Pan Malot Project

Copper, Lead, Zinc, Silver

• Highly prospective regional geological location, between the world-class Bawdwin Mine and the major Yadanatheingi Mine, on the same stratigraphic belt, with similar structures
• Abandoned copper mine, with copper grades to over 10%, and mineralised zone about 15m thick
• Recent lead-silver workings
• Sparsely-populated, forested, under-explored (to unexplored) terrain
• Within 100km of Mandalay, and mostly within 20km of the main Mandalay to Lashio highway and railway.

Pan Malot comprises two adjacent, granted, Exploration Permits covering approximately 243 square kilometres, plus a more recent application over 27.5 square kilometres.

• Permit No. 0001 / 2019 ELSHN - “NamSaw”;
• Permit No. 0004 / 2019 ELSHN - “Hkangtang”.

In combination, these Permits and application cover about 270 square kilometres. The Pan Malot project encompasses recent and historic small-scale mining. An area excised from the northeastern NamSaw Permit includes a number of recent silver-lead workings in a tract trending SSE-NNW. This strike extent would extend into Unity’s Permit in both directions. The Hkangtang Permit, to the southwest, surrounds the historic “Pan Malot” copper mine (which is within Unity’s more recent application), which was operating around 60-70 years ago, following “British-era” discovery. Local villagers have reported other small-scale workings, including alluvial (placer) gold. Although it is mostly within 20km of the main Mandalay to Lashio highway and railway, the terrain in much of the project is rugged, forested and sparsely populated. There has been no modern exploration.

Geologically, Unity considers the project to be in a highly prospective area. It is about 70-90km southwest of the world-class Bawdwin Mine (silver-lead-zinc-copper) and 30-50km east of the major Yadanatheingi Mine (silver-lead-zinc). It is on the same belt of stratigraphy as these mines, comprising Early Palaeozoic sediments, with occasional volcanics/ volcaniclastics, overlying pre-Cambrian rocks, with a shallow-dipping contact. In addition, the major Kyaukme Fault zone runs ENE-WSW into or through the Pan Malot project, parallel to the major Namtu Fault zone which runs into or through the Bawdwin deposit. It is possible that these deep-seated fault systems are part of the mineralisation “plumbing” system. Pan Malot is also at the north end of the major Kyaukyan Shear Zone, which extends south to the Bawsaing mining area.

Bawdwin has been mined for centuries, but under British colonial rule it was developed into the world’s largest producer of lead, prior to WW2. British production for 1918-1951 had ROM grades of 21% lead,15% zinc, 100-185 g/t silver, 0.3% copper, 0.2% nickel. Bawdwin is currently the flagship project of Myanmar Metals Limited (ASX:MYL), with a JORC Total Mineral Resource (Aug.2019) of100.6Mt at 4.0% lead,97g/t silver,1.9% zinc, 0.2% copper.

The main mineralised structures at both the Pan Malot mine and the “Namon” lead-silver workings trend SSE-NNW. This is the same orientation as the main structures hosting mineralisation at Bawdwin.

The historic “Pan Malot” copper mine is of particular interest, both for its own sake, and as an indication of the potential elsewhere. Pan Malot was found in an escarpment at the foot of a hillside. This is an area where mineralised rocks are likely to have been well-exposed, and recognised visually by local people walking along the adjacent river. Other mineralisation, similar or richer, might exist elsewhere, concealed by vegetation, soil or alluvium. Unity intends to use systematic modern techniques to find any such deposits.

Prior government mapping at the Pan Malot mine suggests a mineralised zone at least 15m wide and 60m long (open-ended). Mineralisation observed by Unity is stock work and disseminated, with multiple vein structures of variable thickness and orientations. The abandoned mine comprises complex narrow tunnelling in multiple directions, obviously selectively targeting high-grade material only. Unity sampling has returned high copper grades from veining, up to 11.2%, with lower grades from the intervening rock (around 0.3% to 0.4% copper) suggesting there is pervasive copper mineralisation throughout the rock. Unity considers that average copper grades are likely to be economic, and the entire ca.15m-wide zone might comprise a substantial bulk-mineable target.

Historical government assays from a single sample from the Pan Malot mine, collected in 2002, indicated significant gold and silver grades, as well as copper, with a reported assay of 4% copper, 4g/t gold, 261g/t silver, 0.3% lead, 1.4% zinc and 12.5% iron.

Unity’s initial exploration of the Pan Malot project will focus on stream sediment sampling of the entire project area, to identify any geochemical anomalism which might indicate the presence of mineralisation not previously recognised. At the same time, reconnaissance geological mapping and rock-chip sampling will be undertaken. Unity will hire and train local Myanmar geologists to conduct most of this work. It is anticipated that this first-pass work will generate targets for more detailed follow-up. In addition, some focus will be given to areas of known high prospectivity, such as the long-abandoned Pan Malot copper mine.