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Boardroom Media Chairman Interview

Myanmar Metals Limited (ASX:MYL) (“MYL” or “The Company”) is pleased to provide investors with an opportunity to listen to an interview with Chairman John Lamb on Boardroom Media.

The interview provides an overview of the Bawdwin Lead-Zinc-Silver-Copper Project in Myanmar and an update on the number of operational developments expected to be delivered in Q4 2017.

The audio broadcast will be available for access at 10am EADT Wednesday 4th October at https://boardroom.media/broadcast/?eid=59cda12c6d13462469ed6bbe. Alternatively, a copy of the interview will also be available on the Company’s website at www.myanmarmetals.com.au.

For further information please contact:

John Lamb, Chairman

Mob: +61 (0) 400 165 078

Email: j.lamb@myanmarmetals.com.au

 

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ARGONAUT APPOINTED AS FINANCIAL ADVISER FOR THE BAWDWIN CONCESSION

Myanmar Metals Limited (ASX: MYL) (Myanmar Metals or the Company) is pleased to announce that it has appointed Argonaut as its exclusive financial adviser.

Argonaut will assist the Company in delivering the optimal funding package for the option exercise and the future development of the Bawdwin Concession.

Argonaut are a specialist natural resources financial adviser with offices in Hong Kong and Perth with significant experience in international equity, debt and hybrid financing, having completed transactions totalling over $10 billion since 2007.

Argonaut’s presence and network in Asia as well as long term experience working on Asian related transactions ideally places them to support our Bawdwin Concession funding discussions which are underway.

Commenting on the appointment of Argonaut, Myanmar Metal’s Chairman and CEO, John Lamb said

“I am delighted that we have partnered with Argonaut. They provide the depth of experience, international presence and track record that will be critical to support the financing of the Bawdwin mine back into production.”

For further information visit https://myanmarmetals.com.au/

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MYL STRENGTHENS EXECUTIVE TEAM

Myanmar Metals Limited (“MYL” or the “Company”) is pleased to announce that it has secured the services of Mr Rowan Caren as Executive Director, Company Secretary and Chief Financial Officer.

Mr Caren has acted as Non-Executive Director, Company Secretary and CFO since joining the Board in June 2017. In making a permanent commitment to the company, Mr Caren has echoed the strong belief in the Company and the Bawdwin Project displayed by the Chairman, Mr Lamb, when he became an executive officer in October 2017.

Mr Lamb said “Rowan Caren joined the Company at the same time as I did in June 2017. Together with Jeff Moore we have worked as a strong and cohesive unit towards development of the Company’s key asset – the Bawdwin base metals project in Myanmar. Throughout that period, we have all been stretched in terms of maintaining external commitments. Mr Caren’s decision to commit to MYL long term will unlock access to a key management resource as the Company continues its rapid progress”.

Mr Caren has 25 years commercial experience as a Chartered Accountant, having qualified with PricewaterhouseCoopers in 1992. He has been involved in the minerals exploration industry for over twenty years and in 2004 created a specialist advisory consultancy. He has provided financial and corporate services to several listed and unlisted companies involved in the resources sector.

Mr Caren graduated with a Bachelor of Commerce (Accounting) from the University of Western Australia and is a Member of the Institute of Chartered Accountants in Australia.

Key terms of Mr Caren’s appointment are summarised in the schedule to this announcement. Issued on behalf of the Board of Directors.

 

SCHEDULE Consultancy Agreement: Material terms

  1. Term

    Mr Caren’s appointment as Executive Director, Company Secretary and Chief Financial Officer is effective from 1 March 2018. The term of his consultancy will continue until terminated in accordance with the Agreement.

  2. Remuneration
    1. Fixed remuneration: Base fee of $186,000 per annum, plus GST.
    2. Incentive package: Participation in the Company’s performance rights plan (as approved by shareholders at the 2017 AGM).
  3. Bonus entitlement

    Upon the occurrence of a change of control transaction, Mr Caren is entitled to a bonus payment of 12 months’ base fee, subject to the Company’s net assets exceeding the agreed minimum threshold at the time of the change of control taking effect (in the event of the change of control transaction comprising a scheme of arrangement).

  4. Termination:
    1. Company initiated termination by notice: 3 months’ notice in writing. A payment in lieu of notice may be made at the Company’s discretion. Mr Caren will also be entitled to a termination payment of 6 months’ base fee.
    2. Company initiated termination for illness: 1 months’ notice in writing. A payment in lieu of notice may be made at the Company’s discretion.
    3. Summary termination: Immediate termination upon the provision of notice in writing. No entitlement to a notice period or termination payment (except for any entitlements accrued as at the termination date).
    4. Executive initiated termination for breach: Immediate termination upon the provision of notice in writing.
    5. Executive initiated termination by notice: 3 months’ notice in writing (or such lesser period as may be agreed by the Company and Mr Caren at the time). A payment in lieu of notice may be made at the Company’s discretion.
    6. Early termination payment: If the Company’s circumstances lead it to terminate Mr Caren within the first 24 months, Mr Caren will be entitled to receive an additional payment of 6 months’ base fee.
    7. Corporations Act and Listing Rules limitation: The Company will not be required to pay to Mr Caren any benefits in connection with his termination which would exceed an amount permitted by the relevant provisions of the Corporations Act 2001 (Cth) or the ASX Listing Rules.
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HUNTER CAPITAL RESEARCH REPORT ON MYANMAR METALS

Investors in Myanmar Metals Limited (ASX: MYL) are advised that Hunter Capital Advisors has today published a research report on the Company.

Hunter Capital Advisors is an independent, full service corporate advisory firm and has a strong reputation within the mining sector. The research report provides an in-depth review of Myanmar Metals’ Bawdwin Project including a valuation.

To view a copy of the report please visit www.myanmarmetals.com.au under Research.

John Lamb Chairman and Chief Executive Officer

For More Information: John Lamb, Chairman and CEO Mob: +61 (0) 400 165 078 Email: j.lamb@myanmarmetals.com.au

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SHAREHOLDER UPDATE: DRILLING UNDERWAY AT BAWDWIN

Highlights:

  • 5,000m RC and Diamond Drilling Program has commenced at Bawdwin
  • In-country Project Manager appointed
  • Metallurgical test work underway
  • Substantial progress made in discussions with authorities in Myanmar

Myanmar Metals Limited (“MYL” or “the Company”) is pleased to report significant progress over the Christmas-New Year period, continuing 2017’s fast pace of work related to the world-class Pb Zn Ag Cu Bawdwin project.

Commencement of 2018 Drilling Program

On behalf of MYL’s partner and current tenement owner Win Myint Mo (WMM), MYL is pleased to report that drilling has commenced at Bawdwin. One diamond drilling rig is already operating and a second diamond rig and a reverse circulation (RC) rig have been mobilised and are on route to the project site.

Due for completion by the end of March, the program comprises approximately 5,000 metres of RC and diamond drilling and aims to provide sufficient density in the upper portion of the Bawdwin Deposit to establish a classification of “Indicated” in accordance with the JORC Code 2012 edition.

In addition, metallurgical and geotechnical information will be gathered. The program has been designed by CSA Global to suit the next phase of geological modelling and mine design and will be conducted by Titeline drilling. Valentis Resources has been engaged to provide all geological support services on site. MYL will report assay results as they become available commencing from mid- February.

Project Manager Appointed

MYL is also pleased to announce the appointment of experienced Australian geologist Tony Chisnall as Project Manager and Site Representative. Mr Chisnall will work alongside representatives of WMM and senior Valentis staff to oversee drilling and resource development work for the Bawdwin project.

Mr. Chisnall is a Member of the Australasian Institute of Mining and Metallurgy and a Competent Person as defined in the 2012 edition of the JORC Code. His career of over 20 years includes senior roles with Western Metals in Australia and Padaeng Zinc in Thailand. He holds a BSc from Canterbury University in New Zealand and a MSc in Ore Deposit Geology from UWA. His experience working in Thailand is of particular note and will be instrumental in helping MYL advance Bawdwin’s development.

Metallurgical Test Work Underway

In addition to the drilling program, metallurgical test work on composite samples selected from the 2017 drill core is underway.

Up to 250kg of samples are being prepared for analysis by ALS under the guidance of metallurgical consultant Battery Limits. Results are expected by the end of February.

Progress with Government Discussions

MYL and WMM have made substantial progress in discussions with the authorities in Myanmar. CEO and Chairman John Lamb commented:

“I am very pleased with our progress over the Christmas period and with the positive and constructive nature of our discussions with the relevant Myanmar authorities. This dialogue and the overall advancement made to date is encouraging.

Progress towards our goal to develop what is one of Asia’s most significant and under- developed zinc, lead and silver mines at Bawdwin remains well and truly on track.”

Discussions are continuing with both the Ministry of Natural Resources and Environmental Conservation (MONREC) and the Myanmar Investment Commission (MIC), and the Company is taking the necessary steps to fulfil and comply with regulatory and other requirements in Myanmar in order to obtain necessary project approvals.

John Lamb
Chairman and Chief Executive Officer

For More Information:

John Lamb, Chairman and CEO
Mob: +61 (0) 400 165 078
Email: j.lamb@myanmarmetals.com.au

Forward Looking Statements

The announcement contains certain statements, which may constitute “forward –looking statements”. Such statements are only predictions and are subject to inherent risks and uncertainties, which could cause actual values, results, performance achievements to differ materially from those expressed, implied or projected in any forward-looking statements.

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SCOPING STUDY INDICATES ROBUST DEVELOPMENT OPTION FOR BAWDWIN PROJECT

Highlights
• Scoping Study completed by CSA Global confirms the potential for a technically and financially robust project development at Bawdwin

• The Scoping Study builds on a new Inferred Mineral Resource estimate of 75.9 Mt at 4.6% Pb, 2.3% Zn, 0.25% Cu and 119 g/t Ag (ASX release of 1 December 2017) that is based on more than 56 kilometres of historical underground sampling and geological mapping of exploration drives and the open pit, almost 3000 metres of core drilling in 2017, and 669 metres of channel sampling in 2017.

• Despite the high data density and robust geological understanding, the absence of quality control data for the historical data, has led to a conservative decision to classify the Mineral Resource as Inferred. In accordance with ASX and ASIC guidance, MYL is restricted from disclosing forecast production and financial information in this announcement as a result of the Mineral Resource solely comprising Inferred Resources.

• The Scoping Study achieved its objective in providing MYL with justification to progress to a Feasibility Study following exercise of the Bawdwin option (once exercised). It also provided estimates of mine life, annual production, capital and operating costs, revenue and cash flow that informed recent discussions with the Ministry of Natural Resources and Environmental Conservation in Myanmar.

• Bawdwin was formerly a substantial mine, producing for over 80 years and with annual production of over 0.5 Mt per annum of high-grade silver, lead, and zinc-rich ore in its heyday (ASX release of 24 May 2017). This history, in combination with the extensive past data and excellent understanding of the geology, underpinned the decision to undertake the study on the Inferred Resource.

• The Scoping Study envisages a long-life, low-cost, low strip-ratio, 250 metre-deep open-pit mine with a conventional milling and flotation circuit to produce zinc and lead-silver copper concentrates.

• There is good potential to increase the envisaged open-pit Life of Mine production considering the lack of shallow drilling surrounding the current Mineral Resource.

• A new program of drilling is planned to commence in January 2018 leading to an updated Mineral Resource estimate in the second quarter with the aim of improving classification to Indicated in the first pit shell.

Cautionary statement

The Scoping Study has been undertaken to determine the potential viability of an open-pit mine with a conventional milling and flotation circuit to produce zinc and lead-silver-copper concentrates, and for the Board to reach a decision to proceed with a Feasibility Study.

The Scoping Study is a preliminary technical and economic study of the potential viability of the Bawdwin Project. The Scoping Study is based on low-level technical and economic assessments, and is insufficient to support estimation of an Ore Reserve, or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised. Further evaluation work and appropriate studies are required before MYL may be in a position to estimate any Ore Reserve or to provide any assurance of an economic development case.

To complete the Feasibility Study and undertake potential mine development outcomes as outlined in the Scoping Study, additional funding will be required. Investors should note that there is no certainty that MYL will be able to raise that amount of funding when needed. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of MYL’s existing shares.

In accordance with ASX and ASIC guidance, this announcement does not include any production targets or forecast financial information. This announcement does however contain other forwardlooking statements. The Board believes it has a reasonable basis for making such forward-looking statements and to expect that it will be able to fund the development of the Bawdwin Project upon successful delivery of key milestones. In particular, the Board notes the following:

• The Bawdwin Project is located on a granted Mining Concession with an existing Production Sharing Agreement with the Myanmar government.

• An Inferred Mineral Resource has a lower level of confidence than an Indicated Mineral Resource and that the JORC Code 2012 Edition advises that to be an Inferred Mineral Resource it is reasonable to expect that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration. Based on advice from relevant Competent Persons, the Company is confident that a significant portion of the Inferred Mineral Resource that accounts for Bawdwin resource will be upgraded to an Indicated Mineral Resource with further exploration work.

• The Bawdwin Project is based on a historic mine with a long history of lead, zinc and silver production. There is very extensive underground channel sampling, with 56 kilometres of sampling used in the Mineral Resource estimate. The estimate is classified as Inferred only in the absence of documented QAQC procedures and data for the historical sampling used in the estimate.

• The historical data was used for routine stope definition and exploration for over more than fifty years of mining at Bawdwin, and records of sampling and analysis at Bawdwin have been meticulously preserved and updated through its mining history and up to the present day. • The Mineral Resource includes remnant high-grade mineralisation and lower grade mineralisation that was not economic for historical underground mining. Large-scale underground mining ceased during World War Two and production never fully recovered as a result of Myanmar’s changing circumstances in the years that followed.

• The results of the 2017, 3000-metre drill programme and 669-metre open-pit channel sampling programme, support the validity of the underground sampling data. 3

• There is strong geological control for the resource model at Bawdwin interpreted from recent surface mapping and extensive historical underground mapping.

• The Mineral Resource estimate was depleted for past mining with digitised and georeferenced stope volumes based on level and floor plans that document square-set stope development from the 1920s to 2009.

• Myanmar Metals has a small but highly experienced board with a proven track record in developing and managing mining operations mining in Australia and globally, supported by the experienced technical team within CSA Global. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Scoping Study. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources.

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Myanmar Metals Limited (ASX: MYL) (“MYL” or “the Company”) is pleased to report that it has completed a Scoping Study on development of an open-pit mining operation at the Bawdwin Project in the Shan State of Myanmar. As previously reported, MYL holds an option over the Bawdwin Project with Win Myint Mo Industries Co. (“WMM”), the Myanmar company that holds the 38 km2 Mining Concession at Bawdwin under a production sharing agreement with Myanmar state mining company, Mining Enterprise No. 1.

The Scoping Study was completed by CSA Global and reported under the guidelines of the JORC Code 2012 Edition. The study is based on the updated Inferred Mineral Resource estimate for the Bawdwin Project of 75.9 Mt at 4.6% Pb, 2.3% Zn, 0.25% Cu and 119 g/t Ag reported under the JORC Code and announced on 1st December 2017. The Scoping Study is based on the development of an open-pit mining operation at Bawdwin with conventional milling and flotation circuits. The study has been completed on a project basis and does not take into account ownership or production-sharing terms.

The results of the Scoping Study confirm the potential of the Bawdwin Project to be redeveloped as a large-scale mining operation with robust project fundamentals, rapid capital pay-back, ongoing positive operational cash flow, and low technical risk.

The Bawdwin Project will be assessed more fully in a Definitive Feasibility Study that will be completed following exercise of the Bawdwin option.

The Scoping Study prepared by CSA is presented in a comprehensive report of 159 pages and was
completed over a period of 3 months, which involved:
• The review of all existing reports and data on the project;
• Site visits, review of recent drill core, and assessment of local site conditions;
• Modelling of the Mineral Resource including creation of wireframes and block model;
• Open pit optimisation; and
• Preparation of a Scoping Study to assess the technical and economic viability of open-pit
mining.

 

The report contains assessment, forecasts and designs relating to matters including:
• Project Development Vision
• Geology and Mineral Resource Estimate
• Life of mine schedule
• Processing
• Infrastructure
• Capital cost estimates
• Operating cost estimates
• Economic analysis
• Sensitivity analysis

The findings were presented in detail to the Minister of Natural Resources and Environmental Conservation in Myanmar on 1 December 2017.

Myanmar Metals Limited’s Chairman, John Lamb, commented:

“I am delighted that the Scoping Study confirms the Board’s long-held view of the outstanding potential and many advantages at Bawdwin. It describes a productive, low-cost open pit mine that generates an immediate return and funds the development of processing and mining infrastructure for the long-term.

The concept outlined in the study is straightforward and comprises three stages of pit cut-backs; use of the existing tunnel and railway corridor for ore transport; and treatment in a standard sulfide flotation plant. Concentrate produced would be sold to buyers in China via the Yunnan railway due to reach the Myanmar border at Ruili in 2018.

It is in every sense a new beginning for the mine and the local region; and an outstanding opportunity for the Company and its partners.”

Bawdwin Mine Background

The Bawdwin Mine in the northern Shan State in Myanmar was a globally significant lead, zinc and silver mine in the 1920’s and 1930’s. Large-scale production ceased during World War II. Through a combination of a difficult regulatory and political environment and lack of expertise and investment capital, the mine never returned to pre-war levels. It was nationalised in the 1960’s and while some foreign organisations drilled targets occasionally and sparsely, no modern exploration has been conducted on the site.

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Introduction

The Bawdwin Zinc-Lead-Silver-Copper Mine is located at 97°17′ 55.93″E and 23° 6′ 20.94″N in the northern Shan State of the Union of Myanmar, about 700 kilometres northeast of Yangon, the commercial capital. Bawdwin can be accessed by sealed road from the major regional centre of Lashio via Namtu where the old process plant and smelter are located. Namtu is approximately 71 kilometres northwest of Lashio, which takes between two and three hours by road. The Bawdwin mine is 37 kilometres and about one hour’s drive from Namtu.

Project Development Vision

Our Goal is to develop and operate a modern, safe, profitable, long-life mining and
processing operation.
• We will apply world-leading practices from Australia ensure to the project is technically and economically viable while also delivering excellent social and environmental outcomes.
• Community Involvement is important for our success and to ensure that local people
benefit from the mine.
• We will mine at Bawdwin and process ore into concentrate at or near Namtu.
• We will use – or re-purpose – as much existing infrastructure as is practical

The Scoping Study has been developed around the vision of a modern mechanised low-cost open-cut mining operation with the automation of mining and processing systems required to operate modern equipment.

The scale of mining and the mining equipment selection reflects a staged development strategy, mining intensity and operating cost requirements. Outsourcing of services to specialist contractors will provide certainty and reduce capital expenditure in early phases of the operation.

Outsourced services will be contracted through Build Own Operate Transfer agreements (BOOT).

The construction personnel and workforce will be housed in a mix of transportable style and locally constructed accommodation in the Bawdwin Upper and Lower village and Tiger Camp.

The existing village population of some 3000 will be the source of the new workforce employed and trained to operate the facilities. Some relocation of existing structures in the townships will be undertaken to enable construction of the new facilities and services.

The development of the modern mining and processing operation is staged to minimise investor risk while achieving a low-cost long-life operation, sound environmental outcomes, and positive community benefits.

Geology and Mineral Resource Estimate

The Bawdwin Scoping Study is based on the Mineral Resource estimate in Table 1 (below) reported in the Company’s ASX release dated 1st December 2017. This estimate is an update of the estimate reported to the ASX on 17th October 2017. The updated estimate is based on the same block model; all the input data and interpolation parameters and methodology are unchanged from those reported previously on 17th October 2017. The new estimate is based on the open pit optimisation study by CSA Global as part of the current Scoping Study which indicates that a reduced cut-off grade of 0.5% Pb above 750m RL is appropriate to reflect potential economic extraction.

The Mineral Resource has been classified as Inferred in accordance with guidelines contained in the JORC Code 2012 Edi�on. The Mineral Resource is contained in three separate zones, termed the Shan Lode, China Lode, and Meingtha Lode. Each includes high-grade massive sulphide zones that were mined historically underground (‘lode’ mineralisation) and lower-grade disseminated and stockwork mineralisation (‘halo’ mineralisation) that has been exploited in the open pit on the China Lode.

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Weathering and oxidation is deep on the ridges (20-50 m), but much thinner in the valleys. The existing open pit at Bawdwin has largely removed the weathered zone and fresh sulphides occur at surface in the pit. Only six percent of the estimated Mineral Resource is in the transitional and oxidised zones.

The oxidation surface is not well constrained by the limited drilling to date and will be more accurately defined by the next phase of planned drilling.

The estimate is based on drill-hole sampling, open pit channel and historical underground channel sampling. The topography over the deposit is constrained by a high-resolution DTM captured with drone survey in 2017. The Mineral Resource is classified as Inferred because existing data is sufficient to imply but not verify geological and grade continuity due to the absence of QAQC information for the historical underground data. The Inferred classification has considered all available geological and sampling information and the classification level is considered appropriate.

Mining

The Scoping Study focused on an open pit operation targeting mainly fresh sulphide mineralisation with a small amount of near surface oxide and transitional mineralisation. Whitle strategic planning software was used to generate economic open pit mining shells, staged cut-backs, and a high-level annual mining and processing schedule. Input data was collected from a variety of industry sources, similar operations, CSA Global database of costs, experience, and consultation with Myanmar Metals.

The parameters applied from this input data were used to generate a series of shells at varying revenue factors to identify the sequence of shells that would generate the highest value operation based on the available data. To most effectively manage cashflow, the mining sequence envisages three stages of development from the highest margin shell to the ultimate pit that generates the highest total discounted value.

The ultimate value pit has been identified as Shell-7 (250 metres deep), with the interim stages being Shell-3 and Shell-4. The envisaged mining shapes are depicted in the following images.

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Open pit mining to a depth of 250 metres at Bawdwin benefits from a naturally low stripping ratio owing to the favourable topography and large resource. It also benefits from low-cost ore transport utilising a conveyor in the Tiger Tunnel to Tiger Camp and a pipeline instead of road haulage to Namtu. These key factors contributed to the revised lower cut-off grade of 0.5% Pb applied by CSA Global in the revised Mineral Resource Estimate announced on 1 December 2017.

Processing

The historic processing facilities at Bawdwin and Namtu are no longer maintained and are not useable for future processing. In the absence of metallurgical testwork and considering that the historical information on recovery is unlikely to be relevant to a modern process plant, CSA Global assigned metallurgical parameters based largely on comparable polymetallic processing operations. For comparison, process plants that produce multiple concentrates by differential flotation were prioritised (e.g. Rosebery in Tasmania) over projects where concentrates are produced on a campaign basis (e.g. Golden Grove in Western Australia).

Averaged rounded recovery percentages were used to avoid any misconception regarding accuracy. These processing recoveries (as used in this study) are shown below for each element, based on a flotation plant producing a zinc concentrate and a combined lead, silver and copper concentrate. The average grade of concentrates is based on an assumed concentrate mass pull/upgrade factor that is typical of the proposed type of processing operation.

Infrastructure

There is a substantial amount of existing infrastructure at Bawdwin, including facilities for power generation (approx. 6 MW), flotation plant, potable water, mine shafts and several villages. Generally, the existing infrastructure is not suitable for the scale of the proposed mining and processing operation. The figure below shows potential sites for waste dumps, underground infrastructure including the Tiger Tunnel and portal and site roads.

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A large number of alternative options have been identified for development at Bawdwin. These include options for mining, processing, site access, transportation, water and power supply, and tailings storage facilities. The next stage of study will address these identified options to evaluate the best series of options to take forward into development

The currently envisaged site to develop an initial processing facility is at the Tiger Camp. This Scoping Study envisages that crushed ore would be pumped through a pipeline to a concentrator in Namtu. A tailings storage facility would be required adjacent to the concentrator and a location for this needs to be identified at the next stage of study.

The timing to develop infrastructure has been divided into several phases to manage capital expenditure and generate a practical sequence.

Infrastructure items identified in the study are tabulated below:

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Financial analysis

The Scoping Study results provide for industry competitive capital and operating costs for the Bawdwin Project.

The Company notes that there is high demand for zinc and lead concentrates in China and that it has been approached by parties seeking offtake agreements. The location of the project is particularly advantageous to smelter customers located in Yunnan province, with the construction of the Dali-Ruili rail link due for completion in 2018 as part of the strategic China-Myanmar corridor; and the already completed Oriental highway linking Mandalay to the Chinese border at Ruili (via Lashio, the local major centre in the Bawdwin-Namtu region of Shan State).

The Company has elected not to seek an offtake partner at this early stage, preferring to define the project fully before taking that step, which may include offtake partner financing.

Project funding

The Company has only recently completed a Scoping Study for the Bawdwin Project and is not currently funded for the estimated phase one development capital cost. The Company’s increased market capitalisation, reflects the achievement of key milestones in relation to its only substantial asset, the Bawdwin Project (over which MYL holds an exclusive option).

Robust Project, Strong Fundamentals, Staged Delivery

A key dimension of the Company’s strategy is the staged development and funding of the Bawdwin Project. Successful delivery of key development milestones, such as Pre-Feasibility and Definitive Feasibility Studies with appropriate economic metrics, are expected to support ongoing convergence of the Company’s market capitalisation with its future funding requirements.

A key dimension of the Company’s strategy is the staged development and funding of the Bawdwin Project. Successful delivery of key development milestones, such as Pre-Feasibility and Definitive Feasibility Studies with appropriate economic metrics, are expected to support ongoing convergence of the Company’s market capitalisation with its future funding requirements.

The Project’s positive technical and economic fundamentals as delivered in the Scoping Study, together with favourable commodity prices, provide a platform for MYL to advance discussions with potential strategic partners and traditional financiers. Furthermore, offtake partner financing is a common and effective option often used to fund mine and concentrator construction costs and the company considers a debt arrangement with an offtake partner to be a likely source of capital.

MYL’s Cash and Debt Position

MYL is in a strong position with cash of A$6.3 million and no debt, having retired A$2.75 million of debt in the period since 1 July 2017. The Company, under the new Board, has a history of successful capital raisings and its substantial shareholders comprise high-quality institutional investors, including Mark Creasy’s Yandal Investments (‘Yandal’), which recently converted loans and interest with a combined value of $2,745,000 into fully paid ordinary shares in MYL, giving Yandal a shareholding comprising approximately 13.47%.

 

Market Outlook

Global lead and zinc prices are historically high driven by strong demand for these important metals (in traditional uses such as corrosion-protection and in the rapidly growing battery sector) against tight supply. The LME holds less than one week’s supply of both metals and, despite privately held stocks and those warehoused on behalf of other metals exchanges, zinc and lead remain in short supply globally. The Company does not expect this situation to change markedly in the medium term. Silver has been in global deficit since 2000 and remains below its 10-year average price. Demand for silver is increasing both as a store of value and in industrial and medical uses and the company expects the current price level to be maintained, or increase, in the medium-term. The three key metals at Bawdwin all have strong market fundamentals for the 3-5 years ahead and give the company confidence of favourable price conditions in which to develop the Bawdwin project.

The Company also notes that the nature of a polymetallic deposit such as Bawdwin is to provide a natural hedge against price movements. For example, 10-year average prices for zinc and lead are both lower than the current market price; whilst the current silver price is lower (by 19.5%) than the 10-year average price. The net effect is very similar project financials whether the long or short-term price sets are used.

Project Funding

Given the above, including the positive results from the Scoping Study, the Company has concluded it has a reasonable basis to expect that the Project’s development capital cost could be funded following exercise of the option, the completion of a positive Definitive Feasibility Study and obtaining the necessary project approvals.

The Company is in discussions regarding a possible equity partner to share project funding and development costs, as announced to the ASX in the Quarterly Reports for June and September 2017, among others.

Conclusions

The Scoping Study for the proposed Bawdwin Project has returned positive results for the envisaged open pit mining operation supplying a processing plant produces a zinc concentrate and a combined lead, silver and copper concentrate. Accordingly, CSA Global has recommended further development and exploration of the Bawdwin project. The Scoping Study demonstrates that the proposed project has potential to deliver strong operating margins and that there is sufficient justification to further investigate the definition and development of the Bawdwin Mine.

Bawdwin – Next Steps

The results of this Scoping Study underpin ongoing detailed discussions with the Myanmar government. At the same time, work will commence on supplementary technical studies including drilling, metallurgy and environmental assessments. This work leads towards exercise of the option in May 2018; thereafter a Definitive Feasibility Study will be prepared.

John Lamb

Chairman and Chief Executive Officer

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MARKET UPDATE: PROGRESS ON THE BAWDWIN Pb Zn Ag Cu PROJECT

Highlights

  • Meeting with Ministry of Natural Resources and Environmental Conservation
  • Scoping Study completed
  • JORC 2012 compliant Resource update announced 1 December 2017
  • Metallurgical test-work program has commenced

    Myanmar Metals limited (“MYL” or “The Company”) is pleased to provide this update on progress on the Bawdwin project. As previously reported, MYL holds an option to take a controlling interest in the Bawdwin project with Win Myint Mo Industries Co. (“WMM”), the Myanmar company that holds the 38 km2 Mining Concession, subject to Myanmar government regulations and approvals.

    Meeting with Myanmar Ministry of Natural Resources and Environmental Conservation

    MYL is pleased to advise that Chairman and CEO John Lamb, together with representatives of WMM, met with the Minister for Natural Resources and Environmental Conservation and senior Ministry Heads of Department in the Myanmar capital, Naypyidaw, on Friday 1st December.

    During the 90-minute meeting, a detailed presentation was made describing the findings of the scoping study, and positive discussions were undertaken.

    Scoping Study:

    CSA Global has completed and issued the Bawdwin Open Pit Scoping Study, the findings of which have been shared with the Ministry of Natural Resources and Environmental Conservation.

    MYL awaits regulatory approval of its draft announcement which has been submitted to the ASX for review in accordance with ASX policy.

JORC 2012 Compliant Resource Update

On Friday 1st December, simultaneously with its presentation to the Ministry in Naypyidaw, the Company released a revised mineral resource estimate for the Bawdwin Project of 75.9 Mt at 4.6% Pb, 2.3% Zn, 0.25% Cu and 119 g/t Ag using a cut-off grade of 0.5% Pb above the 750m RL and a cut- off grade of 2% Pb below the 750m RL; based on the work contained in the Scoping Study. Please refer to the schedule of this announcement for the breakdown of the revised mineral resource estimate.

This announcement was re-issued on December 4th with a revised header confirming that the JORC 2012 mineral resource classification remains Inferred.

Metallurgical Testwork:

Under ongoing guidance from CSA Global, Australian-based metallurgical consultants BatteryLimits have been engaged to provide expert metallurgical advice on the Bawdwin deposit.

Supported by WMM and Valentis Resources, work has begun to select representative composite samples of expected high-grade and low-grade mill feed from existing diamond drill core to be sent for laboratory analysis by ALS in Perth.

BatteryLimits will review the results and provide guidance on expected metallurgical recoveries and considerations for the design of the Bawdwin process flow-sheet.

This will be the first independent metallurgical testwork conducted on Bawdwin in over 30 years.

 

The announcement contains certain statements, which may constitute “forward –looking statements”. Such statements are only predictions and are subject to inherent risks and uncertainties, which could cause actual values, results, performance achievements to differ materially from those expressed, implied or projected in any forward-looking statements.

Competent Person Statements

The information in this report that relates to mineral resources is extracted from the Company’s ASX announcement entitled ‘Bawdwin Mineral Resource’ dated 1 December 2017. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all the material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

APPENDIX: JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria JORC Code explanation Commentary

Sampling techniques

• Nature and quality of sampling (e.g. 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.
• Include reference to measures taken to ensure sample representivity

The 2017 evaluation programme at Bawdwin included diamond core drilling and systematic channel sampling in the open pit.
The diamond core drilling was completed from February to June 2017 using PQ, HQ and NQ triple tube diameter coring. A total of 21 diamond core drill holes were completed, of which two were redrills, for a total of 2965.6 metres.

and the appropriate calibration of any measurement tools or systems •
used. to Intertek Laboratories for sample preparation in Yangon, Myanmar

• 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 (e.g. ‘reverse circulation drilling was used to obtain 1
m samples from which 3 kg was pulverised to produce a 30g 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 (e.g.
submarine nodules) may warrant disclosure of detailed information. •

and then analysis in Manila, Philippines. The sample interval was nominally 1 metre or to geological and mineralisation boundaries. Channel sampling in the open pit sampling was completed as part of a surface geological mapping programme in late 2016. Systematic channel sampling was completed by a team of Valentis and Win Myint Mo geologists over most of the available open pit area wherever clean exposure was accessible. A total of 435 samples were collected from 47 channels totalling 1790.8 metres.

Samples were typically 1.5m in length or to geological and mineralisation boundaries. Approximately 3kg of representative sample was systematically chipped from cleaned faces. Samples were despatched to Intertek Laboratories for sample preparation in Yangon, Myanmar and then analysis in Manila, Philippines.

Drill core was geologically logged, cut and then 1⁄2 core samples sent

• The underground sampling data is an extensive historical data set that was completed as part of mine development activities. The data set comprises systematic sampling from development drives, cross cuts, ore drives and exploration drives. This data date largely from the 1930s until the 1980s and utilised consistent sampling and analytical protocols through the mine history. Sampling consisted of 2-inch (5cm) hammer/chisel cut continuous channels sampled at 5 feet (1.5m) intervals at waist-height along both walls of across-strike drives and across the backs of strike drives. Sample weights were around 5 pounds (2.3kg) were analysed at the Bawdwin Mine site laboratory using chemical titration methods. Results were recorded

Criteria JORC Code explanation Commentary

in ledgers. Averaged results from each wall of the exploration cross- cuts were recorded on the level plans.

Drilling techniques

• Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air • blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple
or standard tube, depth of diamond tails, face-sampling bit or other
type, whether core is oriented and if so, by what method, etc).

Drilling was completed by Titeline Valentis Drilling Myanmar (‘TVDM’) using two Elton 500 drill rigs. Drilling is a combination of triple tubed PQ, HQ and NQ diameter diamond coring. Holes were typically collared in PQ, then reduced to HQ around 50m, and later to NQ if drilling conditions dictated. Holes ranged from 63.4 metres to 260.1 metres depth.

• Attempts were made to orientate the core but the ground was highly fractured and broken with short drilling runs. Obtaining consistently meaningful orientation data was very difficult.

Drill sample recovery

• Method of recording and assessing core and chip sample recoveries and results assessed.

• Measures taken to maximise sample recovery and ensure representative nature of the samples.

• 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.

• To maximise core recovery, triple tube PQ, HQ and NQ core drilling was used, with the drilling utilising TVDM drillers experienced in drilling difficult ground conditions. Drill penetration rates and water pressure were closely monitored to maximise recovery.

• During the diamond drilling the length of each drill run and the length of sample recovered was recorded by the driller (driller’s recovery). The recovered sample length was cross checked by the geologists logging the drill core and recorded as the final recovery.

• Core recoveries were variable and often poor with a mean of 80% and a median of 87%, with lowest recoveries in the 10 to 30% range. Low recoveries reflect poor ground conditions and previously mined areas. Core recoveries were reviewed and two intervals were excluded due to very poor recovery.

• At present, no relationships between sample recovery and grade bias due to loss/gain of fines or washing away of clay material has been identified. It is assumed that the grade of lost material is similar to the grade of the recovered core.

• For channel chip sampling, every effort was made to sample systematically across each sample interval with sampling completed by trained geologists.

Logging • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate

Mineral Resource estimation, mining studies and metallurgical

studies.
• Whether logging is qualitative or quantitative in nature. Core (or

• All diamond core samples were geologically logged in a high level of detail down to a centimetre scale. Quantitative logging for lithology, stratigraphy, texture, hardness, RQD and defects was conducted using defined logging codes. Colour and any other additional qualitative comments are also recorded.

Criteria JORC Code explanation Commentary

costean, channel, etc) photography.
• The total length and percentage of the relevant intersections logged.

• The 2016 open pit channel rock samples were systematically geologically logged and recorded on sample traverse sheets.

• All drill core and open pit sampling locations were digitally photographed.

• The underground sampling data has no geological logging, however geological mapping was completed along the exploration drives and is recorded on level plans. Historical plan and section geological interpretations have been used in these areas to assist in geological model development.

Sub- • sampling techniques • and sample preparation •

If core, whether cut or sawn and whether quarter, half or all core taken.
If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

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

• All core was half-core sampled. Most core was cut using an electric diamond saw and some more friable intervals were split manually. All core for sampling was pre-marked with the cut line, and only the left-hand side of the core was sent for assay to maintain consistency.

• The core sampling intervals were generally at one metre intervals which were refined to match logged lithology and geological boundaries. A minimum sample length of 0.5m was used.

• No sub-splitting of the open pit chips samples was undertaken. Sample lengths ranged from 1 to 2m (typically 1.5m). Sample intervals were refined to match geological boundaries.

• The historical underground samples do not appear to have been sub-split.

sample preparation technique.

  • Quality control procedures adopted for all sub-sampling stages to

    maximise representivity of samples.

  • 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.

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

    being sampled.

Quality of • The nature, quality and appropriateness of the assaying and • assay data laboratory procedures used and whether the technique is considered
and partial or total. • laboratory • For geophysical tools, spectrometers, handheld XRF instruments, etc, tests the parameters used in determining the analysis including instrument

make and model, reading times, calibrations factors applied and their

derivation, etc.
• Nature of quality control procedures adopted (e.g. standards, blanks, •

duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

The Valentis diamond drilling and open pit channel samples were all sent to Intertek Laboratories in Yangon for sample preparation.
All samples were dried and weighed and crushed to in a Boyd Crusher. A representative split of 1.5kg was then pulverised in a LM5 pulveriser. A 200-gram sub-sample pulp was then riffle split from the pulverised sample. The crusher residue and pulverised pulp residue were stored at the Yangon laboratory.

Sample pulps were sent to the Intertek analytical facility in Manila, Philippines where they were analysed using ICP-OES – Ore grade 4 acid digestion. Elements analysed were Ag, Fe, Cd, Co, Ni, Pb, Cu, Mn, S and Zn.

• Quality Control (QAQC) samples were submitted with each assay batch (certified reference standards, blanks and duplicate samples). Laboratory inserted QAQC samples were also analysed. All assay

Criteria JORC Code explanation Commentary

results returned were of acceptable quality based on assessment of

the QAQC assays.

  • The underground data was assayed by the Bawdwin mine laboratory

    on site. Bulk samples were crushed in a jaw crusher, mixed, coned and quartered. Two 100g samples were then dried and crushed in a ring mill to approximately 100 mesh. Two 0.5-gram homogenised samples were taken for lead and zinc titration using Aqua Regia (Pb) and Nitric acid (Zn). RSG inspected the laboratory in 1996 and noted it to be “clean, and great pride is taken in the conditions and quality of the work”. The laboratory remains operational and CSA Global’s review in 2017 reached similar conclusions to RSG. Results for Zn and Pb were reported to 0.1%.

  • There is no QAQC data for the historical underground sampling data.

Verification of sampling and assaying

• The verification of significant intersections by either independent or alternative company personnel.

• The use of twinned holes.
• Documentation of primary data, data entry procedures, data

verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data.

• All diamond drill core samples were checked, measured and marked up before logging in a high level of detail.

• The diamond drilling, sampling and geological data were recorded into standardised templates in Microsoft Excel by the logging/sampling geologists.

• Geological logs and associated data were cross checked by the supervising Project Geologist

• Laboratory assay results were individually reviewed by sample batch and the QAQC data integrity checked before uploading.

• All geological and assay data were uploaded into an Access database.

• The Access database was loaded into Micromine databases. This data was then validated for integrity visually and by running systematic checks for any errors in sample intervals, out of range values and other important variations.

• All drill core was photographed with corrected depth measurements before sampling.

• No specific twin holes were drilled; however, two daughter holes were inadvertently cut due to challenging drilling conditions during re-entry through collapsed ground. The daughter holes intersected mineralisation of very similar tenor and grade to the parent hole.

• Historical underground sampling data was captured off hard copy mine assay level plans. These plans show the development drives

Criteria JORC Code explanation Commentary

on the level along with the sampling traverse locations and Ag, Pb, Zn and Cu values. This process involved the systematic digital scanning of the various mine assay level hard copy plans, along with manual data entry of the assay intervals and assay results by Project Geologists and assistants. Co-ordinates of sampling traverse locations were scaled off the plans (in the local Bawdwin Mine Grid). Data was collated into spreadsheets and then uploaded into Micromine. Sampling traverses were loaded as horizontal drillholes. The channel samples were systematically visually checked in Micromine against the georeferenced mine assay plans. The data was further validated by running systematic checks for any errors in sample intervals, out of range values and other important variations. Any data that was illegible or could not be accurately located was removed from the database. Underground channel sample databases were made for the Shan, Chin and Meingtha Lodes and associated mine development. These were later uploaded into a master Access database.

• There is no access to the underground sampled drives so check sampling has not been undertaken.

Location of data points

• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

• Specification of the grid system used.
• Quality and adequacy of topographic control.

• The diamond drilling and pit mapping and channel sampling all utilised UTM WGS84 datum Zone 34 North.

• All diamond drill holes and pit mapping sampling traverse locations were surveyed using a Differential Global Positioning System (DGPS). The DGPS is considered to have better than 0.5m accuracy.

• All diamond drill holes have downhole surveys. These were taken using a digital single shot camera typically taken every 30 metres.

• Historically the underground and open pit mines operated in a local survey grid, the ‘Bawdwin Mine Grid’. This grid is measured in feet with the Marmion Shaft as its datum. A plane 2D transformation was developed to transform data between the local Bawdwin Mine Grid and UTM using surveyed reference points.

• Historical mine plans and sections were all georeferenced using the local Bawdwin Mine grid. The outlines of stopes, underground sample locations, basic geology and other useful information was all digitised in the local mine grid. This was later translated to UTM for

Criteria JORC Code explanation Commentary

use in geological and resource modelling.

  • The historic underground channel sampling data is scaled off historic

    A0 paper and linen mine plans which may have some minor

    distortion due to their age.

  • The underground sampling locations were by marked tape from the

    midpoint of intersecting drives as a reference. They appear to be of

    acceptable accuracy.

  • Historically within the mine each level has a nominal Bawdwin grid

    elevation (in feet) which was traditionally assumed to be the elevation for the entire level. It is likely that these levels may be inclined for drainage so there is likely to be some minor differences in true elevation (<5 metres)

  • The topography used for the estimate was based on a GPS drone survey completed by Valentis. This is assumed to have <1 metre accuracy and it was calibrated against the Bawdwin Mine UTM survey of the open pit area and surveyed drill hole collars. This survey is of appropriate accuracy for the stage of the project.

Data spacing • and • distribution

Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and

The diamond drill holes completed at the open pit are spaced on approximately 70 metre spaced sections and were designed to provide systematic coverage along the strike/dip of the China lode. Three drill holes were drilled at the Meingtha Lode on 50 metre spaced sections and two holes drilled at the Shan Lode on 100 metre spaced sections.

classifications applied.
• Whether sample compositing has been applied.

  • The open pit sampling was done on accessible berms and ramps. These traverses range from 10 metres to 30 metres apart.
  • The historical underground samples are generally taken from systematic ore development cross cuts. These are typically on 50 to 100 feet spacings – 15 metres to 30 metres. Strike drives along mineralised lodes demonstrate continuity

Orientation of data in relation to geological structure

• Whether the orientation of sampling achieves unbiased sampling of possible 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 should be assessed and reported if material.

• Drill holes were generally drilled on 065 azimuth (true) which is perpendicular to the main north and NNE striking lodes. Holes were generally inclined at -50 degrees to horizontal.

• The open pit channel sampling sample traverses were orientated perpendicular to the main trend of mineralisation where possible. However due to the orientation of the pit walls in many areas, sampling traverse are at an oblique angle to the main mineralised

Criteria JORC Code explanation Commentary

trend.

  • Underground sampling data consists largely of cross strike drives

    which are orientated perpendicular to the steeply dipping lodes. The data set also contains sampling from a number of along-strike ore drives. These drives are generally included within the modelled lodes which have hard boundaries to mitigate any smearing into neighbouring halo domains.

  • The drilling orientation is not believed to have caused any sampling bias.

Sample • security

The measures taken to ensure sample security.

• Drill core was taken twice daily from the drill rig, immediately following completion of day shift and night shift respectively.

• Core was transported to the core facility where it was logged and sampled.

• Samples were bagged and periodically sent to the Intertek laboratory in Yangon for preparation. All samples were delivered by a Valentis geologist to Lashio then transported to Yangon on express bus as consigned freight. The samples were secured in the freight hold of the bus by the Valentis geologist. The samples collected on arrival in Yangon by a Valentis driver and delivered to the Intertek laboratory.

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

Integrity of all data (drill hole, geological, assay) was reviewed before

reviews

being incorporated into the database system. • No external reviews have been completed

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria JORC Code explanation Commentary

Mineral • tenement
and land
tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

• The Bawdwin Mine is in NE Shan State, Myanmar
• The project owner is Win Myint Mo Co. Ltd (“WMM”) who hold a

Mining Concession which covers some approximately 38 square

kilometres.
• WMM has a current Production-sharing Agreement with the Myanmar

Government.

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

Criteria JORC Code explanation Commentary

known impediments to obtaining a licence to operate in the area. • Myanmar Metals holds an exclusive option agreement with WMM, that has been extended to May 2018, under which it can acquire an

85% interest in the Project from WMM subject to approval by the Myanmar government

Exploration done by other parties

• Acknowledgment and appraisal of exploration by other parties.

• The Bawdwin Mine was operated as an underground and open pit base metal (Pb, Zn, Ag, Cu) mine from 1914 until 2009.

• The only modern study on the mine was completed by Resource Service Group (RSG) in 1996 for Mandalay Mining. RSG compiled the historic underground data and completed a JORC (1995) Mineral Resource estimate. The digital data for this work was not located and only the hardcopy report exists

Geology •

Deposit type, geological setting and style of mineralisation.

• The Bawdwin deposit is hosted in volcanic (Bawdwin Tuff), intrusive (Lo Min Porphyry) and sedimentary (Pangyun Formation) rocks of late Cambrian to early Ordovician age.

• The historic mine was based on three high-grade massive Pb-Zn-Ag- Cu sulphide lodes, the Shan, China and Meingtha lodes. These lodes were considered to be formed as one lode, and are now offset by two major faults the Hsenwi and Yunnan faults.

• The major sulphides are galena and sphalerite with lesser amounts of pyrite, chalcopyrite, covellite, gersdorffite, boulangerite, and cobaltite amongst other minerals.

• The lodes are steeply-dipping structurally-controlled zones and each lode incorporated anastomosing segments and footwall splays.
• The lodes occur within highly altered Bawdwin Tuff which hosts

extensive stockwork and disseminated mineralisation as well as narrow massive sulphide lodes along structures. This halo mineralisation is best developed in the footwall of the largest China Lode.

• The main central part of the mineralised system is approximately 2 km in length by 400m width, while ancient workings occur over a strike length of about 3.5 km

• The upper portion of the China Lode was originally covered by a large gossan which has been largely mined as part of the earlier open pit. The current pit has a copper oxide zone exposed in the upper parts, transitional sulphide mineralisation in the central areas and fresh sulphide mineralisation near the base of the pit

Criteria JORC Code explanation Commentary

• The Bawdwin deposit is interpreted as a structurally-controlled magmatic-hydrothermal replacement deposit emplaced within a rhyolitic volcanic centre

Drill hole • Information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
o easting and northing of the drill hole collar

o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar

o dip and azimuth of the hole
o down hole length and interception depth o hole length.

• All collar and composite data are provided in tables in the body of the document or as Appendices

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

Length-weighted composites have been reported based on lower cut- off criteria that are provided in the composite tables, primarily 2.5% Pb or 50 g/t Ag. Additional composites based on cut-off of 4% Zn or 0.5% Cu have been reported to highlight zinc & copper-rich zones. No top-cut has been applied. The Bawdwin deposit includes extensive high grade massive sulphide lodes that constitute an important component of the mineralisation; top-cuts will be applied if appropriate during estimation of mineral resources

Composite incorporate a maximum of 2 metres internal waste

methods

In reporting Exploration Results, weighting averaging techniques, • maximum and/or minimum grade truncations (e.g. cutting of high
grades) and cut-off grades are usually Material and should be stated.

  • 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.
  • The assumptions used for any reporting of metal equivalent values should be clearly stated.


• Metal equivalents are not reported here.

Relationship between mineralisatio n widths and intercept lengths

• • •

These relationships are particularly important in the reporting of Exploration Results.
If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).

• Drill holes were orientated at an azimuth perpendicular to the main orientation of mineralisation with a dip at about 40-50° from the dip of mineralisation; reported drill composite intercepts are down-hole intervals, not true widths

• Channel sampling was at variable orientation dependent on the orientation of pit faces; reported drill composite intercepts are down- hole intervals, not true widths

Diagrams • Appropriate maps and sections (with scales) and tabulations of • Diagrams that are relevant to this release have been included in the intercepts should be included for any significant discovery being main body of the document.
reported These should include, but not be limited to a plan view of

Criteria JORC Code explanation Commentary

drill hole collar locations and appropriate sectional views.

Balanced • Where comprehensive reporting of all Exploration Results is not • Results have been reported for all drill holes and channels to the cut- reporting practicable, representative reporting of both low and high grades off criteria provided

and/or widths should be practiced to avoid misleading reporting of Exploration Results.

Other • substantive exploration
data

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

• All relevant data have been reported

Further work •

The nature and scale of planned further work (e.g. tests for lateral

• The details of additional work programmes will be determined by the results of the Mineral resource estimate and Scoping Study that are currently underway.

• It is envisaged that a substantial drilling program will be undertaken to improve confidence in the Mineral Resource and to test extension targets, supported by geology, geochemistry and geophysics

extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions,

including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

Section 3: Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

Criteria

JORC-Code Explanation

Commentary

Database integrity

• Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.

• Data validation procedures used.

• All historical underground drive sampling data was compiled into an Access database.
• Diamond drilling and open pit sampling data was also compiled into an Access database. • Data was imported into Micromine tables and drilling/underground sampling databases

constructed. These were validated in Micromine for inconsistencies, overlapping intervals, out

of range values, and other important items. • All data was visually checked.

Criteria JORC-Code Explanation Commentary

Site visits • Comment on any site visits undertaken by the Competent Person and the outcome of

those visits.
• If no site visits have been undertaken

indicate why this is the case.

• Dr. Neal Reynolds, a director of CSA Global, conducted site visits to the project area in August and October 2017. Although drilling was not underway, drill collars were observed and checked and drill core was examined and mineralisation in the open pit was observed. The historical systematic documentation of mining and exploration development, sampling and assaying was confirmed, and the assay laboratory was visited.

Geological interpretation

• Confidence in (or conversely, the • uncertainty of) the geological interpretation
of the mineral deposit.

• Nature of the data used and of any assumptions made.

• The effect, if any, of alternative
interpretations on Mineral Resource • estimation.

• The use of geology in guiding and • controlling Mineral Resource estimation.

• The factors affecting continuity both of
grade and geology. •

The Bawdwin Mine has a long underground and open pit mining history. The geological interpretation used for the resource estimate is based on historical sectional and plan underground geology interpretations and recent open pit mapping and new diamond drilling information. Stoped areas were also modelled and these provide a useful guide to the geometry and orientation of the major lodes. This data has been used to create a wireframed 3D model of geology, structure and mineralisation.

Underground and open pit channel sampling, drill hole assay results have formed the basis for the geological interpretation.
The major lodes were modelled in Micromine primarily in plan view and additionally in section view to integrate drill hole data. 3.5% Pb cut-off grade was applied for interpretation of the major lodes.

Surrounding the major lodes, a “halo” zone was modelled based on 0.5% Pb cut-off grade and

represents an alteration envelope around the high-grade lodes

  • No alternate interpretations have been considered as the overall geometry of the mineralisation

    is generally well understood

  • The grade and to a lesser degree lithological interpretation forms the basis for the modelling.

Dimensions • The extent and variability of the Mineral Resource expressed as length (along

strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.

• The currently interpreted mineralisation of the Bawdwin area extends for approximately 1.8 km along a 325° northwest strike. The dip angle of the zone varies from -70 degrees to -90 degrees with most common dip angle at -80 degrees. The zone extends from surface to 475m below the surface.

Estimation and modelling techniques

• The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of

• Grade estimation was by ordinary kriging (OK) using Micromine 2016.1 software. The interpretation was extended perpendicular to the corresponding first and last interpreted plan levels to the distance equal to a half distance between the adjacent underground levels.

• CSA Global carried out the reported Mineral Resource estimate in September – October 2017. • The OK estimate was completed concurrently with two check Inverse Distance Weighting

(IDW) estimates. The OK estimate used the parameters obtained from the modelled

variograms. The results of the check estimates correlate well. • No deleterious or non-grade variables were estimated.

Criteria JORC-Code Explanation Commentary

computer software and parameters used. • • The availability of check estimates,

The block model was constructed using a 5 m E x 10 m N x 10 m RL parent block size, with sub-celling to 1 m E x 2 m N x 2 m RL for domain volume resolution. The parent cell size was chosen on the basis of the general morphology of mineralised zones and in order to avoid the generation of large block models. The sub-cell size was chosen to maintain the resolution of the mineralised zones. The sub-cells were optimised in the models where possible to form

previous estimates and/or mine production
records and whether the Mineral Resource
estimate takes appropriate account of such
data. larger cells.

  • The assumptions made regarding recovery • of by-products.
  • Estimation of deleterious elements or other • non-grade variables of economic
    significance (e.g. Sulphur for acid mine drainage characterisation).
  • In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.
  • Any assumptions behind modelling of selective mining units.

The search radii were determined by means of the evaluation of the semivariogram parameters.
The first search radius was selected to be equal to the block size dimensions to use the grades from the workings that intercepted the block. The second search radius was selected to be equal to two thirds of the semivariogram long ranges in all directions. Model cells that did not receive a grade estimate from the first interpolation run were used in the next interpolation with greater search radii equal to full long semivariogram ranges in all directions. The model cells that did not receive grades from the first three runs were then estimated using radii incremented by the full long semivariogram ranges. When model cells were estimated using radii not exceeding the five full semivariogram ranges, a restriction of at least three samples from at least two drill holes was applied to increase the reliability of the estimates.

• No selective mining units were assumed in this estimate.

Estimation • and modelling techniques • (continued)

Any assumptions about correlation between variables.
Description of how the geological interpretation was used to control the resource estimates.

• No strong correlations were found between the grade variables estimated.
• Grade envelopes were defined for Pb based on 3.5% Pb grade to define high grade lodes and

0.5% Pb for the “Halo” zone. Hard boundaries between the grade envelopes were used to

select sample populations for grade estimation.
• Statistical analysis to determine top cut grade values was carried out separately for each

element (Pb, Zn, Cu, Ag) and separately for high grade lodes and the “Halo” zone.
• Validation of the block model included comparison of the block model volume to the wireframe

volume. Grade estimates were validated by statistical comparison with the drill data, visual comparison of grade trends in the model with the drill data trends, and by using a second interpolation technique.

• No reconciliation data is available.

  • Discussion of basis for using or not using grade cutting or capping.
  • The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.

Moisture • Whether the tonnages are estimated on a • The tonnages are estimated on a dry basis dry basis or with natural moisture, and the

method of determination of the moisture content.

Criteria JORC-Code Explanation Commentary

Cut-off • The basis of the adopted cut-off grade(s) • The Mineral Resource above 750 metre RL was reported at 0.5% Pb and it reflects the pit parameters or quality parameters applied. optimisation which demonstrates potential for economic extraction in an open pit to this depth. • A higher cut-off grade of 2% Pb has been applied to the reported Mineral Resource below the

750metre RL that has potential for eventual economic extraction by underground mining.

Mining factors • or
assumptions

Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.

• A Scoping Study including a pit optimisation is currently assessing the open pit development opportunity at Bawdwin. It is expected that deeper parts of the deposit will be amenable to underground mining.

Metallurgical factors or assumptions

• The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.

• It is assumed that Pb, Zn, Cu and Ag sulphide mineralisation can all be economically extracted using conventional flotation methods. These were all produced historically at the Bawdwin Mine and Namtu Smelter Complex.

• The oxide and transitional portions of the resource represent a minor proportion of the total resource. The historic Pb-oxide concentrator plant had difficulties in treating the mixed sulphide/oxide ores (Pb recoveries of 30%).

• A modern metallurgical test work program is required.

Criteria JORC-Code Explanation Commentary

Environmental factors or assumptions

• Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.

• Suitable sites for waste dumps are located in the neighbouring ER Valley.
• The Pangyun creek that flows on the margins of the deposit will require a diversion for a large

open pit
• Ore processing sites are undergoing further evaluation but there are possible options to pump

a slurry to Namtu along a pipeline following the old railway line to a new processing plant.

Bulk density

• Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.

• The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit.

• Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.

• A total of 625 bulk density measurements were taken from a suite of mineralised and un- mineralised drill core using conventional water immersion techniques.

• The bulk density of mineralisation increases with sulphide content and hence Pb, Zn and Cu metal grade.

• For mineralised lodes and halo mineralisation bulk density has been estimated using a formula which assumes Pb is present as galena, Zn is present as sphalerite and Cu is present as chalcopyrite, with the remainder of the rock is gangue. The estimated values were calibrated against the measured densities from drill-core.

• Based on the bulk density measurements a density of 2.0 was used for oxide ore, 2.2 for transitional ore, 2.40 for un-mineralised Bawdwin Tuff and 2.40 for Lo Min Porphyry.

Criteria JORC-Code Explanation Commentary

Classification

• The basis for the classification of the • Mineral Resources into varying confidence categories.

• Whether appropriate account has been • taken of all relevant factors (ie relative confidence in tonnage/grade estimations, • reliability of input data, confidence in

The Inferred Mineral Resource classification is based on the evidence from the available drill hole and channel sampling. This evidence is sufficient to imply but not verify geological and grade continuity.
The Inferred classification has considered all available geological and sampling information, and the classification level is considered appropriate for the current stage of this project.
The open pit mapping and diamond drilling all have been carried in accordance with modern industry best practice standards and have QAQC data to support the assay data. The historic underground sampling has no assay QAQC. The data quality is acceptable for the classification of Inferred.

continuity of geology and metal values, quality, quantity and distribution of the data).

• Whether the result appropriately reflects the Competent Person’s view of the deposit.

  • The overall structure of the major lodes is well understood from the underground data and open pit mapping.
  • The Mineral Resource estimate appropriately reflects the view of the Competent Person.

Audits or • The results of any audits or reviews of • Internal audits were completed by CSA Global which verified the technical inputs, reviews. Mineral Resource estimates. methodology, parameters and results of the estimate.

Criteria JORC-Code Explanation Commentary

Discussion of relative accuracy/ confidence

• Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.

• The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.

• These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

• The relative accuracy of the Mineral Resource estimate is reflected in the reporting of the Mineral Resource to an Inferred classification as per the guidelines of the 2012 JORC Code.

• The statement refers to global estimation of tonnes and grade.

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Bawdwin Mineral Resource Increase

Highlights:

  • A revised Inferred Mineral Resource of 75.9 Mt at 4.6% Pb, 2.3% Zn, 0.25% Cu and 119 g/t Ag has been estimated for the Bawdwin project based on a cut-off grade of 0.5% Pb above the 750m RL and a cut-off grade of 2% Pb below the 750m RL.
  • The revised estimate was increased to include 34 million tonnes of low-grade material within the block model that was not classified in the previous Mineral Resource estimate (ASX release 17 October 2017) as it fell below a 2% Pb cut-off grade.
  • Revised estimate includes 66.5 Mt at 4.2% Pb, 2.2% Zn, 0.25% Cu and 112 g/t Ag above the 750m RL (0.5% Pb cut-off) and 9.4 Mt at 7.9% Pb, 3.4% Zn, 0.2% Cu and 165 g/t Ag below the 750m RL (2% Pb cut-off).
  • A recently completed open pit optimisation study by CSA Global as part of the current Scoping Study indicates that a reduced cut-off grade of 0.5% Pb above 750m RL is appropriate to reflect potential economic extraction.
  • The pit optimisation suggests that most of the resource above the 750m RL will fall within the final pit shell, and there is potential to increase this proportion through extending shallow resources by drilling.
  • The remaining resource below the 750m RL supports the potential for a future underground mine at Bawdwin.
  • The revised Mineral Resource estimate is underpinned by more than 56 kilometres of historical underground sampling and geological mapping of exploration drives, supported by almost 3000 metres of diamond drilling undertaken in 2016-17; geological mapping of mineralisation in the dormant open pit; and 669 metres of channel sampling
  • The Inferred classification despite high data density reflects the absence of QAQC information for historical data.
  • 92% of the Mineral Resource is in the preferred Fresh sulphide zone with 8% in Transitional and Oxide zones.
  • Much of the original in-situ resource remains un-mined – the reported estimate reflects 15% depletion, based on modelled void volumes, from the total estimated pre-mining resource.
  • Highly likely that old stopes contain mineralised backfill (low-grade mineralisation and sand fill from tailings) – upside for open pit production beyond the estimated mineral resource.
  • Drilling is planned to commence in January 2018 leading to an updated Mineral Resource estimate in the second quarter.
  • Bawdwin Scoping Study to be released shortly.

Myanmar Metals Limited (ASX: MYL) (“MYL” or “the Company”) is pleased to report a revised Mineral Resource estimate completed by CSA Global and reported under the guidelines of the JORC Code 2012 Edition. The maiden Mineral Resource estimate for Bawdwin was reported under the JORC Code and announced in the Company’s release to the ASX on 17th October 2017. The revised estimate is based on the same block model and estimation parameters but applies different cut-off grades.

The Mineral Resource estimate is based on extensive historic channel sampling of underground exploration cross cuts supported by new diamond drilling and channel sampling data collected in 2017. The Mineral Resource estimate highlights the potential of the Bawdwin Project to be redeveloped as a large-scale mining operation.

As previously reported, MYL holds an option over the Bawdwin project with Win Myint Mo Industries Co. (“WMM”), the Myanmar company that holds the 38 km2 Mining Concession at Bawdwin under a production sharing agreement with Myanmar state mining company, Mining Enterprise No. 1.

Myanmar Metals Limited’s Chairman, John Lamb, commented:

“This revised Resource estimate is further evidence of the significant unlocked value of the Bawdwin deposit. The mining study undertaken by CSA Global as part of the current Scoping Study demonstrates significant potential for a very low cost open pit operation which in turn supports a lower cut-off grade for that portion of the resource, allowing more material to be classified in the Inferred Mineral Resource category.

While the previously published estimate of 41 million tonnes grading 7.5% Pb, 3.5% Zn, 0.33% Cu and 178g/t Ag quoted at a 2% Pb cut-off remains a valid and conservative view of the deposit, the opportunity to recover additional low-grade material from within the pit shell is compelling as it adds a substantial amount of contained metal into the total resource.

Based on these revised estimates, we expect to publish the Scoping Study on Bawdwin in the coming week.

As well, MYL’s in-country partner, Win Myint Mo Industries, is now planning for a second drilling program in January which will lead to this revised Mineral Resource estimate being updated again.

We are very encouraged by the progress we are making at Bawdwin and will continue to update shareholders on our progress.”

 

Bawdwin Mine Background

The Bawdwin Mine in the northern Shan State in Myanmar was a globally significant lead, zinc and silver mine in the 1920’s and 30’s. Large-scale production ceased during World War 2 and the mine never returned to pre-war production levels. It was nationalised in the 1960’s and no modern exploration has been conducted on the site up until the present time.

Figure 1. Location map for the Bawdwin Project

Screenshot 2017-12-02 15.02.33.png

Geology and Mineral Resource Estimate

The revised Mineral Resource estimate is provided in Table 1. This estimate is an update of the estimate reported to the ASX on 17th October 2017. The updated estimate is based on the same block model and all of the input data and interpolation parameters and methodology are unchanged from those reported previously. The new estimate is based on a lower 0.5% Pb cut-off grade applied to the block model above the 750m RL. The reduced cut-off grade is based on the results of a pit optimisation study that forms part of the Scoping Study on an open-pit development at Bawdwin that is nearing completion.

 

Table 1: Bawdwin Inferred Mineral Resource Estimate

 

Screenshot 2017-12-02 14.59.29.png

Screenshot 2017-12-02 14.59.18.png

The Mineral Resource has been classified as Inferred in accordance with guidelines contained in the JORC Code 2012 Edition. The Mineral Resource is contained in three separate zones, termed the Shan Lode, China Lode, and Meingtha Lode. Each includes high-grade massive sulphide zones that were mined historically underground (‘lode’ mineralisation) and lower-grade disseminated and stockwork mineralisation (‘halo’ mineralisation) that has been exploited in the open pit on the China Lode.

Screenshot 2017-12-02 15.03.27.png

Figure 2. Plan view of the Bawdwin block model for Pb on a detailed DTM from a 2017 drone survey. The surrounding low-resolution DTM is derived from SRTM data.

The topography over the deposit is constrained by a high-resolution DTM captured with drone survey in 2017. This survey covers the main mineralised corridor but not the full extent of a likely open pit. A more extensive survey will be undertaken as part of the next work programme at Bawdwin.

Weathering and oxidation is deep on the ridges (20-50 metres), but much thinner in the valleys. The existing open pit at Bawdwin has largely removed the weathered zone and fresh sulphides observed at surface in the pit highlight underlying massive sulphide lodes. Only eight percent of the estimated Mineral Resource is in the transitional and oxidised zones. The oxidation surface is not well constrained by the limited drilling to date and will be more accurately defined by the next phase of planned drilling.

 

The Inferred Mineral Resource estimate is based on drill-hole sampling, open pit channel and historical underground channel sampling. The Mineral Resource is classified as Inferred because existing data is sufficient to imply but not verify geological and grade continuity due to the absence of QAQC information for the historical underground data. The Inferred classification has considered all available geological and sampling information and the classification level is considered appropriate. Key criteria that have been considered when classifying the Mineral Resource are detailed in JORC Table 1 which is contained in Appendix 1.

Screenshot 2017-12-02 15.03.58.png

Figure 3. Oblique view of the Bawdwin Pb block-model from the southwest. Note that the ‘cliffs’ are artefacts between the high- and low-resolution DTMs.

Screenshot 2017-12-02 15.04.25.png

Figure 4. Bawdwin block-model long section showing the 750m RL boundary for reporting at 0.5% Pb or 2% Pb cut-off grade

 

Historical Underground Exploration at Bawdwin – Basis of the Mineral Resource

The Inferred Mineral Resource estimate is largely underpinned by historical underground exploration and grade-control data from the Bawdwin Mine, including over 56,000 metres of underground drive sampling.

Exploration by mapping and sampling cross-cuts was the main exploration method at Bawdwin and continued until the 1980s. Cross cuts were developed on each of the mine levels at intervals of 20 to 60 metres and extending from 20 to 100 metres from the main lodes, with some drives extending up to 200 metres. Most exploration drives were developed on the eastern footwall side of the main lodes, especially in the relay zone of the China Lode where the open pit was developed in the 1980s.

Most underground exploration occurred above the No. 6 level (approx. 850m RL), underground exploration was less extensive from the No. 7 to 12 levels.

The exploration cross cuts were geologically mapped in detail and channel sampled for assaying at the mine laboratory. Geology and sample intervals were recorded on level plans. The assay level plans show the drives on the level along with the sampling traverse locations and Ag, Pb, Zn and Cu values. Sampling and mining between the levels is recorded on multiple floor plans at seven-foot (2.13 m) intervals.

The sampling data dates largely from the 1930s until the 1980s and utilised consistent sampling and analytical protocols through the mine history. Sampling consisted of 2-inch (5 cm) continuous channels cut with hammer and chisel at waist-height along both walls of across-strike drives and across the backs of strike drives. The sample interval was 5 feet (1.5m) and weights were around 5 pounds (2.3 kg).

Samples were prepared in the mine laboratory. Samples were crushed in a jaw crusher, mixed, and coned and quartered. Two 100-gram samples were then dried and pulverised in a ring mill to approximately 100 mesh. Two 0.5-gram homogenised samples were taken for lead and zinc titration using Aqua Regia (Pb) and Nitric acid (Zn). Results were recorded in ledgers. Averaged results from each wall of the exploration cross-cuts were recorded on the level plans.

The mine laboratory is still operational and employs the same analytical methods. It is operated by trained chemists and is kept in very good condition.

Data Capture and Validation

The mapping, sampling and analytical data represent a very valuable historical record that has been meticulously maintained until the present, with plans and ledgers stored in a fire-proof safe room at the Bawdwin Mine office. Most of this valuable dataset was digitally captured during 2017. The assay level plans were systematically scanned together with a subset of intervening floor plans. Levels were digitised and assay intervals and Ag, Pb, Zn and Cu assay values were entered from the plans into spreadsheets and imported into an Access database. Mined stopes were also digitised from level and floor plans and built into 3D wireframes. These were ultimately used to deplete the Mineral Resource Estimate.

Validation of the historical data by resampling is not possible as access is no longer possible. Confidence in the general validity of the data can be derived from the maintenance of consistent sampling and analytical techniques for sampling and grade control throughout the active mine history. The 2017 drilling also validates the historic records by confirming similar location and tenor of

 

mineralisation. However, in the absence of validation sampling or QAQC, the historical data can only support an Inferred classification for the Mineral Resource.

Depletion of the Mineral Resource

The Mineral Resource estimate was first completed on a pre-mining (un-depleted) basis with the inclusion of sampled underground development that was later mined out. This approach is true to the data and allows data in mined areas to inform the estimate in unmined areas. It requires depletion or subtraction of the mined volume and tonnages after the estimate is complete. The resource was depleted using wireframes of mined stopes that were constructed from scanned level plans and some of the intervening floor plans that document all the square-set stopes. These records were kept meticulously up until underground mining ceased.

The pre-depletion Mineral Resource estimate at the same 0.5% Pb and 2% Pb cut-off grade criteria totals 89.5 Mt at 6.3% Pb, 3.3% Zn, 0.29% Cu and 163 g/t Ag. The difference in tonnage with the depleted resource of 13.6 Mt compares well with estimate of historical mine production. The depletion represents 15% of the block model tonnage at the applied 0.5% and 2% Pb cut-off grades, though a higher proportion of the contained metal due to the high grade of historically-mined material.

The stopes at Bawdwin are reported to have been largely backfilled with mine waste. Considering the high cut-off grade used in historic mining, it is likely that significantly mineralised backfill exists within these back-filled stopes.

After the flotation plant was constructed at the Bawdwin site in the early 1980s, tailings were separated into coarse (sand) and fine fractions and the coarse tailings were also used as backfill. Given the poor recoveries from the flotation plant, it is considered likely that this material may also carry significant metal grades.

Bawdwin Block Model and Grade Distribution

The high-grade mineralised zones or ‘lodes’ were wireframed separately and estimated as separate domains with hard boundaries to prevent the smearing of high grades into the lower-grade envelope, and vice-versa. However, some high-grade zones are too narrow or discontinuous to be modelled separately.

The block model shows remnant high-grade zones close to mined stopes. These zones may not have been mined because of the constraints of the square-set stoping method, however, there may also be discrepancies between surveys of sampled drives and mined stopes affecting the accuracy of the depletion of the resource. This is reflected in the Inferred classification.

Resource Model Sections

Figures 4, 5 and 6 show a cross-section through the deposit highlighting lead, silver and zinc block- model grades respectively.

These figures show:

• The relatively high grade of the entire resource, noting that lead, silver and zinc metal is co- located within the same rocks (i.e. true polymetallic mineralisation);

8

  • The relatively small proportion that has been previously mined;
  • The historical mining of the oxidised material near surface;
  • The topography (i.e. a valley and historical open cut), which assists development of an open pit mine on this deposit by reducing strip ratio; and
  • The shallow nature of the deposit with the overwhelming majority of the resource located within 300-350 metres of the current natural surface (being the valley floor, current road and 1980’s pit floor).

Screenshot 2017-12-02 15.04.52.png

Figure 5. Cross Section through the Pb block model at the China Lode. Mined stopes are in black. Note the 750m RL approximating to Level 9

 

Screenshot 2017-12-02 15.06.52.png

Figure 6. Cross section through the Zn block model at the China Lode. Mined stopes are in black. Note the 750m RL approximating to Level 9.

Screenshot 2017-12-02 15.07.16.png

Figure 7. Cross section through the Ag block model at the China Lode. Mined stopes are in black. Note the 750m RL approximating to Level 9.

Screenshot 2017-12-02 15.07.24.png

 

Figure 8. Long section through the Pb block model for the Shan, China and Meingtha lodes. Mined stopes are in black.

Figure 8 shows the resource (silver) block model and topography on a section line along the strike of the deposit. The high-grade, relative lack of historical depletion and amenability of the topography to open pit mining are clearly apparent and the long-section also clearly identifies areas with potential for resource extension through near-mine exploration. These areas appear as white space in the model signifying the absence of data.

Exploration and Resource Extension Potential

Previous exploration at Bawdwin has been minimal outside the areas where exploration cross-cuts were developed. The underground exploration was quite limited at the deeper levels of the mine where additional peripheral lodes may exist.

The Company considers that there is high potential for extensions of mineralisation with significant grade below the very high cut-off grades used in historical mining. There is also potential for offset extensions to the high-grade lodes to north and south and at depth, related to the en-echelon relay geometry of the lodes or later fault offsets.

Initial structural mapping has been completed at Bawdwin and has improved the understanding of the structural controls on mineralisation. Additional future structural mapping and drill-core logging will provide a robust framework for the targeting of structurally controlled high-grade lodes.

Furthermore, systematic mapping of alteration and zonation is expected to provide additional vectors towards identifying high-grade mineralisation, further enhancing targeting effectiveness. This will be facilitated by using multi-element analysis of existing core samples, alteration mapping and logging using a Terraspec Halo SWIR for determining clay and mica mineralogy, and petrological studies.

 

Preliminary petrophysical testwork indicates that mineralisation at Bawdwin has a strong geophysical response. The high-grade lodes are conductive and amenable to detection and the lower- grade mineralisation is chargeable and amenable to detection by induced polarisation (IP) methods.

It is expected that the combination of electro-magnetic (EM) and IP surveys will provide a strong basis for direct targeting of mineralisation at Bawdwin, noting that geophysical exploration has never been conducted previously.

Bawdwin – Next Steps

The Scoping Study by CSA Global into the development of an open pit mine and supporting infrastructure at Bawdwin and Namtu is nearing completion and the results of this study will be promptly reported to the ASX. Results from the study will underpin detailed discussions with the Myanmar government in the coming weeks and months.

At the same time, work will commence on supplementary technical studies including metallurgy and environmental assessments as well as a drilling programme. Drilling is planned to commence in January 2018 and will initially target the ‘starter pit’, with the aim of establishing and reporting an Indicated Mineral Resource Estimate in the second quarter of 2018.

This work will underpin the exercise of the Bawdwin option on or before 21 May 2018; thereafter a bankable feasibility study will be undertaken.

 

Forward Looking Statements

The announcement contains certain statements, which may constitute “forward –looking statements”. Such statements are only predictions and are subject to inherent risks and uncertainties, which could cause actual values, results, performance achievements to differ materially from those expressed, implied or projected in any forward-looking statements.

 

Competent Person Statements

The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC Code’) sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves. The Information contained in this announcement has been presented in accordance with the JORC Code.

The information in this report that relates to Geology and Exploration Results is based, and fairly reflects, information compiled by Dr Neal Reynolds, who is a Fellow of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Dr Reynolds is employed by CSA Global Pty Ltd, independent resource industry consultants. Dr Reynolds has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Reynolds consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Mineral Resources is based, and fairly reflects, information compiled by Serikjan Urbisinov, who is a Member of the Australian Institute of Geoscientists. Mr Urbisinov is employed by CSA Global Pty Ltd, independent resource industry consultants. Mr Urbisinov has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Urbisinov consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

 

 

 

 

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MYL Completes $7 Million Capital Raising

Binding commitments received for a $7 million capital raising.

Investor demand from Australian and a large base of Asian investors

Myanmar Metals has advised its partner Win Myint Mo of its decision to extend the option for an 85% interest in the Bawdwin Zn-Pb-Ag-Cu project in Myanmar through to May 2018.

The Company is now sufficiently funded to proceed with its ongoing assessment at Bawdwin.

Scoping Study on Bawdwin now underway by CSA Global and to be completed this month.

Myanmar Metals Limited is pleased to announce that through Lead Manager Triple C Consulting Stockbrokers (Triple C) the Company has received binding commitments for a capital raising of $7,000,000 through the issue of 100,000,000 new fully paid ordinary shares at an issue price of 7 cents per share. Completion of the capital raising is expected to occur on or about Friday, 17 November 2017.

The Company received considerable demand from investors in Australia and Asia.

Funds raised from the placement will provide the Company with the required financial resources to extend the option over the Bawdwin Zn-Pb-Ag-Cu project in Myanmar through to May 2018 as planned; advance due diligence at Bawdwin, and fund general working capital expenses.

Executive Chairman and CEO John Lamb commented: “We are grateful to new and existing shareholders for their support for this placement. The pricing of the placement which represents a 16% discount to the 5-day VWAP is reasonable for such a raising and the level of demand received is a strong vote of confidence in the Company’s strategy and the potential that investors see in the Bawdwin asset. “

“Bawdwin is a world-class asset with enormous unlocked value. Over recent months we have completed an initial JORC resource on remnant and adjacent, lower grade ‘halo’ mineralisation and commenced a scoping study through our key consultants CSA Global.

Corporately, we have secured a cornerstone shareholder in Mark Creasy’s Yandal Investments and have secured an experienced and industrious executive team. We intend to continue the rapid pace of development demonstrated by your new Board since we took over in June 2017.”

Triple C will be entitled to be issued 7,000,000 options exercisable at 7 cents on or before 15 November 2020, subject to shareholder approval, in addition to customary capital raising fees.

An Appendix 3B and Disclosure Document will be issued shortly.

Yours faithfully,

JOHN LAMB

Chairman

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Yandal Investments Converts Loans into Shares and Becomes Company’s Largest Shareholder

The Board of Myanmar Metals Limited (“MYL” or “The Company”) (ASX: MYL) is pleased to advise that Mark Creasy’s Yandal Investments (‘Yandal’) has converted loans and interest with a combined value of $2,745,000 into Myanmar Metals fully paid ordinary shares.

A total of 82,505,328 shares were issued to Yandal giving them a total shareholding of 87,505,328 shares being approximately 16% of the adjusted capital of 548,499,057 shares.

MYL’s CEO and Executive Chairman, Mr John Lamb, said:

“The conversion of these loans into shares is a clear demonstration of Mark Creasy’s belief in the Bawdwin Project and the value that it holds. We are delighted with this outcome and look forward to rewarding Mark’s commitment, and that of all shareholders, by developing Bawdwin into a world class, safe and modern mine.”

The Company is now free of all debts and has the most well-regarded mining investor at Number 1 on its register.

Shareholder approval for the conversions was obtained at the General Meeting held on 18 August 2017 and the Annual General Meeting held on 23 October 2017.

An Appendix 3B will follow.

ROWAN CAREN
Company Secretary

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Boardroom Media Interview

Myanmar Metals Limited (ASX: MYL) (“MYL” or “the Company”) is pleased to provide investors with an opportunity to listen to an interview with Chairman and CEO John Lamb on Boardroom Media. The interview follows the release of the Company’s Mineral Resource for the Bawdwin Lead-ZincSilver-CopperProject in Myanmar this week (see ASX release dated 17 October 2017).

The interview follows the release of the Company’s Mineral Resource for the Bawdwin Lead-ZincSilver-CopperProject in Myanmar this week (see ASX release dated 17 October 2017).
The audio broadcast will be available for access at

he audio broadcast will be available for access at 8am AEDT Thursday 19th October at
https://boardroom.media/broadcast/?eid=59e6d3f5b08d2638bd14ef09. Alternatively, a copy of the interview will also be available on the Company’s website at www.myanmarmetals.com.au

For further information please contact:
John Lamb, Chairman and Chief Executive Officer
Mob: +61 (0) 400 165 078
Email: j.lamb@myanmarmetals.com.au