Five targets advanced to drill-ready stage ahead of drilling anticipated to commence during the September 2013 Quarter.

Transcription

1 Quarterly Report For the Period Ending 30 June 2013 Highlights Copper Exploration Northern Territory Five targets advanced to drillready stage ahead of drilling anticipated to commence during the September 2013 Quarter. Drill ready targets comprise Mini Me West and El Gordo at the Illogwa IOCG Area, and Harry Creek, Red Rock Bore, and Coles Hill at Yambah. Prospectivity of the targets reinforced by identification of further surface copper mineralisation at Mini Me West, EM geophysical anomalies at El Gordo, and IP geophysical anomalies at Red Rock Bore. Additional six targets have been prioritised for further geophysical surveying and geological mapping in order to advance them to a drill ready stage. Nickel Exploration Northern Territory New magnetic anomalies that may represent previously unrecognised nickel copper PGE (NiCuPGE) bearing mafic intrusions under shallow cover identified from aeromagnetic survey recently completed by Mithril s Nickel Rights joint venture partner, MMG Limited. Field checking of these anomalies currently underway. Gold Exploration Western Australia New Spargos Reward Gold Deposit geological model identifies 3 parallel mineralised lode structures, all of which remain open along strike and at depth. Outlook New model to form basis for further exploration and initial resource estimate to be undertaken at a later date. Cash September 2013 Quarter focus will be the ongoing assessment of priority Northern Territory copper targets by further geological mapping, surface sampling and drilling. Cash reserves of $2.18M at 1 July This figure includes a 2011 / 2012 Financial Year Research and Development refund of $0.57M. 58 King William Road T: (61 8) ASX Code: MTH Goodwood, South Australia, 5034 F: (61 8) Issued Shares: 219,615,500 Page 1 of 10 E: admin@mithrilresources.com.au Market Capital: A$4.39M

2 Overview Mithril Resources has an extensive portfolio of highquality mineral exploration projects located within the emerging and proven mineral provinces of Australia. The Company is exploring for economic copper mineralisation within the highly prospective and relatively underexplored East Arunta Province, Northern Territory (East Arunta Project Area) and for gold mineralisation within the richly endowed Eastern Goldfields of Western Australia (West Kambalda Project Area) (Figure 1). Through its Nickel Rights joint venture partner, MMG Limited, the Company is also exploring for economic nickelcopper PGE mineralisation within portions of the East Arunta Project Area. Figure 1: Project Location Plan Exploration activities undertaken during the June 2013 Quarter comprised the advancement of priority copper targets throughout the East Arunta Project Area to drill ready status, geological modeling of the Spargos Reward Gold Deposit (West Kambalda Project Area), and completion of an aeromagnetic survey by MMG Limited within the eastern portion of the East Arunta Project Area. Corporate To prudently manage its cash reserves, Mithril implemented a number of initiatives during the Quarter designed to reduce its cash burn rate and ensure that discretionary expenditure remains focused on the priority East Arunta copper targets in the near term. Subsequent to the Quarter, the Company received a 2011 / 2012 Financial Year Research and Development refund of $0.57M, bringing its cash reserves at the start of the September 2013 Quarter to $2.18M. Copper Exploration Northern Territory During the Quarter, the Company carried out geological mapping, surface sampling, and geophysical surveying of priority targets throughout the East Arunta Project Area, which is located immediately north and east of Alice Springs in the Northern Territory (Figures 1 and 2). While results are still awaited for recent surface sampling programs, the work has now advanced five targets (i.e. Mini Me West, El Gordo, Harry Creek, Red Rock Bore, and Coles Hill North) to a drill ready stage where individual drill holes can now be sited. Drilling is anticipated to commence during the September 2013 Quarter, pending receipt of statutory approvals which are expected in early August The location of the drill ready targets is shown on Figure 2, and a brief description of each one is provided below. Page 2 of 10

3 Figure 2: East Arunta Project Area Location Plan showing exploration targets and MMG aeromagnetic survey boundaries Mini Me West (Mithril 80% and Cazaly Resources Ltd 20%) Mini Me West is located within the eastern half of Illogwa and comprises an 800 metre long coincident EM and IP geophysical anomaly. Portions of this anomaly lie beneath outcropping disseminated copper mineralisation (2012 rock chip results up to 1.9% copper Figure 3) and modeling suggests that the geophysical anomalies are two parallel steeply north east dipping bodies which may be attributable to sulphide mineralisation. During the Quarter, the target s prospectivity was reinforced with the identification of further outcropping quartz haematite alteration and copper (malachite) mineralisation directly above the IP anomaly (Figure 3). At the time of writing, results for 8 surface rock chip samples taken of the mineralisation were awaited. All statutory approvals to facilitate drilling have now been received for Mini Me West. Figure 3: Mini Me West showing coincident IP chargeability anomaly (red), VTEM conductor (black dashed line) and copper mineralised trends (red and yellow dashed lines) Page 3 of 10

4 El Gordo (Mithril 80% and Cazaly Resources Ltd 20%) El Gordo is located immediately south of Mini Me West, and comprises a zone of sporadically outcropping copper (malachite azurite) mineralisation and associated quartz haematite alteration which has been mapped over 800 metres strike length with surface widths ranging from 2 to 10 metres rock chip sampling of the mineralisation returned values ranging from 0.7% to 12.6% copper, 0.1g/t to 1.0g/t gold and 1.6g/t to 12.5g/t silver. Three shallow reconnaissance drill holes completed by Mithril in late 2012 at the eastern end of El Gordo, successfully intersected copper mineralisation, with one hole (MIRC008) returning 0.34% copper, 0.04g/t gold from 18 metres including 1.15% copper, 0.23g/t gold. The intersection remains open in all directions and will be tested by further tested by drilling in the upcoming program. A review of Mithril s 2012 VTEM survey data over the area has also identified three weak EM geophysical anomalies at El Gordo. The features have not been drill tested and their significance is currently being assessed given that they coincide with, and lie directly along strike from, known copper mineralisation. All statutory approvals to facilitate drilling have now been received for El Gordo. Harry Creek (Mithril 100%) At Harry Creek, outcropping amphibolemagnetite rocks with associated zinc lead copper mineralisation have been mapped continuously over 400 metres strike length (up to 15 metres true width as observed in surface outcrops). A single historical diamond drill hole completed in 1966 (DDH1) drilled to test the mineralisation returned 2.1% zinc, 0.21% copper, 0.3% lead, from 39 metres within a broader lower grade base metal halo. The mineralisation which has not been drill tested beneath the base of weathering, offers excellent potential with newly acquired ground magnetic data confirming that a strong magnetic feature coincident with the mineralisation extends well beyond the outcropping limits of the mineralised horizon. Further rock chip sampling has been recently undertaken at Harry Creek and at the time of writing, results for 5 rock chip samples taken of the mineralisation were awaited. Final statutory approvals to facilitate drilling are expected in early August for Harry Creek. Red Rock Bore (Mithril 100%) At Red Rock Bore, outcropping zinc lead copper mineralisation has been continuously drilled by previous explorers on nominal 50 metrespaced sections over 1 kilometre strike length (5 to 10 metres true width) to an average vertical depth of 100 metres with a best result of 3.7% zinc, 0.6% lead, and 0.09% copper from metres in RRK031 including 13.6% zinc, 0.1% lead, 0.08% copper from metres. The mineralisation occurs within a sulphide bearing quartz magnetite rock and remains open in all directions. The potential to extend the mineralisation at Red Rock Bore has been reinforced following the review of geophysical data. Modeling of newly acquired ground magnetic data confirms that a magnetic anomaly coincident with the drilled mineralisation extends for several hundred metres to the north west (along strike) beyond the current drilling. Similarly, a review of historic geophysical data has shown that a strong IP geophysical anomaly coincident with the drilled mineralisation also extends well beyond the current drilling. Significantly a number of parallel IP geophysical features, potentially indicative of new mineralised zones have also been identified. The parallel features lie beneath soil cover and have not been previously drill tested. Final statutory approvals to facilitate drilling are expected in early August for Red Rock Bore. Page 4 of 10

5 Coles Hill North (Mithril 100%) Coles Hill North lies 4 kilometres north of Red Rock Bore and comprises a soil covered EM geophysical conductive feature and coincident magnetic anomaly. The target has not been drill tested and is interpreted to sit in the same stratigraphic position as the Red Rock Bore mineralisation. Final statutory approvals to facilitate drilling are expected in early August for Coles Hill North. An additional six targets have also been prioritised for further geophysical surveying and geological mapping in order to advance them to a drill ready stage. These additional targets include Bessie s Reward where a ground electromagnetic (EM) survey completed during the Quarter failed to detect any significant anomalies. However given the extensive outcropping copper mineralisation at Bessie s Reward, and the lack of systematic drilling, further work such as IP geophysical surveying is required to better understand the target s potential. Nickel Exploration Northern Territory Huckitta Nickel Joint Venture (MMG Limited earning up to 80% of the Nickel Rights) During and Quarter, Mithril s Nickel Rights joint venture partner at Huckitta (East Arunta Project Area), MMG Limited (MMG) completed a detailed airborne magnetic survey over the two easternmost joint venture tenements (EL27243 and EL27435 Figure 2). The survey has successfully identified a number of features that potentially represent previously unrecognized nickel copper PGE bearing mafic intrusions under shallow cover. Field checking of these anomalies is currently underway. MMG can earn up to 80% of the nickel rights on Mithril s wholly owned tenements (excluding EL28335, EL24194 and EL24427) at Huckitta, by completing expenditure of $4 million and a Pre Feasibility study on a JORC Indicated Mineral Resource. Under the terms of the joint venture agreement, MMG must spend a minimum of $1.5 million by 31 October If MMG doesn t satisfy this requirement then it is obliged to pay Mithril the difference between actual expenditure and the $1.5 million. Gold Exploration Western Australia During the Quarter the Company carried out geological modeling of the Spargos Reward Gold Deposit, which is one of several priority targets within the West Kambalda Project Area, located approximately 30 kilometres west of Kambalda in the Eastern Goldfields of Western Australia (Figures 1 and 4). The project area is highly prospective for the discovery of economic gold mineralisation and incorporates the Spargos Reward Gold Project and the recently acquired Spargoville Gold Project. Page 5 of 10

6 Spargos Reward Gold Project (Mithril 100% excluding Nickel Rights) Geological modelling of the Spargos Reward Gold Deposit (historic production of approximately 29,257 8g/t gold to a vertical depth of 120 metres) following the receipt of highgrade drill results from drilling completed in the March 2013 Quarter confirmed the potential to extend the deposit As previously reported (March 2013 Quarterly Report), a number of highgrade intersections were obtained from the earlier drilling, including: g/t gold from 242 metres in 13SPRC07 including g/t gold from 243 metres, 4.60 g/t gold from 256 metres in 13SPRC09 including g/t gold from 260 metres, 3.18 g/t gold from 250 metres in 13SPRC08 including 8.15 g/t gold from 253 metres, 6.63 g/t gold from 220 metres in 13SPRC04 including 8.15 g/t gold from 222 metres, and 2.61 g/t gold from 159 metres in 13SPRC05 including 5.53 g/t gold from 162 metres. The new geological model demonstrates that gold mineralisation lies within up to 3 parallel lode structures, all of which remain Figure 4: West Kambalda Project Location Plan open along strike and at depth and will form the basis for supporting an initial resource estimate to be undertaken at a later date. Spargoville Gold Project (Mithril earning up to 80% from KalNorth Gold Mines) Mithril has now successfully completed all of the conditions precedent to the Farmin and Joint Venture Letter Agreement with KalNorth Gold Mines Limited ( KalNorth Gold ASX: KGM) whereby Mithril can to earn up to an 80% interest (by completing expenditure of $2 million over 4 years ASX Announcement dated 20 December 2012) in the Spargoville Gold Project which is located immediately adjacent to Mithril s Spargos Reward Gold Project. Mithril has commenced target generation activities on the project with an initial emphasis on the Lady Allison Gold Deposit (JORC Code Compliant Inferred Resource of 1.3g/t gold 86,800ozs) and the Logan s Find area, approximately 10 kilometres south of Lady Allison. The acquisition of the Spargoville Gold Project, in conjunction with Spargos Reward Gold Project, increases Mithril s landholding within the area to approximately 75km² and consolidates its position within the Eastern Goldfields of Western Australia. Investments Mithril is the largest shareholder in Musgrave Minerals Limited (ASX: MGV) with 9.28 million shares and 2.5 million options. Mithril vended tenements into Musgrave Minerals as part of their successful IPO that was completed on April 29th, Musgrave are continuing to explore on tenements in the Musgrave Ranges where they recently announced that nickelcopper and PGE targets were confirmed by vacuum drilling at Deering Hills. Followup is planned for the September Quarter. Page 6 of 10

7 Outlook The focus of activity for the September 2013 Quarter will be the ongoing assessment of priority Northern Territory copper targets by further geological mapping, surface sampling and drilling. David Hutton Managing Director Notes Specific East Arunta Project Area The East Arunta Project Area is highly prospective for the discovery of economic copper mineralisation within both the Iron Oxide Copper Gold (IOCG) and Volcanic Massive Sulphide (VMS) geological setting and incorporates the 5,100 kms² Huckitta Project and wholly owned 1,100 kms² Yambah Project. The Illogwa IOCG Area lies within the Huckitta Project and is located on three tenements, two of which (ELs and 25653) are subject to a joint venture between Mithril Resources (80%) and Sammy Resources Pty Ltd (20%), a wholly owned subsidiary of ASXlisted Cazaly Resources Ltd (ASX: CAZ). These parties are funding the project prorata and Mithril is the operator of the joint venture. The Yambah Project is prospective for Volcanic Massive Sulphide (VMS) hosted base metal mineralisation and structurally controlled gold mineralisation. Together the combined projects represent a significant greenfields exploration portfolio within the rapidly emerging, and relatively underexplored Eastern Arunta Province of the Northern Territory. Other significant mineral occurrences within the province includes the Company s Basil Copper Deposit (Inferred Resource of 0.57% copper, 0.05% cobalt), Kentor Gold s (ASX: KGL) Jervois Copper Silver Gold Project, and Kidman Resources (ASX: KDR) Home of Bullion Copper Project. About the Basil Copper Deposit The Inferred Mineral Resource of 0.57% copper, 0.05% cobalt has been calculated using a 0.3% copper cutoff grade. The Resource is composed of both interpolated and extrapolated resources and has been reported in accordance with the JORC Code (2004) and JORC/ASX Companies Update Number 03/07. Refer to ASX Announcement dated 21 March 2012 for further information. Notes Specific West Kambalda Project Area About the Lady Allison Gold Deposit Snowden Mining Industry Consultants was commissioned by KalNorth Gold Mines Limited to complete a resource estimate for the Lady Allison prospect. The resource estimate (Table 1) was completed in September 2011 and has been classified as an Inferred Resource and reported in accordance with the JORC code (JORC, 2004) and associated guidelines ( Table 2). Table 1 Lady Allison Inferred Mineral Resource at 0.5 g/t Au cut off Tonnes (t) Grade (Au g/t) Ounces (oz.) 2,130, ,000 The grade and ounces are reported to two significant figures and the tonnes are reported to three significant figures, which may result in apparent discrepancies in the table. Page 7 of 10

8 Table 2 Table One of the 2004 JORC Code for the Lady Allison Inferred Mineral Resource Item Comment Snowden carried out the following basic validation checks on the data supplied by KalNorth Gold Mines Limited prior to resource estimation: Database integrity Unsurveyed drill hole collars. Drill holes with overlapping sample intervals. Sample intervals with no assay data. Duplicate records. Assay grade ranges. Collar coordinate ranges. Valid hole orientation data. No significant errors were identified by the validation. Location of data points Geological interpretation Dimensions Estimation and modelling techniques Moisture Cutoff parameters Mining factors and assumptions Metallurgical factors and assumptions In situ density Classification Audits and reviews Relative confidence and accuracy The planned coordinates have been used for the coordinates for all the drill holes within the database and the creation of the topographic surface. The coordinates and the historical mine workings will be have to be picked up by DPGS. Interpretations of each mineralised zone have been completed by Snowden based on geological observations by KalNorth Gold Mines Limited. Mineralised envelopes used for resource estimation used a 0.3 g/t Au envelope with a minimum down hole length of 2 m and with a maximum internal waste interval of 2 m. Individual lodes were extended half way between sections or half the section width if the envelope is not terminated by a drill hole section. The envelopes were tapered using the dip/plunge of the envelope and extended no more than 20 m past the last drill hole intersection unless indicated up by other sections. Lady Allison The area of mineralisation occurs within a series of mineralised lodes which extend over a 380 m strike length and 340 m width. The area is extended to a known depth of around 230 m from surface. The thickness of the individual lodes ranges from less than 2 m up to 14 m. Grades for Au were estimated using ordinary block kriging. Not applicable to this estimate only dry mass considered. Resource estimate reported above a grade cutoff of 0.5 g/t Au within the mineralised zones. No mining factors or assumptions have been applied. No assumptions with respect to metallurgy have been applied but there is a reasonable prospect of economic extraction. Insitu density of 2.2 t/m 3 for oxide, 2.4t/m 3 for transitional and 2.7 t/m 3 for fresh zones was applied. Values were provided by the client. A density program should be undertaken to confirm the density. The estimate has been classified as an Inferred Mineral Resource based on geological confidence, the integrity of the data, the spatial continuity of the mineralisation as demonstrated by variography, and the quality of the estimation. Snowden has completed an internal peer review of the estimate. No studies of relative confidence have been carried out. Page 8 of 10

9 Notes Specific Mithril Resources Tenement Schedule State Project Area Project Tenement Mithril % NT East Arunta Huckitta EL25453 MTH 60% / OKU 40% (Harts Range JV) NT East Arunta Huckitta EL25643 MTH 80% / CAZ 20% (Sammy JV) NT East Arunta Huckitta EL25653 MTH 80% / CAZ 20% (Sammy JV) NT East Arunta Huckitta EL26942 MTH 100% NT East Arunta Huckitta EL27178 MTH 100% NT East Arunta Huckitta EL27243 MTH 100% NT East Arunta Huckitta EL27435 MTH 100% NT East Arunta Huckitta EL27662 MTH 100% NT East Arunta Huckitta EL28335 MTH 100% NT East Arunta Huckitta EL28336 MTH 100% NT East Arunta Huckitta EL28369 MTH 100% NT East Arunta Huckitta EL28471 MTH 100% NT East Arunta Huckitta EL28501 MTH 100% NT East Arunta Huckitta EL29931 MTH 100% NT East Arunta Mt Mabel EL29638 MTH 100% NT East Arunta Mt Mabel EL29639 MTH 100% NT East Arunta Mt Mabel EL29801 MTH 100% NT East Arunta Neutral Junction EL24253 MTH 33.3% (Neutral Junction JV) NT East Arunta Yambah EL28175 MTH 100% NT East Arunta Yambah EL28271 MTH 100% NT East Arunta Yambah EL28340 MTH 100% NT East Arunta Yambah EL29501 MTH 100% NT East Arunta Yambah EL29502 MTH 100% WA West Kambalda West Kambalda P15/4876 MTH 100% excluding nickel rights WA West Kambalda West Kambalda P15/4877 MTH 100% excluding nickel rights WA West Kambalda West Kambalda P15/4878 MTH 100% excluding nickel rights WA West Kambalda West Kambalda P15/4879 MTH 100% excluding nickel rights WA West Kambalda West Kambalda P15/4880 MTH 100% excluding nickel rights WA West Kambalda West Kambalda P15/4881 MTH 100% excluding nickel rights WA West Kambalda West Kambalda P15/4882 MTH 100% excluding nickel rights WA West Kambalda West Kambalda P15/4883 MTH 100% excluding nickel rights WA West Kambalda West Kambalda P15/4886 MTH 100% excluding nickel rights WA West Kambalda West Kambalda E15/1174 MTH earning up to 80% (Spargoville JV) WA West Kambalda West Kambalda M15/1806 MTH earning up to 80% (Spargoville JV) WA West Kambalda West Kambalda P15/4801 MTH earning up to 80% (Spargoville JV) WA West Kambalda West Kambalda P15/4802 MTH earning up to 80% (Spargoville JV) WA West Kambalda West Kambalda P15/4888 MTH earning up to 80% (Spargoville JV) WA West Kambalda West Kambalda P15/4889 MTH earning up to 80% (Spargoville JV) WA West Kambalda West Kambalda P15/5216 MTH earning up to 80% (Spargoville JV) WA West Kambalda West Kambalda P15/5236 MTH earning up to 80% (Spargoville JV) WA West Kambalda West Kambalda P15/5264 MTH earning up to 80% (Spargoville JV) WA West Kambalda West Kambalda P15/5392 MTH earning up to 80% (Spargoville JV) WA West Kambalda West Kambalda P15/5409 MTH earning up to 80% (Spargoville JV) WA West Kambalda West Kambalda P15/5494 MTH earning up to 80% (Spargoville JV) WA West Kambalda West Kambalda P15/5537 MTH earning up to 80% (Spargoville JV) WA West Kambalda West Kambalda P15/5545 MTH earning up to 80% (Spargoville JV) WA West Kambalda West Kambalda P15/5546 MTH earning up to 80% (Spargoville JV) WA West Kambalda West Kambalda P15/5547 MTH earning up to 80% (Spargoville JV) WA West Kambalda West Kambalda P15/5548 MTH earning up to 80% (Spargoville JV) WA West Kambalda West Kambalda P15/5763 MTH 100% WA West Kambalda West Kambalda P15/5791 MTH 100% WA Other East Pilbara E45/3457 MTH 100% WA Other East Pilbara E45/3680 MTH 100% WA Other East Pilbara E45/3973 MTH 100% WA Other Sandstone E29/836 MTH 100% WA Other Sandstone E57/826 MTH 100% WA Other Sandstone E57/827 MTH 100% WA Other West Pilbara E47/2258 MTH 100% WA Other West Pilbara E47/2680 MTH 100% Page 9 of 10

10 ENDS For Further Information Contact: Mithril Resources Ltd David Hutton, Managing Director 58 King William Road Goodwood, South Australia 5034 ABN: T: (61 8) F: (61 8) Competent Persons Statement: The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr David Hutton (Managing Director), who is a fulltime employee of the Company and a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr D Hutton has more than five years experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Hutton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to the Mineral Resource is based on information compiled by Shane Fieldgate. Mr Fieldgate is a Registered Professional Member of the Australian Institute of Geoscientist (AIG) and is full time employee of Snowden Mining Industry Consultants. Mr Fieldgate has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration, Results, Mineral Resource and Ore Reserves (JORC, 2004). Mr Fieldgate consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. About Mithril Resources Ltd: Mithril Resources Ltd is an Australian exploration company exploring for the next generation of mineral deposits within the emerging Eastern Arunta Province (Northern Territory) and the proven Eastern Goldfields (Western Australia). Mithril is a frontier explorer with a small but highly experienced team based in Adelaide. Combining advanced technology with a proven field based approach ensures the bulk of the company s expenses go directly into the ground. Page 10 of 10

11 Appendix 5B Mining exploration entity quarterly report Appendix 5B Rule 5.3 Mining exploration entity quarterly report Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10 Name of entity MITHRIL RESOURCES LTD ABN Quarter ended ( current quarter ) June 2013 Consolidated statement of cash flows Current quarter Year to date (12 Cash flows related to operating activities $A 000 months) $A Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration (323) (395) (2,784) (1,307) 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other Fuel Tax Credits Other JV Income (677) (3,665) Net Operating Cash Flows Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (207) (12) (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward) (219) (677) (3,884) + See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 1

12 Appendix 5B Mining exploration entity quarterly report 1.13 Total operating and investing cash flows (brought forward) (677) (3,884) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings (14) (61) 1.18 Dividends paid 1.19 Other (share issue costs) Net financing cash flows (14) (61) Net increase (decrease) in cash held (691) (3,945) 1.20 Cash at beginning of quarter/year to date 2,293 5, Exchange rate adjustments to item Cash at end of quarter *1,602 *1,602 *Excludes additional $577,000 R & D Tax refund received 1 July 2013 (see 4.1) Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Current quarter $A' Aggregate amount of payments to the parties included in item Aggregate amount of loans to the parties included in item Explanation necessary for an understanding of the transactions Directors fees, wages and superannuation for the quarter Noncash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows Nil 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest Nil + See chapter 19 for defined terms. Appendix 5B Page 2 17/12/2010

13 Appendix 5B Mining exploration entity quarterly report Financing facilities available Add notes as necessary for an understanding of the position. Amount available Amount used $A 000 $A Loan facilities 3.2 Credit standby arrangements Estimated cash outflows for next quarter 4.1 Exploration and evaluation R & D Refund Net Exploration Inflow 4.2 Development 4.3 Production $A (577) (159) 4.4 Administration 392 Total 233 Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Current quarter $A 000 Previous quarter $A Cash on hand and at bank Deposits at call 5.3 Bank overdraft 5.4 Other (provide details) Total: cash at end of quarter (item 1.22) 1,450 1,700 1,602 2,293 Changes in interests in mining tenements 6.1 Interests in mining tenements relinquished, reduced or lapsed Tenement reference Nature of interest (note (2)) Refer Appendix 1 Interest at beginning of quarter Interest at end of quarter + See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 3

14 Appendix 5B Mining exploration entity quarterly report 6.2 Interests in mining tenements acquired or increased Refer Appendix 1 Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates. 7.1 Preference + securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options (description and conversion factor) Total number Number quoted Issue price per security (see note 3) (cents) Amount paid up per security (see note 3) (cents) 219,615, ,615,500 Fully Paid Fully Paid Exercise price (Each) Expiry date 175,000 $ /12/ ,000 $ /06/2014 2,300,000 $ /06/ See chapter 19 for defined terms. Appendix 5B Page 4 17/12/2010

15 Appendix 5B Mining exploration entity quarterly report 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter 7.11 Debentures (totals only) 7.12 Unsecured notes (totals only) 350,000 2,235,000 8,000, ,000 1,300,000 1,000,000 1,000,000 $0.18 $0.18 $0.30 $0.20 $0.10 $0.10 $ ,000 $ ,000 $ /09/ /12/ /12/ /05/ /07/ /11/ /11/ /05/ /03/2013 Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5). 2 This statement does give a true and fair view of the matters disclosed. Sign here:... Date: 16 th July 2013 (Company secretary) Print name: Donald Stephens... Notes 1 The quarterly report provides a basis for informing the market how the entity s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2 The Nature of interest (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. + See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 5

16 Appendix 5B Mining exploration entity quarterly report 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. == == == == == + See chapter 19 for defined terms. Appendix 5B Page 6 17/12/2010

17 APPENDIX 1 Changes in Interests in Mining Tenements For Quarter Ended 30 June 2013 Tenement Reference Nature of Interest Interest at the beginning of Quarter Interest at the end of Quarter 6.1 Interests in mining tenements relinquished, reduced or lapsed E45/3470 Exploration Licence surrendered, effective 5 April 2013 (East Pilbara, Cutting Creek 1, WA). E45/3471 Exploration Licence surrendered, effective 5 April 2013 (East Pilbara, Cutting Creek 2, WA). EL24427 Exploration Licence surrendered, effective 25 May 2013, WA). E57/826 Exploration Licence surrendered, effective 31 May 2013, WA). E57/827 Exploration Licence surrendered, effective 31 May 2013, WA) Interests in mining tenements acquired or increased EL29638 EL29639 E15/1174, M15/1806, P15/4801, P15/4802, P15/5216, P15/5236, P15/5264, P15/5392, P15/5409, P15/5494, P15/5537, P15/5545, P15/5546, P15/5547, P15/5548 Exploration Licence granted, effective 22 April 2013 (Mt Mabel, Pannikan Dam, NT) Exploration Licence granted, effective 22 April 2013 (Mt Mabel, Mt Brassy, NT). Exploration and Prospecting Licences, and Mining Lease, 15 in total. Mithril earning up to an 80% interest subject to the Minex/KalNorth Gold Mines Ltd JV Agreement, effective 17 May 2013 (West Kambalda Project, Spargoville JV, WA) /07/ Changes in Interests in Mining Tenements