High grade gold intersected at Lucky Strike

Transcription

1 L efry ASX Annuncement LEFROY EXPLORATION LIMITED A Western Australian Fcused Gld Explrer ASX Cde: LEX Shares n Issue: 64.8m Current Share Price: 13c Market Capitalisatin: $8.4m Bard f Directrs Chairman Grdn Galt Nn-Executive Directrs Michael Davies James Beecher Geffrey Pigtt Managing Directr Wade Jhnsn Flagship Explratin Prject Lefry Gld Prject Grwth Explratin Prjects Lake Jhnstn Prject Murchisn Prject Australian Registered Office Level 2, 11 Ventnr Avenue West Perth, 6005 Highlights High grade gld intersected at Lucky Strike Recent RC drilling at Lucky Strike has intersected further multiple shallw high grade gld intersectins Significant gld intersectins returned frm the drilling prgram include:- 5m at 13.6g/t Au frm 84m in LEFR070 Including 3m at 22.3g/t Au frm 85m 7m at 3.64g/t Au frm 82m in LEFR071 Including 2m at 10.2g/t Au frm 85m 11m at 2.24g/t Au frm 104m in LEFR071 27m at 1.35g/t Au frm 33m in LEFR073 14m at 2.81g/t Au frm 78m in LEFR074 Including 3m at 9.37g/t Au frm 81m The results cntinue t strengthen and expand the previusly discvered gld system hsted within a banded irn frmatin (BIF) Gld mineralisatin hsted in multiple BIF units has nw been demnstrated t extend ver a 300m strike length and is pen alng strike and at depth Diamnd drilling has cmmenced t further advance the gelgical and mineralisatin mdel E: inf@lefryex.cm T: ARBN: A Mining Lease applicatin has been ldged given the rbust nature f this develping gld system ASX Annuncement, 1 P age

2 ASX Annuncement The Bard f Lefry Explratin Limited (ASX: LEX) ( Lefry r the Cmpany ) is pleased t annunce the results frm a recent phase f a reverse circulatin (RC) drilling prgram at Lucky Strike, within the Lefry Gld Prject. The prject is lcated apprximately 50km suth east f Kalgrlie in the Eastern Gldfields f Western Australia. Lucky Strike is lcated apprximately 3km t the nrthwest f the high grade Lucky Bay pen pit, mined by Silver Lake Resurces (ASX:SLR) during 2015, and is 5km t the suth west f the Randalls Prcessing Plant currently being perated by SLR (Figure 1). Figure 1 Lcatin f the Lucky Strike Trend relative t the Red Dale and Capstan Prspects and prximity t the Randalls Prcessing Facility (SLR). The key Lucky Strike Trend gld intersectins are als highlighted (refer t Figure 2 fr detailed inset map and recent drilling). The Mining Lease applicatin is highlighted in blue. The Cmpany cmpleted a fcused six (6) hle RC drilling prgram ( prgram ) at Lucky Strike in April 2018 t evaluate a 60m gap in the earlier drill cverage that was interpreted t ccupy part f a higher grade (>5g/t Au) zne within the 300m strike defined frm earlier RC drilling (refer t LEX March 2018 Quarterly reprt 27 April 2018). The results frm this prgram have successfully cnfirmed a cherent high grade zne that has a strike length f 100m and remains pen at depth. The prgram cmprised 640m f angled RC drilling n tw sectins (Figure 2) within the 60m gap, t a 20m by 20m drill spacing. The drilling f this gap was cnsidered a high pririty target subsequent t a reinterpretatin f the nature f the higher tenr gld mineralisatin assciated with sulphide altered banded irn frmatin (BIF) hst units in earlier hles LEFR057 and 058. ASX Annuncement, 2 P age

3 ASX Annuncement The key aim f the recent prgram was t test the cncept f a high-grade extensin t the mineralisatin in the sulphide altered BIF units within 80m depth frm surface. The apprach was guided by an understanding f ther BIF hsted gld systems elsewhere in the gldfields (e.g. Hill 50, Lancefield, Mt Mrgans, Maxwells) where clser spaced drilling was required t understand the cntrls n mineralisatin. The results frm the earlier diamnd hles LSRD001 and 006 that recgnised the BIF hst had prvided the breakthrugh at Lucky Strike and aided the rerientatin f the drill directin in the initial and subsequent RC drilling prgrams. The apprach in the April prgram was t build upn thse fundatin prgrams, recgnising the discrete nature f the individual hst units and the high grade mineralisatin assciated with sulphide altered BIF. Figure 2 Lucky Strike gelgy and drill hle plan highlighting key recent (sectins 7&8) and earlier drill intersectins. (Refer Figures 4 & 5 fr drill sectins fr Lines 7 and 8) The results frm the six (6) hle prgram have delivered strng, brad gld intersectins frm the tw sectins drilled (Table 1), and supprt a cherent high grade cmpnent t the system (Figure 2). The drilling intersected multiple, mineralised banded irn frmatin ( BIF ) units within a package f metamrphsed siltstne, shale and black shale (Figures 3 and 4). The identificatin f multiple BIF units imprves the ptential fr a brader zne f mineralisatin. The full extent f the thickness f the BIF package is yet t be determined. Drill depths ranged frm 75m t 126m dwn hle. Hle LEFR074 was abandned at 99m due t water inflws jepardizing sample quality. Diamnd drilling has cmmenced t intersect the lwer mineralised BIF (Figure 4). Tw additinal shallw RC precllars fr diamnd drilling were als cmpleted. ASX Annuncement, 3 P age

4 ASX Annuncement Significant results frm the RC drill prgram include:- 6m at 1.99g/t Au frm 60m in hle LEFR069; 6m at 2.26g/t Au frm 45m in hle LEFR070; 5m at 13.6g/t Au frm 84m in hle LEFR070; Including 3m at 22.3g/t au frm 85m 7m at 3.64g/t Au frm 82m in hle LEFR071; Including 2m at 10.2g/t Au frm 85m 11m at 2.24g/t Au frm 104m in hle LEFR071; Including 3m at 6.16g/t Au frm 104m 27m at 1.35g/t Au frm 33m in hle LEFR073; 14m at 2.81g/t Au frm78m in hle LEFR074; Including 3m at 9.37g/t Au frm 81m Figure 3 Lucky Strike drill sectin Line 7 Figure 4 Lucky Strike drill sectin Line 8 ASX Annuncement, 4 P age

5 ASX Annuncement The gld intersectins in hles LEFR070 & LEFR071 (Figure 3) are a significant breakthrugh fr Lucky Strike. These tw hles nw demnstrate cntinuity f mineralisatin bth dwn dip and alng strike and als shw higher grade intervals with the lwer mst BIF unit. The gld mineralisatin in the lwer BIF bth LEFR070 and LEFR071 is frm an interval f semi massive t massive pyrite within BIF in the primary zne (fresh rck) and supprts an earlier intersectin f similar gelgy in LEFR058. The high-grade mineralisatin at Lucky Strike may be related t a nrthwest trending fault (Figure 2) that ffsets the BIF units. The gemetry and character f this fault is unclear but the Cmpany believes it culd have a strng influence n the gld mineralisatin. Imprtantly, the Capstan surface gld anmaly is lcated apprximately 500m t the nrth alng the strike extensin f this fault. The results frm this recent prgram prvide supprt fr high-grade gld mineralisatin assciated with sulphide altered BIF that is becming mre apparent with deeper drilling. The Cmpany interprets this as evidence that the system is becming mre rbust with depth. The cnstraints t the BIF package are yet t be established. Diamnd Drilling Cmmenced The Cmpany has cmmenced a prgram f diamnd drilling t further advance the understanding f the BIF hsted gld mineralisatin at Lucky Strike. Tw RC precllared diamnd tails will be cmpleted between existing RC hles n tw sectins t gain an appreciatin f the secndary cntrls n the gld mineralisatin. In additin, a shrt diamnd tail has cmmenced n hle LEFR074 t intersect the lwermst BIF unit. The prgram is expected t be cmpleted by the end f May. Mining Lease Applicatin In respnse t the recent high-grade gld results and the develping cherent gld trend, the Cmpany has ldged an applicatin fr a Mining Lease t cver Lucky Strike and its extensins (Figure 2). The Cmpany cnsiders the applicatin as a very imprtant step in the ptential early develpment f Lucky Strike. The applicatin is expected t take nine mnths t be granted. ASX Annuncement, 5 P age

6 ASX Annuncement Table 1: 2018 RC Drilling-Lefry Gld Prject-Lucky Strike Trend RC drill hle intersectins tabulated belw are calculated with a 0.25g/t Au lwer cut fr the entire drill prgram. These represent the intersectins frm individual 1m sample results and include 2m f internal dilutin. Samples are rutinely cllected as 1m sample intervals frm the cyclne. Hle ID Cllar N (MGA) Cllar E (MGA) Cllar RL Dip Azimuth Depth Frm (m) Depth T (m) Dwnhle Intersectin (m) LSRD LEFR Au Value (g/t) Including LEFR LEFR Including LEFR LEFR Including LEFR LEFR LEFR Including LEFR Including LEFR LEFR LEFR LEFR LEFR Including LEFR LEFR Including Including LEFR LEFR LEFR LEFR Including Including LEFR ASX Annuncement, 6 P age

7 ASX Annuncement Lucky Strike Backgrund Recnnaissance early stage aircre (AC) drilling by the Cmpany since Nvember 2016 defined a new and emerging gld mineralised trend hsted within sedimentary rcks ver a 3,000m strike length ( refer Figure 1). The gelgical sequence at Lucky Strike and the mineralisatin intersected is cnsidered similar t the Lucky Bay gld depsit. This supprts the Cmpany s view f the emergence f a cmbined 4.5km lng gld mineralised structural trend frm the Lucky Bay depsit, alng the Lucky Strike Trend, and cincident with the interpreted psitin f the Mt Mnger Fault (Figure 1) The results frm the tw earlier aircre drill campaigns returned encuraging near surface xide gld intersectins frm the nminal 160m spaced drill sectins including 11m at 3.53g/t Au frm 60m t End f Hle (EH) in LEFA136 and 10m at 4.60g/t frm 24m t EH in LEFA171. In August 2017 a pre-cllared diamnd drilling prgram, cnsisting f 6 hles fr a ttal f 362.5m f cre drilling, was cmpleted t determine the gemetry f the hst rck and gld mineralisatin. The drilling evaluated three key sectins spaced apprximately 1,000m apart alng the 3,000m gld mineralised trend defined frm the earlier aircre drilling campaigns. Drill hle LSRD006 returned significant multiple narrw high grade xide gld intersectins. The mineralised intervals crrespnd t a wide zne f highly xidised Banded Irn Frmatin (BIF) and siltstne. Significant intersectins frm LSRD006 include 1.7m at 63g/t Au frm 44.7m (Inc. 0.9m at 107g/t Au) and 0.3m at 10.3g/t Au frm 46.6m. Lucky Strike is part f a grup f gld targets identified by LEX within 5km s f the Randalls Prcessing Plant (Figure 1). These include the Red Dale prspect and the recently annunced (refer LEX Annuncement 7 February 2018) Capstan anmaly. These targets are a cntinued key fcus fr explratin and drilling by the Cmpany. ASX Annuncement, 7 P age

8 ASX Annuncement Abut Lefry Explratin Limited and the Lefry Gld Prject Lefry Explratin Limited is a WA based and fcused explrer taking a disciplined methdical and cnceptual apprach in the search fr high value gld depsits in the Yilgarn Blck f Western Australia. Key prjects include the Lefry Gld Prject t the suth east f Kalgrlie and the Lake Jhnstn Prject 120km t the west f Nrseman. The 100% wned Lefry Gld Prject cntains mainly granted tenure cvering 577km 2, lcated in the heart f the wrld class gld prductin area between Kalgrlie and Nrseman. The Prject is in clse prximity t Gld Fields St Ives gld camp, which cntains the Invincible gld mine lcated in Lake Lefry, and is als immediately suth f Silver Lake Resurces (ASX: SLR) Daisy Milan gld mining peratin. Lcatin f the Lefry Gld Prject relative t Kalgrlie, majr gld depsits in the district and land hldings f Gld Fields, Nrthern Star Resurces Ltd and Silver Lake Resurces Limited. Fr Further Infrmatin please cntact: Wade Jhnsn Managing Directr Telephne: wjhnsn@lefryex.cm ASX Annuncement, 8 P age

9 ASX Annuncement Ntes Specific-ASX Annuncements The fllwing annuncements were ldged with the ASX and further details (including supprting JORC Reprting Tables) fr each f the sectins nted in this Annuncement can be fund in the fllwing releases. Nte that these annuncements are nt the nly annuncements released t the ASX but specific t explratin reprting n the Lucky Strike Trend at the Lefry Gld Prject. Lefry Cmmences Explratin: 24 Octber 2016 Lefry Cmmences Drilling at Lucky Strike: 17 Nvember 2016 Managing Directrs AGM Presentatin: 5 December 2016 Drilling at Lucky Strike Supprts and Extends Gld Trend: 23 December 2016 Explratin Update: Aircre Drilling t Recmmence at Lucky Strike: 29 March 2016 Significant Intersectins at Lucky Strike Prspect: 18 April 2017 Aircre Drill results enhance the Lucky Strike Trend: 7 July 2017 Explratin Update: Diamnd Drilling Cmmences at the Lucky Strike Trend: 31 August 2017 High Grade Gld Mineralisatin Intersected at Lucky Strike: 21 September 2017 September 2017 Quarterly Activities Reprt: 25 Octber 2017 RC Drilling Cmmenced at Lucky Strike: 23 Nvember 2017 RC Drill Results Enhance Lucky Strike Gld Discvery: 12 December 2017 Explratin Update: RC Drilling Underway at Lucky Strike: 25 January 2018 Drill Results Extend Gld Mineralisatin at Lucky Strike: 14 February 2018 March 2018 Quarterly Activities Reprt: 27 April 2018 The infrmatin in this annuncement that relates t explratin targets and explratin results is based n infrmatin cmpiled by Wade Jhnsn a cmpetent persn wh is a member f the Australian Institute f Gescientists (AIG). Wade Jhnsn is emplyed by Lefry Explratin Limited. Wade has sufficient experience that is relevant t the style f mineralisatin and type f depsits under cnsideratin and t the activity being undertaken t qualify as a Cmpetent Persn as defined in the 2012 editin f the JORC Cde. Wade Jhnsn cnsents t the inclusin in this annuncement f the matters based n his wrk in the frm and cntext in which it appears. ASX Annuncement, 9 P age

10 Sampling techniques JORC CODE, 2012 Editin-Table 1 Reprt Lefry Prject Lucky Strike Prspect April/May 2018 RC Drilling SECTION 1: SAMPLING TECHNIQUES AND DATA Criteria JORC Cde Explanatin Cmmentary Nature and quality f sampling (eg cut channels, randm chips, r specific specialised industry standard measurement tls apprpriate t the minerals under investigatin, such as dwn hle gamma sndes, r handheld XRF instruments, etc). These examples shuld nt be taken as limiting the brad meaning f sampling. Include reference t measures taken t ensure sample representivity and the apprpriate calibratin f any measurement tls r systems used. Aspects f the determinatin f mineralisatin that are Material t the Public Reprt. In cases where industry standard wrk has been dne this wuld be relatively simple (eg reverse circulatin drilling was used t btain 1 m samples frm which 3 kg was pulverised t prduce a 30 g charge fr fire assay ). In ther cases mre explanatin may be required, such as where there is carse gld that has inherent sampling prblems. Unusual cmmdities r mineralisatin types (eg submarine ndules) may warrant disclsure f detailed infrmatin. Drilling techniques Drill type (eg cre, reverse circulatin, pen-hle hammer, rtary air blast, auger, Bangka, snic, etc) and details (eg cre diameter, triple r standard tube, depth f diamnd tails, face-sampling bit r ther type, whether cre is riented and if s, by what methd, etc). Drill sample recvery Lgging Methd f recrding and assessing cre and chip sample recveries and results assessed. Measures taken t maximise sample recvery and ensure representative nature f the samples. Whether a relatinship exists between sample recvery and grade and whether sample bias may have ccurred due t preferential lss/gain f fine/carse material. Whether cre and chip samples have been gelgically and getechnically lgged t a level f detail t supprt apprpriate Mineral Resurce estimatin, mining studies and metallurgical studies. Whether lgging is qualitative r quantitative in nature. Cre (r cstean, channel, etc) phtgraphy. The ttal length and percentage f the relevant intersectins lgged. The sampling nted in this release has been carried ut using Reverse Circulatin (RC) drilling at the Lucky Strike Prspect. The RC prgram cmprised 8 angled hles fr 640m, hles varying in depth frm m with and average depth f 80m. 2 f the RC hles will have a DD tail n them which will be drilled t a depth f >100m at a later date. All hles were drilled (dip) and tward (Azimuth) spaced alng 20m centres. Sampling and QAQC prtcls as per industry best practice with further details belw. RC samples were cllected frm the cyclne at 1m intervals in plastic buckets and arranged in rws f 10 r 20 samples. 1m split samples were cllected frm 0m t end f hle (EOH). 1m split samples directly ff the drill rig cne splitter attached t the cyclne were cllected t prduce a 2-3kg sample which was sent t the Labratry in Kalgrlie fr analysis. Samples were dried, pulverised, split t prduce a 40g charge fr analysis by fire assay with Au determinatin by Atmic Absrptin Spectrmetry (AAS). The Reverse Circulatin (RC) drilling was cmpleted by a Schramm 650 RC rig frm Raglan Drilling (Kalgrlie). Lw air face sampling hammer drilling prved satisfactry t penetrate the reglith and reduce cntaminatin risk. The majrity f samples remained dry with gd recvery btained. Where samples were wet r experienced less than desired recvery this was instantly evident in size f the bulk sample laid n the grund and was carefully recrded by a Lefry representative n hard cpy sample sheets. Drilling with care (eg. clearing hle at start f rd, regular cyclne cleaning) if water encuntered, t reduce incidence f wet sticky sample and crss cntaminatin, the cyclne was cleaned ut again at the end f each drill rd. Insufficient sample ppulatin t determine whether relatinship exists between sample recvery and grade. The quality f the sample (wet, dry, lw recvery) was recrded during lgging. Detailed lgging f, reglith, lithlgy, structure, veining, alteratin, mineralisatin and recveries recrded in each hle by qualified gelgist. Lgging carried ut by sieving individual 1m sample cuttings, washing in water and the entire hle cllected in plastic chip trays fr future reference. Every hle was lgged fr the entire length. Sub-sampling If cre, whether cut r sawn and whether quarter, half N cre drilling cmpleted

11 Criteria JORC Cde Explanatin Cmmentary r all cre taken. techniques and sample preparatin Quality f assay data and labratry tests Verificatin f sampling and assaying Lcatin f data pints If nn-cre, whether riffled, tube sampled, rtary split, etc and whether sampled wet r dry. Fr all sample types, the nature, quality and apprpriateness f the sample preparatin technique. Quality cntrl prcedures adpted fr all sub-sampling stages t maximise representivity f samples. Measures taken t ensure that the sampling is representative f the in situ material cllected, including fr instance results fr field duplicate/secnd-half sampling. Whether sample sizes are apprpriate t the grain size f the material being sampled. The nature, quality and apprpriateness f the assaying and labratry prcedures used and whether the technique is cnsidered partial r ttal. Fr gephysical tls, spectrmeters, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and mdel, reading times, calibratins factrs applied and their derivatin, etc. Nature f quality cntrl prcedures adpted (eg standards, blanks, duplicates, external labratry checks) and whether acceptable levels f accuracy (ie lack f bias) and precisin have been established. The verificatin f significant intersectins by either independent r alternative cmpany persnnel. The use f twinned hles. Dcumentatin f primary data, data entry prcedures, data verificatin, data strage (physical and electrnic) prtcls. Discuss any adjustment t assay data. Sampling f 1m intervals directly ff a rigmunted cne splitter int calic bags. Sample weight 2-3 kg. 1m samples r 4m cmpsite samples were cllected, determined by the gelgist s interpretatin f where the mineralisatin was mst likely t ccur. 4m cmpsite samples were cllected by using a scp t cllect a representative split frm each bulk sample that made up a 4m cmpsite interval, this was placed int a pre-numbered calic bag. Pre-numbered calic bags cntaining the samples were despatched t the labratry fr assay. The sample preparatin f the RC samples fllws industry best practice, invlving ven drying, pulverising, t prduce a hmgenus sub sample fr analysis. Alng with submitted samples, standards and blanks were inserted n a regular basis where the pre-numbered calic bag ended with the numbers 20, 40, 60, 80 and 100. Standards were certified reference material prepared by Gestats Pty Ltd. Duplicate samples were cllected at znes f interest and at irregular intervals f abut 2 per hle. Samples rutinely analysed fr gld using the 40gram Fire Assay digest methd with an AAS finish at Bureau Veritas s Kalgrlie Labratry. Quality cntrl prcess and internal labratry checks demnstrate acceptable levels f accuracy. At the labratry regular assay repeats, lab standards, checks and blanks were analysed. The results have been reviewed and verified by alternative cmpany persnnel. N hles were twinned. Capture f field lgging is electrnic using Tughbk hardware and Lgchief sftware. Lgged data is then exprted as an excel spreadsheet t the Cmpany s external database managers which is then laded t the Cmpany s DATASHED database and validatin checks cmpleted t ensure data accuracy. Assay files are received electrnically frm the labratry and filed t the Cmpany s server, and prvided t the external database manager. There has been n adjustment t the assay data. The primary gld (Au) field reprted by the labratry is the pririty value used fr pltting, interrgating and reprting. Accuracy and quality f surveys used t lcate drill hles Drill hle psitins were surveyed using a DGPS (cllar and dwn-hle surveys), trenches, mine wrkings perated by a third-party cntractr. Drill lcatin and ther lcatins used in Mineral Resurce estimatin. is set up by the supervising gelgist. Dwn hles Specificatin f the grid system used. surveys were cmpleted by Raglan drill crew using a Quality and adequacy f tpgraphic cntrl. gyr and recrding a survey every 10m dwn the hle. Grid System MGA94 Zne 51.Tpgraphic elevatin captured by using the differential GPS.

12 Criteria JORC Cde Explanatin Cmmentary Data spacing fr reprting f Explratin Results. Data spacing and distributin Orientatin f data in relatin t gelgical structure Whether the data spacing and distributin is sufficient t establish the degree f gelgical and grade cntinuity apprpriate fr the Mineral Resurce and Ore Reserve estimatin prcedure(s) and classificatins applied. Whether sample cmpsiting has been applied. Whether the rientatin f sampling achieves unbiased sampling f pssible structures and the extent t which this is knwn, cnsidering the depsit type. If the relatinship between the drilling rientatin and the rientatin f key mineralised structures is cnsidered t have intrduced a sampling bias, this shuld be assessed and reprted if material. Hle spacing at nminal 20m centres n rientated drill lines with line spacing 20m t the NW and SE f previus Lefry drilling including pre-cllar RC hles spaced 10m between existing Lefry RC hles which are knwn t cntain significant mineralisatin. This is t cnfirm/discver the majr structural cntrls n high-grade gld mineralisatin. Mineralisatin at Lucky Strike is cnstrained t a particular irn rich gelgical unit lgged as a SIF (sedimentary irn frmatin). Where SIF was lgged by the gelgist, 1m samples were sent t the labratry fr analysis by fire assay. Where it has been inferred n gld mineralisatin shuld ccur, samples were cllected using a scp frm the 1m bulk samples laid ut n the grund at the time f drilling, int a 4m cmpsite sample which was als sent t the labratry fr the same fire assay analysis. The gelgist dictated t the field supervisr which samples shuld be cllected as 1m samples and which nes shuld be a cmpsite sample. The field supervisr then cllected these samples in sequence using pre-numbered calic bags. Where 1m samples were cllected, the riginal 1m spilt frm the cyclne was simply placed int a numbered calic bag. The Nrth-East rientated drill traverses cnsidered effective t evaluate the rughly Nrth-West trending sedimentary irn frmatin (SIF) stratigraphic unit which is interpreted t be the prspective hst rck. The RC drill hles were intended as fllw-up wrk t assess previus Lefry AC and DD drill hles which were rientated n East-West drill lines which intercepted high gld grades and favurable gelgy. The new rientatin is cnsidered t be a mre effective test f true width f the hst rck due t the fact the hst rck unit is striking rughly Nrth-West/Suth-East. Sample security The measures taken t ensure sample security. Samples were bagged in labelled and numbered plyweave r plastic bags, cllected and persnally delivered t the Bureau Veritas Labratry (Kalgrlie) by Cmpany field persnnel. Samples were then srted and checked fr incnsistencies against ldged Submissin sheet by Bureau Veritas staff. Bureau Veritas checked the samples received against the Lefry Explratin Limited (LEX) submissin sheet t ntify f any missing r extra samples. Fllwing analysis, the sample, pulps and residues are retained by the labratry in a secure strage yard. Audits r reviews The results f any audits r reviews f sampling techniques and data. All sampling and analytical results f the drill prgram were reviewed by the Senir Explratin Gelgist and Managing Directr. Anmalus gld intersectins were checked against library chip trays t crrelate with gelgy. N specific audits r reviews have been cnducted.

13 Sectin 2: REPORTING OF EXPLORATION RESULTS LEFROY PROJECT- Lucky Strike Prspect-April/May 2018 RC Drilling Criteria JORC Cde Explanatin Cmmentary Type, reference name/number, lcatin and wnership including agreements r material issues with third parties such as jint ventures, partnerships, verriding ryalties, native title interests, histrical sites, wilderness r natinal park and envirnmental settings. Mineral tenement and land tenure status Explratin dne by ther parties Gelgy Drill hle Infrmatin The security f the tenure held at the time f reprting alng with any knwn impediments t btaining a licence t perate in the area. Acknwledgment and appraisal f explratin by ther parties. Depsit type, gelgical setting and style f mineralisatin. A summary f all infrmatin material t the understanding f the explratin results including a tabulatin f the fllwing infrmatin fr all Material drill hles: easting and nrthing f the drill hle cllar elevatin r RL (Reduced Level elevatin abve sea level in metres) f the drill hle cllar dip and azimuth f the hle dwn hle length and interceptin depth hle length. If the exclusin f this infrmatin is justified n the basis that the infrmatin is nt Material and this exclusin des nt detract frm the understanding f the reprt, the Cmpetent Persn shuld clearly explain why this is the case. The Lefry Prject is lcated apprximately 50 km in suth east frm Kalgrlie, Western Australia and cnsists f a cntiguus package f whlly wned tenements held under title by LEX r its whlly wned subsidiary s Hgans Resurces Pty Ltd. The wrk described in this reprt was cmpleted n Explratin Licence E 26/183 held 100% by Lefry Explratin Limited via acquisitin in the December 2016 quarter f hlder Hgans Resurces Pty. Ltd. The tenement is current and in gd standing with the Department f Mines and Petrleum (DMP) f Western Australia. Sme previus explratin wrk was cmpleted n the Lucky Strike trend by Integra Mining Limited, Western Mining and Octagnal Resurces. The bulk f this wrk included phases f Aircre (AC). This wrk identified mineralisatin alng the trend, hwever n previus explrer had prduced the gld grades Lefry has identified. The Lefry Prject is lcated in the suthern part f the Nrseman Wiluna Greenstne Belt and straddles the triple junctin f three crustal units, the Parker, Brara and Bulng Dmain. The Lefry prject tenements are mstly cvered by alluvial, clluvial and lacustrine material with very little utcrp. Archean gelgy at the Red Dale prspect is cncealed by verlying transprted clay, laterite and sand/gravel. Drill infrmatin has revealed majr lithlgy types including schistse in part ultramafic sequence, dlerite/gabbric rcks and intermediate intrusives. Aermagnetic data reveals (truncated in part) NNW trending features. Table cntaining drill hle cllar, survey and intersectin data fr material (gld intersectins >0.25gpt Au with a max f 2m internal dilutin) drill hles are included in the Table in the bdy f the annuncement. N Infrmatin has been excluded.

14 Criteria JORC Cde Explanatin Cmmentary In reprting Explratin Results, weighting averaging techniques, maximum and/r minimum grade truncatins (eg cutting f high grades) and cut-ff grades are usually Material and shuld be stated. Data aggregatin methds Relatinship between mineralisatin widths and intercept lengths Diagrams Balanced reprting Other substantive explratin data Further wrk Where aggregate intercepts incrprate shrt lengths f high grade results and lnger lengths f lw grade results, the prcedure used fr such aggregatin shuld be stated and sme typical examples f such aggregatins shuld be shwn in detail. The assumptins used fr any reprting f metal equivalent values shuld be clearly stated. These relatinships are particularly imprtant in the reprting f Explratin Results. If the gemetry f the mineralisatin with respect t the drill hle angle is knwn, its nature shuld be reprted. If it is nt knwn and nly the dwn hle lengths are reprted, there shuld be a clear statement t this effect (eg dwn hle length, true width nt knwn ). Apprpriate maps and sectins (with scales) and tabulatins f intercepts shuld be included fr any significant discvery being reprted. These shuld include, but nt be limited t a plan view f drill hle cllar lcatins and apprpriate sectinal views. Where cmprehensive reprting f all Explratin Results is nt practicable, representative reprting f bth lw and high grades and/r widths shuld be practiced t avid misleading reprting f Explratin Results. Other explratin data, if meaningful and material, shuld be reprted including (but nt limited t): gelgical bservatins; gephysical survey results; gechemical survey results; bulk samples size and methd f treatment; metallurgical test results; bulk density, grundwater, getechnical and rck characteristics; ptential deleterius r cntaminating substances. The nature and scale f planned further wrk (eg tests fr lateral extensins r depth extensins r large-scale step-ut drilling). Diagrams clearly highlighting the areas f pssible extensins, including the main gelgical interpretatins and future drilling areas, prvided this infrmatin is nt cmmercially sensitive. All reprt grades have been length weighted. High grades have nt been cut. A lwer cut ff f 0.25gpt Au has been used t identify significant results (intersectins). Where present, higher grade values are included in the intercepts table and assay values equal t r > 1.0 g/t Au have been stated n a separate line belw the intercept assigned with the text includes. Reprted RC results have been calculated using 1m split samples. N metal equivalent values r frmulas used. All results are based n dwn-hle metres. Previus drill cverage has prvided guidance fr the presence f steeply dipping stratigraphy cmprising a sedimentary package f rcks cntaining sedimentary irn frmatins (SIF) which prvide the best hst rck fr gld mineralisatin. A recently cmpleted grund magnetic survey ver the area f interest cnfirms a NW strike f the magnetic sediments within the stratigraphy and hence has guided the rientatin f drilling fr this prgram. Structural measurements n rientated diamnd drill cre frm a previus Lefry Explratin drill prgram als assisted in decided which rientatin t drill these fllw up RC hles. Results frm this drill prgram d nt represent true widths hwever hles are designed t intercept the hst sequence perpendicular t its strike. Apprpriate summary diagrams (sectin & plan) are included in the accmpanying annuncement. Significant assay results are prvided in Table 1 fr the recent LEX RC drill prgram. Drill hles with n significant results are nt reprted. Significant assay results frm histrical drilling are nted in the bdy f the reprt. All relevant data has been included within this reprt. The apprpriate next stage f explratin planning is currently underway and nted in the bdy f the reprt.