Quarterly Report September 2017

Transcription

1 Quarterly Report September October 2017 ABOUT ALTONA Altona Mining Limited (ASX: AOH) is a cashed up ASX listed company with a record of shareholder returns. It is focussed on the Cloncurry Project in Queensland, Australia. The Cloncurry Copper Project has resources containing some 1.67Mt of copper and 0.43Moz of gold. The first development envisaged is the 7Mtpa Little Eva open pit copper-gold mine and concentrator. Major permits are in place with proposed annual production of 39,000t of copper and 17,200oz of gold for a minimum of 10 years. A Definitive Feasibility Study has been completed and updated in August Key metrics as at 30/09/2017: Shares on issue: 536,975,592 Share rights on issue: 9,715,800 Cash: A$33.7M Share price: 13.5 cents Market capitalisation: A$72.5M Definitive Feasibility Update Completed, Engaging with Third Parties Cloncurry Copper Project: Altona is undertaking a process of engagement with third parties to realise value from the Cloncurry Project for shareholders. Definitive Feasibility Study: Altona has completed a major update to prior studies on the Cloncurry Copper Project. Key changes compared to the 2014 DFS are: - Reserves up 14% from 375kt copper to 426kt copper. - Mine life up 27% from 11 years to 14 years. - Life of mine revenue up 24% from A$2.9 billion to A$3.6 billion. Drilling: Drilling has commenced at Cloncurry on both gold and copper targets. The programmes are part of routine exploration as required under tenement grant conditions. Cash Balance: At 30 September 2017 Altona s cash balance was A$33.7* million. Altona has US$23.6 million which was purchased at an average rate of AUD:USD of * Assumes AUD:USD of Altona Mining Limited ACN: Level 1, 2 Kings Park Road West Perth Western Australia 6005 T: E: altona@altonamining.com W: ASX: Frankfurt: AOH A20

2 Overview Overview The Cloncurry Copper Project has a 14 year life as an open pit mine, and will produce 39,000 tonnes per annum copper and 17,200 ounces of gold each year once in production. The project is permitted and ready to build. The recently updated Definitive Feasibility Study highlighted numerous opportunities to improve the Project. The project also host some 840,000 tonnes of contained copper in JORC Resources in deposits adjacent to the proposed mine. These are not yet incorporated into the Project mine plan. The Cloncurry Project has attracted attention from a range of parties. With the assistance of advisors, Hartleys Limited, Altona assessing the merits of these and any future opportunities that might arise. ASX Releases Altona lodged eight ASX releases relating to its activities since the last Quarterly Report. These announcements provide a more detailed description of activities than this report. 26/07/17 Quarterly Reports - June /08/17 The Cloncurry Copper Project JORC 2012 Disclosure 03/08/17 Updated DFS Delivers Bigger and Better Cloncurry Copper Project 29/08/17 Altona Corporate and Project Strategy Update 13/09/17 Appendix 3B 15/09/ Annual Report and Appendix 4G 20/09/17 Cloncurry Copper Project Update 27/09/17 Amendment to Updated DFS ASX Release Corporate Altona maintains a strong cash balance Altona had A$33.75 million of funds on deposit at 30 September A portion of these funds (US$23.68 million) is retained in US dollars. The exchange rate used to estimate AUD dominated cash is AUD:USD of A$ (millions) Opening cash (1 July 2017) Exploration, evaluation and licence fees (1.47) Corporate costs (0.33) Staff costs (0.24) Exchange rate movement and other (0.49) Closing cash (30 September 2017) Share Price Activity on ASX Quarter open 13 High 14.5 Low 9 Quarter close 13.5 Average daily volume 229,254 2.

3 Cloncurry Copper Project (Altona 100%): Development The Cloncurry Project offers a large resource of 290 million tonnes at 0.58% copper, 0.05g/t gold for 1.65 million tonnes contained copper and 0.4 million ounces gold and is close to infrastructure. It is located 90 kilometres north-east of Mt Isa and 9 kilometres north of MMG s Dugald River zinc mine which is in construction. Permitted project with a DFS completed The Little Eva copper-gold development is planned to be the first development at the Cloncurry Copper Project. The 2017 Definitive Feasibility Study ( DFS ) for the development anticipates the construction of a 7 million tonne per annum open-pit mine and flotation plant capable of annual production of 39,000 tonnes copper and 17,200 ounces gold. Mine life is estimated to be 14 years. The project sits within granted mining licences with native title agreements and an Environmental Authority ( EA ) in place. Altona completed an update of the Definitive Feasibility Study ( DFS ) of the Cloncurry Copper Project ( Project ), 90 kilometres north-east of Mt Isa in Queensland, Australia. Significant technical work since 2014 DFS The study has been completed to provide an up to date status of the Project which consolidates and integrates all technical work of prior studies with a number of significant developments since the initial DFS in May 2012 and the update to the DFS in March 2014 that impact on costs, revenues and design. They include: New Resource estimates and geological/geotechnical models for the Little Eva and Bedford deposits. Please note these new estimates have not yet been used to generate new Ore Reserve estimates. Mineral Resource and Ore Reserve estimates for the Turkey Creek deposit Metallurgical testwork of Turkey Creek ore Inclusion of the Turkey Creek deposit in mine plan Re-design and re-location of infrastructure and waste dumps to accommodate Turkey Creek pit A reduction in engineering and construction costs Updated cost estimates Updated Environmental Authority to reflect inclusion of Turkey Creek Changes to macro-economic assumptions. Opportunity to improve project The study also identified a number of areas for improvement to be addressed in project optimisation: Reserve expansion through converting Inferred Resources below Little Eva pit to Indicated Resources RC drilling for better definition of grade control, dilution and ore loss Updated Little Eva Resource model Geotechnical model constructed indicating opportunity for improvement in mine design Little Eva pit optimisation and design using lower current mining costs and upgraded Resource model Resource upside at satellite pits Consideration of higher plant throughput if Reserve increase warrants expansion Increased water resources to support higher throughput. 3.

4 The study also recommends examining the opportunity of expanding production by inclusion of copper-only deposits not considered in the DFS. Compared to the 2014 DFS, this study has delivered material improvements: Reserves up 14% from 375kt copper to 426kt copper Mine life up 27% from 11 years to 14 years Life of mine revenue up 24% from A$2.9 billion to A$3.6 billion The Project comprises a large scale open pit mine at Little Eva and five satellite pits; Turkey Creek, Bedford North and South, Lady Clayre and Ivy Ann. Ore will be processed at a 7 million tonnes per annum processing plant adjacent to Little Eva and Turkey Creek. The Little Eva pit has a low strip ratio of 1.8:1 (excluding pre-strip). The Project has an initial 14 year life. The Little Eva processing plant will have a technically simple crushing, grinding and flotation circuit resulting in the pre-production capital cost including pre-strip, processing plant and associated infrastructure being A$288 million. The operation will produce 150,000 tonnes per annum of readily marketable, clean copper-gold concentrate containing an average of 39,000 tonnes per annum copper and 17,200 ounces per annum gold for the first 5 years of full production. High metal recoveries of 96% copper and 85% gold are achievable at a coarse grind size of 212 microns. The mill feed grade averages 0.6% copper and 0.1g/t gold excluding marginal grade stockpiles. Cloncurry Copper Project (Altona 100%): Exploration Altona has taken advantage of the exploration downturn to amass a 3,800km 2 landholding in the Cloncurry Project. Much of the ground remains largely underexplored. Across the portfolio of tenements there are scores of exploration targets, some with existing excellent drill results, some drill ready. Altona will undertake exploration to maintain its tenement holding and also conduct exploration that has potential to deliver a step change to the project. Drilling underway Copper-gold targets Drilling has commenced at a number of targets. The drill program is designed to meet tenement commitments whilst testing high priority targets. The planned reverse circulation drilling program consists of approximately 25 to 30 holes and up to 2,750 metres of drilling at Companion, Coolullah North and Quamby (Figure 2). Altona may also drill test one or two other prospects. The Companion and Coolullah North prospects are copper-gold targets similar to the deposits that make up the projects established 290 million tonne Mineral Resource base. The drill targets at Companion are based on previous widely spaced mineralised drillholes and new copper-in-soil anomalies generated by Altona. At Coolullah North, drilling targets a geophysical anomaly in an area masked by thin alluvium cover. 4.

5 Drilling an old gold mine Quamby is a small historical gold mine. The most recent mining was from two small open pits closed in the 1990 s. The planned drilling tests beneath the open pits and nearby targets established from gold-in-soil and copper-in-soil anomalies. The targets are prospective for high tenor gold only styles of mineralisation previously mined and for copper-gold. Exploration activities also include detailed soil sampling programs to advance several new targets for drilling. A number of historic exploration results are disclosed for the first time here as Appendix A and a JORC Table 1 compliance statement is attached as Appendix B. 5.

6 Competent Persons Statement and ASX Compliance Competent Persons Statement: The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Alistair Cowden, BSc (Hons), PhD, MAusIMM, MAIG and Mr Roland Bartsch, BSc(Hons), MSc, MAusIMM. Dr Cowden and Mr Bartsch are full time employees of the Company and have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Cowden and Mr Bartsch consent to the inclusion in the report of the matters based on their information in the form and context in which it appears. Little Eva Project production target and forecast financial information: Information in this release refers to a production target and the forecast financial information derived from a production target as per the ASX releases which are available to be viewed at or The Company confirms that all the material assumptions underpinning the production target and the forecast financial information derived from the production target referred to in the above-mentioned release continue to apply and have not materially changed. Copper equivalence: When used, copper equivalent refers to copper in concentrate produced, or planned to be produced. It does not refer to metal contained within insitu resources, reserves or drill results. The copper equivalent grade is calculated by factoring the copper grade by revenues estimated from all metals (NSR) being copper, zinc, gold and silver. Please direct enquiries to: Alistair Cowden David Ikin Managing Director Professional Public Relations Tel: Tel: altona@altonamining.com david.ikin@ppr.com.au Jochen Staiger Swiss Resource Capital AG - Germany Tel: js@resource-capital.ch 6.

7 Figure 1: Major mines, resources and prospects in NW Queensland compared to Altona s tenure, both granted and in application. 7.

8 Figure 2: Altona Mt Isa Province project tenure and 2017 drill targets. 8.

9 Figure 3: Collullah North (top) IP chargeability pseudo section with proposed drillhole and response through the Little Eva deposit (bottom). 9.

10 Figure 4: Map of Quamby mine gold-in-soils and proposed drillhole locations. Significant gold intercept >1g/t gold are from previous explorers; holes indicated with no gold assays were either not assayed for gold or historical data is unavailable. 10.

11 APPENDIX A: Historic Drilling Results The Company confirms that it is not aware of any new information or data that materially affects the information included in the most recent market announcement for each deposit and, in the case of Mineral Resources and Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person s findings are presented have not materially modified from the original market announcement. Table 1: Significant copper drill intersections - Quamby prospect historical drilling. Depth Drill Intercept >0.3% Copper Hole ID From To Width Copper (m) (m) (m) % CAQU_QU CAQU_QU Q223C Q224C QU QU QU Note: Significant drill intersections are reported at a minimum cut-off grade of > 0.3% copper with minimum 4m width and maximum of 4m internal waste. Table 2: Significant gold drill intersections - Quamby prospect historical drilling. Depth Drill Intercept >0.5 g/t Au Hole ID From To Width Gold (m) (m) (m) g/t Quamby Q034C Q068C Q140C Q159C Q160C Q161C Q205C Q206C Q207C Q210C Q211C QU QU QU Note: Significant drill intersections are reported at a minimum cut-off grade of >0.5g/t gold with minimum 3m width and maximum of 4m internal waste. The reported interval from QU002 outside this range is shown to show the relationship with copper summarised in Table

12 Table 3: Drillhole collar table - Quamby prospect historical drilling. Type / Program Hole ID Location (MGA54) Orientation End of Easting Northing RL Azi Dip Hole (m) (m) (m) ( ) ( ) Depth (m) Diamond QU (CRAE 1993) QU Reverse Circulation CAQU_QU (CRAE 1995) CAQU_QU Reverse Circulation (Clifford Minerals 1987) Q030C Q034C Q064C Q065C Q066C Q067C Q068C Q069C Q097C Q098C Q099C Q100C Q137C Q138C Q139C Q140C Q141C Q159C Q160C Q161C Q162C Q201C Q202C Q203C Q204C Q205C Q206C Q207C Q208C Q210C Q211C Q223C Q224C Note: Only drillholes with copper and/or gold assay data are listed. All historical holes by previous explorers with no assays records or not assayed are illustrated on Figure

13 APPENDIX B: Table 1 of the JORC Code, 2012 Edition The table below is a description of the assessment and reporting criteria used in reporting the Exploration Results that reflects those presented in Table 1 of The Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2012). Section 1: Sampling Techniques and Data Criteria Commentary Sampling techniques Drilling techniques Drill sample recovery Logging Soils All soil sampling was completed by Altona. Samples were surface samples (top 20cm) sieved to -2mm to obtain a ~100g sample size for handheld XRF analysis. Sampling was conducted only when dry. Samples selected for laboratory gold analysis were further sieved to -80#, then dried, crushed and pulverised at the laboratory to produce a representative charge for geochemical analysis. Drillholes Companion drilling and anomalous copper intersection are based on drilling by Altona and CYU (the majority of holes) and a compilation of Open File data from previous explorers. The majority of the drilling in the area was conducted by Altona using an aircore drill rig and by CYU using RC drilling techniques. (refer to CYU ASX releases 23 September 2015, 5 August 2015, 28 June 2015, 1 June 2015, 23 April 2015, 3 December 2104, 6 November 2014, 20 October 2014, 15 July 2014, 14 April 2015, 11 December 2013, and 17 September 2013). Pre 1980 s drill data for several holes in the area portrayed in as they can t be reliably located and were not assayed for gold. Information regarding drilling by past explorers at Quamby has been compiled by Altona from Open File statutory reports. Disclosure is therefore constrained by the detail of prior reporting. Key references include: CR#18962, CR#18197A - Quamby, Clifford Minerals; and, CR#26732, CR# Quamby, CRAE. RC drilling was completed by Clifford Minerals at Quamby in Drillholes were sampled at 1m to 1.5m intervals. Samples were collected directly using a cyclone and sub-sampled using a riffle splitter to obtain 1-2 kg samples for analysis. RC and DD drilling was completed by CRAE at the Quamby in Drillholes were sampled at 1m intervals, however further information regarding sampling technique is limited. Not applicable for Companion, no new results presented other than significant intersections from previously reported data. Majority of drilling at Companion area RC with 5.5 inch face sampling hammer and aircore drilling. For CYU drilling refer to the ASX releases listed under Sampling Techniques. Historical drilling at Quamby by previous explores amounted to 35 RC and 2 DD drillholes for 1542m. A greater number of drillholes are reported to have been drilled than for which assay data is available. RC drilling by Clifford Minerals utilised a downthe-hole hammer. The majority of these drillholes were shallow, vertical and between 20m and 40m depth. Not applicable in relation to Companion, no new data reported. For CYU drilling refer to the ASX releases listed under Sampling Techniques. For Quamby historical drillholes, no records are available with drill sample recovery data or procedures for assessing and maintaining drill sample recoveries. Not applicable in relation to Companion, no new data reported. For CYU drilling refer to the ASX releases listed under Sampling Techniques. For Quamby historical drillholes, limited logging data exists for several only holes by Clifford Minerals. Lithology and mineralisation data is recorded for the CRAE holes. 13.

14 Criteria Sub-sampling techniques and sample preparation Quality of assay data and laboratory tests Verification of sampling and assaying Commentary Drillholes Not applicable in relation to Companion, no new data reported. For CYU drilling refer to the ASX releases listed under Sampling Techniques. Clifford Minerals RC drilling at Quamby utilised a riffle splitter to generate 1-2kg subsamples. Information reported by CRAE surrounding RC and DD drillhole sub-sampling at Quamby is limited. Soils Soil samples were routinely analysed for Cu (and a multi-element suite) using a Niton XL3tGOLDD+ hand-held XRF instrument. Analyses were routinely conducted under controlled conditions in the site office. Quality Control included standards (certified reference materials) from Geostats Ltd. Standards were inserted into the sampling sequence at 1:20 ratio and included representative material for copper. The Niton data displays a consistent low bias by 20-30% against the reference data. The low bias of the Niton instrument has been documented over numerous campaigns of sampling in different material types. Umpire soil samples from Altona s regional soil programme were submitted to ALS Townsville for multi-element analysis. This utilised a Trace Level method by a neartotal four acid digestion of a 0.25g prepared sample with an ICP-AES finish (method code: ME-ICP61; copper range 1-10,000 ppm). Umpire sample results displayed no bias and an acceptable level of precision for the purpose. Soil samples were submitted to ALS Townsville for gold analysis. This utilised a Super Trace Level method by aqua regia digestion of a 50g prepared sample with an ICP-MS finish (method code: Au-ST44; gold range ppm - 1ppm). Over-range analyses were repeated using utilising method AROR44; gold range 0.01ppm - 100ppm). Data from Aqua Regia digestion only represents the leachable portion of a particular analyte. Drillholes Not applicable for Companion, no new data reported. For CYU drilling refer to the ASX releases listed under Sampling Techniques. For Quamby historical drillholes, no QAQC records have been located. Clifford Minerals RC drilling at Quamby utilised Fox laboratories Sydney or Pilbara Laboratories Townsville. All samples were analysed for gold using aqua-regia digestion followed by an AAS finish, with relevant checks of anomalous values by fire assay. Geochemical analysis for copper and an unspecified multi-element suite was completed for a large proportion of drillholes. No information was reported regarding QAQC procedures. Information reported by CRAE surrounding analytical methods and QAQC procedures is limited. Soils Results were checked by several Altona personnel. All field logging or field sampling data was done using a laptop and uploaded into the company Datashed database and validated by company database personnel. All assay files were received in digital format from ALS Laboratories. All Niton handheld XRF soil data was downloaded from the instrument in digital format. Data was uploaded into the Altona Datashed database and validated by company database personnel. No manual data inserts took place. No adjustments have been applied to the results. Drillholes Not applicable for Companion, no new data reported. For CYU drilling refer to the ASX releases listed under Sampling Techniques. 14.

15 Criteria Location of data points Data spacing and distribution Orientation of data in relation to geological structure Sample security Commentary For historical drillholes at Quamby limited information is available regarding the verification, collection and storage of sampling and assay data for historical drilling. Soils All Altona sample locations were surveyed using a handheld GPS (Garmin GSMAP78s) with an approximate 5 metre horizontal accuracy. Drillholes Not applicable for Companion, no new data reported. For CYU drilling refer to the ASX releases listed under Sampling Techniques. Collar survey methods for historical drillholes at Quamby have not been reported; but were based on surveyed pegged local grids. Several holes have been field checked by handheld GPS by Altona. The Grid is GDA94 MGA Zone 54. Soils Soil sample grid spacing within the reported anomalies: Quamby ~20mE by 40mN stepping out to ~40mE by 80mN. Companion ~20mE by 40mN stepping out to ~40mE by 60mN. Drillholes Not applicable for Companion, no new data reported. For CYU drilling refer to the ASX releases listed under Sampling Techniques. Historical drilling at Quamby is strongly clustered and the majority of the newly defined soil anomalism is untested. Drillhole data availability is highest at the southern tip of the gold-in-soil anomaly, where holes have been drilled at 5m to 30m spacing along a broadly northwest-southeast section. Data is also available ~30m to the north and south, where ~20m along section spacing is typical. Drillholes are predominantly vertical or dip -60 to the northwest. Drillholes Copper-in-soil and gold-in-soil anomalism at Quamby locally exhibits various directions of continuity; with most pronounced north-south trends. Understanding of the orientation and geometry of associated bedrock mineralisation is currently limited. In the south the historical drilling that recorded significant gold and copper intersections has been conducted on northwest-southeast sections, oblique to the north-south trending peak of gold-in-soil anomalism. This may have resulted in sampling bias if the strike of bedrock mineralisation is consistent with this orientation. Drilling on a northwest-southeast section delineates a planar southeast dipping mineralised zone. No significant sampling bias is interpreted to be associated with - 60 northwest drillhole dip; however vertical drillholes may have introduced sampling bias. Copper-in-soil anomalism at Companion locally exhibits various directions of continuity; with most pronounced north-south trends. There are no new drilling results reported. Historical drilling is predominantly orientated east-west and as such no significant sampling bias is thought to have occurred. Soils, Rockchips and Drillholes All Altona soil, rockchip and drillhole samples were collected and bagged into prenumbered plastic clip-lock or calico bags. Unique sample numbers were retained during the whole process. Samples were collected and delivered to the Altona field office daily as they were collected. All samples that underwent laboratory analysis were then catalogued and sealed prior to dispatch to the laboratory by Altona staff. Soil samples were retained for reference and stored in Altona facilities in Cloncurry 15.

16 Criteria Audits or reviews Commentary subsequent to hand-held XRF analysis. Referenced Historical Drillholes Sample security practices and procedures are not documented in reports of historical drilling. Internal audits and reviews of key datasets collected by Altona have been undertaken. Past exploration data by other explorers has only been validated against the source references. QA/QC samples were routinely monitored by the database manager and geologist on a batch and campaign basis. For laboratory analyses the accuracy of key elements such as Cu and Au was acceptable. For handheld Niton XRF analyses the overall project data displays a consistent low bias by % against the reference data; in contrast laboratory umpire samples from the reported soil anomalies displayed no bias and an acceptable level of precision for the purpose. No external audits or reviews have been undertaken. Section 2: Reporting of Exploration Results Criteria Mineral tenement and land tenure status Exploration done by other parties Commentary The Coolullah North IP target sits within Mining Lease (ML) This ML is 100% owned by Altona Mining Ltd, was granted in late 2012 and is in good standing. The Quamby prospect sits within Exploration Permit for Minerals (EPM) The Companion prospect sits within Exploration Permit for Minerals (EPM). These EPM s are 100% owned by Altona Mining Ltd, were granted in late 2015 and are in good standing. No joint ventures apply. There are agreements in place with the native title holders, the Kalkadoon people and with landholders. No significant historic sites or national parks are located within the reported exploration sites. Quamby The Quamby area has been subject to previous work, although this was strongly localised, limited in extent relative to the extent of the newly defined soil anomalies and the gold exploration was based on a different geological concept. Sluicing and dry-blowing of alluvial gold in the gullies adjacent to the Quamby Gold Mine open pit, as well as shallow shafts and adits in the current pit area are recorded from the early 1900 s. The main pit itself is ~230 metres long, ~35 metres wide and strikes north-northwest. Previous reports of production suggest a three year mine life (1988 to 1991) for 75,600 tonnes of ore at an average grade of 2.13 g/t gold (CR#30143). Surface sampling programmes by previous explorers include stream sediment and rockchip sampling around the Quamby area by Clifford Minerals in Universal Resources conducted rockchip sampling with screen fire assays in late Material was collected from the leach pad, dumps and bedrock in and around the Quamby Gold Mine open pit (Refer to ASX release dated 12 January 2010). 37 drillholes were completed by previous explorers in the vicinity of the Quamby copper-in-soil and gold-in-soil anomalies for which gold assays are available (Figure 4). Only 6 of these drillholes were also assayed for copper. Drilling was completed by Clifford Minerals (1987) or CRAE (1993 or 1995). A further 137 drillholes are recorded to have been drilled by Clifford Minerals for which no assay data is available; either not 16.

17 Criteria Geology Drillhole Information Data aggregation methods Commentary assayed for gold or records are unavailable. A large proportion of this drilling was localised within or at immediate extensions to the Quamby Gold Mine pit. Most drillholes were vertical with maximum depths between 20 and 40m. Coolullah North IP survey lines across Coolullah North (L28000N) and Little Eva (L26000N) were conducted by Fugro on behalf of Xstrata in 2005 as part of exploration programs for the SEEP JV with Universal (now Altona). Surveys used a 100m dipole-dipole array. Over the Little Eva and Coolullah areas survey lines were E-W spaced 500m apart. Companion The Companion area has been subject to pervious work including mining from several shallow shafts from the early 1900 s and exploration drilling by Placer in the 1970 s. The majority of recent drilling has been conducted by Altona and CYU. For Companion drilling refer to the ASX releases listed under Sampling Techniques. Pre 1980 s drill data for several holes in the area exist and are not referenced as they can t be reliably located and were not assayed for gold; the results from these holes are consistent with the reported recent drill results. Copper mineralisation associated with the Companion and Quamby copper-in-soil anomalies is considered to be hydrothermal, with both stratigraphic and structural controls following internal competency, chemical and permeability contrasts typical within the Rose Bee Fault corridor. The Quamby gold-in-soil anomaly is interpreted to be associated with a distinct goldonly mineralisation style. Geological mapping indicates some of the anomalism overlies Neoproterozoic Quamby Conglomerate; the host rock to mineralisation in the historical Quamby Gold Mine. However, a significant component of the anomalism extends south and west away from the mine, above older Paleoproterozoic rocks. This spatial relationship indicates a structurally controlled hydrothermal model for Quamby gold mineralisation may be valid, in addition or as an alternative to the longstanding palaeoplacer model for ore formation. CRAE reported that DD drillholes QU001 and QU002 (Figure 4) tested a lode structure, characterised at surface by a linear zone of quartz stockwork within a discrete zone of shearing (CR#26732). High tenor gold-in-soil anomalism west-northwest of the Quamby Gold Mine pit coincides with colluvial cover and may represent the erosional dispersion of gold from the mine area, rather than in-situ gold in bedrock. Quamby unreported historical down hole widths of copper mineralisation are presented in Table 1 of this release. Quamby unreported historical down hole widths of gold mineralisation are presented in Table 2 of this release. Quamby unreported historical drillhole locations, azimuth, dip and lengths are presented in Table 3 of this release. No new or unreported historical drillhole information from Companion or Coolullah North. For Companion drilling refer to the ASX releases listed under Sampling Techniques. Copper intercepts were calculated using a 0.3% copper cut-off typical to the Roseby area mineralisation. 4m intercepts are the minimum reported here and a maximum 4m of consecutive samples below 0.3% copper were allowed within each intercept. Gold intercepts were calculated using a 0.5 g/t gold cut-off. 3m intercepts are the minimum reported here and a maximum 4m of consecutive samples below 0.5 g/t gold were allowed within each intercept. No equivalent calculations have been applied or used. 17.

18 Criteria Relationship between mineralisation widths and intercept lengths Diagrams Figures 1 to 4. Balanced reporting Other substantive exploration data Further work Commentary The geometry of bedrock mineralisation at Quamby is uncertain. Relationship between intercept length and mineralisation widths is therefore poorly constrained. A full compilation of available soil and rockchip data from the reported anomalies has been included. Whilst the soil anomalies are attractive, the tenor of surface anomalism is not a reliable guide to the nature of any potential underlying mineralisation. Best drill results have been reported in Tables 1 and 2 using the data aggregation methods criteria described above. Not applicable. Additional work in the future will consist of RC reconnaissance drilling, detailed prospect scale mapping and modelling, as well as expansion of soil sample grids along the target structures. 18.

19 APPENDIX C: Table 1: Resource Estimates for the Cloncurry Copper Project. Deposit Deposit in Mine Plan Tonnes million Total Contained Metal Measured Indicated Inferred Grade Grade Grade Grade Copper Gold Tonnes Tonne Tonnes Cu Au tonnes ounces million Cu Au million Cu Au million Cu Au % g/t % g/t % g/t % g/t Little Eva , , Turkey Creek , Ivy Ann ,000 17, Lady Clayre ,000 85, Bedford ,000 32, Sub-total , , Other Deposits Blackard , Scanlan , Longamundi , Legend , Great Southern , Caroline , Charlie Brown , Sub-total , Total ,668, , JORC 2012 Disclosure is provided in ASX Release of 2 August 2017 entitled The Cloncurry Project: JORC 2012 Disclosure. Little Eva is reported above a 0.2% copper lower cut-off grade, all other deposits are above 0.3% lower copper cut-off. Resources have been reported as inclusive of Reserves. 19.

20 APPENDIX 5B Mining exploration entity and oil and gas 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, 01/05/13, 01/09/16 Name of entity ALTONA MINING LIMITED ABN Quarter ended ( current quarter ) September 2017 Consolidated statement of cash flows 1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for Current Quarter (3 months) $A 000 Year To Date (3 months) $A (a) exploration & evaluation (1,473) (1,473) (b) development - - (c) production - - (d) staff costs (236) (236) (e) administration and corporate costs (334) (334) 1.3 Dividends received (see note 3) Interest received Interest and other costs of finance paid Income taxes paid Research and development refunds Other (provide details if material) Net cash from / (used in) operating activities (1,956) (1,956) 2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment - - (b) tenements (see item 10) - - (c) investments - - (d) other non-current assets Proceeds from the disposal of: (a) property, plant and equipment - - (b) tenements (see item 10) - - (c) investments - - (d) other non-current assets Cash flows from loans to other entities

21 Consolidated statement of cash flows Current Quarter (3 months) $A 000 Year To Date (3 months) $A Dividends received (see note 3) Other (provide details if material) Net cash from / (used in) investing activities Cash flows from financing activities 3.1 Proceeds from issues of shares Proceeds from issue of convertible notes Proceeds from exercise of share options Transaction costs related to issues of shares, convertible notes or options Proceeds from borrowings Repayment of borrowings Transaction costs related to loans and borrowings Dividends paid Other (provide details if material) Net cash from / (used in) financing activities Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 36,284 36, Net cash from / (used in) operating activities (item 1.9 above) (1,956) (1,956) 4.3 Net cash from / (used in) investing activities (item 2.6 above) Net cash from / (used in) financing activities (item 3.10 above) Effect of movement in exchange rates on cash held (576) (576) 4.6 Cash and cash equivalents at end of period 33,752 33, Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts Current quarter $A 000 Previous quarter $A Bank balances 30,509 31, Call deposits 3,243 5, Bank overdrafts Other (provide details) Cash and cash equivalents at end of quarter (should equal item 4.6 above) 33,752 36,

22 6. Payments to directors of the entity and their associates Current quarter $A' Aggregate amount of payments to these parties included in item Aggregate amount of cash flow from loans to these parties included in item Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2 Payment of executive and non-executive directors fees, salaries and superannuation. 7. Payments to related entities of the entity and their associates Current quarter $A' Aggregate amount of payments to these parties included in item Aggregate amount of cash flow from loans to these parties included in item Include below any explanation necessary to understand the transactions included in items 7.1 and Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A 000 Amount drawn at quarter end $A Loan facilities Credit standby arrangements Other (please specify) Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well. 9. Estimated cash outflows for next quarter $A Exploration and evaluation Development Production Staff costs Administration and corporate costs Other (provide details if material) Total estimated cash outflows 1,

23 10. Changes in tenements (items 2.1(b) and 2.2(b) above) Tenement reference and location Nature of interest Interest at beginning of quarter Interest at end of quarter 10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced Interests in mining tenements and petroleum tenements acquired or increased EPM26182 NW Qld 100% owned by Roseby Copper (South) Pty Ltd, a wholly owned subsidiary of Altona Mining Limited - 100% Compliance statement 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed. Sign here: Date: 24 October 2017 (Director/Company secretary) Print name: Eric Hughes 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 that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report. 2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, 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. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. 23.

24 SCHEDULE A AUSTRALIAN MINING TENEMENTS Interests in mining tenements relinquished, reduced or lapsed during the quarter None. Interests in mining tenements acquired or increased during the quarter Application Number Name Holder Beneficial Interest Antilles Roseby Copper (South) Pty Ltd 100% Fortuna Roseby Copper (South) Pty Ltd 100% Wedge Roseby Copper (South) Pty Ltd 100% Wicket Roseby Copper (South) Pty Ltd 100% Rebo Roseby Copper (South) Pty Ltd 100% Salacious Roseby Copper (South) Pty Ltd 100% Lars Roseby Copper (South) Pty Ltd Application only Wesell Roseby Copper (South) Pty Ltd Application only Moff Roseby Copper (South) Pty Ltd Application only Interests in mining tenements at end of the quarter All tenements held are in Queensland. The area under granted tenements within Queensland is 2,426 km² and the area under application is 1,505 km². Mining Leases (ML) Cloncurry Copper Project Number Name Holder Beneficial Interest Held Scanlan Altona Mining Ltd / Roseby Copper Pty Ltd 100% Longamundi Altona Mining Ltd / Roseby Copper Pty Ltd 100% Blackard Altona Mining Ltd / Roseby Copper Pty Ltd 100% Little Eva Altona Mining Ltd / Roseby Copper Pty Ltd 100% Village Altona Mining Ltd / Roseby Copper Pty Ltd 100% Exploration Permits for Minerals (EPM) Cloncurry Project Number Name Holder Beneficial Interest Held Bannockburn Roseby Copper Pty Ltd 100% Malakoff Roseby Copper (South) Pty Ltd 100% Burke Roseby Copper Pty Ltd 100% Gray Roseby Copper (South) Pty Ltd 100% King Roseby Copper Pty Ltd 100% Wills Roseby Copper (South) Pty Ltd 100% Cameron Crossing Roseby Copper (South) Pty Ltd 100% Antilles Roseby Copper (South) Pty Ltd 100% Wedge Roseby Copper (South) Pty Ltd 100% Wicket Roseby Copper (South) Pty Ltd 100% 24.

25 Exploration Permits for Minerals (EPM) Baluch Project Number Name Holder Beneficial Interest Held Fortuna Roseby Copper (South) Pty Ltd 100% Rebo Roseby Copper (South) Pty Ltd 100% Exploration Permits for Minerals (EPM) Samla Project Number Name Holder 9611 Happy Valley Roseby Copper (South) Pty Ltd 100% Mt. Angelay Roseby Copper (South) Pty Ltd 100% Beneficial Interest Held Exploration Permits for Minerals (EPM) Essau Project Number Name Holder Beneficial Interest Held Salacious Roseby Copper (South) Pty Ltd 100% Applications for Exploration Permits for Minerals (EPM) Number Name Holder Beneficial Interest Held Malakili Roseby Copper (South) Pty Ltd Application only Sebulba Roseby Copper (South) Pty Ltd Application only Watto Roseby Copper (South) Pty Ltd Application only Oola Roseby Copper (South) Pty Ltd Application only Bossk Roseby Copper (South) Pty Ltd Application only Gonk Roseby Copper (South) Pty Ltd Application only Taun Roseby Copper (South) Pty Ltd Application only Shmi Roseby Copper (South) Pty Ltd Application only Lars Roseby Copper (South) Pty Ltd Application only Wesell Roseby Copper (South) Pty Ltd Application only Moff Roseby Copper (South) Pty Ltd Application only 25.