JORC Resource – Redstone Resources

Tollu Project – JORC Resource

In June 2016 Redstone announced its first Mineral Resource estimate, reported in accordance with the 2012 JORC Code, for its 100% owned Tollu Project in the West Musgrave, Western Australia.

The initial Mineral Resource estimate at Tollu is 3.8Mt @ 1.0% copper, which equates to 38,000 tonnes of contained copper, including 8,000 tonnes of Cu oxide resource and 0.01% cobalt, which equates to 535 tonnes of contained cobalt (the Mineral Resource) (Table 1). The Tollu Mineral Resource was prepared by BM Geological Services Pty Ltd, a Kalgoorlie based, independent geological consulting group and is reported in line with the guidelines of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 edition (JORC 2012). The Mineral Resource estimate is reported at a cut-off grade of 0.2% Cu and no cutoff was applied for Co.

The definition of a maiden resource at Tollu represented a major milestone for Redstone and for the advancement of the Tollu Project. The success of the 2015 shallow drilling at the previously undrilled prospects, especially at Forio, highlighted the significant upside potential to identify further veins hosting near surface copper mineralisation and validated further opportunity for repeat success on other veins of similarly minimal surface expression. With only limited drilling, the Forio Prospect shows significantly longer strike length than both the Chatsworth and Eastern Reef Prospects.

Importantly, beyond the current Mineral Resource estimate, it validates the Company’s confidence that, with additional drilling, other prospects will be identified, and that future drilling at Tollu on existing and future prospects, can define further copper mineralisation. There is significant potential upside at Tollu given drilling activities have been limited to certain areas of the Project. The Project’s potential copper endowment is not constrained.

Tollu Mineral Resource Estimate by Prospect
Prospect	Tonnes ('000)	Cu %	Contained Copper Tonnes ('000)	Co %	Contained Cobalt Tonnes ('000)
Chatsworth	798	1.6	13	0.01	114
Forio	672	1.1	7	0.01	58
Main Reef	850	0.7	6	0.01	100
Hamptons	267	0.9	2	0.02	45
Eastern Reef	1,309	0.8	10	0.02	218

Total	3,896	1.0	38	0.01	535

Table 1 Mineral Resource Estimate by Prospect

Tollu Project Mineral Resource Estimate
Resource Classification	Prospect	Tonnes ('000)	Cu %	Contained Copper Tonnes ('000)	Co %	Contained Cobalt Tonnes ('000)
Indicated	Chatsworth	395	1.6	6	0.02	72
	Forio	69	1.1	1	0.01	7
	Sub-Total	464	1.5	7	0.02	79
Inferred	Chatsworth	403	1.6	7	0.01	42
	Forio	603	1.1	6	0.01	51
	Main Reef	850	0.7	6	0.01	100
	Hamptons	267	0.9	2	0.02	45
	Eastern Reef	1,309	0.8	10	0.02	218
	Sub-Total	3,432	0.9	31	0.01	456
Total Indicated + Inferred	Chatsworth	798	1.6	13	0.01	114
	Forio	672	1.1	7	0.01	58
	Main Reef	850	0.7	6	0.01	100
	Hamptons	267	0.9	2	0.02	45
	Eastern Reef	1,309	0.8	10	0.02	218

Total Indicated and Inferred		3,896	1.0	38	0.01	535

Table 2 Indicated and Inferred Mineral Resource Estimate by Prospect