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KILLI RESOURCES LIMITED Capital/Financing Update 2023

Apr 3, 2023

65186_rns_2023-04-03_82ba459d-f7c3-4e17-9a4c-adac1cdb263a.pdf

Capital/Financing Update

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Ravenswood North ASX ANNOUNCEMENT ASX | KLI

4 April 2023

New Rocky drilling targets Ravenswood style mineralisation

Ravenswood North Project, Queensland (100% owned)

  • Geological evaluation of Rocky draws comparison to Ravenswood 8Moz gold deposit 53 kms along strike.

  • The scale, host rocks, geophysics, and gold results from drilling at Rocky identifies a 3km[2] prospective gold mineralised intrusive similar to the Ravenswood deposits.

  • RC & Diamond drill program to commence in April/May, targeting geophysical anomalies from the VTEM survey.

Killi Resources Limited (‘Killi’ or the ‘Company’) (ASX: KLI) is exploring for intrusive-related gold systems (‘IRG’) in the highly prospective Charters Towers-Ravenswood district in Northern Queensland.

Evaluation of the recently acquired data, from the initial five drillholes and processing of geophysics, indicates the Company’s Rocky prospect to be geologically comparable to the Ravenswood (8Moz Au) and Mt Wright (1.5Moz Au) deposits 53kms along strike, Figure 1. The 2[nd] half of the drill program which is scheduled for April/May has been designed around the findings from the comparative geology.

Killi CEO, Kathryn Cutler commented: ‘We believe Rocky to be a significant new intrusive system in the Charters Towers/Ravenswood district. Rocky draws strong comparisons to Ravenswood gold deposits 50kms down the road and only has five holes drilled in the system to date, so we have a huge opportunity here to discover a new gold deposit for the region. We plan to continue with our drill program at Rocky in coming weeks and look forward to informing the market of the results.’

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Figure 1. Location of Rocky project in relation to gold deposits in the Ravenswood district.

ABN 35 647 322 790 | Address 945 Wellington Street, West Perth Western Australia 6005 Telephone +61 8 9322 7600 | Email [email protected] | Website www.killi.com.au

Intrusive Gold deposits in the district

In Queensland IRG are a common style of gold mineralisation, with 12 IRG deposits in Northern Queensland greater than 1Moz’s. Within 60kms of Rocky there are seven IRG deposits, which combined, host 28Moz of gold endowment.

These gold deposits all form under similar conditions and have a distinct appearance. They all exist within an intrusive complex’s, defined by geophysical and geochemical parameters, of various sizes and shapes. Within the region many intrusive complexes were formed during specific geological event within the Permo-Carboniferous. In close proximity to the Killi Project, Ravenswood, Mt Wright & Mt Leyshon deposits were formed during the Carboniferous to Permian age, the same time period as Rocky, Table 1.

All gold camps within the region are slightly different, however once you find a gold mineralised intrusive it becomes a matter of finding the localised concentration of the gold, either within quartz veins or a mineralised intrusive

Table 1. Comparison of Rocky to Ravenswood district gold deposits

Deposit Gold
(Moz Au)
Intrusive
Size
Mineralisation Style Age
(Ma)
Associated
Elements
Mineralised
Footprint
Best drill
**intercept **
Rocky N/A 3km2 Granite host, gold in
quartz veins
310 Ag, Zn, Cu, Sb,
Pb
- 7m @ 0.77g/t Au
from 177m**
Ravenswood 8 3.8km2 Granite host, gold in
quartz veins
310 Ag, Zn, Cu, As,
Pb
600 x 900m 28m @ 1.61 g/t Au
from 72m
Mt Wright 1.5 350 x 450m Rhyolite Breccia 310 Ag, Cu, Pb, Zn,
Bi,Te
200 x 60m 443m @ 2.4g/t Au
from 142m.
Mt Leyshon 3.8 3 x 2km Granite host, gold in
quartz veins, breccia
330 Ag, Bi, Zn, Cu,
Pb, Mo + Te,
Co,As,Sb
400 x 100m
Charters
Towers
14 N/A Granite host, gold in
quartz veins
400 Ag, Zn, Pb, Cu
+ Te
120 x 70m

Adapted from the 17[th] IGES, May 1995, Townsville, Queensland. N/A- Not Applicable. **based on five drill holes (Refer to ASX announcement 7 March 2023)

Rocky Comparisons

Ravenswood Gold Mine

Gold mineralisation of the Ravenswood gold mine is generally hosted within breccia and stockwork veins as either ‘ Mt Wright-style ’ breccia pipes high-grade/low tonnage veins, or low-grade/high tonnage stockwork style veins within a granodiorite .

The first holes drilled into Ravenswood were RAB holes which returned 2m @ 2.01g/t Au from 10m (3P29) and 2m @ 7.93 from 6m (3P30) CR23869, with the two open pits at the mine contained a total pre-mining resource of 120Mt @ 0.9g/t Au.

The surface expression of the gold system, within the 3.8km[2] intrusive, had a footprint of 600m x 900m. This is a considerably small footprint for an 8M oz gold deposit, from surface to ~400m depth. The typical initial intersections of the deposit which encourage further drilling were 28m @ 1.61g/t Au from 72m (SFP3) and 64m @ 2.13g/t Au from 98m (SFP5).

Gold mineralisation at Sarsfield is directly related to regional east-west trending faults which crosscut the granodiorite and has resulted in a network of flatly dipping sulphide-quartz veins, Figure 2. Surface sampling over Sarsfield returned results up to ~20g/t Au and soils returned moderately anomalous in AuAg-Cu-Pb-Zn.

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KILLI Resources Limited | ASX Announcement | www.killi.com.au

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Figure 2. Plan view of the mineralisation footprint at Ravenswood Gold Mine, Sarsfield open pit (600 x 900m), and cross-section of the first drill holes across the deposit with mineralisation (0.5 - >1.0g/t Au), with current pit outline.

Mt Wright

Mt Wright is a 1.5Moz gold intrusive system where an intruding rhyolite is mineralised with gold, at a grade of 2.8 – 3.0g/t Au. The deposit is a roughly oval shaped vertical body of rhyolite breccia, from surface to >800m depth. The breccia is barren of mineralisation from surface to 150m but increases in grade with depth. The rhyolite is within a complex which is 450m x 350m where the mineralised footprint of the deposit within the complex is only 50 x 150m, Figure 3. The full potential of the deposit was realised in 1992 when 443m @ 2.4g/t Au from 142m was intercepted downhole. Mt Wright has a very small 50 x 150m mineralised footprint within a 450 x 350m intrusive system.

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Figure 3. Plan view of the mineralisation footprint at Mt Wright (50 x 150m) within 350 x 450m intrusive complex, and cross-section of the first drill holes into the rhyolite breccia (0.5 - >2.0g/t Au).

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KILLI Resources Limited | ASX Announcement | www.killi.com.au

Mt Leyshon

At Mt Leyshon the gold deposit is within a breccia that sits at the top of the intrusive and is host to 3Moz of gold. The footprint of the gold mineralisation at surface was only 300 x 300m, within a 1.5km[2] intrusive complex. The total deposit grade is low, around 0.8g/t Au, with the initial rock chips collected at surface returning 0.5 – 1.0g/t Au. The first exploration drilling was completed in 1983 and by 1986 mining commenced and the operation produced ~100,000oz Au in its first year.

Rocky

At the Company’s Rocky prospect, the gold system is defined within a 3km[2] granodiorite complex, with elevated Ag-Zn-Cu-Sb-Pb in soils at surface. The granodiorite intersected in the first five holes are interpreted as granodiorites within the Ravenswood Batholith the host sequence to the Ravenswood Sarsfield, Mt Wright, and Mt Leyshon gold deposits. Features identified from the first drill holes at Rocky, indicate the granodiorite is similar in nature to the mineralised rock suite found at Ravenswood gold deposit, with similar mineralisation styles and scale, Figure 4.

Rocky has five drill holes into the system to date, with the prospect never previous drilled by historical explorers.

Comparisons between known deposits and Rocky suggest Ravenswood is the most similar deposit within the region, Figure 5. Similar to the first RAB results at Ravenswood, the first results from the five drill holes at Rocky were from quartz veins within the granodiorite, which included 1m @ 3.22g/t Au from 105m (RVRC0002), 2m @ 1.58g/t Au from 177m (RVRC0005), and 7m @ 0.77g/t from 177m (RVRC0003) (ASX release 7 March 2023).

Drilling on a 300 x 300m grid spacing should be adequate for testing the granodiorite system at Rocky, based on the knowledge of nearby gold deposits.

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Figure 4. Intrusive system of Ravenswood Gold Mine in comparison to Rocky system, over airborne magnetics, and 8Moz Au footprint of Ravenswood Mineralisation (600 x 900m).

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KILLI Resources Limited | ASX Announcement | www.killi.com.au

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Figure 5. Schematic cross-section of the intrusive gold deposits within the Ravenswood district, with nearby gold deposits formed at the same time as Rocky outlined in red.

Future work

Drilling is being planned to target specific structural ‘traps’ at Rocky, from the VTEM data, which has recently been processed (refer to ASX Announcement 7[th] March 2023). The program is anticipated to commence in April at the project, where a combination of reverse circulation and diamond drilling will be completed to ensure target depth is reached and geological information received.

The first five holes completed in December 2022 tested the gold anomalies from the soil program, on 300m spaced centres, with the results indicating we are drilling within a gold mineralised intrusive system. Understandings from the Ravenswood, Mt Wright and My Leyshon deposits will be used to ensure drill spacing and depth are considered when exploring for an intrusive at Rocky. The five drill holes planned for April 2023 are specifically designed to test the centre of the interpreted intrusive unit from the geophysics, similar to Mt Wright. As these systems may be depleted in gold mineralisation at surface, the program will complete RC drill holes from surface to 200m depth with a diamond tail from 200 to 400m through the intrusive targets.

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KILLI Resources Limited | ASX Announcement | www.killi.com.au

Additional processing of the VTEM data is underway at the West Branch prospect, to further define targets at the Cu-Au-Ag-Pb prospect.

Authorised for release by the Board of Killi Resources Limited.

Media Enquires

Kathryn Cutler Chief Executive Officer +61 8 9322 7600

Compliance Statement

The information in this report that relates to prior Exploration Results for the Ravenswood North Project is extracted from the ASX Announcements listed below which are available on the Company website www.killi.com.au and the ASX website (ASX code: KLI):

Date Announcement title
7 March 2023 Significant drill and geophysics results at Rocky Prospect
15 November 2022 High-grade results extend Rocky Prospect, Ravenswood North
4 October 2022 New High-Grade Cu-Au Surface Mineralisation at Ravenswood
20 September 2022 Conductors identified at Ravenswood North

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the estimates in the market announcements continue to apply and have not materially changed. The Company confirm that form and context in which the Competent Person’s finding are presented have not been materially modified from the original market announcements.

Competent Person’s Statement

The information in this report that relates to Exploration Results is based on information compiled by Ms Kathryn Cutler. Ms Cutler is a Member of The Australasian Institute of Mining and Metallurgy. Ms Cutler has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are 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. Ms Cutler consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

Cautionary Statement

The geological system mineralisation comparisons to the Rocky prospect have been presented to outline the basis for the Company’s upcoming drill program. They do not indicate that the Company’s exploration program at Rocky will result in the discovery of a resource similar to the projects outlined. There is no guarantee that the Company’s exploration programs will result in the discovery of any economic resource and even if an apparently viable resource is identified there if no guarantee that it can be economically exploited.

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KILLI Resources Limited | ASX Announcement | www.killi.com.au

References:

  1. Hutton & Cranfield, Field Guide for the Townsville – Charters Towers – Bowen GSA Field Trip.

  2. Sullivan, 2014, Annual General Meeting, Resolute Mining Limited.

  3. Green, Harvey, McIntosh and Webb, 1997, Discovery of the Sarsfield and Mount Wright deposits at Ravenswood, New Generation Gold Conference.

  4. Resolute Mining Limited website; http://www.resolute-ltd.com.au/, April 2014.

  5. Teale & Lynch, The Discovery and Early History of the Mt Leyshon Gold Deposit, North Queensland.

About Killi Resources Limited

Killi Resources (ASX: KLI) is a gold, copper and rare earth explorer with four wholly owned assets in Australia, with a focus on the Tanami region of Western Australia, Figure 4. The Company is focussed on underexplored provinces with the potential for a large-scale new discovery.

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Figure 4. Location of Killi Resources Limited gold, copper and rare earth projects in Australia.

This announcement relates to the Ravenswood North Project in Queensland

The Company owns 100% of the Ravenswood North Project located near Charters Towers in Queensland. The project consists of five granted tenements and one tenement in application, totalling ~660km[2] .

The majority of the land holding covers the prospective Ravenswood-Charters Towers gold corridor, host to Ravenswood Gold Mine (~9Moz Au system), Charters Towers (~14Moz Au Resource), Mt Leyshon (3.8Moz Au produced), Mt Wright, Mt Success and Piccadilly all within 60kms of the project, Figure 5.

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KILLI Resources Limited | ASX Announcement | www.killi.com.au

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Figure 5. Location of Ravenswood North Project in relation to existing mines of the Charters Towers area. Resources quoted from Citigold Corporation Limited, Mineral Resources and Ore Reserves 2020 , Charters Towers Gold Project, 8 December 2020. Ravenswood Gold brochure, June 2021.

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KILLI Resources Limited | ASX Announcement | www.killi.com.au

Section 1 Sampling Techniques and Data

Criteria JORC Code explanation JORC Code explanation Commentary
Sampling techniques
Nature and quality of sampling (eg cut channels, random chips, or specific
specialised industry standard measurement tools appropriate to the minerals
under investigation, such as down hole gamma sondes, or handheld XRF
instruments, etc). These examples should not be taken as limiting the broad
meaning of sampling.
Include reference to measures taken to ensure sample representivity and the
appropriate calibration of any measurement tools or systems used.
Historical Percussion drill holes are quoted in the text, completed by MIM
Exploration in 1992, CR23896. Where 2m composites were collected off a
cyclone splitter and analysed at the ALS Laboratory in Townsville.
Samples were analysed for gold by fire assay, with selective samples
submitted for copper, lead, zinc, silver, arsenic and bismuth by Atomic
Absorption Spectroscopy (AAS).
Aspects of the determination of mineralisation that are Material to the Public
Report.
In cases where ‘industry standard’ work has been done this would be relatively
simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which
3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more
explanation may be required, such as where there is coarse gold that has
inherent sampling problems. Unusual commodities or mineralisation types (eg
submarine nodules) may warrant disclosure of detailed information.
Drilling techniques Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger,
Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth
of diamond tails, face-sampling bit or other type, whether core is oriented and if

Percussion drilling was used. Holes were vertical and drilled to an
average depth of 40m.
so, by what method, etc).
Drill sample recovery Method of recording and assessing core and chip sample recoveries and results The sample from the percussion drill rig, was received in 2m splits from a
assessed. cyclone splitter off the drill rig.
Measures taken to maximise sample recovery and ensure representative nature
of the samples.
Whether a relationship exists between sample recovery and grade and whether
sample bias may have occurred due to preferential loss/gain of fine/coarse
material.
Logging
Whether core and chip samples have been geologically and geotechnically
logged to a level of detail to support appropriate Mineral Resource estimation,
mining studies and metallurgical studies.
Whether logging is qualitative or quantitative in nature. Core (or costean,
channel, etc) photography.
Drillhole location was logged with co-ordinates using a local grid. Drill
collar locations have been cross-checked with drilling details in tables,
with maps and cross-sections provided within the government compliant
annual report.
The total length and percentage of the relevant intersections logged.
Sub-sampling techniques
and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.
If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled
wet or dry.
No sub-sampling as it was percussion drilling samples. 2m composite
samples were collected and submitted to ALS Townsville for analysis.
For all sample types, the nature, quality and appropriateness of the sample
preparation technique.
Quality control procedures adopted for all sub-sampling stages to maximise
representivity of samples.
Measures taken to ensure that the sampling is representative of the in-situ
material collected, including for instance results for field duplicate/second-half
sampling.
Whether sample sizes are appropriate to the grain size of the material being
sampled.
Quality of assay data and
laboratory tests

The nature, quality and appropriateness of the assaying and laboratory
procedures used and whether the technique is considered partial or total.
For geophysical tools, spectrometers, handheld XRF instruments, etc, the
The nature, quality and appropriateness of the samples and the analysis
technique are appropriate for this style of breccia/intrusion style - gold
mineralisation.
parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc.

ABN 35 647 322 790 | Address 945 Wellington Street, West Perth Western Australia 6005

Telephone +61 8 9322 7600 | Email [email protected] | Website www.killi.com.au

Criteria JORC Code explanation JORC Code explanation Commentary
Nature of quality control procedures adopted (eg standards, blanks, duplicates,
external laboratory checks) and whether acceptable levels of accuracy (ie lack
of bias) and precision have been established.
Verification of sampling
and assaying


The verification of significant intersections by either independent or alternative
company personnel.
The use of twinned holes.
Documentation of primary data, data entry procedures, data verification, data
The results quoted have been obtained from Annual tenement mining
reports submitted to the Geological Survey of Queensland. Significant
intercepts include values >2g/t Au.
storage (physical and electronic) protocols.
Discuss any adjustment to assay data.
Location of data points
Accuracy and quality of surveys used to locate drill holes (collar and down-hole
surveys), trenches, mine workings and other locations used in Mineral Resource
estimation.
Specification of the grid system used.
Drill collar locations have been cross-checked with drilling details in
tables, with maps and cross-sections provided within the government
compliant annual report.
Quality and adequacy of topographic control.
Data spacing and
distribution

Data spacing for reporting of Exploration Results.
Whether the data spacing and distribution is sufficient to establish the degree of
geological and grade continuity appropriate for the Mineral Resource and Ore
Results within the annual report are tabulated with specific details as well
as maps and cross-sections to scale show the results which are
annotated.
Reserve estimation procedure(s) and classifications applied.
Whether sample compositing has been applied.
No Mineral resource of ore estimate is quoted or referred to in this
announcement.
No further compositing of assays was applied.
Orientation of data in
relation to geological
structure

Whether the orientation of sampling achieves unbiased sampling of possible
structures and the extent to which this is known, considering the deposit type.
If the relationship between the drilling orientation and the orientation of key
mineralised structures is considered to have introduced a sampling bias, this
The drill holes were vertical, where the majority of gold mineralisation in
the area is flat lying quartz veins. Therefore the drilling orientation and 2m
composite samples downhole is considered appropriate.
should be assessed and reported if material.
Sample security The measures taken to ensure sample security. Samples were delivered directly to ALS Townsville.
Audits or reviews The results of any audits or reviews of sampling techniques and data. No audits or reviews were completed.

Section 2 Reporting of Exploration Results

Criteria JORC Code explanation Commentary
Mineral tenement and land
tenure status
(a) Type, reference name/number, location and ownership including
agreements or material issues with third parties such as joint ventures,
partnerships, overriding royalties, native title interests, historical sites,
The tenements relating to this announcement are held within Access
Australia Mining Pty Ltd, which is a wholly owned subsidiary of Killi
Resources limited.
wilderness or national park and environmental settings. The results in this announcement are on granted Killi Resources tenure.
(b) The security of the tenure held at the time of reporting along with any Tenements EPM 26889, EPM 26890, EPM 26892, EPM 26908 and EPM
known impediments to obtaining a licence to operate in the area. 26909 are all granted.
At this point the company is not aware of any reasons that inhibit the
company to operate on the tenement in the future.

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KILLI Resources Limited | ASX Announcement | www.killi.com.au

Criteria JORC Code explanation JORC Code explanation Commentary
There are no overriding royalties, joint ventures or partnerships over this
ground.
Exploration done
parties
by other (c) Acknowledgment and appraisal of exploration by other parties. Exploration has taken place on the tenements by Central Pacific
Minerals NL, Newmont Australia Limited, Battle Mountain Gold
Company, Mt Leyshon Gold Mines Limited, Mount Isa Mines Pty Ltd,
Normandy, Kings Minerals NL, Carpentaria Gold Pty Ltd, Marathon
Petroleum Australia Limited, and Resolute. Exploration has included the
collection and analysis of stream, soil, and rock chip samples across the
tenements.
Geology (d) Deposit type, geological setting and style of mineralisation. Tenements EPM 26889, EPM 26890, EPM 26892, EPM 26908 and EPM
26909 are prospective for intrusion-related gold deposits hosted
primarily within intrusions or within the immediate wall rock. This
tenement is immediately adjacent the Mt Success and Golden Valley
deposits and along strike from the Ravenswood Gold Mine owned by
EMR Capital.
Drill hole Information (e) A summary of all information material to the understanding of the Historical information completed in Table 1 and within the text of the
exploration results including a tabulation of the following information document.
for all Material drill holes:
(i)
easting and northing of the drill hole collar
(ii)
elevation or RL (Reduced Level – elevation above sea level
in metres) of the drill hole collar
(iii)
dip and azimuth of the hole
(iv)
down hole length and interception depth
(v)
hole length.
(f) 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.
Data aggregation methods In reporting Exploration Results, weighting averaging techniques, maximum No weighting has been applied to the assay results. Reported
and/or minimum grade truncations (eg cutting of high grades) and cut-off downhole results were obtained from historical annual reports
grades are usually Material and should be stated. submitted to the Queensland Government.
Where aggregate intercepts incorporate short lengths of high-grade results and No metal equivalents were reported.
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 between
These relationships are particularly important in the reporting of Exploration Results.

As these are the first drill holes into the area, and there is limited
mineralisation widths and outcrop at surface to delineate a specific lithological orientation, the
intercept lengths specific geometry of the mineralisation is not known, and remains an

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KILLI Resources Limited | ASX Announcement | www.killi.com.au

Criteria JORC Code explanation Commentary
If the geometry of the mineralisation with respect to the drill hole angle is known,
interpretation of the results.
its nature should be reported. Results from the drilling have been reported as downhole length, with
If it is not known and only the down hole lengths are reported, there should be a
the true width not known.
clear statement to this effect (eg ‘down hole length, true width not known’).
Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should
Diagrams have been provided within the text of the announcement
be included for any significant discovery being reported These should include, but
to provide context and location of the drill results in relation to the
not be limited to a plan view of drill hole collar locations and appropriate sectional
tenement boundaries.
views.
Balanced reporting Where comprehensive reporting of all Exploration Results is not practicable,
Historical intercepts reported, were obtained from historical mining
representative reporting of both low and high grades and/or widths should be
annual reports submitted to the Mining Department of Queensland.
practiced to avoid misleading reporting of Exploration Results.
Other substantive exploration
Other exploration data, if meaningful and material, should be reported including

The prospect where the drilling was completed, were the first drill
data (but not limited to): geological observations; geophysical survey results;
holes into the Au-Ag-Cu-Mo surface geochemical anomaly
geochemical survey results; bulk samples – size and method of treatment;
determined during the 2022 field season by Killi Resources.
metallurgical test results; bulk density, groundwater, geotechnical and rock
characteristics; potential deleterious or contaminating substances.
Further work The nature and scale of planned further work (eg tests for lateral extensions or
Killi Resources plans to carry out further exploration work programs on
depth extensions or large-scale step-out drilling). the tenement, including geophysics, and further geochemical and
(g)
Diagrams clearly highlighting the areas of possible extensions, including

drilling programs.
the main geological interpretations and future drilling areas, provided
Diagrams have been completed as in interpretation of the geology
this information is not commercially sensitive_._ intersected and logged downhole.

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KILLI Resources Limited | ASX Announcement | www.killi.com.au