Our Projects – North Stawell Minerals

PROJECTS

Tenements

“North Stawell Minerals’ tenement portfolio has a commanding position over the most gold-prospective geology under cover in Western Victoria.”

Seven contiguous tenements cover 504 km2 along trend of the 5 Moz Au deposit at Stawell. The tenements dominate the northern continuation of the gold-prospective Stawell Corridor where it extends under a thin blanket of Murray Basin sediments (cover). 85% of NSM’s tenements are in cover-dominated areas.

Tenement	Status	Number	Area (km2)	Initial NSM Holding	Earn-in Potential
Wildwood	Granted	RL007051	50	51%	90%
Barrabool	Granted	EL5443	182	51%	90%
Glenorchy	Granted	EL006156	10	100%	n/a
West Barrabool	Granted	EL007419	37	100%	n/a
Wimmera Park Granite	Granted	EL007182	4.5	100%	n/a
Deep Lead	Granted	EL007324	167	51%	90%
Germania	Granted	EL007325	54	51%	90%
Total Granted	100%		504.5km

North Stawell Minerals tenement portfolio

Victorial tenement regulation

Victoria is a stable exploration jurisdiction with transparent mining and exploration governance, centred on the Minerals Act (the MRSDA)1 and Minerals Regulations (MR(SD)(MI))2 . Regulation is monitored and enforced by Earth Resources and Regulation (ERR)3 a division of the Department of Jobs, Precincts and Regions (DJPR)4.

Exploration Licences are granted for up to 12 years. Exploration Licences are typically granted on 5 year terms with and additional 5 years extension (10 years total). In special circumstances, an additional 2 years is available, at the discretion of the Regulator.

All tenements are registered with the Regulator. The information is available through ERR’s online portal, GeoVIC5.

Compulsory Exploration Licence relinquishments occur in years 2,4,7 and 9 of a tenements life, and require 25%, 35%, 20% and 10% respective release of the original tenement area.

Targets and prospects with encouraging geology can, if conditions are met, be converted to a Retention Licence (RL). These licences are granted where a Mineral Resource is identified, and additional work is required to further advance the geology and resources.

An online reference for Victoria Licence regulation is available online 5

1 https://www.legislation.vic.gov.au/in-force/acts/mineral-resources-sustainable-development-act-1990/126

2 https://www.legislation.vic.gov.au/in-force/statutory-rules/mineral-resources-sustainable-development-mineral-industriesregulations/003

3 https://earthresources.vic.gov.au/

4 https://djpr.vic.gov.au/

5 https://earthresources.vic.gov.au/legislation-and-regulations/guidelines-and-codes-of-practice/exploration-licence-guidelines

Figure 2 The Stawell-Mariners mineralisation model.Gold mineralisation is focussed into the margins of the basalt and into the rocks above the basalts for considerable distances.

Figure 3: NSM geologists analysing the Mariners Reef at a road cut at the Stawell Gold Mine.

Projects

The North Stawell Minerals tenements span the highly prospective western margin of the Stawell Zone (the Stawell Corridor) for 60km from Stawell to Murtoa. The gold prospective geology is mostly (85%) covered by a layer of un-mineralised Murray Basin sediments (termed ‘cover’). The cover, although an increased challenge for exploration, has significant potential to mask shallow, multi-million ounce gold mineralisation similar to the Stawell Mine to the immediate south (4.9Moz Au historic mining).

Using the Stawell Mine as a model for mineralisation, and aided by unprecedented high resolution geophysics to “see through” the cover, NSM has identified dozens of target areas that may be similar to Stawell, and has prioritised twelve for initial focus. Any of these highly prospective areas has the potential to host shallow, multi-million ounce gold mineralisation just beneath the thin cover.

North Stawell Minerals (NSM) explores against a Stawell Gold model. High-resolution gravity and magnetics data allows interpretation of the possible position of non-outcropping basalt domes (either deep or under a blanket of cover). The margins of the domes (and the areas interpreted to have structural similarities to Stawell are prioritised for drilling. This has returned a very high ‘hit rate’ for anomalous gold. Even where the basalt is deeper, potential remains.

The Stawell model indicates mineralisation wraps around the margins of the basalt buttress, but also as vein systems that ‘ramps off’ the domes into the wall rock above the basalts where structural pressure shadows are interpreted. At Stawell, the Mariners-type mineralisation is a good example this type of veining, extending 300m above the causative dome (pictured in figure 3). Therefore, by consistently exploring above the interpreted domes, NSM maximises the opportunity to hit Mariners-type veins, and follow them down system to Stawell-type mineralsiation at depth.

Ashens

The Ashens Prospect lies in the far north of NSMs tenements. It is comprised of a 4.1km basalt unit bounded by regionally significant faults and is fully under cover. The southern end of the prospect is intruded by late intrusive rocks that appear to be emplaced along northeast trending faults. The geometry, structure and intrusive history of Ashens has striking similarities to the geology at Stawell. airborne gravity data has significantly refined the interpretation of the basalt shape, focussing NSM exploration in the right areas.

Historic drilling occurs as five drill lines with approximately 1 km spacing, and has regularly intersected the basalts. Anomalous gold was returned on all lines. Two of the northern-most lines returned significant gold grades along the ‘hinge’ of the basalt, highlighting potential for a 1.8 km trend of higher grades, with significant potential to include plunging, Stawell type mineralisation along the margins of the basalt. Best results include:

5m at 1.21 g/t Au from 56m (ASA115), and

7m at 1.11 g/t Au from 58m (ASA184)

Figure 4: The Ashens Prospect. Background: AGG Gravity (Warmer Colours = Greater Chance of Basalt Dome at Depth).

Challenger

Challenger is the continuation of Ashens to the south of the granites and is also 100% under cover. The northern half of the target (approx. 3.5km of the 7km target) has been drill-tested and the entire southern extent of the prospect remains untested. The prospect includes very high arsenic anomalism and coherent, continuous low grade gold results, principally on the western side of the interpreted basalt. However, significant (+1g/t Au) grades have not been intersected. Importantly, the basalt has not been intersected either, indicating that the Challenger target is ‘relatively deeper’ than Ashens – potentially explaining the lesser grades, but also highlighting that the Challenger target has not had the top eroded off – increasing potential at depth.

Effective exploration at Challenger requires finding the mineralisation conduit near surface with either drilling or geophysics and pursuing it to depth.

Lubeck Tip

Lubeck Tip represents an exceptional application of the NSM exploration model through cover. Interpreted as a covered, structurally bounded basalt slice in the eastern Stawell Corridor, this previously untested target was identified in geophysics and returned +1 g/t Au grades within the first (16 hole) air core program. The target is 1.6km in length and interpreted to be truncated to the south by a northeast trending fault that trends towards a small interpreted intrusive, 500m to the east. Sheared basalts have been intersected to the northern end of the target, indicating that the prospective dilation zone in the roof of the basalt may be shallow, and not eroded off the target, preserving gold potential.

Best results include:

1m @ 5.05 g/t Au from 56m (NSAC0172)

1m @ 3.00 g/t Au from 42m (NSAC0173)

Figure 5: Lubeck Tip Prospect: Background: AGG Gravity (Warmer Colours = Greater Chance of a Basalt Dome at Depth).

Lubeck

The 4.2 km Lubeck Prospect lies immediately west of the Coongee Fault, the eastern boundary of the Stawell Gold Corridor. It occurs in the same structural position as the mineralisation at Wildwood and Darlington (NSM). Lubeck is interpreted as a fault-bounded slab of basalts within carbonaceous sedimentary rocks, a strong analogy for the mineralsiation at Stawell. An interpreted intrusive occurs to the northwest.

Historically, only three air core lines are drilled across the target, without returning significant gold grades. Most of the gold-anomalous results are in the northern end of the target, but high resolution gravity data indicates potential structural complexity to the south that might increase prospectivity.

Old Roo

The Old Roo basalt is one of the larger basalts identified in the tenements (4.5km long and 1.5km across). Significant AC drilling and minor DD follow up has been completed historically, totalling 210 holes, and has demonstrated that the basalt is immediately beneath the cover sequence, with the top of the basalt eroded off. The margins of the basalt have been well tested around most of the perimeter of the prospect, returning multiple anomalous god intercepts, but no significant results to date. Geophysical modelling has identified features within the basalt that may be prospective (a departure from the Stawell-gold model). NSM’s prior work, following up on air core holes within the basalt, returned significant grade, compounding evidence that a modified Stawell old model rejuvenates prospectivity. The result, interpreted as an embayment within the basalt, returned:

2m @ 1.48 g/t Au from 25m* (NSAC0380) – ending in mineralisation

Regional geology indicates the possibility of early faults that cut the basalt – and could serve as conduits for mineralisation during later mineralising events, an intriguing opportunity at Old Roo and other NSM prospects to mineralise the basalts internally.

Forsaken

The Forsaken target lies in the eastern side of the Mt Pleasant Fault – one of the major faults in the centre of the Stawell Corridor and interpreted as the western boundary of the most prospective geology. The geology at Forsaken appears to form a large fold-fault system across the fault boundary, resulting in a regional scale anticlinal in the hanging wall position – a highly favourable geometry to focus gold mineralisation. The Forsaken prospect occurs at the northern end of a 7 km basalt dome, where the basalt drags towards the fault, with at least two interpreted mineralisation trends occurring adjacent to the basalt. Multiple anomalous gold intercepts occur, as well as multiple significant gold grades in air core drilling. Intercepts include:

1m @ 1.24 g/t Au from 31m (NSAC0244)

2m @ 3.08 g/t Au from 23m (GLA172)

2m @ 3.45 g/t Au from 23m (GLA184)

10m @ 1.34 g/t Au from 33m (GLA204)

The interpreted mineralisation trends remain open along strike, and along the margins of the interpreted basalt.

Wildwood

Wildwood was one of the original discoveries under cover north of Stawell, principally based on its distinct signature in regional magnetics data (nb. not all the basalts have convincing magnetics signatures). The prospect was recognised as having similarities to Stawell and was successfully explored from 2003, resulting in a JORC-code compliant resource:

Inferred Mineral Resource of 55,000 oz Au at 2.0 g/t Au (2006)

(see: NSM Prospectus, 2019. www.northstawellminerals.com).

The basalt at Wildwood is doubly plunging (north and south) and ribbons of mineralisation occur along its crest and shoulders. Drilling has, however, demonstrated that the steep flanks of the basalt are faulted out, interpreted to offset (or preclude) mineralisation.

The crest of the domes was drilled heavily in the early 2000’s to determine the potential for a shallow pit as a satellite ore-source to the Stawell Mine. Although never extracted, the work demonstrates that a small satellite deposit, particularly if it includes advantageous grades, has potential to augment mill feed at the Stawell Mine for even modest satellite mineralisation.

Wildwood has returned some excellent drilling results, focussed on the crest of the basalts, including:

7.40m @ 18.35 g/t Au from 39.70m (WWD041)

10m @ 12.69 g/t Au from 54m (WRC076)

12m @ 9.49 g/t Au from 34m (NSR0052)

12m @ 7.73 g/t Au from 36m (WRC062)

18m @ 4.18 g/t Au from 22m* (NSR0007)

5m @ 11.22 g/t Au from 63.60m (WWD043)

15m @ 3.04 g/t Au from 46m (NSR0060)

11m @ 4.08 g/t Au from 73m (WRC066)

16m @ 2.60 g/t Au from 27m (WRC001)

3m @ 13.01 g/t Au from 62m (WRC031)

Project review indicates that Wildwood remains open along the hinge of the dome. Following mineralisation to depth and/or better identifying controls on higher grade mineralisation have attractive upside for exploration.

Germania

Germania is the northern-most historic mine in the Stawell Corridor before the prospective geology disappears under a blanket of Murray Basin cover. The Prospect occurs at the northern end of the 14km long Darlington-Germania trend – a mineralised fairway that includes four small but significant historic mines to the immediate west of the regional Coongee Fault.

NSM has reconstructed the old mines from records (Germania East – 768 oz Au at 9.7 g/t Au and Germania West – 683 oz Au at 15.6 g/t Au) and interprets the geology as two north-trending, west-dipping parallel lodes. Historic drilling beneath the working has returned encouraging results under the old workings, including:

1.m @ 1.30 g/t Au from 17m (SD318)

2m @ 1.20 g/t Au from 40m (SD315)

The mineralisation is open to the north and to the south.

Caledonia

The Caledonia Prospect is a recent discovery within the Darlington-Germania trend, and is located 700m north-northwest of the historic Bonny Dundee Mine (1,116 oz at 20.6 g/t Au). The Prospect is under shallow cover (5m) and was identified with geophysics and geochemistry. Drilling has rapidly extended the gold target to 620m length, with deeper drilling demonstration mineralisation to 100m vertical extent. The mineralisation trends roughly northwest (parallel to the mineralisation at Darlington (2km south) and may indicate that ore shoots form as en-echelon (sub-parallel) zones to the orientation of the Darlington-Germania trend. Recent NSM drilling has returned encouraging gold grades, including:

1.00m @ 12.15 g/t Au from 36.00m (NSR0077)

6.00m @ 1.40 g/t Au from 63.00m (NSAC0451)

3.00m @ 2.34 g/t Au from 45.00m (NSR0077)

3.00m @ 1.61 g/t Au from 75.00m (NSAC0442)

1.00m @ 4.53 g/t Au from 6.00m (SEXC41)

1.00m @ 4.31 g/t Au from 0.00m (NSAC0410)

3.00m @ 1.32 g/t Au from 66.00m (NSAC0464)

3.00m @ 1.22 g/t Au from 48.00m (NSAC0463)

The higher grade results and the mineralisation at Bonny Dundee indicate real potential for higher grade at this prospect.

Caledonia lies to the east of an interpreted basalt, and may be the distal expression of a shear that branches off this deeper feature. Following the mineralisation down (and towards the potential basalt), as well as identifying the controls on higher grades, is a priority.

Long section of the Darlington trend. The plunge of the higher-grade core (darker red) is to be determined.

Darlington

Darlington is an historic mining area, 6km northeast of Stawell at the southern end of the Darlington-Germania trend, that produced 2,364oz at 18.2 g/t Au. The mineralisation is oriented northwest over 550m strike, dips southwest and may occur as multiple parallel lodes. Along the strike extent, the prospect has only been drill-tested to approximately 50m, and results include:

3.00m @ 2.83 g/t Au from 42.00m (SEXR1314)

1.00m @ 3.15 g/t Au from 57.00m (SEXR1319)

1.00m @ 2.24 g/t Au from 34.00m (SEXR1314)

1.00m @ 1.72 g/t Au from 31.00m (SEXR1314)

1.15m @ 1.37 g/t Au from 374.85m (DAD001)

1.00m @ 1.58 g/t Au from 23.00m (SEXR1322)

1.00m @ 1.53 g/t Au from 76.00m (NSR0080)

1.00m @ 1.10 g/t Au from 50.00m (SEXR1323)

0.80m @ 5.65 g/t Au from 201.20m (DAD001)

Resampling of historic core (DAD001) delivered additional grades that expand the potential at Darlington. A central area (150m strike) has potential to include higher grades, and plunge either steeply to the north or south (open in both directions).

Wimmera Park

The Wimmera Park prospect occurs at the contact between the eastern margin of the Stawell Corridor and a late, 2.5km intrusion. Air core drilling by NSM intersected gold and arsenic (up to 400ppm) anomalism over 300m immediately adjacent to the granite. A magnetic high, that extends 2km south, correlates with the anomalous gold and arsenic, locally extending into the footprint of the intrusion. The geology and mineralisation have similarities to Wonga, an historic mine (294koz Au at 4.38 g/t Au) on the margin of the Stawell granite where the intrusion is interpreted to have mobilised or upgraded the mineralisation within the thermal aureole (heat affected) area of the pre-intrusion metasedimentary rocks.

Doctors Hill

The Doctors Hill prospect is centred on an elongate,

northwest trending intrusion that has exploited one of

the late faults that cuts the Magdala (Stawell Mine) basalt dome – the Wildcat Fault. The prospect, because of its intrusion association, is explored as a possible repeat of the Wonga Mine model (potential intrusion-related gold). Elevated gold and arsenic returned from drilling on the southern margin of the intrusion is encouraging for future work. Surface geochemistry indicated that arsenic anomalism extends 400m from the granite, also on the southern margin, as well as minor, localised antimony over the intrusion.