The Sunny Corner volcanic-hosted massive sulphide (VHMS) deposit is a flat lying system in its eastern half and moderately westward dipping in its western half.

The mineralised zone is located at the contact between the Occidental Volcanics and the Sunny Corner siltstones. This sulphide zone is comprised of massive quartz-pyritearsenopyrite-sphalerite-galena-chalcopyrite-silver-gold. The sulphide lens is associated with marked silicification and sericite alteration within laminated siltstone (Sainty, 2009).

Two other main mineralisation styles identified within EL 5964 (David, 2012):

Remobilised structurally-controlled shear-hosted base metals (like the Nevada copper occurrence)

Quartz vein-hosted gold with a genetic link to quartz-feldspar porphyry intrusions (such as Bobs Creek, Little Hill & Big Hill)

EL5964 lies around2 hours drive west of Sydney, approximately 104km2, between Lithgow and Bathurst.

It commenced as the first financially successful and at one stage, the largest, sliver mine in Australia with very high historical silver grades to 1,000 g/t Ag plus gold and copper.

Historical metallurgical testing

• Preliminary program of flotation tests:

A bulk sulphide concentrate Selective copper, lead and zinc concentrates

• Bulk sulphide concentrate successful

> 97% recovery of Cu, Pb, Zn and Ag @ P80 53 µm) grind

• Separate Cu, Pb and Zn concentrates were not as successful

Metallurgical upside potential

• More recent (2018) Sunny Core drillcore observations of a coarser sphalerite and galena grainsizes versus the fine grain observed in the drillcore on which the historical metallurgical tests were conducted (McGilvray, 2018, and Fig. 6)

• Historical reports indicate that the Sunny Corner Silver Mining Company successfully recovered up to 3.5 Moz Ag, 18,000 Oz Au and 1,452 t Cu

• Under consideration is the potential to conduct further drilling for a wider selection of representative samples for further metallurgical testing and evaluation of mineralogy

• Risks include that future metallurgical testwork is not successful in producing saleable product

The resource has been estimated by H&S Consultants Pty Ltd in 2008 on the basis of a cut-off grade of 2.5% combined base metals (cbm), a density of 2.8, and open-cut mining method.

The information on which the estimate was based (Information), and the estimate, were first disclosed under JORC 2004. The estimate has not been updated since to comply with JORC 2012 on the basis that the Information has not materially changed since it was last reported.

Non JORC estimates have been conducted within the slag and mullock heaps lying on the surface of the historic Sunny Corner mine.