victory mines to start drilling and sampling bolivian tin

Victory Mines Limited ABN 39 151 900 855

Registered Office: Level 11, 216 St George’s Terrace, Perth WA 6000

Telephone +61 8 9481 0389 |Fax +61 8 9463 6103 | www.victorymines.com

ASX ANNOUNCEMENT 13 September 2017

Victory Mines to start drilling and sampling Bolivian tin tails

Highlights

Drilling and sampling of Victory Mines’ Bolivian tin tails deposits to start this month

Contract signed with leading Bolivian mining, oil and geotechnics university and research

institute to assist with work

A total of 137 holes will be drilled on variable patterns from 50 x 50m to 150 x 150m

A total of 1,128 samples of 5-10kg will be collected from drilled material

Drilling and sampling will quantify volume and grade of tin and other metals in each deposit

Program expected to be completed in October

Results expected in December after laboratory analysis is complete.

Victory Mines Limited (ASX: VIC) (“Victory” or “the Company”) is pleased to announce its program

to drill and sample material at its Bolivian tin tails project will commence this month following its

engagement of the Bolivian Mining Research Institute of the Mining, Oil and Geotechnics Engineering

of the Oruro Technical University (UTO) to evaluate the various tin tailing areas. The UTO engineering

department is a leader in Bolivia and has international certified laboratories and the resources for the

supply of mining, geological and metallurgical services in Bolivia and neighbouring countries.

Victory will sample tin tail deposits at Sink & Float, Arenas Catavi, Kenko, Rio Andavillque, Huanuni

and Japo. The limits of these tails deposits have been defined by the Bolivian Mining Administrative

Jurisdictional Authority (AJAM). Huanuni is composed of three deposits: Arenas Huanuni,

Machacamarca and Rio Huanuni. Japo refers to the deposits of Arenas Japo, Santa Fe and Arenas

Morococala. All deposits are near the towns of Llallagua and Huanuni in the Potosi and Oruro

Departments of Bolivia, as shown in Figure 1.

The Company is confident that its drilling and sampling program (1,128 samples from 137 drill holes)

will generate sufficient information to enable estimation of volume and tonnage of each of the tailings

areas and the content of tin, silver and other valuable metals, such as tantalum, throughout the

deposits.

The Company has developed a comprehensive and high-standard program for the drilling, sampling,

surveying and grade modelling of the tin tail deposits in Bolivia to ensure the correct quantification of

tin and other elements. In addition, UTO has provided detailed procedures for the program.

Victory’s consulting engineers in Bolivia will be on site ensuring that the UTO drilling and sampling

procedures will be followed at the expected high standards in quality and safety. COMIBOL engineers

may also observe the process. The Company continues to work closely with all the stakeholders, who

either directly, or indirectly are taking part in the Victory drilling and sampling program in Bolivia.

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All deposits, with the exemption of Rio Huanuni, will be sampled by a UTO-owned Dando Terrier 2002

drill rig, a track-mounted soil sampling rig designed to be easily mobilised to site. It operates following

the Standard Penetration Testing (SPT) in general accordance with the British Standard 1377, and

produces undisturbed samples of 72mm, 62mm and 52mm diameter retained in a one-metre plastic

liner that will allow visualisation of the differences in the tails’ physical characteristics along the drill

intervals. Each sample will weigh between 5 and 10kg.

Samples for Rio Huanuni will be collected along the river bank at 1km intervals using a hand-held

auger. The tails at this deposit extends to approximately 20km in length.

Variable grids will be established over all the deposits (except for the Rio Huanuni). These grids will

be constructed as part of the topographic survey that will be executed with the LEICA TS-09 from Leica

Geosystems and ProMark-3 GPS from Magellan Professional. The LEICA TS-09 station generates 3D

surveys by high-distance electronic measurement at high-accuracy of the standard reflectors, in

accordance with the international standard ISO 17123-4 for geodetic and surveying instruments.

The grades will be modelled with the mining software MineSight which provides a 3D variability of the

content of valuable metals across the deposit. MineSight has the capability to use the results of the

minerals content from the sampling program to calculate the grades from unmeasured points by the

spatial interpolation methods of Inverse Distance Weighting or Kriging.

Table 1 below shows the planned holes and samples for all the tin tails deposits that Victory proposes

to develop. The tails deposits have been divided in sub-deposits or sectors for better survey outcomes.

UTO engineers have visited the sites and estimated the tails depth. The total depth of tails deposit

will be sampled at each drilled hole. Figures 2 to 10 show the 13 areas to be drilled and the drill hole

locations.

The program is expected to take a month to complete. Samples will then be sent for laboratory

analysis, with results expected in December.

Figure 1: Location of Victory’s Bolivian Tailings Projects

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Table 1. Amount of drilled holes and samples for the sampling program

In an ASX Announcement on 16 August 2017, the Company provided full details of the Exploration Target Potential for the various tin tailings deposits, which are shown in Table 2 below. It must be noted that the potential quantity and grade of these Exploration Targets is conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource and that it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Table 2 –Summary of Exploration Target Potentials

Note: Mt means million tonnes

Sector

Number

Sector

Name

Amount of

Drilled Holes

Hole Depth

approx., m

Number

of Samples

1 Sink & Float 22 15 330

2 Arenas Catavi 12 15 180

3 Kenko 1 4 9 36

4 Kenko 2 6 11 66

5 Rio Andavillque 7 8 56

6 Arenas Huanuni 4 15 60

7 Machacamarca 1 & 2 8 10 80

8 Machacamarca 3 2 10 20

9 Arenas Japo 4 17 68

10 Santa Fe 1 4 13 52

11 Santa Fe 2 2 17 34

12 Arenas Morococala 2 13 26

13 Rio Huanuni 60 2 120

TOTAL 137 1128

DepositsExploration Target

Mineralisation Potential

El Kenko Tailings 8.4 - 8.8Mt @ 0.36 - 0.40% Sn

Colas Catavi Tailings 9.5 - 10Mt @ 0.29 - 0.31% Sn

Sink and Float Descartes Tailings 24 - 26Mt @ 0.25 - 0.27% Sn

Rio Andavillque Tailings 8 - 10Mt @ 0.74 - 0.84% Sn

Colas Arenas Huanuni 1.1 - 1.3Mt @ 0.55 - 0.65% Sn

River Huanuni Basin Tailings 2.1 - 2.3Mt @ 0.45 - 0.55% Sn

Colas Machacamarca 0.65 - 0.75Mt @ 0.48 - 0.52% Sn

Colas Japo 1.3 - 1.5Mt @ 0.45 - 0.55% Sn

Total/Weighted Average 55.05 - 60.65Mt @ 0.39 - 0.41% Sn

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Figure 2. Sink and Float (140x140m pattern)

Figure 3. Arenas Catavi (140x140m pattern)

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Figure 4. Kenko 1 and Kenko 2 (100x100m pattern)

Figure 5. Rio Andavillque (150x150m pattern)

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Figure 6. Arenas Huanuni (50x50m pattern)

Figure 7. Machacamarca 1, 2 and 3 (50x50m pattern)

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Figure 8. Arenas Japo (50x50m pattern)

Figure 9. Santa Fe 1, Santa Fe 2 and Morococala (70x70m, 65x65m and 50x50m patterns)

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Figure 10. Rio Huanuni (three samples per km)

The Company is confident that it has developed a comprehensive, high-standard program for drilling, sampling, surveying and grade modelling of the tin tail deposits in Bolivia. These activities are significant to ensure the correct quantification of not only tin but also other elements, such as silver and tantalum that may represent a transformational event for Victory Mines Ltd and its shareholders.

For further information, please contact:

Elizabeth Hunt

Company Secretary

Ph: +61 8 9481 0389

Competent Person’s Statement

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on

information compiled by Mr Peter Peebles who is a Member of The Australasian Institute of Mining and

Metallurgy and a Member of the AIG. Mr Peebles is employed by Darlington Geological Services Pty Ltd and is

also a Director of Victory Mines Limited. Mr Peebles 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 Peebles 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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victory mines to start drilling and sampling bolivian tin

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