Mining Projects

Australia is a leading producer of minerals for the world and produces some 22 minerals in significant amounts from more than 300 operating mines. Minerals are produced in all States and the Northern Territory, except the Australian Capital Territory where there are only quarries used to mine aggregate and other construction materials.

Australia’s largest export is minerals. In 2011, Australia’s energy and mineral commodity export rose to a record A$190 billion, a 15 per cent increase on the previous year signifying continued strong demand for minerals and commodities mainly from China, India, Japan and Korea.

Australia is in the top five mineral producers and has a large inventory of resources of most of the world’s key minerals commodities.

Australia is:
- the world’s leading producer of bauxite, alumina and zircon;
- the second largest producer of gold, iron ore, lead, zinc, lithium and manganese ore;
- the third largest producer of uranium; the fourth largest producer of nickel; and
- the fifth largest producer of aluminum, brown coal, industrial diamond and silver.

Australia also has the largest identified resources of lead, nickel, silver, uranium, zinc and zircon, and the second largest resources of bauxite, copper, gold, iron ore, niobium and tantalum. Australia’s lithium resources are ranked third, and black coal resources ranked fifth in the world.

Having abundant mineral resources, the Australian mining sector offers significant opportunities for investors. If you are interested, please contact us to discuss about these opportunities.

Mining Projects

Yarri Range Project

The Company is currently focusing on its Yarri Range Project development, comprising exploration license, E31/1121 which are prospective for gold exploration, located in the Eastern Goldfields of Western Australia, approximately 170 km northeast of Kalgoorlie around the Laverton Tectonic Zone.

The Project area is conveniently accessible via the Yarri/Pinjin Road running through the tenements and connects to the existing haul road network of the Eastern Goldfields and the Goldfields Highway.

The Project is situated in a place historically associated with gold mining activities.Independent studies of regional gold prospectivity have all indicated that the Yarri Range area has high prospectivity for discovering significant mesothermal (Archaean) gold mineralisation. The historical recovery of more than 500 kg of gold from surface workings (0 – 20 m) along the shear zone indicates the possibility for discovery of additional mineralisation at depth. Field and assay data have suggested the likely extension of gold mineralization at depth in the Yarri Range Project area.

Modern and systematic exploration approach will be implemented on the Project with the aim of determining a JORC Code mineral resource from target areas.

Former report

Figure 1 – Project Location
As a first phase of exploration undertaken by GFI a high level targeting exercise identified three distinct magnetic trends that persist through the project. The aircore drilling was designed to provide a first pass test across these targeted trends to test for geological controls and any gold anomalism (Figure 2).

Figure 2 – Program Proposal

RESULTS
Key findings from the drilling include (Figure 3 and Tables 1&2):
Assay results identified hole GAC012 as containing what is considered a strongly anomalous gold response. Assaying returned a result of 6m @ 40ppb Au (60‐66m) including 2m @ 59ppb Au (64‐66m).
The result was an “end of hole” result is interpreted to be part of a classic “interface gold dispersion halo” that can lead to the discovery of more significant oxide and primary gold mineralization.
The mineralisation was associated with a sheared sericitic altered volcaniclastic sediment containing minor quartz veining.
There are currently no constraints along strike to the north or south of this result and adjacent drilling is at least 200 metres away.

Figure 3 – Drilling Results

As previously reported (ASX announcement: June 2016 Monthly Report), a field mapping and sampling trip was completed at the Company’s Horse Rock Project, Western Australia. The aim of the field trip was:

1. Assess the fertility of potential source intrusions which may contain Gold or Base metal mineralisation
2. Sample possible source rocks within the project area
3. Sample Soil near old workings
4. Develop relationships with local pastoralists
5. Create an accurate track log for future work programs

In order to achieve these objectives several days were spent assessing access, meeting with the station owners, assessing the geology in the field and then undertaking a number of soil transects and rock chippings across key geological features and units.

Figure 1 -- Tenement map showing new applications (ELA31/1121 and ELA31/1122)

RESULTS

The most significant result was returned from an area of historical mining activity. Rock chip samples were collected and returned a best result of 14.9g/t Au. The importance of this result is the fact that ithighlights a regional shear zone that wraps around a granitoid intrusive. This setting is very similar to that at the nearby Porphyry Gold Deposit.

The shear zone that can also be seen in the airborne magnetic data extends for approximately 10km on the company’s tenements. An assessment of historical exploration data does not demonstrate that drilling has been undertaken at any point along the shear zone.

In addition to the shear zone target a series of “spot” magnetic features have been observed and are considered to be viable exploration targets that require further evaluation.

Figure 2 -- Target Summary Plan

Latest Report

RESULTS:

Horse RockProject, Western Australia(100%Owned) - Figure 1

13 aircore holes for 279m across two traverses were completed at the Bullet Prospect located within tenement E31/859. Assay results returned shallow, anomalous results in a series of holes as summarized below:
1. Conduct the first geological control inspection and gold anomaly test in the Bullet and Stark exploration areas in the E31/887 area.
2. Carry out infill and extended drilling in the Eastern Shear Zone (ESZ) in the E31/859 area where mineralization has been confirmed by GFI’s preliminary exploration.

The drilling was completed between December 13th and December 15th. The drilling work was carried out by Raglan Drilling Service Pty. Ltd. (Kalgoorlie) and managed by exploration consultancy OMNI GeoX Pty. Ltd. (Fermantle). The collected samples were sent to Intertek Genalysis Pty. Ltd. (Kalgoorlie) for gold analysis.

Figure 1 - Horse Rock Project - Land Occupancy and Gold Production

Exploration results:

BulletBullet Prospect - E31/859
13 aircore holes for 279m across two traverses were completed at the Bullet Prospect located within tenement E31/859. Assay results returned shallow, anomalous results in a series of holes as summarized below:

GAC014 – 4m @ 16ppb Au (16‐20m)

GAC017 – 16m @ 15ppb Au (12‐28m)

GAC018 – 2m @ 28ppb Au (20‐22m)

GAC043 – 4m @ 26ppb Au (16‐20m)

These anomalous results are associated with altered schists and the contacts between different lithologies as shown in Figures 3 & 4. Structurally modified contacts between lithologies are an excellent environment for gold deposition in the goldfields of W.A. Gold endowment has been proven along this trend with previously reported 14.9g/t rock chip and historical Dostmund workings totaling 72kg production.

Although the results are not considered ore grade, they do highlight two distinct mineralized horizons that will provide the focus for additional exploration. Most of these horizons are concealed below recent cover sequences (sheet wash, alluvium and colluvium), this would render traditional surface exploration techniques such as soil sampling and rock chipping ineffective, drilling beneath the cover will be required to further explore this zone.

Two areas have been identified within this trend for further exploration: firstly a magnetic high, highlighted in Figure 2, and secondly; closer to the granitic intrusion where theoretically, increasing structural complexity would be a more favorable environment for significant gold mineralisation – this setting is analogous to the nearby Porphyry Gold Deposit.

Eastern Shear Zone – E31/887
9 aircore holes for 605m were completed across three traverses at the Eastern Linear Trend Prospect within tenement E31/887. Drilling was infilling around the previously identified anomaly (GAC012 – 6m @ 40ppb) and also testing along strike for mineralisation continuity.

Assaying did not return any further significant results meaning. At this point, the primary source of mineralisation has not been identified, RC drilling would be needed to penetrate the fresh rock beneath the previously identified anomaly to identify the source.

StarkProspect – E31/859
10 aircore holes for 294m were completed at the Stark Prospect within tenement E31/859. Drilling was targeting a magnetic feature associated with an interpreted shear zone. Drilling intersected minor alluvial and colluvial cover sequences above a package of predominantly basaltic and mafic intrusive rocks with minor sediments. Very minor alteration and quartz veining was observed. A magnetite enriched mafic intrusive is interpreted as the magnetic feature that was targeted from geophysical imagery.

Assaying did not return any significant results. The regolith profile was noted to be thin, possibly ‘stripped’ and therefore the use of aircore drilling as an exploration technique at this prospect may not be effective as the technique relies upon the dispersion of mineralisation within the regolith to vector towards the primary source. The prospect will be further reviewed before any further exploration.

Figure 2 - Bullet District - Geological Map

NEW PROJECT ASSESSMENT

Given the prospectivity of the Horse Rock Project, the Company is looking to consolidate and expand its holdings in the region. A number of priority areas have been identified that will be reviewed and ranked prior to any open ground pegging or approaches to third parties.

Mining rights number

Mining rights status

Company

Number of blocks

Area (square kilometers)

Approval date

Expiration date

E3100887

LIVE

GFI

23.48

2011.2.15

2021.2.14

E3100859

LIVE

GFI

32.36

2010.7.15

2020.7.14

E3101147

LIVE

GFI

35.79

2017.9.20

2022.9.19

E3101121

PENDING

GFI

154.9

To be determined

E3101122

LIVE

GFI

155.2

2018.4.1

2023.1.3

Latest report for May 2017

Highlights of exploration activities
·EL31/859The first phase goal is completed
·Cuttings sampling plan setting
·Regional scale project data compilation and review

Horse Rock Project – Western Australia

Global Fortune Investments Co., Ltd. (GFI) is pleased to inform that the first phase exploration target of EL31/859 has been successfully completed (Figure 1). This objective is part of GFI's exploration strategy to develop models of metal zoning and change in highly anomalous areas along the Yarri Gold Trend and porphyry deposits. A very significant magnetic anomaly has been identified in the western part of the area. The target area was detected as extending from the granite area and where two historic works have occurred (Yarri and Dostmund) (Fig. 2). A planned lithic sampling project will attempt to highlight anomalies in the reconstructed rock profile and allow vectorization of primary mineralization.

Renewal plan

· Initial project planning and sampling prospects for lithic reconnaissance, collection of altered samples for spectral reflectance measurements, petrology and multi-element geochemistry studies.
· Focus on mapping and change sampling based on the results of the reconnaissance project.
· Conduct detailed remote sensing and geophysical surveys and related variability studies based on preliminary exploration results.

As of May 2017, three exploration lease applications are progressing smoothly and are expected to be implemented in the second half of this year. GFI will hold an expected land area of 400.1 square kilometers. Once approved, the precinct will be adjacent to major ASX gold producers Saracen Gold Ltd and St Barbara Ltd.

Figure 1 – Horse Rock Project – 1: 100k Geology and Total Magnetic Intensity (TMI) Anomaly Area
The blue line area is the GFI approved area
The black dotted line area is the GFI application area

Figure 2 – Yarri EL31/859 - 1: 100k Total Magnetic Field Intensity (TMI) Dostmund Anomaly
The blue line area is the GFI approved area
The black dotted line area is the GFI application area

Mt Oscar Project

Large iron ore assets located in major hubs

Projects with actual development potential to produce salable iron concentrate products (>60%Fe)

Main features

Located in the heart of the Pilbara, approximately 40 kilometers from the port, with the necessary infrastructure

Sustainable, independent tonnage: current exploration target is 300-500 million tons, resources containing 31-37% Fe

Mt Oscar main mining area 300-500 million tons*

Higher grade iron ore than other nearby magnetite projects

There are opportunities for capital allocation, i.e. starting with 5 million tonnes/year of iron ore concentrate or blast furnace sinter

Lower capital cost advantages for off-site services and logistics

Lower initial stripping ratio, such as 1:1

The quality of iron concentrate can be further improved to produce iron concentrate products (66%Fe) for pellets.

The exploration potential of rising iron ore resources is huge

Has the potential to produce 8 million to 10 million tons/year of iron concentrate powder

The project is strategically located and has existing, under-construction and to-be-constructed infrastructure.

About 30 kilometers from the coast and port

20 kilometers from natural gas pipeline – undeveloped offshore gas field

15 kilometers from the Pilbara power grid

10-15 kilometers from water source

5-15 kilometers from the highway

Approximately 40 kilometers from the town of Karratha – airport and services

Natural gas, electricity and other infrastructure planned to be developed nearby

5,000 kilometers from the Asian market

Project Economic Assessment*

Production50010,000 tons/year grade66%FeIron powder, running20years of mines
• Total investment: US$1.113 billion (including magnetic separation plant, workers’ village, natural gas power plant, slurry and return water transportation pipeline)
• Operating expenses: US$48.71/ton of concentrate - including US$21.22/ton of concentrate for mining, crushing and beneficiation
21.2 USD/ton of concentrate;
• Produces 5 million tons of concentrate/year, with a concentrate yield (weight recovery rate) of 30% and a grinding fineness of 25µm accounting for 80%;
• The concentrator contains ball mills, tower mills and flotation circuits to produce salable iron ore concentrates.

financial analysis
• Iron ore price: long-term US$125/ton and 12.5% price discount, based on 100% equity
• Net present value (NPV): US$838 million;
• Internal rate of return (IRR): 22.7%;
• Iron ore price: long-term US$125/ton and 12.5% price discount, 30% equity, 8% debt interest rate
as a basis
• Net present value (NPV): US$1.031 billion;
• Internal rate of return (IRR): 47.4%.
*This work was completed by Australian professional company ProMet Engineers in May 2012. All parameters are based on current data, and the exchange rate of the Australian dollar against the US dollar is 1:1