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FOCUS MINERALS LTD Interim / Quarterly Report 2021

Jul 29, 2021

64932_rns_2021-07-29_70524cce-ba2b-4d3f-bb8a-9a0e28442b44.pdf

Interim / Quarterly Report

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Market Announcement

30 July 2021

Quarterly Activities Report for June 2021 Quarter

Highlights:

  • 30% increase to Coolgardie Gold Project deposit CNX’s Inferred and Indicated Mineral Resource including conversion of 2.2Mt @ 1.5g/t for 105Koz to Indicated status

  • Confirmed at least 400m strike of CNX-style mineralisation from surface at the emerging Green Light deposit

  • 18% increase for Coolgardie deposit’s Big Blow deposit’s Inferred and Indicated Mineral Resource

  • Coolgardie deposit Happy Jack’s Mineral Resource updated

  • Coolgardie feasibility works progressing well

  • Total exploration expenditure for the quarter: $3.5m

  • Cash (unrestricted) as at 30 June 2021: $10.91m

West Australian gold explorer Focus Minerals ( ASX: FML ) ( Focus or the Company ) is pleased to provide its Quarterly Activities Report for the quarter ended 30 June 2021.

Most of the Company’s activities during the quarter were centred on the Coolgardie Gold Project ( Coolgardie ) though Focus also carried out work to advance its Laverton Gold Project ( Laverton ).

During the quarter, Focus completed 44 reverse circulation (RC) holes/pre-collars for 6,632m and 34 diamond holes/tails for 6,542.34m drilling at Coolgardie. The drilling was completed for:

  • Feasibility/permitting purposes including geotech, hydrogeology and metallurgical data/sampling;

  • Resource development activities; and

  • Exploration and tenement management.

Other activities included ongoing Mineral Resource reviews at Coolgardie.

Coolgardie Gold Project

Classification Tonnage (Mt) Au Grade(g/t) Au Moz Increase
Total Measured 1.4 2.3 0.10 0%
Total Indicated 20.4 2.2 1.47 +7%
Total Inferred 14.1 2.1 0.95 -10%
Total Mineral
Resource
35.9 2.2 2.52 +1%

Total Coolgardie Measured, Indicated and Inferred Resources including Mineral Resources updated in the June 2021 Quarter for CNX, Big Blow and Happy Jack

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Figure 4: Coolgardie location map highlighting deposits included in the 2020 Coolgardie PFS, Mineral Resources currently under review and the updated CNX open pit Mineral Resource.

Activity summary

  • Coolgardie Gold Project feasibility works progressing well;

  • 44 RC holes/pre-collars for 6,632m and 34 DD holes/tails for 6,542.34m drilling at Coolgardie;

  • • Diamond drilling at CNX was predominantly designed for feasibility purposes including:

  • geotech – preliminary wall angle for feasibility pit design;

  • metallurgical sampling to determine hardness/abrasive index;

  • test the Mineral Resource ahead of a proposed resource update; and

  • Next phase of CNX resource development is underway;

  • Geotech review underway to determine pit wall angles at Big Blow/Happy Jack;

  • Geotech drilling/logging at Alicia to determine pit wall angles;

  • Hydrogeological drilling at Alicia, Big Blow, Dreadnought and Brilliant;

  • Brilliant South infill resource development and geotech drilling completed and results expected in the September 2021 Quarter;

  • Strong results from Coolgardie drilling (calculated using 0.5 g/t cut off, up to 3m internal dilution) include:

    • CNX

      • 21CNDD004 20m @ 5.2g/t from 178m for (GxM 104)

      • 21CNRD027 10m @ 7.14g/t from 185m for (GxM 71)

      • 21CNRC026 15m @ 2.57g/t from 95m for (GxM 38)

      • 21CNRC026 10m @ 3.27g/t from 118m for (GxM 33)

    • Green Light

      • 21CNRC015 19m @ 1.93g/t from 64m for (GxM 37)

      • 21CNRC001 33m @ 0.89g/t from 87m for (GxM 29)

      • 21CNRC017 14m @ 1.57g/t from 202m for (GxM 22)

      • 21CNRC030 12m @ 1.42g/t from 33m for (GxM 17)

  • Mineral Resource review underway for Brilliant South to incorporate new drilling for the September Quarter 2021;

  • Maiden Mineral Resource being compiled for Greenlight by the December 2021 Quarter;

  • Next CNX Mineral Resource update is due by the December 2021 Quarter; and

  • Continued exploration success paves way for stronger resource position to underpin a resumption of gold production at Coolgardie.

Laverton Gold Project

Classification Tonnage (Mt) Au Grade(g/t) Au Moz
Total Measured 0.9 1.99 0.06
Total Indicated 42.4 1.56 2.12
Total Inferred 17.9 2.52 1.45
Total Mineral Resource 61.3 1.85 3.64
Total Laverton Measured, Indicated and Inferred Resources

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Figure 1: Key Laverton deposits under review and Stage 1 PFS results.

Activity summary

  • Beasley Creek and Beasley Creek South Mineral Resources prepared for updating in the December 2021 Quarter;

  • Craigiemore-to-Mary Mac Hill trend Mineral Resource prepared for update to JORC 2012 compliance in the December 2021 Quarter; and

  • West Laverton-to-Bulldog trend Mineral Resource prepared for update to JORC 2012 compliance in the December 2021 Quarter.

Corporate

During the quarter, Focus spent about $3.5m on exploration activities including drilling, assays, payments to consultants and exploration personnel.

On 19 May, Focus announced its intention to progress mining approvals for the Coolgardie Gold Project. The Company has engaged 360 Environmental to provide support in gaining environmental and health and safety approvals through the Department of Mines and Industry and the Department of Water and Environmental Regulations.

On 31 March, Focus published its Annual Report for the year ended 31 December 2020. The Company held its Annual General Meeting on 28 May.

Per ASX Listing Rule 5.3.5, Focus paid $230,000 to related parties of the Company and their associates, covering Executive Directors’ salaries, non-Executive Directors’ fees, superannuation and rent for the CEO.

As at 30 June, the Company’s cash position is as follows:

Cash at Bank and Deposits
Cash held on bond
Total Cash and Equivalents
$10.913m
$13.535m
$24.448m

Tenement Movements during the Quarter

Coolgardie Gold Project

Tenement Location Percentage as at
1 April 2021
Percentage as at
30 June 2021
Note
M15/0150 Bayleys 100% 100%
M15/0630 Bayleys 100% 100%
M15/1434 Bayleys 100% 100%
M15/1788 Bayleys 100% 100%
P15/5717 Bayleys 100% 100%
P15/5995 Bayleys 100% 100%
P15/6254 Bayleys 100% 100%
P15/6256 Bayleys 100% 100%
M15/0277 Bonnie Vale 100% 100%
M15/0365 Bonnie Vale 100% 100%
M15/0595 Bonnie Vale 100% 100%
M15/0662 Bonnie Vale 100% 100%
M15/0711 Bonnie Vale 100% 100%
M15/0770 Bonnie Vale 100% 100%
M15/0852 Bonnie Vale 100% 100%
M15/0857 Bonnie Vale 100% 100%
M15/0877 Bonnie Vale 100% 100%
M15/0981 Bonnie Vale 100% 100%
M15/1384 Bonnie Vale 100% 100%
M15/1444 Bonnie Vale 100% 100%
M15/1760 Bonnie Vale 100% 100%
M15/1853 Bonnie Vale 0% 0% Under application
P15/5159 Bonnie Vale 100% 100%
P15/5702 Bonnie Vale 100% 100%
P15/5703 Bonnie Vale 100% 100%
P15/5704 Bonnie Vale 100% 100%
P15/6598 Bonnie Vale 0% 0% Under application
G15/0007 Infrastructure 100% 100%
G15/0046 Infrastructure 0% 0% Under application
L15/0027 Infrastructure 100% 100%
L15/0028 Infrastructure 100% 100%
L15/0034 Infrastructure 100% 100%
L15/0042 Infrastructure 100% 100%
L15/0051 Infrastructure 100% 100%
L15/0059 Infrastructure 100% 100%
L15/0063 Infrastructure 100% 100%
L15/0077 Infrastructure 100% 100%
L15/0078 Infrastructure 100% 100%
L15/0088 Infrastructure 100% 100%
L15/0090 Infrastructure 100% 100%
L15/0095 Infrastructure 100% 100%
L15/0096 Infrastructure 100% 100%
L15/0114 Infrastructure 100% 100%
L15/0116 Infrastructure 100% 100%
L15/0119 Infrastructure 100% 100%
Tenement Location Percentage as at
1 April 2021
Percentage as at
30 June 2021
Note
L15/0122 Infrastructure 100% 100%
L15/0123 Infrastructure 100% 100%
L15/0126 Infrastructure 100% 100%
L15/0127 Infrastructure 100% 100%
L15/0130 Infrastructure 100% 100%
L15/0161 Infrastructure 100% 100%
L15/0164 Infrastructure 100% 100%
L15/0168 Infrastructure 100% 100%
L15/0169 Infrastructure 100% 100%
L15/0171 Infrastructure 100% 100%
L15/0172 Infrastructure 100% 100%
L15/0173 Infrastructure 100% 100%
L15/0174 Infrastructure 100% 100%
L15/0175 Infrastructure 100% 100%
L15/0177 Infrastructure 100% 100%
L15/0179 Infrastructure 100% 100%
L15/0186 Infrastructure 100% 100%
L15/0193 Infrastructure 100% 100%
L15/0194 Infrastructure 100% 100%
L15/0200 Infrastructure 100% 100%
L15/0211 Infrastructure 100% 100%
L15/0283 Infrastructure 100% 100%
L15/0294 Infrastructure 100% 100%
L15/0371 Infrastructure 100% 100%
L15/0403 Infrastructure 0% 0% Under application
L15/0405 Infrastructure 0% 0% Under application
L15/0421 Infrastructure 0% 0% Under application
E15/0986 Lake Cowan 100% 100%
G15/0043 Lake Cowan 0% 0% Under application
L15/0408 Lake Cowan 0% 0% Under application
M15/1882 Lake Cowan 0% 0% Under application
P15/5964 Londonderry 100% 100%
P15/5966 Londonderry 100% 100%
P15/5967 Londonderry 100% 100%
P15/5968 Londonderry 100% 100%
P15/5969 Londonderry 100% 100%
P15/5970 Londonderry 100% 100%
P15/5971 Londonderry 100% 100%
P15/5972 Londonderry 100% 100%
P15/6118 Londonderry 100% 100%
P15/6119 Londonderry 100% 100%
P15/6120 Londonderry 100% 100%
P15/6121 Londonderry 100% 100%
P15/6122 Londonderry 100% 100%
P15/6123 Londonderry 100% 100%
P15/6176 Londonderry 100% 100%
P15/6177 Londonderry 100% 100%
P15/6178 Londonderry 100% 100%
M15/0385 Lord Bob 100% 100%
M15/1789 Lord Bob 100% 100%
Tenement Location Percentage as at
1 April 2021
Percentage as at
30 June 2021
Note
P15/5712 Lord Bob 100% 100%
P15/5939 Lord Bob 0% 0% Under application
P15/6102 Lord Bob 100% 100%
M15/0384 Norris 100% 100%
M15/0515 Norris 100% 100%
M15/0761 Norris 100% 100%
M15/0791 Norris 100% 100%
M15/0871 Norris 100% 100%
M15/1153 Norris 100% 100%
M15/1422 Norris 100% 100%
M15/1793 Norris 100% 100%
P15/5807 Norris 100% 100%
P15/6002 Norris 100% 100%
P15/6033 Norris 100% 100%
P15/6605 Norris 0% 0% Under application
M15/0154 Three Mile Hill 100% 100%
M15/0636 Three Mile Hill 100% 100%
M15/0645 Three Mile Hill 100% 100%
M15/0781 Three Mile Hill 100% 100%
M15/0827 Three Mile Hill 100% 100%
M15/1341 Three Mile Hill 100% 100%
M15/1357 Three Mile Hill 100% 100%
M15/1358 Three Mile Hill 100% 100%
M15/1359 Three Mile Hill 100% 100%
M15/1432 Three Mile Hill 100% 100%
M15/0023 Tindals 100% 100%
M15/0237 Tindals 100% 100%
M15/0410 Tindals 100% 100%
M15/0411 Tindals 100% 100%
M15/0412 Tindals 100% 100%
M15/0646 Tindals 100% 100%
M15/0660 Tindals 100% 100%
M15/0675 Tindals 100% 100%
M15/0958 Tindals 100% 100%
M15/0966 Tindals 100% 100%
M15/1114 Tindals 100% 100%
M15/1262 Tindals 100% 100%
M15/1293 Tindals 100% 100%
M15/1294 Tindals 100% 100%
M15/1433 Tindals 100% 100%
M15/1461 Tindals 100% 100%
P15/5949 Tindals 100% 100%
P15/5987 Tindals 100% 100%
P15/6251 Tindals 100% 100%
P15/6252 Tindals 100% 100%
P15/6253 Tindals 100% 100%
P15/6257 Tindals 100% 100%
P15/6333 Tindals 0% 0% Under application
M15/1874 Nepean 0% 0% Transferred*,RoyaltyRights
P15/5574 Nepean 0% 0% Transferred*,RoyaltyRights
Tenement Location Percentage as at
1 April 2021
Percentage as at
30 June 2021
Note
P15/5575 Nepean 0% 0% Transferred*,RoyaltyRights
P15/5739 Nepean 0% 0% Transferred*, Royalty Rights

*Agreement to transfer title as per deed of settlement announcement 18 September 2020. Transfer not yet registered.

Laverton Gold Project

Tenement Location Percentage as at
1 April 2021
Percentage as at
30 June 2021
Note
E38/1864 Admiral Hill – Barnicoat 100% 100%
E38/3232 Admiral Hill - Barnicoat 100% 100%
E38/3238 Admiral Hill - Barnicoat 100% 100%
E38/3565 Admiral Hill - Barnicoat 0% 0% Under application
M38/0264 Admiral Hill - Barnicoat 100% 100%
M38/0318 Admiral Hill - Barnicoat 100% 100%
M38/0376 Admiral Hill - Barnicoat 100% 100%
M38/0377 Admiral Hill - Barnicoat 100% 100%
M38/0387 Admiral Hill - Barnicoat 100% 100%
M38/0401 Admiral Hill - Barnicoat 100% 100%
M38/0507 Admiral Hill - Barnicoat 100% 100%
M38/1032 Admiral Hill - Barnicoat 100% 100%
M38/1042 Admiral Hill - Barnicoat 100% 100%
P38/4519 Admiral Hill - Barnicoat 0% 0% Under application
E38/1642 Burtville 100% 100%
E38/2032 Burtville 100% 100%
E38/3050 Burtville 100% 100%
E38/3051 Burtville 100% 100%
E38/3088 Burtville 100% 100%
E38/3217 Burtville 100% 100%
M38/0008 Burtville 100% 100%
M38/0073 Burtville 91% 91%
M38/0089 Burtville 91% 91%
M38/0261 Burtville 100% 100%
M38/1281 Burtville 100% 100%
E38/3424 Central Laverton 100% 100%
M38/0143 Central Laverton 100% 100%
M38/0236 Central Laverton 100% 100%
M38/0270 Central Laverton 100% 100%
M38/0342 Central Laverton 100% 100%
M38/0345 Central Laverton 100% 100%
M38/0363 Central Laverton 100% 100%
M38/0364 Central Laverton 100% 100%
M38/1187 Central Laverton 100% 100%
P38/4163 Central Laverton 100% 100%
E38/3639 Chatterbox 0% 0% New application
M38/0049 Chatterbox 100% 100%
M38/0101 Chatterbox 100% 100%
M38/0535 Chatterbox 100% 100%
M38/0693 Chatterbox 100% 100%
G38/0020 Infrastructure 100% 100%
G38/0024 Infrastructure 100% 100%
G38/0025 Infrastructure 100% 100%
G38/0033 Infrastructure 100% 100%
L38/0034 Infrastructure 100% 100%
L38/0052 Infrastructure 100% 100%
L38/0053 Infrastructure 100% 100%
L38/0054 Infrastructure 100% 100%
Tenement Location Percentage as at
1 April 2021
Percentage as at
30 June 2021
Note
L38/0055 Infrastructure 100% 100%
L38/0056 Infrastructure 100% 100%
L38/0057 Infrastructure 100% 100%
L38/0063 Infrastructure 100% 100%
L38/0075 Infrastructure 100% 100%
L38/0076 Infrastructure 100% 100%
L38/0078 Infrastructure 100% 100%
L38/0092 Infrastructure 100% 100%
L38/0101 Infrastructure 100% 100%
L38/0108 Infrastructure 100% 100%
L38/0152 Infrastructure 100% 100%
L38/0153 Infrastructure 100% 100%
L38/0160 Infrastructure 100% 100%
L38/0165 Infrastructure 100% 100%
L38/0166 Infrastructure 100% 100%
L38/0173 Infrastructure 100% 100%
L38/0177 Infrastructure 100% 100%
L38/0179 Infrastructure 100% 100%
L38/0183 Infrastructure 100% 100%
L38/0231 Infrastructure 100% 100%
L38/0335 Infrastructure 0% 0% Under application
L38/0336 Infrastructure 100% 100%
L38/0337 Infrastructure 100% 100%
L38/0338 Infrastructure 100% 100%
L38/0339 Infrastructure 0% 0% Under application
E38/2873 Lake Carey 100% 100%
E38/3604 Lake Carey 0% 0% Under application
P38/4099 Lake Carey 100% 100%
P38/4100 Lake Carey 100% 100%
P38/4102 Lake Carey 100% 100%
E38/3186 Lancefield 100% 100%
M38/0037 Lancefield 100% 100%
M38/0038 Lancefield 100% 100%
M38/0159 Lancefield 100% 100%
M38/0547 Lancefield 100% 100%
M38/1272 Lancefield 100% 100%
P38/4347 Lancefield 100% 100%
P38/4348 Lancefield 100% 100%
P38/4349 Lancefield 100% 100%
E38/1725 Prendergast 100% 100%
E38/1869 Prendergast 100% 100%
E38/2862 Prendergast 100% 100%
P38/4091 Prendergast 100% 100%
M38/0425 Murrin Murrin 0% 0% Au rights
M38/0505 Murrin Murrin 0% 0% Au rights

The release of this ASX announcement was authorised by Mr Zhaoya Wang, CEO of Focus Minerals Ltd.

For further information please contact:

For media and investor enquiries please contact:

Nicholas Ong Peter Klinger Company Secretary Director, Investor Relations Focus Minerals Ltd. Cannings Purple Phone: +61 8 9215 7888 Phone: +61 411 251 540 Email: [email protected] Email: [email protected]

About Focus Minerals Limited (ASX: FML)

Focus Minerals is a Perth-based, ASX-listed gold exploration company focused on delivering shareholder value from its 100%-owned Laverton Gold Project and Coolgardie Gold Project, in Western Australia’s Goldfields.

The flagship Laverton Gold Project covers 386km[2] area of highly prospective ground that includes the historic Lancefield and Chatterbox Trend mines. Focus’ priority target is to confirm sufficient gold mineralisation at the Beasley Shear Zone, Lancefield-Wedge Thrust, Karridale and Burtville to support a Stage 1 production restart at Laverton. In parallel, Focus is working to advance key Laverton resource growth targets including Sickle, Ida-H and Burtville South. Focus has delivered first results from a progressive Pre-Feasibility Study (Pre Tax NPV5.0% A $132M) and is advancing study work utilising Laverton’s expanded Mineral Resource position.

Focus is also committed to delivering shareholder value from the Coolgardie Gold Project, a 175km[2] tenement holding that includes the 1.4Mtpa processing plant at Three Mile Hill (on care and maintenance), by continuing exploration and value-enhancing activities. An updated PFS in September 2020 highlighted the potential for a low capital cost, fast-tracked return to mining at Coolgardie and delivered an NPV7.5% of $183 million. The Company’s efforts are now focused on increasing production ready Mineral Resources at Coolgardie.

Competent Person Statement

The information in this announcement that relates to Exploration Results is based on information compiled by Mr Alex Aaltonen, who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Aaltonen is an employee of Focus Minerals Limited. Mr Aaltonen 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 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.

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