AUREKA LIMITED — Capital/Financing Update 2021

Jul 7, 2021

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ASX Announcement
8 July 2021
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MAJOR GEOPHYSICS PROGRAM COMMENCES AT MORNING BILL PROSPECT AS A PRELUDE TO AGGRESSIVE DRILLING EFFORT

PROGRAM WILL ASSESS THE POTENTIAL OF A BROADER GOLD – BASE METALS SYSTEM AT THE EXCITING VICTORIAN PROJECT

• A geophysical survey has commenced and will test the broader porphyry and epithermal potential of the Morning Bill prospect.

• The program is expected to provide a high-quality 3D model from which Navarre will plan an aggressive drilling program scheduled to begin by the end of 2021.

• The work is supported by the Company’s oversubscribed capital raising that was increased to $14.9 million.

Navarre Minerals Limited (Navarre or the Company) (ASX: NML) reports a major geophysical survey has commenced at the Company’s Morning Bill prospect, part of its Glenlyle tenement in western Victoria (Figure 1).

The induced polarisation (IP) survey follows the Company’s first diamond core drilling program where results have been reported for the first three of eight completed holes with the remaining five to follow in the coming weeks.

The Company has engaged Khumsup Geophysics to conduct the survey at Morning Bill which will help to understand the ‘bigger picture’ of the Morning Bill system. The survey is being undertaken to detect near-surface targets on and adjacent to our Morning Bill discovery area. It will also help to unravel the concealed basement geology of a potentially much larger epithermal and associated porphyry system.

The mineralisation occurs beneath a veneer of younger, unmineralised cover known as the Newer Volcanics, ranging in thickness from approximately five to 30 metres (Figure 3).

Situated 25 kilometres south-west of Ararat, the Glenlyle tenement is hosted within the Dryden-Stavely Volcanic Belt. This belt of rocks also hosts Stavely Minerals’ Cayley Lode copper discovery at its nearby Thursdays Gossan deposit.

The Company’s extensive work program is supported by the recent Placement and Share Purchase Plan (SPP), which raised $10 million and $4.9 million respectively. Owing to keen demand, the SPP was increased from the targeted $2 million.

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Navarre’s Managing Director, Ian Holland, said:

“We are fast tracking exploration of the exciting Morning Bill gold – silver and base metals system we discovered back in 2018. We believe Morning Bill is part of a much larger porphyry system and, on the back of our recent capital raising, we plan to aggressively explore its full potential.

“Targets of these size have the potential to transform Navarre.

“The IP survey is expected to provide a high quality 3D model, which will then be used to plan and optimise our drill testing of the exciting Morning Bill prospect."

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Figure 1: Location of Navarre’s western Victorian gold projects.

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GLENLYLE RESULTS TO DATE

Copper porphyry exploration commenced on the Glenlyle tenement (EL5497) in 2018 and resulted in the discovery of high-grade silver, gold and base metals mineralisation at Morning Bill.

Work undertaken since this time has focussed on expanding the concealed near-surface mineralisation extent to approximately 1.1 kilometres by 0.4 kilometres (sericite-pyrite zone) which remains open along strike and at depth and is now referred to as the Morning Bill prospect.

This work included several phases of air-core (AC) drilling and a recently completed diamond core drilling program (results pending for 5 of 8 holes completed – see ASX announcement of 10 June 2021). This drilling intersected discrete gold - silver (plus zinc, lead and copper) mineralisation within a broad envelope of anomalous silver (assaying between 0.5 and 30 g/t silver).

Significant broad results include (refer ASX announcements on 23 April 2018, 21 March 2019, 14 April 2020, 4 February 2021, 4 March 2021, 18 March 2021, 2 June 2021 & 10 June 2021):

• 76m @ 0.4 g/t gold from 14m to end of hole, including 1m @ 3.9 g/t gold (GAC189)

• 308m @ 3.0 g/t silver from 72.6m, including 1.9m @ 130 g/t silver (GDD001)

• 6.7m @ 1.8 g/t gold, 2.4 g/t silver, 1.5% zinc, 0.4% lead and 0.1% copper from 208.6m in GDD003, including:

• 0.4m at 10.1 g/t gold, 11.4 g/t silver, 9.1% zinc, 4.8% lead and 0.2% copper; and

• 0.4m at 8.0 g/t gold, 2.7 g/t silver, 4.9% zinc and 0.2% copper

• 46m @ 8.1 g/t silver from 53m to end of hole, incl. 1m @ 252 g/t silver & 3.1 g/t gold (GAC030)

• 31m @ 6.1 g/t silver from 54m to end of hole, incl. 1m @ 155 g/t silver & 4.0 g/t gold (GAC042)

• 48m @ 2.9 g/t silver from 51m to end of hole (GAC046)

• 23m @ 30.3 g/t silver from 76m to end of hole, incl. 2m @ 245 g/t silver & 0.5 g/t gold (GAC054)

• 47m @ 11.8 g/t silver from 58m to end of hole, incl. 1m @ 390 g/t silver & 1.0 g/t gold (GAC055)

• 51m @ 7.3 g/t silver from 45m to end of hole, incl. 1m @ 248 g/t silver & 0.5 g/t gold (GAC057)

• 60m @ 2.0 g/t silver from 36m to end of hole (GAC058)

• 5m @ 1.0 g/t gold from 58m, incl. 1m @ 3.6 g/t gold (GAC077)

• 2m @ 1.7 g/t gold from 30m (GAC064)

• 46m @ 2.2 g/t silver from 54m to end of hole, incl. 1m @ 0.5 g/t gold & 0.5% zinc (GAC085)

• 3m @ 9.0 g/t silver & 0.1% Cu from 57m (GAC079)

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• 3m @ 1.6 g/t gold from 80m, from within 7m @ 1.0 g/t gold to end of hole (GAC101)

• 25m @ 0.2% zinc from 59m to end of hole (GAC101)

• 75m @ 12.6 g/t silver from 21m to end of hole, incl. 1m @ 301 g/t silver and 1m @ 207 g/t silver (GAC126)

• 84m @ 1.9 g/t silver from 36m to end of hole, incl. 1m @ 36.7 g/t silver (GAC127)

• 73m @ 1.4 g/t silver from 41m to end of hole, incl. 1m @ 17.3 g/t silver (GAC128)

• 78m @ 1.1 g/t silver from 41m to end of hole, incl. 7m @ 4.4 g/t silver (GAC124)

• 38m @ 7.8 g/t silver from 73m to end of hole, incl. 1m @ 41.5 g/t silver (GAC187)

• 40m @ 4.6 g/t silver from 50m to end of hole, incl. 1m @ 71.8 g/t silver (GAC129)

• 58m @ 1.6 g/t silver from 21m to end of hole, incl. 1m @ 17.5 g/t silver (GAC155)

• 56m @ 1.2 g/t silver from 46m to end of hole (GAC185)

• 43m @ 1.3 g/t silver from 56m to end of hole, incl. 1m @ 16.7 g/t silver (GAC130)

• 65m @ 0.3 g/t gold from 16m to end of hole, incl. 1m @ 3.1 g/t gold (GAC156)

• 30m @ 0.2 g/t gold from 77m (GAC187)

Navarre believes this mineralisation is part of a much larger mineralised system based on assessment of drilling results received to date in combination with previous geophysical programs.

ABOUT THE MORNING BILL SURVEY

The Company has engaged consultant Khumsup Geophysics to conduct a Gradient Array Induced Polarisation (GAIP) survey and a Pole-Dipole Induced Polarisation / Resistivity (IP) survey at Glenlyle to provide detailed 2D and 3D mapping of the resistivity and induced polarisation parameters over a 3kmlong porphyry-style target area immediately west and surrounding the Morning Bill prospect (Figure 2). The 98 line kilometre survey is expected to generate reasonable mapping of IP to depths of up to approximately 600 metres below surface.

The orientation of the mineralisation and the controlling structures at the Morning Bill prospect are poorly understood at this stage of early exploration and the IP survey is expected to provide a better understanding of the geometry of the mineralised system. The Company is developing models for the style and geometry of the mineralisation which is expected to assist with targeting of higher-grade areas. The Company interprets the mineralised broad alteration zones seen its recent diamond drill holes to represent potential epithermal-style mineralisation situated above a deeper porphyry target.

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Figure 2: Map of project area showing Morning Bill prospect and area of planned IP surveys on background gravity image

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Figure 3: Morning Bill prospect longitudinal projection showing silver zones relative to magnetic isosurfaces.

BACKGROUND – GLENLYLE TENEMENT (EL 5497)

Navarre’s 2018 maiden drilling program at Glenlyle intersected a thick pile of andesitic volcanics below a 5 – 30 metre thick veneer of Newer Volcanics basalt cover. At the top of the basement rocks, a 15 – 20 metre thick metal depletion zone typically occurs. Below the depletion zone several areas of strong sericite-pyrite alteration have been intersected. This alteration correlates with a coincident gravity and magnetic low, interpreted to represent either a buried porphyry intrusive (potential source of mineralised fluids) or a broad alteration zone related to epithermal-style mineralisation.

Historical exploration completed by previous explorers at Glenlyle focused on the area of a 5 – 6 kilometre diameter circular magnetic feature, which stands out as unusual compared to the more linear magnetic trend of the Dryden – Stavely Volcanic Belt (see ASX release 18 Mar – Figure 2).

Drilling indicates that the complex circular magnetic feature is mainly composed of andesitic rocks containing varying degrees of alteration intensity. The andesitic volcanic rocks are concealed beneath the Newer Volcanics cover which post-dates mineralisation and has made surface sampling and exploration difficult in the past and could conceal significant zones of near surface mineralisation that remain to be detected.

Previous work indicates a high level of preservation of the original Stavely Arc sequence with probable sub-volcanic intrusions, which is a positive indicator for the prospectivity for porphyry and epithermal style mineralisation. The extent of precious and base metals as well as the alteration logged in drill holes is encouraging for the presence of significant mineralisation.

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This announcement has been approved for release by the Board of Directors of Navarre Minerals Limited.

– ENDS –

For further information, please visit www.navarre.com.au or contact:

Ian Holland Managing Director Navarre Minerals

E: info@navarre.com.au T: +61 (0)3 5358 8625

COMPETENT PERSON DECLARATION

The information in this release that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Shane Mele, who is a Member of The Australasian Institute of Mining and Metallurgy and who is Exploration Manager of Navarre Minerals Limited. Mr Mele has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Mele consents to the inclusion in the release of the matters based on his information in the form and context in which it appears.

FORWARD-LOOKING STATEMENTS

This announcement contains “forward-looking statements” within the meaning of securities laws of applicable jurisdictions. Forward-looking statements can generally be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe”, “continue”, “objectives”, “outlook”, “guidance” or other similar words, and include statements regarding certain plans, strategies and objectives of management and expected financial performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are outside the control of Navarre and any of its officers, employees, agents or associates. Actual results, performance or achievements may vary materially from any projections and forward-looking statements and the assumptions on which those statements are based. Exploration potential is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. Readers are cautioned not to place undue reliance on forward-looking statements and Navarre assumes no obligation to update such information.

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ABOUT NAVARRE MINERALS LIMITED:

Navarre Minerals Limited (ASX: NML) is an advanced gold exploration company focused on discovering and developing large, long-life and high-grade gold deposits in underexplored areas of Victoria’s premier gold districts.

Navarre is searching for gold deposits in an extension of a corridor of rocks that host the Stawell (~six million ounce) and Ararat (~one million ounce) goldfields (the Stawell Corridor Gold Project). Within this Project, the Company’s focus is growing the recently reported maiden Mineral Resource on the margins of the Irvine basalt dome (Resolution and Adventure prospects) and advancing the high-grade gold discovery at Langi Logan. These projects are situated 20 and 40 kilometres respectively south of the operating, five million ounce Stawell Gold Mine.

The Company is searching for high-grade gold at its St Arnaud Gold Project . Recent drilling has identified gold mineralisation under shallow cover, up to 5 kilometres north from the nearest historical mine workings, which the Company believes may be an extension of the 400,000 ounce St Arnaud Goldfield.

The high-grade Tandarra Gold Project is 50km northwest of Kirkland Lake Gold’s world-class Fosterville Gold Mine, and 40 kilometres north of the 22 million ounce Bendigo Goldfield. Exploration at Tandarra, in Joint Venture with Catalyst Metals Limited (Navarre 49%), is targeting the next generation of gold deposits under shallow cover in the region.

At the Jubilee Gold Project, 25km southwest of LionGold’s Ballarat Gold Mine, the Company is undertaking a systematic exploration program targeting extensions and repetitions of historically mined transverse quartz reefs that have a similar structural setting to the high-grade Swan-Eagle system at Fosterville.

The Company is also targeting volcanic massive sulphide, epithermal and porphyry copper-gold deposits in the Stavely Arc volcanics. The project area captures multiple polymetallic targets in two project areas including Glenlyle and Stavely. These properties are currently 100% owned apart from Stavely (EL 5425). This tenement is subject to a farm-in agreement by which Stavely Minerals Limited may earn an 80% interest by spending $450,000 over five years.

See more at www.navarre.com.au

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