Independent Tenement Report

Transcription

1 Independent Tenement Report Thackaringa Cobalt Project Broken Hill Prospecting Limited Job No October 2010 Prepared for: Peter Atkinson Heritage Gold NZ Director Reviewed by: Sue Border BSc Hons, Gr Dip, FAIG, FAusIMM, MMICA Prepared by: Jeff Randell BSc Hons, MAIG Technical Manager GJN Enterprises Pty Ltd (ABN ) trading as Geos Mining

2 Executive Summary Geos Mining has provided an Independent Tenement Report (ITR) of the Thackaringa Cobalt Project owned by Broken Hill Prospecting Limited (BHPL). BHPL has raised private funds for further drilling on the property, prior to preparing a prospectus for an IPO to secure a stock exchange listing for BHPL. The project consists of three mineral licences: Exploration Licence 6622 (1992) (EL 6622), Mining Lease 86 (1973) (ML 86) and Mining Lease 87 (1973) (ML 87) which are located approximately 25 km west-southwest of Broken Hill. Land is held in two perpetual pastoral leases: Mt George and Thackaringa. This type of pastoral lease has been accepted as having extinguished native title rights. Geos Mining has completed various searches which have indicated that the Thackaringa Project tenements do not contain excluded or exempt land, except in so far as: EL 6622 excludes land held as ML 86 and ML 87 EL 6622 excludes land held as ML 6302 There is no land vested in the Commonwealth of Australia or subject to any national park, regional park, historic site, nature reserve, karst conservation reserve, Aboriginal area, mining reserve, wetlands or littoral rainforests, State Forests or declared Wilderness areas. Three Crown Land parcels cover public roads in which Native Title may not have been extinguished. One Native Title claim is current over the area and has been accepted for registration. In addition, the ownership of one Unincorporated parcel within ML 87 is not known but is administered by Livestock Health and Pest Authorities. These areas cover less than 1% of the total landholding. It has been concluded that there was no mining tenure over the deposits at Pyrite Hill and Big Hill from Specifically, it is likely that BHPL will not be liable for any restoration of historical mining development, including the spoil from the shafts at Pyrite Hill/ Big Hill, the adit at Big Hill and any exploration drill sites prior to 5 November Each of the licences has ongoing obligations including landowner compensation, environmental management and rehabilitation requirements and expenditure and reporting obligations. Disclaimer While every effort has been made, within the time constraints of this assignment, to ensure the accuracy of this report, Geos Mining accepts no liability for any error or omission. Geos Mining can take no responsibility if the conclusions of this report are based on incomplete or misleading data. Geos Mining and the authors are independent of Broken Hill Prospecting Limited, and have no financial interests in Broken Hill Prospecting Limited or any associated companies. Geos Mining is being remunerated for this report on a standard fee for time basis, with no success incentives. Page 2

3 Contents 1. INTRODUCTION CORPORATE STRUCTURE TENEMENT COMMENTARY EXCLUSIONS LANDHOLDERS, ACCESS AND COMPENSATION ENCUMBRANCES CONTINUITY OF TENURE OVERLAPPING AND ADJOINING TITLES AND APPLICATIONS EXPLORATION LICENCE AND MINING LEASE CONDITIONS EXEMPTED AREAS NATIVE TITLE ENVIRONMENTAL CONSIDERATIONS AND OBLIGATIONS ABORIGINAL HERITAGE EUROPEAN HERITAGE EXPENDITURE AND REPORTING REQUIREMENTS SPECIAL CONDITIONS FUTURE OBLIGATIONS CONCLUSIONS BIBLIOGRAPHY STATEMENT OF CAPABILITY STATEMENT OF INDEPENDENCE LIMITATIONS AND CONSENT GLOSSARY Tables TABLE 1: TENEMENT SUMMARY, THACKARINGA COBALT PROJECT... 7 TABLE 2: CADASTRAL DATA, THACKARINGA COBALT PROJECT TABLE 3: REGISTERED AGREEMENTS, ML 86 AND ML TABLE 4: SUMMARY OF TENURE AND ACTIVITY, THACKARINGA COBALT PROJECT TABLE 5: TENEMENTS ADJOINING EL 6622 (AS OF 27/08/2010) TABLE 6: EXPENDITURE AND REPORTING, THACKARINGA COBALT PROJECT Page 3

4 Figures FIGURE 1: LOCATION OF EL 6622, ML 86 & ML FIGURE 2: LOCATION OF ML 87 WITH RESPECT TO GEOLOGY... 8 FIGURE 3: CADASTRAL DATA, THACKARINGA COBALT PROJECT FIGURE 4: THACKARINGA COBALT PROJECT AND SURROUNDING TENEMENTS FIGURE 5: NATIVE TITLE DETERMINATIONS Photos PHOTO 1: VIEW FROM BIG HILL, ML Page 4

5 1. Introduction Geos Mining is an Australian based geological consultancy which employs qualified experienced geologists and provides a full exploration management service to the mining industry in Australia and overseas. The qualifications and previous experience of Geos Mining staff involved in the preparation of this report are summarised in Section 6. Geos Mining was awarded a contract to provide an Independent Tenement Report (ITR) of the Thackaringa Cobalt Project owned Broken Hill Prospecting Limited (BHPL). BHPL is now carrying out a round of private fund raising for further drilling on the property, prior to preparing a prospectus for an IPO to secure a stock exchange listing for BHPL. The sole purpose of this report is to provide an independent report of the tenement details, any post grant approvals or impediments, past expenditure and future commitments, ownership and details of any coventurers, details of liabilities and encumbrances, and Native Title considerations. This report is intended for inclusion in a prospectus to be issued in connection with the proposed listing of BHPL on the Australian Securities Exchange. Neither the whole nor any part of this report nor any reference thereto may be included in or with or attached to any document or used for any other purpose, without our written consent to the form and context in which it appears. 2. Corporate Structure BHPL is a company incorporated in New Zealand. The Company was incorporated in 1988 and has previously operated as Broken Hill Cobalt Limited and Thackaringa Mining Company Limited. An unlisted company, SoCo Limited (of which BHPL was previously a subsidiary) currently holds a 67% interest in BHPL while Heritage Gold NZ Limited holds a 28% interest. 3. Tenement Commentary The project consists of three mineral licences: Exploration Licence 6622 (1992) (EL 6622), Mining Lease 86 (1973) (ML 86) and Mining Lease 87 (1973) (ML 87) which are located approximately 25 km west-southwest of Broken Hill (Figure 1). Access to the project is from the Barrier Highway and then by farm tracks to the mining leases. The Transcontinental railway transects the property. A typical view of the country is shown in Photo 1. Page 5

6 Broken Hill Prospecting Limited Independent Tenement Report Geos Mining Photo 1: View from Big Hill, ML 87 Figure 1: Location of EL 6622, ML 86 & ML 87 Page 6

7 The tenement details are summarised in Table 1: Tenement EL 6622 ML 86 ML87 Project name Pine Ridge Pyrite Hill Big HIll Grant date 30 Aug Nov Nov 1975 Last renewal 10 Mar Nov Nov 1996 Expiry Date 29 Aug Nov Nov 2017 Holder Beneficial Owner Heritage Gold NZ Limited Broken Hill Prospecting Limited Broken Hill Prospecting Limited Broken Hill Prospecting Limited Area 22 units (63.4km 2 ) ha ha Minerals Cobalt, Iron Minerals, Iron, Platinum, Sulphur, Nickel Broken Hill Prospecting Limited Broken Hill Prospecting Limited Cobalt, Iron Minerals, Iron, Platinum, Sulphur, Nickel Group Group 1 Group 1 Group 1 Security Held $10,000 $5,000 $5,000 County Yancowinna Yancowinna Yancowinna Parish Edgar, Albert, Dhoon, Sentinel Albert Edgar Local Government Area Unincorporated Unincorporated Unincorporated Wetlands Nil Nil Nil Littoral rainforests Nil Nil Nil State Forests Nil Nil Nil Declared wilderness areas Nil Nil Nil National Parks and Reserves Nil Nil Nil Table 1: Tenement Summary, Thackaringa Cobalt Project The location of ML 87 has been an issue since grant as the description does not follow the geology i.e. the lease crosscuts stratigraphy and does not match where the lease would be expected to be placed. This is best shown in Figure 2. The position of the south east corner peg of ML 87 was checked by GPS and is annotated on Figure 2 with a red square. This essentially verifies the plotted position although does not explain the odd shape pegged. Page 7

8 Figure 2: Location of ML 87 with respect to Geology 3.1. EXCLUSIONS EL 6622 excludes land: subject to any assessment lease, mining lease or mineral claim subject to any pending application for a mining lease, mining purposes lease or claim subject to any pending application for an assessment lease, mining lease or mineral claim on which bona fide mining operations were being carried out at the date of grant of the licence on which mining operations were being carried out at the date of grant of the licence vested in the Commonwealth of Australia subject to any national park, regional park, historic site, nature reserve, karst conservation reserve or Aboriginal area subject to any mining reserve Geos Mining has completed various searches which have indicated that EL 6622 excludes land held by ML 86 and ML 87 and ML There is no land vested in the Commonwealth of Australia or subject to any national park, regional park, historic site, nature reserve, karst conservation reserve, Aboriginal area, mining reserve, wetlands or littoral rainforests, State Forests or declared Wilderness areas. Databases interrogated include: Page 8

9 AHIMS search request online (NSW Environment Climate Change and Water, 2010) State Heritage Inventory online. The area of the project lies within the Unincorporated area (NSW Government, 2010) Broken Hill Council area. No restrictions were reported in these searches (High_Ground_Consulting, 2008) and (Urban_Affairs_and_Planning, 1996). Western CMA (Western_CMA, 2006) and Lower Murray Darling Catchment Authority (Lower_Murray_Darling_CMA, 2008). Neither authority appears to show any water restrictions applicable to the relevant area, nor do they have any significant water management areas (riverine or groundwater areas) of concern/management near the titles. The WCMA does have a pest/weed priority area which near the titles LANDHOLDERS, ACCESS AND COMPENSATION Cadastral data underlying the Thackaringa Cobalt Project is shown in Table 2 and Figure 3. Land is held in two pastoral leases: Mt George and Thackaringa. Tenement Lot/ DP Title Holder Area Estate Encumbrances/ Notifications EL / / / / Australian Rail Track Corporation Limited Australian Rail Track Corporation Limited Australian Rail Track Corporation Limited Australian Rail Track Corporation Limited 1/ David Anthony Lord 126/ David Anthony Lord 2342ha Perpetual lease 196/ John Montgomery Lord 1830ha 197/ David Anthony Lord 1751ha Perpetual lease (pt WLL1853) Perpetual lease (pt WLL1797) Excepting land below a depth from the surface of 76.2m Easement for drainage Affects sites in DP Land excludes minerals lots 36 & 37 in DP is now public road this folio cannot be dealt with separately from lots 5/ DP800939, 18-19/ DP746583, 196/ DP760817, / DP excludes lots 4-5/DP which are public road 3679/ David Kenneth McKenzie 6931ha 4599/ David Anthony Lord 23571ha 5400/ David Anthony Lord 2447ha Perpetual lease (pt WLL6537) Perpetual lease (pt WLL802) Perpetual lease (pt WLL682) this folio cannot be dealt with separately from lot 1570/ DP Lot 20 in DP is now public road Page 9

10 Tenement Lot/ DP Title Holder Area Estate Encumbrances/ Notifications ML / David Anthony Lord 4090ha 6613/ David Anthony Lord 4064ha Perpetual lease (pt WLL1275) Perpetual lease (pt WLL1350) 023/3 Crown Land 015/1 Unincorporated Barrier Highway 4599/ As above 1/ As above ML / As above this folio cannot be dealt with separately from lot 5522/ DP this folio cannot be dealt with separately from lot 1/ DP Table 2: Cadastral Data, Thackaringa Cobalt Project There are also three Crown Land parcels and one Unincorporated parcel. The Crown Land parcels cover public roads while the unincorporated parcel underlies the south east corner of ML 87 where the Big Hill cobaltiferous pyrite deposit crops out. Ownership of this parcel is not known but it is thought to be administered by Livestock Health and Pest Authorities (formerly Rural Lands Protection Board). It is necessary to enter into an access agreement with any landholders (owners and occupiers) before carrying out exploration (Section 140 Mining Act 1992). Landholders are entitled to compensation for loss caused to that land by exploration (Section 263 Mining Act 1992). BHPL have a compensation agreement in place with one landholder (Thackaringa Station) and this has been sighted by Geos Mining. Page 10

11 Broken Hill Prospecting Limited Independent Tenement Report Geos Mining Figure 3: Cadastral Data, Thackaringa Cobalt Project 3.3.ENCUMBRANCES There are six agreements registered against ML 86 and ML 87 as shown in Table 3. Registered Date Parties 19/11/1986 John Clema Thackaringa Mining Company Limited 06/10/ /03/1990 Australian Mining & Smelting Ltd BH South Ltd CRA Exploration Pty Limited CRA Services Limited Electrolytic Zinc Company Of Australasia Limited Metals Investigation Pty Ltd North Broken Hill Limited Western Mining Corporation Limited Australian Mining & Smelting Ltd CRA Exploration Pty Limited CRA Services Limited Metals Investigation Pty Ltd Pasminco Australia Limited Page 11

12 Registered Date 09/03/1990 Parties CRA Exploration Pty Limited CRA Services Limited Metals Investigation Pty Ltd Pasminco Australia Limited Zinc Mines Pty Limited 11/09/1992 John Clema Pasminco Australia Limited Thackaringa Mining Company Limited 24/07/1993 John Clema Macedon Gold Mines BV Thackaringa Mining Company Limited Table 3: Registered Agreements, ML 86 and ML 87 Copies of these agreements have not been located by BHPL but the company (P. Atkinson, pers.comm) has commented that the agreements are no longer current and have no residual impact on the project CONTINUITY OF TENURE A search of open file government reports and confidential data held by BHPL has indicated that the project area has had a long lived but sporadic history, as summarised in Table 4. Period Work Completed Tenement Discovery of high grade silver, shaft sink, development of adit at Big Hill, second shaft developed, cross cuts. Company wound up in No reported activity 1951 Mine re-visited, recognised as source of pyrite 1960 Report of cobalt by Zinc Corp Central Austin P/L explored area, several options entered with Metals Exploration and North Broken Hill Grant of mining leases to Thackeringa Mining 1975 (5 Nov) Company Limited (later name change to Broken Hill Cobalt then Broken Hill Prospecting ) Broken Hill South/ North Broken Hill exploration ML 86-ML 89 (Act 1874) No tenure ATP 2817, ATP 3520 ML 86 and ML 87 (Act 1973) EL 733, EL 738, EL CRAE exploration EL CRAE/ BHS/ EZ/ North joint venture established with Central Austin. ML 86, ML Robe River Limited/ North Broken Hill/ Chevron Exploration/ CRAE exploration CRAE/ Aberfoyle exploration BHP Minerals/ Aberfoyle Resources exploration EL 1287, EL 1395, EL 1738, EL 2103 EL 2237, EL 2757, EL 2685 EL 3654, EL 3657, EL 4535, EL 4536, EL Macedon Gold Mines BV option ML 86, ML 87 Page 12

13 Period Work Completed Tenement Hunter Exploration joint venture ML 86, EL Heritage Gold acquired 33% interest in BHPL ML 86, ML 87 BHPL option from Western Metals EL 5679 Heritage Gold exploration EL BHPL exploration EL 6622, ML 86, ML 87 Table 4: Summary of Tenure and Activity, Thackaringa Cobalt Project Of importance to this review is the recognition that there was no mining tenure over the deposits at Pyrite Hill and Big Hill from Specifically, it is likely that BHPL will not be liable for any restoration of historical mining development, including the spoil from the shafts at Pyrite Hill/ Big Hill, the adit at Big Hill and any exploration drill sites prior to 5 November OVERLAPPING AND ADJOINING TITLES AND APPLICATIONS ML 86 and ML 87 are completely enclosed by EL Tenements either adjoining or overlapping EL 6622 are listed in Table 5 and shown in Figure 4. Title No. Company Grant Date Expiry Date Groups ML 6302 KAPITANY, Tamas 18 Jun Jun 2012 Group 1 EL 7162 PERILYA BROKEN HILL LTD 23 Jun Jun 2010 Group 1 EL 5958 RIMFIRE PACIFIC MINING NL 24 Jun Jun 2011 Group 1 EL 6804 MINOTAUR OPERATIONS PTY LTD 06 Jun Jun 2011 Group 1 EL 7476 CARPENTARIA EXPLORATION LTD 16 Mar Mar 2012 Group 1 ELA 4033 WEST CAPE RESOURCES PTY LTD Application date 23 Jul 2010 Group 1 Table 5: Tenements adjoining EL 6622 (as of 27/08/2010) Of particular interest is ML 6302 which pre-dates EL6622 and has precedence over EL 6622 i.e. BHPL has no exploration rights over this mining lease. This lease covers the Great Almadine mine, a small open pit formerly worked for garnets as mineral specimens. Page 13

14 Figure 4: Thackaringa Cobalt Project and Surrounding Tenements 3.6. EXPLORATION LICENCE AND MINING LEASE CONDITIONS The conditions relating to EL 6622 include: Approval of Prospecting Operations consent must be obtained prior to commencing exploration according to the category of surface disturbance Special Areas Conditions - the licence holder must not commence prospecting operations in an exempted area or on land where native title exists without obtaining prior written consent from the Minister. Environmental Management Conditions - environmental management of operations must be carried out according to current best environmental practice or, alternately, it must conform to a specific Environmental Management Plan. This includes assessment of aboriginal and European cultural heritage and potential impacts on threatened species. General Conditions includes general compliance, occupational health and safety and core retention Exploration Performance and Reporting Conditions the licence holder must effectively prospect and expend a defined amount each year and submit technical reports in a timely manner Special Conditions - may be imposed on individual licences In respect of ML 86 and ML 87 the following conditions are current: Page 14

15 Management Plan mining operations can only be conducted with an approved management plan Mining the lease is restricted to open cut operations only Safety abandoned shafts and excavations must be either filled in or rendered safe Rehabilitation the holder must rehabilitate all disturbed areas as directed Reporting annual technical reporting is required These conditions are further described in Sections 3.7 to EXEMPTED AREAS "Exempted areas" under the Act are lands set aside for public purposes. They include travelling stock reserves, road reserves, water supply reserves, State forests, and public reserves and permanent commons. There are no exempted areas within the Thackaringa Cobalt Project although there are public gazetted roads that transect the tenements NATIVE TITLE Native Title claim NC97/32 (FC NSD6084/98 Barkandji Traditional Owners 8) is current over the area and has been accepted for registration (Figure 5). However, Native Title is recognised as extinguished over Western Lands Lease and therefore only areas of Crown Land are subject to this claim within the project area. This area is less than 1% of the total area of EL Figure 5: Native Title Determinations Page 15

16 3.9. ENVIRONMENTAL CONSIDERATIONS AND OBLIGATIONS Three categories of prospecting operations are defined under the licence document for EL 6622, as follows: Category 1: Reconnaissance and low intensity activities Category 2: Operations which have potential for moderate disturbance to the land surface, native vegetation or other environmental value Category 3: Operations which have potential to cause significant environmental impact involving, for example, considerable land surface disturbance or native vegetation clearing All prospecting operations defined at Category 1 and Category 2 require prior notification on a Surface Disturbance Notice form. Approval by the Department requires assessment and determination under Part 5 of the Environmental Planning and Assessment Act 1979 (EP&A Act). In the case of prospecting operations listed in Category 3 (and some Category 2 programmes), a review of environmental factors (REF) must be prepared, and must accompany the Surface Disturbance Notice. This is particularly the case for Sensitive Areas ABORIGINAL HERITAGE A search of the Aboriginal Heritage Information Management System (AHIMS) register has indicated that there are no sites of aboriginal significance within the project area. 1 For the purposes of the licence, Sensitive Areas include the following: (a) land reserved as a State Conservation Area under the National Parks and Wildlife Act1974; (b) land declared as an Aboriginal place under the National Parks and Wildlife Act 1974; (c) land identified as wilderness under the Wilderness Act 1987; (d) land subject to a 'conservation agreement' under the National Parks and Wildlife Act 1974; (e)!and acquired by the Minister for the Environment under Part 11 of the National Parks and Wildlife Act 1974; (f) land proposed to be reserved under the National Parks and Wildlife Act (g) land within State forests mapped as Forestry Management Zone 1, 2 or 3 (h) wetlands mapped under SEPP 14 - Coastal Wetlands; (i) wetlands listed under the Ramsar Wetlands Convention; (j) lands mapped under SEPP26 - Littoral Rainforests; (k) areas listed on the Register of National Estate; (1) areas listed under the Heritage Act 1977 for which a plan of management has been prepared; (m) land declared as critical habitat under the Threatened Species Conservation Ac11995; (n) land within a restricted area prescribed by a controlling water authority; (0) land reserved or dedicated under the Crown Lands Act 1989 for the preservation of flora, fauna, geological formations or other environmental protection purpose; and (p) any other land identified as Sensitive Land by the Department Page 16

17 3.11. EUROPEAN HERITAGE Prior to carrying out any prospecting operations the licence holder must consider potential impacts on items of heritage significance including old mine relics. There are no heritage items applicable to the project area as listed at (NSW Government, 2010) EXPENDITURE AND REPORTING REQUIREMENTS Expenditure and reporting requirements are shown in Table 6. Tenement Annual Expenditure Commitment Actual Expenditure (Year) Actual Expenditure ($) Interim Reports Annual Reports Mining Operations Plan EL /07 $72,160 30/03/ /11/ /08 $53,220 31/03/ /09/ /09 $161,330 30/04/ /10/2009 $52, /10 $56,500 06/04/2010 NA ML 86 $75, /10 Included ML 87 $75, /10 above NA Not submitted Not submitted Table 6: Expenditure and Reporting, Thackaringa Cobalt Project It is noted that in respect of both mining leases, annual reports have never been submitted, expenditures have not been accounted for and a Mining Operations Plan (MOP) is not current. However, in Geos Mining s opinion and for the following reasons these are technical issues which do not jeopardise the integrity of the mining leases: The mining leases are dormant in terms of mining activity and only exploration drilling has been completed. Details of this work have generally been reported in annual reports of the surrounding exploration licence. Industry and Investment NSW (DII) have agreed in the past in relation to other mining leases, to accept one report which summarises all previous exploration activity in satisfaction of this licence condition. Expenditures have been reported within the annual reports for the surrounding exploration licence A MOP is not required when no activity is proposed. BHPL is currently preparing a MOP in full cooperation with DII and this will govern any future proposed exploration SPECIAL CONDITIONS The licence conditions for EL6622 indicate that there must not be any interference with the assets of Country Energy Water Division, in particular high voltage overhead power lines. It is stated that a minimum of ten metres horizontal clearance should be maintained from any overhead power line. Page 17

18 3.14. FUTURE OBLIGATIONS Each of the licences has ongoing: Landowner compensation requirements (see Section 3.2) Environmental management and rehabilitation requirements (see Section 3.9) Expenditure and reporting obligations (see Section 3.12) Failure to adhere to anyone of these obligations may put the tenements at risk of forfeiture. 4. Conclusions Geos Mining has completed various searches which have indicated that the Thackaringa Project tenements do not contain excluded or exempt land, except in so far as: EL 6622 excludes land held as ML 86 and ML 87 EL 6622 excludes land held as ML 6302 Searches of various databases have not raised any concerns with respect to land usage or heritage. Three Crown Land parcels cover public roads in which Native Title may not have been extinguished. In addition, the ownership of one Unincorporated parcel within ML 87 is not known but is administered by Livestock Health and Pest Authorities. As the grant of ML 87 pre-dates the Native Tile Act (Commonwealth_Government, 1993) it is considered that native title is extinguished over this parcel. It has been concluded that there was no mining tenure over the deposits at Pyrite Hill and Big Hill from Specifically, it is likely that BHPL will not be liable for any restoration of historical mining development, including the spoil from the shafts at Pyrite Hill/ Big Hill, the adit at Big Hill and any exploration drill sites prior to 5 November There are shortcomings in respect of both ML 86 and ML 87 in that annual reports have never been submitted, expenditures have not been accounted for and a Mining Operations Plan (MOP) is not current. It is noted, however, that BHPL are currently formulating a MOP to address these issues. 5. Bibliography High_Ground_Consulting, Report on the Community Based heritage Study of the City of Broken Hill. Broken Hill City Council. Lower_Murray_Darling_CMA, Lower Murray darling Catchment Action Plan. NSW Environment Climate Change and Water, How to Obtain AHIMS Data. [Online] Available at: [Accessed 30 August 2010]. Page 18

19 NSW Government, NSW Heritage. [Online] Available at: [Accessed 30 Augustus 2010]. Urban_Affairs_and_Planning, Broken Hill Local Environment Plan. Western_CMA, Western Catchment Action Plan Statement of Capability This report has been prepared by Geos and has been compiled and edited by Project Manager, Jeff Randell. Principal Consultant, Sue Border, has reviewed this document. Significant contributors are listed below. Sue Border (BSc Hons, Gr Dip, FAIG, FAusIMM, MMICA) Ms Border has 30 years experience in the minerals industry working mainly in Africa, Australia and Asia. Sue specialises in project assessment, exploration management and resource and reserve estimation. Sue s broad experience includes periods as a mine geologist, consultant, academic, and exploration manager before starting Geos. Sue is the Principal of Geos Mining, a consultancy company providing specialist exploration services to the coal, uranium, gold, base metals and industrial minerals sectors. Sue has specialist experience in a wide variety of metals and industrial minerals and supervises all independent geological reports produced by Geos. Jeff Randell (BSc Hons, MAIG) Mr Randell is a widely experienced professional geologist in both exploration and mining with more than 35 years experience in gold, base metals and bauxite. Mr Randell has particular expertise in the administrative management of projects and is currently employed as a Project Manager for Geos Mining. All information in this report relating to Mineral Resources is based on and accurately reflects, information compiled by consultants and contractors employed by Geos Mining under the supervision of the company s Project Manager who is a Competent or Qualified Person as defined in the Australasian Code for Reporting or Mineral Resources and Ore Reserves. Signature: Name: Jeff Randell Qualifications: BSc (Hons), MAIG Position: Project Manager Date: 09 October 2010 Page 19

20 7. Statement of Independence At the date of this report GEOS does not have nor has had any relationship with Broken Hill Prospecting Limited or its associated companies other than as a result of providing independent consultancy services in the ordinary course of business. Geos Mining has no relevant interest in nor any interest in the acquisition or disposal of any securities of Broken Hill Prospecting Limited or any of the assets of Broken Hill Prospecting Limited or its subsidiaries. Geos Mining has no pecuniary or other interest that could be regarded as being capable of affecting its ability to provide an unbiased opinion in relation to the assets of Broken Hill Prospecting Limited. No Geos Mining principal, senior employee nor spouse or children of any principals or senior employees who are responsible for preparing any part of this report have any interest in the outcome of this report or this prospectus. No Geos Mining principal, senior employee nor spouse or children of any principals or senior employees has received any pecuniary or other benefit whether direct or indirect or in connection with preparing this report other than normal consultancy fees based on time being fees at normal professional rates plus out of pocket expenses. The payment of fees for preparation of this report is not contingent on the success or otherwise of the prospectus within which this report is contained. 8. Limitations and Consent The opinions expressed herein are given in good faith and Geos Mining believes that any assumptions or interpretations are reasonable. With respect to this report and its use by Broken Hill Prospecting and its advisers, Broken Hill Prospecting agrees to indemnify and hold harmless Geos Mining, its shareholders, directors, officers and associates against any and all losses, claims, damages, liabilities or actions to which they or any of them may become subject under any securities act, statute or common law, except in respect to fraudulent conduct, negligence or wilful misconduct, and will reimburse them on a current basis for any legal or other expenses incurred by them in connection with investigating any claims or defending any actions, except where they or any of them are found liable for, or guilty of fraudulent conduct, negligence or wilful misconduct. This report is provided to Broken Hill Prospecting solely for the purpose of assisting potential investors and other interested parties in assessing the geological and technical issues as well as the potential risks associated with Broken Hill Prospecting exploration of the project outlined above and should not be used or relied upon for any other purpose. This report does not constitute a full technical audit but rather it seeks to provide an independent overview and technical appreciation of Broken Hill Prospecting Thackaringa Project. Neither the whole nor any part of this report, nor any reference thereto, may be included in, or with, or attached to any document or used for any purpose without Geos Mining s written consent to the form and context in which it appears. Page 20

21 9. Glossary Terms not included in this glossary are used in accordance with their definitions in the Australian Concise English Dictionary. Adit: type of entrance to an underground mine which is horizontal or nearly horizontal AHIMS: acronym for Aboriginal Heritage Information Management System CMA: acronym for Catchment Management Authority Cobalt: hard, lustrous, gray metal, a chemical element with symbol Co Cobaltiferous: Containing or yielding cobalt. Crown Land: Land which may not have official tenure under land legislation and which is held and managed by the Government. The Government may licence the use of such land for specific purposes or may alienate the land by selling or leasing. Exploration licence: a title granted by the NSW Government to individuals and companies who wish to explore for minerals. Garnet: includes a group of minerals that have been used since the Bronze Age as gemstones and abrasives. The name "garnet" may come from either the Middle English word gernet meaning 'dark red'. GPS: acronym for Global Positioning System Ha: abbreviation for hectare IPO: acronym for Initial Public Offering Karst: topography is a landscape shaped by the dissolution of a layer or layers of soluble bedrock, usually carbonate rock such as limestone or dolomite. Littoral: zone refers to that part of a sea, lake or river that is close to the shore. Mineral claim: possessory title which gives the holder an exclusive right to prospect for minerals within the claim area Mining lease: an agreement that provides the lessee the right to excavate and sell minerals on the property of the lessor. In return, the lessor receives a royalty payment based on the value of the minerals removed. Mining reserve: area of land in NSW set apart from mining or mineral exploration Native title: Native title is "the recognition by Australian law that some Indigenous people have rights and interests to their land that come from their traditional laws and customs". Open pit: refers to a man made hole resulting from the extraction of minerals from the earth Pastoral lease: is an agreement that allows for the use of Crown land by farmers, etc. The leases constitute an Australian land apportionment system created in the mid-19th century to facilitate the orderly division and sale of land to indigenous Australians and European colonists. Pers.comm.: abbreviation for personal communication Page 21

22 Prospecting: the physical search for minerals, fossils, precious metals or mineral specimens. Prospecting is a small-scale form of mineral exploration. Unincorporated parcel: a region of land that is not a part of any municipality. Page 22