For personal use only DATE: 13 OCTOBER 2014 TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED ASXCode: CHK ________________________________________________________ Exploration commenced at Latin Uranium SRL Argentina The Board wishes to advise that following a review of the Technical Report on Latin Uranium SRL prepared for Cohiba Minerals Limited (Cohiba) by Mr Ariel Testi, the due diligence exploration program at the Huaco and Homero licences located 40km~ from San Juan in Argentina, has commenced. The program includes drilling to verify the uranium mineralisation expected at Hauco and will run through to December 2014 with a completed report expected by January/February 2015. Details of the program are attached. Subject to the results of the program Cohiba will decide whether to recommend an investment into Latin Uranium SRL to its shareholders. If the Board recommends the Investment the necessary documentation including independent expert reports and required regularity and statutory information will be forwarded to shareholders to review before the calling of a general meeting to vote on the proposed ordinary resolution. The market will be kept in form on the progress. David Herszberg Chairman Address / Postal Suite 5, Level 1, 310 Whitehorse Road, Balwyn VIC 3103 Phone 03 9830 7676 Fax 03 9836 3056 Web www.cohibaminerals.com.au ACN 149 026 308 For personal use only Report October 2014 EXPLORATION PROGRAM LATIN URANIUM SRL Projects: Huaco & Homero Province: San Juan, Argentina Prepared by: Ariel Testi, MSc SUMMARY The exploration program was prepared on September 29th through October 1st. It comprises exploration in advance drilling program proposal that involves mapping & sampling, and surface collars totalizing 600m for Huaco and Homero projects. The Medano Rico (Homero project) and La Cuesta (Huaco project) sectors are defined according to the information of previous exploration works, ground geophysics survey, grid scintillometer survey and support by the exploration team at Latin Uranium SRL. The budget for the entire program is AU$ 200.000. Introduction The Latin Uranium SRL (LU) claims are located 40Km of San Jose de Jachal and Huaco cities and are in the eastern side of the San Juan Precordillera (Fig N° 1). The exploration team (Service Company) that will follow up the exploration program consists of two field teams divide according to exploration/drilling requirements. Each field team is formed by a geologist and a mining technician and presents a senior geologist and a semi-junior/junior geologist. The exploration program on this proposed includes the Huaco and Homero projects (Advanced exploration project of LU). For personal use only Figure 1: Location Map of the Medano Rico and La Cuesta sectors Exploration Huaco The exploration program for Huaco project is shallow drilling to define breccia pipe geometry. This program consists of four collars of 150m depth surrounding an area of 200m by 200m. Following the first shallow drilling program, downhole geophysical surveys more accurately define the uranium intercepts. Homero (Medáno Rico) Concession Number 1124.121-M-11 (MD Homero1). The exploration program comprises Grids scintillometer survey, detailed geological mapping-rock chip sampling on a reduced area. The program involved the following phase: 1) Geological Mapping and Sampling: One team with a Senior Geologist will be carried out the geological-structural traverses of the area. 2) Grid Scintillometer Survey: The area selected will be assessment using handle For personal use only scintilometers with GPS by traverses. The program will be carried out by one team with a semi junior/junior geologist. The work in Homero project has to be done with the assistance of a climbing instructor. Drilling program Proposed It comprises 600m surface drilling program. The plan is expected finalize in 15 days approximately using one surface drilling machine. The collars should be according to a rhomboidal pattern: Huaco project (La Cuesta sector) Concession Number 1124.647-M-12. The drilling proposal contains 600m for shallow exploration drilling. These collars should be oriented to the most favorable area of mineralization and lithology; a tentative location is shown on Figure 2 by the blue dots. However, the exact location of the collars should be defined by LU geologists using the best data available at the time. This sector is chosen due to the following factors: • Association of breccia-structure with barite-fluorite-pyrite and semicircular radiometric anomalous area. • Stock Pile of 40 Tn with approximately 870ppm e_U (ppm) scintillometer. • Hydrothermal alteration • The lack of drillhole information regarding the area For personal use only N Figure 2: La Cuesta Sector, Tentative collars in blue dots Timeline/Milestone Two month working will be required for completing the entire exploration and drilling program. Therefore, all tasks will be based on parallel and improved different aspect of the exploration efforts. The milestone schedule for major deliverables listed in this proposal is shown: For personal use only Milestone Schedule Day Schedule Data Collection, digitalization 5 Homero: Geological Mapping, sampling, 20-30 Grids scintillometer survey Surface Drilling Program (logging and 10-20 sampling, database information) Surface Drilling Lab Analisys and Reports Integration of the information, maps generation, conclusions Total 15 10 60 JORC COMPETENT PERSON STATEMENT The information in this report that relates to Exploration Results is based on, information and supporting documentation compiled by Mr Ariel Testi who is a Certified Professional Geologist (AIPG-CPG#11739 ) with the American Institute of Professional Geologists. Mr Testi is a consulting Geologist appointed by Cohiba Minerals Limited to conduct exploration on the exploration licences held by Latin Uranium Pty Ltd. Mr Testi 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 Testi consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. For personal use only APPENDIX I For personal use only 100 0 100 m 23/08/2014 LA CUESTA 6,666,600 mN 6,666,500 mN 6,666,400 mN 6,666,300 mN 6,666,200 mN Huaco Project 2,543,700 m E 2,543,600 m E 2,543,500 m E 2,543,400 m E 2,543,300 m E 2,543,200 m E 2,543,100 m E 2,543,000 m E 2,542,900 m E 6,666,700 mN Section 1 Sampling Techniques and Data For personal use only Criteria Sampling techniques JORC Code explanation • • • • Commentary Nature and quality of sampling (eg 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 and the appropriate calibration of any measurement tools or systems used. 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 (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g 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 (eg submarine nodules) may warrant disclosure of detailed information. • • • Random chips samples were taken at surface outcrops, float and proximal blocks which show favourable geology, alteration and radiometric anomalies at project scale. In general, samples were partially weathered Representative samples at each sample site weigh between 0.8 and 2.5 kg. No details of previous companies’ samples are known of their QAQC processes. Rock samples were sent to Alex Stewards (Assayers) Argentina S.A. (sample taken in 2013-2014), SGS Argentina and ACME (rest of the samples) all certificates laboratories where they were crushed, dried and pulverized. The analytical process comprises Aqua Regia digest with ICP-AR-42 (U&Th). Drilling techniques • Drill type (eg core, reverse circulation, openhole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, facesampling bit or other type, whether core is oriented and if so, by what method, etc) • No drilling results are included. 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. • No drilling results are included. 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 costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. • No drilling results are included. • • Logging • • • For personal use only Criteria Sub-sampling techniques and sample preparation JORC Code explanation • • • • • • Quality of assay data and laboratory tests • • • Verification of sampling and assaying • • • • Commentary • • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, 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 (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. • • No external (third party) laboratory checks have been completed to date. Quality control measures (inserted reference materials, blanks and duplicates) are mentioned and in occasionally reports there is no indication that replicate analyses were carried out. 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. • Pending reports with external lab test results of significant assay values would be verified uranium mineralization by Ariel Testi. However, this is not required at this stage of exploration. No twinned holes were drilled. Primary assay data for rock chips has been entered into standard Excel templates for plotting on MapinfoArcMap. All previous data has been entered digitally by previous explorers and verified internally by Latin Uranium. All data was compiled into Excel spreadsheets. There has been no adjustment to assay data. • • • • • • • Location of data points • • • No core drilling reported. Surface samples were not split during any part of the process. The sample preparation of rock chips by Latin Uranium follows industry best practice in sample preparation involving oven drying, coarse crushing down to #10 followed by pulverisation of 1Kg sample to a grind size of 95% passing 106 micron. QAQC practices by previous companies are unknown, but samples repeated by Latin Uranium SRL indicate that the original previous companies sampling results was reliable. No complete recorded of field duplicates were carried out. Although, some duplicates were taken. Laboratory QC procedures for rock sample assays involve the use of internal certified reference material as assay standards, along with blanks, duplicates and replicates. Uranium mineralization is filling pore space in fine conglomerate-pebbly sandstone to siltstone and bands, small veins, and fine disseminations. The samples sizes of 0.8 to 2.5kg at latin Uranium projects are considered appropriate. 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 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. 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 quality of previous companies sample assays is unknown, although generally the preparation and analytical techniques conformed to the industry standards of the time. Handheld spectrometric- scintillometer was utilized to detect possible surface anomalies. While this data is recorded, only independent laboratory assay results are reported here. Surface rock chip sample locations were surveyed by using a standard hand-held GPS. Expected accuracy is +/- 5m for easting and northing and +/- 15m for elevation coordinates. No drilling results are included. The grid system for Latin Uranium projects are Argentina Gauss Krueger Campo Inchauspe, Zone 2. Standard government topographic maps have been used for topographic validation. Criteria For personal use only Data spacing and distribution JORC Code explanation • • • Orientation of data in relation to geological structure Sample security Audits or reviews Commentary 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 classifications applied. • Whether sample compositing has been applied. Surface samples are targeting radiometric anomalies at various spacing. Current reconnaissance programs are not appropriate for any sort of comment on potential geological and grade continuity. There has been insufficient exploration completed to define this material as a Mineral Resource. No sample compositing has been done. • 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 mineralized structures is considered to have introduced a sampling bias, this should be assessed and reported if material. • The measures taken to ensure sample security • For rock samples, chain of custody is managed by Latin Uranium SRL. Samples are delivered by Latin Uranium SRL personnel to Alex Steward Argentina for preparation and assay. Tracking sheets have been set up to track the progress of batches of samples. Security of previous companies samples is unknown however is considered unimportant. The results of any audits or reviews of sampling techniques and data • Numerous repeat sampling exercises validate the sampling of previous workers. • • • Surface samples were collected perpendicular to veinbreccia walls and mineralized horizon, or across zones of alteration, and are representative of the mineralization controls. No drilling is reported.