Prospectivity

Previous Exploration

Interest in the farm Adjoining Geelvloer 197 was first aroused in 1973 when USA-based Phelps Dodge Corporation identified an aeromagnetic anomaly during a reconnaissance airborne survey. Subsequent geological mapping and geochemical surveys identified several zones of gossanous sub-outcrop over a strike of 17km to the east and west. The discovery of the sub-outcropping gossan was followed up by extensive regional and detailed geophysical and geochemical soil surveys and percussion drilling that confirmed the sulphide mineralisation extended to at least 650 m below surface (mbs).

In 1977 the project changed hands and became part of a Gencor managed Joint Venture with Union Corporation. Additional drilling and geophysics increased the known depth of sulphide mineralisation to at least 1,140 mbs. In addition to drilling, trenching and geophysical surveys were undertaken to evaluate the continuity of the mineralized horizons. After Gencor, the property was taken under option by Goldfields Mining and Development that conducted further regional geological and structural mapping and limited scout drilling. In early 1995, Pioneer Minerals (Pty) Ltd obtained the rights to the property and shortly afterwards formed a joint venture with Thabex. In 1997, Thabex exercised its rights to acquire the mineral rights and conducted several drilling campaigns that included 28 drill holes, totalling 3,441 m. The drilling was completed in October 2006. In 2007 Thabex completed a mineral resource estimate in terms of the Guidelines of the SAMREC Code (2000).

In 2021, Lukin Resources acquired the rights to Vaalkop and commissioned an independent review of the estimate to comply with the guidelines of the JORC Code (2012). The resource estimate is based on 92 drill holes (percussion and diamond) on the property (Figure 13).

^{Source: Pivot Mining Consultants (Pty) Ltd, Independent Geologist's Report
Figure 14. Vaalkop Exploration targets}

Planned Exploration

Lukin plans to complete the following activities at Vaalkop over the next two years:

• Test unexplored prospects along the ~10 km Vaalkop mineralised trend that hosts the Salt River deposit, including the Graafwater prospect (Figure 14);
• Increase the current resource base (24Mt) by >50% by drill out of extensions of the Salt River deposit and the Graafwater prospect in preparation for commissioning a pre-feasibility study; and
• Test the critical mineral potential at the Salt River deposit - Trace element analysis of massive sulphide zones show elevated molybdenum levels (up to 0.49%).

Two phases of exploration have been proposed: -

• Phase 1: Reconnaissance drilling of unexplored prospects along the Vaalkop mineralisation trend and infill drilling at the Saltwater deposit to test the molybdenum potential of the deposit; and
• Phase 2: Inferred resource drilling at Graafwater to declare a maiden resource for this prospect and extend the global resource base.

The proposed exploration program and budget translates into an estimated exploration expenditure of AUD 898,000 at Vaalkop over the next two years.

Refer to the proposed work program and budget in section 8.1 of the Competent Person’s Report in Annexure B for further details.