DGR GLOBAL LIMITED — Interim / Quarterly Report 2020

Apr 29, 2020

DGR Global

Quarterly Report

DGR GLOBAL (ASX: DGR) is not just another resources company. DGR Global is a resource company creator .

Our project generation, strategic tenure acquisition, corporate development and investment capabilities provide diversity across several different commodities, sovereign jurisdictions and international financial exchanges. With our group of talented geoscientists, we focus on identifying and securing projects that will yield valuable world-class resource assets.

JANUARY 2020 – MARCH 2020

DGR Global (ASX:DGR) 27/111 Eagle Street, Brisbane, QLD 4000 www.dgrglobal.com.au 07 3303 0680

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DGR GLOBAL CREATES RESOURCE COMPANIES

DGR Global’s business is the creation of resource exploration, development and mining companies. The business uses the skills of a core team of talented geoscientists to identify resource projects capable of yielding world class discoveries of attractive commodities. This is achieved through the identification of commodities with a favourable 20-year demand, growth and price outlook. DGR searches for geological terranes with:

 A demonstrated strong endowment for that commodity in an historical under-explored region

 Opportunity for the application of recently developed exploration and metallurgical techniques to assist in the definition of economic resources

 Jurisdictions with improving socio-economic and regulatory frameworks

 Extensive available tenures

 Existing data sets which provide the basis for novel reinterpretation

DGR Global provides initial seed funding and management support to secure these assets in subsidiaries and develop these assets to more advanced funding stages. The Company has a pipeline of projects in daughter companies at various stages of emergence, and in 2015 crystallised a significant return through the sale of its 15% holding in Orbis Gold for $26Million. Further development of its holdings in LSE/TSX listed SolGold and AIM listed IronRidge Resources and ASX listed AusTin Mining, Dark Horse Resources and Armour Energy and unlisted Auburn Resources are expected over the coming years.

The previous resource exploration and funding activities of DGR’s key personnel underscore the opportunities provided by the DGR business model. DGR Global does not generally purchase its exploration projects. DGR’s in house generative capabilities gives the Company a strong competitive edge. DGR’s focus on provincial tenement positions covering entire sedimentary basins or structural blocks where possible, delivers capital, government and major resource corporate attention.

DGR Global holds key equity positions in its subsidiary companies after listing. As shown in the DGR Global Group Corporate Structure (see Figure 1) at 31 March 2020, DGR Global holds:

 19.05% of Armour Energy Ltd (ASX : AJQ),

• 10.61% of SolGold Plc (LSE/TSX : SOLG),

• 21.85% of IronRidge Resources Ltd (LSE : IRR),

• 13.32% of Aus Tin Mining Ltd (ASX : ANW),

 15.65% of Dark Horse Resources Ltd (ASX : DHR).

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Figure 1 - DGR Global Group Corporate Structure

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DGR Global Blueprint

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QUARTERLY REPORT FOR THE PERIOD ENDED 31 MARCH 2020

DGR Global [ASX:DGR]

• COVID-19 has temporarily impacted DGR’s capacity to carry out its normal business, however DGR has implemented a number of financial and operational strategies to minimise risk and endeavour to maintain shareholder value during this challenging period.

• The Company continues to focus on new project generation and value creation and also continues to seek out new investment and development opportunities to drive the creation of new resource companies.

• Business model endorsed by the best performing hedge fund in the world for 2016 with Tribeca Investment Partners providing $10 million in convertible note funding to further develop the resource company creation business[1] .

• DGR holds an 83.16% (Armour Energy 16.84%) interest in a highly prospective oil project in the Kanywataba Block, Uganda[2] .

• HSE for the group entities for which DGR acts as Operator, maintains a rolling 12-month TRIFR of 0.00 and zero environmental incidents for the corresponding period, highlighting the continuous commitment to sustainable and safe operations.

Share Price Discount To Net Tangible Assets to 31 March 20

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SolGold Plc (LSE and TSX: SOLG) – DGR Interest 10.61% 204.1M Shares

• Focus on high-grade world-class copper gold porphyry systems at Cascabel in Ecuador. Cascabel is close to Quito, (the Capital) and seaports, is at low elevation, and has abundant water supplies and access to hydropower.

• Updated NI 43-101 compliant Alpala Mineral Resource estimate, released in November 2018, more than doubled the initial estimate reported in January 2018 – refer SolGold website for details[3] .

• Sampling and mapping continued across SolGold’s additional 72 wholly owned Mineral Concessions in Ecuador until temporary suspension of site work due to COVID-19 in late March[4] . SolGold remains the dominant explorer in the country.

• Extensive high-grade copper, gold and zinc mineralisation already discovered in outcrops on several concessions in Southern Ecuador, particularly at the La Hueca, Timbara and Porvenir Projects[5] . High grade epithermal gold mineralisation discovered at the Blanca and Cisne Loja Project[6] .

• Rock saw channel sampling confirms the prospectivity of the Timbara 2 zone , with the mineralisation remaining open at both ends of the southern stream outcrop[7] .

• Large copper and gold systems discovered at the Chical Project in Northern Ecuador[8] .

• Strong epithermal gold and copper porphyry results for the Cisne Loja Project with copper, gold and silver mineralisation identified over an area 1.5km by 1km[9] .

• Increase in priority projects from 12 to 13 with the discovery of a large copper gold target at Celen which outcrops over an area 2km x 1 km and is located just 5km south of the Cisne Loja epithermal gold field discovery[10] .

• Strong initial copper gold porphyry results for the Coangos Project in southern Ecuador indicate very high potential for a major copper gold porphyry project in the broader tenement area[11] .

• Discovery of a new copper gold molybdenum porphyry target at the Sharug Project in Central Ecuador[12] .

• Drilling commenced at the Cielito Vein Prospect within the Blanca Project , with first two holes intersecting visible gold in multiple quartz veins supporting the conceptual mineralising model for the system[13] .

• BHP invested a further $US22m in Q4 2019, making it the largest shareholder and endorsing the view that SolGold holds a commanding Ecuadorean copper and gold exploration footprint, and in particular the Alpala deposit[14] .

• A second cluster of large, fertile porphyry systems discovered at the Rio Amarillo Project[15] .

• The Constitutional Court of Ecuador dismisses the second petition to prohibit mining in Azuay, Ecuador. The province of Azuay contains SolGold’s 100% owned Sharug Project[16] .

• SolGold continues to progress with work on the Pre-Feasibility Study (PFS), scheduled for completion by Q3, 2020 and the Definitive Feasibility Study (DFS), scheduled for completion by end Q1, 2021, subject to funding and land acquisition programmes[17] .

• Third Mineral Resource Estimate ( MRE#3 ) delivers a significant tonnage conversion to Measured Category plus additional minerals added to Measured plus Indicated Mineral resources[18] .

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Armour Energy Ltd (ASX:AJQ) – DGR Interest 19.05% 112.5M Shares

• Holds highly prospective whole basin oil and gas positions in Northern Territory and North West Qld covering 139,000 km[2] , and a track record of exploration success.

• Formal execution for a total value of $A95 million with Santos QNT Ltd for farm-in to Armour’s South Nicholson Basin oil and gas exploration project in Northern Australia. This agreement included an upfront cash payment of $A15 million[19] .

• $A55 million refinancing through secured and amortising debt notes finalised, enabling the retirement of existing convertible note funding and assisting with the delivery of a material work program that is geared towards achieving ongoing growth objectives[20] .

• The LPG system of the Kincora Gas Plant has been successfully recommissioned and the whole plant is fully operational. Gas, LPG and condensate from existing production wells has been processed and sold for twelve months to October 2019[21] .

• Awarded further Roma Shelf petroleum acreage near the Kincora plant[22] .

• Armour holds an interest in an Exploration Licence (DGR 83.16%, Armour 16.84%) over the highly prospective Kanywataba Block in the Albertine Graben, Uganda. Less than 40% of the Albertine Graben has been subjected to exploration to date where 101 wells of approximately 115 wells drilled have encountered hydrocarbons[23] . Completion of the 2D seismic programme that was interrupted by a force majeure event in October is expected to recommence early 2020[24] .

• Petroleum acreage near Chinchilla awarded to the Armour-APLNG JV with formal grant of Petroleum Production Licence being granted during the quarter. First gas from this tenement area planned for delivery by mid-2021[25] .

• Drilling completion of the Horseshoe #4 well with logging and formation evaluation indicating multiple hydrocarbon bearing sands. Initial test flow rates provided encouraging results with workover and completions operations and subsequent flow-toflare successfully conducted[26] .

• $4 million cash raised pursuant to a private placement on 30 September 2019 to further progress the Kincora Project[27] .

• Myall Creek #5A stimulation successfully completed with flowback and testing delivering encouraging results with production rates from the well continuing to climb[28] .

• Following on from an extensive review of potential oil exploration, appraisal and development acreage, new material oil reserves and resources added to the Company’s portfolio[29] .

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IronRidge Resources Ltd (LSE:IRR) – DGR Interest 21.8% 73.0M Shares

• Primary focus on gold (in Chad and Ivory Coast ) and lithium (in Ghana and Ivory Coast ) now firmly established with extensive tenement packages secured in all three countries.

• Major new gold discovery at the Dorothe Project and nearby Ouchar and Echbara licence areas in Chad, gold projects in Ivory Coast, and lithium projects with proven large, high grade lithium spodumene pegmatites in Ghana and Ivory Coast[30] .

• Earn-In Agreement executed over the Zaranou Gold Project covering 397 km[2] , complimenting the existing Ivory Coast portfolio for a combined total of 3,584 km[2] gold focussed land package. Mapping and early stage rock chip and channel sampling field programmes have commenced with consistent and high-grade results being returned[31] .

• Large magnetic anomaly discovered from recently completed airborne geophysical magnetic survey within the Zaranou licence area with smaller anomalies discovered along strike from the main anomaly[32] .

• Exceptional metallurgical results for the Ewoyaa Lithium Project which forms part of the Cape Coast Lithium Portfolio demonstrating the project’s capacity to deliver a premium product, with bulk sample test work delivering high grade concentrate with low contaminants with ongoing Reverse Circulation (RC) drilling delivering multiple high grade drilling intersections[33] .

• Successful battery grade lithium conversion trials conducted on coarse concentrate samples taken from the Ewoyaa Lithium Project[34] .

• Detailed face mapping, channel sampling, rock chip sampling, airborne magnetics geophysical survey and over 3,900m of air-core drilling undertaken in the Ivory Coast project portfolio with high-grade results received[35] .

• Retention of highly prospective hematite rich iron targets in Tchibanga and Belinga Sud licence areas in Gabon (total tenure 5,400km[2] ).

• Binding Memorandum of Understanding (MoU) entered into with GeoDrill for up to US$4 million or 40,000 metres of drilling across the African portfolio which will allow the Company to pay up to 50% in scrip[36] .

• Approximately 6,500 metres of Air Core (AC) drilling plus a further approximately 1,500 metres of Reverse Circulation drilling at the Zaranou Gold Project in the Ivory Coast project area with multiple high grade and broad gold intersection results having been received[37] .

• Soil sampling has defined multiple, kilometre-scale soil anomalies along strike from Air Core (AC) drilling at the Zaranou Gold Project , with infill sampling planned to commence[38] .

• Maiden Mineral Resource Estimate ( MRE ) announced in Indicated and Inferred status at the Ewoyaa and Abonko deposits[39] .

• Agreement entered into with Major Star to acquire 100% of the Bodite and Bianouan gold licences in the Ivory Coast exploration portfolio[40] .

• Agreement entered into with Joy Transporters Ltd (JTL) to acquire 100% of the share capital of JTL, giving the Company full ownership of the Saltpond and Cape Coast lithium exploration portfolio in Ghana[41] .

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Dark Horse Resources Ltd (ASX:DHR) – DGR Interest 15.65% 385.7M Shares

• Focused on gold in Argentina, but also looking at other precious and base metals project opportunities to broaden project and geographic diversity.

• Red Cloud appointed as financial advisors to assist with project financing opportunities including capital raisings and JV opportunities.

• Initial assay results from the extensive field exploration programme over the Santa Cruz Gold Projects reveal encouraging gold and silver results on several tenements with infill sampling at Cachi Prospects confirming gold-silver anomalism with further surface exploration work continuing to define drilling targets[42] .

• Visible gold identified in iron sulphide/oxide breccia at the Morena Project[43] .

• First phase drilling at Las Openas Gold Project targeting high grade gold silver and base epithermal veins discovered during surface mapping and sampling has been completed with high grade mineralised zones to moderate depths being confirmed. Recent rock chip samples and channel samples cut have further confirmed high-grade zones[44] .

• Work continues at Las Openas to define further targets for the next phase of drilling and to define the extent of further channel sampling[45] .

• Mapping at the Presagio Target identified 5 new zones of mineralization visible at surface with likely extension to depth, with visible gold and silver sulfosalts identified in rock chips, followed by the release of highly encouraging assay results with a follow up diamond sawn trenching programme with assay results from that programme completing the geological work needed to complete the final drill design[46] .

• Mapping and geophysical programmes have been completed over some of the mineralised Cachi targets providing drill targets, with surface sampling assay results showing excellent results and continuity of gold mineralisation within the project area[47] .

• Recently completed large trenching programme at Cachi during which important extensions of known vein systems were discovered, with strong assay results[48] .

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AusTin Mining (ASX:ANW) – DGR Interest 13.32% 362.2M Shares

• High-grade cobalt results from drilling at Mt Cobalt (QLD). Initial target zone 350m long and 25m wide open at depth[49] with a further 5-hole drilling programme completed in 2019 targeting areas to the north and west of the previous drill programme[50] .

• August 2013 JORC resource estimate confirmed Taronga as a world class tin project. The details of the resource (79% indicated) can be viewed on the ASX or on the AusTin Mining website.

• Metallurgical flow sheet completed for Taronga (NSW) pre-feasibility study. Ore described as coarse grained, having simple metallurgy, and highly amenable to pre-concentration.

• High grade rock chip exploration results from the most recent exploration programme in the Emmaville/Torrington exploration licences[51] .

• Heads of Agreement have been signed with Ten Mining for the effective disposal of the Granville Tin Mine (TAS)[52] .

• Interim work programme being finalised for Taronga to facilitate an upgrade to the established resource before potentially advancing to Stage 1 trial mining[53] .

• Private placement for $AU250,000 undertaken in Q4, 2019[54] .

• Non-binding term sheet recently signed with Lachlan Copper for a farm-in over three exploration licences prospective for copper and gold located in the Lachlan Fold Belt in NSW[55] .

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Auburn Resources | 44.79% DGR Interest 17.3M Shares

• Continuing to develop and consolidate as a zinc-lead, nickel-copper-cobalt, copper-gold company exploring in QLD and NT, with highly prospective areas in the NT covered by recent EL applications which are going through due process in the NT.

• Key Iron Oxide Copper Gold (IOCG) and lead-zinc targets identified and secured in the Tanumbirini district of the Northern Territory[56] – refer later section for details.

• Potential for world class copper gold discoveries at Mt Abbott, Calgoa and Marodian Projects and large sulphide nickel-cobalt-copper discoveries near Hawkwood[57] .

• Exploration targets defined for the Ban Ban Zinc Project.

• Planning well advanced for IPO and ASX listing (subject to market conditions) during 2020.

• Detailed summary set out from Page 14

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Armour Uganda | DGR Interest 83.16% (AJQ 16.84%)

Project: Kanywataba Block | Area: 344km[2 ] | Prospective for: Oil and Gas Location: Albertine Graben, Uganda

Armour Uganda’s flagship project is the ‘The Kanywataba Block’ it is located in a rift basin within the Albertine Graben, within close proximity to the Total and CNOOC operations in the North.

Within the block there are multiple developed (untested) on-trend structural traps (3-way and 4- way dip closures) and multiple untested stratigraphic traps.

The Kingfisher oil discovery (40km NE of Kanywantaba) oil seeps confirm local working petroleum system.

Activities have included the below, and are ongoing:

• Reprocessing of existing 2D seismic data

• Geochemical surface soil gas sampling program

• 2D seismic programme

• Basin Analysis study

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NEW OPPORTUNITIES

Coolgarra Minerals | 100% DGR owned

• 5 Exploration Permits (EPMs) for gold , nickel , cobalt and antimony in North Qld.

• First pass shallow drilling campaign on the Greenvale South project area result highlights include a gold intercept of 14 metres @ 1.67g/t and a cobalt-nickel intercept of 8 metres @ 0.16% cobalt and 0.74% nickel[58] .

• No exploration activities were undertaken in the current quarter.

Pinnacle Gold | 94% DGR owned

• 5 EPMs for gold near Charters Towers .

• No exploration activities were undertaken in the current quarter.

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Footnotes:	Footnotes:
	1DGR ASX Release 22/8, 25/10/17, 26/9/182AJQ ASX Release 14/9/17 3SOLG LSE & TSX Releases 20/11/18, 3/1/194SOLG LSE & TSX Release 25/3/20 5SOLG LSE & TSX Releases 24/2, 25/5/186SOLG LSE & TSX Releases 20/03, 7/6, 18/7/18 7SOLG LSE & TSX Release 12/2/208SOLG LSE & TSX Release 8/5/19 9SOLG LSE & TSX Releases 9/5, 23/10/19 10SOLG LSE & TSX Release 23/10/19 11SOLG LSE & TSX Release 10/5/1912SOLG LSE & TSX Release 13/6/19 13SOLG LSE & TSX Releases 5/8, 15/11/1914SOLG LSE & TSX Releases 25/11, 2/12/19 15SOLG LSE & TSX Release 13/2/2016SOLG LSE & TSX Release 24/2/20 17SOLG LSE & TSX Release 11/3/2018SOLG LSE & TSX Release 7/4/20 19AJQ ASX Releases 15/10, 4/12/1920AJQ ASX Release 29/3/19 21AJQ ASX Releases 21/1, 12/2/18 22AJQ ASX Releases 15/11, 21/12/18 23AJQ ASX Release 19/9/1724AJQ ASX Releases 28/10, 11/12/19 25AJQ ASX Releases 30/5, 18/7/19, 11/3/20 26AJQ Releases 22/10,31/10, 4/11, 12/11, 25/11, 11/12/19, 6/1, 17/1/20 27AJQ ASX Releases 30/9, 3/10/19 28AJQ ASX Releases 11/12, 24/12/19, 6/1/20 29AJQ ASX Release 18/2/2030IRR LSE:AIM Releases 2/5, 16/8, 24/9/18 31IRR LSE:AIM Releases 14/2, 23/4, 06/6, 20/6, 25/6, 23/7/19 32IRR LSE:AIM Release 11/11/19 33IRR LSE:AIM Releases 21/5, 20/8, 26/9, 25/11, 12/12/19, 21/1/20 34IRR LSE:AIM Release21/1/2035IRR LSE:AIM Releases 1/7,19/9/19 36IRR LSE:AIM Release 8/8/1937IRR LSE:AIM Releases 9/12/19, 15/1, 3/2/20 38IRR LSE:AIM Release 30/1/2039IRR LSE:AIM Release 28/1/20 40IRR LSE:AIM Release 2/3/2041IRR LSE:AIM Release 12/3/20 42DHR ASX Releases 16/1, 5/3, 18/10/19, 28/1/2043DHR ASX Release 16/1/19 44DHR ASX Releases 2/4, 1/5, 27/5, 26/7,20/8, 20/9, 18/10/1945DHR ASX Release 18/10/19, 28/1/20 46DHR ASX Releases 20/8, 26/9, 10/10, 15/11, 20/11/1947DHR ASX Releases 27/5, 30/7, 22/11/19 48DHR ASX Release 22/11/19, 28/1/2049ANW ASX Releases 23/1, 16/2/18 50ANW ASX Releases 21/3, 27/3, 10/05/19 51ANW ASX Release 11/9/19 52ANW ASX Release 23/4/2053ANW ASX Release 20/9/19 54ANW ASX Release 30/10/1955ANW ASX Release 16/4/20 56DGR ASX Release 20/5/19 57DGR ASX Releases 3/7, 5/7/17, 8/11/18 58DGR ASX Release 8/2/19

Footnotes:	Footnotes:
	1DGR ASX Release 22/8, 25/10/17, 26/9/182AJQ ASX Release 14/9/17 3SOLG LSE & TSX Releases 20/11/18, 3/1/194SOLG LSE & TSX Release 25/3/20 5SOLG LSE & TSX Releases 24/2, 25/5/186SOLG LSE & TSX Releases 20/03, 7/6, 18/7/18 7SOLG LSE & TSX Release 12/2/208SOLG LSE & TSX Release 8/5/19 9SOLG LSE & TSX Releases 9/5, 23/10/19 10SOLG LSE & TSX Release 23/10/19 11SOLG LSE & TSX Release 10/5/1912SOLG LSE & TSX Release 13/6/19 13SOLG LSE & TSX Releases 5/8, 15/11/1914SOLG LSE & TSX Releases 25/11, 2/12/19 15SOLG LSE & TSX Release 13/2/2016SOLG LSE & TSX Release 24/2/20 17SOLG LSE & TSX Release 11/3/2018SOLG LSE & TSX Release 7/4/20 19AJQ ASX Releases 15/10, 4/12/1920AJQ ASX Release 29/3/19 21AJQ ASX Releases 21/1, 12/2/18 22AJQ ASX Releases 15/11, 21/12/18 23AJQ ASX Release 19/9/1724AJQ ASX Releases 28/10, 11/12/19 25AJQ ASX Releases 30/5, 18/7/19, 11/3/20 26AJQ Releases 22/10,31/10, 4/11, 12/11, 25/11, 11/12/19, 6/1, 17/1/20 27AJQ ASX Releases 30/9, 3/10/19 28AJQ ASX Releases 11/12, 24/12/19, 6/1/20 29AJQ ASX Release 18/2/2030IRR LSE:AIM Releases 2/5, 16/8, 24/9/18 31IRR LSE:AIM Releases 14/2, 23/4, 06/6, 20/6, 25/6, 23/7/19 32IRR LSE:AIM Release 11/11/19 33IRR LSE:AIM Releases 21/5, 20/8, 26/9, 25/11, 12/12/19, 21/1/20 34IRR LSE:AIM Release21/1/2035IRR LSE:AIM Releases 1/7,19/9/19 36IRR LSE:AIM Release 8/8/1937IRR LSE:AIM Releases 9/12/19, 15/1, 3/2/20 38IRR LSE:AIM Release 30/1/2039IRR LSE:AIM Release 28/1/20 40IRR LSE:AIM Release 2/3/2041IRR LSE:AIM Release 12/3/20 42DHR ASX Releases 16/1, 5/3, 18/10/19, 28/1/2043DHR ASX Release 16/1/19 44DHR ASX Releases 2/4, 1/5, 27/5, 26/7,20/8, 20/9, 18/10/1945DHR ASX Release 18/10/19, 28/1/20 46DHR ASX Releases 20/8, 26/9, 10/10, 15/11, 20/11/1947DHR ASX Releases 27/5, 30/7, 22/11/19 48DHR ASX Release 22/11/19, 28/1/2049ANW ASX Releases 23/1, 16/2/18 50ANW ASX Releases 21/3, 27/3, 10/05/19 51ANW ASX Release 11/9/19 52ANW ASX Release 23/4/2053ANW ASX Release 20/9/19 54ANW ASX Release 30/10/1955ANW ASX Release 16/4/20 56DGR ASX Release 20/5/19 57DGR ASX Releases 3/7, 5/7/17, 8/11/18 58DGR ASX Release 8/2/19

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Auburn Resources | 44.79% DGR Interest 17.3M Shares

COPPER-GOLD-ZINC-NICKEL-COBALT

Auburn Resources is focused on the discovery and development of copper, gold, nickel, cobalt and zinc deposits in Eastern Queensland and the Northern Territory.

• Significant iron oxide copper gold (IOCG) indicators at Tanumbirini West.

• Large pyritic dolomitic sub-basin highly anomalous in lead (prospective for lead zinc deposits in the broader McArthur Basin) at Tanumbirini East.

• The Northern Territory Government has granted all 12 Exploration Licence Applications at the Victoria River Project (Zinc, Lead) and the Tanumbirini Project Area west of the McArthur River Zinc Mine.

• The Tanumbirini Project Area strongly supported by Northern Australia Geochemical Survey data base and Airborne Electromagnetic Surveys (both Geoscience Australia databases).

Figure 1: Location of the Tanumbirini and Victoria River Projects in the Northern Territory.

Figure 2: The Tanumbirini Project Area – traversed by the sealed Carpentaria Highway and the gas pipeline to the McArthur River Mine

The Northern Territory Government has now granted 11 of the 12 Exploration Licences that make up the Tanumbirini and Victoria River Projects to Pennant Resources Pty Ltd, a wholly owned subsidiary of Auburn Resources Limited, 47% owned by DGR Global ( see Figures 1 and 2 ).

Tennant Creek and Mt Isa are the preeminent mineral resource hubs for the Northern Territory and Queensland. The region between these two hubs is a vast prospective frontier covered by a thin veneer of sediments. Geoscience Australia (GA), as part of the Federal Government’s “Exploring for the Future” program, undertook an extensive soil sampling survey in collaboration with the Northern Territory Geological Survey and the Geological Survey of Queensland.

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Catchment outlet sediment samples were collected at 776 sites (including duplicates) and analysed for elemental composition using three different analytical techniques1. The black dots in Figure 3 show all the sample points. Subsequently, GA undertook a wide spaced airborne Electro-Magnetic survey over the whole area, principally to define sulphide mineralization targets.

In mid-2018 GA started the public release of the Northern Australian Geochemical Survey2, and DGR Global geoscientists started to interrogate the massive data sets. With a primary interest in base metals, DGR focused on the total lead assays rather than other base metals such as copper and nickel, since lead is relatively insoluble, not moving far from its point of origin. Figure 3 shows the result of this data search. The total lead footprint at Tanumbirini is larger in area than that at Mt Isa to the east, and comparable in magnitude given that Tanumbirini is all under cover and Mt Isa is exposed and has been mined for approximately a century. Lead high values to 46.2 ppm characterize Mt Isa and 34 ppm characterizes the Tanumbirini area. Auburn Resources subsidiary Pennant Resources immediately lodged Exploration Licence applications over the area as shown ( see also Figure 2 ).

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Figure 3: Geoscience Australia overbank fine stream sediment sample points, with regional lead anomalism (Total Lead > 25 ppm by ICP-MS) shown in dark pink

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Figure 4: Lead (light green) and Copper (light blue) anomalism by MMI (partial leach) geochemistry

More detailed investigation of the NAGS data sets further confirmed the large area of base metal anomalism at Tanumbirini. Examining the data sets for lead and copper by Mobile Metal Ion™ (partial leach) geochemistry indicates an even larger anomalous footprint at Tanumbirini, with a significant indication of copper on the western section of the project area ( see Figures 4 and 5 ). Highest copper in the unpolluted Tanumbirini area is 4310 ppb by MMI™. This compares to a high of 11,600 ppb in the polluted tailings creek at Mt Isa, but otherwise the Mt Isa area high is 2970 ppb. Copper in a blue copper sulphate stained polluted creek at the Mt Oxide mine is off scale at >20,000 ppb but is otherwise 2 – 3,000 ppb in the Mt Oxide Gunpowder copper district.

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IOCG Targets

Coinciding with the timing of DGR’s research, Greatland Gold plc announced its Havieron IOCG discovery at the Paterson Ranges about 40 kms east of Telfer. Noting that Greatland had previously announced that anomalous rare earths in soils were an exploration tool for IOCG deposits, DGR went back to the NAGS data sets to search for rare earths. As shown in Figure 5 (below), rare earths point to a massive IOCG target zone on the western section at Tanumbirini (yet to be supported by gravity and magnetic data).

Figure 5: Copper, gold, uranium, rare earths and molybdenum association at Tanumbirini– indicative of large IOCG (Iron Oxide Copper

Gold) targets under relatively shallow cover

DGR therefore considers that in the Tanumbirini Project Area the company has secured two new potential mineral fields:

1. A pyritic dolomitic shale sub basin of the broader McArthur Basin prospective for lead zinc deposits at Tanumbirini East; and

2. An iron oxide copper gold target area at Tanumbirini West.

Figure 6 is a composite diagram incorporating mapped fault structures and EM supported geology on a magnetic image, indicating the interpretation of a fault bounded pyritic dolomitic shale sub basin prospective for lead zinc deposits on the east, and iron oxide copper gold (IOCG) targets on the west. The stand-out feature through Tanumbirini is an 80 km long magnetic terrane boundary (shaded in purple), and which DGR considers is the source of the copper-gold-uranium-molybdenum-rare earth anomalism. The soil geochemistry and EM data from the Geoscience Australia surveys adds to an already extensive knowledge of surface geology and faults in the area, as well as available detailed magnetic data and a general understanding of the local stratigraphy.

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Figure 6: Geological Interpretation on Magnetic Image – a fault bounded pyritic dolomitic shale sub basin on the east (similar to Mt Isa in NW Qld), and IOCG targets on the west – similar but shallower than Olympic Dam or Havieron. The following Figure 7 shows a conceptual SW – NE geological cross-section of the Tanumbirini Project Area.

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Figure 7: Conceptual SW – NE Geological Cross-Section of the Tanumbirini Project Area

CORPORATE ACTIVITIES

DGR Global [ASX:DGR]

Corporate Calendar – 2020

DGR Global Ltd wishes to advise that it has published a CY2020 calendar of key dates which include the expected release of financial results and the date for the Company’s 2020 AGM amongst other things. The calendar is available in the Investor Centre section of the Company’s website.

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QUARTERLY ACTIVITIES REPORT

FOR THE PERIOD ENDED 31 MARCH 2020

Directors

William Stubbs (Chairman – Retired 31 March) Nicholas Mather (Managing Director) Brian Moller Vincent Mascolo Ben Cleary

Company Secretary Karl Schlobohm

Group Operations Manager John Bierling

Internet Address

All Company announcements, reports and presentations are posted on our website www.dgrglobal.com.au If you would like to receive news releases by email, please send an email to info@dgrglobal.com.au with the subject line “email alerts” or register your details on our website by clicking “Contact Us” and entering your details.

Issued Capital

Principal Exploration Geologist Russell Dow

Registered Office and Head Office

DGR Global Limited Level 27, 111 Eagle Street Brisbane QLD 4000 Phone: +61 7 3303 0680 Fax: +61 7 3303 0681 Website: www.dgrglobal.com.au Australian Stock Exchange (“ASX”)

ASX Code: DGR (Ordinary shares) Australian Business Number ABN 67 052 354 837

At 31March 2020, DGR Global Ltd had the following securities on issue:

613,181,877 ordinary shares

50 million (unlisted) convertible notes maturing 26/9/20 17.375 million (unlisted) 20 cent options expiring 8/11/20 17.5 million (unlisted) 20 cent options expiring 28/11/20 5.2 million (unlisted) 20 cent options expiring 12/02/21

Shareholding Enquiries

Link Market Services Limited manages DGR Global Ltd.’s share registry. If you would like to monitor your shareholding online, you can do so by visiting Link Market Services website.

Link Market Services Limited Locked Bag A14 SYDNEY Phone: 1300 554 474

Competent Persons Statement

The information in this report that relates to Exploration Results and Exploration Targets is based on information compiled by Nicholas Mather B.Sc. (Hons) Geol., who is a Member of the Australian Institute of Mining and Metallurgy. Mr Mather is employed by Samuel Holdings Pty Ltd which provides certain consultancy services including the provision of Mr Mather as the Managing Director of DGR Global Ltd and a Director of its subsidiaries and associates. Mr Mather has sufficient experience which is relevant to the style of mineralisation and type of deposit being reported and to the activity which is he undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code). Mr Mather has consented in writing to the inclusion in this report of the matters based on information in the form and context in which it appears.

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			Appendix	Appendix
31‐March‐2020
		DGR Global‐ Group Mining and Exploration Tenements
Tenement		Type		Principal Holder	Location
ML 3678		Mining Lease		DGR Global Limited	Qld, Australia
ML 3741		"		"	Qld, Australia
ML 3749		"		"	Qld, Australia
ML 3752		"		"	Qld, Australia
ML 3753		"		"	Qld, Australia
ML 50059		Surrendered		"	Qld, Australia
ML 50099		Surrendered		"	Qld, Australia
ML 50148		Mining Lease		"	Qld, Australia
ML 50291		"		"	Qld, Australia
EPM 19379		Exploration Permit for Minerals		Auburn Resources Limited²	Qld, Australia
EPM 25948		"		"	Qld, Australia
EPM 26013		"		"	Qld, Australia
EPM 26245		"		"	Qld, Australia
EPM 26248		"		"	Qld, Australia
EPM 26526		"		"	Qld, Australia
EPM 26529		"		"	Qld, Australia
EPM 26758		"		"	Qld, Australia
EPM 27217		"		"	Qld, Australia
EPM 26523		"		"	Qld, Australia
EPM 18534		"		"	Qld, Australia
EPM 15134		Exploration Permit for Minerals		Barlyne Mining Pty Ltd³	Qld, Australia
EPM 18451		"		"	Qld, Australia
EPM 19087		"		"	Qld, Australia
EPM 26274		"		"	Qld, Australia
EPM 26607		"		"	Qld, Australia
EPM 26796		Exploration Permit for Minerals		Pennant Resources Pty Ltd⁴	Qld, Australia
EPM 31980		"		"	NT, Australia
EPM 31981		"		"	NT, Australia
EPM 32002		"		"	NT, Australia
EPM 32006		"		"	NT, Australia
EPM 32008		"		"	NT, Australia
EPM 32009		"		"	NT, Australia
EPM 32010		"		"	NT, Australia
EPM 32011		"		"	NT, Australia
EPM 32012		"		"	NT, Australia
EPM 32013		"		"	NT, Australia
EPM 32014		"		"	NT, Australia
EPM 32039		"		"	NT, Australia
EPM 19270		Exploration Permit for Minerals		Coolgarra Minerals Pty Ltd⁵	Qld, Australia
EPM 26265		"		"	Qld, Australia
EPM 26355		"		"	Qld, Australia
EPM 26382		"		"	Qld, Australia
EPM 26386		"		"	Qld, Australia
EPM 27061		"		"	Qld, Australia
EPM 25525		Exploration Permit for Minerals		Pinnacle Gold Pty Ltd⁶	Qld, Australia
EPM 25963		"		"	Qld, Australia
EPM 25964		"		"	Qld, Australia
EPM 25965		"		"	Qld, Australia
EPM 25966		"		"	Qld, Australia
EPM 32031		"		"	NT, Australia
EPM 32032		"		"	NT, Australia
EPM 27289		"		"	Qld, Australia
Notes
1	10	0% owned by DGR Global
2	45	% owned by DGR Global
3	10	0% owned by Auburn Resources
4	10	0% owned by Auburn Resources
5	10	0% owned by DGR Global
6	94	% owned by DGR Global
Legend
	G	ranted or acquired during thequarter
	C	hange in Ownership %(eg: Farm‐in) or transfer during thequarter
	S	urrendered, Expired or Sale/Disposal during thequarter

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DGR Global 27/111 Eagle Street, Brisbane. QLD 4000 07 3303 0680 www.dgrglobal.com.au info@dgrglobal.com.au

==> picture [147 x 50] intentionally omitted <==

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