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LATITUDE 66 LIMITED Capital/Financing Update 2021

Feb 23, 2021

65213_rns_2021-02-23_1f115fab-5de7-4d50-8e8f-5a16c3ab41ba.pdf

Capital/Financing Update

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ASX ANNOUNCEMENT – DISCOVEX RESOURCES LIMITED

24 FEBRUARY 2021

NEWINGTON EXPLORATION UPDATE

  • High‐priority gold in soil targets tested by RC drilling

  • Drilling confirms high‐grade mineralisation at the Dawsons Prospect: ‐

  • 4m @ 3.3 g/t Au from 104m (Hole NERC020), mineralisation remains open at depth

  • Maiden drilling at the Hawthorn Prospect intersects BIF hosted Au mineralisation:

  • 16m @ 0.8 g/t Au from 8m (Hole NERC012)

    • Including 4m @ 1.7g/t Au from 16m

    • Mineralisation remains open in all directions

  • DiscovEx earns a 51% interest in five key tenements at the Newington Project, Southern Cross.

Putting the Explore back into Modern Exploration

DiscovEx Resources Limited (ASX:DCX) is pleased to be able to update the market with respect to ongoing exploration at the Company’s Newington Project, located 80km north of Southern Cross.

Reverse circulation drilling results have now been received from four prospect areas including Dawsons, Hawthorn, Hawthorn North and Sweet William. High‐grade mineralisation has been confirmed at Dawsons and thick, shallow mineralisation has been intersected at Hawthorn.

Twenty RC holes were drilled for a total of 1,785m to test beneath targets generated from the Company’s surface geochemical survey completed in mid‐2020 and to complement previous drilling efforts at Dawsons.

Managing Director, Bradley Drabsch commented that:

“Newington continues to provide compelling exploration opportunities for the Company. We remain committed to our strategy of targeting high grade, near surface gold at Newington, with the aim of potentially developing a resource to kick start a revenue stream for DCX. The results we are seeing keep us encouraged that we are on the right track here.”

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NEWINGTON GOLD PROJECT – OVERVIEW

The Newington Gold Project is situated at the northern end of the Southern Cross Belt, 380km east of Perth (Figure 1). The Southern Cross Greenstone Belt is highly prospective, with nearby deposits including Ramelius Resources’ (ASX:RMS) 1.03Moz Edna May Gold Mine, as well as its recently acquired 700Koz Tampia Hill Gold Project and 373Koz Marda Gold Project*.

(*) Resource‐Reserve figures taken from Ramelius Resources (ASX:RMS) “Resources and Reserves Statement 2020”, 28 September2020

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Figure 1: Newington Project location

DRILLING

RC Drilling was completed in mid‐December with twenty holes drilled for a total 1,785m across four prospect areas including Dawsons (three holes for 408m), Hawthorn (four holes for 518m), Hawthorn North (nine holes for 479m) and Sweet William (four holes for 380m). Holes were designed to test beneath soil anomalies as well as the strike extent of previously intersected high‐grade mineralisation at the Dawsons Prospect.

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Figure 2: Newington prospect locations

Dawsons

Strong gold mineralisation was intersected at the Dawsons Prospect. The RC drilling tested the eastern edge of an interpreted high‐grade plunge as well as follow up previous intersections including 4m @ 16.6g/t Au from 83m (CSRC031), 2m @ 17.5g/t Au from 76m (SNWRC010), 2m @ 13.0g/t Au from 146m (SNWRC014) and 1m @ 20.0g/t Au from 105m (CSRC036). All three drillholes completed within this program intersected the mineralised shear, with NERC020 returning significant mineralisation including 4m @ 3.3g/t Au from 104m. Logged geology suggests the mineralisation is hosted within a 2m wide quartz vein and remains open at depth. This result was sampled as a 4m composite with single metre splits of the individual metres to be collected immediately.

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This high‐tenor result, located approximately 11m from a previous drillhole that returned an assay result of 1m @ 0.4g/t Au, emphasises the variability of high‐grade gold orebodies and the associated risk in dismissing low‐tenor intersections within the host structure.

The remaining two holes that were drilled to the east (NERC018 and NERC019), failed to return significant mineralisation however did intersect minor veining within the structure suggesting potential still exists for a repeat high‐grade pod further to the east.

Future works will be concentrated on metallurgical testing of the high‐grade material to determine the amenability to conventional gravity and CIL gold extraction. Samples have been taken from SNWRC010, SNWRC014 and NERC020 to produce a composite for the metallurgical sample.

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Figure 3: Dawsons long‐section (Looking North) showing high‐grade trend of quartz vein hosted mineralisation.

Hawthorn

Drilling at the Hawthorn Prospect was designed to test a large (500m x 200m) surface geochemical anomaly (>30ppb Au – refer DCX announcement “High Grade Rock Chips – Newington”) released on the 5[th] August 2020) and strongly mineralised rock chip samples including 9.7g/t Au, 8.6g/t Au, 4.0g/t Au and 1.9g/t Au. These high‐tenor rock chips were associated with quartz veining within and adjacent to a structurally deformed banded iron formation. Four RC holes for 518m were completed with shallow mineralisation intersected in NERC012 of 16m @ 0.8g/t Au from 8m including 4m @ 1.7g/t Au from 16m.

Follow‐up work will be centred on the analysis of all information returned from the drilling including the XRF geochemical dataset. Investigation into the northern extension of the shallow mineralisation will be completed with follow‐up mapping initially prior to future drilling.

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Figure 4: Plan view of Hawthorn Prospect and completed drill collar positions.

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Figure 5: Cross‐section (Looking north) of the Hawthorn Prospect (6,622,200mN)

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Fleet Street Holdings Earn‐in

Following the completion of drilling at the Hawthorn and Hawthorn North Prospects and satisfaction of several requirements related to the Earn‐in obligations with Fleet Street Holdings Pty Ltd and Bildex Holdings Pty Ltd, DiscovEx has now earnt a 51% interest in tenements E77/2326, E77/2558, E77/2200, P77/4397 and E77/2263, shown in Figure 6. DiscovEx has the right to earn a further 29% of the above‐ mentioned tenements by spending a further $350,000 on exploration activities (inclusive of 1,003m of drilling).

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Figure 6: Newington Project Tenement outline and effected tenements subject to the earn‐in.

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Competent Person’s Statement

The information in this report that relates to Exploration Results is based on and fairly represents information and supporting documentation compiled by Mr Toby Wellman who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient experience 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 (the “JORC Code”). Mr Wellman is the Executive Technical Director and Exploration Manager of DiscovEx Resources Limited and consents to the inclusion in the report of the Exploration Results in the form and context in which they appear.

Authorised for release by and investor enquiries to:

Mr Bradley Drabsch Managing Director T: 08 9380 9440

Table 1: Significant drill intersections (>0.1g/t Au) from drilling completed at the Newington Project

Hole_ID Northing Easting mRL Dip Azimuth Max Depth mFrom mTo Intersection Prospect
NERC001 6622949 681450 400 ‐60 270 53

NSA
NERC002 6622948 681497 400
400
400
400
400
400
‐60
‐60
‐60
‐60
‐60
‐60
270
270
270
270
270
270
59

NSA


NSA


NSA


NSA


NSA


NSA
Hawthorn
North
NERC003 6622948 681547 47
NERC004 6622948 681597 47
NERC005 6622947 681648 59
NERC006 6622947 681700 52
NERC007 6622746 681550 52
NERC008 6622750 681601 400
400
400
‐60
‐60
‐60
270
270
270
52

NSA


NSA
24
28
[email protected]/t Au
52
64
[email protected]/t Au


NSA
8
24
[email protected]/t Au
NERC009 6622754 681647 58
NERC010 6622056 682138 82 24 28 Hawthorn
" " " " and "
NERC011 6622054 682181 400
400
‐60
270
‐60
270
118
NERC012 6622204 682181 170
" " " " including
and
and
‐60
270
‐60
270
‐60
270
" 16
20
[email protected]/t Au
76
80
[email protected]/t Au
92
96
[email protected]/t Au
52
60
[email protected]/t Au


NSA


NSA
" " " " "
" " " " "
NERC013 6622200 682228 400
400
400
148
NERC014 6626700 681471 80 Newfield
NERC015 6626701 681509 110
NERC016 6626602 681498 400
400
400
400
400
80 North
NERC017 6626600 681538 110
NERC018 6625370 681164 110 Dawsons
NERC019 6625332 681182 148
NERC020 6625336 681141 150
"
"
"
"
Coordinate system: MGA94_50
Significant intervals above 0.1g/t Au with maximum 2 samples of internal dilution

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APPENDIX 1 – JORC CODE 2012 EDITION TABLE 1

Criteria
JORC Code explanation
Criteria
JORC Code explanation
Section 1 ‐ Sampling Techniques and Data
Nature and quality of sampling (e.g. 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.
2kg ‐ 3kg samples collected and laid out on 1m
intervals. Samples taken via a scoop on 4m
composite intervals. Cyclone/sampling equipment
cleaned regularly during drilling.
Mineralisation determined qualitatively through
rock type, sulphide and quartz content and

intensity of alteration.
Mineralisation determined quantitatively via assay
(aqua‐regia digest).
Include reference to measures taken to ensure sample
representivity and the appropriate calibration of any
measurement tools or systems used.
The sample from the cyclone was collected in
buckets and dumped into neat piles on the ground.
A scoop was used to sample individual piles for the
Sampling
techniques
4m composite. Care was taken to sample to
industry standards.
Single metre samples were split via a cone splitter
into pre‐numbered calico bags and placed next to
sample piles.
Aspects of the determination of mineralisation that
are Material to the Public Report.
The sample from the cyclone was collected in
buckets and dumped into neat piles on the ground.
A d t l idiidl il f th
In cases where ‘industry standard’ work has been
done this would be relatively simple (eg ‘reverse
circulation drilling was used to obtain 1m samples
from which 3kg was pulverised to produce a 30g
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
scoop was use o sampe nvua pes or e
4m composite. Care was taken to sample to
industry standards.
Single metre samples were split via a cone splitter
into pre‐numbered calico bags and placed next to
sample piles.
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 so, by what
_method, etc). _
Strike Drilling was used. The rig consisted of a T450
Schramm truck mounted AC/RC rig with 1000cfm x
430psi on board compressor.
Drill sample
recovery
Method of recording and assessing core and chip
sample recoveries and results assessed.
During the RC sample collection process, recoveries
recorded at the time of logging and stored in
company database.
Measures taken to maximise sample recovery and
ensure representative nature of the samples.
Cyclone is cleaned at the end of each hole to ensure
minimal sample contamination.
The majority of samples were of good quality with
ground water only intersected at the Sweet William
Prospect.

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From the collection of recovery data, no identifiable
bias exists.
From the collection of recovery data, no identifiable
bias exists.
Whether a relationship exists between sample
recovery and grade and whether sample bias may
have occurred due to preferential loss/gain of
From the collection of recovery data, no identifiable
bias exists.
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.
Holes logged to a level of detail to support future
mineral resource estimation: lithology; alteration;
mineralization; structural. Qualitative: lithology,
alteration, foliation. Quantitative: vein percentage;
mineralization (sulphide) percentage.
Whether logging is qualitative or quantitative in
t C ( t hl t) hth
Data on rock type, deformation, colour, structure,
ltti ii iliti d idti
naure. ore or cosean, canne, ec poograpy. aeraon, venng, mnerasaon an oxaon
state were recorded. Logging is both qualitative and
quantitative or semiquantitative in nature.
The total length and percentage of the relevant
intersections logged.
All holes logged for the entire length of hole.
If core, whether cut or sawn and whether quarter, half
or all core taken.
No core taken.
If non‐core whether riffled tube samled rotar For AC drillin whole samles for each metre were
, , p, y
split, etc and whether sampled wet or dry.
g, p
collected and placed onto the ground in rows of 20.
Composite sampling was completed with a scoop.
All samples were dry.
For all sample types, the nature, quality and
appropriateness
of
the
sample
preparation
technique.
2‐3kgs of sample was submitted to Minanalytical in
Kalgoorlie for sample prep, then transported to
Canning Vale for analysis.
Samples were oven dried at 100 degrees Celsius
Sub‐sampling
techniques and
sample
preparation
then pulverized in LM5 mills to 85% passing
75micron.
Quality control procedures adopted for all sub‐
sampling stages to maximise representivity of
samples.
The QC procedure adopted through the process
includes:

Field duplicates were collected at a rate of
1:50, these were collected during AC drilling at
the same time as the primary sample.

OREAS certified material (CRM) was inserted

at a rate of 1:50, the grade ranges of the CRM’s
were selected based ongradepopulations.
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. _
Field duplicates were collected at a rate of 1:50,
these were collected during RC drilling at the same
time as the primary sample.
Whether sample sizes are appropriate to the grain
size of the material being sampled.
The sample sizes are believed to be appropriate to
correctly represent the style and thickness of gold
mineralisation in the Southern Cross region.
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.
Samples were submitted to Minanalytical in
Kalgoorlie for sample prep, then transported to
Canning Vale for analysis. All samples were
analysed by a 25g aqua regia. The use of aqua regia
for low level gold is considered suitable. Aqua regia
is a partial digest. For all samples assayed above
4g/t Au, a 50g Fire Assay was completed. Fire assay
are classified as total assas
y.

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No geophysical tools were used to determine any
element concentrations used in the reported
results.
No geophysical tools were used to determine any
element concentrations used in the reported
results.
For geophysical tools, spectrometers, handheld XRF
instruments, etc, the parameters used in determining
the analysis including instrument make and model,
No geophysical tools were used to determine any
element concentrations used in the reported
results.
reading times, calibration factors applied and their
derivation, etc.
Nature of quality control procedures adopted (eg
standards, blanks, duplicates, external laboratory
checks) and whether acceptable levels of accuracy (ie
lack of bias) andprecision have been established.
Field duplicates are collected at a rate of 1:50 with
CRM’s inserted at a rate of 1:50 also. The grade
ranges of the CRM’s were selected based on grade
populations.
The verification of significant intersections by either
independent or alternative company personnel.
Drilling results are cross checked by company
geologists
Verification of
sampling and
assaying
The use of twinned holes. None undertaken for the recent or historical
drilling.
Documentation of primary data, data entry
procedures, data verification, data storage (physical
and electronic) protocols.
Data is recorded digitally at the project within
standard industry software with assay results
received digitally also.
All data is stored within a suitable database.
Discuss any adjustment to assay data. None undertaken for all drilling 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.
Drill hole location is recorded with a handheld
Garmin GPS (+/‐ 3m).)
Specification of the grid system used. MGA94 zone 50.
Quality and adequacy of topographic control. No information is available on the quality or
adequacyof topographic control.
Data spacing for reporting of Exploration Results. Refer to figures within text for data spacing.
Data spacing
and distribution
Whether the data spacing and distribution is
sufficient to establish the degree of geological and
grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s)
and classifications applied.
AC drilling is considered first‐pass in nature, with
data spacing not relevant to a Mineral Resource
Estimate.
Whether sample compositing has been applied. Samples taken on a 4m composite basis. Smaller
composites taken at the end of hole where
remainingsamples are less than 4m.
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.
Drill lines are orientated perpendicular to the
interpreted strike of the mineralised structure
although this is an initial interpretation based on
magnetics data.
If the relationship between the drilling orientation
and the orientation of key mineralised structures is
considered to have introduced a sampling bias, this
should be assessed and reported if material.
No bias is currently known.
Sample security The measures taken to ensure sample security. Calico samples are sealed into poly weave bags and
cable tied. These are then transported to the
laboratory in Kalgoorlie by company staff.
Audits or
reviews
The results of any audits or reviews of sampling
techniques and data.
Drilling results are cross checked by company
geologists and validated in three‐dimension
through Micromine software.
APPENDIX 1 – JORC CODE 2012 EDITION TABLE 2
Sample security cable tied. These are then transported to the
laboratory in Kalgoorlie by company staff.
The results of any audits or reviews of sampling Drilling results are cross checked by company
Audits or techniques and data. geologists and validated in three‐dimension
reviews through Micromine software.
APPENDIX 1 – JORC CODE 2012 EDITION TABLE 2

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Criteria
JORC Code explanation
Section 2 – Reporting of Exploration Results
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, wilderness or national park and environmental
settings.
The Newfield Project comprises 11 Tenements with
various ownership scenarios. These are detailed as
follows:
DiscovEx Resources Limited holds a 100% interest in
tenements E77/2602, 2604 and 2605.
The current registered holder of tenements
M77/422 and M77/846 is Newfield Resources Ltd.
The current registered holder of tenement
E77/2309 is Omni Projects Pty Ltd a fully owned
subsidiary of Gateway Mining Ltd. This tenement is
currently subject to the Farm‐In and Option
Agreements signed with DiscovEx Resources
Limited.
The current registered holders of tenements
E77/2200, P77/4397, E77/2326, E77/2558 and
E77/2263 are Fleet Street Pty Ltd and Bildex
Holdins Pt Ltd These tenements are currentl
Mineral
tenement and
land tenure
status
g y . y
subject to a Farm‐In Agreement signed with
DiscovEx Resources Limited.
DiscovEx Resources Limited has the right to earn up
to 80% in the Project, following which one or more
of the Vendors can elect to contribute to
development costs or convert their interest into a
gold royalty up to 1.5% (dependant on total
holding) and a non‐gold commodity royalty up to
2% (dependant on total holding).
On M77/422 and M77/846:

a $10/oz royalty is payable to Carterton
Holdings Pty Ltd, and

a 2% royalty on gross revenue is payable to the
Clippo Syndicate.
The project is located on unallocated crown land.
No native title exists over M77/422, M77/846 or
E77/2309.
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.
The tenements are in good standing and no known
impediments exist.
Exploration
done by other
parties
Acknowledgment and appraisal of exploration by
other parties.
Previous work was carried out by a number of
exploration companies including Miralga Mining
N.L. (1987‐1990), Kia Pacific Ltd (1987‐1991), Anglo‐
Australian
Resources
N.L.
(1988‐1989),
Frederickson Syndicate (1989‐1990), Burmine
Operations Pty Ltd (1990), Sons of Gwalia (1993‐
1999), Gemini Pty Ltd (1994‐1995), Mining
Tributors (Cassidy and E. Dunmill), H Tew (mid‐
1980’s‐2001), Newfield Central Pty Ltd (2001 ‐

2018), Fleet Street Holdings (2003‐2013) and
Western Areas NL(2009‐2013)

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Known deposits are within steeply dipping N‐S or E‐
W striking quartz vein hosted deposits within
amphibolite altered mafic rocks. Mineralisation
Known deposits are within steeply dipping N‐S or E‐
W striking quartz vein hosted deposits within
amphibolite altered mafic rocks. Mineralisation
Geolog Deposit type, geological setting and style of
mineralisation.
Known deposits are within steeply dipping N‐S or E‐
W striking quartz vein hosted deposits within
amphibolite altered mafic rocks. Mineralisation
y varies from approximately 1m to 5m true thickness
within an alteration zone generally considered to be
typical of vein stylegold mineralisation.
A summary of all information material to the
understanding of the exploration results including a
tabulation of the following information for all
Material drill holes:
Refer to Table 1 and Figures 2‐5 within this
Announcement.
Easting and northing of the drill hole collar Refer to Table 1 and Figures 2‐5 within this
At
Drill hole
Information
nnouncemen.
Elevation or RL (Reduced Level – elevation above sea
level in metres) of the drill hole collar
Refer to Table 1 and Figures 2‐5 within this
Announcement.
Dip and azimuth of the hole Refer to Table 1 and Figures 2‐5 within this
Announcement.
Down hole length and interception depth Refer to Table 1 and Figures 2‐5 within this
Announcement.
Hole length. Refer to Table 1 and Figures 2‐5 within this
Announcement.
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.
All drill hole details shown in Table 1
In reporting Exploration Results, weighting averaging
techniques, maximum and/or minimum grade
truncations (eg cutting of high grades) and cut‐off
Significant intervals reported were taken above
0.1g/t Au with a maximum 2 samples of internal
dilution.
Data
aggregation
methods

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 high grades in the exploration results have not
been cut. Weighted averaging has been used when
calculating intervals of differing sample lengths.
Th ti d ti tl N tl ilt l d f ti
e assumpons use for any reporng of mea
equivalent values should be clearly stated.
o mea equvaen vaues are use or reporng
exploration results.
Relationship
between
mineralisation
widths and
These relationships are particularly important in the
reporting of Exploration Results.
No metal equivalent values are used for reporting
exploration results.
If the geometry of the mineralisation with respect to
the drill hole angle is known, its nature should be
reported.
The geometry of the mineralisation is interpreted as
striking north/south at Hawthorn, Hawthorn and
Sweet William with a vertical dip. The geometry of
the mineralisation is interpreted as striking
intercept
lengths
east/west at Dawsons with a dip of ~68oto the
south
If it is not known and only the down hole lengths are
reported, there should be a clear statement to this
_effect(eg ‘down hole length, true width not known’). _
Intersections stated are all down‐hole length.
Diagrams Appropriate maps and sections (with scales) and
tabulations of intercepts should be included for any
significant discovery being reported. These should
include but not be limited to a lan view of drill hole
Refer to figures 2– 5 within this Announcement.
, p
collar locations and appropriate sectional views.

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All drill results (both high and/or low) have been
used when included within this announcement.
All drill results (both high and/or low) have been
used when included within this announcement.
Balanced
reporting
Where comprehensive reporting of all Exploration
Results is not practicable, representative reporting of
both low and high grades and/or widths should be
All drill results (both high and/or low) have been
used when included within this announcement.
practiced to avoid misleading reporting of Exploration
Results.
Other
substantive
exploration
data
Other exploration data, if meaningful and material,
should be reported including (but not limited to):
geological observations; geophysical survey results;
geochemical survey results; bulk samples – size and
method of treatment; metallurgical test results; bulk
density,
groundwater,
geotechnical
and
rock
characteristics
otential
deleterious
or
The announcement was compiled through the use
of publicly available data including aeromagnetics
and historic drill information.
;
p


contaminating substances.
Further work The nature and scale of planned further work (eg tests
for lateral extensions or depth extensions or large‐
scale step‐out drilling).
Metallurgical testwork at Dawsons will be
completed to determine gold recoveries
Diagrams clearly highlighting the areas of possible
extensions,
including
the
main
geological
interpretations and future drilling areas, provided this
Refer to figures 3‐5 within this Announcement.
information is not commercially sensitive.