(Exploration Only) South Greta - EL006214 Schedule 8 Information

Note: This is exclusively an exploration licence. No mining activities will take place in this area.

MINERAL RESOURCES (SUSTAINABLE DEVELOPMENT) (MINERAL INDUSTRIES) REGULATIONS 2013 – SCHEDULE 8

Schedule 8—Information required in notice of application for an exploration licence or retention licence

Regulations 20, 23 and 40

Part 1:

Applicant: Tamas Kapitany

Address: 13 Olive Rd, Devon Meadows, Victoria 3977

Contact phone number and email address

Cameron McKenzie- Tenements Manager
(03) 5998 2493 mining@crystal-world.com

Part 2 of this Schedule is published on http://www.crystal-world.com/lapidary-gems-and-minerals/mining/

Details of the application:

Exploration Licence no. EL006214

Locality: South Greta, Victoria

Size: 11.051 km

Date of the application: 16 May 2016

Outline of the proposed program of work:

Ground exploration activities limited to hand sampling of target mineral (Turquoise) using simple hand tools (hand picks, shovels, chisels etc). No machinery will be used extraction. Year 1: initial site visit, desktop survey, hand sampling. Years 2-4: Continued desktop surveys, geological mapping and hand sampling of existing outcrops and mine dumps. Year 5: Final site visit to determine overall economic viability for further extraction under a mining lease

Any person may object within 21 days to the grant of this application under section 24 of the Mineral Resources (Sustainable Development) Act 1990. A person who objects must put the objection in writing, include the grounds on which it is made and send The Manager, Earth Resources Department of Economic Development, Jobs, Transport and Resources, GPO Box 2392, Melbourne VIC 3001 within 21 days after the latest date on which the application was advertised.

Subject to other statutory requirements being satisfied, an exploration licence, if granted, entitles the holder of the licence to explore and search for minerals in the relevant application area, but does not entitle the holder to undertake mining activities as defined under the Mineral Resources (Sustainable Development) Act 1990.

Further information regarding the statutory requirements that must be complied with prior to work being undertaken on a licence, including landowner and occupier consent requirements, is available on the Department’s Internet site: http://www.energyandresources.vic.gov.au/earth-resources-regulation/information-for-community-and-landholders.

EL006214

Map of EL006214

Part 2:

1.     Details of the proposed program of work on the licence.

The nature of office-based activities within the program proposed

Office based activities will be limited to desktop surveys of the area, administration and reporting of the tenement and writing of geological reports for assessment of explorations licences economic viability.

The nature of all on-ground exploration activities (including, for example, geological mapping, geophysical surveys etc)

Ground exploration activities will be limited to hand sampling of target mineral (Turquoise) using simple hand tools (hand picks, shovels, chisels etc). No machinery will be used for target mineral extraction of the course of this exploration licence. Basic geological mapping and visual flora/fauna surveys will also occur during site visits to better understand both the geological and biological factors of the area.

The nature of all sub-surface activities (including, for example, drilling, bulk sampling, mineralogy, etc)

There will be no sub-surface drilling or surveying over the course of this licence. All extraction will be limited to hand sampling of existing dumps and currently outcropping geology. There will be no disturbance to native flora or fauna or alternation of any watercourses.

A description of the nature of the targets that the program seeks to delineate

The target mineral commodity is Turquoise. Turquoise is a copper/aluminium based phosphate mineral forming as a secondary mineral post weathering or oxidation due to fluid infiltration and mineral leaching of other minerals, such as chalcopyrite or azurite. Turquoise is extracted for use as a gem or semi-precious stone within the lapidary markets. Prized for its blues and greens, Turquoise has been mined for centuries by many ancient cultures.

As far as practicable, an indication of the location and focus of the proposed exercises with location maps

Primary initial exploration will be centred on the historic diggings located within the proposed licence areas (see figure 1).

A description of the geological rationale behind the proposed program

Historical mining and modern fossicking of the area by local collectors has confirmed the existence of Turquoise within the area. The exploration project will assess the current outcrops and historic mine dumps for Turquoise quality and mineralisation extent. To this end, basic geological surveying using hand tools for sampling will be the only required method needed.

A proposed timing schedule for the exploration program

The exploration program will proceed as follows:

Year 1: initial site visit, desktop surveys of regional and local geology, hand sampling of licence area. Tenement reporting and creation of geological reports for site analysis.

Years 2-4: Continued desktop surveys to uncover historical mining data, local flora/fauna, geological and ground data. Site visits to undertake geological mapping and hand sampling of existing outcrops and mine dumps from historic mining activities. Tenement reporting and creation of geological reports for site analysis.

Year 5: Final site visit to undertake final geological visual surveys and confirm which areas have the highest economic potential based on 5 year licence term. Determine overall economic viability of the project and whether it is viable to apply for a mining Lease over the area. If it is determined to be economically viable, an application for a mining Lease will be lodged with the department and prescribed fee paid.

2.     A description of the applicant’s systems for managing impacts of the proposed work on the community (including landowners and occupiers) and the environment.

Proposed works are very low risk and will not involve any noise pollution or damage to the area. No machinery will be used over the life of this Exploration Licence. The applicant will regularly communicate with the landholder via phone and email regarding site works and planning of future site works. Annual site updates and contact details will be published and made available on our website (http://www.crystal-world.com/mining/) and at a facility to be determined within the township of South Greta.

3.     An outline of how the applicant intends to meet a licensee’s obligations under section 39A of the Act to consult with the community (including landowners and occupiers).

Under section 39A of the Mineral Resources (Sustainable Development) Act 1990, the applicant will provide information relating to the current status of the licence which may affect the community. This will be achieved by annual site updates and contact details being published on our website (http://www.crystal-world.com/mining/) and at a facility to be determined within the township of South Greta.

Any member of the community wishing to express their views about the activities being/ or planned to be undertaken on this exploration licence is encouraged to contact our Melbourne office via email (mining@crystal-world.com), phone (03 5998 2493) or post (13 olive rd. Devon Meadows, Victoria 3977).