Review of blue duck claims by Rio Zim

1. A TECHNICAL REVIEW
OF THE
THE BLUE DUCK AND ETNA CLAIMS
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2. TABLE OF CONTENTS
1.Executive Summary.............................................................................................3
2.Introduction..........................................................................................................4
3.Ownership & Tenure............................................................................................4
4.Geology of the Area Blue Duck Area...................................................................9
5.Review of the Mines...........................................................................................10
5.1 Blue Duck Mine......................................................................................................10
4.2 Orcus Mine.............................................................................................................13
4.3 Eiffel Blue Mine......................................................................................................14
4.4 The Etna Thistle Mine.............................................................................................17
6.Conclusion and Recommendations...................................................................19
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3. 1. Executive Summary
A review of the Mining Claims that are under Thawlay Pvt Ltd was undertaken. The
mining claims comprise claims registered under Sigmar Pvt Ltd, Claude Edwards &
Sons Pvt Ltd and Thistle Gold Mining Company Pvt Ltd. The claims registered under
Sigmar Pvt Ltd and Claude Edwards & Sons Pvt Ltd are situated in the vicinity of the
Cam and Motor Gold Project while the claims registered under Thistle Gold Mining
Company Pvt Ltd are situated 15 km to the south east of Cam and Motor Mine.
A review of the mining claims registered under Sigmar Pvt Ltd indicates that the claims
have significant potential of hosting gold deposits. Records indicate that the Blue Duck
and Orcus claims have potential ore resources that have not been mined. This is due to
probably the gold price at the time. The potential resources are summarized below:
Mine Tonnes Grade Ounces
Blue Duck 95, 015 7.65 23, 370
Orcus 17 93, 362 13.64 40, 943
Orcus 1 5, 738 5.88 1, 085
Total 194, 114 10.48 65, 406
The potential resources represent the delineated resources from the underground assay
plans.
In addition to the delineated resources, there is potential of delineating sulphide
mineralized bodies from the alteration halos in the hanging wall and footwall of the
mined quartz horizons. Historical mining only targeted the quartz reefs and a review of
the literature indicates that the wall rocks mineralized with pyrite and arsenopyrite were
not mined. The delineated resources are open ended hence there is potential of
increasing the resources from strike extensions and down-dip extensions.
It is therefore the opinion of the writer that there is potential to generate more than 500
000 ounces by probing for mineralized alteration haloes, lateral and down dip
extensions.
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4. The Etna Thistle Mine seem to have been extensively mined out hence hence potential
resources could not be delineated. However an exploration programme will need to be
put in place to probe for strike and downdip extensions of the mined reefs.
It is therefore recommended that consideration is given to the acquisition of the mining
claims registered under Sigmar Pvt Ltd and Claude Edwards & Sons Pvt Ltd.
2. Introduction
A review of the Blue Duck and Orcus Mine Claims was undertaken to aid decision
making in purchasing the claims. This review highlights the opinion of the author from
the study of historical data, geological and underground maps from the mines. The
claims are situated 1,3km north east of the Cam & Motor Mine. The geology map below
shows the location of the are registered under Sigmar Pvt Ltd and Claude Edwards &
Sons Pvt Ltd in relation to Cam and Motor Mine.
3. Ownership & Tenure
Ownership structure as at 2014 is shown below.
• Thawlay has an agreements of sale for Thistle Gold Mining, Claude Edwards &
Sons Pvt Ltd and Sigmar Pvt Ltd
• Raintree has a loan from Thawlay. The Raintree Group and the Forester
prospect pledged as collateral.
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THAWLAY
Raintree Six
(Forest)
100%
Etna Thistle
Gold Mining
100%
Claude
Edwards &
Sons Pvt Ltd
100%
Sigmar Pvt Ltd
100%

5. • There is a termination agreement with Raintree.
Claims under Sigmar Pvt Ltd and Claude Edwards & Sons Pvt Ltd:
The mining claims situated in the vicinity of the Cam and Motor Mine are given below.
The claims are registered under Sigmar Pvt Ltd and Claude Edwards & Sons Pvt Ltd.
Claim Name Reg. No Reg Date No. Claims
Inspection Certificate
Folio No. Type Insp No. Valid to
Eiffel Blue 200 01/01/1950 9 627700 Work 61/62 01/01/2016
Eiffel Blue E Ext 619 10 681700 Work 61/62 01/01/2016
Eiffel Blue E Ext
SR 620
Eiffel Blue Ext 735 01/01/1950 10 681702 Work 61/62 01/01/2016
Eiffel Blue DB 2895 01/01/1950 10 3824 Work 63/65 01/01/2015
Eiffel Blue C 3254 26/05/1908 10 3823 Work 100/102 30/08/2016
Duck Egg 3346 12 3825 Work 106/108 06/08/2015
Arizona No. 1 3418 25/09/1908 12 3820 Work 105/106 25/09/2015
Teal 3494 30/10/1908 8 3818 Work 103/105 30/10/2015
Drake 3589 21/12/1908 10 3819 Work 105/107 21/12/2015
Orcus 17 6556 23/04/1912 4 3822 Work 101/103 21/08/2016
Skookum 14400 27/08/1953 10 3827 Work 60/62 27/08/2015
Snap 14405 14/10/1953 3828 Work 60/62 14/10/2015
Eiffel Gold 15728 18/12/1967 10 3826 Work 46/48 18/02/2015
Armadillo 15936 10/11/1972 10 3813 Work 41/43 10/11/2015
Dying Flutter 15937 10/11/1972 10 3814 Work 41/43 10/11/2015
Orcus No. 1 15938 10/11/1972 10 3815 Work 41/43 10/11/2015
Orcus A 15939 10/11/1972 9 3816 Work 41/43 10/11/2015
Orcus B 15940 10/11/1972 8 3817 Work 41/43 10/11/2015
The map below shows the mining claims on Geology.
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6. 6

7. Etna Thistle Mining Claims:
Claims in the Thistle Area are listed below. The claims are registered under Thistle Gold
Mining Company Pvt Ltd.
Name Reg. No
Registration
Certificate Inspection Certificate
Reg Date No. Claims Folio No. Type Insp No. Valid to
DAGON 15889
THISTLE 15932 12/10/1972 10 3797 Work 41/43 12/10/2015
TSSESSEBE 15933 12/10/1972 10 3798 Work 41/43 12/10/2015
THISTLE 2 16085 10/01/1974 5 3801 Work 39/41 10/01/2015
THISTLE 3 16089 22/01/1974 5 3802 Work 40/42 22/01/2015
ETNA 16178 26/07/1974 10 3805 Work 39/41 26/07/2015
DAGONET 16179 26/07/1974 10 3806 Prod Val 39/41 26/07/2015
DAGONET 2 16180 26/07/1974 10 3807 Prod Val 39/41 26/07/2015
DAGON 2 16181 26/07/1974 10 3808 Work 39/41 26/07/2015
DAGON 3 16182 26/07/1974 10 3809 Prod Val 39/41 26/07/2015
ETNA 2 16313 08/03/1971 9 3800 Work 08/03/2015
TSSESSEBE 2 16376 21/02/1979 10 3803 Prod Val 34/36 21/02/2015
TSSESSEBE 3 16615 15/04/1980 10 3799 Work 34/36 15/04/2015
SITE 418 19/02/1992 3 ha 443042 Annual Payment 10/02/2016
The map below shows the Etna Mine Cliams. There are two sets of claims; One set
covering the Thistle Etna Mine and one set of three claims covering the Tssessebe
Mine.
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8. 8

9. 4. Geology of the Area Blue Duck Area
The geology map below shows the location of the claims registered under Sigmar Pvt
Ltd and Claude Edwards & Sons Pvt Ltd in relation to Cam and Motor Mine.
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10. 5. Review of the Mines
5.1 Blue Duck Mine
The reef comprises narrow quartz lenses, sometimes carrying visible gold. It is
mineralized with arsenopyrite, hence it is refractory. Mineralisation also comprise
stibnite and scheelite. Historical records indicate that the ore channel is narrow
and unspectacular in appearance and is hosted by a tight shear in a propylitised
fine grained greenstone. It has the characteristics of the Petrol Reef. There is a
parallel reef dipping 37 degrees south in the footwall of the main reef. Cross
reefs have also been recorded dipping westwards. Generally there is abundant
arsenopyrite associated with pyrite. Historical production from the mine is given
in the table below.
Year Tons Milled Ounces
Recovered
Grade
(g/t) Remarks
1909 -1911 5285 3012 17.71
1939 - 1940 1956 232 3.69
1951 6730 1111 5.13
Includes Egglantine,
Eileen Alannah & Mill
Total 13971 4355 9.70
Potential Tonnage
Based on a review of the old assay plans, the potential ore resources
underground are given below:
Category Block
Weighted Grade
(g/t)
Average Width
(cm) Tonnage (t)
1 87.51 37 155
Inferred 2 87.51 12 061
3 87.51 5 062
4 87.51 1 422
5 87.51 2 821
Subtotal 87.51 58 522
6 3.20 53.67 1 947
7 5.60 119.94 11 858
8 5.79 116.47 10 902
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11. Probable 9A 3.49 85.09 2 517
9B 7.90 87.21 2 494
10 11.00 99.97 1 750
11 9.20 95.79 1 865
12 11.42 82.53 1 297
13 8.80 78.59 644
14 10.41 55.88 1 220
Subtotal 7.65 87.51 36 493
TOTAL 7.65 95 015
DEVELOPMENT WORK UNDERTAKEN.
The following development work was recently undertaken at Blue Duck by Thawlay Pvt
Ltd.
• Opened and renovated vertical shaft
• Transformer Installed
• Dewatering undertaken
• Opening of Incline shaft partly done
• Hoist (350tpd) & Steel Structures delivered
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12. 12

13. 4.2 Orcus Mine
The Orcus Claims are situated 1,6km east-north-east of the Cam & Motor Mine. There
are two reefs in the claims. Historical development on these reefs did not go beyond the
prospecting stage. Short drives were mined to a depth of 100 metres. The ore body is
made up of quartz stringers and arsenopyrite mineralisation. Historical production
from the mine is given in the table below.
Year Tons Milled Onces
Recovered Grade
(g/t)
1913 1 12 373.24
1914 135 129 29.72
1980s 31563 7,134 7.03
Total 31699 7,275 7.14
In the early 80’s 31563 t @ 7,03 g/t over 104 cms were declared and minor
stoping took place.
POTENTIAL ORE RESOURCES
A review of the underground maps produced the following potential resources:
Orcus 1 Resource:
Width (m) Tonnage (t) Grade (g/t) Reserve/Resource
Block 1 1.16 2,899.28 7.4 Probable
Block 2 0.55 1,586.01 4.33 Probable
Total Probable 4,485.29 6.31
Block 3 0.86 1,252.32 4.33 Inferred
Grand Total 5,737.61 5.88
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14. Orcus 17 Resource:
Block Width (m) Tonnage Grade (g/t) Reserve/Resource
B1 0.86 4,286.50 18.32 Probable
B2 0.99 20,808.55 8.77 Probable
B3 0.84 5,809.03 15.26 Probable
Total Probable Reserve 30,904.08
11.3
1
B4 0.64 8,329.78 11.72 Inferred
B5 0.9 54,128.01 15.26 Inferred
Total Inferred Resource 62,457.80
14.7
9
Grand Total 93,361.88
4.3 Eiffel Blue Mine
The Eiffel Blue reef is hosted in a shear zone striking North – South and dipping 70
degrees to the west. It lies on a contact of the a large lens of felsites and greenstone.
The reef comprises a quartz reef averaging 60cm in width. It pinches and swells. The
footwall of the reef is sheared. The wall rock is mineralized with pyrite and arsenopyrite.
There is minor chalcopyrite.
Historical records indicate that 91549 ounces of gold were extracted from 196 865 tons
of ore at 14.57g/t
The underground maps indicate that the reef was extensively stoped out from the mined
development. Mining was undertaken to a depth of 183m. Potential lies on the alteration
halo and down-dip extension. There is need to investigate the sheared footwall alteration
halo since it is mineralized with pyrite and arsenopyrite. There is therefore a possibility of
delineating a sulphide mineralized orebody. No potential remnant resources could be
estimated from the underground plans.
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15. 15

16. 16

17. 4.4 The Etna Thistle Mine
The mine is situated 15km to the south east of Cam and Motor Mine in the Rhodesdale
gneisses. There are two sets of mining claims.
The quartz reef is granite gneiss hosted and strikes NNW and SSE. It varies in width
from 183cm to a cm. The average width is 76cm. The average dip in the upper levels is
20 degrees. The reef steepens with depth to 25 to 30 degrees. The reef is laminated
with quartz of different ages and is mineralized with pyrite, galena sphalerite and visible
gold.
Historical production
A total of 211 758 fine ounces of gold were produced from 1 047 478 tons of ore at an
average grade of 5.08g/t
Potential Resources
The Etna Thistle mine: A review of the underground plans indicate that the Etna Thistle
Mine was extensively mined out to a depth of 725m. The plan however indicates the
presence of pillars underground on various levels. These cannot be systematically
mined efficiently and mining them can result in ground collapse.
The Etna Thistle mine claims can still be explored to try and identify un-mined parallel
reefs.
Tssessebe Mine Claims: A review of the underground plans indicate that not much
mining took place in the Tssessebe claims. An incline shaft was sunk to 6 level and only
two levels were developed (level 5 and 6). Only a little bit of stoping was done on 5
level. An assay plan is not available to enable the estimation of resources. With the
historical gold prices, it is very likely that there are resources that were considered low
grade that can now be mined. An exploration programme will have to be put in place to
evaluate these workings.
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18. Dumps: There are a number of small dumps in the claims and the table below
summarises the resources on the dumps.
Thistle Gold Mining - Dump Resource
m3 SG Tons Grade Kg Oz
Dump 1 220,329 1.4 308,461 0.60 196 6,227
Dump 2 5,598 1.4 7,837 0.40 3 103
Dump 3 10,441 1.4 14,617 1.40 21 666
Dump 4 31,000 2.0 62,000 1.00 62 1,968
Dump 5 153,596 1.4 215,034 0.60 123 3,914
Dump 6 89,860 1.4 125,804 0.10 14 446
TOTAL 733,753 0.56 419 13,324
Gold Processing Plant: A gold processing plant has been constructed at Etna Thistle
Mine. The plant has a crushing and milling capacity of 400 tons per day and a CIL plant
with a capacity of 200 tons. A comprehensive assessment report of the plant has been
prepared.
EVALUATION OF DEVELOPMENT WORK UNDERTAKEN AT BLUE DUCK
The following development work was recently undertaken at Blue Duck by Thawlay Pvt
Ltd.
• Opened and renovated vertical shaft
• Transformer Installed
• Dewatering undertaken
• Opening of Incline shaft partly done
• Hoist (350tpd) & Steel Structures delivered
It is estimated that approximately $2mill was spent on the development work
undertaken.
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19. 6. Conclusion and Recommendations
7.1 Blue Duck and Orcus
• A review of the historical data of the mining claims registered under Sigmar Pvt Ltd
indicates that the claim have significant potential of hosting gold deposits. Records
indicate that the Blue Duck and Orcus claims have ore reserves that have not been
mined.
• In addition to the delineated resources, there is potential of delineating more
sulphide mineralized bodies from the alteration halos in the hanging wall and
footwall of the mined quartz horizons. Historical mining only targeted the quartz
reefs and a review of the literature indicates that the wall rocks mineralized with
pyrite were not mined,
• The possibility of delineating sulphide bodies with significant implies that there is a
possibility of delineating open pittable gold deposits.
• In addition to sulphide ore bodies from alteration halos there is also potential for
delineating oxidized ore bodies close to surface.
• The Etna Thistle mine: The Etna Thistle Mine claims were extensively mined out.
No resources have been estimated from these workings.
• Tssessebe Mine Claims: Not much mining took place in the Tssessebe Mine. An
exploration programme needs to be put in place to evaluate these workings.
The Etna Thistle Mine was extensively mined out to a depth of 725m. The plan however
indicates the presence of pillars underground on various levels. These cannot be
systematically mined efficiently and mining them can result in ground collapse.
The Etna Thistle mine claims can still be explored to try and identify un-mined parallel
reefs.
RECOMMENDATIONS
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20. • In view of the depleting resources at Renco mine with depth for the sustainability of
the RioZim Group mining operations, it is recommended that RioZim signs an MOU
with Thawlay Pvt Ltd and express an interest to acquire the reviewed properties.
• It has to be noted that there is potential to increase the resources by probing
alteration haloes, lateral and down dip extensions of the mined reefs through
exploration. If this is undertaken there is therefore potential to increase the value of
the reviewed properties.
• A plus minus $10mill value of acquiring the Thawlay Properties is therefore
suggested.
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