Predictive Discovery: Agreement on Major Gold Mineralised System- Cote D’Ivoire

Predictive Discovery Limited (ASX:PDI) has signed an agreement with an Ivoirian company by which PDI will provide and/or arrange financing and exploration management on a granted exploration permit and a second permit which is under application in northern Cote D’Ivoire. The agreement is subject to the second permit (Wendene) being granted by the Ivoirian Government. The Wendene permit application covers the large Bobosso gold mineralised system:

□ High-grade and/or wide, shallow historical RC and diamond drill intercepts including:

 5m at 20.6g/t Au from 48m

 7m at 9.5g/t Au from 26m

 32m at 1.9g/t Au from 12m

 35m at 1.6g/t Au from 65m

 2m at 29.2m g/t Au from 66m

□ 7km2 gold-in-soil anomaly covering with average value of 0.4g/t Au

□ Multiple mineralisation styles and lode positions extending over large area

□ Historical database - 569 RC holes and 11 diamond drill holes

□ Significant parts of 7km2 soil anomaly not tested by RC drilling, and numerous untested gold-in-soil anomalies along strike.

□ 800km2 ground position after Wendene is granted.

Mr Paul Roberts, Predictive’s Managing Director said: "Subject to the grant of Wendene, Predictive sees Bobosso as an important new opportunity for the Company and its shareholders. Historical drilling has intersected gold mineralisation over a large area, and there is significant potential to make new discoveries both on the fringes of the drilled area and along strike to the north and south. Primary gold mineralisation is present in numerous, variably orientated zones. Shallow, possibly alluvial or laterite-hosted gold zones, are also present, which may offer the opportunity for low cost, early gold production.

While there is already a substantial drill database on Bobosso, we see good potential to identify more mineralisation and better ore continuity within drilled areas by orientating holes in a different direction to most of the historical drilling.

Predictive has been actively seeking opportunities in Cote D’Ivoire since 2011. The country is politically stable and the economy is growing strongly. The Mining Act has been modernised and ground has become available to new entrants. Our increasing focus in this country is bearing fruit, firstly through the encouraging, recent exploration results generated by our JV partner, Toro Gold (ASX releases dated 15/9/15 and 20/10/15) and now with this agreement on Bobosso."

Introduction

The Bobosso Project consists of a granted exploration permit (Bassawa) and a permit application (Wendene) in northern Cote D’Ivoire (Figure 1). Predictive has been advised that the Wendene permit application has passed through the required internal government approval processes and awaits presentation to the Cote D’Ivoire Government’s Council of Ministers for grant. This is expected after completion of the current national election period.

Applications for Bassawa and Wendene were both made by an Ivoirian Company, XMI SARL (XMI). XMI also holds another permit application, Niakaramandougou, which is located south-west of Predictive’s Ferkessedougou permit (Figure 1). The Bassawa permit was granted by decree n°2015-570 dated 29 July 2015. Bassawa and Wendene each cover an area of 400km2. Niakaramandougou covers 399 km2.

Both permit areas were previously covered by a single exploration permit that was granted to Equigold in 1997, then passed onto Lihir Gold Limited and subsequently to Newcrest Mining Limited following the successive mergers of those companies. Predictive understands that the ground was surrendered last year because of the age of the permit, which was well beyond the normal time for exploration envisaged by the Cote D’Ivoire Mines Administration.

The reported geology of the area includes mafic volcanics, sediments and intrusive rocks of variable composition including diorites and granites.

Historical Exploration Results

XMI has provided PDI with a historical exploration database including technical reports. This has been validated by a visit to the main drilled area and sighting some of the historic drill collars in their correct locations. Subsequently, many of the original drill assay data certificates have also been obtained.

The Equigold and Lihir Gold Limited historical RC and diamond drilling on the Wendene permit application consisted of 569 RC and 11 diamond drill holes. This work followed up soil sampling and widely spaced RAB drill lines on both the Wendene and Bassawa permits.

The historical soil sampling obtained many anomalous results over the Bassawa permit and Wendene permit application (Figure 2). Of particular note is a 7km2 area in Wendene in which most of the values are above 100ppb Au (Figures 3, 8 and 9). This area contains 729 soil samples with an average arithmetic value of 394ppb Au (0.39g/t Au) and peak values of 39.8g/t Au, 20.2g/t Au and 6.89g/t Au. There are numerous plus 100ppb Au anomalous values outside of this area, many of which are untested by any drilling.

569 RC holes and 11 diamond drill holes were completed in the area of the 7km2 anomaly (Figure 4). Of these, 221 holes contained at least one 2gxm intercept2 at a cut-off grade of 0.5 g/t Au. Most of these intercepts were at shallow depths. The average (vertical) depth tested by drilling was approximately 80m.

All RC and diamond drill intercepts are reported in the drill results table at the end of this release. High-grade and/or wide mineralised intercepts recorded in the database include the following:

 BRC047: 32m at 1.93g/t Au from 12m

 BRC053: 2m at 29.70g/t Au from 0m

 BRC083: 5m at 20.60g/t Au from 48m

     BRC097: 7m at 5.36g/t Au from 17m

 BRC262: 35m at 1.56g/t Au from 65m

 BRC278: 7m at 9.52g/t Au from 26m

 BRC311: 2m at 29.16g/t Au from 66m

 BRC343: 25m at 1.45g/t Au from 11m

 BRC552: 9m at 5.01g/t Au from 4m

 BRC557: 31m at 1.18g/t Au from 59m

 BRC561: 9m at 4.21g/t Au from 12m

Predictive makes the following observations about the Bobosso project:

 - The drilled area covers a major gold mineralised system with numerous separate zones of gold mineralisation, apparently with variable vein and/or mineralised shear orientations.

 - Gold mineralisation continuity is not the same everywhere. In places, convincing continuity can be seen (e.g. Figures 5 and 7). Elsewhere, continuity is not as clear. This may be due, in part, to holes having been drilled in the wrong direction (e.g. Figure 6). Field observations of foliation angle by Predictive geologists tend to support this idea. Some mineralisation may also be present as thin veins with limited strike extent.

- Elevated gold values near surface are quite common, and help explain the very large gold anomaly. These values may be explained by partly lateritised alluvium/colluvium formed by erosion of the underlying mineralisation. In places, continuity of these near-surface values from hole to hole is clear (e.g. Figure 7). Such zones offer the potential for early low cost gold production from this site.

- Gold grades in unweathered rocks are associated with elevated levels of quartz and/or pyrite.

Geologically logged primary rock types include andesite, basalt, diorite and lesser felsic schists, tuffs and granite. Some inconsistencies between the geology of adjacent holes have been noted, which suggests that re-logging will be required. Predictive understands that the RC drill chips still exist and could be available for re-logging by PDI geologists. Re-logging of the geology and systematic XRF measurements of chips and drill core will offer a good opportunity to both better understand mineralisation continuity and plan follow-up drilling.

 According to the historical drill logs, the depth of weathering averages about 30m.

Most of the historical drilling was conducted on 200m spaced drill lines. It is unlikely that a formal resource estimation could be made using such widely spaced drill lines. Nevertheless, Predictive believes that, when supported by the results of new infill drilling, this data is sufficiently well documented for use in a future resource calculation because:

o the digital database includes hole collar information, downhole survey data, assays, geological logs and drill core photography,

o based on Predictive’s field visit, many hole collar markers appear to be intact, allowing validation of the drill locations by an independent expert, and

o most of the RC drill gold analysis certificates are now held by Predictive.

Few or no villagers live or farm directly on the Bobosso gold soil geochemical anomaly. There are signs of recent artisanal mining activity but PDI is informed that Government officials have recently been actively discouraging artisanal mining in this area. Predictive is informed that past explorer relationships with the local villagers were positive.

Local infrastructure is generally quite good. The nearest town, Dabakala, is connected to Cote D’Ivoire’s sealed road network and is a 90 minute drive from the project area. There is also a substantial power line which runs within a few kilometres of the Bobosso gold anomaly.

To view the announcement in full please click on this link http://www.asx.com.au/asxpdf/20151028/pdf/432gnq6dzq0449.pdf