IGO Annual Report 2016

Annual Report 2016 27

Table 9: Stockman Project – June 2016 Mineral Resources (and 2015 comparison)

Mineral Resources - 30 June 2015

Mineral Resources - 30 June 2016

Tonnes

Grade

Tonnes

Grade

Classification

(Mt)

(%)

(g/t)

(Mt)

(%)

(g/t)

Currawong

Measured

Indicated

9.5

2.0 4.2

1.2

9.5

2.0 4.2

1.2

Inferred

0.8

1.4 2.2

0.5

0.8

1.4

2.2

0.5

Sub-Total

10.3

2.0 4.0 40

1.1

10.3

2.0 4.0

1.1

Wilga

Measured

Indicated

3.0

2.0 4.8

0.5

3.0

2.0 4.8

0.5

Inferred

0.7

3.7

5.5

34 0.4

0.7

3.7

5.5

0.4

Sub-Total

3.7

2.3

4.9

32 0.5

3.7

2.3

4.9

0.5

GRAND TOTAL

14.0

2.1

4.3

38 1.0

14.0

2.1

4.3

38 1.0

Notes:

All figures are rounded to reflect appropriate levels of confidence. Apparent differences may occur due to rounding.

The Mineral Resource estimate is unchanged since 2012.

Mineral Resources include massive sulphide and stringer sulphide mineralisation. Massive sulphide resources are geologically defined;

stringer sulphide resources are reported above cut-off grades of 0.5% Cu.

Au grades for Wilga are all Inferred due to paucity of Au data in historic drilling.

Block modelling used ordinary-kriging grade-interpolation methods within wireframes for all elements and density.

Mining as at end of historic mine life (1996) has been removed from the Mineral Resource estimate for Wilga.

Mineral Resources are inclusive of Ore Reserves.

JORC Code (2012) Table 1 Parameters are contained within IGO’s 2016 ASX Resources and Reserves Statement as released to the ASX which

can be found at

www.igo.com.au

Table 10: Stockman Project – June 2016 Ore Reserves (and 2015 comparison)

Ore Reserves - 30 June 2015

Ore Reserves - 30 June 2016

Tonnes

Grade

Tonnes

Grade

Classification

(Mt)

(%)

(g/t)

(Mt)

(%)

(g/t)

Currawong

Proved

Probable

7.4

2.1

4.3

1.2

7.4

2.1

4.3

1.2

Sub-Total

7.4

2.1

4.3

1.2

7.4

2.1

4.3

1.2

Wilga

Proved

Probable

1.6

2.1

5.6

0.5

1.6

2.1

5.6

0.5

Sub-Total

1.6

2.1

5.6

0.5

1.6

2.1

5.6

0.5

GRAND TOTAL

9.0

2.1

4.5

1.1

9.0

2.1

4.5

1.1

Notes:

All figures are rounded to reflect appropriate levels of confidence. Apparent differences may occur due to rounding.

Gold (Au) grades are Inferred at Wilga due to a paucity of gold assays in historic drilling. Revenue from gold in the Wilga ore was included

in the estimation of the Ore Reserve. The contribution to revenue of this gold was estimated to be $8.65/g of gold

in situ

. This inclusion

was not material to the value of the mining envelopes considered and did not warrant downgrading of any portion of the Ore Reserve

attributable to Wilga. The contribution from Wilga represents 18% of the Total Ore Reserve.

The Ore Reserve was estimated using the NSR method. The NSR value represents unit revenue per tonne net of all off-site costs. These

off-site costs included road transport, sea transport, treatment charges, refining costs and state royalties. The NSR value did not include site

costs such as mining, geology, processing and site administration. These site costs were applied in the form of an NSR cut-off, used to guide

the limits of a practical and economic mining envelope. The Currawong NSR cut-off was $97/t and for Wilga it was $105/t.

Revenue factor inputs (US$): Cu $6,591/t, Zn $2,979/t, Ag $20.17/oz, Au $1,146/oz. Exchange rate A$1.00 : US$0.84.

Metallurgical recoveries – 81.5% Cu, 40.7% Ag, and 20.4% Au in Cu concentrate; 76.4% Zn and 18.5% Ag in Zn concentrate.

Long hole open stoping with cemented paste backfill is the primary method of mining proposed at Stockman.

Historic mining at Wilga has been removed from the Ore Reserve estimate.

The Ore Reserve estimate includes Inferred and unclassified material in the form of mining dilution estimated to be approximately 780,000t

at 0.31 Cu%, 1.0 Zn%, 5.2g/t Ag and 0.1g/t Au.

JORC Code (2012) Table 1 Parameters are contained within IGO’s 2016 ASX Resources and Reserves Statement as released to the ASX which

can be found at