LLIIHHIIRR GGOOLLDD MMIINNEE,,

PPAAPPUUAA NNEEWW GGUUIINNEEAA

DDaattaa MMeettaallllooggeenniiccaa

SSppeeccttrraall CCaassee SSttuuddyy:: DDMM__22224433

(www.energydigital.com)

Source Credit: Data Metallogenica, Adelaide, AUSTRALIA

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This report will provide an overview of the Lihir Gold Deposit and show results of a reflectance spectroscopy study conducted using representative samples from the Data Metallogenica collection. The background data on Lihir is taken from: http://www.portergeo.com.au/tours/archipelago97/all_deposits.asp DEPOSIT SUMMARY Lihir is a major bulk gold deposit with mineralisation represented by an earlier un-economic porphyry stage, and a later, overprinting low sulphidation advanced argillic phase accompanying the bulk of the gold. The orebodies are located within an area of 5.5x3.5 km embraced by the breached Luise Caldera on the east coast of Lihir Island. The island is one of a series of volcanic islands rising from a submarine platform to the north-east of New Ireland in Papua New Guinea. The host sequence of the Luise Caldera comprises intermediate lavas, tuffs and volcanic breccias, the youngest of the five Miocene to Pleistocene volcanic sequences/events that constitute the island. Mineralisation is coincident with a north-east trending zone of hydrothermally altered volcanics and breccias intruded at depth by rocks of monzonitic and syenitic composition and some

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andesite porphyry. Intense alteration generally forms a horizontal layering, with siliceous and potassic assemblages at depth, grading up to epithermal argillic phases nearer surface. Alunite and opal fill veins and stockworks near the surface, grade to quartz and adularia at intermediate depths, underlain by anhydrite and carbonate. Sulphide and gold mineralisation generally mimic the horizontal alteration pattern, although some follows steep 'feeder' fractures. The horizontal zonation represents a surface oxidation regime, passing down progressively into argillaceous altered and silica clay, through to a boiling layer and then the anhydrite sealed zone. Grades are best from the silica-clay to the boiling zones. Gold is predominantly fine grained and contained within pyrite and marcasite. The overall sulphide or reactive sulphur content averages 6%. Geothermal activity is still taking place.. Current resource and reserve data*:

Resources: 830 Mt @ 2.1 g/t Au for 56.0 Moz Reserves: 400 Mt @ 2.4 g/t Au for 31.0 Moz

* Per 30 June 2011 Mineral Resource and Ore Reserve statement (www.newcrest.com.au)

The deposit is currently operated by Newcrest Mining, who merged with Lihir Gold at the end of August 2010.

Mining operations are located on Niolam Island, in the New Ireland Province of Papua New Guinea. As Niolam Island is the principal island of the Lihir Group, it is generally referred to as Lihir Island. DEPOSIT LOCATION

Lihir Island is a volcanic sea mount that rises steeply from sea level to approximately 600 metres above sea level. At its widest points, the island measures 22 kilometres from north to south and 14.5 kilometres from east to west.

The Luise Caldera, in which all of the known ore deposits are located, is on the east coast of the island. Exploration work has identified several adjacent and partly overlapping mineral deposits in the Luise Caldera, the principal ones being Lienetz, Minifie, Coastal and Kapit. The bulk of the known gold is located in Minifie and Lienetz.

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(edgar-online.com)

GEOLOGY AND RESERVES Lihir Island consists of five Miocene-Pleistocene volcanic units, of which three are volcanic calderas and two are sequences of mafic volcanic rock that predate the three volcanoes. Remnant geothermal activity is present in the Luise caldera, evidenced by hot springs and fumeroles. The orebody is contained in a hydrothermally-altered porphyry gold system with the gold hosted in volcanics, intrusives and breccias within the caldera. The majority of the gold is contained in sulphides. Currently defined gold mineralisation occurs near the centre of the caldera. Exploration since 1983 has defined several adjacent and partly overlapping deposits; Lienetz, Minifie, Coastal and Kapit with adjacent satellite deposits of Borefields and Camp. The bulk of the known mineralisation is in Minifie and Lienetz. All of the deposits except Minifie are connected by areas of low-grade mineralisation.

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(Gemmel et al., 2004)

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DATA METALLOGENICA (Peter Laznicka, 1970, 1995):

LITHOTHEQUE REPORT

LT 2243 LlHIR ISLAND-2, PNG: LADOLAM-Au 1, "EPITHERMAL "ASSOCIATION

DIAGRAMMATIC SECTION OF THE LADOLAM Au ORE ZONE, modified after Moyle et al. (1990); Peter Laznicka (1997)

LITHOLOGY

PI-Q predominationly pyroclastic and/or hydrothermal breccias

PI-Q predominationly volcanics: trachyte, andesite, latite

PI-Q predominationly intrusives: diorite > monzonite, syenite

ALTERATIONS (widespread overprinting)

argillic > advanced argillic

Propylitic

Potassic (K feldspar & biotite), phyllic (sericite-illite)

Au MINERALIZATION

5 g/t Au plus

1 g/t Au plus

LITHOTHEQUE LEGEND (Plate 2243): EPITHERMAL ASSOCIATION

Oxidized ore 1

Argillic alteration overprinting the “porphyry-style” K-altered rocks with Au mineralization:

--complete kaolinization with some microcellular network of residual silica (plus celadonite ?; 3)

--incomplete kaolinization (some illite, montmorillonite); pyrite veinlets and disseminations

--“silica-clay” style overprinting (relict K-feldspar an illite remain)

2-4

5-8 9-15

Advanced argillic alteration, fracture controlled: alunite-silica-kaolinite-illite-

(sulphur) 16-20

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