High-Res Biogeochemical

Exploration Under Deep

Cover - a Tanami case study

AIG – BEDG Presentation, 2 July 2013

By Ian Hodkinson

Disclaimer This presentation has been prepared by Murrumbo Ltd (Murrumbo). The information contained in this presentation is a professional opinion

only and is given in good faith at the time of preparation of this document.

Certain information in this document has been derived from third parties and although Murrumbo has no reason to believe that it is not

accurate, reliable or complete, it has not been independently audited or verified by Murrumbo. Any forward‐looking statements included in

this document involve subjective judgement and analysis and are subject to uncertainties, risks and contingencies, many of which are

beyond the control of, and maybe even unknown to, Murrumbo. In particular, they speak only as of the date of this document, they assume

the success of Murrumbo’s strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and

risks. Actual future events may vary materially from the forward looking statements and the assumptions on which the forward looking

statements are based. Recipients of this document ("Recipients") are cautioned to not place undue reliance on such forward‐looking

statements.

Murrumbo makes no representation or warranty as to the accuracy, reliability or completeness of information in this document and does not

take responsibility for updating any information or correcting any error or omission which may become apparent after this document has

been issued. To the extent permitted by law, Murrumbo and its officers, employees, related bodies corporate and agents ("Agents")

disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of Murrumbo

and/or any of its Agents) for any loss or damage suffered by a Recipient or other persons arising out of, or in connection with, any use or

reliance on this presentation or information.

Competent Person Statement The exploration data and results contained in this presentation are based on information reviewed by Mr Ian Hodkinson, a member of the

Australian Institute of Geoscientists. He is Exploration Director of the Company and has sufficient experience which is relevant to the styles

of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as

defined in the December 2004 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore

Reserves’ (the JORC Code). Mr Hodkinson has consented to the inclusion in this presentation of the matters based on his information in

the form and context in which it appears.

TANAMI PROJECT

MURRUMBO BACKGROUND

Murrumbo Limited is an unlisted, privately-

funded, Australian-based, precious and

strategic metal exploration company

operating in the world-class mineral districts

of the Lachlan Fold Belt in New South Wales

and the Tanami Province in Western

Australia.

• Chris Vose - BE Mech (Hons) Q’ld.

• Ian Hodkinson - MSc Leics., MAIG,

RPGeo.

• Andrew Tunny – BCom, BEcon Q’ld MTM

Syd GradDipCA ICAA CA

TANAMI PROJECT

TANAMI GOLD NL - ACKNOWLEDGEMENT

Murrumbo Limited wishes to acknowledge the cooperation and assistance of Tanami

Gold NL and numerous individuals at Coyote Mine and the Central Tanami site.

TANAMI PROJECT

Location

• WA

• Five ELs

• Granted -886km2

• Applications -291km2

• Total 1177km2

TANAMI PROJECT

TANAMI PROJECT

Company Deposit Tonnes (Mt) Grade (g/t Au) MOz Au

Newmont Callie 14.5 4.7 2.190

Tanami Gold Groundrush 6.7 4.8 1.034

ABM Resources Buccaneer 15.3 2.23 1.097

Tanami Gold Coyote 0.8 12.7 0.327

ABM Resources Old Pirate 1.9 10.1 0.617

The Tanami - Au ‘Elephant Country’

The Tanami – Seeing Through the Cover

The Traditional Approach… • Geophysics - aeromagnetics

• Soils: BLEG, lag, MMI

• Drill, drill, drill, drill, drill….$$$$$

• Time for a new approach…

m

TANAMI PROJECT

The Coyote Saga – a discovery case study

1988 – ACM, Cactus Prospect, BL103, 4m @ 2.13 g/t Au - 7.3km WSW

1987 – Ellis & Wellington Resources, new tenement, E80/994

1988 – CRA JV, no work done

1991 – Perilya JV, no work, tenement surrendered

1991 – Billiton, E80/1483, new tenement

1993/94 – Billiton regional soil sampling - but not at Coyote

1994/95 – Acacia, 2ppb Au in soil sampling lines 26 & 27 - 2km W

1995/96 – Acacia, RAB drilling – but not at Coyote

1996/97 – Acacia, more RAB drilling, Line 67 - 1km too far W

Line 68 - too short 0.9km NNE

1997/98 – Acacia, more RAB drilling, BRPH1557, 12ppb Au - 800 m SW

BRPH1558, 10ppb Au - 525 m WSW

1998/99 – Acacia, RAB hole BRPH1735, 3m @ 8.81g/t Au - Bingo !

Coyote was discovered almost 8 years after the tenement was applied for. The

dispersion train was intersected during the fourth drilling programme … $$$$

A decent geochemical programme would have found it a lot earlier …

TANAMI PROJECT

Recent Developments in the Tanami

• Predictive Targeting, CET 2011

• ‘New’ mineralisation style – ABM’s Buccaneer

• Biogeochemical Sampling PhD, Nathan Reid, 2008

TANAMI PROJECT

Predictive Targeting

• MERIWA / CET, Project

M389, 2011 ‘A four-

dimensional interpretation of the

geological evolution of the

Proterozoic West Tanami region

and its mineral systems

• 32 Priority Target Areas

• ‘Decision Support Aid’

not a Treasure Map

• Predictable or self-

fulfilling ?

TANAMI PROJECT

New Mineralisation Style

• ABM’s Buccaneer Prospect

• NFM RAB discovery

• Acquired early 2010

• ‘New’ mineralisation style

• Stockwork, low-grade

• Large – 128 Mt @ 0.65g/t Au

• 2.7Moz Au

• Syeno-granite hosted

• Sulphide Cu zone, Ag & Mo

After ABM Resources

TANAMI PROJECT

Biogeochemical Sampling

• Long established method in

Canada & Scandinavia

• Slow acceptance in Australia

despite ideal conditions

• Arid climates → ideal deep

rooted species

• Nathan Reid, PhD, Adelaide

University, 2008 at Coyote

(WA) and Titania (NT)

• Soft Spinifex preference

After Nathan Reid

TANAMI PROJECT

Spinifex Sampling

• Species - Triodia pungens • Wide distribution

• Virtually ubiquitous

• Deep rooted >30m

• Easily and quickly harvested

• Hedge clippers

• Spines or ‘awls’

• Calico bags (~400 gms)

• Geochemically Responsive • Major cations

• Pathfinders

• Precious metals

• Base metals

After Nathan Reid / CRC LEME

TANAMI PROJECT

Spinifex Sampling - Coyote Prospect, WA

• Anomalous Au, As, Zn, also S – raw samples

After Nathan Reid

TANAMI PROJECT

Spinifex – Maturity and Seasonality

• Bushfires → maturity variations

K, B, Li, Rb (Al, Cs, P etc.)

• Seasonality

TANAMI PROJECT

Spinifex Sampling – practical problems

• Species identification

• Sticky - contamination issue

• OHS issues

• Volume problem

Spinifex Sampling – some solutions

• Increase sample volume, numerous plants (>5), ~400gms

• Clean up sample → ~30gms

• Consult the experts → ashing, the critical step

TANAMI PROJECT

Colin Dunn

Helen Waldron

TANAMI PROJECT

Ashing Methodology

• Ashing at Acme Laboratories, Vancouver, Canada ~30g for

16 hours at 475°C in Al pans

• Ash yield ~5% = ~20x metal increase most elements

• Ash aliquot 0.25 g → HNO3 + Aqua Regia digestion

• ICP-MS multi-element analysis:

• Au, Ag, Hg, Re, Pd, Pt (ppb), Mo, Cu, Pb, Zn, Ni, Co, Mn,

As, U, Th, Sr, Cd, Sb, Bi, V, La, Cr, Ba, B, Sc, Tl, Se, Te,

Ga, Cs, Ge, Hf, Nb, Rb, Sn, Ta, Zr, Y, Ce, In, Be, Li (ppm),

Ca, Fe, Al, Na, K, Mg, P, S, Ti (%)

• QA/QC critical, ash standards, field duplicates, laboratory

duplicates, blanks etc.

TANAMI PROJECT

Au nucleation → nugget effect between/within plants

• BLAC1875 Spinifex Biogeochemical ‘Standard’

• 33 samples – field duplicates

• Poorly behaved statistically for Au, better for Cu

• False negatives very common

• False positives rare (non-existent - contamination ?)

0

2

4

6

8

10

12

0.1

2

0.8

2

1.5

2

2.2

2

2.9

2

3.6

2

4.3

2

5.0

2

5.7

2

6.4

2

7.1

2

Mo

re

Fre

qu

en

cy

Au ppb

Au ppb

Frequency

0

1

2

3

4

5

6

7

8

9

10

32 36 40 44 48 52 56 60 64

Mor

e

Freq

uenc

y

Cu ppm

Cu ppm

Frequency

Gold in bark

TANAMI PROJECT

But does it work ?

TANAMI PROJECT

Validation - ash (A) vs. -80# soils (S) at Test Site C (NT)

0

10

20

30

40

50

60

Au p

pb

Test Site C North Line - Au

AuAppb

AuSppb

0

100

200

300

400

500

600

700

800

Zn p

pm

Test Site C North Line - Zn

ZnA ppm

ZnS ppm

0

0.5

1

1.5

2

2.5

3

3.5

4

As

pp

m

Test Site C North Line - As

AsA ppm

AsS ppm

0

50

100

150

200

250B

a p

pm

Test Site C North Line - Ba

BaAppm

BaSppm

TANAMI PROJECT

What are we looking for ?

• Au – high grade (>10g/t), low tonnage, underground

• Au – low grade (<5g/t), high tonnage open cut

• REE alkaline intrusive style

• U/REE – Killi Killi Hills, unconformity type

• U – ‘roll front’ or calcrete style in cover sediments

• Base metals ?

TANAMI PROJECT

Tanami Geology & Prospect Locations

TANAMI PROJECT

Atlantic Prospect - Location

TANAMI PROJECT

Atlantic Prospect – Ashed Spinifex Au results

TANAMI PROJECT

Anomaly Magnitude Comparison – Test Sites v.

Prospects Location Au ppb

in ash

Ag ppb

in ash

As ppm

in Ash

Pt ppb

In Ash Comment

Test Site A 29.5 19 14.8 3 5m laterite cap

Test Site B 67.5 81 2.3 5 Minimal cover

Test Site C 53.3 28 3.4 8 3 to 10 m sand cover

Test Site D 12.6 31 23.3 14 1.5 to 6 m sand cover

Atlantic East 17.2 76 1.2 9 19 to 35 m sand/colluvial cover

Atlantic W 41.0 144 2.2 21 28 to 86 m sand/colluvial cover

Atlantic Far W 13.4 24 2 9 50 to 70 m sand/colluvial cover

Dolerite 9.1 49 19.2 11 Minimal cover

TANAMI PROJECT

Dolerite Prospect - Location

TANAMI PROJECT

Dolerite Prospect – Ash Geochemistry – As (ppm) •

•

•

•

•

•

•9ppb Au

5.8ppb Au

6.3ppb Au

TANAMI PROJECT

Blondie Prospect - Location

TANAMI PROJECT

Blondie Prospect – Lag Geochemistry Cu (ppm)

TANAMI PROJECT

• Gabbroic intrusives

• TMI magnetic anomalies

• Afmeco - rock GT0072

• Hematite quartz breccia • 76.5 ppm U

• 273 ppm Nd

• 593 ppm Ce

• 589 ppm Cu

GT0072

Gabbro

Gabbro

E80/4801 Selby – the forgotten corner of the Tanami

TANAMI PROJECT

E80/4801 Selby – REE Geochemistry

TANAMI PROJECT

REE ratio review

courtesy of Professor

Ken Collerson

• Geographe Lag Anomaly • 380 ppm Cu

• 27 ppm As

• 63 ppm Pb

GT0072

Gabbro

Gabbro

E80/4801 Selby – the forgotten corner of the Tanami

Cu

ppm

TANAMI PROJECT

THANK YOU

TANAMI PROJECT