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ALDORO RESOURCES LIMITED Capital/Financing Update 2019

Aug 20, 2019

64422_rns_2019-08-20_c98436ac-1be7-4017-a91d-1113fd270e26.pdf

Capital/Financing Update

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ASX ANNOUNCEMENT

21[st] August 2019

ALDORO GEARS UP TO DRILL LEINSTER NICKEL PROJECT

IN SEPTEMBER

  • High priority nickel sulphide targets confirmed following review of historical drilling and EM survey completed by ARN in 2018

  • EM survey defined targets untested by previous drilling and located in apparent embayment in ultramafic unit

  • PoW has been lodged and drillers contracted

  • Drilling scheduled to be carried out in mid September

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Figure 1. Modelled conductors (yellow = high conductance) and historical drilling

over EM image (Channel 30 B-field Z Component)

along with RTP1VD aeromagnetics at Firefly.

LH image : All drilling. RH image : Drilling > 100m depth

Suite 2, 1 Altona Street, West Perth WA 6005 E: [email protected] W: aldororesources.com

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Aldoro Resources Ltd ( Aldoro or the Company ) is pleased to announce it is gearing up for its maiden drilling programme at the Firefly Prospect, part of the Leinster Nickel Project.

Drilling will test a series of bedrock conductors modelled within an intense, 1km scale electromagnetic ( EM ) anomaly which appears to be associated with the contact of a high magnetic response unit (Figures 1 and 2). The strength of this anomaly implies it is likely have a high conductance and therefore a higher probability of a result of accumulations of sulphide minerals.

This anomaly was detected in the Company’s high powered ground electromagnetic ( EM ) survey over the Firefly Prospect in December 2018 (refer ASX Announcement 18 December 2018). Subsequent modelling of the anomalies and investigation of historical drilling has confirmed that the higher priority anomalies remain untested by drilling (Figure 1). The majority of the drilling at the Firefly prospect is less than 100m in depth using RAB techniques, insufficient to test the conductors (Figure 1, Appendix 1).

Significantly the highest priority targets lie within an embayment of the high magnetic response unit which are commonly hosts for sulphide accumulation in komatiitic basalt flows which host mineralisation in the Eastern Goldfields Province. The Leinster Nickel Project covers mapped and interpreted ultramafic units located along strike from Talisman Mining’s Sinclair Nickel Project and BHP’s Leinster Nickel Operations, which include the Perseverance, Rockys Reward and Venus Deposits (Figure 3).

The higher magnetic responses in the Firefly area have previously been determined by drilling to correlate to ultramafic units with recent confirmation in drilling by Talisman Mining ( Talisman ) at the Amy Rix Prospect adjacent to Aldoro’s Leinster Nickel Project (refer Figure 2, ASX.TLM Announcement 20 May 2019 and ARN announcement 23 May 2019).

A Programme of Works was lodged with the Department of Mines, Industry Regulation and Safety and drilling contractors have been engaged. The Company looks forward to updating shareholders when drilling commences, anticipated to be mid September.

For and on behalf of the board:

Sarah Smith

Company Secretary

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Figure 2. Regional RTP1VD aeromagnetic image showing location of Amy Rix (TLM) and Firefly (ARN) along with target area (Fig 2).

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Figure 3. Aeromagnetic Image showing the Leinster Projects along with the location of the Firefly & North Sinclair Prospects.

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Competent Persons Statement

The information in this announcement that relates to Exploration Results and other technical information complies with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) and has been compiled and assessed under the supervision of Mr Bill Oliver, a Director of Aldoro Resources Ltd. Mr Oliver is a Member of the Australasian Institute of Mining and Metallurgy and the Australasian Institute of Geoscientists. He has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Mr Oliver consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. The Exploration Results are based on standard industry practises for drilling, logging, sampling, assay methods including quality assurance and quality control measures as detailed in Appendix 1.

Disclaimer

Some of the statements appearing in this announcement may be in the nature of forward looking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which Aldoro operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forward looking statement. No forward looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside Aldoro’s control.

Aldoro does not undertake any obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of Aldoro, its Directors, employees, advisors or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward looking statement. The forward looking statements in this announcement reflect views held only as at the date of this announcement.

This announcement is not an offer, invitation or recommendation to subscribe for, or purchase securities by Aldoro. Nor does this announcement constitute investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. Investors should obtain their own advice before making any investment decision.

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APPENDIX ONE – Collar locations for holes shown on Figure 2.

Site ID Easting
(AMG z51)
Northing
(AMG z51)
Depth Dip Azi Type
06BWDC0001 292962 6876607 180 -65 90 RC
06BWDC0002 292960 6876607 204 -80 270 RC
06BWDC0003 292950 6876800 180 -60 90 RC
06BWDR0131 293895 6876800 25 -60 90 RAB
06BWDR0132 293860 6876800 25 -60 90 RAB
06BWDR0133 293820 6876800 28 -60 90 RAB
06BWDR0134 293780 6876800 28 -60 90 RAB
06BWDR0135 293740 6876800 19 -60 90 RAB
06BWDR0136 293700 6876800 14 -60 90 RAB
06BWDR0137 293660 6876800 28 -60 90 RAB
06BWDR0138 293620 6876800 19 -60 90 RAB
06BWDR0139 293580 6876800 25 -60 90 RAB
06BWDR0140 293540 6876800 25 -60 90 RAB
06BWDR0141 293500 6876800 19 -60 90 RAB
06BWDR0142 293940 6876300 16 -60 90 RAB
06BWDR0143 293900 6876300 22 -60 90 RAB
06BWDR0144 293860 6876300 25 -60 90 RAB
06BWDR0145 293780 6876300 40 -60 90 RAB
06BWDR0146 293740 6876300 27 -60 90 RAB
06BWDR0147 293700 6876300 20 -60 90 RAB
06BWDR0148 293620 6876300 19 -60 90 RAB
06BWDR0149 293580 6876300 19 -60 90 RAB
06BWDR0150 294320 6875900 46 -60 90 RAB
06BWDR0151 294280 6875900 33 -60 90 RAB
06BWDR0152 294240 6875900 39 -60 90 RAB
06BWDR0153 294200 6875900 51 -60 90 RAB
06BWDR0154 294160 6875900 65 -60 90 RAB
06BWDR0155 294120 6875900 75 -60 90 RAB
06BWDR0156 294080 6875900 55 -60 90 RAB
06BWDR0157 294040 6875900 55 -60 90 RAB
06BWDR0158 294000 6875900 40 -60 90 RAB
06BWDR0159 293960 6875900 31 -60 90 RAB
06BWDR0160 293920 6875900 27 -60 90 RAB
06BWDR0161 293880 6875900 36 -60 90 RAB
06BWDR0162 293840 6875900 36 -60 90 RAB
06BWDR0163 293800 6875900 28 -60 90 RAB
06BWDR0164 293760 6875900 20 -60 90 RAB
06BWDR0165 293720 6875900 20 -60 90 RAB
06BWDR0166 293680 6875900 20 -60 90 RAB
06BWDR0167 293640 6875900 19 -60 90 RAB
06BWDR0168 293600 6875900 20 -60 90 RAB
06BWDR0169 293400 6875500 19 -60 90 RAB
06BWDR0170 293360 6875500 19 -60 90 RAB
06BWDR0171 293320 6875500 19 -60 90 RAB
06BWDR0172 293280 6875500 19 -60 90 RAB
06BWDR0173 293240 6875500 19 -60 90 RAB
06BWDR0174 293200 6875500 19 -60 90 RAB
06BWDR0175 293160 6875500 19 -60 90 RAB
06BWDR0176 293120 6875500 13 -60 90 RAB
06BWDR0177 293126 6875500 31 -60 90 RAB

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Site ID Easting
(AMG z51)
Northing
(AMG z51)
Depth Dip Azi Type
07BWDR0001 293654 6875807 29 -60 0 RAB
07BWDR0002 293688 6875792 43 -60 0 RAB
07BWDR0003 293729 6875791 27 -60 0 RAB
07BWDR0004 293767 6875795 36 -60 0 RAB
07BWDR0005 293809 6875796 28 -60 0 RAB
07BWDR0006 293854 6875798 29 -60 0 RAB
07BWDR0007 293892 6875798 39 -60 0 RAB
07BWDR0008 293928 6875769 38 -60 0 RAB
07BWDR0009 293968 6875802 36 -60 0 RAB
07BWDR0010 294010 6875799 48 -60 0 RAB
07BWDR0011 294053 6875780 70 -60 0 RAB
14RCFF001 294076 6876134 350 -60 90 RC
LWDR2403 294640 6873900 59 -60 90 RAB
LWDR2404 294560 6873900 48 -60 90 RAB
LWDR2405 294480 6873900 53 -60 90 RAB
LWDR2406 294400 6873900 53 -60 90 RAB
LWDR2407 294080 6873900 41 -60 90 RAB
LWDR2408 294000 6873900 49 -60 90 RAB
LWDR2409 294480 6875500 26 -60 90 RAB
LWDR2410 294400 6875500 38 -60 90 RAB
LWDR2411 294320 6875500 40 -60 90 RAB
LWDR2412 294240 6875500 55 -60 90 RAB
LWDR2413 294160 6875500 50 -60 90 RAB
LWDR2414 294080 6875500 47 -60 90 RAB
LWDR2415 294000 6875500 34 -60 90 RAB
LWDR2416 293820 6876300 24 -60 90 RAB
LWDR2417 293660 6876300 20 -60 90 RAB
LWDR2418 293500 6876300 7 -60 90 RAB
LWDR2419 293340 6876300 5 -60 90 RAB
LWDR2420 293180 6876300 5 -60 90 RAB
LWDR2421 293020 6876300 2 -60 90 RAB
LWDR2422 292860 6876300 3 -60 90 RAB
LWDR2423 292700 6876300 2 -60 90 RAB
LWDR2424 292540 6876300 5 -60 90 RAB
LWDR2425 292380 6876300 5 -60 90 RAB
LWDR2700 294680 6876600 53 -60 90 RAB
LWDR2701 294640 6876600 51 -60 90 RAB
LWDR2702 294600 6876600 50 -60 90 RAB
LWDR2703 294560 6876600 35 -60 90 RAB
LWDR2704 294520 6876600 29 -60 90 RAB
LWDR2705 294480 6876600 39 -60 90 RAB
LWDR2706 294440 6876600 59 -60 90 RAB
LWDR2707 294400 6876600 47 -60 90 RAB
LWDR2708 294360 6876600 56 -60 90 RAB
LWDR2709 294320 6876600 58 -60 90 RAB
LWDR2710 294280 6876600 37 -60 90 RAB
LWDR2711 294240 6876600 30 -60 90 RAB
LWDR2712 294200 6876600 49 -60 90 RAB
LWDR2713 294160 6876600 25 -60 90 RAB
LWDR2714 294120 6876600 60 -60 90 RAB
LWDR2715 294080 6876600 40 -60 90 RAB

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Site ID Easting
(AMG z51)
Northing
(AMG z51)
Depth Dip Azi Type
LWDR2716 294040 6876600 60 -60 90 RAB
LWDR2717 294000 6876600 59 -60 90 RAB
LWDR2718 293960 6876600 54 -60 90 RAB
LWDR2719 293920 6876600 60 -60 90 RAB
LWDR2720 293880 6876600 56 -60 90 RAB
LWDR2721 293840 6876600 58 -60 90 RAB
LWDR2722 293800 6876600 54 -60 90 RAB
LWDR2723 293760 6876600 63 -60 90 RAB
LWDR2724 293720 6876600 56 -60 90 RAB
LWDR2725 293680 6876600 59 -60 90 RAB
LWDR2726 293640 6876600 58 -60 90 RAB
LWDR2727 293600 6876600 53 -60 90 RAB
LWDR2728 293560 6876600 50 -60 90 RAB
LWDR2729 293520 6876600 54 -60 90 RAB
LWDR2730 293480 6876600 43 -60 90 RAB
LWDR2731 293440 6876600 40 -60 90 RAB
LWDR2732 293400 6876600 30 -60 90 RAB
LWDR2733 293360 6876600 20 -60 90 RAB
LWDR2734 293280 6876600 20 -60 90 RAB
LWDR2735 293200 6876600 20 -60 90 RAB

Note: Further information relating to these holes are provided in Appendix 2.

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APPENDIX TWO - The following Tables are provided to ensure compliance with the JORC Code (2012) edition requirements for the reporting of the Exploration Results at the Leinster Project.

Section 1: Sampling Techniques and Data (Criteria in this section apply to all succeeding sections)

Criteria JORC Code explanation Commentary
Sampling techniques Nature and quality of sampling (eg cut channels,
random chips, or specific specialised industry standard
measurement tools appropriate to the minerals under
investigation, such as down hole gamma sondes, or
handheld XRF instruments, etc). These examples
should not be taken as limiting the broad meaning of
sampling. Include reference to measures taken to
ensure sample representivity and the appropriate
calibration of any measurement tools or systems used.
RC and RAB drilling sampled on a 4m or 1m basis.
Sampling believed to be carried out using industry
standard techniques to ensure representivity.
Aspects of the determination of mineralisation that are
Material to the Public Report. In cases where ‘industry
standard’ work has been done this would be relatively
simple (eg ‘reverse circulation drilling was used to
obtain 1 m samples from which 3 kg was pulverised to
produce a 30 g charge for fire assay’). In other cases
more explanation may be required, such as where
there is coarse gold that has inherent sampling
problems. Unusual commodities or mineralisation
types (eg submarine nodules) may warrant disclosure
of detailed information.
All aspects of the determination of mineralisation are
described in this table.
RAB and RC drilling using these methods are
considered appropriate first pass tests of a prospective
area but have not tested the specific targets generated
in Aldoro’s exploration.
Drilling techniques Drill type (e.g. core, reverse circulation, open-hole
hammer, rotary air blast, auger, Bangka, sonic etc) and
details (e.g. core diameter, triple of standard tube,
depth of diamond tails, face-sampling bit or other type,
whether core is orientated and if so, by what method,
etc).
Reverse circulation and rotary air blast drilling.
Drill sample recovery Method of recording and assessing core and chip
sample recoveries and results assessed.
No specific record of sample recoveries but no issues
with recoveries are noted/
Measures taken to maximise sample recovery and
ensure representative nature of the samples.
Industry standard techniques to maximise recovery are
understood to have been used.
Whether a relationship exists between sample
recovery and grade and whether sample bias may
have occurred due to preferential loss/gain of
fine/coarse material.
No relationship noted but limited data at this stage of
exploration.
Logging Whether core and chip samples have been
geologically and geotechnically logged to a level of
detail to support appropriate Mineral Resource
estimation, mining studies and metallurgical studies.
All drilling has been logged on both a qualitative
(minerals present) and quantitative (percentage veins
and sulphides).
Whether logging is qualitative or quantitative in nature.
Core (or costean, channel, etc) photography.
The total length and percentage of the relevant
intersections logged.
If core, whether cut or sawn and whether quarter, half
or all core taken.
Sub-sampling
techniques and
sample preparation
If non-core, whether riffled, tube sampled, rotary split,
etc and whether sampled wet or dry.
Drill samples understood to be riffle split (1m) or spear
sampled (composite samples, 4m)
For all sample types, the nature, quality and
appropriateness of the sample preparation technique.
Standard lab preparation and sub sampling techniques
used.
Quality control procedures adopted for all sub-
sampling stages to maximise representivity of samples.
Industry standard QA/QC procedures known to have
been used by the companies involved.

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Criteria JORC Code explanation Commentary
Measures taken to ensure that the sampling is
representative of the in situ material collected,
including for instance results for field duplicate/second-
half sampling.
Appropriate measures understood to have been used.
Whether sample sizes are appropriate to the grain size
of the material being sampled.
Yes
Quality of assay data
and laboratory tests
The nature, quality and appropriateness of the
assaying and laboratory procedures used and whether
the technique is considered partial or total.
RAB and RC samples drilled by LionOre (LWDR
series) and Breakaway (07 series) analysed by
Genalysis (a quality certified laboratory) by multi acid
digest and ICP-OAES (code ATOES)
RC samples drilled by Minotaur (14 series) analysed by
ALS (a quality certified laboratory) using nitric aqua
regia digestion and ICP-AES analysis (code ME-
ICP41).
This assay method is considered appropriate for the
metals beinginvestigated.
For geophysical tools, spectrometers, handheld XRF
instruments, etc, the parameters used in determining
the analysis including instrument make and model,
reading times, calibrations factors applied and their
derivation, etc.
No hand held assay devices or geophysics tools used
so not applicable
Nature of quality control procedures adopted (eg
standards, blanks, duplicates, external laboratory
checks) and whether acceptable levels of accuracy (ie
lack of bias) and precision have been established.
Industry standard QA/QC procedures known to have
been used by the companies involved but are not
documented in WAMEX reports.
Verification of
sampling and
assaying
The verification of significant intersections by either
independent or alternative company personnel.
No significant intersections presented
The use of twinned holes. No twinned holes due to early stage of exploration
Documentation of primary data, data entry procedures,
data verification, data storage (physical and electronic)
protocols.
Data is historical data, not from exploration by Aldoro,
and has been sourced and compiled from statutory
reports to WA DMIRS.
Discuss any adjustment to assay data. None.
Location of data
points
Accuracy and quality of surveys used to locate drill
holes (collar and down-hole surveys), trenches, mine
workings and other locations used in Mineral Resource
estimation.
Drill holes reported to have been located using
handheld GPS with an accuracy of +/- 5 metres.
Specification of the grid system used. The grid system for the drillholes is AMG 84, Zone 51.
Quality and adequacy of topographic control. Topographic data was obtained from public download
of the relevant 1:250,000 scale map sheets.
Data spacing and
distribution
Data spacing for reporting of Exploration Results. Drilling not done on consistent spacing.
Whether the data spacing and distribution is sufficient
to establish the degree of geological and grade
continuity appropriate for the Mineral Resource and
Ore Reserve estimation procedure(s) and
classifications applied.
Not applicable
Whether sample compositing has been applied. No sample compositing
Orientation of data in
relation to geological
structure
Whether the orientation of sampling achieves unbiased
sampling of possible structures and the extent to which
this is known, considering the deposit type.
Drilling carried out on lines oriented perpendicular to
regional stratigraphy
If the relationship between the drilling orientation and
the orientation of key mineralised structures is
considered to have introduced a sampling bias, this
should be assessed and reported if material.
Not known at this time.

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Criteria JORC Code explanation Commentary
Sample security The measures taken to ensure sample security. No specific measures are documented
Audits or reviews The results of any audits or reviews of sampling
techniques and data.
No audits or reviews have been carried out at this
stage

Section 2: Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section)

Criteria JORC Code explanation Commentary
Mineral tenement and
land tenure status
Type, reference name/number, location and ownership
including agreements or material issues with third
parties such as joint ventures, partnerships, overriding
royalties, native title interests, historical sites,
wilderness or national park and environmental settings.
The Leinster Project comprises two granted
Exploration Licences (namely E36/0895 - “North
Sinclair” and E36/0910 – “Camel Bore”) and two
pending Exploration Licences (namely E36/0930
and E36/0929). The licences cover a land area of
205km2. Aldoro is the registered applicant for
E36/0930 and E36/0929. Aldoro has entered into a
term sheet with the current holder, Jindalee
Resources Limited, to acquire an 80% interest in the
non-gold rights at the North Sinclair (E36/0895) and
Camel Bore (E36/0910) tenements.
The tenement lies on the Weebo (PL N049440) and
the Pinnacles (PL N049812) Pastoral Leases. The
Project is within land where a Native Title claim
application for determination has been made. The
Darlot claim group have made the WC2018/005
Native Title Claim. The Native Title claim application
currently remains active. There are two registered
Aboriginal Heritage Sites within E36/0910. Refer to
the Solicitors Report within the Prospectus for
additional details.
The security of the tenure held at the time of reporting
along with any known impediments to obtaining a
licence to operate in the area.
The tenements are in good standing.
Exploration done by
other parties
Acknowledgment and appraisal of exploration by other
parties.
Semi-continuous exploration for both nickel and
gold has been undertaken in the district since the
1960s. Since 2000, following the discovery of the
Thunderbox deposit, gold and nickel exploration
increased in the region.
Exploration completed includes geological mapping,
geochemical sampling (rock, stream and soil),
ground and aerial geophysical surveys, costeaning
and percussion drilling.
Drilling referred to in this announcement was carried
out by LionOre Australia, Breakaway Resources
and Minotaur Exploration.
Geology Deposit type, geological setting and style of
mineralisation.
The Leinster Project lies within the northern sector
of the Norseman-Wiluna Greenstone Belt, with the
central portion of the Project straddling the Weebo –
Mt Clifford greenstone belt and the eastern portion
of the Project lying along the eastern limb of the
Lawlers Anticline.
Drill hole Information A summary of all information material to the
understanding of the exploration results including a
tabulation of the following information for all Material
drill holes:
All information is supplied in Appendix 1.

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Criteria JORC Code explanation Commentary

easting and northing of the drill hole collar

elevation or RL (Reduced Level – elevation above
sea level in metres) of the drill hole collar

dip and azimuth of the hole

down hole length and interception depth

hole length.
If the exclusion of this information is justified on the
basis that the information is not Material and this
exclusion does not detract from the understanding of
the report, the Competent Person should clearly
explain why this is the case.
Not applicable.
Data aggregation
methods
In reporting Exploration Results, weighting averaging
techniques, maximum and/or minimum grade
truncations (eg cutting of high grades) and cut-off
grades are usually Material and should be stated.
All drilling is shown on Figure 1 and tabulated in
Appendix 1.
Where aggregate intercepts incorporate short lengths
of high grade results and longer lengths of low grade
results, the procedure used for such aggregation
should be stated and some typical examples of such
aggregations should be shown in detail.
No data aggregation used.
The assumptions used for any reporting of metal
equivalent values should be clearly stated.
No metal equivalent values used.
Relationship between
mineralisation widths
and intercept lengths
These relationships are particularly important in the
reporting of Exploration Results. If the geometry of the
mineralisation with respect to the drill hole angle is
known, its nature should be reported. If it is not known
and only the down hole lengths are reported, there
should be a clear statement to this effect
(eg ‘down hole length, true width not known’).
No information at this time
Diagrams Appropriate maps and sections (with scales) and
tabulations of intercepts should be included for any
significant discovery being reported These should
include, but not be limited to a plan view of drill hole
collar locations and appropriate sectional views.
Refer to Figures in body of text.
Balanced reporting Where comprehensive reporting of all Exploration
Results is not practicable, representative reporting of
both low and high grades and/or widths should be
practiced to avoid misleading reporting of Exploration
Results.
All results have been reported.
Other substantive
exploration data
Other exploration data, if meaningful and material,
should be reported including (but not limited to):
geological observations; geophysical survey results;
geochemical survey results; bulk samples – size and
method of treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock
characteristics; potential deleterious or contaminating
substances.
All relevant exploration data is shown on figures or
included in previous ASX Announcements.
Further work The nature and scale of planned further work (eg tests
for lateral extensions or depth extensions or large-scale
step-out drilling).
Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided this
information is not commercially sensitive.
As discussed in the text – drilling is planned to test
the targets identified by Aldoro’s EM survey.

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