Cavalier Resources Limited announced the completion of its first upwards revision of the Mineral Resource Estimate (MRE) at the Crawford Gold Project (Crawford) in Leonora, Western Australia. Five domains were modelled. Domains 1 to 4 are oxide domains modelled as flat lying supergene zones within the oxidised zone.

Domain 5 has been modelled as a sub-vertical mineralised zone based on a series of holes that indicate a vertical structure rather than a flat lying zone. This zone requires additional drilling to confirm the orientation and extent. Solid mineralised shapes in the oxide zone were interpreted based on gold grades.

A nominal grade of 0.3g/t was used to delineate the shapes. However, some lower grades were included to ensure continuity of the generally horizontal mineralisation. Mineralisation was modelled as a series of supergene layers within the oxidised zone.

Thicker zones of mineralisation are found towards the base of oxidation, sitting on and mimicking the shape of the top of fresh rock. Mineralisation has a gentle plunge towards the south-east as the weathering profile deepens in this direction. There is generally depletion of gold in the upper oxidised zone, but there are some smaller, thinner zones present.

There is significantly less data in the fresh rock. A series of narrow lodes dipping -30° towards 230° has been interpreted. Due to the lack of data the fresh rock modelling has not been constrained within a solid domain.

A search ellipse with adequately constrained search dimensions was used to estimate grade. As such, all fresh rock mineralisation has been categorised as Inferred due to the lower confidence in the geological interpretation and the relative paucity of assay data. The Pig Well Graben is on the eastern margin of the Keith-Kilkenny Tectonic Zone (KKTZ); it extends over 60km in a NNW direction and is up to 8km in width.

Within the graben, the dominant lithology is a coarse polymictic volcaniclastic conglomerate; there are minor amounts of other volcaniclastic and epiclastic rocks (Sullivan, 2011). Outside the graben, lithologies consist of mafic and felsic volcanics, dacite porphyry and associated epiclastics, quartz dolerite and minor ultramafics. The Crawford trend refers collectively to local fault systems on the eastern margin of the Pig Well Graben.

It is an intensely altered (sericite-fuchsite-silica-carbonate- sulphide) shear zone that is defined by continuous anomalous drilling intersections in a north westerly direction for 20 km from Crawford Prospect through to and beyond the Gambier Lass Mine. It is one of a series of mineralised structures on the eastern side of the KKTZ. Drilling by previous explorers was generally widely spaced.

This work identified anomalous scattered gold mineralisation associated with broad zones of intense alteration. The vast majority of recent historic drilling on mining lease M37/1202 was shallow and focused on the central supergene resource area. Historic rig samples were collected at 1m intervals after going through a rig mounted cyclone and splitter.

Drilling by private explorers Roman Kings Limited and Kingwest Resources Limited was carried out with large rigs with sufficient air to keep holes and samples dry. Drilling was with face sampling bits drilling standard 5.25 inch diameter holes. Private developer Specrez Limited's infill drilling was carried out with a small track mounted rig that had a depth capacity of about 60m; this rig did encounter some issues with keeping samples dry at the bottom of some of the holes, but these intervals were generally outside the mineralised zones.

Sampling by historic explorers was initially with 4 or 5 meter composites with 1m samples taken in zones of mineralisation. Drilling by Kingwest, Specrez and Cavalier assayed all 1m samples. Only RC drilling was utilised in the resource estimation process.

Gold grade was estimated in 3 passes for the main oxide Domain 1. Pass 1 was based on the variogram model ranges; pass 2 was based on double this and pass 3 was three times the variogram model ranges. Oxide domains 2, 3 and 4 were estimated in one pass only due to their smaller lateral extents. Domain 5, the sub-vertical lode, was estimated in one pass as this was sufficient to adequately populate blocks with grade, although deeper parts of the domain were not estimated.

The mineralisation within the fresh rock zone was estimated with inverse distance squared only in one pass. Search directions were based on the maximum ranges in the variogram model and correspond to the geological interpretation of a gently south-east dipping, horizontal blanket of gold mineralisation. The Domain 1 variogram model was applied to oxide domains 1 to 4. Search extents were selected to ensure that all blocks within the domains were informed with the relevant variables.

In the case of gold, the search distances were about double the ranges indicated by variography. The parent block size is 5m x 10m x 2.5m, based on the minimum block size to ensure adequate delineation of the domains. A sub-block size of 1.25m x 1.25m x 1.25m was used for more detailed delineation of surfaces.

Grades were estimated into the parent block size.