Altona Mining Ltd.: Weitere Fortschritte bei SRIG-Transaktion

Appendix 1: SRIG Confirmatory Drilling

Part of the formal due diligence being undertaken by SRIG included the drilling of two diamond drillholes at Little Eva and metallurgical testwork to validate the resource model and prior metallurgical recovery estimate. Metallurgical testwork is currently underway and drilling and assaying is complete.

The two holes drilled by SRIG were twins of two pre-existing Altona drillholes (one Diamond and one RC). The holes tested mineralisation in the core of the deposit and the lower grade margin of the deposit. Results from the new holes compare well with prior holes given the variation within the deposit (Table 1) and provide further confidence in and confirmation of prior drilling.

The distances between the SRIG holes and the twinned Altona holes varies from approximately 2 metres at the collar to 20 metres down hole.

Table 1: Comparison of Significant Intersections (at 0.3% copper cut-off grade)

SRIG Twin Hole Original Altona Hole
LED1006 LED535
From 0 metres: From 0 metres:
157 metres at 0.53% copper, 156.7 metres at 0.57% copper,
0.11 0.07
g/t gold g/t gold

LER521
From 0 metres:
157 metres at 0.45% copper,
0.06
g/t gold
LED1007 LER261
From 0 metres: From 0 metres:
228 metres at 0.18% copper, 228 metres at 0.20% copper,
0.03g/t 0.06g/t
gold gold

SRIG hole LED1006 extended past the end of the twinned hole LED535 and intersected other modelled mineralised zones.

The results include the following highlights within broader mineralised zones:

LED1006: -From 79 metres--6 metres at 0.99% copper, 0.13 g/t gold
-From 118 metres--21 metres at 1.85% copper, 0.60g/t gold
-From 222 metres --8 metres at 1.66% copper, 0.28g/t gold

LED1007: -From 43 metres--5 metres at 2.38% copper, 0.28g/t gold
-
A full table of results and Altonas standard sampling and assaying methodology are attached as Tables 2 to 4.


Table 2: Significant Diamond Drill Core Intersections (at 0.3% copper cut-off grade)

Hole ID Depth Drill Intercept
>0.3%

Copper
From To Width Copper Gold
(metres) (metres) (metre(%) (g/t)
s
)
LED1006 3 12 9 0.48 0.03
41 90 49 0.48 0.06
95 105 10 0.62 0.05
118 139 21 1.85 0.6
145 186 41 0.41 0.07
192 201 9 0.53 0.15
207 230 23 0.76 0.16
238 244 6 1.09 0.33

LED1007 31 48 17 1.05 0.22
96 104 8 0.29 0.06
177 182 5 0.29 0.08
Table 3: Drillhole Summary Table

Hole ID Hole Location Orientation End of
Type (MGA54) Hole

EastingNorthinRL AzimutDip Depth
g h

(metres(metres(metre(°) (°) (metres)
) ) s
)
SRIG Confirmatory Twin Holes - New
LED1006 Diamond 410569.7772193162.2 81 -59.2 250.0
2 .0

LED1007 Diamond 410751.7771867168.5 80 -60.0 230.0
9 .8


Twinned Altona Resource Hole - Previous
LED535 Diamond 410568.7772195162.1 81 -60.0 156.7
4 .6

LER521 RC 410565.7772191161.8 81 -60.0 217.0
7 .8

LER261 RC 410751.7771869168.1 81 -60.0 229.0
9 .3

Table 4: Table 1 of the JORC Code

Criteria Commentary
Section 1: Sampling Techniques and Data
Sampling · Sampling was via diamond (DD) drill core.
techniques SRIG confirmation drilling core size was HQ.
Core was measured and annotated for sampling
by geologists contracted by SRIG (Mining One
Pty Ltd) and independently validated by Altona
staff on site. Core was cut and analysed at
ALS laboratories in Townsville. Half core was
submitted for analysis; assay coarse reject
and quarter core was sent for metallurgical

testwork and remaining core retained and will
be returned to Altonas storage for
reference.

Drilling · Diamond drilling; all holes HQ core. SRIG
techniques confirmation drilling was triple
tubed.

· Holes twinned were diamond and RC; results
reported
previously.

Drill · Recovery was visually estimated and recorded.
sample Core recoveries are considered to be excellent
recovery averaging well over 90%, generally 100%.
Occasionally lower recoveries were recorded
within the upper weathered zones.


· No significant changes in core recovery
through the mineralised zones was recorded
hence

no subsequent bias to the grade.
Logging · Logging of the SRIG holes was completed by
independent contractor geologists for SRIG
(and subsequently validated by Altona staff)
using industry standard logging procedures
consistent Altona standard
procedures.

· Logging is qualitative and quantitative
including, colour, lithology, mineralisation,
alteration, sulphide and oxide mineralogy,
sulphide and oxide amount, texture, grain size
and
structure.

· All holes were logged in full.
Sub-samplin· All samples were sent to ALS Laboratories in
g Townsville for cutting sample preparation and
techniques analysis. ALS is an independent commercial
and certified laboratory that uses industry
sample standard sample preparation including drying,
preparatio crushing and
n pulverisation.

· Half core was cut and submitted for analysis.
· Sample size is considered representative for
typical copper mineralisation at

Roseby area.
Quality of · All samples were analysed at ALS laboratories
assay in
data and Townsville.
laboratory
tests · Samples were analysed using an Aqua Regia dige
st

(method code: GEO-AR01) followed by ICPAES and
ICP-MS
analysis for 41 elements (method code: ME-MS41)
. This included copper, with a detection limit
of 0.2 ppm. Data reported from Aqua

Regia digestion should be considered as
representing only the leachable portion of a
particular

analyte.
· On return of copper values >1% a second
series of analyses were undertaken. This
involved an ore grade Aqua

Regia digestion (method code: ASY-AR01)
followed by ICPAES analysis, optimised for
accuracy and precision at high concentrations
(method code:
ME-OG46).

· Gold was analysed via a fire assay (30g) with
an AAS finish, with a lower detection limit of
0.01 ppm and upper detection limit of 100
ppm.

· Quality Control by SRIG included: standards
(certified reference materials, according to
Altonas normal procedures, inserted into the
sampling sequence at 1:20 ratio and included
representative material for copper, gold and
blanks; and field duplicates taken using a for
every
20
th sample. Laboratory checks were also carried
out on sample pulps. The standards were
inserted into each sample batch to test the
accuracy of the laboratory analysis.


· As yet Altona has not received the data for
independent
review.

· No samples were analysed by an umpire
laboratory.

· No geophysical tools were used to determine
the results reported
here.

Verificatio· Results were checked by several Altona
n of personnel.
sampling
and · The SRIGs holes were twins of Altona
assaying resource definition
holes.

· All field logging data was done on hardcopy
with database entry by the SRIG contract
geologist. The SRIG

hole data was provide by SRIG to Altona for
uploaded into the company

Datashed database and validated by company
database
personnel.

· Drillhole assays were received in digital
format
from SRIG. Data was uploaded into the Altona Da
tashed
database company database personnel. No manual
data inserts took
place.

· No adjustments have been applied to the
results.

Location · Collar locations have been surveyed using the
of data companies own DGPS with approximately 0.1
points metre
accuracy.

· Down hole surveys were completed at the end
of each hole within drill rods by Altona
personnel using non-magnetic Gyro tool for
azimuth and
dip.

· The Grid is GDA94 MGA Zone 54.
· Elevation accuracy of DGPS survey is
considered to be less than 0.5m and has been
verified against detailed ground survey
previously completed in the
area.

Data · Holes were largely drilled for confirmation/
spacing due diligence purposes; one hole was drilled
and in the higher tenor Central Zone and one hole
distributi was drilled on the lower tenor margin of the
on Southern
Zone.

· Drillholes being reported are from deposits
with published resource estimate. Drill
results are consistent with the existing
drilling and resource estimate
models.

Orientation· The strike of mineralisation is either
of data approximately NW-SE to N-S with predominantly
in westerly dips, with the exception of Northern
relation Domain at Little Eva which dips to the NE.
to
geological
structure · No bias is considered to result from drilling
direction.

· The holes at Little Eva were drilled on the
same grid orientation as the
de
posit resource definition drillholes and were
designed to intersect the mineralised zones at
an optimal angle.


Sample · Core samples were collected and stored in
security core trays in Altona facilities in

Cloncury prior to the transport to Townsville.
Packing and sampling was coordinated and
supervised by SIGs
contractors.

· Following cutting by ALS, samples for
analysis were collected into pre-numbered
calico bags. Unique sample numbers were
retained during the whole process.


Audits or · No external audits or review have been
reviews undertaken.

Section 2: Reporting of Exploration Results
Mineral · The Little Eva deposit is within Altona
tenement Minings 100% owned
and land
tenure Cloncurry Project Mining Leases 90162, 90163,
status 90164, 90165, and
90166.

· Altona announced in 2015 a Framework
Agreement with Sichuan Railway Investment
Group (SRIG) which, if completed, will lead to
the forming of a 60:40 SRIG/Altona JV within
the

Cloncurry Project.
· There are agreements in place with the native
title holders, the

Kalkadoon people and with landholders.
· No significant historic sites or national
parks are located within the reported
exploration
sites.

· The Mining Leases were granted in late 2012
and are in good
standing.

Exploration· Extensive exploration programs and resource
done by definition drilling has been carried out on
other the deposit by various companies commencing in
parties the 1960s; the majority of the work on the
deposits was carried out by CRA Exploration,

Pasminco, Universal Resources/Altona Mining
and Xstrata.


Geology · The Little Eva deposit - breccia,
disseminated and shear hosted copper-gold
mineralisation styles typical of the IOCG
deposits in the region e.g. Ernest Henry. The
deposits are considered to be hydrothermal and
structurally controlled, with the different
styles reflecting host rocks (competency,
chemistry and permeability).


· At Little Eva the majority of the
mineralisation is sulphide (chalcopyrite) with
a shallow (10-25m thick) weathered/oxidised
cap.


Drillhole I· Collar locations, elevations, azimuth, dip
nformation and lengths are presented in Table 3 of this
release.

· Down hole widths of the mineralisation are
presented in Table 2 of this
release.

Data · Standard intercepts were calculated using a
aggregatio 0.3% copper cut-off typical to the
n
methods Roseby area mineralisation. A minimum of 4m
intercepts are reported here and a maximum of
consecutive 4m of below 0.3% samples were
allowed within each
intercepts.

· No equivalent calculations have been applied
or
used.

Relationshi· At Little Eva drilling orientation is
p between considered to be at a high angle or
mineralisa approximately perpendicular to the main
tion orientation of the mineralisation resulting in
widths unbiased
and widths.
intercept
lengths

Diagrams · Tables 1 and 3.
Balanced · Best results for each hole have been reported
reporting in Table 1 including all significant results
using the criteria described above.


Other · Not applicable.
substantiv
e
exploratio
n
data

Further · Additional work in the future will consist of
work infill drilling for resource definition and
mining grade control purposes.




QUARTERLY REPORT DECEMBER 2015
Table 1: Resource Estimates for the Cloncurry Project
DEPOSIT TOTAL CONTAINED MEASURED INDICATED INFERRED
METAL
TonnesGrade CopperGold TonnesGrade TonneGrade TonnesGrade
millioCu Au tonnesouncesmillioCu Au milliCu Au millioCu Au
n % g/t n % g/t on % g/t n % g/t

COPPER GOLD DEPOSITS
Little Eva 105.9 0.52 0.09 546,00295,0037.1 0.60 0.09 45.0 0.46 0.08 23.9 0.50.10
0 0 0

Ivy AnnA 7.5 0.57 0.07 43,00017,000- - - 5.4 0.60 0.08 2.1 0.40.06
9

Lady Clayre14.0 0.56 0.20 78,00085,000- - - 3.6 0.60 0.24 10.4 0.50.18
A 4

BedfordA 1.7 0.99 0.20 17,00011,000- - - 1.3 1.04 0.21 0.4 0.80.16
3

Sub-tot129.1 0.53 0.10 684,00409,0037.1 0.60 0.09 55.3 0.49 0.09 36.7 0.50.12
al 0 0 1

COPPER ONLY DEPOSITS
BlackardA 76.4 0.62 475,00- 27.0 0.68 - 6.6 0.60 - 42.7 0.5-
0 9

ScanlanA 22.2 0.65 143,00- - - - 18.4 0.65 - 3.8 0.6-
0 0

Turkey 21.0 0.59 123,00- - - - 17.7 0.59 - 3.4 0.5-
Creek 0 8

LongamundiA10.4 0.66 69,000- - - - - - - 10.4 0.6-
6

LegendA 17.4 0.54 94,000- - - - - - - 17.4 0.5-
4

Great South6.0 0.61 37,000- - - - - - - 6.0 0.6-
ern 1
A
CarolineA 3.6 0.53 19,000- - - - - - - 3.6 0.5-
3

Charlie Bro0.7 0.40 3,000 - - - - - - - 0.7 0.4-
wn 0
A
Sub-tot157.7 0.61 963,00- 27.0 0.68 - 42.7 0.62 - 88.1 0.5-
al 0 9

TOTAL 286.8 0.57 0.04 1,647,409,0064.1 0.63 0.05 98.0 0.55 0.05 124.8 0.50.04
000 0 7
A This information was prepared and first disclosed under the JORC Code 2004 Edition. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. All other resources classified and reported in accordance with JORC Code 2012 edition.
Note: Tonnages are dry metric tonnes and have been rounded, hence small differences may be present in the totals.
See ASX release of 23 October 2007 and 26 July 2011 (Longamundi, Great Southern, Caroline and Charlie Brown), 23 April 2012 (Bedford, Ivy Ann and Lady Clayre), 03 July 2012 (Blackard and Scanlan), 22 August 2012 (Legend), 27 May 2014 (Little Eva) and 18 March 2015 (Turkey Creek) for full details of resource estimation. Little Eva is reported above a 0.2% copper lower cut-off grade, all other deposits are above 0.3% lower copper cut-off grade.


-13.
QUARTERLY REPORT DECEMBER 2015
The ASX releases referenced in Table 1 are available on the Altona website at www.altonamining.com. The Company confirms that it is not aware of any new information or data that materially affects the information included in the most recent market announcement for each deposit and, in the case of Mineral Resources and Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons findings are presented have not materially modified from the original market announcement.


-19.
QUARTERLY REPORT DECEMBER 2015

APPENDIX 5B
Mining Exploration entity quarterly report

Name of entity
Altona Mining Ltd.

ABN--Quarter ended (current quarter)
35 090 468 018 31 December 2015

Consolidated statement of cash flows

Current Year to
Cash flows related to operating Quarter Date
activities
(3 months) (6 months)
A$000 $A000
1.1-Receipts from product sales and -- --
related
debtors


1.2-Payments for-(a)-exploration and -(676) -(2,034)
evaluation

---(b)-development -- --
---(c)-production -- --
---(d)-administration and corporate -(945) -(1,752)
activities

1.3-Dividends received -- --
1.4-Interest and other items of a -224 -547
similar nature
received

1.5-Interest and other costs of -(2) -(3)
finance
paid

1.6-Income taxes rebate -- --
1.7-Other* -(10) -(8)

-Net Operating Cash Flows -(1,409) -(3,250)
-Cash flows related to investing
activities

1.8-Payment for purchases ofa)-pros-- --
pects

---(b)-equity investments -- --
---(c)-other fixed assets -- --
1.9-Proceeds from sale ofa)-prospec-- --
ts

---(b)-equity investments -- --
---(c)-other fixed assets -- --
1.10-Loans to other entities -- --
1.11-Loans repaid by other entities -- --
1.12-Other -- --
-Net investing cash flows -- --
1.13-Total operating and investing -(1,409) -(3,250)
cash flows (carried
forward)

* Includes VAT/GST.

-Cash flows related to financing
activities

1.14-Proceeds from issues of shares -- --
(net of
costs)

1.15-Proceeds from sale of forfeited -- --
shares

1.16-Proceeds from borrowings -- --
1.17-Repayment of borrowings -- --
1.18-Dividends paid -- --
1.19-Other -- --
-Net financing cash flows -- --
-Net increase (decrease) in cash held -(1,409) -(3,250)
1.20-Cash at beginning of quarter/year-45,017 -46,838
1.21-Exchange rate adjustments to 1.20-(13) -7
1.22-Cash at end of quarter 43,595 43,595


Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
Current
quarter

$A000
1.23-Aggregate amount of payments to the parties 185
included in item
1.2


1.24-Aggregate amount of loans to the parties -
included in item
1.10

1.25-Explanation necessary for an understanding of the transactions

Payment of executive and non-executive directors fees,
salaries and
superannuation
.


Non-cash financing and investing activities

2.1-Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

N/A

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

N/A
Financing facilities available

Add notes as necessary for an understanding of the position.

Amount Amount used
available $A000

$A000
3.1-Loan facilities - -
3.2-Credit standby arrangements - -


Estimated cash outflows for next quarter (excluding any proceeds from concentrate sales and other income)

$A000
4.1-Evaluation/Exploration 1,061
4.2 Development -
4.3 Production -
4.4 Administration and corporate 849
activities

-Total 1,910


Reconciliation of Cash

Reconciliation of cash at the end of Current Previous
the quarter (as shown in the quarter quarter
consolidated statement of cash $A000
flows) to the related items in the $A000
accounts is as
follows.

5.1-Cash on hand and at bank -300 -342
5.2-Deposits at call -43,295 -44,675
5.3-Bank overdraft -- --
5.4-Other (provide details) -- --
-Total: cash at end of quarter (item -43,595 -45,017
1.22)


Changes in interests in mining tenements
6.0-See attached Schedule A.
Issued and quoted securities at end of current quarter

Total Number Issue Amount paid
number quoted price up per
per security
security

7.1-Preference - - - -
-securities
-(description)

7.2 Changes - - - -
during

-quarter

7.3-Ordinary 534,800,5534,800,59- -
-securities 92 2

7.4-Changes - - - -
during


-quarter
-- Issued

7.5 Converting - - - -
debt

-Securities
-(description
and


-conversion
factor)


7.6 Changes - - - -
during


-quarter

7.7 Options
-(description
and 4,105,000- - -
^
-conversion
factor)


7.8-Issued - - - -
during

-quarter

7.9-Exercised - - - -
during

-quarter

7.10-Expired 750,000^ -
during - -


-quarter

7.11-Debentures - - - -
-(totals only)

7.12-Unsecured - - - -
notes

-(totals only)

^ -Share rights issued pursuant to approved Employee Share Scheme. These Share Rights form part of the Long Term Incentive Scheme in compliance with Altonas Remuneration Policy. The Share Rights have various expiry dates and performance hurdles.


Compliance statement

1. This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX.

2. This statement does give a true and fair view of the matters disclosed.





Sign here:--Date: 29 January 2016

Company Secretary

Print Name:-Eric Hughes


SCHEDULE A

AUSTRALIAN MINING TENEMENTS

Interests in mining tenements relinquished, reduced or lapsed during the quarter

Conditionally surrendered in favour of new tenements: EPMs 8506, 10266, 12529, 14822, 8059, 12121, 12492, 12493, 13249, 14556, 18784, 18983, 9056, 14365, 14535, 10833, 11004 and 11611.

Interests in mining tenements acquired or increased during the quarter

New tenements replacing conditionally surrendered EPMs: EPMs 25757, 25760, 25759, 25761.

Interests in mining tenements at end of the quarter

The area under granted EPMs within Queensland presently totals 1252.3 km².

Cloncurry Project: Mining Leases (ML)
Number Name Holder Beneficial
Interest
Held
90162 Scanlan Altona Mining Ltd. / Roseb100%
y
Copper Pty Ltd
90163 Longamundi Altona Mining Ltd. / Roseb100%
y
Copper Pty Ltd
90164 Blackard Altona Mining Ltd. / Roseb100%
y
Copper Pty Ltd
90165 Little Eva Altona Mining Ltd. / Roseb100%
y
Copper Pty Ltd
90166 Village Altona Mining Ltd. / Roseb100%
y
Copper Pty Ltd

Exploration Permit for Minerals (EPM) Cloncurr
y
Project
Number Name Holder Beneficial
Interest Held
9611 Happy Valley Roseby Copper (South) 100%
Pty
Ltd

14363 Bannockburn Roseby Copper Pty Ltd 100%
14370 Malakoff Roseby Copper (South) 100%
Pty
Ltd

14371 Mt. Angelay Roseby Copper (South) 100%
Pty
Ltd

25757 Burke Roseby Copper Pty Ltd 100%
25760 King Roseby Copper Pty Ltd 100%

Exploration Permit for Minerals (EPM) Roseby S
outh
Project

Number Name Holder Beneficial
Interest Held
25761 Wills Roseby Copper (South) 100%
Pty
Ltd

25759 Gray Roseby Copper (South) 100%
Pty
Ltd

Finnish Projects
Mining Licences/Mining Permits
Number Name Holder Beneficial
Interest Held
K7802 Hautalampi Vulcan Hautalampi Oy 100%
KL2015:0Särkiniemi Vulcan Kotalahti Oy 100%
004