes

s of

the

sam

ples

. •

The

bulk

den

sity

for b

ulk

mat

eria

l m

ust h

ave

been

mea

sure

d by

m

etho

ds th

at a

dequ

atel

y ac

coun

t fo

r voi

d sp

aces

(vug

s, p

oros

ity,

etc.

), m

oist

ure

and

diffe

renc

es

betw

een

rock

and

alte

ratio

n zo

nes

with

in th

e de

posi

t. •

Dis

cuss

ass

umpt

ions

for b

ulk

dens

ity e

stim

a tes

use

d in

the

eval

uatio

n pr

oces

s of

the

diffe

rent

mat

eria

ls.

• Fo

r the

pur

pose

of t

he M

iner

al R

esou

rce

estim

ate,

the

bulk

den

sitie

s in

the

assa

y ta

ble

wer

e us

ed to

est

imat

e in

situ

bu

lk d

ensi

ties

for t

he M

t Mas

on d

epos

it. A

tota

l of 2

4 di

amon

d dr

ill ho

les

wer

e sa

mpl

ed fo

r bul

k de

nsity

de

term

inat

ions

. Al

l bul

k de

nsiti

es w

ere

calc

ulat

ed u

sing

a d

ispl

aced

wat

er te

chni

que.

Bul

k de

nsity

sam

ple

leng

ths

rang

ed fr

om 0

.1 m

to 1

.4 m

, with

the

aver

age

inte

rval

bei

ng 0

.7 m

. •

Due

to th

e lim

ited

num

ber o

f bul

k de

nsity

dat

a po

ints

in th

e in

tern

al a

nd e

xter

nal w

aste

uni

ts, t

hese

wer

e co

mbi

ned

into

an

exte

rnal

was

te d

omai

n an

d an

inte

rnal

was

te d

omai

n fo

r the

pur

pose

of e

stim

atin

g de

nsiti

es.

The

dens

ity

stat

istic

s fo

r the

five

den

sity

dom

ains

are

sho

wn

belo

w:

Den

sity

dom

ain

Cou

nt

Min

M

ax

Mea

n Va

r SD

Exte

rnal

was

te

41

1.97

4.

09

3.22

0.

31

0.56

Inte

rnal

was

te

11

2.38

3.

59

3.04

0.

18

0.43

Can

ga

10

3.38

3.

83

3.60

0.

02

0.14

Nor

th Z

one

28

3.19

4.

71

4.21

0.

16

0.40

Sout

h Zo

ne

34

3.01

4.

07

3.54

0.

08

0.28

•

Dry

bul

k de

nsity

at M

t Mas

on is

prim

arily

con

trolle

d by

the

conc

entra

tion

of h

eavy

min

eral

s (h

emat

ite, g

oeth

ite).

In

situ

den

sity

mea

sure

men

ts w

ere

inte

rpol

ated

to g

ive

each

blo

ck a

den

sity

est

imat

e:

- A

thre

e-pa

ss s

earc

h sp

hero

id w

ith d

iam

eter

of 1

00 m

was

use

d fo

r den

sity

inte

rpol

atio

n (In

vers

e D

ista

nce)

usi

ng

the

five

dom

ains

. Th

e se

cond

pas

s us

ed d

oubl

e th

e di

stan

ce o

f the

firs

t, an

d th

e th

ird u

sed

a m

ultip

lied

fact

or o

f 8

and

7 fo

r dom

ains

1 to

3 a

nd 4

to 5

resp

ectiv

ely.

•

Den

sity

inte

rpol

ated

val

ues

wer

e us

ed to

est

imat

e to

nnag

e in

the

reso

urce

mod

els.

1 0 0




SRK

Con

sulti

ng

Appe

ndix

A-2

2

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Cla

ssifi

catio

n •

The

basi

s fo

r the

cla

ssifi

catio

n of

th

e M

iner

al R

esou

rces

into

va

ryin

g co

nfid

ence

cat

egor

ies.

•

Whe

ther

app

ropr

iate

acc

ount

ha

s be

en ta

ken

of a

ll re

leva

nt

fact

ors

(i.e.

rela

tive

conf

iden

ce in

to

nnag

e/gr

ade

esti m

atio

ns,

relia

bilit

y of

inpu

t dat

a,

conf

iden

ce in

con

tinui

ty o

f ge

olog

y an

d m

etal

val

ues,

qu

ality

, qua

ntity

and

dis

tribu

tion

of th

e da

ta).

• W

heth

er th

e re

sult

appr

opria

tely

re

flect

s th

e C

ompe

tent

Per

son’

s vi

ew o

f the

dep

osit.

• Th

e cl

assi

ficat

ion

of th

e M

iner

al R

esou

rce

is b

ased

on

the

follo

win

g fa

ctor

s:

- Q

ualit

y of

the

estim

ate

(Krig

ing

effic

ienc

y an

d sl

ope

of r

egre

ssio

n)

- D

ata

qual

ity (d

ata

qual

ity is

rea

sona

ble

thro

ugho

ut th

e de

posi

t) -

Dat

a qu

antit

y (d

rill d

ensi

ty)

- G

eolo

gica

l con

tinui

ty (g

eolo

gica

l con

tinui

ty is

wel

l est

ablis

hed

from

sur

face

map

ping

and

dril

ling)

-

Gra

de c

ontin

uity

(var

iogr

ams

for

Fe, S

iO2

and

Al 2O

3 sh

ow a

low

nug

get a

nd lo

ng r

ange

s in

dica

ting

good

gra

de

cont

inui

ty).

• A

s ge

olog

ical

con

tinui

ty is

wel

l est

ablis

hed

and

data

qua

lity

reas

onab

le, t

he g

rade

est

imat

ion

para

met

ers

wer

e us

ed to

cl

assi

fy th

e de

posi

t. •

Cla

ssifi

catio

n of

eac

h bl

ock

in th

e M

iner

al R

esou

rce

mod

el w

as b

ased

on:

-

Slo

pe o

f reg

ress

ion

- K

rigin

g ef

ficie

ncy

- N

umbe

r of

sam

ples

use

d to

est

imat

e th

e bl

ock

- S

earc

h vo

lum

e in

whi

ch th

e bl

ock

was

est

imat

ed.

• A

qua

lity

fact

or w

as a

ssig

ned

to e

ach

of th

ree

varia

bles

, Fe,

SiO

2 an

d A

l 2O3,

for

each

of t

he th

ree

min

eral

ised

dom

ains

–

Nor

th, S

outh

and

Can

ga.

The

qual

ity fa

ctor

was

det

erm

ined

by

sum

min

g th

e nu

mbe

r of

poi

nts

assi

gned

to th

e sl

ope

of

regr

essi

on, K

rigin

g ef

ficie

ncy,

num

ber

of s

ampl

es a

nd th

e se

arch

vol

ume

for

each

of t

he e

stim

ated

gra

de v

aria

bles

. Th

e fin

al b

lock

qua

lity

fact

or c

onst

itute

d th

e m

ean

of th

e th

ree

indi

vidu

al q

ualit

y fa

ctor

s.

• Th

e bl

ock

qual

ity fa

ctor

s w

ere

revi

ewed

aga

inst

dat

a qu

ality

and

qua

ntity

, geo

logi

cal c

ontin

uity

and

gra

de c

ontin

uity

an

d th

e M

iner

al R

esou

rce

clas

sifie

d as

sho

wn

belo

w.

Mat

eria

l M

easu

red

Indi

cate

d In

ferr

ed

Can

ga

- >4

>1

Nor

th Z

one

>9

>5

>2

Sout

h Zo

ne

>9

>5

>2

Inte

rnal

Was

te

>4.4

>3

.5

>0

•

The

resu

lts o

f the

cla

ssifi

catio

n st

rate

gy w

ere

visu

ally

revi

ewed

and

dee

med

app

ropr

iate

. In

tern

al w

aste

was

incl

uded

in

the

clas

sific

atio

n, a

s it

is S

RK’

s op

inio

n th

at s

ome

of th

is m

ater

ial w

ill no

t be

sele

ctiv

ely

min

eabl

e.

• Th

e re

porte

d M

iner

al R

esou

rces

app

ropr

iate

ly re

flect

the

Com

pete

nt P

erso

n’s

view

of t

he M

t Mas

on d

epos

it.

Audi

ts o

r re

view

s •

The

resu

lts o

f any

aud

its o

r re

view

s of

Min

eral

Res

ourc

e es

timat

es.

• In

tern

al S

RK

peer

revi

ew h

as b

een

unde

rtake

n an

d no

mat

eria

l iss

ues

wer

e id

entif

ied.

1 0 1

A N N U A L R E P O R T 2 0 1 8



SRK

Con

sulti

ng

Appe

ndix

A-2

3

CU

NN

/BR

OW

/wul

r Ju

pite

r IG

R T

able

1 fo

r Mt M

ason

and

Mt I

da.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Dis

cuss

ion

of

rela

tive

accu

racy

/ co

nfid

ence

• W

here

app

ropr

iate

, a s

tate

men

t of

the

rela

tive

accu

racy

and

co

nfid

ence

leve

l in

the

Min

eral

R

esou

rce

estim

ate

usin

g an

ap

proa

ch o

r pro

cedu

re d

eem

ed

appr

opria

te b

y th

e C

ompe

tent

Pe

rson

. For

exa

mpl

e, th

e ap

plic

atio

n of

sta

tistic

al o

r ge

osta

tistic

al p

roce

dure

s to

qu

antif

y th

e re

lativ

e ac

cura

cy o

f th

e re

sour

ce w

ithin

sta

ted

conf

iden

ce li

mits

, or,

if su

ch a

n ap

proa

ch is

not

dee

med

ap

prop

riate

, a q

ualit

ativ

e di

scus

sion

of t

he fa

ctor

s th

at

coul

d af

fect

the

rela

tive

accu

racy

an

d co

nfid

ence

of t

he e

stim

ate.

•

The

stat

emen

t sho

uld

spec

ify

whe

ther

it re

late

s to

glo

bal o

r lo

cal e

stim

ates

, and

, if l

ocal

, st

ate

the

rele

vant

tonn

ages

, w

hich

sho

uld

be re

leva

nt to

te

chni

cal a

nd e

cono

mic

ev

alua

tion.

Doc

umen

tatio

n sh

ould

incl

ude

assu

mpt

ions

m

ade

and

the

proc

edur

es u

sed.

•

Thes

e st

atem

ents

of r

elat

ive

accu

racy

and

con

fiden

ce o

f the

es

timat

e sh

ould

be

com

pare

d w

ith p

rodu

ctio

n da

ta, w

here

av

aila

ble.

• Th

e re

lativ

e ac

cura

cy a

nd c

onfid

ence

leve

l in

the

Min

eral

Res

ourc

e es

timat

e ar

e co

nsid

ered

to b

e in

line

with

the

gene

rally

acc

epte

d ac

cura

cy a

nd c

onfid

ence

of t

he n

omin

ated

Min

eral

Res

ourc

e ca

tego

ries.

Thi

s ha

s be

en

dete

rmin

ed o

n a

quan

titat

ive

and,

to a

less

er e

xten

t, a

qual

itativ

e ba

sis,

and

is b

ased

on

the

Com

pete

nt P

erso

n’s

expe

rienc

e w

ith s

imila

r BIF

dep

osits

in A

ustra

lia a

nd A

sia.

The

fact

ors

that

cou

ld a

ffect

the

rela

tive

accu

racy

and

co

nfid

ence

of t

he e

stim

ate

incl

ude:

-

The

com

plet

enes

s an

d ac

cura

cy o

f the

dat

abas

e, p

artic

ular

ly h

oles

mis

sing

dow

nhol

e su

rvey

s, a

nd

- Th

e ac

cura

cy o

f the

his

toric

ass

ay m

etho

ds

• Th

e C

ompe

tent

Per

son

is o

f the

opi

nion

that

the

scop

e fo

r var

iatio

ns is

min

imal

, and

if a

ny, t

he im

pact

on

the

Min

eral

R

esou

rce

estim

ate

is u

nlik

ely

to b

e si

gnifi

cant

. •

The

estim

ate

is lo

cal i

n th

e se

nse

that

it is

spe

cific

to s

ub-c

ell a

nd p

aren

t mod

el b

lock

s of

a s

ize

cons

ider

ed

appr

opria

te fo

r loc

al g

rade

est

imat

ion.

•

The

tonn

ages

rele

vant

to te

chni

cal a

nd e

cono

mic

ana

lysi

s ar

e th

ose

clas

sifie

d as

Mea

sure

d an

d In

dica

ted

Min

eral

R

esou

rces

. •

No

prod

uctio

n da

ta is

ava

ilabl

e as

the

depo

sit c

urre

ntly

rem

ains

unm

ined

.

1 0 2



SR

K C

on

su

ltin

g

Ap

pe

nd

ix B

CU

NN

/BR

OW

/wulr

Jupiter IG

R T

able

1 for M

t M

ason a

nd M

t Id

a.d

ocx

23 M

ay 2

018

Sect

ion

1 Sa

mpl

ing

Tech

niqu

es a

nd D

ata

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Sa

mp

lin

g

tech

niq

ue

s

Na

ture

an

d q

ua

lity

of

sa

mp

lin

g (

e.g

. cu

t ch

an

ne

ls,

ra

nd

om

ch

ips,

or s

pe

cific

sp

ecia

lise

d in

du

str

y

sta

nd

ard

me

asu

re

me

nt

too

ls a

pp

ro

pria

te t

o t

he

min

era

ls u

nd

er in

ve

stig

atio

n,

su

ch

as d

ow

n h

ole

ga

mm

a s

on

de

s,

or h

an

dh

eld

XR

F in

str

um

en

ts,

etc

.).

Th

ese

exa

mp

les s

ho

uld

no

t b

e t

ake

n a

s lim

itin

g t

he

bro

ad

me

an

ing

of

sa

mp

lin

g.

Inclu

de

re

fere

nce

to

me

asu

re

s t

ake

n t

o e

nsu

re

sa

mp

le r

ep

re

se

ntivity a

nd

th

e a

pp

ro

pria

te c

alib

ra

tio

n

of

an

y m

ea

su

re

me

nt

too

ls o

r s

yste

ms u

se

d.

Asp

ects

of

the

de

term

ina

tio

n o

f m

ine

ra

lisa

tio

n t

ha

t

are

Ma

teria

l to

th

e P

ub

lic R

ep

ort.

In c

ase

s w

he

re

‘in

du

str

y s

tan

da

rd

’ w

ork h

as b

ee

n

do

ne

th

is w

ou

ld b

e r

ela

tive

ly s

imp

le (

e.g

. ‘r

eve

rse

cir

cu

latio

n d

rillin

g w

as u

se

d t

o o

bta

in 1

m s

am

ple

s

fro

m w

hic

h 3

kg

wa

s p

ulv

eris

ed

to

pro

du

ce

a 3

0 g

ch

arg

e f

or f

ire

assa

y’)

. In

oth

er c

ase

s m

ore

exp

lan

atio

n m

ay b

e r

eq

uir

ed

, su

ch

as w

he

re

th

ere

is

co

arse

go

ld t

ha

t h

as in

he

re

nt

sa

mp

lin

g p

ro

ble

ms.

Un

usu

al co

mm

od

itie

s o

r m

ine

ra

lisa

tio

n t

yp

es (

e.g

.

su

bm

arin

e n

od

ule

s) m

ay w

arra

nt

dis

clo

su

re

of

de

taile

d in

form

atio

n.

Th

e d

ata

se

ts u

se

d f

or t

he

Mt

Ida

Min

era

l R

eso

urce

estim

atio

n w

ere

de

riv

ed

fro

m d

rillin

g p

ro

gra

ms c

on

du

cte

d

by J

up

ite

r M

inin

g L

imite

d (

Ju

pite

r) f

ro

m 2

00

7 t

o 2

01

2.

Th

e p

ro

gra

mm

es in

clu

de

d b

oth

re

ve

rse

cir

cu

latio

n

(R

C) a

nd

dia

mo

nd

co

re

(D

DH

) d

rillin

g.

Th

e d

ata

ba

se

th

at

Ju

pite

r c

om

pile

d f

or t

he

stu

dy c

on

tain

s 4

59

drill h

ole

s,

co

mp

ris

ing

42

5 R

C h

ole

s e

qu

atin

g

to 8

9,1

89

m o

f d

rillin

g,

an

d 3

4 D

DH

ho

les,

eq

ua

tin

g t

o 1

0,1

19

m o

f d

rillin

g.

Ove

r 9

5%

of

the

RC

sa

mp

les w

ere

co

lle

cte

d a

t 1

m in

terva

ls,

with

th

e r

em

ain

de

r c

olle

cte

d o

ve

r 2

m o

r 4

m

inte

rva

ls.

Fo

r e

ach

in

terva

l, a

sp

lit

typ

ica

lly w

eig

hin

g 3

.5 k

g w

as c

olle

cte

d v

ia a

co

ne

sp

litt

er f

itte

d t

o t

he

rig

’s

cyclo

ne

un

de

rflo

w.

Th

e d

iam

on

d c

ore

sa

mp

les w

ere

usu

ally t

erm

ina

ted

at

lith

olo

gic

al b

ou

nd

arie

s.

With

in

ind

ivid

ua

l g

eo

log

ica

l zo

ne

s,

the

sa

mp

les w

ere

co

lle

cte

d o

n a

ra

ng

e o

f in

terva

l le

ng

ths u

p t

o 7

m,

with

th

e

ma

jority o

n n

om

ina

l le

ng

ths o

f 3

m,

4

m,

an

d 5

m,

Sa

mp

le p

re

pa

ra

tio

n a

nd

la

bo

ra

tory t

estw

ork w

as p

erfo

rm

ed

by A

LS

Pe

rth

an

d B

ure

au

Ve

rita

s P

erth

. S

am

ple

pre

pa

ra

tio

n in

clu

de

d o

ve

n-d

ryin

g,

co

arse

cru

sh

ing

, riffle

sp

litt

ing

, a

nd

pu

lve

ris

ing

. A

20

g s

plit

wa

s p

ulv

eris

ed

to p

80

25

µm

an

d s

ub

mitte

d f

or D

avis

Tu

be

te

stin

g.

He

ad

gra

de

an

d c

on

ce

ntr

ate

gra

de

an

aly

se

s w

ere

co

nd

ucte

d u

sin

g f

use

d-b

ea

d X

RF

fo

r m

ajo

r o

xid

es a

nd

th

erm

og

ra

vim

etr

ic a

na

lysis

(1

00

0 C

) f

or L

OI.

Drillin

g

tech

niq

ue

s

Drill ty

pe

(e

.g.

co

re

, re

ve

rse

cir

cu

latio

n,

op

en

-h

ole

ha

mm

er,

ro

tary a

ir b

last,

au

ge

r,

Ba

ng

ka

, so

nic

, e

tc.)

an

d d

eta

ils (

e.g

. co

re

dia

me

ter,

trip

le o

r s

tan

da

rd

tub

e,

de

pth

of

dia

mo

nd

ta

ils,

face

-sa

mp

lin

g b

it o

r

oth

er t

yp

e,

wh

eth

er c

ore

is o

rie

nte

d a

nd

if

so

, b

y

wh

at

me

tho

d,

etc

.).

Th

e d

ata

use

d f

or r

eso

urce

estim

atio

n w

ere

de

riv

ed

fro

m s

am

ple

s c

olle

cte

d u

sin

g R

C a

nd

Dia

mo

nd

co

re

drill

rig

s.

Se

ve

ra

l d

iffe

re

nt

RC

rig

s w

ere

use

d f

or t

he

va

rio

us p

ro

gra

ms,

bu

t m

ost

RC

rig

s w

ere

fitte

d w

ith

12

0 m

m

face

-sa

mp

lin

g b

utt

on

bits,

with

th

e s

am

ple

s c

olle

cte

d v

ia r

ig-m

ou

nte

d c

on

e s

plitt

ers.

Th

e d

iam

on

d c

ore

rig

s

we

re

eq

uip

pe

d w

ith

HQ

3 c

orin

g e

qu

ipm

en

t.

So

me

PQ

3 h

ole

s w

ere

als

o d

rille

d f

or m

eta

llu

rg

ica

l a

nd

ge

ote

ch

nic

al e

va

lua

tio

n.

Drill sa

mp

le

re

co

ve

ry

Me

tho

d o

f re

co

rd

ing

an

d a

sse

ssin

g c

ore

an

d c

hip

sa

mp

le r

eco

ve

rie

s a

nd

re

su

lts a

sse

sse

d.

Me

asu

re

s t

ake

n t

o m

axim

ise

sa

mp

le r

eco

ve

ry a

nd

en

su

re

re

pre

se

nta

tive

na

ture

of

the

sa

mp

les.

Wh

eth

er a

re

latio

nsh

ip e

xis

ts b

etw

ee

n s

am

ple

re

co

ve

ry a

nd

gra

de

an

d w

he

the

r s

am

ple

bia

s m

ay

ha

ve

occu

rre

d d

ue

to

pre

fere

ntia

l lo

ss/g

ain

of

fin

e/

co

arse

ma

teria

l.

Co

re

re

co

ve

ry e

stim

ate

s w

ere

pe

rfo

rm

ed

an

d r

eco

rd

ed

du

rin

g lo

gg

ing

. J

up

ite

r e

mp

loye

d e

xp

erie

nce

d

pro

ject

ge

olo

gis

ts t

o s

up

ervis

e t

he

RC

an

d d

iam

on

d d

rillin

g p

ro

gra

ms,

an

d b

est

ind

ustr

y p

ra

ctice

s,

pe

rta

inin

g

to d

rill co

ntr

ol a

nd

sa

mp

le e

xtr

actio

n,

are

un

de

rsto

od

to

ha

ve

be

en

co

nd

ucte

d.

Ho

we

ve

r,

no

qu

an

tita

tive

sa

mp

le r

eco

ve

ry d

ata

we

re

co

lle

cte

d.

Ju

pite

r p

lan

ne

d t

o a

sse

ss w

he

the

r p

re

fere

ntia

l m

ate

ria

l lo

ss m

ay h

ave

occu

rre

d b

y c

om

pa

rin

g t

he

DD

H a

nd

RC

da

ta.

Th

is d

ata

wa

s n

ot

co

mp

lete

d a

t th

e t

ime

of

pro

ject

term

ina

tio

n.

Th

is u

nce

rta

inty

ha

s b

ee

n c

on

sid

ere

d w

he

n a

ssig

nin

g r

eso

urce

cla

ssific

atio

ns t

o t

he

estim

ate

s.

MT IDA JORC TABLE 1

1 0 3

A N N U A L R E P O R T 2 0 1 8


MT IDA JORC TABLE 1 (CONTINUED)

SR

K C

on

su

ltin

g

Ap

pe

nd

ix B

CU

NN

/BR

OW

/wulr

Jupiter IG

R T

able

1 for M

t M

ason a

nd M

t Id

a.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Lo

gg

ing

W

he

the

r c

ore

an

d c

hip

sa

mp

les h

ave

be

en

ge

olo

gic

ally a

nd

ge

ote

ch

nic

ally lo

gg

ed

to

a le

ve

l o

f

de

tail t

o s

up

po

rt

ap

pro

pria

te M

ine

ra

l R

eso

urce

estim

atio

n,

min

ing

stu

die

s a

nd

me

tallu

rg

ica

l stu

die

s.

Wh

eth

er lo

gg

ing

is q

ua

lita

tive

or q

ua

ntita

tive

in

na

ture

. C

ore

(o

r c

oste

an

, ch

an

ne

l, e

tc.)

ph

oto

gra

ph

y.

Th

e t

ota

l le

ng

th a

nd

pe

rce

nta

ge

of

the

re

leva

nt

inte

rse

ctio

ns lo

gg

ed

.

All d

rill h

ole

s u

se

d f

or r

eso

urce

estim

atio

n w

ere

ge

olo

gic

ally lo

gg

ed

to

a le

ve

l o

f d

eta

il d

ee

me

d s

uff

icie

nt

to

en

ab

le t

he

de

lin

ea

tio

n o

f g

eo

log

ica

l d

om

ain

s a

pp

ro

pria

te t

o s

up

po

rt

Min

era

l R

eso

urce

estim

atio

n a

nd

cla

ssific

atio

n.

RC

sa

mp

le lo

gg

ing

wa

s p

erfo

rm

ed

on

we

t-sie

ve

d c

hip

s c

olle

cte

d f

ro

m e

ach

in

terva

l, w

ith

lith

olo

gy,

co

lou

r,

an

d w

ea

the

rin

g in

form

atio

n r

eco

rd

ed

. H

an

dh

eld

XR

F a

nd

ma

gn

etic s

usce

ptib

ility d

ata

we

re

als

o c

olle

cte

d

for s

om

e p

ro

gra

ms.

Th

ese

re

su

lts w

ere

use

d t

o a

ssis

t w

ith

ge

olo

gic

al in

terp

re

tatio

n,

bu

t w

ere

no

t u

se

d

dir

ectly f

or r

eso

urce

estim

atio

n.

G

eo

tech

nic

al lo

gg

ing

wa

s p

erfo

rm

ed

on

so

me

of

the

dia

mo

nd

co

re

sa

mp

les.

All d

iam

on

d a

nd

RC

in

terva

ls w

ere

ge

olo

gic

ally lo

gg

ed

. T

he

lo

gg

ing

da

tase

ts c

om

pris

e a

mix

of

qu

alita

tive

an

d q

ua

ntita

tive

da

ta.

Th

e c

ore

sa

mp

les a

nd

th

e s

ieve

d r

ock c

hip

sp

ecim

en

s w

ere

ph

oto

gra

ph

ed

fo

r m

ost

pro

gra

ms.

Su

b-sa

mp

lin

g

tech

niq

ue

s

an

d s

am

ple

pre

pa

ra

tio

n

If c

ore

, w

he

the

r c

ut

or s

aw

n a

nd

wh

eth

er q

ua

rte

r,

ha

lf o

r a

ll c

ore

ta

ke

n.

If n

on

-co

re

, w

he

the

r r

iffle

d,

tub

e s

am

ple

d,

ro

tary s

plit,

etc

. a

nd

wh

eth

er s

am

ple

d w

et

or d

ry.

Fo

r a

ll s

am

ple

typ

es,

the

na

ture

, q

ua

lity

an

d

ap

pro

pria

ten

ess o

f th

e s

am

ple

pre

pa

ra

tio

n

tech

niq

ue

.

Qu

ality

co

ntr

ol p

ro

ce

du

re

s a

do

pte

d f

or a

ll s

ub

-

sa

mp

lin

g s

tag

es t

o m

axim

ise

re

pre

se

ntivity o

f

sa

mp

les.

Me

asu

re

s t

ake

n t

o e

nsu

re

th

at

the

sa

mp

lin

g is

re

pre

se

nta

tive

of

the

in

situ

ma

teria

l co

lle

cte

d,

inclu

din

g f

or in

sta

nce

re

su

lts f

or f

ield

du

plica

te/s

eco

nd

-h

alf s

am

plin

g.

Wh

eth

er s

am

ple

siz

es a

re

ap

pro

pria

te t

o t

he

gra

in

siz

e o

f th

e m

ate

ria

l b

ein

g s

am

ple

d.

Mo

st

of

the

RC

sa

mp

les w

ere

co

lle

cte

d o

ve

r 1

m in

terva

ls.

T

he

en

tire

sa

mp

le f

ro

m e

ach

in

terva

l w

as

pa

sse

d t

hro

ug

h a

co

ne

sp

litt

er m

ou

nte

d t

o t

he

cyclo

ne

un

de

rflo

w,

with

a 3

.5 k

g s

plit

take

n a

s t

he

prim

ary

sa

mp

le.

Sa

mp

le p

re

pa

ra

tio

n in

clu

de

d o

ve

n-d

ryin

g,

co

arse

cru

sh

ing

, riffle

sp

litt

ing

, a

nd

pu

lve

ris

ing

. A

20

g

sp

lit

wa

s p

ulv

eris

ed

to

p8

0 –

25

um

an

d s

ub

mitte

d f

or D

avis

Tu

be

Re

co

ve

ry t

estin

g.

Qu

ality

co

ntr

ol fie

ld p

ro

ce

du

re

s in

clu

de

d t

he

co

lle

ctio

n a

nd

in

se

rtio

n o

f fie

ld d

up

lica

tes (

~1

in

40

),

an

d c

oa

rse

cru

sh

ed

bla

nks.

SR

K is n

ot

aw

are

of

an

y s

tud

ies t

ha

t m

ay h

ave

be

en

co

nd

ucte

d t

o d

em

on

str

ate

th

e s

uita

bility o

f th

e s

am

ple

cru

sh

an

d s

plit

siz

e c

om

bin

atio

ns.

Ho

we

ve

r,

the

fie

ld d

up

lica

te d

ata

se

ts d

o n

ot

ind

ica

te s

ign

i fic

an

t b

ias o

r

pre

cis

ion

issu

es.

Th

e c

ore

sa

mp

les u

se

d f

or r

eso

urce

estim

atio

n w

ere

ge

olo

gic

ally lo

gg

ed

an

d p

ho

tog

ra

ph

ed

, w

ith

ha

lf-co

re

sa

mp

les s

ub

mitte

d f

or la

bo

ra

tory t

estin

g.

Co

re

re

co

ve

ry e

stim

ate

s w

ere

in

clu

de

d in

th

e lo

gg

ing

da

ta.

1 0 4




SR

K C

on

su

ltin

g

Ap

pe

nd

ix B

CU

NN

/BR

OW

/wulr

Jupiter IG

R T

able

1 for M

t M

ason a

nd M

t Id

a.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Qu

ality

of

assa

y d

ata

an

d la

bo

ra

tory

tests

Th

e n

atu

re

, q

ua

lity

an

d a

pp

ro

pria

ten

ess o

f th

e

assa

yin

g a

nd

la

bo

ra

tory p

ro

ce

du

re

s u

se

d a

nd

wh

eth

er t

he

te

ch

niq

ue

is c

on

sid

ere

d p

artia

l o

r t

ota

l.

Fo

r g

eo

ph

ysic

al to

ols

, sp

ectr

om

ete

rs,

ha

nd

he

ld X

RF

instr

um

en

ts,

etc

., t

he

pa

ra

me

ters u

se

d in

de

term

inin

g

the

an

aly

sis

in

clu

din

g in

str

um

en

t m

ake

an

d m

od

el,

re

ad

ing

tim

es,

ca

lib

ra

tio

ns f

acto

rs a

pp

lie

d a

nd

th

eir

de

riv

atio

n,

etc

.

Na

ture

of

qu

ality

co

ntr

ol p

ro

ce

du

re

s a

do

pte

d (

e.g

.

sta

nd

ard

s,

bla

nks,

du

plica

tes,

exte

rn

al la

bo

ra

tory

ch

ecks) a

nd

wh

eth

er a

cce

pta

ble

le

ve

ls o

f a

ccu

ra

cy

(i.e

. la

ck o

f b

ias) a

nd

pre

cis

ion

ha

ve

be

en

esta

blish

ed

.

Ge

och

em

ica

l a

na

lyse

s w

ere

pe

rfo

rm

ed

on

sp

lits

ta

ke

n f

ro

m b

oth

th

e f

ull s

am

ple

an

d f

ro

m t

he

DT

co

nce

ntr

ate

. M

ajo

r o

xid

e d

ete

rm

ina

tio

n w

as c

on

du

cte

d u

si n

g f

use

d-b

ea

d X

RF

, a

nd

in

clu

de

d t

he

fo

llo

win

g

an

aly

tica

l su

ite

: A

l 2O

3,

Ca

O,

Fe

, M

gO

, M

nO

, P

, S

, a

nd

SiO

2.

LO

I w

as d

ete

rm

ine

d u

sin

g t

he

rm

og

ra

vim

etr

ic

an

aly

sis

an

d r

ep

orte

d a

t 1

00

0 °

C.

Ma

ss r

eco

ve

ry w

as b

ase

d o

n d

ry D

TR

sa

mp

le w

eig

hts

.

In a

dd

itio

n t

o t

he

fie

ld Q

A/

QC

pro

ce

du

re

s d

escrib

ed

ab

ove

, sta

nd

ard

s,

lab

ora

tory r

ep

ea

ts,

an

d in

de

pe

nd

en

t

lab

ora

tory c

he

cks w

ere

use

d f

or q

ua

lity

co

ntr

ol.

Th

e Q

A/

QC

da

ta d

id n

ot

ind

ica

te s

ign

ific

an

t is

su

es w

ith

th

e

lab

ora

tory t

estw

ork.

Ve

rific

atio

n o

f

sa

mp

lin

g a

nd

assa

yin

g

Th

e v

erific

atio

n o

f sig

nific

an

t in

terse

ctio

ns b

y e

ith

er

ind

ep

en

de

nt

or a

lte

rn

ative

co

mp

an

y p

erso

nn

el.

Th

e u

se

of

twin

ne

d h

ole

s.

Do

cu

me

nta

tio

n o

f p

rim

ary d

ata

, d

ata

en

try

pro

ce

du

re

s,

da

ta v

erific

atio

n,

da

ta s

tora

ge

(p

hysic

al

an

d e

lectr

on

ic) p

ro

toco

ls.

Dis

cu

ss a

ny a

dju

stm

en

t to

assa

y d

ata

.

Bo

th J

up

ite

r a

nd

SR

K p

erso

nn

el co

mp

are

d t

he

assa

y d

ata

to

th

e g

eo

log

ica

l lo

gs a

nd

sa

mp

le d

ata

. G

ive

n t

he

na

ture

of

the

min

era

lisa

tio

n a

nd

th

e g

en

era

l u

nifo

rm

ity o

f g

ra

de

dis

trib

utio

ns w

ith

in t

he

BIF

un

its,

the

re

so

urce

estim

ate

s a

re

no

t co

nsid

ere

d t

o b

e s

en

sitiv

e t

o t

he

re

su

lts f

or in

div

idu

al sa

mp

le in

terva

ls.

SR

K is n

ot

aw

are

of

an

y h

ole

s t

ha

t m

ay h

ave

be

en

drille

d e

xp

re

ssly

fo

r h

ole

tw

inn

ing

pu

rp

ose

s.

Ju

pite

r’s

drill d

ata

we

re

sto

re

d in

an

acQ

uir

e d

ata

ba

se

, w

hic

h w

as m

an

ag

ed

by t

he

co

mp

an

y’s

da

tab

ase

ad

min

istr

ato

r.

An

au

dit o

f th

e d

ata

ba

se

co

nte

nt

an

d p

ro

ce

du

re

s w

as c

on

du

cte

d b

y a

n in

de

pe

nd

en

t

co

nsu

lta

nt

in 2

01

2,

with

no

sig

nific

an

t is

su

es r

ep

orte

d.

Ju

pite

r p

ro

vid

ed

th

e s

urve

y a

nd

drill h

ole

lo

gg

ing

da

ta t

o S

RK

in

Acce

ss d

ata

ba

se

fo

rm

at.

T

he

orig

ina

l

lab

ora

tory c

ertifica

tes w

ere

als

o p

ro

vid

ed

as lo

cke

d P

DF

s.

SR

K im

po

rte

d t

he

file

s in

to D

ata

min

e S

tud

io f

or

me

rg

ing

an

d v

alid

atio

n,

wh

ich

in

clu

de

d n

um

eric

al ra

ng

e c

he

cks o

n s

urve

y a

nd

in

terva

l d

ata

, a

nd

vis

ua

l

ch

ecks.

All a

ssa

y d

ata

we

re

acce

pte

d in

to t

he

da

tab

ase

as s

up

plie

d b

y t

he

la

bo

ra

tory,

with

no

ad

justm

en

ts a

pp

lie

d.

Lo

ca

tio

n o

f

da

ta p

oin

ts

Accu

ra

cy a

nd

qu

ality

of

su

rve

ys u

se

d t

o lo

ca

te d

rill

ho

les (

co

lla

r a

nd

do

wn

-h

ole

su

rve

ys),

tre

nch

es,

min

e

wo

rkin

gs a

nd

oth

er lo

ca

tio

ns u

se

d in

Min

era

l

Re

so

urce

estim

atio

n.

Sp

ecific

atio

n o

f th

e g

rid

syste

m u

se

d.

Qu

ality

an

d a

de

qu

acy o

f to

po

gra

ph

ic c

on

tro

l.

All s

urve

y d

ata

are

re

po

rte

d a

cco

rd

ing

to

MG

A9

4 Z

on

e 5

1 w

ith

ele

va

tio

ns b

ase

d o

n A

HD

.

Th

e t

op

og

ra

ph

ic s

urfa

ce

da

ta f

or t

he

Mt

Ida

re

gio

n w

ere

co

lle

cte

d f

ro

m a

LiD

AR

su

rve

y c

on

du

cte

d b

y F

ug

ro

fro

m 6

to

11

Au

gu

st

20

11

. T

he

da

ta w

ere

pro

vid

ed

as a

5 m

grid

de

d d

igita

l e

leva

tio

n m

od

el, w

ith

a r

ep

orte

d

ho

riz

on

tal a

ccu

ra

cy o

f 0

.5 m

an

d v

ertica

l a

ccu

ra

cy o

f 0

.13

m

Th

e d

rill h

ole

co

lla

rs f

or t

he

20

07

an

d 2

00

8 c

am

pa

ign

s w

ere

su

rve

ye

d w

ith

a h

an

dh

eld

Ga

rm

in 6

0 G

PS

. T

he

ho

riz

on

tal a

ccu

ra

cy w

as r

ep

orte

d t

o b

e a

pp

ro

xim

ate

ly 5

m,

bu

t th

e v

ertica

l a

ccu

ra

cy w

as n

ot

sta

ted

. J

up

ite

r

ad

vis

ed

th

at

the

drill h

ole

co

lla

rs f

or t

he

20

09

an

d 2

01

0 c

am

pa

ign

s w

ere

su

rve

ye

d u

sin

g d

iffe

re

ntia

l G

PS

, b

ut

the

accu

ra

cy is n

ot

kn

ow

n.

Th

e d

rill h

ole

co

lla

rs f

or t

he

20

11

an

d 2

01

2 c

am

pa

ign

s w

ere

su

rve

ye

d u

sin

g R

TK

DG

PS

, w

ith

an

ele

va

tio

n a

ccu

ra

cy o

f 1

.5 m

(d

atu

m a

ccu

ra

cy).

Do

wn

ho

le s

urve

y d

ata

are

ava

ila

ble

fo

r a

pp

ro

xim

ate

ly 6

0%

of

the

ho

les.

No

do

wn

ho

le s

urve

ys w

ere

un

de

rta

ke

n f

or t

he

20

07

an

d 2

00

8 d

rillin

g,

an

d o

nly

on

e (

1) h

ole

wa

s s

urve

ye

d in

20

09

. A

to

tal o

f se

ve

n (

7)

ho

les w

ere

su

rve

ye

d in

20

10

, b

ut

Ju

pite

r a

dvis

ed

th

at

the

da

ta f

or s

om

e o

f th

ese

ma

y n

ot

be

re

lia

ble

.

1 0 5

A N N U A L R E P O R T 2 0 1 8


SR

K C

on

su

ltin

g

Ap

pe

nd

ix B

CU

NN

/BR

OW

/wulr

Jupiter IG

R T

able

1 for M

t M

ason a

nd M

t Id

a.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Ap

pro

xim

ate

ly 9

0%

of

the

20

11

ho

les a

nd

70

% o

f th

e 2

01

2 h

ole

s w

ere

su

rve

ye

d u

sin

g g

yro

sco

pic

eq

uip

me

nt,

with

re

ad

ing

s c

olle

cte

d e

ve

ry 5

- 1

0 m

.

Da

ta s

pa

cin

g

an

d

dis

trib

utio

n

Da

ta s

pa

cin

g f

or r

ep

ortin

g o

f E

xp

lora

tio

n R

esu

lts.

Wh

eth

er t

he

da

ta s

pa

cin

g a

nd

dis

trib

utio

n is

su

ffic

ien

t to

esta

blish

th

e d

eg

re

e o

f g

eo

log

ica

l a

nd

gra

de

co

ntin

uity a

pp

ro

pria

te f

or t

he

Min

era

l R

eso

urce

an

d O

re

Re

se

rve

estim

atio

n p

ro

ce

du

re

(s) a

nd

cla

ssific

atio

ns a

pp

lie

d.

Wh

eth

er s

am

ple

co

mp

ositin

g h

as b

ee

n a

pp

lie

d.

Th

e d

rillin

g w

as p

erfo

rm

ed

on

se

ctio

n lin

es o

rie

nte

d a

pp

ro

xim

ate

ly p

ara

lle

l to

th

e M

GA

94

grid

. A

no

min

al

drill sp

acin

g o

f 1

00

m x

10

0 m

wa

s u

se

d in

th

e C

en

tra

l zo

ne

, a

nd

a n

om

ina

l sp

acin

g o

f 2

00

m x

20

0 m

in

th

e

No

rth

an

d S

ou

th z

on

es.

Th

e s

pa

cin

g is g

en

era

lly u

nifo

rm

in

th

e C

en

tra

l zo

ne

, b

ut

irre

gu

lar in

pa

rts

of

the

No

rth

an

d S

ou

th z

on

e.

Th

e v

ario

gra

ph

y in

dic

ate

gra

de

co

ntin

uity u

p t

o s

eve

ra

l h

un

dre

d m

etr

es,

with

80

% o

f th

e t

ota

l sill u

su

ally

re

ach

ed

with

in 3

00

m.

Th

e m

ajo

rity o

f th

e s

am

ple

s w

ere

co

lle

cte

d o

n 1

m in

terva

ls.

Fo

r g

ra

de

estim

atio

n,

the

sa

mp

les w

ere

co

mp

osite

d t

o 5

m d

ow

nh

ole

in

terva

ls,

with

co

mp

osite

s t

erm

ina

ted

at

lith

olo

gic

al b

ou

nd

arie

s.

Orie

nta

tio

n o

f

da

ta in

re

latio

n t

o

ge

olo

gic

al

str

uctu

re

Wh

eth

er t

he

orie

nta

tio

n o

f sa

mp

lin

g a

ch

ieve

s

un

bia

se

d s

am

plin

g o

f p

ossib

le s

tru

ctu

re

s a

nd

th

e

exte

nt

to w

hic

h t

his

is k

no

wn

, co

nsid

erin

g t

he

de

po

sit

typ

e.

If t

he

re

latio

nsh

ip b

etw

ee

n t

he

drillin

g o

rie

nta

tio

n a

nd

the

orie

nta

tio

n o

f ke

y m

ine

ra

lise

d s

tru

ctu

re

s is

co

nsid

ere

d t

o h

ave

in

tro

du

ce

d a

sa

mp

lin

g b

ias,

this

sh

ou

ld b

e a

sse

sse

d a

nd

re

po

rte

d if

ma

teria

l.

All o

f th

e R

C d

rill h

ole

s a

re

ve

rtica

l.

Mo

st

of

the

dia

mo

nd

ho

les a

re

an

gle

d b

etw

ee

n 6

0° -

7

0°.

Th

e m

ajo

rity

of

dia

mo

nd

ho

les a

re

orie

nte

d t

o t

he

we

st,

with

se

ve

ra

l o

rie

nte

d e

ast,

an

d a

fe

w t

o t

he

no

rth

an

d t

he

so

uth

.

Th

e B

IF u

nits d

ip a

t a

sh

allo

w a

ng

le t

o e

ast,

me

an

ing

th

at

the

ma

jority o

f th

e h

ole

s in

terse

ct

the

min

era

lise

d

zo

ne

at

clo

se

to

pe

rp

en

dic

ula

r.

Sa

mp

le

se

cu

rity

Th

e m

ea

su

re

s t

ake

n t

o e

nsu

re

sa

mp

le s

ecu

rity.

Th

e d

rillin

g p

ro

gra

ms w

ere

pe

rfo

rm

ed

un

de

r t

he

su

pe

rvis

ion

of

Ju

pite

r e

mp

loye

es w

ho

re

tain

ed

re

sp

on

sib

ility

for t

he

sa

mp

le s

ecu

rity u

p u

ntil d

esp

atc

h t

o t

he

la

bo

ra

tory.

On

arriv

al, t

he

la

bo

ra

tory c

he

cke

d t

he

sa

mp

les a

ga

inst

the

su

bm

issio

n f

orm

s.

Assa

y r

esu

lts w

ere

pro

vid

ed

ele

ctr

on

ica

lly in

CS

V f

orm

at,

an

d la

bo

ra

tory c

ertifica

tes w

ere

pro

vid

ed

in

lo

cke

d P

DF

fo

rm

at.

Au

dits o

r

re

vie

ws

Th

e r

esu

lts o

f a

ny a

ud

its o

r r

evie

ws o

f sa

mp

lin

g

tech

niq

ue

s a

nd

da

ta.

Ju

pite

r c

om

mis

sio

ne

d a

n in

de

pe

nd

en

t co

nsu

lta

nt

to a

ud

it t

he

la

bo

ra

tory Q

A/

QC

pro

ce

du

re

s,

de

nsity

de

term

ina

tio

n,

an

d t

he

Ju

pite

r d

ata

ba

se

in

20

12

. S

RK

is n

ot

aw

are

of

an

y o

the

r a

ud

its o

f th

e f

ield

pro

ce

du

re

s o

r d

ata

th

at

ma

y h

ave

be

en

co

nd

ucte

d.


1 0 6



SR

K C

on

su

ltin

g

Ap

pe

nd

ix B

CU

NN

/BR

OW

/wulr

Jupiter IG

R T

able

1 for M

t M

ason a

nd M

t Id

a.d

ocx

23 M

ay 2

018

Sect

ion

2 R

epor

ting

of E

xplo

ratio

n R

esul

ts

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Min

era

l

ten

em

en

t a

nd

lan

d t

en

ure

sta

tus

Typ

e,

re

fere

nce

na

me

/nu

mb

er,

loca

tio

n a

nd

ow

ne

rsh

ip in

clu

din

g a

gre

em

en

ts o

r m

ate

ria

l is

su

es

with

th

ird

pa

rtie

s s

uch

as jo

int

ve

ntu

re

s,

pa

rtn

ersh

ips,

ove

rrid

ing

ro

ya

ltie

s,

na

tive

title

inte

re

sts

, h

isto

ric

al site

s,

wild

ern

ess o

r n

atio

na

l p

ark

an

d e

nvir

on

me

nt a

l se

ttin

gs.

Th

e s

ecu

rity o

f th

e t

en

ure

he

ld a

t th

e t

ime

of

re

po

rtin

g a

lon

g w

ith

an

y k

no

wn

im

pe

dim

en

ts t

o

ob

tain

ing

a lic

en

ce

to

op

era

te in

th

e a

re

a.

Th

e m

ain

de

po

sit f

alls w

ith

in M

inin

g L

ea

se

M2

9/4

14

wh

ich

is w

ho

lly o

wn

ed

by J

up

ite

r M

ine

s L

imite

d,

wa

s

gra

nte

d o

n 1

1 J

an

ua

ry 2

01

1 a

nd

exp

ire

s o

n 2

4 N

ove

mb

er 2

03

2.

Exp

lora

tio

n

do

ne

by o

the

r

pa

rtie

s

Ackn

ow

led

gm

en

t a

nd

ap

pra

isa

l o

f e

xp

lora

tio

n b

y

oth

er p

artie

s.

Th

e d

ata

se

ts p

ro

vid

ed

to

SR

K w

ere

so

urce

d f

ro

m d

rillin

g p

ro

gra

ms c

on

du

cte

d b

y J

up

ite

r f

ro

m 2

00

7 t

hro

ug

h

to 2

01

2.

Ju

pite

r a

dvis

ed

th

at

no

fie

ld w

ork h

as b

ee

n c

on

du

cte

d s

ince

20

12

.

SR

K is n

ot

aw

are

of

an

y s

ign

ific

an

t e

xp

lora

tio

n p

ro

gra

ms c

on

du

cte

d b

y o

the

r p

artie

s p

rio

r t

o J

up

ite

r’s

invo

lve

me

nt

in 2

00

7,

or o

f th

e e

xis

ten

ce

of

oth

er d

ata

se

ts t

ha

t m

ay b

e d

ire

ctly r

ele

va

nt

to t

he

Mt

Ida

Min

era

l

Re

so

urce

estim

ate

s d

escrib

ed

in

th

e r

ep

ort.

Ge

olo

gy

De

po

sit t

yp

e,

ge

olo

gic

al se

ttin

g a

nd

sty

le o

f

min

era

lisa

tio

n.

Th

e M

t Id

a iro

n d

ep

osit is lo

ca

ted

in

th

e Y

ilg

arn

re

gio

n o

f W

este

rn

Au

str

alia

, a

pp

ro

xim

ate

ly 1

00

km

no

rth

we

st

of

Me

nzie

s.

Th

e d

ep

osit is h

oste

d w

ith

in t

he

Mt

Ida

Gre

en

sto

ne

Be

lt,

with

fin

e-g

ra

ine

d m

ag

ne

tite

min

era

lisa

tio

n o

ccu

rrin

g in

a s

erie

s o

f su

b-p

ara

lle

l fo

lde

d b

an

de

d iro

n f

orm

atio

n (

BIF

) u

nits t

ha

t a

re

inte

rla

ye

re

d w

ith

me

tam

orp

ho

se

d m

afics.

Th

e B

IFs f

orm

a p

ro

min

en

t sca

rp

alo

ng

th

e w

este

rn

ed

ge

of

the

de

po

sit,

an

d d

ip s

ha

llo

wly

to

th

e e

ast.

Drill h

ole

Info

rm

atio

n

A s

um

ma

ry o

f a

ll in

form

atio

n m

ate

ria

l to

th

e

un

de

rsta

nd

ing

of

the

exp

lora

tio

n r

esu

lts in

clu

din

g a

tab

ula

tio

n o

f th

e f

ollo

win

g in

form

atio

n f

or a

ll M

ate

ria

l

drill h

ole

s:

• E

astin

g a

nd

no

rth

ing

of

the

drill h

ole

co

lla

r

• E

leva

tio

n o

r R

L (

Re

du

ce

d L

eve

l –

ele

va

tio

n

ab

ove

se

a le

ve

l in

me

tre

s) o

f th

e d

rill h

ole

co

lla

r

• D

ip a

nd

azim

uth

of

the

ho

le

• D

ow

n h

ole

le

ng

th a

nd

in

terce

ptio

n d

ep

th

• H

ole

le

ng

th.

If t

he

exclu

sio

n o

f th

is in

form

atio

n is ju

stifie

d o

n t

he

ba

sis

th

at

the

in

form

atio

n is n

ot

Ma

teria

l a

nd

th

is

exclu

sio

n d

oe

s n

ot

de

tra

ct

fro

m t

he

un

de

rsta

nd

ing

of

the

re

po

rt,

th

e C

om

pe

ten

t P

erso

n s

ho

uld

cle

arly

exp

lain

wh

y t

his

is t

he

ca

se

.

No

exp

lora

tio

n r

esu

lts a

re

re

po

rte

d f

or t

his

stu

dy.


1 0 7

A N N U A L R E P O R T 2 0 1 8


SR

K C

on

su

ltin

g

Ap

pe

nd

ix B

CU

NN

/BR

OW

/wulr

Jupiter IG

R T

able

1 for M

t M

ason a

nd M

t Id

a.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Da

ta

ag

gre

ga

tio

n

me

tho

ds

In r

ep

ortin

g E

xp

lora

tio

n R

esu

lts,

we

igh

tin

g

ave

ra

gin

g t

ech

niq

ue

s,

ma

xim

um

an

d/o

r m

inim

um

gra

de

tru

nca

tio

ns (

e.g

. cu

ttin

g o

f h

igh

gra

de

s) a

nd

cu

t -o

ff g

ra

de

s a

re

usu

ally M

ate

ria

l a

nd

sh

ou

ld b

e

sta

ted

.

Wh

ere

ag

gre

ga

te in

terce

pts

in

co

rp

ora

te s

ho

rt

len

gth

s o

f h

igh

gra

de

re

su

lts a

nd

lo

ng

er le

ng

ths o

f

low

gra

de

re

su

lts,

the

pro

ce

du

re

use

d f

or s

uch

ag

gre

ga

tio

n s

ho

uld

be

sta

ted

an

d s

om

e t

yp

ica

l

exa

mp

les o

f su

ch

ag

gre

ga

tio

ns s

ho

uld

be

sh

ow

n in

de

tail.

Th

e a

ssu

mp

tio

ns u

se

d f

or a

ny r

ep

ortin

g o

f m

eta

l

eq

uiv

ale

nt

va

lue

s s

ho

uld

be

cle

arly

sta

ted

.

No

exp

lora

tio

n r

esu

lts a

re

re

po

rte

d f

or t

his

stu

dy.

Re

latio

nsh

ip

be

twe

en

min

era

lisa

tio

n

wid

ths a

nd

inte

rce

pt

len

gth

s

Th

ese

re

latio

nsh

ips a

re

pa

rticu

larly

im

po

rta

nt

in t

he

re

po

rtin

g o

f E

xp

lora

tio

n R

esu

lts.

If t

he

ge

om

etr

y o

f th

e m

ine

ra

lisa

tio

n w

ith

re

sp

ect

to

the

drill h

ole

an

gle

is k

no

wn

, its n

atu

re

sh

ou

ld b

e

re

po

rte

d.

If it

is n

ot

kn

ow

n a

nd

on

ly t

he

do

wn

ho

le le

ng

ths a

re

re

po

rte

d,

the

re

sh

ou

ld b

e a

cle

ar s

tate

me

nt

to t

his

eff

ect

(e

.g.

‘do

wn

ho

le le

ng

th,

tru

e w

idth

no

t kn

ow

n’)

.

No

exp

lora

tio

n r

esu

lts a

re

re

po

rte

d f

or t

his

stu

dy.

Dia

gra

ms

Ap

pro

pria

te m

ap

s a

nd

se

ctio

ns (

with

sca

les) a

nd

tab

ula

tio

ns o

f in

terce

pts

sh

ou

ld b

e in

clu

de

d f

or a

ny

sig

nific

an

t d

isco

ve

ry b

ein

g r

ep

orte

d T

he

se

sh

ou

ld

inclu

de

, b

ut

no

t b

e lim

ite

d t

o a

pla

n v

iew

of

drill h

ole

co

lla

r lo

ca

tio

ns a

nd

ap

pro

pria

te s

ectio

na

l vie

ws.

No

exp

lora

tio

n r

esu

lts a

re

re

po

rte

d f

or t

his

stu

dy.

Ba

lan

ce

d

re

po

rtin

g

Wh

ere

co

mp

re

he

nsiv

e r

ep

ortin

g o

f a

ll E

xp

lora

tio

n

Re

su

lts is n

ot

pra

ctica

ble

, re

pre

se

nta

tive

re

po

rtin

g o

f

bo

th lo

w a

nd

hig

h g

ra

de

s a

nd

/or w

idth

s s

ho

uld

be

pra

ctice

d t

o a

vo

id m

isle

ad

ing

re

po

rtin

g o

f

Exp

lora

tio

n R

esu

lts.

No

exp

lora

tio

n r

esu

lts a

re

re

po

rte

d f

or t

his

stu

dy.

Oth

er

su

bsta

ntive

exp

lora

tio

n

da

ta

Oth

er e

xp

lora

tio

n d

ata

, if m

ea

nin

gfu

l a

nd

ma

teria

l,

sh

ou

ld b

e r

ep

orte

d in

clu

din

g (

bu

t n

ot

lim

ite

d t

o):

ge

olo

gic

al o

bse

rva

tio

ns;

ge

op

hysic

al su

rve

y r

esu

lts;

ge

och

em

ica

l su

rve

y r

esu

lts;

bu

lk s

am

ple

s –

siz

e a

nd

me

tho

d o

f tr

ea

tme

nt;

me

tallu

rg

ica

l te

st

re

su

lts;

bu

lk

de

nsity,

gro

un

dw

ate

r,

ge

ote

ch

nic

al a

nd

ro

ck

SR

K is n

ot

aw

are

of

an

y m

ate

ria

l e

xp

lora

tio

n d

ata

se

ts t

ha

t a

re

ad

ditio

na

l to

th

ose

use

d in

th

e M

ine

ra

l

Re

so

urce

estim

ate

s.


1 0 8



SR

K C

on

su

ltin

g

Ap

pe

nd

ix B

CU

NN

/BR

OW

/wulr

Jupiter IG

R T

able

1 for M

t M

ason a

nd M

t Id

a.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

ch

ara

cte

ris

tics;

po

ten

tia

l d

ele

terio

us o

r

co

nta

min

atin

g s

ub

sta

nce

s.

Fu

rth

er w

ork

Th

e n

atu

re

an

d s

ca

le o

f p

lan

ne

d f

urth

er w

ork (

e.g

.

tests

fo

r la

tera

l e

xte

nsio

ns o

r d

ep

th e

xte

nsio

ns o

r

larg

e-sca

le s

tep

-o

ut

drillin

g).

Dia

gra

ms c

lea

rly

hig

hlig

htin

g t

he

are

as o

f p

ossib

le

exte

nsio

ns,

inclu

din

g t

he

ma

in g

eo

log

ica

l

inte

rp

re

tatio

ns a

nd

fu

ture

drillin

g a

re

as,

pro

vid

ed

th

is

info

rm

atio

n is n

ot

co

mm

ercia

lly s

en

sitiv

e.

SR

K is n

ot

aw

are

of

pla

ns t

ha

t Ju

pite

r m

ay h

ave

fo

r f

urth

er e

xp

lora

tio

n w

ork in

th

e p

ro

ject

are

a.


1 0 9

A N N U A L R E P O R T 2 0 1 8


SR

K C

on

su

ltin

g

Ap

pe

nd

ix B

CU

NN

/BR

OW

/wulr

Jupiter IG

R T

able

1 for M

t M

ason a

nd M

t Id

a.d

ocx

23 M

ay 2

018

Sect

ion

3 Es

timat

ion

and

Rep

ortin

g of

Min

eral

Res

ourc

es

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Da

tab

ase

inte

grity

• M

ea

su

re

s t

ake

n t

o e

nsu

re

th

at

da

ta h

as n

ot

be

en

co

rru

pte

d b

y,

for e

xa

mp

le,

tra

nscrip

tio

n o

r

ke

yin

g e

rro

rs,

be

twe

en

its

in

itia

l co

lle

ctio

n a

nd

its

use

fo

r M

ine

ra

l R

eso

urce

estim

atio

n p

urp

ose

s.

• D

ata

va

lid

atio

n p

ro

ce

du

re

s u

se

d.

Th

e a

ssa

y a

nd

su

rve

y d

ata

we

re

pro

vid

ed

to

Ju

pite

r in

ele

ctr

on

ic f

orm

an

d im

po

rte

d in

to t

he

Ju

pite

r a

cQ

uir

e

exp

lora

tio

n d

ata

ba

se

. T

he

da

tab

ase

wa

s a

ud

ite

d b

y a

n in

de

pe

nd

en

t co

nsu

lta

nt

in 2

01

2.

Th

e d

ata

we

re

pro

vid

ed

to

SR

K in

an

Acce

ss d

ata

ba

se

. S

RK

im

po

rte

d t

he

file

s in

to D

ata

min

e S

tud

io f

or m

erg

ing

an

d

va

lid

atio

n,

wh

ich

in

clu

de

d n

um

eric

al ra

ng

e c

he

cks o

n s

urve

y a

nd

in

terva

l d

ata

, lib

ra

ry c

od

e lis

ts,

an

d v

isu

al

ch

ecks.

Sp

ot

ch

ecks w

ere

co

nd

ucte

d a

ga

inst

the

la

bo

ra

tory c

ertifica

tes.

Site

vis

its

• C

om

me

nt

on

an

y s

ite

vis

its u

nd

erta

ke

n b

y t

he

Co

mp

ete

nt

Pe

rso

n a

nd

th

e o

utc

om

e o

f th

ose

vis

its.

• If

no

site

vis

its h

ave

be

en

un

de

rta

ke

n in

dic

ate

wh

y t

his

is t

he

ca

se

.

A s

ite

vis

it w

as c

on

du

cte

d b

y S

RK

Co

nsu

lta

nt,

Mic

ha

el C

un

nin

gh

am

, o

n 1

3 –

17

Ap

ril 2

01

2.

Th

e v

isit

inclu

de

d t

he

in

sp

ectio

n o

f th

e g

eo

log

y (

inclu

din

g s

om

e t

ra

ve

rse

ma

pp

ing

),

the

sp

ot

ch

eckin

g o

f R

C c

hip

an

d

co

re

lo

gg

ing

, a

nd

th

e s

po

t ch

eckin

g o

f co

lla

r c

oo

rd

ina

tes.

A s

ite

vis

it w

as c

on

du

cte

d b

y R

od

Bro

wn

, S

RK

Co

nsu

lta

nt

an

d t

he

Co

mp

ete

nt

Pe

rso

n f

or M

ine

ra

l R

eso

urce

sig

n-o

ff) o

n 4

– 5

Octo

be

r 2

01

2.

Th

e v

isit in

clu

de

d a

n e

xa

min

atio

n o

f th

e lo

ca

l g

eo

log

y a

nd

drill sa

mp

les,

an

in

sp

ectio

n o

f th

e R

C a

nd

co

re

sa

mp

les,

an

d d

iscu

ssio

ns w

ith

site

pe

rso

nn

el o

n f

ield

pro

ce

du

re

s.

Ge

olo

gic

al

inte

rp

re

tatio

n

• C

on

fid

en

ce

in

(o

r c

on

ve

rse

ly,

the

un

ce

rta

inty

of)

the

ge

olo

gic

al in

terp

re

tatio

n o

f th

e m

ine

ra

l

de

po

sit.

• N

atu

re

of

the

da

ta u

se

d a

nd

of

an

y a

ssu

mp

tio

ns

ma

de

.

• T

he

eff

ect,

if

an

y,

of

alte

rn

ative

in

terp

re

tatio

ns o

n

Min

era

l R

eso

urce

estim

atio

n.

• T

he

use

of

ge

olo

gy in

gu

idin

g a

nd

co

ntr

ollin

g

Min

era

l R

eso

urce

estim

atio

n.

• T

he

fa

cto

rs a

ffe

ctin

g c

on

tin

uity b

oth

of

gra

de

an

d

ge

olo

gy.

Th

e g

eo

log

ica

l in

terp

re

tatio

n is c

on

sid

ere

d c

on

sis

ten

t w

ith

da

tase

ts a

nd

fie

ld o

bse

rva

tio

ns,

as w

ell a

s w

ith

the

bro

ad

ly a

cce

pte

d u

nd

ersta

nd

ing

with

in t

he

min

ing

co

mm

un

ity o

f th

e r

eg

ion

al g

eo

log

y.

Th

e

inte

rp

re

tatio

n,

wh

ich

in

clu

de

s t

he

de

lin

ea

tio

n o

f se

ve

ra

l su

b-p

ara

lle

l B

IF le

nse

s,

wa

s p

re

pa

re

d u

sin

g a

co

mb

ina

tio

n o

f g

eo

log

ica

l lo

gg

ing

an

d g

eo

ch

em

ica

l d

ata

, a

s w

ell a

s s

urfa

ce

ma

pp

ing

an

d g

eo

ph

ysic

al d

ata

.

Th

e B

IF le

nse

s h

ave

be

en

use

d a

s e

stim

atio

n d

om

ain

s.

Th

e d

om

ain

bo

un

da

rie

s a

re

cle

arly

de

fin

ed

in

th

e

ge

och

em

ica

l d

ata

se

ts,

an

d d

om

ain

ge

om

etr

y is r

ela

tive

ly p

re

dic

tab

le.

Th

e le

nse

s w

ere

in

terp

re

ted

in

cro

ss-se

ctio

n a

nd

lin

ke

d t

o f

orm

wir

efr

am

e s

olid

s.

In

pla

ce

s,

the

alte

rn

atin

g

BIF

an

d m

afic z

on

es a

re

re

lative

ly t

hin

, a

nd

th

e lin

kin

g o

f a

lte

rn

ative

drill in

terce

pts

co

uld

re

su

lt in

eq

ua

lly

pla

usib

le in

terp

re

tatio

ns.

Ho

we

ve

r,

it is c

on

sid

ere

d t

ha

t th

is w

ou

ld n

ot

re

su

lt in

sig

nific

an

t to

nn

ag

e o

r g

ra

de

diffe

re

nce

s.

Dim

en

sio

ns

• T

he

exte

nt

an

d v

aria

bility o

f th

e M

ine

ra

l

Re

so

urce

exp

re

sse

d a

s le

ng

th (

alo

ng

str

ike

or

oth

erw

ise

),

pla

n w

idth

, a

nd

de

pth

be

low

su

rfa

ce

to t

he

up

pe

r a

nd

lo

we

r lim

its o

f th

e M

ine

ra

l

Re

so

urce

.

Th

e m

ine

ra

lisa

tio

n h

as b

ee

n d

efin

ed

ove

r a

str

ike

exte

nt

of

ap

pro

xim

ate

ly 7

km

. E

xp

lora

tio

n a

nd

re

so

urce

de

lin

ea

tio

n in

itia

lly f

ocu

sse

d o

n t

he

ce

ntr

al p

art

of

the

de

po

sit,

with

a la

ter f

ocu

s o

n t

he

so

uth

an

d n

orth

exte

nsio

ns.

Th

is t

imin

g a

nd

fo

cu

s r

esu

lte

d in

th

e p

re

pa

ra

tio

n o

f se

pa

ra

te m

od

els

fo

r s

ou

th,

ce

ntr

al a

nd

no

rth

pa

rts

of

the

de

po

sit.

Th

e z

on

e b

ou

nd

arie

s d

o n

ot

re

fle

ct

an

y s

pe

cific

ch

an

ge

s in

th

e g

eo

log

y.

Th

e d

efin

ed

min

era

lisa

tio

n in

th

e S

ou

th z

on

e e

xte

nd

s f

or a

pp

ro

xim

ate

ly 3

km

alo

ng

str

ike

an

d is o

ve

r 1

km

wid

e.

Re

so

urce

s h

ave

be

en

de

fin

ed

in

se

ve

n (

7) s

ha

llo

w-d

ipp

ing

an

d s

ub

-p

ara

lle

l B

IF u

nits.

Th

e a

ve

ra

ge

un

it t

hic

kn

ess is a

pp

ro

xim

ate

ly 2

5 m

, a

nd

th

e d

ee

pe

st

inte

rse

ctio

n is a

pp

ro

xim

ate

ly 3

40 m

be

low

th

e

su

rfa

ce

.

Th

e d

efin

ed

min

era

lisa

tio

n in

th

e N

orth

zo

ne

ha

s b

ee

n id

en

tifie

d o

ve

r a

str

ike

exte

nt

of

ap

pro

xim

ate

ly 1

km

an

d a

wid

th e

xce

ed

ing

60

0 m

. R

eso

urce

s h

ave

be

en

de

fin

ed

in

a s

ing

le B

IF u

nit o

nly

(o

the

r B

IF u

nits h

ave

be

en

id

en

tifie

d in

th

e r

eg

ion

, b

ut

the

y h

ave

be

en

in

terse

cte

d b

y in

su

ffic

ien

t d

rill h

ole

s f

or r

eso

urce

de

lin

ea

tio

n).

Th

e a

ve

ra

ge

un

it t

hic

kn

ess is a

pp

ro

xim

ate

ly 4

0 m

, a

nd

th

e d

ee

pe

st

inte

rse

ctio

n is

ap

pro

xim

ate

ly 2

50

m b

elo

w t

he

su

rfa

ce

.


1 1 0



SR

K C

on

su

ltin

g

Ap

pe

nd

ix B

CU

NN

/BR

OW

/wulr

Jupiter IG

R T

able

1 for M

t M

ason a

nd M

t Id

a.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Th

e d

efin

ed

min

era

lisa

tio

n in

th

e C

en

tra

l zo

ne

exte

nd

s f

or a

pp

ro

xim

ate

ly 3

km

alo

ng

str

ike

an

d is o

ve

r

1.5

km

wid

e.

Re

so

urce

s h

ave

be

en

de

fin

ed

in

ele

ve

n (

11

) s

ha

llo

w-d

ipp

ing

an

d s

ub

-p

ara

lle

l B

IF u

nits,

with

the

de

ep

est

be

ing

ap

pro

xim

ate

ly 3

40

m b

elo

w t

he

su

rfa

ce

. T

he

ave

ra

ge

un

it t

hic

kn

ess is a

pp

ro

xim

ate

ly

40

m;

ho

we

ve

r,

in p

lace

s,

inte

rce

pts

exce

ed

ing

10

0 m

ha

ve

be

en

en

co

un

tere

d.

Estim

atio

n

an

d m

od

ellin

g

tech

niq

ue

s

• T

he

na

ture

an

d a

pp

ro

pria

ten

ess o

f th

e

estim

atio

n t

ech

niq

ue

(s) a

pp

lie

d a

nd

ke

y

assu

mp

tio

ns,

inclu

din

g t

re

atm

en

t o

f e

xtr

em

e

gra

de

va

lue

s,

do

ma

inin

g,

inte

rp

ola

tio

n

pa

ra

me

ters a

nd

ma

xim

um

dis

tan

ce

of

extr

ap

ola

tio

n f

ro

m d

ata

po

ints

. If

a c

om

pu

ter

assis

ted

estim

atio

n m

eth

od

wa

s c

ho

se

n in

clu

de

a d

escrip

tio

n o

f co

mp

ute

r s

oft

wa

re

an

d

pa

ra

me

ters u

se

d.

• T

he

ava

ila

bility o

f ch

eck e

stim

ate

s,

pre

vio

us

estim

ate

s a

nd

/or m

ine

pro

du

ctio

n r

eco

rd

s a

nd

wh

eth

er t

he

Min

era

l R

eso

urce

estim

ate

ta

ke

s

ap

pro

pria

te a

cco

un

t o

f su

ch

da

ta.

• T

he

assu

mp

tio

ns m

ad

e r

eg

ard

ing

re

co

ve

ry o

f

by-p

ro

du

cts

.

• E

stim

atio

n o

f d

ele

terio

us e

lem

en

ts o

r o

the

r n

on

-

gra

de

va

ria

ble

s o

f e

co

no

mic

sig

nific

an

ce

(e

g

su

lph

ur f

or a

cid

min

e d

ra

ina

ge

ch

ara

cte

ris

atio

n).

• In

th

e c

ase

of

blo

ck m

od

el in

terp

ola

tio

n,

the

blo

ck s

ize

in

re

latio

n t

o t

he

ave

ra

ge

sa

mp

le

sp

acin

g a

nd

th

e s

ea

rch

em

pl o

ye

d.

• A

ny a

ssu

mp

tio

ns b

eh

ind

mo

de

llin

g o

f se

lective

min

ing

un

its.

• A

ny a

ssu

mp

tio

ns a

bo

ut

co

rre

latio

n b

etw

ee

n

va

ria

ble

s.

• D

escrip

tio

n o

f h

ow

th

e g

eo

log

ica

l in

terp

re

tatio

n

wa

s u

se

d t

o c

on

tro

l th

e r

eso

urce

estim

ate

s.

• D

iscu

ssio

n o

f b

asis

fo

r u

sin

g o

r n

ot

usin

g g

ra

de

cu

ttin

g o

r c

ap

pin

g.

• T

he

pro

ce

ss o

f va

lid

atio

n,

the

ch

eckin

g p

ro

ce

ss

use

d,

the

co

mp

aris

on

of

mo

de

l d

ata

to

drill h

ole

da

ta,

an

d u

se

of

re

co

ncilia

tio

n d

ata

if

ava

ila

ble

.

Th

e M

ine

ra

l R

eso

urce

estim

ate

s w

ere

pre

pa

re

d u

sin

g c

on

ve

ntio

na

l b

lock m

od

ellin

g a

nd

ge

osta

tistica

l

estim

atio

n t

ech

niq

ue

s.

Th

e d

ata

asse

ssm

en

t a

nd

mo

de

l p

re

pa

ra

tio

n w

as p

rim

arily c

om

ple

ted

usin

g

Da

tam

ine

Stu

dio

®,

an

d S

up

ervis

or®

so

ftw

are

.

Th

e m

od

el fo

r t

he

Ce

ntr

al zo

ne

wa

s c

om

ple

ted

in

Au

gu

st

20

12

. T

he

mo

de

l w

as u

pd

ate

d in

De

ce

mb

er 2

01

2

to in

clu

de

th

e S

ou

th a

nd

No

rth

zo

ne

s.

Ho

we

ve

r,

be

ca

use

th

ere

wa

s m

inim

al n

ew

da

ta in

th

e v

icin

ity o

f

Ce

ntr

al zo

ne

, a

nd

he

nce

min

ima

l ch

an

ge

to

th

e m

od

el, t

he

Ce

ntr

al Z

on

e r

eso

urce

estim

ate

s w

ere

no

t

re

sta

ted

.

Krig

ing

ne

igh

bo

urh

oo

d a

na

lyse

s (

KN

A) s

tud

ies w

ere

use

d t

o a

sse

ss a

ra

ng

e o

f p

are

nt

ce

ll d

ime

nsio

ns,

an

d

a s

ize

of

50

m x

50

m x

5 m

(X

YZ

) w

as c

on

sid

ere

d a

pp

ro

pria

te g

ive

n t

he

drill sp

acin

g,

gra

de

co

ntin

uity

ch

ara

cte

ris

tics,

an

d t

he

exp

ecte

d m

inin

g m

eth

od

. S

ub

ce

llin

g w

as in

vo

ke

d t

o e

na

ble

th

e B

IF w

ire

fra

me

vo

lum

es t

o b

e a

ccu

ra

tely

re

pro

du

ce

d.

Th

e m

ajo

rity o

f th

e o

rig

ina

l sa

mp

les w

ere

co

lle

cte

d o

n 1

m in

terva

ls,

an

d t

he

se

we

re

co

mp

osite

d t

o 5

m

inte

rva

ls w

ith

in e

ach

estim

atio

n d

om

ain

. P

ro

ba

bility p

lots

we

re

use

d t

o a

sse

ss f

or o

utlie

r v

alu

es,

an

d g

ra

de

cu

ttin

g w

as n

ot

co

nsid

ere

d n

ece

ssa

ry.

Th

e d

iscre

tise

d p

are

nt

ce

ll g

ra

de

s w

ere

estim

ate

d u

sin

g o

rd

ina

ry b

lock k

rig

ing

. T

he

do

ma

in w

ire

fra

me

s

we

re

use

d a

s h

ard

bo

un

da

ry e

stim

atio

n c

on

str

ain

ts.

Se

arch

orie

nta

tio

ns a

nd

we

igh

tin

g f

acto

rs w

ere

de

riv

ed

fro

m v

ario

gra

ph

ic s

tud

ies.

A m

ultip

le-p

ass e

stim

atio

n s

tra

teg

y w

as in

vo

ke

d,

with

KN

A u

se

d t

o

assis

t w

ith

th

e s

ele

ctio

n o

f se

arch

dis

tan

ce

s a

nd

sa

mp

le n

um

be

r c

on

str

ain

ts.

Extr

ap

ola

tio

n w

as lim

ite

d t

o

ap

pro

xim

ate

ly h

alf t

he

no

min

al d

rill sp

acin

g.

Th

e e

xtr

ap

ola

tio

n d

ista

nce

wa

s a

pp

ro

xim

ate

ly 7

5 m

in

th

e

Ce

ntr

al zo

ne

, a

nd

10

0 m

in

th

e N

orth

an

d S

ou

th z

on

es.

Th

e m

od

el g

ra

de

s w

ere

estim

ate

d u

sin

g b

oth

th

e D

TC

(D

avis

Tu

be

Co

nce

ntr

ate

) a

nd

he

ad

gra

de

da

ta.

Be

ca

use

th

e D

TC

re

su

lts h

ave

va

ria

ble

sa

mp

le s

up

po

rt

(m

ass r

eco

ve

ry),

a n

ew

se

t o

f va

ria

ble

s w

as

ca

lcu

late

d f

or e

ach

co

mp

osite

to

fa

cilita

te t

he

in

clu

sio

n o

f co

nce

ntr

ate

gra

de

s in

to t

he

mo

de

l. T

he

se

va

ria

ble

s r

ep

re

se

nt

the

in

situ

gra

de

of

the

ma

teria

l th

at

is e

xp

ecte

d t

o r

ep

ort

to t

he

ma

gn

etic f

ra

ctio

n.

Ce

lls t

ha

t d

id n

ot

re

ce

ive

an

in

terp

ola

ted

gra

de

we

re

assig

ne

d d

efa

ult g

ra

de

s e

qu

iva

len

t to

th

e c

om

po

site

gra

de

ave

ra

ge

s f

or t

he

do

ma

in

Mo

de

l va

lid

atio

n in

clu

de

d:

• V

isu

al co

mp

aris

on

s b

etw

ee

n t

he

in

pu

t sa

mp

le a

nd

estim

ate

d m

od

el g

ra

de

s

• G

lob

al a

nd

lo

ca

l sta

tistica

l co

mp

aris

on

s b

etw

ee

n t

he

sa

mp

le a

nd

mo

de

l d

ata

• A

n a

sse

ssm

en

t o

f e

stim

atio

n p

erfo

rm

an

ce

me

asu

re

s.


1 1 1

A N N U A L R E P O R T 2 0 1 8


SR

K C

on

su

ltin

g

Ap

pe

nd

ix B

CU

NN

/BR

OW

/wulr

Jupiter IG

R T

able

1 for M

t M

ason a

nd M

t Id

a.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Mo

istu

re

•

Wh

eth

er t

he

to

nn

ag

es a

re

estim

ate

d o

n a

dry

ba

sis

or w

ith

na

tura

l m

ois

ture

, a

nd

th

e m

eth

od

of

de

term

ina

tio

n o

f th

e m

ois

ture

co

nte

nt.

Th

e r

eso

urce

estim

ate

s a

re

exp

re

sse

d o

n a

dry t

on

na

ge

ba

sis

, a

nd

in

situ

mo

istu

re

co

nte

nt

ha

s n

ot

be

en

estim

ate

d.

A d

escrip

tio

n o

f d

en

sity d

ata

is p

re

se

nte

d b

elo

w.

Cu

t-o

ff

pa

ra

me

ters

• T

he

ba

sis

of

the

ad

op

ted

cu

t-o

ff g

ra

de

(s) o

r

qu

ality

pa

ra

me

ters a

pp

lie

d.

A c

ut-

off

gra

de

of

10

% M

ag

ne

tic F

e h

as b

ee

n u

se

d f

or r

eso

urce

re

po

rtin

g (

this

is t

he

in

situ

Fe

gra

de

of

the

ma

teria

l th

at

is e

xp

ecte

d t

o r

ep

ort

to t

he

ma

gn

etic c

on

ce

ntr

ate

).

Th

is c

ut -

off

gra

de

cle

arly

dis

crim

ina

tes

be

twe

en

BIF

an

d m

afic m

ate

ria

l, a

nd

th

e p

re

lim

ina

ry m

eta

llu

rg

ica

l te

stw

ork in

dic

ate

s t

ha

t th

ere

is a

re

aso

na

ble

le

ve

l o

f co

nfid

en

ce

th

at

a m

arke

tab

le c

on

ce

ntr

ate

ca

n b

e p

ro

du

ce

d f

ro

m t

he

BIF

ma

teria

l.

A g

ra

de

-to

nn

ag

e a

sse

ssm

en

t in

dic

ate

s m

inim

al ch

an

ge

to

ma

ss r

eco

ve

ry o

r c

on

ce

ntr

ate

gra

de

s if

the

cu

t-

off

gra

de

is in

cre

ase

d t

o 2

0%

.

Min

ing

fa

cto

rs

or

assu

mp

tio

ns

• A

ssu

mp

tio

ns m

ad

e r

eg

ard

ing

po

ssib

le m

inin

g

me

tho

ds,

min

imu

m m

inin

g d

ime

nsio

ns a

nd

inte

rn

al (o

r,

if a

pp

lica

ble

, e

xte

rn

al)

min

ing

dilu

tio

n.

It is a

lwa

ys n

ece

ssa

ry a

s p

art

of

the

pro

ce

ss o

f d

ete

rm

inin

g r

ea

so

na

ble

pro

sp

ects

fo

r

eve

ntu

al e

co

no

mic

extr

actio

n t

o c

on

sid

er

po

ten

tia

l m

inin

g m

eth

od

s,

bu

t th

e a

ssu

mp

tio

ns

ma

de

re

ga

rd

ing

min

ing

me

tho

ds a

nd

pa

ra

me

ters

wh

en

estim

atin

g M

ine

ra

l R

eso

urce

s m

ay n

ot

alw

ays b

e r

igo

ro

us.

Wh

ere

th

is is t

he

ca

se

, th

is

sh

ou

ld b

e r

ep

orte

d w

ith

an

exp

lan

atio

n o

f th

e

ba

sis

of

the

min

ing

assu

mp

tio

ns m

ad

e.

Pre

lim

ina

ry m

inin

g s

tud

ies in

dic

ate

th

at

ore

will like

ly b

e e

xtr

acte

d u

sin

g c

on

ve

ntio

na

l se

lective

op

en

pit

min

ing

me

tho

ds,

wh

ich

in

clu

de

s h

yd

ra

ulic e

xca

va

tor m

inin

g,

an

d d

um

p t

ru

ck h

au

lag

e.

M

inin

g d

ilu

tio

n

assu

mp

tio

ns h

ave

no

t b

ee

n f

acto

re

d in

to t

he

re

so

urce

estim

ate

s.

Me

tallu

rg

ica

l

facto

rs o

r

assu

mp

tio

ns

• T

he

ba

sis

fo

r a

ssu

mp

tio

ns o

r p

re

dic

tio

ns

re

ga

rd

ing

me

tallu

rg

ica

l a

me

na

bility.

It is a

lwa

ys

ne

ce

ssa

ry a

s p

art

of

the

pro

ce

ss o

f d

ete

rm

inin

g

re

aso

na

ble

pro

sp

ects

fo

r e

ve

ntu

al e

co

no

mic

extr

actio

n t

o c

on

sid

er p

ote

ntia

l m

eta

llu

rg

ica

l

me

tho

ds,

bu

t th

e a

ssu

mp

tio

ns r

eg

ard

ing

me

tallu

rg

ica

l tr

ea

tme

nt

pro

ce

sse

s a

nd

pa

ra

me

ters m

ad

e w

he

n r

ep

ortin

g M

ine

ra

l

Re

so

urce

s m

ay n

ot

alw

ays b

e r

igo

ro

us.

Wh

ere

this

is t

he

ca

se

, th

is s

ho

uld

be

re

po

rte

d w

ith

an

exp

lan

atio

n o

f th

e b

asis

of

the

me

tallu

rg

ica

l

assu

mp

tio

ns m

ad

e.

It is p

ro

po

se

d t

ha

t th

e M

t Id

a m

ate

ria

l w

ill b

e u

se

d a

s f

ee

dsto

ck f

or t

he

pro

du

ctio

n o

f a

ma

gn

etite

co

nce

ntr

ate

. P

re

lim

ina

ry m

eta

llu

rg

ica

l te

stw

ork c

om

mis

sio

ne

d b

y J

up

ite

r in

dic

ate

s t

ha

t th

ere

is a

re

aso

na

ble

le

ve

l o

f co

nfid

en

ce

in

th

e a

me

na

bility o

f th

e M

t Id

a m

ate

ria

l to

pro

ce

ssin

g u

sin

g c

on

ve

ntio

na

l

grin

din

g a

nd

ma

gn

etic s

ep

ara

tio

n t

ech

niq

ue

s.

T

he

pre

lim

ina

ry m

eta

llu

rg

ica

l te

st

re

su

lts a

nd

th

e D

TR

re

su

lts in

dic

ate

acce

pta

ble

ma

ss r

eco

ve

rie

s,

an

d a

cce

pta

ble

le

ve

ls o

f F

e a

nd

co

nta

min

an

ts in

th

e

co

nce

ntr

ate

.


1 1 2



SR

K C

on

su

ltin

g

Ap

pe

nd

ix B

CU

NN

/BR

OW

/wulr

Jupiter IG

R T

able

1 for M

t M

ason a

nd M

t Id

a.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

En

vir

on

me

nta

l

facto

rs o

r

assu

mp

tio

ns

• A

ssu

mp

tio

ns m

ad

e r

eg

ard

ing

po

ssib

le w

aste

an

d p

ro

ce

ss r

esid

ue

dis

po

sa

l o

ptio

ns.

It is

alw

ays n

ece

ssa

ry a

s p

art

of

the

pro

ce

ss o

f

de

term

inin

g r

ea

so

na

ble

pro

sp

ects

fo

r e

ve

ntu

al

eco

no

mic

extr

actio

n t

o c

on

sid

er t

he

po

ten

tia

l

en

vir

on

me

nta

l im

pa

cts

of

the

min

ing

an

d

pro

ce

ssin

g o

pe

ra

tio

n.

Wh

ile

at

this

sta

ge

th

e

de

term

ina

tio

n o

f p

ote

ntia

l e

nvir

on

me

nta

l

imp

acts

, p

articu

larly

fo

r a

gre

en

fie

lds p

ro

ject,

ma

y n

ot

alw

ays b

e w

ell a

dva

nce

d,

the

sta

tus o

f

ea

rly

co

nsid

era

tio

n o

f th

ese

po

ten

tia

l

en

vir

on

me

nta

l im

pa

cts

sh

ou

ld b

e r

ep

orte

d.

Wh

ere

th

ese

asp

ects

ha

ve

no

t b

ee

n c

on

sid

ere

d

this

sh

ou

ld b

e r

ep

orte

d w

ith

an

exp

lan

atio

n o

f

the

en

vir

on

me

nta

l a

ssu

mp

tio

ns m

ad

e.

It is a

nticip

ate

d t

ha

t m

ate

ria

l in

clu

de

d in

th

e r

eso

urce

will b

e m

ine

d u

nd

er t

he

re

leva

nt

en

vir

on

me

nta

l

pe

rm

ittin

g,

wh

ich

will b

e d

efin

ed

as a

pa

rt

su

bse

qu

en

t stu

die

s.

Th

e c

ha

ra

cte

ris

atio

n o

f co

nta

min

atio

n p

ote

ntia

l is

exp

ecte

d t

o b

e c

om

ple

ted

du

rin

g a

PF

S o

r D

FS

an

d

facto

re

d in

to w

aste

ro

ck s

tora

ge

de

sig

n.

Th

e M

ou

nt

Ida

ma

gn

etite

de

po

sits o

ccu

r in

a g

eo

log

ica

l se

ttin

g t

ha

t is

lik

ely

to

co

nta

in a

sb

estifo

rm

min

era

ls.

Fib

ro

us m

ate

ria

l h

as b

ee

n o

bse

rve

d in

so

me

co

re

sa

mp

les,

an

d is e

xp

ecte

d t

o b

e p

re

se

nt

as f

ine

-g

ra

ine

d

actin

olite

in

th

e m

afic w

aste

un

its,

as w

ell a

s c

oa

rse

r- g

ra

ine

d m

ate

ria

l in

millim

etr

e w

idth

ve

ins a

lon

g jo

int

an

d f

au

lt p

lan

es.

In

20

12

, Ju

pite

r s

ub

mitte

d 3

24

sa

mp

les f

or X

RD

/SE

M a

na

lyse

s;

ho

we

ve

r,

SR

K is

un

aw

are

of

wh

eth

er t

his

stu

dy w

as c

om

ple

ted

prio

r t

o p

ro

ject

term

ina

tio

n.

Bu

lk d

en

sity

• W

he

the

r a

ssu

me

d o

r d

ete

rm

ine

d.

If a

ssu

me

d,

the

ba

sis

fo

r t

he

assu

mp

tio

ns.

If d

ete

rm

ine

d,

the

me

tho

d u

se

d,

wh

eth

er w

et

or d

ry,

the

fre

qu

en

cy

of

the

me

asu

re

me

nts

, th

e n

atu

re

, siz

e a

nd

re

pre

se

nta

tive

ne

ss o

f th

e s

am

ple

s.

• T

he

bu

lk d

en

sity f

or b

ulk

ma

teria

l m

ust

ha

ve

be

en

me

asu

re

d b

y m

eth

od

s t

ha

t a

de

qu

ate

ly

acco

un

t fo

r v

oid

sp

ace

s (

vu

gs,

po

ro

sity,

etc

.),

mo

istu

re

an

d d

iffe

re

nce

s b

etw

ee

n r

ock a

nd

alte

ra

tio

n z

on

es w

ith

in t

he

de

po

sit.

• D

iscu

ss a

ssu

mp

tio

ns f

or b

ulk

de

nsity e

stim

ate

s

use

d in

th

e e

va

lua

tio

n p

ro

ce

ss o

f th

e d

iffe

re

nt

ma

teria

ls.

Th

e d

en

sity d

ata

se

ts w

ere

de

riv

ed

fro

m b

ulk

de

nsity m

ea

su

re

me

nts

acq

uir

ed

fro

m d

ow

nh

ole

ge

op

hysic

al

log

gin

g,

as w

ell a

s f

ro

m w

ate

r im

me

rsio

n la

bo

ra

tory t

ests

co

nd

ucte

d o

n c

ore

sa

mp

les.

Th

e g

eo

ph

ysic

al

log

gin

g d

ata

se

t co

nta

ine

d a

to

tal o

f 2

09

,62

6 m

ea

su

re

me

nts

acq

uir

ed

fro

m 9

3 d

rill h

ole

s.

Th

e la

bo

ra

tory

da

tase

t co

nta

ine

d a

to

tal o

f 1

,73

3 r

esu

lts a

cq

uir

ed

fro

m 2

2 h

ole

s.

A s

tro

ng

co

rre

latio

n w

as o

bse

rve

d b

etw

ee

n d

en

sity a

nd

to

tal F

e.

A r

eg

re

ssio

n e

qu

atio

n d

eriv

ed

fro

m t

his

co

rre

latio

n w

as u

se

d t

o e

stim

ate

th

e d

en

sity f

or e

ach

ce

ll f

ro

m t

he

estim

ate

d F

e g

ra

de

. T

he

me

an

mo

de

l

de

nsity is a

pp

ro

xim

ate

ly 3

.6 t

/m3.

A d

eta

ile

d c

om

pa

ris

on

of

the

de

nsity d

ata

acq

uir

ed

fro

m d

ow

nh

ole

ge

op

hysic

al su

rve

ys w

ith

th

e w

ate

r

imm

ersio

n t

est

da

ta h

ad

no

t b

ee

n c

om

ple

ted

at

the

tim

e o

f p

ro

ject

term

ina

tio

n.

Th

is h

as b

ee

n t

ake

n in

to

co

nsid

era

tio

n w

he

n a

ssig

nin

g c

lassific

atio

ns t

o t

he

re

so

urce

estim

ate

s.


1 1 3

A N N U A L R E P O R T 2 0 1 8



SR

K C

on

su

ltin

g

Ap

pe

nd

ix B

CU

NN

/BR

OW

/wulr

Jupiter IG

R T

able

1 for M

t M

ason a

nd M

t Id

a.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

Cla

ssific

atio

n

• T

he

ba

sis

fo

r t

he

cla

ssific

atio

n o

f th

e M

ine

ra

l

Re

so

urce

s in

to v

aryin

g c

on

fid

en

ce

ca

teg

orie

s.

• W

he

the

r a

pp

ro

pria

te a

cco

un

t h

as b

ee

n t

ake

n o

f

all r

ele

va

nt

facto

rs (

i.e

. re

lative

co

nfid

en

ce

in

ton

na

ge

/gra

de

estim

atio

ns,

re

lia

bility o

f in

pu

t

da

ta,

co

nfid

en

ce

in

co

ntin

uity o

f g

eo

log

y a

nd

me

tal va

lue

s,

qu

ality

, q

ua

ntity

an

d d

istr

ibu

tio

n o

f

the

da

ta).

• W

he

the

r t

he

re

su

lt a

pp

ro

pria

tely

re

fle

cts

th

e

Co

mp

ete

nt

Pe

rso

n’s

vie

w o

f th

e d

ep

osit.

Th

e r

eso

urce

cla

ssific

atio

ns h

ave

be

en

ap

plie

d b

ase

d o

n a

co

nsid

era

tio

n o

f th

e c

on

fid

en

ce

in

th

e

ge

olo

gic

al in

terp

re

tatio

n,

the

qu

ality

an

d q

ua

ntity

of

the

in

pu

t d

ata

, th

e c

on

fid

en

ce

in

th

e e

stim

atio

n

tech

niq

ue

, a

nd

th

e lik

ely

eco

no

mic

via

bility o

f th

e m

ate

ria

l.

Of

the

se

, d

rill sp

acin

g a

nd

da

ta q

ua

lity

are

co

nsid

ere

d t

o b

e t

he

co

ntr

ollin

g f

acto

rs o

n c

lassific

atio

n.

Th

e a

ve

ra

ge

drill sp

acin

g in

Ce

ntr

al zo

ne

is a

pp

ro

xim

ate

ly 1

00

m w

ith

a u

nifo

rm

co

ve

ra

ge

ap

art

fro

m in

th

e

pe

rip

he

ra

l a

re

as.

A n

om

ina

l d

rill sp

acin

g o

f 2

00

m h

as b

ee

n u

se

d in

th

e S

ou

th a

nd

No

rth

zo

ne

, h

ow

eve

r

the

co

ve

ra

ge

is q

uie

t ir

re

gu

lar.

Ge

olo

gic

al co

ntin

uity a

pp

ea

rs t

o b

e w

ell d

efin

ed

in

th

e 1

00

m s

pa

ce

d d

ata

,

an

d t

he

va

rio

gra

ph

y in

dic

ate

s u

se

ful g

ra

de

co

ntin

uity r

an

ge

s o

f a

t le

ast

30

0 m

.

A s

ign

ific

an

t a

mo

un

t o

f q

ua

lity

assu

ra

nce

da

ta h

as b

ee

n c

olle

cte

d;

ho

we

ve

r,

at

the

tim

e o

f th

e s

tud

y

term

ina

tio

n a

t th

e e

nd

of

20

12

, a

de

taile

d a

sse

ssm

en

t h

ad

no

t b

ee

n c

om

ple

ted

. A

pre

lim

ina

ry a

sse

ssm

en

t

did

no

t in

dic

ate

an

y s

ign

ific

an

t is

su

es w

ith

th

e r

elia

bility o

f th

e d

ata

fo

r r

eso

urce

estim

atio

n.

Ba

se

d o

n t

he

ab

ove

co

nsid

era

tio

ns,

a c

lassific

atio

n o

f In

dic

ate

d R

eso

urce

ha

s b

ee

n a

ssig

ne

d t

o t

he

Ce

ntr

al zo

ne

estim

ate

s in

th

e r

eg

ion

s w

ith

un

ifo

rm

drill co

ve

ra

ge

. A

cla

ssific

atio

n o

f In

ferre

d h

as b

ee

n

assig

ne

d t

o r

em

ain

ing

Ce

ntr

al, S

ou

th,

an

d N

orth

zo

ne

estim

ate

s

On

ly m

ate

ria

l in

terp

re

ted

as B

IF h

as b

ee

n a

ssig

ne

d a

re

so

urce

cla

ssific

atio

n a

nd

in

clu

de

d in

th

e r

eso

urce

inve

nto

ry.

Au

dits o

r

re

vie

ws

• T

he

re

su

lts o

f a

ny a

ud

its o

r r

evie

ws o

f M

ine

ra

l

Re

so

urce

estim

ate

s.

SR

K is n

ot

aw

are

of

an

y in

de

pe

nd

en

t a

ud

its o

r r

evie

ws h

ave

be

en

co

nd

ucte

d o

n t

he

mo

st

re

ce

nt re

so

urce

estim

ate

s.

Dis

cu

ssio

n o

f

re

lative

accu

ra

cy/

co

nfid

en

ce

• W

he

re

ap

pro

pria

te a

sta

tem

en

t o

f th

e r

ela

tive

accu

ra

cy a

nd

co

nfid

en

ce

le

ve

l in

th

e M

ine

ra

l

Re

so

urce

estim

ate

usin

g a

n a

pp

ro

ach

or

pro

ce

du

re

de

em

ed

ap

pro

pria

te b

y t

he

Co

mp

ete

nt

Pe

rso

n.

Fo

r e

xa

mp

le,

the

ap

plica

tio

n

of

sta

tistica

l o

r g

eo

sta

tistica

l p

ro

ce

du

re

s t

o

qu

an

tify

th

e r

ela

tive

accu

ra

cy o

f th

e r

eso

urce

with

in s

tate

d c

on

fid

en

ce

lim

its,

or,

if s

uch

an

ap

pro

ach

is n

ot

de

em

ed

ap

pro

pria

te,

a

qu

alita

tive

dis

cu

ssio

n o

f th

e f

acto

rs t

ha

t co

uld

aff

ect

the

re

lative

accu

ra

cy a

nd

co

nfid

en

ce

of

the

estim

ate

.

• T

he

sta

tem

en

t sh

ou

ld s

pe

cify w

he

the

r it

re

late

s

to g

lob

al o

r lo

ca

l e

stim

ate

s,

an

d,

if lo

ca

l, s

tate

the

re

leva

nt

ton

na

ge

s,

wh

ich

sh

ou

ld b

e r

ele

va

nt

to t

ech

nic

al a

nd

eco

no

mic

eva

lua

tio

n.

Do

cu

me

nta

tio

n s

ho

uld

in

clu

de

assu

mp

tio

ns

ma

de

an

d t

he

pro

ce

du

re

s u

se

d.

Th

e r

eso

urce

estim

ate

s h

ave

be

en

pre

pa

re

d a

nd

cla

ssifie

d in

acco

rd

an

ce

with

th

e g

uid

elin

es t

ha

t

acco

mp

an

y t

he

JO

RC

Co

de

(2

01

2),

an

d n

o a

tte

mp

ts h

ave

be

en

ma

de

to

fu

rth

er q

ua

ntify

th

e u

nce

rta

inty

in

the

estim

ate

s.

A d

eta

ile

d c

om

pila

tio

n o

f th

e q

ua

lity

assu

ra

nce

da

ta h

as n

ot

ye

t b

ee

n c

om

ple

ted

, a

lth

ou

gh

th

e p

re

lim

ina

ry

asse

ssm

en

t d

id n

ot

hig

hlig

ht

an

y s

ign

ific

an

t co

nce

rn

s w

ith

th

e d

ata

. T

o d

ate

, n

o w

ork h

as b

ee

n c

om

ple

ted

to in

ve

stig

ate

th

e lik

elih

oo

d o

f g

ra

de

bia

s d

ue

to

po

ssib

le p

re

fere

ntia

l m

ate

ria

l lo

ss in

th

e R

C s

am

ple

s.

A d

eta

ile

d c

om

pa

ris

on

of

the

de

nsitie

s d

eriv

ed

fro

m d

ow

nh

ole

ge

op

hysic

al lo

gg

ing

ag

ain

st

oth

er d

en

sity

test

pro

ce

du

re

s h

as n

ot

ye

t b

ee

n c

om

ple

ted

.

In N

ove

mb

er 2

01

2,

the

su

rve

yin

g c

on

tra

cto

r id

en

tifie

d a

n e

leva

tio

n d

iscre

pa

ncy o

f 1

m in

th

e s

urve

y d

ata

.

Th

is w

as c

on

sid

ere

d t

o h

ave

min

ima

l im

pa

ct

on

th

e r

eso

urce

estim

ate

s a

nd

cla

ssific

atio

n,

an

d n

o

ad

justm

en

ts w

ere

ap

plie

d.

Th

e r

eso

urce

qu

an

titie

s s

ho

uld

be

co

nsid

ere

d a

s r

eg

ion

al o

r g

lob

al e

stim

ate

s o

nly

. T

he a

cco

mp

an

yin

g

mo

de

ls a

re

co

nsid

ere

d s

uita

ble

to

su

pp

ort

min

e p

lan

nin

g s

tud

ies,

bu

t a

re

no

t co

nsid

ere

d s

uita

ble

fo

r

pro

du

ctio

n p

lan

nin

g,

or s

tud

ies t

ha

t p

lace

sig

nific

an

t re

lia

nce

up

on

th

e lo

ca

l e

stim

ate

s.

1 1 4




SR

K C

on

su

ltin

g

Ap

pe

nd

ix B

CU

NN

/BR

OW

/wulr

Jupiter IG

R T

able

1 for M

t M

ason a

nd M

t Id

a.d

ocx

23 M

ay 2

018

Crit

eria

JO

RC

Cod

e ex

plan

atio

n C

omm

enta

ry

• T

he

se

sta

tem

en

ts o

f re

lative

accu

ra

cy a

nd

co

nfid

en

ce

of

the

estim

ate

sh

ou

ld b

e c

om

pa

re

d

with

pro

du

ctio

n d

ata

, w

he

re

ava

ila

ble

.

1 1 5

A N N U A L R E P O R T 2 0 1 8


This page has been left intentionally.

1 1 6


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