091105 Woodlawn Technical Report Draft 2 - Heron Resources … · 2018. 12. 14. · 2 BACKGROUND OF WOODLAWN EXPLORATION PROGRAMME Tri Origin’s Woodlawn exploration tenements host

Thursday 5 November 2009 Page 1

ASX RELEASE

About Tri Origin (ASX:TRO) Tri Origin Minerals Ltd (ABN 22 062 002 475) (“Tri Origin”) is an Australian resources company, which will become a significant explorer, developer and producer of base and precious metals. The Company holds a significant land position at Woodlawn near Goulburn, in the Lachlan Fold Belt region of New South Wales, Australia, where its two main mineral resource assets – the Woodlawn Retreatment Project and the Woodlawn Underground Project, are located. The Company also holds a portfolio of advanced and early stage exploration prospects, including the Lewis Ponds poly-metallic prospect, located near Orange in the Lachlan Fold Belt.

The Company has in excess of 28 million tonnes (Mt) of Mineral Resources, including the JORC compliant Mineral Resources of the Woodlawn Retreatment Project (11.7 Mt), Woodlawn Underground Project (10.1 Mt), and the Lewis Ponds Project (6.6 Mt). The in situ metal value of the Company’s resource portfolio is dominated by zinc and copper with the balance attributable to lead, gold and silver.

Tri Origin Minerals Ltd ABN 22 062 002 475

Level 3, 50 Park Street Sydney NSW 2000

Australia Phone (61 2) 9267 8000 Fax (61 2) 9267 8066

www.trioriginminerals.com.au

______________________________________________

DRILLING TO COMMENCE IN NOVEMBER ON

WOODLAWN EXPLORATION PROGRAMME ___________________________________________________

Key Points

• Tri Origin will shortly commence an initial

exploration drilling programme of up to 3,500

metres of diamond and reverse circulation drilling

and associated exploration, such as down hole

electro-magnetics, directly targeting interpreted

extensions of existing lenses and also testing parts

of the prospective trend of host units near the former

Woodlawn mine.

• Negotiations are well advanced on securing the

services of an experienced drilling contractor and

work on the Woodlawn site is expected to

commence in the latter part of November 2009.

• An independent technical assessment of Tri Origin’s

proposed exploration programme at Woodlawn has

been completed by independent geological

consultancy GeoRes, and an NI 43-101 compliant

Technical Report on the exploration programme has

been published on the Company’s website

www.trioriginminerals.com.au.

• The Technical Report (Refer to Attachment 1 for

reproduction of Executive Summary) strongly

confirms Tri Origin’s assessment that the potential is

high for increasing the Mineral Resource inventory

at Woodlawn by undertaking an exploration program

to find extensions and repetitions of the known

underground lenses at Woodlawn and in the

Woodlawn Region.

2

BACKGROUND OF WOODLAWN EXPLORATION PROGRAMME Tri Origin’s Woodlawn exploration tenements host the site of the former Woodlawn Zinc-Copper Mine and are located approximately 250km south west of the Sydney, NSW and some 50km north east of the national capital, Canberra, in the ACT. The Woodlawn Mine was closed in 1998 and Tri Origin acquired mineral rights to the property shortly afterwards with the view to determining the remaining Mineral Resources. Since acquiring access to the Woodlawn property, Tri Origin has completed projects to estimate Resources (in accordance with JORC1 standards) contained in the old tailings dams and remaining in-situ around the former underground mine workings. The Company has examined the potential to retreat the existing tailings in a purpose-built processing facility (the Woodlawn Re-treatment Project or “WRP”). It has also examined the potential to reopen the underground mine and produce zinc, copper and lead concentrates. The WRP feasibility study which was completed in June 2008, defined a finite (due to the fixed volume of tailings on the property) Mineral Resource, and sufficient mine operating details including capital and operating costs were determined to enable a development decision to be taken (subject to commercial outcomes, including financing and marketing of concentrates, being achieved). The study of the potential for an underground operation also resulted in the definition of a Mineral Resource. The size of the Mineral Resource and the potential for conversion from Mineral Resources to Ore Reserves was not considered to be sufficiently great to justify the development of a full underground mining project at the time that feasibility work was suspended. However, as the deposit had not been “drilled out”, the potential to increase the known underground Mineral Resources through further exploration drilling, was considered to be high. Recently acquires geological understanding of the mineralization controls within the property have indicated a number of potentially good exploration targets. The Company now plans to commence work to increase the Mineral Resource inventory at Woodlawn by undertaking an exploration programme to find extensions and repetitions of the known underground lenses at Woodlawn and in the Woodlawn Region (the “Exploration Programme”). This will be implemented through drilling from surface. Targeting will rely on the existing detailed mineralization models in conjunction with the new insights into the geological rock type package controls on mineralization and its repetition. Targeting will be supplemented with reinterpretation of surface geophysical and mapping data and the feedback from the down hole geophysics to be undertaken in the new drill holes. In summary, the Woodlawn Exploration Programme aims to identify additional mineralisation from which additional high grade Mineral Resources can be delineated at Woodlawn.

1 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC

code’), 2004 Edition, JORC (of AusIMM, AIG & MC), December 2004.

3

THE WOODLAWN EXPLORATION PROGRAMME Proposed Near-Mine Exploration With the objective of finding extensions and repetitions of the known underground lenses at Woodlawn, targets have been determined using information from the original geological models created during the Mineral Resource estimation work as a basis to incorporate more recent geological model interpretations. (Refer to Attachment 2 for diagrammatic representation of potential drill targets.) An initial drilling program of up to 3,500 metres of diamond and reverse circulation drilling and associated exploration, such as down hole electro-magnetics, and additional geological work is planned. The drilling will directly target interpreted extensions of existing lenses and also test parts of the prospective trend of host units in the near mine environment. Additional work is also planned in relation to ongoing 3D modeling, where existing drill hole and surface geological mapping can be used to expand the 3D geological and structural model, especially north and south of the Woodlawn deposit. Concurrent with this process, geophysical datasets will be modeled in 3D where appropriate with particular emphasis being given to inversion modeling of the historic IP. This data can then be combined with the results of later ground magnetic and electromagnetic surveys that are also planned. It is also planned to conduct geochemical work on existing drill core to assist in future exploration work by geochemically profiling the prospective host units and alteration assemblages as possible vectors towards ore. Proposed Regional Exploration Tri Origin also considers that considerable opportunity exists for additional discoveries in the region surrounding the former Woodlawn Mine. Targets are currently being generated by the Company’s technical team and these will be systematically evaluated upon completion of the current drilling programme. PROPOSED EXPLORATION PROGRAMME BUDGET Tri Origin plans to implement the proposed exploration program as soon as practicable, within existing funding constraints. It is likely that expenditure on the exploration programme will be progressively committed, commencing with the awarding of an exploration drilling contract in the near future. A breakdown of the anticipated budget as outlined in the Technical Report is presented in the following table. This budget takes into account the work to be conducted during the current exploration programme, and subject to results, follow-up drilling and additional surface exploration.

4

Exploration activity Cost ($)

Drilling 800,000 Down hole EM geophysical surveys 35,000 Geophysical data processing and interpretation 15,000 Geological data processing and interpretation 25,000 Assays 25,000 Structural geology interpretation 10,000 Personnel 80,000 Administration 10,000

Total 1,000,000

PROPOSED EXPLORATION SCHEDULE The exact schedule for undertaking the Exploration Programme will be dependent on the progressive results achieved by the work programme. It is expected that work on the Woodlawn site will commence on or about the end of November 2009. Based on current projections (which as noted above are subject to change) the full work programme will take approximately 6 months to fully implement.

Declaration and JORC Compliance

The information in this release that relates to Mineral Resources or Ore Reserves is based on information compiled

by Robin Rankin, a Member of the AusIMM, and registered as a Chartered Professional Geologist (CPGeo). Robin

Rankin is Principal Consulting Geologist and operator of GeoRes. He has sufficient experience relevant to the style

of mineralization and type of deposit under consideration, and to the activity which he is undertaking, to qualify as a

Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results,

Mineral Resources and Ore Reserves’ (the JORC Code). He consents to the inclusion in the release of the matters

based on his information in the form and context in which it appears.

For Clarification of this Announcement visit our Website: www.trioriginminerals.com.au

Or Telephone: Dr Robert Valliant – Executive Director on +61 (0)2 9267 8000 (Sydney) or on

+1 905 727 1779 (Toronto); or

Mr Jeff Quartermaine – Executive Director, Chief Financial Officer & Company Secretary on

+61 (0)2 9267 8000

ATTACHMENT 1

5

Woodlawn Exploration Project

- Technical Report (NI 43-101)

Effective 9

th October 2009

On mineral exploration at the Woodlawn property for

Tri Origin Minerals Ltd

Woodlawn is near Tarago in the state of New South Wales, Australia, and is on

Special Mining Lease 20

Report for

Tri Origin Minerals Ltd

By principal author and Qualified Person

Robin Rankin

MAusIMM CPGeo

GeoRes

Project

GR1005

ATTACHMENT 1

6

Summary

The Summary of this technical report on the Woodlawn mineral property in Australia for Tri

Origin Minerals Ltd (Tri Origin, TRO or the Company) is sub-divided into the following

sections for clarity:

• Overview – a synopsis of this exploration project and its precursors; the immediate

exploration intentions; and a background introduction to the report and the principal

author.

• Property location, mineral tenure, and tenure ownership.

• Geography – topography, access, proximity to population and transport, climate,

infrastructure for mining.

• History – exploration and mining history, including past production.

• Geology – regionally and locally; the mineral deposit types; mineralisation of the deposits;

and underground ore lenses.

• TRO’s underground geological model – recent advances in understanding of geological

controls on mineralisation.

• Project review – of the status of the TRO projects on the tailings and underground aspects

of the property – and the implications and drivers for the current exploration project.

• Tailings Resource Project – overview and estimated Mineral Resources of the material in

the old mine tailings dams on the property.

• Tailings Mining Project – overview of mining and mineral processing type studies of the

tailings.

• Underground Resource Project – overview and estimated Mineral Resources of the

remaining mineralisation around the old underground mine on the property.

• Underground Mining Project – overview of mining and mineral processing type studies of

the underground mineralisation.

• Interpretation and conclusions.

• Recommendations to explore – objectives, recommendations, and an exploration program

(with costs).

• Code declarations – for JORC compliance and CIM reconciliation.

Overview

THE WOODLAWN ZINC COPPER PROJECTS

The Woodlawn Zinc Copper Projects (the Project) are located on a property containing the old zinc/copper/lead Woodlawn Mine (the Woodlawn Property) in the state of New South Wales, Australia. The old mine was closed in 1998 and TRO acquired mineral rights to the property shortly afterwards with the view to determining the remaining Mineral Resources. Since acquiring access to the Woodlawn property the Company has completed projects to estimate Resources (in accordance with JORC2 standards, and described below) contained in the old tailings dams (the Tailings Resource Project) and remaining in-situ around the old underground mine workings (the Underground Resource Project).

2 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC

code’), 2004 Edition, JORC (of AusIMM, AIG & MC), December 2004.

ATTACHMENT 1

7

The Company has also examined the potential to retreat the existing tailings in a purpose-built processing facility (the Tailings Mining Project (or also the WRP for Woodlawn Re-treatment Project). It has also examined the potential to reopen the underground mine and produce zinc, copper and lead concentrates in a new processing plant (the Underground Mining Project (or also the WUP for Woodlawn Underground Project). It was considered possible that the two projects could use very similar processing circuits (a conventional base metal concentrator) for mineral recovery and so could potentially be integrated. Bankable feasibility studies of the Tailings Mining Project and the Underground Mining Project were not completed before economic conditions altered the economics of the projects late in 2008. Prior to that, it had been assumed that mining and processing of the tailings could commence on a short term stand-alone basis, providing time and capital to develop the Underground Mining Project. The Tailings Resource Project had defined a finite (due to the fixed volume of tailings on the property) Mineral Resource. And the Tailings Mining Project had generated sufficient mine operating details and costs to consider that completed exploration and development work was adequate to enable a development decision to be taken (subject to a number of commercial outcomes, including financing and marketing of concentrates, being successfully achieved). The Underground Resource Project and the Underground Mining Project also resulted in the definition of a Mineral Resource and the generation of knowledge on a potential mining operation. The size of the Mineral Resource and the potential for conversion from Mineral Resources to Ore Reserves was not considered to be sufficiently great to justify the development of a full Underground Mining Project at the time that feasibility work was suspended. However, as the deposit has not been “drilled out” the known underground Mineral Resources has the potential to be increased through further exploration. New geological understandings of the mineralization controls have immediately indicated potentially good exploration targets.

EXPLORATION INTENTIONS

Consequently the Company’s objectives are now to increase the Mineral Resource inventory at Woodlawn by undertaking an exploration program to find extensions and repetitions of the known underground lenses at Woodlawn and in the Woodlawn Region (the Exploration Project). This will be implemented through drilling from surface. Targeting will rely on the existing detailed mineralization models in conjunction with the new insights into the geological rock type package controls on mineralization and its repetition. Targeting will be supplemented with reinterpretation of surface geophysical and mapping data and the feedback from the down hole geophysics to be undertaken in the new drill holes. In summary, the Exploration Project aims to identify sufficient additional Mineral Resources to economically justify re-opening an underground mine and processing operation at Woodlawn.

BACKGROUND TO THIS REPORT

Tri Origin Minerals Ltd (Tri Origin, TRO, or the Company), is an Australia based mineral exploration company, and has been exploring its Woodlawn property for base metals. TRO intends to shortly apply for a listing on the Toronto Stock Exchange (TSX), and this report (the Technical Report) on the project, to Canadian National Instrument 43-101 (NI 43-101, or the Instrument) specifications, fulfils its obligations on standards of disclosure for mineral projects. This report of September 2009 has been prepared by the independent geological consultancy GeoRes. Its Principal Consulting Geologist, Mr Robin Rankin, is the principal author and a

ATTACHMENT 1

8

Qualified Person under the Instrument. He is independent of the Company within the meaning of the Instrument (Section 1.4 of the Instrument and under Section 3.5 of the Companion Policy to the Instrument in its Standards of Disclosure for Mineral Projects).

Location, mineral tenure & ownership

LOCATION

The Woodlawn Exploration Project is located at the site of the old Woodlawn Mine in the south eastern part of the state of New South Wales (NSW) on the eastern seaboard of Australia. The old mine is located some 250km south west of the NSW capital Sydney, and some 50km north east of Canberra, the national capital, in the Australian Capital Territory (ACT). Figures in Section 4 illustrate the location.

MINERAL TENURE

Mineral tenure specifically hosting the Exploration Project is a Special Mining Lease (SML 20) covering the immediate area of the old mine and its adjacent treatment and tailings facilities. The project will occur entirely within SML 20. The Exploration License (EL 7257) that surrounds SML 20 would support regional exploration.

TENURE OWNERSHIP

TRO holds a 100% interest to the mineral rights in SML 20. This interest is not currently held directly by TRO. This arrangement stems from the history at the site since the mine was closed by the owners Denehurst Ltd (Denehurst) in 1998. In 1999 TRO agreed with the administrators of Denehurst to acquire all data and 100% rights to minerals within the lease, and for the lease title registration to be transferred to TRO at a future development decision date. Concurrently the surface rights to the mine were obtained by a waste management company, Collex Pty Ltd (Collex), now known as Veolia Environmental Services (Australia) Pty Ltd (Veolia). Veolia now operates a bioreactor and waste management facility within the old open cut mine. TRO has since signed agreements with Veolia to ensure each party harmonious access to the site; to provide an option for the TRO to acquire relevant surface rights; and for the eventual full transfer of the SML 20 title to the TRO. On November 24, 2009 TRO applied to have the title to SML 20 transferred from Denehurst to Tarago Operations Pty Ltd (TOP, and named after the nearby town), a wholly owned subsidiary of TRO. Tri Origin Mining Pty Ltd (TOM), a wholly owned subsidiary of TRO, holds Exploration Licence 7257, which provides TRO with the right to explore for certain minerals in the licence area. SML 20 is due to expire in November 2014, and EL 7257 is due to expire in November 2010.

Geography

The surface topography in the Property is that of wide flattish valleys separated by low rounded hills. Except for small areas of disturbances resulting from the past mining operations the region is either native bushland or cleared or semi-cleared pastures for agriculture. The mine area is on the south west side of a wide valley, sloping gently eastwards. Access to the mine site is via good quality sealed roads, and a rail head is located within 10km of the mine site at the nearest village called Tagago. The large regional cities of Canberra and Goulburn are each located approximately 50km away. Climate is mild, and would allow all year mining operations. Good infrastructure for mining was effectively established during previous mining,

ATTACHMENT 1

9

and national grid electrical power is laid on to the property. Significant artesian water supplies are located within a small distance of the old mine site.

History of exploration & mining

EXPLORATION & DEVELOPMENT HISTORY

The exploration and development history at Woodlawn follows this sequence:

• 1970 – 1985: Jododex Australia Pty Ltd (a joint venture between St Joseph International Explorations and Phelps Dodge Exploration Corporation) discovers Woodlawn and commences development. Open cut mining starts in 1978.

• 1985 – 1987: Australian Mining and Smelting Ltd (a subsidiary of Conzinc Rio Tinto Australia Ltd (CRA)) acquires the project. CRA continues mining in the open cut and commences underground mining.

• 1987 – 1998: Denehurst Ltd purchases the project from CRA. Denehurst continues underground mining until closure in 1998. Denehurst also developed and mined small satellite ore bodies.

• 1999 – now: Collex (now Veolia) purchases mine site. Veolia is in the process of filling the open cut with waste railed in from Sydney.

• 1999 – now: Tri Origin Australia NL (a subsidiary of Tri Origin Exploration Ltd of Canada (TOE), and now Tri Origin Minerals Ltd (TRO, or the Company)) acquires rights to SML 20 and commences exploration.

MINING HISTORY

The Woodlawn Mine operated from 1978 to 1987 as an open cut operation, and then from 1987 to 1998 as an underground operation. Approximately 13.4 Mt of ore was extracted from the open cut, underground and satellites between 1978 and 1998. This ore was had an average grade of 1.6% copper, 3.6% lead, 8.9% zinc, 74 g/t silver and 0.5 g/t gold. The ore was processed at the site. The open cut mining extended to 200m below surface and produced 8.1 Mt of ore. Underground mining continued to 640 m below surface and produced 5.3 Mt. Production from underground mining at the regional satellite ore bodies at Currawang and Cowley Hills totalled approximately 539,000 t and 35,000 t, respectively. The mine closed in March 1998 owing to corporate financial problems encountered by the owner, Denehurst, and the mine was not rehabilitated at the time of closure.

Geology

REGIONAL GEOLOGY

Woodlawn is located is located near the eastern margins of the Lachlan Fold Belt (LFB, illustrated in a Fugure below), a major NNW trending orogenic belt that records convergence between the Australian craton and the proto Pacific Ocean. The relevance of the LFB is that it hosts numerous major metalliferous mines. The LFB extends from NE Tasmania, into Victoria and through much of NSW. The northern, western and eastern boundaries are masked by younger sedimentary basin cover. The LFB is divided into numerous strato-tectonic zones commonly referred to as anticlinorial and synclinorial zones. In the Woodlawn region the Synclinorial zones consist of Siluro-Devonian volcanics and sediments. The Woodlawn Project is located in the Captains Flat / Goulburn Synclinorial Zone (CFGSZ).

ATTACHMENT 1

10

The CFGSZ is a relativley narrow belt of volcanic and sedimentry rocks that extends for over 300km north to south and is one of several fault bounded Silurian to Devonian aged basins which host a range of base metal and gold occurrences in NSW. In the Woodlawn area Late Silurian rocks of the Mt Fairy Group (mostly acid to basic volcano-sedimentary sequences) disconformably overlie Ordovician basement of the Molong Rise which consists of quartz-rich flysch sediments (Birkenburn Beds). The boundary between these terranes is marked by a major thrust. Early Devonian, shallow to deep water sediments unconformably overlie the Mt Fairy Group. The sequence is highly deformed, regionally metamorphosed to lower greenschist facies, and intruded by Early Devonian granites. Early Devonian dolerites intrude the entire sequence. East west compression has produced a series of north plunging, overturned anticline/syncline pairs with west dipping axial planes and associated west dipping meridional thrust faults.

MINE GEOLOGY

The Woodlawn deposit is hosted by regionally metamorphosed (greenschist facies) fine and coarse grained felsic volcanic - pyroclastic rocks, volcanogenic sedimentary rocks and carbonaceous shale, informally known as the Woodlawn Group. In the latter stages of deposition, dolerite sills intruded the rocks now situated above and below the Woodlawn deposit3. Dolerite sills comprise 50% to 60% of hangingwall rock in the Woodlawn deposit. Many of the volcanoclastic rocks at Woodlawn are now laminated, quartz sericite bearing tuffaceous shale and chloritic-talc schist. Volcanic units interfinger the shales and exhibit complex and rapid facies changes. Certain volcanic units have been identified as being associated with ore and most of the lenses are in some way in contact with these units. The mine sequence is folded into an overturned, isoclinal syncline. The Woodlawn deposit occurs on the eastern limb of the syncline. The syncline axis plunges at about 60 degrees to the north-northwest. The axial plane dips at about 60 degrees to the west and is paralleled by a strong slatey cleavage or more intense schistosity throughout the mine sequence.

DEPOSIT TYPES

The primary Woodlawn underground deposit is classified as a zinc-lead-copper, lens or blanket type, volcanic hosted massive sulphide deposit. Ore would have been typically stratiform and located in a favourable horizon, usually between submarine volcanic units. The tailings deposit is a loose, fine grained, equi-granular, very finely and almost horizontally layered sediment – a man-made tailings dam.

MINERALISATION

Underground mineralisation is polymetallic, and the predominant minerals extracted in the past were copper, lead, zinc with accessory silver and gold. Woodlawn historically differentiated between two types of ore – copper ore and complex ore. The copper ore occurred in a variety of styles (copper-rich mounds and as stockwork vein-type mineralisation) with pyrite chalcopyrite assemblages together with lesser sphalerite, galena, and pyrrhotite along with gangue. The complex ore consisted of fine-grained, typically bedded, massive sulphides containing predominantly pyrite, sphalerite, galena and chalcopyrite along with gangue.

3 McKay, 1989

ATTACHMENT 1

11

Mineralisation is strongly affected by folding, faulting and mafic intrusions, and an association with dolerites. Within the tailings dams the sulphide mineralisation is fairly uniformly distributed (in comparison to the primary in-situ source rocks) as fine grained fairly equi-granular sand sized particles. Fine layering originated from the alluvial fan like deposition away from fixed slurry discharge points around the dam edges.

UNDERGROUND ORE LENSES

Woodlawn’s underground mineralisation is strictly within “lens” shaped lodes, sub-parallel to each other, and occurring in a repetitious geometry. The (currently known) deposits occur in ten main lenses (named A to J) and numerous but smaller sub lenses. The lenses are divided into two distinct groups – a Main or Eastern Group (which consists of lenses A, B, C, and J, and associated sub lenses, and which comprise approximately 93% of the deposit) and a smaller Western Group (containing lenses E to I, and which occur from 200m to 500m above the Main Lenses. Figures in Section 7 illustrate the ore lenses. The ore lenses have an average strike of about 330⁰ to 350⁰

and dip between 45⁰ to 75⁰ west. Numerous parsitic folds are now recognised as tight isoclinal structures. The Western and Main lenses appear to be located on opposing limbs of one of these fold strcutures. Fully understanding the spatial relationships between the known lenses was a constant goal for Woodlawn during mining, and is specifically described below.

TRO’s underground geological model

Denehurst’s geologists (supported by structural studies) recognized that the main A, B and C lenses were originally one lens, now displaced by a series of sinistral and dextral faults. Explaining the other lenses was not as clear. Definitively explaining the spatial relationship between the lenses has been the crux of the geology in the past because the concepts used to predict lenses and their repetitions were no robust enough for high success rates in mine development. And certainly prior to the completion of TRO’s Underground Resource Project (described below) the computerisation of the mine data was not advanced enough to aid the geological understanding of lens geometry.

However, with the detailed computer modelling of the underground deposit TRO has been able to model and study the underground geology in 3D. This has revealed that the lenses are clearly related to and contained within rock type packages or domains. The relative position of these domains to know folding and faulting structures, previously poorly understood in their structural links to mineralisation, is now considerably clearer. These new understandings of the geological controls on mineralisation will allow clear targeting for the exploration program.

Project review & the exploration project

Since acquiring the Woodlawn property TRO has completed projects to estimate Resources (described below) contained in the old tailings dams (the Tailings Resource Project) and remaining in-situ around the old underground mine (the Underground Resource Project). TRO has also examined the potential to retreat the existing tailings in a purpose-built processing facility (the Tailings Mining Project). It has also examined the potential to reopen the underground mine and extract zinc, copper and lead concentrates in a new processing plant (the Underground Mining Project).

ATTACHMENT 1

12

It was considered possible that the two projects could use very similar processing circuits (a conventional base metal concentrator) for mineral recovery and so could potentially be integrated. Bankable feasibility studies of the Tailings Mining Project and the Underground Mining Project were not completed before economic conditions altered the economics of the projects late in 2008. Prior to that, it had been assumed that mining and processing of the tailings could commence on a short term stand-alone basis, providing time and capital to develop the Underground Mining Project. The Tailings Resource Project had defined a finite (due to the fixed volume of tailings on the property) Mineral Resource. And the Tailings Mining Project had generated sufficient mine operating details and costs to consider that completed exploration and development work was adequate to enable a development decision to be taken (subject to a number of commercial outcomes, including financing and marketing of concentrates, being successfully achieved). The Underground Resource Project and the Underground Mining Project also resulted in the definition of a Mineral Resource and the generation of knowledge on a potential mining operation. The size of the Mineral Resource and the potential for conversion from Mineral Resources to Ore Reserves was not considered to be sufficiently great to justify the development of a full Underground Mining Project at the time that feasibility work was suspended. However, as the deposit has not been “drilled out” the known underground Mineral Resources has the potential to be increased through further exploration. New geological understandings of the mineralization controls have immediately indicated potentially good exploration targets. Consequently the Company’s objectives are now to increase the Mineral Resource inventory at Woodlawn by undertaking an exploration program to find extensions and repetitions of the known underground lenses at Woodlawn and in the Woodlawn Region (the Exploration Project). This will be implemented through drilling from surface. Targeting will rely on the existing detailed mineralization models in conjunction with the new insights into the geological rock type package controls on mineralization and its repetition. Targeting will be supplemented with reinterpretation of surface geophysical and mapping data and the feedback from the down hole geophysics to be undertaken in the new drill holes. In summary, the Exploration Project aims to identify sufficient additional Mineral Resources to economically justify re-opening an underground mine and processing operation at Woodlawn.

Underground Resource Project

The Woodlawn open cut was mined to completion within the current pit crest, and the Company’s work to date has not suggested any re-activation of it. The Woodlawn underground mine, accessed from declines descending from near the base of the open cut, used narrow cut and fill stoping within a series of sub-parallel lenses dipping moderately to steeply westwards. It was estimated that up to mine closure in 1998 the ore mined was in the order of 13.4 Mt at a grade of 1.6 % copper, 3.6 % lead, 8.9 % zinc, 74 g/t silver and 0.5 g/t gold. Being a reasonably large scale mining operation the data gathering and recording was thorough and the 20 years of operation produced a very large amount of data, primarily from exploration and development drilling, geological mapping and survey records. The underground mine workings were based on a series of moderately to steeply dipping ore lenses. The Company’s Underground Resource Project was undertaken to assess remaining underground Mineral Resources, particularly those resources near existing underground

ATTACHMENT 1

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mining stopes and development which could presumably be mined directly through existing access. In late 2006, SMG Consultants (SMGC) were engaged by the Company to undertake the resource estimation project. After Robin Rankin authored an SMGC report for the Company to JORC standards, he then authored a NI 43-101 standard report for the Company’s parent company TOE, and that report was filed on the System for Electronic Document Analysis and Retrieval (SEDAR) on June 17, 2008.

RESOURCE ESTIMATION

TRO’s underground exploration predominantly took the form of re-interpretation and computerised modelling of the available data to estimate remaining Resources outside but near the old stopes. These Resources would be lens extensions and hopefully new lenses. The method of interpretation was to identify mineralised intercepts in the drill holes and to correlate them with the aid of the geological mapping. Processing the results formed an underground Resource estimation project4. The estimation comprised interpreting drill hole lens intercepts; modelling the lens bounding surfaces; modelling the existing mine extraction voids and fill; statistically analysing the lens drill hole samples to determine grade estimation parameters; interpolate mineral grades in 3D within then lenses from the drill hole assays; estimating the contained Resources below an exclusion zone beneath the open cut; and finally classifying the Resources and reporting them. The interpretation stage saw 39 separate lenses defined. The zinc geostatistics revealed longest ranges of 47m dipping approximately vertically in the plane of the lenses, and the copper geostatistics revealed longest ranges of 24m dipping slightly more northwards. Block densities were calculated from the interpolated block iron (Fe), lead (Pb) and zinc (Zn) grades using a formula determined and verified during past mining. And zinc equivalent values were calculated from all the interpolated block grades (excluding Fe) using a formula based on metal prices.

UNDERGROUND MINERAL RESOURCES

JORC5 compliant Mineral Resources (see reconciliation with CIM6 Mineral Resources below), at a 7.0% lower zinc equivalent cut-off grade, were estimated for combined Measured and Indicated classes at 8.6 Mt at average grades of 10.3% zinc, 1.8% copper, and 4.0% lead (or 17.1% zinc equivalent). The average density was 3.7 t/m3. A further 1.5 Mt were estimated for the Inferred class. Resources were reported below a 50m exclusion zone below the open cut and to exclude all known past extraction. The Resources were individually classified as 3.6 Mt Measured and 5.0 Mt Indicated. A further 1.5 Mt was estimated and classified as Inferred. All estimates were made in October 2006. The following Table gives the underground Resources by class.

4 Undertaken for TRO by the author, SMG Consultants, 2006/7. NI 43-101 report compiled in 2007 for Issuer

TOE and filed on SEDAR. 5 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC

code’), 2004 Edition, JORC (of AusIMM, AIG & MC), December 2004. 6 CIM Definition Standards – For Mineral Resources and Mineral Reserves (the ‘CIM Definition Standards’),

adopted by CIM Council on 11th

December 2005.

ATTACHMENT 1

14

Resource class

Cut-off

ZNEQ

(%)

Tonnes

(Mt)

Grades

Zn

(%)

Cu

(%)

Pb

(%)

Au

(g/t)

Ag

(g/t)

ZNEQ

(%)

Measured 7.00 3.60 10.38 1.82 3.99 0.53 85.05 17.23

Indicated 7.00 4.98 10.16 1.79 4.04 0.55 84.01 16.96

Total Measured +

Indicate

d

7.00 8.58 10.25 1.80 4.02 0.54 84.45 17.07

Inferred 7.00 1.52 9.60 1.65 4.08 0.61 86.83 16.16

Using a 200m open cut exclusion zone (instead of a 50m exclusion zone) reduced the total Measured, Indicated and Inferred Resources from 10.1 Mt to 9.3 Mt. Reconciliation of these Resource with past production and past forecasts was undertaken, but with limited confidence because of the poor standing of the past figures. The modelled volume of past extraction was1.3 Mm3 at an average density of 3.5 t/m3 (calculated), giving a tonnage of 4.5 Mt (at 10.2% Zn, 1.9% Cu, 4.0% Pb). This matched reasonably closely with TRO’s collation from old mine records of 5.1 Mt (at 9.8% Zn, 1.5% Cu and 4.4% Pb). Reconciliation with the Denehurst reported low Resource and Reserve figures at mine closure was not attempted as the location and basis for them was not known. A principal limitation identified with the data was the very sparse density data. The study used a computed density, something the mine relied on during production. This would not seem a significant issue as the reconciliation of tonnages was good. Recommendations were made to refine the geological model and estimates through the inclusion of more existing geological mapping data and by further detailed geostatistical studies.

Underground Mining Project

Subsequent to the completion of the Resource estimation project in 2007 the underground project continued through Reserve estimation studies. Determination of Reserves involved extensive consideration of the proportion of the Mineral Resources that were likely to be sterilised by the old workings. Mine planning studies required the completion of a limited exploration drilling campaign from surface to gain knowledge from specific locations underground. This data was also used for additional metallurgical testing for processing route purposes. Other pre-feasibility study work programs were conducted over the period from 2006 to 2008, but these were suspended in 2008 when the Company’s focus shifted from the Underground Mining Project to advancing the Tailings Mining Project as a means of potentially bringing forward the date on which the Company would be in a position to internally generate cash flow. The studies undertaken as part of the Underground Mining Project included:

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• Reserve estimation.

• Mining studies (including mining methods; geotechnical evaluations; mine paste fill assessment and test work; mine equipment and organisational planning; and ventilation systems).

• Metallurgical test work.

• Process engineering.

• Mine services and infrastructure studies.

• Environmental studies.

• Water management modelling.

• Traffic and transport studies.

• Port assessment.

• Concentrate marketing.

• Human resources.

• risk assessments;

• Economic evaluations. Tri Origin halted the underground feasibility study early – once it became obvious that there was greater potential to development the retreatment project first, and the realization of the limitation in the underground Resource that would be available for conversion to Reserves. Nonetheless, the processing flow sheet has been developed and a draft underground study has been prepared, which does however require additional Mineral Resources for project robustness.

Tailings Resource Project

The Woodlawn open cut and underground mine operated three surface tailings dams for holding waste from the mineral processing. TRO’s Tailings Resource Project has involved exploring the dams and estimating the Mineral Resources in them. Over the 20 year mine life the dams were filled in order from North Dam, South Dam to West Dam. Inefficiencies in Woodlawn’s mineral processing plant lead to a not insignificant proportion of the primary ore being discharged into the tailings dams. This constituted a Mineral Resource and the subject of TRO’s interest. It was also previously recognised by Denehurst, and for an intermediate period most of the uppermost material in the (then) completed North Dam (and an insignificant quantity from the South Dam) was subject to re-treatment and then re-deposition (principally back into the North Dam, with a little going to the West Dam). Even with the re-treatment considerable Resource remained, and an estimate7, based on historical data (plant discharge records and some dam drilling), of remaining Resources in the combined tailings dams was ~11.2 Mt (at 2.5% zinc in the South Dam and 3.2% zinc in the North Dam). TRO’s project goal was to confirm this.

RESOURCE ESTIMATION

TRO’s tailings exploration was undertaken through drilling regularly spaced holes across the expanses of all tailings dams. All material was sampled and assayed. This data was supplemented with the Denehurst’s historical drill hole data. Processing the results formed a tailings Resource estimation project8. This revolved around computerising old and new tailings dam surface mapping data; modelling the confining dam surfaces; statistically analysing the drill hole sample assays; interpolating mineral grades in 3D within those surfaces from the drill

7 Compiled by TRO from Denehurst mine records

8 Undertaken for TRO by the author, GeoRes, 2007/8. NI 43-101 report compiled in 2008 for Issuer TOE and

filed on SEDAR.

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hole sample assays; estimating the contained Resources; and finally classifying the Resources and reporting them.

TAILINGS MINERAL RESOURCES

Combined JORC compliant Mineral Resources (see reconciliation with CIM9 Code Mineral Resources below), of the South, West and North Dams, at no lower grade cut-off, were estimated for combined Measured and Indicated classes at 9.4 Mt at an average grade of 2.3% zinc. The average density was 1.7 t/m3. Those Resources were classified (largely on the basis of sampling distribution) as 5.3 Mt Measured and 4.1 Mt Indicated. A further 2.3 Mt were estimated and classified as Inferred. All estimates were made in April 2008. The following Table gives the Resources by class for each dam. Reconciliation of these Resources with TRO’s compilations from historical mill records and Denehurst’s annual reports was fairly close and was considered acceptable. Limitations identified with the data and the modelling and estimation work primarily involved the unknown depth of surface water in all dams (which required a South Dam tailings surface simulation); assumptions of accuracy of the dam floor mapping data; reliance on limited numbers of dry density determinations; some uncertainties about the historical reconciliation data; and lack of detail on the re-treated material base surface in the North Dam. Larger spacing between drill holes in parts of the dams (currently under or around the bodies of standing water) was not a limitation but rather the reason for lower Resource categorisation there. Data risks whilst considered to be small. Various recommendations for exploration and data processing were made, mainly to tie down small details prior to commencement of a re-treatment operation. Subsequent to the completion of the estimation part of the tailings resource project in May 2008 the project continued through supplementary exploration drilling in the previously poorly drilled areas of the dams.

9 CIM Definition Standards – For Mineral Resources and Mineral Reserves (the ‘CIM Definition Standards’),

adopted by CIM Council on 11th

December 2005.

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Resource class Cut-off Tonnes

(Mt)

Grades

Zn

(%)

Cu

(%)

Pb

(%)

Au

(g/t)

Ag

(g/t)

ZNEQ

(%)

Dens

(t/m3)

Measured & Indicated classes

South Dam

Measured 0.00 2.43 2.60 0.48 1.19 0.22 24.58 4.53 1.70

Indicated 0.00 1.17 2.44 0.48 1.19 0.22 23.21 4.35 1.65

Sub-total 0.00 3.60 2.55 0.48 1.19 0.22 24.13 4.47 1.68

West Dam

Measured 0.00 2.05 2.00 0.60 1.46 0.39 35.66 4.52 1.89

Indicated 0.00 1.54 1.93 0.60 1.51 0.39 36.94 4.49 1.95

Sub-total 0.00 3.59 1.97 0.60 1.48 0.39 36.21 4.51 1.92

North Dam

Measured 0.00 0.83 2.35 0.43 1.43 0.29 35.47 4.43 1.48

Indicated 0.00 1.38 2.68 0.45 1.44 0.29 39.94 4.85 1.51

Sub-total 0.00 2.21 2.56 0.44 1.44 0.29 38.26 4.69 1.50

All dams

Measured 0.00 5.31 2.33 0.52 1.33 0.30 30.56 4.51 1.74

Indicated 0.00 4.09 2.33 0.52 1.39 0.31 34.02 4.57 1.72

Total Measured +

Indicated 0.00 9.40 2.33 0.52 1.36 0.30 32.07 4.54 1.73

Inferred

South Dam 0.00 0.90 2.32 0.47 1.19 0.23 23.90 4.22 1.67

West Dam 0.00 0.48 1.83 0.61 1.47 0.38 33.69 4.34 2.00

North Dam 0.00 0.87 2.03 0.33 1.33 0.25 36.81 3.83 1.41

Total Inferred 0.00 2.25 2.10 0.44 1.30 0.27 30.98 4.09 1.63

Tailings Mining Project

The Tailings Mining Project was conducted in parallel with the Tailings Resource Project, and was completed in May 2008. The project’s aim was to study feasibility aspects of a potential tailings mining and re-treatment operation. The studies were principally into tailings metallurgy and mineral processing, and were completed in 2008 to the stage considered adequate to proceed to Front End Engineering and Design, subject to completion of certain commercial activities including financing and securing off take contracts and subject to Board approval. The general scope of the Tailings Mining Project work included:

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• Mining studies, including tailings replacement.

• Metallurgical test work

• Process engineering

• Mine services and infrastructure studies

• Environmental work

• Water management modelling

• Traffic and transport studies

• Port assessment

• Concentrate production and marketing

• Human resource plans

• Economic assessments. The mining studies determined a practical mining method (hydraulic monitoring), production rate (1.5 Mtpa), and replacement plan. The mineral processing and metallurgical testing determined a practical process flow, which was similar to Denehurst’s but considerably more efficient.

Interpretation & conclusions

UNDERGROUND

The Underground Resource Project resulted in the definition of a sizable Mineral Resource around the old underground mine workings of 8.6 Mt Measured and Indicated and 1.5 Mt Inferred (using a 7% zinc equivalent cut off). This result considerably exceeded TRO’s expectations. As part of the underground Mining Project detailed Ore Reserve estimation work was progressing up until the project was suspended in 2008 (described above). The other aspects of the mining studies had similarly progressed to the same point, many to finalisation. The interpretation of the Resource estimation and Reserve work was that considerable Resources existed in the vicinity of old mine workings and that proportions of them could be converted to Reserves. The preliminary mining work showed that re-starting an underground mine could be contemplated under certain conditions. Preliminary economic evaluations indicated that the discovery of new Resources away from areas previously mined (and therefore not influenced negatively or sterilized by them) would greatly enhance the economic potential of the project. The recently completed geological interpretation and model strongly reinforce the concept of the potential for undiscovered mineralization and should provide the framework on which to plan future exploration. The overall conclusion of the author is that further underground Resources remain to be found, and that analysis of the past mining and underground exploration, coupled with the new geological model, strongly imply that extensions to known lenses, and new lenses, exist. The deposit was never “drilled or mined out”. Incremental tonnage increases are likely to be found adjacent to existing lenses where drilling and previous mining indicate these areas have not been closed off. These target areas are also generally proximal to currently delineated Inferred Resources on lens margins.

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The potential for a significant large discovery at Woodlawn is likely to be located down dip/plunge and/or along strike from the currently defined limits of mineralisation. The copper rich intersection in drill hole U458 indicates that feeder zones are still in existence in this area, and based on the Woodlawn genetic model, additional zinc rich ore maybe expected down dip and/or along strike from this intersection. Other targets are likely to be relatively deep and beyond the reach of conventional surface based exploration techniques and the location of mine infrastructure generally precludes the use of electrical geophysics as a targeting tool in the near mine area. Therefore deep drilling, followed by down hole electro-magnetics (DHEM), and combined with sound geological analysis, would be required. However, the potential for a significant discovery in the footwall to the system, possibly near surface, exists. This was always poorly explored, and it is likely that the design of the open cut and the placement of original infrastructure would have militated against looking for such mineralisation. The Underground Mining Project is at an intermediate stage. It has considerable Mineral Resources, but these are currently inadequate to generate the economic return required from the development of an Underground Mining Project at Woodlawn. However, the deposit is still open in various directions and there appears to be good potential for increasing the size of the Mineral Resource through undertaking the Exploration Project and conducting further exploration drilling.

TAILINGS

The Tailings Resource Project produced a finite (due to the fixed volume of tailings on the property) but significant Measured and Indicated Mineral Resource of 9.4 Mt and 2.3 Mt Inferred. The Tailings Mining Project determined sufficient mining and processing parameters on which to base a future decision to proceed to Front End Engineering and Design, subject to and improvement in the long term outlook for base metals prices, completion of certain commercial activities including financing and securing off take contracts and subject to Board approval. The conclusion of TRO and the author is that tailings project work achieved TRO’s aims and the overall exploration and analysis of the tailings is complete. No further work on tailings is currently envisaged by TRO.

REGIONAL

To date, the review of the exploration data derived from exploration of the region around Woodlawn has been cursory relative to the work that has been applied to assessing the near mine exploration potential. Regional exploration datasets have been collected and interpreted over many years and by many different operators. The approach to previous exploration has been fairly traditional, in the sense of geological mapping, followed by surface geochemistry and geophysics which led to drill testing of selected targets. This approach ultimately located the Currawang and Cowley Hills deposits and a host of other potential targets in the area. The results of this approach would seem to indicate the potential for significant near surface discoveries is somewhat limited and that additional discoveries are likely to be deeper than 150 to 200m. Additional exploration work would be recommended at a later stage.

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Recommendations to explore

OBJECTIVES

The primary objectives of TRO for the future on the property involve further investigation through

primary exploration. Objectives of this exploration in the different aspects of the

property are:

• Tailings:

o No further exploration of the tailings is currently envisaged.

• Underground:

o Find extensions and possible additions to the known underground lenses.

o Analyse current data further with the aim of better understanding the lens system.

• Regional:

o Collate and analyse existing geophysical and related data with the view to finding

near mine mineralisation targets.

EXPLORATION RECOMMENDATIONS

NEAR MINE UNDERGROUND EXPLORATION

The primary recommendation is for TRO to undertake an Exploration Project to find extensions and repetitions of the known underground lenses at Woodlawn. Targets would be created by using information from the original geological models created during the Mineral Resource estimation work as a basis to incorporate new geological model interpretations. A program of diamond and reverse circulation drilling and associated exploration, such as down hole electro-magnetics, and additional geological work is recommended. The drilling would directly target interpreted extensions of existing lenses and also test parts of the prospective trend of host units north west of the mine. Deeper diamond drilling is proposed to test for down plunge and strike extensions of the B Lens System, below the intersection in U458. Two holes are proposed and will push on and test possible extension to J Lens and another conceptual target. It is anticipated that down hole electro-magnetics (DHEM) would be conducted on most holes. The potential for a wholly new footwall system would be determined using the geological interpretation mentioned above, and then drilled if warranted. Additional work is also recommended with regard to ongoing 3D modeling, where existing drill hole and surface geological mapping can be used to expand the 3D geological and structural model, especially north and south of the Woodlawn deposit. Concurrent with this process it is recommended that geophysical datasets be modeled in 3D where appropriate. Particular emphasis should be given to inversion modeling of the historic IP. This data can then be combined with later ground magnetic and electromagnetic surveys. It is also proposed to conduct geochemical work on existing drill core to assist in future exploration work by geochemically profiling the prospective host units and alteration assemblages as possible vectors towards ore. Finally, given the seemingly complex nature to the structural aspects of the Woodlawn deposit it is recommended that a Structural Geologist be engaged to assist in refining the structural model for Woodlawn. This may expand both near mine and regional opportunities.

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Concurrent with this may be an engagement with previous mine geology personnel in order to obtain their views on recent advances in geological understanding as outlined by Tri Origin.

REGIONAL EXPLORATION

Opportunities for additional discoveries must exist given the land position Tri Origin controls and its proximity to the Woodlawn deposits combined with the results of previous exploration. Evidence for regional opportunities is reflected in the Currawang deposit and other targets so far identified. The brief review of the regional data indicated that many EM anomalies exist but have not been tested on the basis of perceived low prospectivity. Whilst this is a fair approach the author is of the opinion that all of the EM data needs to be reviewed and that a number of EM anomalies should be drill tested. The other important aspect of the regional data is the geochemical coverage. Much of this data was collected in the 1970’s and 1980’s and was generally only assayed for Cu, Pb and Zn. It is also the case that much of the geochemical data encompasses areas of alluvial cover or dolerite capping in particular north and northwest of Woodlawn. Therefore, it is recommended the new geochemical surveys should be considered. These surveys must penetrate any surficial cover with the aim of testing the geochemical response of the bedrock. A multi-element approach is recommended with analysis for target and pathfinder elements. A program of this nature will also provide important geological mapping information. Some thought should be given to ‘whole rock’ litho-geochemical analysis. This may help to identify potential host rocks and alteration vectors associated with ore formation. Consideration may also be given to conducting “whole rock” litho-geochemical analysis where appropriate to help identify potential host rocks and alteration vectors associated with ore formation. Consideration may also be given to the acquisition of additional geophysical data, in particular through IP surveys which have the effect of broadening the target area, by detecting disseminated sulphides which can occur as broad haloes around massive sulphide deposits. Disseminated sulphides also represent exploration targets in their own right.

EXPLORATION PROGRAM & COST

Tri Origin plans to implement an exploration program as soon as practicable. Key to the implementation would be the engagement of a drilling contractor and a contract geologist to assist with the program. A breakdown of the anticipated budget is presented in the following table.

Exploration activity Cost ($)

Drilling 800,000 Down hole EM geophysical surveys 35,000 Geophysical data processing and interpretation 15,000 Geological data processing and interpretation 25,000 Assays 25,000 Structural geology interpretation 10,000 Personnel 80,000 Administration 10,000

Total 1,000,000

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Code declarations

DECLARATION AND JORC COMPLIANCE

The information in this report that relates to Mineral Resources or Ore Reserves is based on information compiled by Robin Rankin, a Member of the AusIMM, and registered as a Chartered Professional Geologist (CPGeo). Robin Rankin is Principal Consulting Geologist and operator of GeoRes. He has sufficient experience relevant to the style of mineralization and type of deposit under consideration, and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code). He consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

CIM CODE RECONCILIATION

In compliance with Canadian NI 43-101 requirements concerning use of codes (foreign codes) other than the “CIM Definition Standards – for Mineral Resources and Mineral Reserves” in technical reports on mineral projects it is stated here that the JORC Mineral Resource categorization used here was directly equivalent to the CIM categorization.

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DIAGRAMMATIC REPRESENTATION OF CONCEPTUAL DRILL TARGETS

FOR NEAR MINE EXPLORATION PROGRAMME