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DATELINE RESOURCES LIMITED Interim / Quarterly Report 2021

Oct 28, 2021

64793_rns_2021-10-28_209b3682-3e9f-46f6-b822-dde493d86d83.pdf

Interim / Quarterly Report

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ASX Release

DATELINE RESOURCES LIMITED

(ACN 149 105 653) ASX Code: DTR

CAPITAL STRUCTURE

Share Price (28/10/21) $0.09

$39.4 million

MAJOR SHAREHOLDERS

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SEPTEMBER 2021 QUARTERLY ACTIVITIES REPORT

Dateline Resources Limited (ASX: DTR) ( Dateline or the Company ) is pleased to provide an update on its activities for the September 2021 quarter. The Company’s focus during the period was commencing underground development and drilling at the Gold Links Project in Colorado and progressing the acquisition of the Colosseum Gold Mine (Colosseum) in California.

HIGHLIGHTS

Gold Links Gold Mine

  • Underground development program commenced during the quarter, with 430m out of 1000m total program completed.

  • Underground diamond drilling also commenced, with 18 holes completed during the quarter and received assay results from 7 completed holes.

  • Highlights from the results received are:

  • 2.2m @ 9.7g/t Au & 73.5g/t Ag from 17m in CRG21-004

DIRECTORS & MANAGEMENT

Mark Johnson AO Chairman

Stephen Baghdadi Managing Director

Greg Hall Non-Executive Director

Tony Ferguson Non-Executive Director

Bill Lannen Non-Executive Director

John Smith Company Secretary

  • 0.5m @ 17.95g/t Au & 49.6g/t Ag from 21m in CRG2-006

  • Both holes are approximately 50 metres up-dip from previously drilled zones of mineralisation

Colosseum Gold Mine

  • During the quarter, the Company announced that a review of USGS data had highlighted radiometric anomalies that offer potential for REE mineralisation at Colosseum.

  • Digital data compilation is ongoing with 386 drillholes and 35,352 assays loaded into the database.

  • Post-quarter end, the conditions precedent for settling of the acquisition with Barrick were met, with settlement now completed.

Corporate

CONTACT

John Smith Phone: +61 2 9375 2353 Postal Address: P.O. Box 553 South Hurstville NSW 2221 Email: [email protected]

  • Equity placement of $4.1 million at $0.09 per share completed during the quarter.

  • At the end of the quarter, the Company’s cash balance was $7.0 million.

ASX Release 29 October 2021

Gold Links Gold Mine, Colorado

Gold Links hosts a swarm of high-grade narrow gold veins over more than 5km strike length and a kilometre across strike. Historical mapping and drilling coupled with the Company’s own exploration work has confirmed mineralisation is extensive throughout the Project. Dateline’s 100% owned Lucky Strike Mill will be used to process material from the Gold Links Mine.

Commencement of underground development[1]

During the quarter, the Company commenced development of ~1km of underground decline with 4.0m x 4.3m dimensions. The decline will act as a haulage and exploration tunnel, from which the 2150 and West gold veins are being drill tested.

The decline links up with an existing drive at a lower elevation, which provides a second escapeway for underground personnel and enhanced mine ventilation.

During the quarter, 430 metres of development was completed as represented by the blue line in figure 1 below. The total decline work is expected to be completed in the fourth quarter of the 2021 calendar year.

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Figure 1 – Schematic view of decline development at Gold Links Project. Scale is in feet

1 ASX announcement 1 July 2021 – Development starts at Gold Links

ASX Release 29 October 2021

Underground Diamond Drilling[2]

The underground diamond drill crew mobilised to site and commenced drilling in July 2021. The drilling company will undertake 4,000 metres (~12,000 feet) of underground drilling from within the decline. Initially, drilling rates were lower than expected, however a change to rostering and drill plan has increased productivity. Drilling is expected to be completed by the end of December.

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Figure 2 – Long section view of ore zones annotated - Gold Links Project scale is in feet

Drillhole Results

As at the end of the quarter, the company had completed 18 drill holes. Results for seven holes have been received and are described in the attached table to this report.

Drilling intersected mineralisation in drill site 1 (top red shape). Underground development has progressed to the area shown by the lower blue and yellow shapes that represent historically drilled lower areas. This lower area was drilled in the 1970’s and 1980’s and Dateline has obtained copies of the assay certificates. The current drill program will prioritise drilling for extensions of the historically drilled areas and will also drill the gap between the blue and red zones to test if they are part of a single larger zone, as depicted by the pink shape in Figure 3.

2 ASX announcement 20 July 2021 – Drilling commenced at Gold Links

ASX Release 29 October 2021

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Figure 3 – Schematic showing potential linking of mineralised zones and mineralised zone to the west of the 2150 vein. Scale is in feet

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Figure 6 – Gold Links Project underground development

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Figure 7 – Gold Links Project underground development

ASX Release 29 October 2021

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Figure 8 – Gold Links Project development face

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Figure 9 – Gold Links Project waste disposal

Colosseum Gold Mine, California

In March 2021, Dateline entered into a binding Agreement with LAC Minerals (USA) LLC, a wholly owned subsidiary of Barrick Gold Corporation, for the acquisition of 100% of Colosseum and will acquire 83 mining claims that host the Colosseum Gold Mine and surrounding areas, totalling approximately 1,600 acres[3] .

The Colosseum Gold Mine is in the southern section of the Walker Lane Trend in California, USA. The Walker Lane Trend hosts numerous substantial discoveries including the Corvus Gold owned 1.7Moz Mother Lode deposit and the 6.5Moz Castle Mountain gold mine owned by Equinox Gold (located 50km to the Southeast of Colosseum).

The primary activities for the September quarter were digitising information, reviewing the rare earth potential, management meetings with local stakeholders, planning of field work and progressing the conditions precedent to finalise the acquisition.

Dateline is currently digitising the significant volume of plans and sections in order to build a comprehensive database of the Project. A total of 5,045 documents (not pages) and 2,132 maps have been digitised. A database of 386 drillholes and 35,352 assays has been loaded to date.

Post quarter end, the conditions precedent for the acquisition were completed and the acquisition was closed.

[3] ASX release – 15 March 2021 - Colosseum Gold Mine Acquisition

ASX Release 29 October 2021

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Figure 10: Colosseum location relative to other operating mines and significant discoveries

Rare Earth Potential

During the quarter, the Company announced that a review of USGS data had highlighted a coincident thorium and potassium radiometric anomaly 8km along strike from the Mountain Pass Rare Earth mine, the only operating rare earth mine in the US.

The Mountain Pass carbonatite is a thin linear body that trends NNW, along strike from Colosseum.

CORPORATE

Colosseum transaction update

During the quarter, the Company progressed the establishment of US banking facilities to allow the completion of the acquisition, which was completed in October.

Equity Placement

During the quarter, the Company raised $4.1 million at $0.09 per share from sophisticated and professional investors.

Cash at bank

At the end of the quarter, the Company had cash and investments of A$7.0 million.

ASX Release 29 October 2021

DECEMBER QUARTER – PLANNED ACTIVITIES

During the December quarter, the Company intends to undertake the following activities:

Gold Links Gold Mine

  • Completion of underground mine development

  • Completion of underground diamond drilling programme

  • Initial start-up and commissioning activities at Lucky Strike Mill

Colosseum Gold Mine

  • Continued digitising of historical information and planning of field work

Authorised by the Dateline Board.

For more information, please contact:

Stephen Baghdadi Managing Director +61 2 9375 2353

www.datelineresources.com.au

Follow Dateline on Twitter: https://twitter.com/Dateline_DTR

ASX Release 29 October 2021

About Dateline Resources Limited

Dateline Resources Limited (ASX: DTR) is an Australian publicly listed company focused on gold mining and exploration in North America. The Company owns 100% of the Gold Links and Green Mountain Projects in Colorado, USA as well as plans to acquire the Colosseum Gold Mine in California.

The Gold Links Gold Mine is a historic high-grade gold mining project where over 150,000 ounces of gold was mined from high-grade veins. Mineralisation can be traced on surface and underground for almost 6km from the Northern to the Southern sections of the project. The Company aims to delineate sufficient Mineral Resources to commence a small high-grade, low-cost operation by the end of 2021.

The Company owns the Lucky Strike gold mill, located 50km from the Gold Links mine, within the Green Mountain Project. It is proposed that ore from Gold Links would be transported to Lucky Strike for processing.

The Colosseum Gold Mine is located in the Walker Lane Trend in East San Bernardino County, California and produced approximately 344,000 ounces of gold (see ASX release 15 March 2021). Significant potential remains for extension to mineralization at depth.

Competent Person Statement

Sample preparation and any exploration information in this announcement is based upon work reviewed by Mr Greg Hall who is a Chartered Professional of the Australasian Institute of Mining and Metallurgy (CPIMM). Mr Hall has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to quality as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr Hall is a Non-Executive Director of Dateline Resources Limited and consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

ASX Release 29 October 2021

Completed Drill Hole co-ordinates

Hole ID Easting Northing Elevation Total Depth (m) Status
CRG21-001 2694042 1291581 9845 21 Completed
CRG21-002 2694042 1291581 9845 27.6 Completed
CRG21-003 2694042 1291581 9845 37.1 Completed
CRG21-004 2694042 1291581 9845 45.6 Completed
CRG21-005 2694042 1291581 9845 57.1 Completed
CRG21-006 2694042 1291581 9845 58.4 Completed
CRG21-007 2694042 1291581 9845 28.9 Completed
CRG21-008 2694042 1291581 9845 32.2 Pending
CRG21-009 2693929 1291307 9807 37.1 Pending
CRG21-010 2693929 1291307 9807 18 Pending
CRG21-013 2693929 1291307 9807 96.5 Pending
CRG21-014 2693929 1291307 9807 63.6 Pending
CRG21-014a 2693929 1291307 9807 41.7 Pending
CRG21-015 2693929 1291307 9807 48.6 Pending
CRG21-016 2693929 1291307 9807 58.7 Pending
CRG21-017 2693929 1291307 9807 49.9 Pending

Summary of significant intercepts

Sample_ID Hole_ID Drill Type From (m) To (m) Length (m) Au ppm Ag
ppm
E255055-
E255056
CRG21-004 Core 17.2 19.4 2.2 9.63 73.54
326229 CRG21-006 Core 21.8 22.3 0.5 17.95 49.6

ASX Release 29 October 2021

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria JORC Code explanation Commentary
Sampling
Nature and quality of sampling (eg cut

As of 9/30/2021, the Gold Links Project CRG Mining,
techniques channels, random chips, or specific specialised LLC has completed 722 metres of drilling in 18 drill holes.
industry standard measurement tools appropriate All the drilling was done underground with diamond drill
to the minerals under investigation, such as down core. Industry standard core handling and sampling
hole gamma sondes, or handheld XRF procedures were employed to ensure high quality
instruments, etc). These examples should not be samples.
taken as limiting the broad meaning of sampling.
Core sample boundaries were defined by changes

Include reference to measures taken to
in lithology, alteration, and mineralization noted in
ensure sample representivity and the appropriate logging.
calibration of any measurement tools or systems
Potentially mineralized intervals were identified by
used. geological logging and dispatched for assay with

Aspects of the determination of
minimum 0.3 metre shoulder samples.
mineralisation that are Material to the Public
Logging geologist identified zones of interest for
Report. sampling and sampled them. They also sampled a length

In cases where ‘industry standard’ work has
equivalent to approximately 20% of the zone of interest
been done this would be relatively simple (eg on each side of it. These are referred to as shoulder
‘reverse circulation drilling was used to obtain 1 samples.
m samples from which 3 kg was pulverised to
Core remaining after sampling was stored in wax
produce a 30 g charge for fire assay’). In other coated cardboard core trays.
cases more explanation may be required, such as
Samples from drill holes were sent to ALSGlobal and
where there is coarse gold that has inherent Paragon Geochemical in Reno, Nevada for sample
sampling problems. Unusual commodities or preparation and assay. Samples were dried, weighed,
mineralisation types (eg submarine nodules) may crushed and split to obtain 250 gm. Samples were placed
warrant disclosure of detailed information. in ring and puck grinder to produce 85% minus 75
micron pulp. This material was blended on clean cloth
and packaged in paper pulp bags. Using a pulp balance, a
30 gm sample was weighted out for traditional fire assay.
Samples were analyzed using standard fire assay for
gold. Overlimits were analyzed via gravimetric analysis.

All samples followed a strict Chain of Custody.

Routine QAQC samples were inserted in the sample
runs at a rate of 20%, comprising Certified Reference
Materials from CDN Resource Laboratories Ltd., and
verified blank granitic material.

Sampling practice is appropriate to the geology and
mineralization of the deposit and complies with industry
best practice.
Drilling
Drill type (eg core, reverse circulation, open-

The drilling program utilizes underground core
techniques hole hammer, rotary air blast, auger, Bangka, drilling.
sonic, etc) and details (eg core diameter, triple or
The core drilling is being conducted with a DE-130
standard tube, depth of diamond tails, face- Sandvik rig with HQTT core tooling. Standard tubes were
sampling bit or other type, whether core is used for the first 6 drillholes, the balance utilized triple
oriented and if so, by what method, etc). tube to increase recoveries. The drilling has been
completed by an experienced diamond drilling core
driller.

ASX Release 29 October 2021

Criteria JORC Code explanation Commentary
Drill sample Method of recording and assessing core and
All drilling recoveries have been logged and
recovery chip sample recoveries and results assessed. notated each run based on 1.65-meter tooling.
Measures taken to maximise
To maximize sample recoveries, use of triple
sample recovery and ensure tube and long chain polymer muds were used to
representative nature of the samples. increase recovery.
Whether a relationship exists between
There has been no analysis between sample
sample recovery and grade and whether recoveries and grade to date.
sample bias may have occurred due to
preferential loss/gain of fine/coarse material.
Logging Whether core and chip samples have
Core samples were geologically logged. Lithology,
been geologically and geotechnically veining, alteration, mineralization and weathering are
logged to a level of detail to support recorded in the appropriate tables of the drill hole
appropriate Mineral Resource estimation, database.
mining studies and metallurgical studies.
Each core box was photographed dry and wet, after
Whether logging is qualitative or logging of unit and structures were notated on the core.
quantitative in nature. Core (or costean,
Core was cut along the long axis using a diamond
channel, etc) photography. saw, half-core was sampled, and half stored for
The total length and percentage of the relevant reference.
intersections logged.
Geological logging of core samples is
qualitative and quantitative in nature.
Sub-sampling If core, whether cut or sawn and whether
All drill core samples were cut along the long axis. The
techniques quarter, half or all core taken. left side when looking down hole was sampled. Samples
and sample If non-core, whether riffled, tube were placed in a heavy-duty poly sample bag. Each core
preparation sampled, rotary split, etc and whether sample placed in heavy duty poly sample bag, noted
sampled wet or dry. interval width in sample book, with a sample tag with the
For all sample types, the nature, corresponding sample number placed in the bag with the
quality and appropriateness of the other tag stapled to the top of the bag. Sample bags were
sample preparation technique. stapled along the top. Samples were sent by freight to
Quality control procedures adopted for all ALSGlobal or Paragon Geochemical, Reno, Nevada.
sub-sampling stages to maximise
Routine QAQC samples were inserted at a 20% rate
representivity of samples. into the sample batches and comprised Certified
Measures taken to ensure that the sampling is Reference Materials (CRMs) from CDN Resource
representative of the in situ material collected, Laboratories Ltd. and verified blank granitic material.
including for instance results for field • Rock samples sent to ALS Laboratories were dried,
duplicate/second-half sampling. weighed, crushed and split, with a split pulverized to
Whether sample sizes are appropriate to the better than 85% passing 75 microns. Samples were
grain size of the material being sampled. analyzed for trace elements using 4-acid digestion.
Additionally, rocks samples were analyzed by standard
30gm fire assay for gold and silver.

Sample size assessment was not conducted but used
sampling size which is typical for gold deposits.
Quality of The nature, quality and appropriateness of • Samples were assayed by industry standard
assay data the assaying and laboratory procedures used and methods by ALSGlobal Laboratories, Paragon
and whether the technique is considered partial or Geochemical in Reno, Nevada and Hazen Research
laboratory total. Laboratories in Golden, Colorado.
tests For geophysical tools, spectrometers, • Fire assays for gold and silver were completed
handheld XRF instruments, etc, the parameters using industry standard fire assay methodology.
used in determining the analysis including • External certified standards and blank material
instrument make and model, reading times, were added to the sample submission.
calibrations factors applied and their derivation,
etc.
Nature of quality control procedures adopted
(eg standards, blanks, duplicates, external

ASX Release 29 October 2021

Criteria JORC Code explanation Commentary
laboratory checks) and whether acceptable levels
of accuracy (ie lack of bias) and precision have
been established.
Verification of The verification of significant intersections • Sampling, documentation and sample submittal were
sampling and by either independent or alternative company under the guidance and care of Graham Craig, GIT
assaying personnel. (Association of Professional Engineers and Geoscientists of
The use of twinned holes. Manitoba).
Documentation of primary data, • Drilling, sample, and assay data is currently stored
data entry procedures, data in MX Deposit, a secured data management system
verification, data storage (physical and through Seequent.
electronic) protocols.
Discuss any adjustment to assay data.
Location of Accuracy and quality of surveys used to locate • All drill hole collars are surveyed using differential GPS
data points drill holes (collar and down-hole surveys), trenches, survey equipment. The positions are accurate to within 10
mine workings and other locations used in Mineral cm x-y and height (z) to +/- 20 cm.
Resource estimation. • The holes are surveyed in the Colorado State Plane,
Specification of the grid system used. UTM zone 12, NAD 1983 coordinate system.
Quality and adequacy of topographic • Down hole surveys will be done using a Reflex
control. SPRINT-IQ north seeking gyro on all diamond drill holes.
With collars surveyed using Reflex TN-14 Azimuth
Aligner.
• Sample locations were surveyed using Colorado State
Plane, UTM zone 12, NAD 1983 coordinate system.
Data spacing Data spacing for reporting of Exploration • The spacing and location of data is currently 16-33
and Results. meter spacing according to previous Mineral Resource
distribution Whether the data spacing, and distribution is estimation completed.
sufficient to establish the degree of geological • No sample compositing has been applied.
and grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation
procedure(s) and classifications applied.
Whether sample compositing has been applied.
Orientation of Whether the orientation of sampling achieves • Drill holes are planned to be drilled obliquely to near
data in unbiased sampling of possible structures and the perpendicular to the known mineralized structures.
relation to extent to which this is known, considering the Definition of structure location is the principal goal.
geological deposit type. • Sample orientation is deemed to be
structure If the relationship between the drilling representative for reporting purposes.
orientation and the orientation of key • No bias is considered to have been introduced
mineralised structures is considered to have by the existing sampling orientation.
introduced a sampling bias, this should be
assessed and reported if material.
Sample The measures taken to ensure sample security. • All samples were taken and maintained under the
security constant care of CRG Mining personnel. Samples were
delivered to laboratories by a licensed transportation
company.
Audits or The results of any audits or reviews of sampling • Drill hole sampling techniques and QAQC
reviews techniques and data. procedures have been developed and reviewed by
Dale Sketchley, M.Sc., P. Geo. of Acuity Geoscience
Ltd., Graham Craig, GIT.
• The QAQC program has demonstrated its ability to
catch errors.

ASX Release 29 October 2021

Criteria JORC Code explanation Commentary
• A QAQC review will be completed for this program.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria JORC Code explanation Commentary
Mineral Type, reference name/number, location and
All tenements are 100% owned by Dateline
tenement and ownership including agreements or material Resources Limited or a wholly owned subsidiary and
land tenure issues with third parties such as joint ventures, there exist production-based royalties as previously
status partnerships, overriding royalties, native title disclosed to ASX.
interests, historical sites, wilderness or national
park and environmental settings.
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.
Exploration Acknowledgment and appraisal of exploration by • Historical work was completed by various groups over
done by other other parties. 100 years and is not JORC compliant
parties
Geology Deposit type, geological setting and style of • The Gold Links Project is hosted by an Early
mineraliation. Proterozoic assemblage of fine-grained meta-sediments
and interbedded felsitic meta-volcanics. These were
intruded by Early Proterozoic amphibolites, granites,
and rhyolite porphyry dykes. Tertiary age rhyolitic
stocks, dikes and sills intrude the Proterozoic rocks.
• The gold and silver mineralization occurs in narrow
fissure quartz veins. Veins in the district trend West-
Northwest with steep Southerly dips.
• The auriferous quartz veins cut through the
various rock types. There appears to be an affinity
for the veins with the amphibolites. The primary
sulphide occurring in these veins is pyrite. Broad
zones of silicification and disseminated sulfides
have been found near the veins.
Drill hole A summary of all information material to the • See Table 1 within this report for details of the
Information understanding of the exploration results including drill holes and sample locations.
a tabulation of the following information for all
Material drill holes:
o
easting and northing of the drill hole collar
o
elevation or RL (Reduced Level –
elevation above sea level in metres) of the drill
hole collar
o
dip and azimuth of the hole
o
down hole length and interception depth
o
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.

ASX Release 29 October 2021

Criteria JORC Code explanation Commentary
Data In reporting Exploration Results, weighting Drill hole intersections are reported above a
aggregation averaging techniques, maximum and/or minimum lower exploration cut-off grade of 0.2 g/T Au and
methods grade truncations (eg cutting of high grades) and no upper cut off grade has been applied.
cut-off grades are usually Material and should be
stated.
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.
The assumptions used for any reporting of
metal equivalent values should be clearly stated.
Relationship These relationships are particularly Drill holes are orientated obliquely to
between important in the reporting of Exploration the mineralized structures and
mineralisation Results. disseminated bodies.
widths and If the geometry of the mineralisation with Interception angles of the
intercept respect to the drill hole angle is known, its mineralized structures are estimated by
lengths nature should be reported. geometries from known occurrences in
If it is not known and only the down hole lengths the adjacent mine workings and the core
are reported, there should be a clear statement to drilling intercepts.
this effect (eg ‘down hole length, true width not
known’).
Diagrams Appropriate maps and sections (with scales) Supporting figures have been included within the
and tabulations of intercepts should be included body of this release.
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.
Balanced Where comprehensive reporting of all Representative reporting of both low and high grades
reporting Exploration Results is not practicable, and/or widths have been reported.
representative reporting of both low and high
grades and/or widths should be practiced to
avoid misleading reporting of
Exploration Results.
Other Other exploration data, if meaningful and
substantive material, should be reported including (but not
exploration limited to): geological observations; geophysical
data 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.
Further work The nature and scale of planned further At Gold Links, future work will include expanded
work (eg tests for lateral extensions or depth drilling the on-strike and down-dip extensions of the
extensions or large-scale step-out drilling). 2150, Hanging Wall, and 1700 veins, preparation for
Diagrams clearly highlighting the areas of underground exploitation, finalizing the surface
possible extensions, including the main geological program; reopening, mapping and sampling of
interpretations and future drilling areas, provided previously inaccessible underground workings; as well as
this information is not commercially sensitive. infill and expanded surface soil geochemistry, geological
mapping, and geophysics.