South Australia Project

Mount Sarah IOCG Project

The Mount Sarah project, located in northern South Australia, is approximately 1,000km NW of Adelaide. It is covered by three Exploration Licences, covering approximately 1,516km2 and is located proximal to the same crustal scale feature, the Tim O'Driscoll defined G2 lineament, which hosts the Olympic Dam, Prominent Hill and Carapeteena IOCG deposits. The Mount Sarah target is represented by adjacent magnetic and gravity features juxtaposed against a NW-SE trending structural feature. It does not outcrop but lies beneath a thick sequence of cover sediments. The specific target is an oval shaped eight milligal gravity anomaly with dimensions of over 6km x 3.5km. The size and scale of the Mount Sarah gravity anomaly is similar to that of the world class Olympic Dam (6km x 3km with 19 milligals gravity response) and Prominent Hill (3km x 0.5km with 6 milligals gravity response) IOCG deposits. MGL has completed three ground geophysical surveys and drilled an 811m and 1,2014m hole into this large target. An extensive zone (350m) of brecciation and epithermal alteration with anomalous levels of sulpho- group elements and gold pathfinder elements is present in one hole and a sulphide rich black shale in the other. The cause of the gravity high has not yet been conclusively determined. Further work is planned to determine the mineral potential of this project.

Summary

• MGL has earnt ~51% of this frontier exploration project (three ELs covering 1,516km2) and can increase this holding with further expenditure. • The Mount Sarah Project is an Iron Oxide Copper Gold (IOCG) target along the same regional trend that contains major IOCG deposits including Olympic Dam, Carrapateena and Prominent Hill. • Detailed ground geophysical surveys, including a gravity survey by MGL confirmed a large gravity anomaly (~26km2) with an offset magnetic high (classic IOCG geophysical signature). • Drilling of MS004 during July 2017 to 811 metres has confirmed an extensive zone (350m) of brecciation and epithermal alteration with anomalous levels of sulpho-group elements and gold pathfinder elements present. • Large epigenetic base and precious metal deposits involve hydrothermal alteration. • Drilling of MS006 in August and September 2018 to 1,214 metres intersected a thick sedimentary sequence dominated by pyritic black shale. • A fault has been interpreted in between drill holes MS004 & MS006 to account for the abrupt change in lithology. • The black shale intersected in MS006 could host Mt Isa style base metal mineralisation. • Work continues to better understand the mineral potential at Mount Sarah and plan appropriate follow up work.

Current Status

• Age dating of hydrothermal events from core samples collected from drill hole MS06. • Partnering with the CSIRO to complete follow up work to help vector in on mineral potential utilising all available information. • Proof of concept from trialling new technologies at Mount Sarah to be applied to other exploration projects within South Australia with the aim of discovering IOCG mineral systems.