EXPLORATION UPDATE CENTRAL PLAINS VACUUM DRILLING PROGRAM MUSGRAVE PROJECT,SA

Sampling techniques

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Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

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Vacuum Soil Drilling - Geochemical sampling.

Grab sample of bottom of hole (BOH) drill spoil cuttings recovered from vacuum drill hole. Sample material commonly includes the 90cm of material directly overlying drill refusal (where the drill bit is unable to penetrate further. Samples commonly consist of 1-2 kg of cuttings

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Include reference to measures taken to ensure sample representivity and the

appropriate calibration of any measurement tools or systems used.

Aspects of the determination of mineralisation that are Material to the Public

Report.

In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m

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Samples are reconnaissance in nature.

Ideal samples will represent the transported material directly overlying weathered bedrock.

Loose sands may dilute sample (uncommon)

Soil moisture may reduce sample recovery (uncommon)

samples from which 3 kg was pulverised to produce a 30 g charge for fire

assay'). In other cases more explanation may be required, such as where

there is coarse gold that has inherent sampling problems. Unusual

commodities or mineralisation types (eg submarine nodules) may warrant

disclosure of detailed information.

Drilling

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Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast,

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Vacuum Soil (regolith) Drilling - Geochemical sampling. 3' tungsten open

techniques

auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard

hole cutting bit. 30 psi vacuum suction extracts cuttings from bit face through

tube, depth of diamond tails, face-sampling bit or other type, whether core is

1.5' rod string and accumulates cuttings in 5 litre collection vial. 90cm

oriented and if so, by what method, etc).

sample piles laid out sequentially on tarpaulin.

Drill sample

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Method of recording and assessing core and chip sample recoveries and

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Volume of cuttings commonly 2x 5 litre vial per 1.8m drill rod. Thus each

recovery

results assessed.

sample pile represents 90cm of penetration.

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Measures taken to maximise sample recovery and ensure representative

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Sample recovery effected by moisture or impenetrable clay/rock (ie refusal) .

nature of the samples.

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Whether a relationship exists between sample recovery and grade and

whether sample bias may have occurred due to preferential loss/gain of

fine/coarse material.

Logging

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Whether core and chip samples have been geologically and geotechnically

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Regolith cover sequence is recorded.

logged to a level of detail to support appropriate Mineral Resource estimation,

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Rock chips / weathered rock chips identified at BOH recorded & logged as

mining studies and metallurgical studies.

representing underlying stratigraphy.

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Whether logging is qualitative or quantitative in nature. Core (or costean,

channel, etc) photography.

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The total length and percentage of the relevant intersections logged.

Sub-sampling

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If core, whether cut or sawn and whether quarter, half or all core taken.

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Samples are taken as grab of vacuum cutting pile/s commonly from the

techniques and

sample

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If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

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bottom of hole interval.

Samples are dry (otherwise no recovery)

preparation

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For all sample types, the nature, quality and appropriateness of the sample

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Due to regolith variability & reconnaissance nature of regolith testing no

preparation technique.

QA/QC is undertaken.

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Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

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Sample interval depths approximated to closest decimetre

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Measures taken to ensure that the sampling is representative of the in situ

material collected, including for instance results for field duplicate/second-half

sampling.

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Whether sample sizes are appropriate to the grain size of the material being

sampled.

Quality of

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The nature, quality and appropriateness of the assaying and laboratory

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Regolith geochemical analysis undertaken by ALS Adelaide

assay data and

laboratory tests

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procedures used and whether the technique is considered partial or total.

For geophysical tools, spectrometers, handheld XRF instruments, etc, the

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4 acid digest, broad 36 element suite and analytical techniques appropriate for detecting styles of mineralisation sought.

parameters used in determining the analysis including instrument make and

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Standard laboratory QA/QC

model, reading times, calibrations factors applied and their derivation, etc.

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Nature of quality control procedures adopted (eg standards, blanks,

duplicates, external laboratory checks) and whether acceptable levels of

accuracy (ie lack of bias) and precision have been established.

Verification of

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The verification of significant intersections by either independent or

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After extensive experience analysing vacuum soil samples across the

sampling and

alternative company personnel.

Musgrave Region, and evaluation of previous robust field QA/QC (field

assaying

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The use of twinned holes.

duplicates and certified standards-blanks) the company does not consider the

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Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

continued application of such measures critical due to the reconnaissance

nature of the current sampling program.

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Discuss any adjustment to assay data.

Location of

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Accuracy and quality of surveys used to locate drill holes (collar and down-

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Vacuum drill collars recorded using hand held Garmin 76 GPS.

data points

hole surveys), trenches, mine workings and other locations used in Mineral

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Coordinate system MGA94 (Zone 52) / WGS84 datum

Resource estimation.

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Topographic control from publicly available digital terrain model (Circa 2002 -

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Specification of the grid system used.

PIRSA)

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Quality and adequacy of topographic control.

Data spacing

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Data spacing for reporting of Exploration Results.

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Nominal 1km spaced traverse lines across selected regional stratigraphic

and distribution

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Whether the data spacing and distribution is sufficient to establish the degree

magnetic targets. Hole spacing at 200m and 100m centres.

of geological and grade continuity appropriate for the Mineral Resource and

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Traverse lines positioned to minimise environmental disturbance.

Ore Reserve estimation procedure(s) and classifications applied.

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Traverse lines positioned in consideration of heritage approvals

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Whether sample compositing has been applied.

Orientation of

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Whether the orientation of sampling achieves unbiased sampling of possible

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Traverse lines nominally perpendicular to regional stratigraphic trends

data in relation

to geological structure

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structures and the extent to which this is known, considering the deposit type.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this

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Positioning of sample traverse lines considered appropriate for regional reconnaissance activities

should be assessed and reported if material.

Sample

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The measures taken to ensure sample security.

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Samples collected and held in custody at the companies remote field camp.

security

Samples delivered by hand to ALS distribution facility in Alice Springs and

thence in custody of ALS sample security protocol.

Audits or

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The results of any audits or reviews of sampling techniques and data.

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Not Applicable

reviews

Mineral tenement and land tenure status

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Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures,

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Results are contained within Caroline tenement EL5220 in the central Musgrave

Province of South Australia. EL5220 is held 100% by NiCul Minerals Limited

partnerships, overriding royalties, native title interests, historical sites,

(wholly owned subsidiary of PepinNini Minerals Ltd)

wilderness or national park and environmental settings.

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PepinNini Minerals Ltd has a Deed of Exploration with Anangu Pitjantjatjara

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The security of the tenure held at the time of reporting along with any

Yankanyatjarra covering exploration access to the tenement in accordance to

known impediments to obtaining a licence to operate in the area.

the APY Land Rights Act.

Exploration done by other

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Acknowledgment and appraisal of exploration by other parties.

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No modern exploration has been undertaken at the program area.

parties

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PepinNini Minerals has explored the northern portions of the licence area

utilising multi disciplinary mineral exploration techniques (airborne geophysics,

ground geophysics, Vacuum soil drilling, diamond core drilling) in the vicinity of

the Caroline mafic Intrusion.

Geology

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Deposit type, geological setting and style of mineralisation.

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PepinNini is exploring for magmatic Ni-Cu sulphide systems related to mafic

intrusions of the 1070Ma Giles Event. The project is also prospective for base

metal and precious metal mineralisation within the mesoproterozoic crustal rocks

and associated structural architecture.

Drill hole Information

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A summary of all information material to the understanding of the

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Vacuum soil drilling is reconnaissance in nature. Hole easting and northing

exploration results including a tabulation of the following information for

locations are recorded with stand alone Garmin 76 GPS (+/- 5m). Vacuum hole

all Material drill holes:

elevation (RL) are extrapolated from historic digital elevation models capture

o easting and northing of the drill hole collar

when digital ortho-photos were flown in 2002 (PIRSA).

o elevation or RL (Reduced Level - elevation above sea level in

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Vacuum soil drill holes are approximately vertical.

metres) of the drill hole collar

o dip and azimuth of the hole

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Down hole measurements are estimated to closest decimetre using conventional metric tape measure.

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o down hole length and interception depth

o hole length.

If the exclusion of this information is justified on the basis that the

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Hole lengths are extrapolated from measurement of rod sections used to penetrate the cover sediments.

information is not Material and this exclusion does not detract from the

understanding of the report, the Competent Person should clearly explain

why this is the case.

Data aggregation methods

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In reporting Exploration Results, weighting averaging techniques,

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Sample results of reconnaissance nature and relate to individual sample assays.

maximum and/or minimum grade truncations (eg cutting of high grades)

There is no aggregate of results.

and cut-off grades are usually Material and should be stated.

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Where aggregate intercepts incorporate short lengths of high grade

results and longer lengths of low grade results, the procedure used for

such aggregation should be stated and some typical examples of such

aggregations should be shown in detail.

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The assumptions used for any reporting of metal equivalent values

should be clearly stated.

Relationship between

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These relationships are particularly important in the reporting of

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Vacuum drilling holes are vertical and penetrate soft and friable cover sediments

mineralisation widths and intercept lengths

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Exploration Results.

If the geometry of the mineralisation with respect to the drill hole angle is

and soils. Sample depth intervals are approximated to +/- 0.1m.

known, its nature should be reported.

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If it is not known and only the down hole lengths are reported, there

should be a clear statement to this effect (eg 'down hole length, true

width not known').

Diagrams

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Appropriate maps and sections (with scales) and tabulations of intercepts

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Regional geological map and Ni-Cu occurrences are provided in Figure 1

should be included for any significant discovery being reported These

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Tenement and prospect scale maps showing the location of activities are

should include, but not be limited to a plan view of drill hole collar

provided as Figures 2 & 3.

locations and appropriate sectional views.

Balanced reporting

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Where comprehensive reporting of all Exploration Results is not

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No previous mineral exploration has been undertaken across the Central Plains

practicable, representative reporting of both low and high grades and/or

program area.

widths should be practiced to avoid misleading reporting of Exploration

Results.

Other substantive exploration

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Other exploration data, if meaningful and material, should be reported

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Historic airborne magnetic data and digital aerial photography cover the program

data

including (but not limited to): geological observations; geophysical survey

area.

results; geochemical survey results; bulk samples - size and method of

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No other mineral exploration has been undertaken across the program area.

treatment; metallurgical test results; bulk density, groundwater,

geotechnical and rock characteristics; potential deleterious or

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The grid system used is GDA94 zone 52

contaminating substances.

Further work

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The nature and scale of planned further work (eg tests for lateral

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Follow up infill vacuum soil drilling (max depth 30m) has been undertaken with

extensions or depth extensions or large-scale step-out drilling).

further assay results awaited. Airborne electromagnetic surveying is planned.

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Diagrams clearly highlighting the areas of possible extensions, including

the main geological interpretations and future drilling areas, provided this

information is not commercially sensitive.