Update on Merger with Polymetals - Notice of Meeting

BDO CORPORATE FINANCE (WA) PTY LTD
Polymetals Mining Limited and Southern Cross Goldfields Limited
Technical Specialist's Report
CONTENTS
1 MINERAL ASSETS .................................................................................................................................. 1
1.1 Polymetals Mining Limited ............................................................................................................. 1
1.2 Southern Cross Goldfields Limited ................................................................................................ 1
2 VALUATION METHODS AND MACROECONOMIC FACTORS ............................................................. 3
2.1 Valuation Methods ......................................................................................................................... 3
2.1.1 Operations and Development Projects ........................................................................... 3
2.2 Exploration ..................................................................................................................................... 3
3 POLYMETALS MINING LIMITED ............................................................................................................ 5
3.1 Mt Boppy Gold Project ................................................................................................................... 5
3.1.1 Introduction ..................................................................................................................... 5
3.1.2 Geology ........................................................................................................................... 6
3.1.2.1 Mineral Resources ..................................................................................... 7
3.1.2.2 Exploration ................................................................................................. 8
3.1.3 Mining ............................................................................................................................. 9
3.1.4 Ore Reserves ................................................................................................................ 10
3.1.5 Processing Operations ................................................................................................. 10
3.1.5.1 Proposed Flowsheet ................................................................................ 10
3.1.5.2 Metallurgical Testing ................................................................................ 12
3.1.5.3 Plant Layout ............................................................................................. 12
3.1.5.4 Capital Costs ............................................................................................ 12
3.1.5.5 Operating Costs ....................................................................................... 13
3.1.5.6 Worker's Camps ....................................................................................... 14
3.1.5.7 Water Supply ............................................................................................ 14
3.1.5.8 Power Supply ........................................................................................... 15
3.1.6 Environment .................................................................................................................. 15
3.1.6.1 Overview .................................................................................................. 15
3.1.6.2 Statutory Environmental Approvals .......................................................... 15
3.1.6.3 Biodiversity and Conservation.................................................................. 15
3.1.6.4 Acid and Metalliferous Drainage .............................................................. 15
3.1.6.5 Water Management .................................................................................. 16
3.1.6.6 Closure ..................................................................................................... 16
3.1.7 Project Implementation ................................................................................................. 16
3.1.8 AMC Production Cases ................................................................................................ 17
3.1.9 Opportunities and Risks ................................................................................................ 18
3.2 Turner River ................................................................................................................................. 18
3.2.1 Geology ......................................................................................................................... 20
3.2.2 Turner River Gold Project ............................................................................................. 20
3.2.2.1 Resources ................................................................................................ 21
3.2.2.2 Mining ....................................................................................................... 21
3.2.2.3 Processing ................................................................................................ 22
3.2.2.4 Environmental .......................................................................................... 22
3.2.2.5 Turner River Exploration .......................................................................... 23
3.2.2.6 Turner River Gold Project Valuation ........................................................ 24
3.2.3 Turner River Base Metals Project ................................................................................. 24
3.2.3.1 Geology .................................................................................................... 25
3.2.3.2 Mineral Resources ................................................................................... 26
3.2.3.3 Valuation .................................................................................................. 26
4 SOUTHERN CROSS GOLDFIELDS LIMITED ...................................................................................... 27
4.1 Marda Gold Project ...................................................................................................................... 27
4.1.1 Introduction ................................................................................................................... 27
4.1.2 Geology ......................................................................................................................... 28
4.1.2.1 Northern Deposits .................................................................................... 28
4.1.2.2 Southern Deposits .................................................................................... 29
4.1.3 Resources ..................................................................................................................... 29
4.1.4 Joint Ventures ............................................................................................................... 30
4.1.4.1 Radio Gold Mine ...................................................................................... 30
4.1.4.2 Dulcie Gold Project .................................................................................. 31
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