SYS-CON MEDIA Authors: Sandi Mappic, Eric Brown, RealWire News Distribution, Kevin Benedict, Jason Bloomberg

News Feed Item

Paladin Energy Ltd: Michelin Uranium Deposit, Labrador Updated Mineral Resource

- Measured and Indicated Mineral Resource increased by 25% to 84.1Mlb U3O8

PERTH, WESTERN AUSTRALIA -- (Marketwired) -- 06/26/14 -- Paladin Energy Ltd (TSX: PDN)(ASX: PDN) ("Paladin" or the "Company") is pleased to announce that a revised mineral resource estimate for the Michelin Deposit (the "2014 Mineral Resource Estimate"), effective 26 June 2014, conforming to both the JORC(2012) Code and National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101") has now been completed.

2014 Mineral Resources Estimate

The 2014 Mineral resources estimate for the Michelin Deposit was successful in converting some 13.2Mlb U3O8 of previously Inferred category material into the Measured and Indicated categories as well as adding an additional 3.8Mlb U3O8 for a Measured and Indicated mineral resource total of 84.1Mlb U3O8. Additional mineral resources remaining in the Inferred category now stand at 22.9Mlb U3O8.


---------------------------------------------------------------------------
Aurora Michelin Mineral Resource (2009)(1)
---------------------------------------------------------------------------
Open Pit portion Cut-off grade 200ppm
---------------------------------------------------------------------------
                             Tonnes               Grade              Pounds
Measured                  5,783,000                 765           9,755,000
Indicated                 6,839,000                 629           9,480,000
M + I                    12,622,000                 691          19,235,000
Inferred                  3,393,000                 326           2,442,000
---------------------------------------------------------------------------
Underground portion Cut off grade 500ppm
---------------------------------------------------------------------------
Measured                  1,289,000               1,165           3,310,000
Indicated                16,170,000               1,251          44,582,000
M + I                    17,459,000               1,244          47,892,000
Inferred                 12,577,000               1,213          33,647,000
---------------------------------------------------------------------------
Combined
---------------------------------------------------------------------------
Measured                  7,072,000                 838          13,065,000
Indicated                23,009,000               1,066          54,062,000
M + I                        30,081               1,012          67,127,000
Inferred                 15,970,000               1,025          36,089,000
---------------------------------------------------------------------------

---------------------------------------------------------------------------
Paladin 2014 Mineral Resource Estimate(2)
---------------------------------------------------------------------------
Open Pit portion Cut-off grade 250ppm
---------------------------------------------------------------------------
Volume                       Tonnes               Grade              Pounds
3,881,000                10,456,000                 938          21,630,000
2,207,000                 5,935,000                 937          12,257,000
6,089,000                16,391,000                 938          33,887,000
614,000                   1,641,000               1,343           4,860,000
---------------------------------------------------------------------------
Underground portion Cut off grade 500ppm
---------------------------------------------------------------------------
1,894,000                 5,113,814               1,104          12,450,466
5,925,000                15,996,185               1,072          37,790,503
7,819,000                21,110,000               1,080          50,241,000
2,655,000                 7,168,000               1,140          18,020,000
---------------------------------------------------------------------------
Combined
---------------------------------------------------------------------------
5,775,000                15,570,000                 993          34,080,000
8,132,000                21,932,000               1,035          50,048,000
13,907,000               37,501,000               1,017          84,128,000
3,269,000                 8,809,000               1,178          22,880,000
---------------------------------------------------------------------------
Figures for volume, tonnes and pounds are rounded to nearest thousand and
may not add.
Notes
(1)   These mineral resources are reported in a technical report prepared by
      Aurora Energy Resources Inc. (Aurora) (acquired by Paladin in February
      2011) and authored by AMEC ERC Services, dated 1 August 2009, titled
      'Michelin Uranium Project, Labrador, Canada NI 43-101 Technical Report
      on Preliminary Assessment' and filed on SEDAR. This technical report
      was reviewed by David Princep and, following the decision by the
      Nunatsiavut government to lift the moratorium on uranium processing,
      Paladin considered these mineral resources to be current mineral
      resources as defined in NI 43-101.

(2)   Effective date 26 June 2014

All historical data, both British Newfoundland Exploration Limited (Brinex) from the 1970's and more recent Aurora data for the period 2005 to 2008 has been entered into the geological database and validated. The additional drilling that Paladin completed in 2012 and 2013 has infilled some areas within the previous mineral resource and has allowed for the creation of a much more robust geological interpretation. The mineral resource detailed above is broken down on a similar basis to the previous mineral resource estimated by Aurora in 2009. The Open Pit (OP) and Underground (UG) split is determined now to be approximately at 230m below surface (or 100m RL) following pit optimisation studies using previous costs and a variety of uranium prices. This is slightly lower (80m) than the boundary used in the previous estimate.

The 2014 Mineral Resource Estimate is based on Multi Indicator Kriging (MIK) of grade values with no top cuts; a variance adjustment has been applied to the MIK estimates in order to more appropriately address mining constraints and selectivity. The cut-off grades of 250ppm U3O8 for open pit mineable material and 500ppm U3O8 for underground mineable material have been chosen based on previous economic assessments of the deposit and likely expected future uranium prices. The open pit cut-off grade was increased from 200ppm to 250ppm to reflect the current and likely near term uranium price and align with cut-off grades for the Company's other projects. The open pit/underground transition position was based on pit optimisations run at various uranium prices using previously defined processing and mining costs. Other than the probability that the deposit will be processed using both open pit and conventional underground mining techniques no additional modifying factors have been considered to date.

The classification of the 2014 Mineral Resource Estimate into Measured, Indicated and Inferred Mineral Resource categories is based on the global density of drilling in association with the results from the validation of all historic data. As the deposit is not drilled on a regular grid it is not possible to specify particular drill spacing associated with any particular resource category. Mineral resources in addition to those at the Michelin Deposit for the Michelin Project are referred to under 'Additional Potential' below.

Geological and Data Information

More detail on the modelling techniques and estimation parameters used for the 2014 Mineral Resource Estimate can be found in the additional information attached to this announcement. A NI 43-101 Technical Report for the Michelin deposit will be filed on SEDAR in due course. All sampling, analytical and test data used in this Mineral Resource Estimation has been verified by David Princep B.Sc., FAusIMM(CP), an employee of Paladin and a Qualified Person under NI 43-101.

Data for the 2014 Mineral Resource Estimate is based on a combination of down hole logging (total gamma) and diamond drill core sampling. Drill core samples were split on site and sent for geochemical analysis at the ALS laboratory in Vancouver. Analysis was based on pressed powder XRF for Uranium and Zirconium and a four acid digest followed by atomic emission spectrometry for other elements and are considered appropriate for the quantities and style of mineralisation present. Down hole logging was conducted at 5cm intervals for gamma data. Drill core from the most recent drilling programme was split using a core saw, during previous programmes the core was split using a mechanical splitter, and sampled at 1.0m lengths for the mineralised intervals plus at least 1-2m above and below.

Drilling for the project has been based exclusively on Diamond Core with all holes from the most recent drilling programme down hole surveyed for deviation and radiometric logs. As part of this process a number of historic holes were re-logged where available. The mineral resource remains substantially open along strike and at depth though it does narrow in all directions. There are still areas within the deposit which require infill drilling to either increase the contained mineral resource pounds or effectively close off the mineral resource. The estimate above does not use any of the underground adit face sampling as the actual location of these samples is subject to some debate.

The image below shows the drill collars from the current dataset with historic Brinex and Aurora holes with the winter (February/March) 2014 Paladin holes as triangles. For full details on the 2014 drilling programme see the ASX announcement 'Positive drilling results, Michelin Project, Labrador' released by the Company on the 7th May 2014. Due to drilling conditions, in some cases multiple drill holes may be drilled from one site and will therefore appear as a single location. The image shows the Michelin 2014 Mineral Resource Estimate model and mineral resource definition drilling with the grid shown being the Aurora drilling grid. The adit area is indicted by the dense cluster of drill collars and is located approximately along the 0mN grid line.

To view the figure accompanying this press release, please visit the following link:

http://media3.marketwire.com/docs/954265.pdf

The mineralisation at Michelin occurs in a strongly deformed package of intercalated finely and coarsely porphyritic metavolcanic rocks of the Aillik group. These host rocks have a rhyolite composition comprising potassium-feldspar, quartz with minor plagioclase, biotite, magnetite and traces of apatite, titanite and zircon. The Aillik group lithologies in the immediate area also include metamorphosed mafic volcanics, banded siltstones and volcanoclastic sediments. This volcano-sedimentary package has been intruded by granites and granodiorites in the form of plutons, sheets and dykes. The Michelin mineralised zone is about 1,200 metres long, 5-50 metres thick and has been drilled to a depth of over 800 metres, and is open at depth and along strike. The thicker core of the mineralisation plunges to the west. The Michelin host rocks were subject to intense sodic metasomatism, this is displayed by the replacement of potassium-feldspar by albite, and biotite by sodic amphibole and sodic pyroxene. Furthermore, quartz phenocrysts show dissolution textures and are partly replaced by albite.

ADDITIONAL POTENTIAL

The Michelin Deposit is still open along strike and at depth and, due to the difficulty in drilling from lake based platforms, still has a number of internal under-drilled areas. Drilling programmes have already been designed to both infill and extend the existing mineral resource. In addition there are also a number of promising targets within the Michelin - Rainbow trend which are actively being explored and are expected to contribute to the economic viability of the project. Additional mineral resources for other deposits within the Michelin project are detailed below.


----------------------------------------------------------------------------
              Measured Mineral     Indicated Mineral     Inferred Mineral
Deposit           Resource             Resource              Resource
----------------------------------------------------------------------------
Cut-off
 0.05%
& 0.02%          Grade                 Grade                 Grade
 U3O8        Mt      %    t U3O8   Mt      %    t U3O8   Mt      %    t U3O8
----------------------------------------------------------------------------
Jacques
 Lake       0.9   0.09       747  6.0   0.07     4,327  8.1   0.05     4,103
----------------------------------------------------------------------------
Rainbow     0.2   0.09       193  0.8   0.09       655  0.9   0.08       739
----------------------------------------------------------------------------
Inda                              1.2   0.07       826  3.3   0.07     2,171
----------------------------------------------------------------------------
Nash                              0.7   0.08       564  0.5   0.07       367
----------------------------------------------------------------------------
Gear                              0.4   0.08       270  0.3   0.09       279
----------------------------------------------------------------------------
                             940                 6,642                 7,659
Total       1.1   0.09  (2.1Mlb)  9.1   0.07 (14.6Mlb) 13.1   0.06 (16.9Mlb)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

The mineral resources for the satellite deposits are reported at cut-off grades that contemplated underground (0.05% U3O8 cut-off) and open pit (0.02% U3O8 cut-off) mining, based on preliminary economic assumptions carried out by Aurora.

Information in the table above in relation to the Michelin project area mineral resources was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with JORC Code 2012 on the basis that the information that the estimates are derived from has not materially changed since it was last reported.

The updated 2014 Mineral Resource Estimate for the Michelin Deposit has provided added confidence in the character of the mineralisation with the significant increase in Measured and Indicated category material. Importantly, in addition, the near surface open pittable portion of the deposit now contains a substantial increase in both uranium grade and contained metal. Future drilling will concentrate on expanding the mineral resources at both the Michelin Deposit and the deposits and prospects occurring in the immediate surrounds.

Declaration

The information in this announcement that relates to exploration results and mineral resources is based on information compiled by David Princep B.Sc., FAusIMM(CP). Mr Princep has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is 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", and as a Qualified Person as defined in NI 43-101. Mr Princep is a full-time employee of Paladin Energy Ltd and approves of and consents to the inclusion of the information in this announcement (and the attachment to this announcement) in the form and context in which it appears.

Caution regarding forward-looking information

Except for historical information contained in this news release, this news release contains "forward-looking information" within the meaning of securities laws of applicable jurisdictions. The forward-looking information includes, but is not limited to, statements with respect to the economic viability and additional potential of the Michelin Project, the estimated Mineral Resources of the Michelin Project and Paladin's intentions to file a NI 43-101 technical report for the Michelin project, undertake additional infill drilling and complete additional field work, exploration and drilling at the Michelin Project. Assumptions upon which such forward-looking information is based include that exploration programs will proceed as planned, that the Company will continue to have the ability to carry on its exploration activities, will have or will be able to obtain sufficient funding, will receive required approvals on a timely basis, will not be affected by adverse political events, will continue to operate in a safe, efficient and effective manner and will be able to obtain further financing as and when required and on reasonable terms and that there will be a sufficient increase in the uranium price to incentives project development. Management believes these assumptions are reasonable. However, forward-looking information involves known and unknown risks, uncertainties and other factors, many of which are outside the control of Paladin, and its officers, employees, agents or associates. Such risks, uncertainties and other factors include, but are not limited to, that the business of exploration for uranium involves a high degree of risk and is highly speculative in nature, mineral resources are not mineral reserves, they do not have demonstrated economic viability at this time and there is no certainty that they can be upgrades to mineral reserves through continued exploration; few properties that are explored are ultimately developed into producing mines; geological factors; the actual results of current and future exploration; changes in project parameters as plans continue to be evaluated, and those factors discussed in the section entitled "Risk Factors" in Paladin's most recent Annual Information Form available under Paladin's profile on SEDAR at www.sedar.com. Although Paladin has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Actual results, performance or achievements may vary materially from those suggested by such forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information and Paladin assumes no obligation to update such information, except as required by applicable law.


JORC Code, 2012 Edition - Michelin deposit 2014

Section 1: For information relating to section 1 please see Paladin ASX
announcement 'Positive Drilling Results, Michelin Project, Labrador', 7th
May 2014

Section 2: For information relating to section 2 please see Paladin ASX
announcement 'Positive Drilling Results, Michelin Project, Labrador', 7th
May 2014

Section 3 Estimation and Reporting of Mineral Resources
----------------------------------------------------------------------------
Criteria       JORC Code explanation          Commentary
----------------------------------------------------------------------------
Database       - Measures taken to ensure     - All data has been
integrity      that data has not been         extensively validated back to
               corrupted by, for example,     the original paper and
               transcription or keying        electronic logs and any issues
               errors, between its initial    have been resolved. The
               collection and its use for     geological database contains
               Mineral Resource estimation    extensive validation tools for
               purposes.                      automatic flagging of a
               - Data validation procedures   significant number of
               used.                          potential validation issues.
                                              - Data validation procedures
                                              are visual (based on
                                              comparison of printed logs and
                                              sections) and electronic (on
                                              database upload of electronic
                                              information - assay results,
                                              gamma and down hole survey
                                              logs etc.)
----------------------------------------------------------------------------
Site visits    - Comment on any site visits   - The exploration area was
               undertaken by the Competent    visited by the CP for a period
               Person and the outcome of      of 7 days during the March
               those visits.                  2013 winter drilling
               - If no site visits have been  programme.
               undertaken indicate why this
               is the case.
----------------------------------------------------------------------------
Geological     - Confidence in (or            - The geological setting of
interpretation conversely, the uncertainty    the deposit is well understood
               of) the geological             having been subject to
               interpretation of the mineral  extensive exploration over a
               deposit.                       number of years. A combination
               - Nature of the data used and  of core logging as well as
               of any assumptions made.       downhole radiometric logs has
               - The effect, if any, of       been used to refine and more
               alternative interpretations on accurately define the
               Mineral Resource estimation.   geological model.
               - The use of geology in        - The mineral resource was
               guiding and controlling        defined by a combination of
               Mineral Resource estimation.   the modelled geological
               - The factors affecting        sequence and mineral resource
               continuity both of grade and   grade shells.
               geology.                       - The local geology appears to
                                              be relatively simple in the
                                              main and it is not expected
                                              that any alternative
                                              interpretation would
                                              substantially alter either the
                                              gross geological model or the
                                              contained metal within the
                                              mineral resource estimate.
----------------------------------------------------------------------------
Dimensions     - The extent and variability   - The current mineral resource
               of the Mineral Resource        is modelled to be 1500m in
               expressed as length (along     strike, 1,150m in the dip
               strike or otherwise), plan     direction (950m vertical) and
               width, and depth below surface varies in width from less than
               to the upper and lower limits  2m at the strike extremities
               of the Mineral Resource.       to 280m when both the hanging
                                              and footwall mineralisation is
                                              considered.
----------------------------------------------------------------------------
Estimation and - The nature and               - The mineral resource was
modelling      appropriateness of the         estimated using Multi
techniques     estimation technique(s)        Indicator Kriging (MIK)
               applied and key assumptions,   techniques with a specific
               including treatment of extreme variance adjustment correction
               grade values, domaining,       applied to allow for the level
               interpolation parameters and   of selectivity expected during
               maximum distance of            the mining process. Estimation
               extrapolation from data        search distances range from
               points. If a computer assisted 50mE x 30mN x 20mRL to 150mE x
               estimation method was chosen   90mN x 60mRL in three passes.
               include a description of       Searches were conducted on an
               computer software and          octant basis with a minimum of
               parameters used.               4 octants for Measured and
               - The availability of check    Indicated material and two
               estimates, previous estimates  octants for Inferred material.
               and/or mine production records In addition a minimum of 16
               and whether the Mineral        samples (and maximum of 32)
               Resource estimate takes        were required for Measured and
               appropriate account of such    Indicated estimates, this was
               data.                          relaxed to a minimum of 8
               - The assumptions made         samples for Inferred material.
               regarding recovery of by-      The full MIK model has been
               products.                      used to report the open pit
               - Estimation of deleterious    portion of the mineral
               elements or other non-grade    resource at a 250ppm U3O8 cut-
               variables of economic          off grade. Reporting a
               significance (eg sulphur for   proportional block mode is not
               acid mine drainage             considered appropriate for the
               characterisation).             purposes of reporting for
               - In the case of block model   mineral resources likely to be
               interpolation, the block size  extracted by underground
               in relation to the average     mining techniques so the block
               sample spacing and the search  average grade (e-type) within
               employed.                      the mineralised wireframe at a
               - Any assumptions behind       cut-off grade of 500ppm U3O8
               modelling of selective mining  is reported for the mineral
               units.                         resource below 100m RL.
               - Any assumptions about        - The mineral resource
               correlation between variables. reported here has been
               - Description of how the       compared to the previous
               geological interpretation was  mineral resource estimate and
               used to control the resource   compared favourably in terms
               estimates.                     of total contained tonnes and
               - Discussion of basis for      metal. However the
               using or not using grade       distribution of grade between
               cutting or capping.            the two component parts of the
               - The process of validation,   mineral resource is different,
               the checking process used, the reflecting the different
               comparison of model data to    estimation techniques.
               drill hole data, and use of    - There are currently no
               reconciliation data if         defined by-products.
               available.                     - Test work undertaken to data
                                              suggests that there are no
                                              deleterious elements or other
                                              non-grade variables of
                                              economic significance.
                                              - The primary block sizes are
                                              20m (E) x 5m (N) x 10m (RL)
                                              and are orientated in the
                                              direction of the dip of the
                                              mineralisation and are
                                              considered appropriate to both
                                              the average width of the
                                              mineralisation and the current
                                              drilling density.
                                              - The selective mining unit
                                              (SMU) size of 5m x 5m x 2.5m
                                              was determined on the basis of
                                              the likely size of equipment
                                              used to mine the deposit and
                                              likely bench height for mining
                                              open pit.
                                              - Grade wireframes were used
                                              to define distinct geology and
                                              mineralisation domains and
                                              these were used to control the
                                              MIK estimation.
                                              - As the mineral resource
                                              estimation technique was MIK
                                              no grade capping or cutting
                                              was undertaken.
                                              - Swath plots of the mineral
                                              resource and underlying sample
                                              data (in North, East and RL
                                              directions) was used to assess
                                              the validity of the mineral
                                              resource estimate. In all
                                              cases it is believed that the
                                              mineral resource estimate is
                                              reasonable.
----------------------------------------------------------------------------
Moisture       - Whether the tonnages are     - Tonnages are estimated dry.
               estimated on a dry basis or
               with natural moisture, and the
               method of determination of the
               moisture content.
----------------------------------------------------------------------------
Cut-off        - The basis of the adopted     - Cut off parameters are based
parameters     cut-off grade(s) or quality    on the likelihood of open pit
               parameters applied.            mining for the first portion
                                              of the mineral resource. Pit
                                              optimisation calculations were
                                              undertaken at a number of
                                              commodity prices to determine
                                              both the likely depth of
                                              transition between open pit
                                              and underground mining (which
                                              directly affects the size of
                                              the mineral resource) as well
                                              as indicating a marginal cut-
                                              off grade. A uranium price of
                                              US$60/lb indicates a marginal
                                              cut-off grade of 250ppm U3O8
                                              and also defines a reasonable
                                              open pit base at 100m RL. A
                                              higher cut-off grade of 500ppm
                                              U3O8 was selected to reflect
                                              the higher costs associated
                                              with underground mining.
----------------------------------------------------------------------------
Mining factors - Assumptions made regarding   - It is assumed that the
or assumptions possible mining methods,       mineralisation is likely to be
               minimum mining dimensions and  extracted by a combination of
               internal (or, if applicable,   both open pit and underground
               external) mining dilution. It  mining techniques. As the
               is always necessary as part of mineral resource estimation
               the process of determining     technique is MIK no additional
               reasonable prospects for       dilution or recovery
               eventual economic extraction   adjustments have been made
               to consider potential mining   over those contained in the
               methods, but the assumptions   original estimation. Should
               made regarding mining methods  mining be conducted at the
               and parameters when estimating Michelin deposit it is
               Mineral Resources may not      expected that, once some form
               always be rigorous. Where this of grade control
               is the case, this should be    reconciliation can be
               reported with an explanation   completed, refinement of the
               of the basis of the mining     MIK variance adjustment can be
               assumptions made.              undertaken.
----------------------------------------------------------------------------
Metallurgical  - The basis for assumptions or - Existing metallurgical
factors or     predictions regarding          testwork indicates that the
assumptions    metallurgical amenability. It  mineralisation is amenable to
               is always necessary as part of conventional acid leach
               the process of determining     extraction at reasonable cost.
               reasonable prospects for       Additional testwork to
               eventual economic extraction   determine the amenability to
               to consider potential          alkaline leach is expected to
               metallurgical methods, but the be undertaken in the future.
               assumptions regarding          Following this it is expected
               metallurgical treatment        that a preferred processing
               processes and parameters made  route will be determined
               when reporting Mineral
               Resources may not always be
               rigorous. Where this is the
               case, this should be reported
               with an explanation of the
               basis of the metallurgical
               assumptions made.
----------------------------------------------------------------------------
Environmental  - Assumptions made regarding   - Environmental baseline work
factors or     possible waste and process     was undertaken by the previous
assumptions    residue disposal options. It   owners of the deposit and this
               is always necessary as part of has been continued by Paladin.
               the process of determining     There has been no extensive
               reasonable prospects for       assessment of the
               eventual economic extraction   environmental impacts of the
               to consider the potential      project and as such this has
               environmental impacts of the   not been considered in the
               mining and processing          mineral resource estimate.
               operation. While at this stage - There are no other known
               the determination of potential legal, political or other
               environmental impacts,         risks that could materially
               particularly for a greenfields affect the potential
               project, may not always be     development of the mineral
               well advanced, the status of   resources.
               early consideration of these
               potential environmental
               impacts should be reported.
               Where these aspects have not
               been considered this should be
               reported with an explanation
               of the environmental
               assumptions made.
----------------------------------------------------------------------------
Bulk density   - Whether assumed or           - The bulk density value used
               determined. If assumed, the    in the mineral resource
               basis for the assumptions. If  estimate was determined from
               determined, the method used,   analysis of diamond drill core
               whether wet or dry, the        using standardised techniques.
               frequency of the measurements, A total of 2,440 bulk density
               the nature, size and           determinations were used and
               representativeness of the      these are distributed
               samples.                       throughout the mineralisation.
               - The bulk density for bulk    The main method employed was
               material must have been        weighing in air and water
               measured by methods that       following drying and sealing
               adequately account for void    of the sample. This method is
               spaces (vugs, porosity, etc),  considered to appropriately
               moisture and differences       deal with void, moisture and
               between rock and alteration    rock type differences. The
               zones within the deposit.      valued applied to the mineral
               - Discuss assumptions for bulk resource estimate is based on
               density estimates used in the  the predominant mineralised
               evaluation process of the      rock type and does not make
               different materials.           allowance for the inclusion of
                                              non-mineralised intrusive
                                              rocks, however the sample
                                              grade is reduced for these
                                              rocks in the compositing
                                              process leading to the
                                              potential for a minor
                                              understatement of metal within
                                              the mineral resource estimate.
----------------------------------------------------------------------------
Classification - The basis for the            - The mineral resource has
               classification of the Mineral  been classified on the basis
               Resources into varying         of drilling density throughout
               confidence categories.         the deposit as well as the
               - Whether appropriate account  validity of the underlying
               has been taken of all relevant data.
               factors (ie relative           - All relevant factors have
               confidence in tonnage/grade    been taken into account when
               estimations, reliability of    determining the mineral
               input data, confidence in      resource classification.
               continuity of geology and      - The current classification
               metal values, quality,         of the deposit reflects the
               quantity and distribution of   opinion of the Competent
               the data).                     Person.
               - Whether the result
               appropriately reflects the
               Competent Person's view of the
               deposit.
----------------------------------------------------------------------------
Audits or      - The results of any audits or - The mineral resource
reviews        reviews of Mineral Resource    estimate has been reviewed by
               estimates.                     Company specialists and the
                                              current values reflect this
                                              review.
----------------------------------------------------------------------------
Discussion of  - Where appropriate a          - Based on the current
relative       statement of the relative      understanding of the deposit
accuracy/      accuracy and confidence level  it is believed that the
confidence     in the Mineral Resource        mineral resource estimate
               estimate using an approach or  reasonably reflects the
               procedure deemed appropriate   accuracy and confidence levels
               by the Competent Person. For   within the deposit. Due to the
               example, the application of    nature and style of the
               statistical or geostatistical  mineralisation it is expected
               procedures to quantify the     that additional, detailed,
               relative accuracy of the       infill drilling will locally
               resource within stated         modify grades and thicknesses
               confidence limits, or, if such however the global tonnages
               an approach is not deemed      and grades are expected to
               appropriate, a qualitative     remain consistent.
               discussion of the factors that
               could affect the relative
               accuracy and confidence of the
               estimate.
               - The statement should specify
               whether it relates to global
               or local estimates, and, if
               local, state the relevant
               tonnages, which should be
               relevant to technical and
               economic evaluation.
               Documentation should include
               assumptions made and the
               procedures used.
               - These statements of relative
               accuracy and confidence of the
               estimate should be compared
               with production data, where
               available.
----------------------------------------------------------------------------

ACN 061 681 098

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.