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
3.2.2.1 Resources
Mineral Resources for the Turner River Gold Project at 13 March 2013 are listed in Table 3.6. AMC has
independently reported the total tonnes and grade of each Mineral Resource estimate and found no material
differences when compared to the total tonnes and grade reported at 13 March 2013.
Table 3.6 Turner River Gold Project – Mineral Resources at 13 March 2013
Location Cut-off
Measured Indicated Inferred
Grade
(g/t Au)
Tonnes
(kt)
Grade
(g/t Au)
Contained
Gold
(oz Au)
Tonnes
(kt)
Grade
(g/t Au)
Contained
Gold
(oz Au)
Tonnes
(kt)
Grade
(g/t Au)
Contained
Gold
(oz Au)
Wingina Well above ~55 mRL 1 0.5 2,300 1.8 130,000 700 1.1 26,000 100 1.2 5,000
1
2
3
Wingina Well below ~55 mRL 1 1.0 400 2.1 26,000 400 1.6 22,000 1,200 1.5 58,000
Mt Berghaus 2 0.5 - - - - - - 900 1.4 43,000
Amanda 3 0.5 - - - - - - 700 1.6 35,000
Total 2,700 1.8 157,000 1,100 1.3 47,000 2,900 1.5 141,000
As reported by Polymetals Mining Ltd, March 2013. 458 drillholes. Ordinary Kriging.
Resource estimation by Ravensgate, February 2012.125 drillholes. Ordinary Kriging. Verified by Polymetals.
Resource estimation by Ravensgate, March 2012. 248 drillholes. Ordinary Kriging. Verified by Polymetals.
The resource estimates are based mostly on diamond and reverse circulation (RC) drilling. Minor air core
(AC) drilling has been included in the Wingina Well resource.
Drilling completed by Polymetals at Wingina Well in 2012 was carried out using common industry practice
with assay quality control in place. Drillhole collars are surveyed and downhole surveys are carried out.
Details of drilling data quality (sample preparation, assay quality control, drillhole collar and downhole
surveying) for the Amanda and Mt Berghaus resource estimates are very limited.
The interpretations for the resource estimates were developed relying on drillhole logging and based on
lithological control. A nominal lower cut off grade of 0.5 g/t Au was used to interpret the Amanda and Mt
Berghaus mineralisation, and a nominal lower COG of 0.3 g/t Au was used to interpret the Wingina Well
mineralisation.
All of the deposits have a number of mineralised domains. Assays within the domains were composited to
1 m. The influence of statistical outliers on grade estimation was limited through top cutting or by restricting
the distance of influence of the outliers. Grades were estimated into the block models using OK. Estimation
parameters for Wingina Well were determined from a study of variography. Details of variography and
estimation parameters for Amanda and Mt Berghaus are poorly documented.
Densities for Wingina Well were derived from downhole gamma and diamond core measurements and were
assigned by weathering state. Densities for the Wingina Well estimate were 2.1 t/m 3 in oxide, 2.4 t/m 3 in
transitional and 2.6 t/m 3 in fresh rock. Densities for Amanda and Mt Berghaus were selected on the basis of
typical weathering domains within sediment hosted deposits. The method of assignment (by weathering
surface or elevation) was not specified. Densities for the Amanda and Mt Berghaus estimates were 2.4 t/m 3
in oxide, 2.6 t/m 3 in transitional and 2.8 t/m 3 in fresh rock.
Resource estimates were classified as Measured, Indicated or Inferred Resource based on data density and
quality, drill spacing, and geological confidence in resource domain continuity. Mineral Resources are
reported with Ore Reserves excluded.
AMC considers that the Turner River Gold Project Mineral Resource estimates were prepared using
accepted industry practice and have been classified in accordance with the JORC Code.
3.2.2.2 Mining
Polymetals engaged Australian Mine Design and Development Pty Ltd (AMDAD) to undertake a pit
optimisation study for the Turner River Gold project utilising the Mineral Resources at Wingina, Amanda and
21