PTR MINERALS LTD — Regulatory Filings 2021

Jul 26, 2021

ACN 106 806 884 ASX: PTR

www.petratherm.com.au admin@petratherm.com.au

ASX ANNOUNCEMENT 27 July 2021

SUMMARY

• Drilling of multiple target sites has defined broad zones displaying IOCG style hydrothermal alteration however no significant mineralisation has been intersected to date.
• Felsic intrusive dykes encountered at Area 13 contain high concentrations of tungsten and offer an additional exploration target to follow up.
• IP Geophysics may be trialled as a direct targeting tool over the IOCG alteration areas and other early-stage targets to search for any potential sulphide accumulations associated with these large alteration systems.

Mabel Creek Project – Results of Drilling

Petratherm Limited (ASX: PTR) has received geochemical assays for 2 of the 5 holes drilled and completed geological and detailed XRF geochemical analysis of all the holes from its recent Mabel Creek Drilling Operations, 50 kilometres northeast of Coober Pedy in South Australia. The Mabel Creek Ridge is considered prospective for Iron-Oxide Copper-Gold (IOCG) mineralised systems and related magnetite skarn copper and high value rare-earths.

Previous limited drilling at Mabel Creek by Petratherm in March 2020 encountered evidence for IOCG alteration at the Company's Area 5 gravity target (refer to PTR ASX release 30/07/20). This recent second round of drilling has successfully tested 5 gravity/magnetic anomalies, each with a single hole to targeted depths. Petratherm's drilling program represents a frontier exploration drill reconnaissance of anomalous gravity and magnetic target areas in a region which has been largely un-explored. All holes were drilled using the rotary mud method through the softer younger cover sediment to the top of crystalline basement and then diamond core drilled to the end of hole. Table 1B summarises hole completion details for each anomaly tested.

Area 5 Anomaly

Two geophysical targets were drilled at the Area 5 Prospect (Figures 2 & 4). Drill hole MCA5-04 tested a magnetic anomaly of high intensity, immediately east of the initial MCDA5-01 hole drilled in 2020 (Figure 4). Basement rock was reached at 148 metres and then diamond cored to the end of hole at 379 metres (down hole depth). The cored section comprises altered and highly magnetic porphyritic granitoid which had been intruded by numerous felsic and mafic dykes. The sequence has undergone moderate to intense infiltration by hydrothermal fluid producing IOCG style alteration assemblages most notably of chlorite-epidote with iron-oxide (hematite) dusting/veining and includes wide zones of K-feldspar alteration (Figure 3). The granitoid shows moderate enrichment in light rare-earths, indicative of IOCG alteration, averaging more than 350 ppm throughout the hole however no copper or precious metals of any significance occur with the alteration.

Drill hole MCA5-03 tested a prominent residual gravity high, within the broader 7 milligal Area 5 gravity anomaly, and which also shows a low order magnetic anomaly (Figure 4). This hole reached crystalline basement at 160 metres and was then diamond cored to 397.1 metres (down hole depth). The hole is dominated by mafic gneiss accounting for the gravity anomaly. Weak to moderate alteration (Figure 5) occurs throughout however no metal concentrations of any significance occur.

Area 15 Anomaly

Drill hole MCA15-01 tested a discrete, combined magnetic and gravity, anomaly (Figure 2, and PTR ASX release 3/03/21 for target description) located on the western side of the Project Area. The vertical hole reached crystalline basement at 215 metres and then was diamond core drilled to 402.8 metres (down hole depth). The hole intersected mafic gneiss which accounts for the gravity anomaly and included magnetite rich horizons at deeper levels explaining the magnetic anomaly, but no appreciable alteration or mineralisation was present.

Area 13 Anomaly

Drill hole MCA13-01 tested an overlapping residual magnetic and gravity anomaly within the broader Area 13 gravity high (Figures 2 & 6). The overlying younger cover strata is much deeper on this eastern edge of the Project Area and basement was reached at 325 metres and then diamond cored to the end of hole 449.4 metres down hole. The host rock comprises magnetite rich mafic gneiss, intruded by various mafic and felsic dykes and displaying moderate levels of K-feldspar, chloriteepidote alteration plus minor to moderate magnetite/hematite overprinting with trace disseminations and occasional veinlets (1 mm to 2cm) of chalcopyrite throughout. The maximum 4 metre composite sample returned 0.074% Cu with other anomalous copper levels shown in Table 1A. The hole includes broad zones that are very high in magnetite with iron levels ranging between 10 and 12 % (Table 1A).

High tungsten values were recorded associated with 2 thin cross cutting pegmatitic dykes and results are presented below:

• 4m @ 0.11% WO3 from 357 m
• 4m @ 0.16% WO3 from 429 m

These results indicate the region may also be prospective for tungsten and other related metals such as tin and molybdenum and further geological evaluation will be made.

Drill hole MCA13-02 tested the main residual gravity target at Area 13. The angled hole intersected basement at 368 metres and was then diamond cored to 440 metres (down hole depth). The cored section comprised predominately un-mineralised mafic gneiss accounting for the gravity anomaly but which has undergone only low levels of hydrothermal alteration.

Conclusion

The Company is in the process of undertaking petrological analysis of representative core samples to determine in more detail the geology and alteration encountered to evaluate the prospectivity of the region going forward. In addition, further studies will be undertaken to evaluate the tungsten mineralisation encountered.

At both the Area 5 (refer to PTR ASX release 30/07/20) and Area 13 Prospects drilling to date has identified low levels of copper anomalism occurring in flanking positions on the edges of the main gravity anomaly features. The Company is considering undertaking IP geophysical surveying over these broad and complex gravity anomalies and at other earlier stage gravity anomalies to see if this may be a more effective targeting tool to directly locate any chargeable zones potentially indicating high concentrations of sulphide.

Figure 1 Regional Location Map showing Petratherm's South Australian Project Holdings, with major mines and key prospects in the area overlain on a Regional Aeromagnetic Image

Figure 2 - Total magnetic intensity image of the Eastern Mabel Creek Area, showing drill prospect locations and major NW and NE trending crustal faults that may be important in localising IOCG style mineralisation.

Figure 3 – Hole ID MCDA5-04 – Photo of core tray box 35, showing pervasive Red Rock (silica – hematised K-Feldspar (brick red)) alteration of original porphyritic granite host rock. Matrix of granite is enriched in the light rare earths, cerium, and lanthanum.

Figure 4 – Area 5 Residual Gravity Anomaly Contours overlain on a Vertical Gradient Magnetic Image. Area 5 Drill collars (red dots = current 2021 drilling , yellow dots = 2020 drilling) and drill hole trace shown. Northern residual gravity targets remain untested. The Company is proposing to undertake IP geophysics over these features, to see if any chargeable anomalies may be associated and if so, will warrant drill testing.

Figure 5: Drill hole MCDA5-03 - Altered meta-sedimentary sequence showing chlorite (green) sericite – silica - hematite (red) alteration.

Figure 6 – Area 13 Residual Gravity Anomaly Contours overlain on a Vertical Gradient Magnetic Image. Drill collars (red dots) and drill hole trace shown.

For further information, please contact: Peter Reid Exploration Manager Tel: (08) 8133 5000

This ASX announcement has been approved by Petratherm's Board of Directors and authorised for release by Petratherm's Chairman Derek Carter

Competent Persons Statement: The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by Mr Peter Reid, who is a Competent Person, and a Member of the Australian Institute of Geoscientists. Mr Reid is not aware of any new information or data that materially affects the historical exploration results included in this report. Mr Reid is an employee of Petratherm Ltd. Mr Reid has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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'. Mr Reid consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Hole ID	Prospect	From(metres)	To(metres)	Interval(metres)	Fe (%)	Ce+La(ppm)	Cu (%)	WO3 (%)
MCDA5-04	Area 5	290	309	19	3.7	367	--	--
MCDA5-04	Area 5	327	379.75	52.75	4.5	374	--	--
MCDA13-01	Area 13	333	337	4	9.6	--	0.045	--
MCDA13-01	Area 13	353	355	2	12.6	--	0.074	--
MCDA13-01	Area 13	385	405	20	11.2	--	0.038	--
MCDA13-01	Area 13	357	361	4	4.7	--	--	0.11
MCDA13-01	Area 13	292	296	4	6.5	--	--	0.16

Table 1A: Mabel Creek Project - Drill Intervals with Anomalous Geochemistry.

Table 1B: Mabel Creek Project - Drill Collar locations

Hole ID	Prospect	Target	Easting	Northing	CollarAzimuth(Deg)	CollarDip(Deg)	Elevation(Metres)	Hole Depthto Basement(Metres)	FinalHoleDepth(Metres)
MCA5-03	Area 5	T5-03	519350	6826000	270	80	122	160	397.1
MCA5-04	Area 5	T5-02	517500	6827100	270	80	120	149	379
MCA13-01	Area 13	T13-01	525450	6831500	0	90	117	325.6	449.4
MCA13-02	Area 13	T13-02	525400	6331400	90	60	120	368.3	467.8
MCA15-01	Area 15	T15-01	482600	6840000	0	90	160	215	402.8

Notes for Tables 1A and 1B

• 1. Down hole lengths reported, and the true width of intercepts is not yet known
• 1. Significant results are shown for intercepts
• 1. Coordinates are in GDA 94 Z53

EL 6333 & EL 6405 (Mabel Creek Project) JORC Table 1

Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	Commentary
Samplingtechniques	•Nature and quality of sampling (eg cut channels,random chips, or specific specialised industrystandard measurement tools appropriate to theminerals under investigation, such as down holegamma sondes, or handheld XRF instruments, etc.).These examples should not be taken as limiting thebroad meaning of sampling.•Include reference to measures taken to ensuresample representivity and the appropriate calibrationof any measurement tools or systems used.•Aspects of the determination of mineralisation that areMaterial to the Public Report.•In cases where 'industry standard' work has beendone this would be relatively simple (eg 'reversecirculation drilling was used to obtain 1 m samplesfrom which 3 kg was pulverised to produce a 30 gcharge for fire assay'). In other cases, moreexplanation may be required, such as where there iscoarse Au that has inherent sampling problems.Unusual commodities or mineralisation types (egsubmarine nodules) may warrant disclosure ofdetailed information.	•Sampling was undertakenusing standard industrypractices and standardoperating procedures. Thesections of core selectedfor assaying are markedup, digitally recorded forcutting and sampling at acertified geotechnicallaboratory.•Sampling of drill holesMCA5-04, MCA13-01underwent core cutting aone third sample parallel tothe base of hole orientationline.•Core sections sampledwere based fromgeological logging andNiton XRF analysis whichaided determination ofrepresentative rocksequences and wherealteration was observed.•Core samples submittedcomprised mostly of 4metre intervals with some2 metre compositeintervals submitted.•Individual samplesweighed 4 to 6 kg, thesewere crushed, pulverisedand split to produce a 50gcharge for fire assay forgold and a 25g sample formulti-element (ICP-MS)analysis. Standards andblanks were undertakenduring the batch analysisas per industry bestpractice. The sample sizeis deemed appropriate forthe grain size of thematerial being sampled.
Drillingtechniques	•Drill type (eg core, reverse circulation, open-holehammer, rotary air blast, auger, Bangka, sonic, etc.)and details (eg core diameter, triple or standard tube,depth of diamond tails, face-sampling bit or othertype, whether core is oriented and if so, by whatmethod, etc.).	•Rotary Mud Collar withorientated, HQ diamondcollar set then NQ diamondtail. Down hole surveysapproximately every 50m,using a TruCore UPIXorientation system.

Criteria	JORC Code explanation	Commentary
Drill samplerecovery	•Method of recording and assessing core and chipsample recoveries and results assessed.•Measures taken to maximise sample recovery andensure representative nature of the samples.•Whether a relationship exists between samplerecovery and grade and whether sample bias mayhave occurred due to preferential loss/gain offine/coarse material.	•Core recovery processinvolves comparison ofdrillers recorded depthagainst the length of corerecovered. RockFormations drilled werecompetent and nosignificant core loss wasobserved.
Logging	•Whether core and chip samples have beengeologically and geotechnically logged to a level ofdetail to support appropriate Mineral Resourceestimation, mining studies and metallurgical studies.•Whether logging is qualitative or quantitative innature. Core (or costean, channel, etc.) photography.•The total length and percentage of the relevantintersections logged.	•Core logging is carried outby qualified geologistsusing project specificlogging procedures. Datarecorded includes, but isnot limited to, lithology,structure, recovery,alteration, sulphidemineralology. This issupervised by theexploration managerfamiliar with the geologyand alteration /mineralisation style andnature. Logging is at asufficient level of detail tosupport appropriate mineralresource estimation andmining studies.•Drill logging is bothqualitative by geologicalfeatures and quantitative bygeotechnical parameters innature. Photographs aretaken of all core trays (dryand wet) of core.•All drill intervals are loggedand recorded as standardoperating practice.
Sub	•If core, whether cut or sawn and whether quarter, halfor all core taken.	•Drill core was cut and bothquarter core and one third
samplingtechniquesand samplepreparation	•If non-core, whether riffled, tube sampled, rotary split,etc. and whether sampled wet or dry.•For all sample types, the nature, quality andappropriateness of the sample preparation technique.•Quality control procedures adopted for all subsampling stages to maximise representivity ofsamples.•Measures taken to ensure that the sampling isrepresentative of the in-situ material collected,including for instance results for fieldduplicate/second-half sampling.•Whether sample sizes are appropriate to the grainsize of the material being sampled.	core was collected forsubmission to ALSLaboratory in Adelaide foranalysis. The sample isconsidered representativeand appropriate forexploration stage analysis.•Sampling of widecontinuous sections ofrepresentative core fromeach hole as well as allzones determined to showevidence of alterationunderwent geochemicalanalysis.•Sample preparation isconsidered appropriate andwas undertaken at ALS

Criteria	JORC Code explanation	Commentary
		Laboratories in Adelaide.Using ALS code Pul-23 andCru-21, samples werepulverised and crushed.Samples (ALS code Spl-21)underwent splitting andwere subsequentlyanalysed at ALSLaboratories in Perth. Goldwas analysed by FireAssay (specifically ALScode Au-AA26) using a 50gsample weight. Otherelements (48 in total) Ag,Al, As, Ba, Be, Bi, Ca, Cd,Ce, Co, Cr, Cs, Cu, Fe, Ga,Ge, Hf, In, K, La, Li, Mg,Mn, Mo, Na, Nb, Ni, P, Pb,Rb, Re, S, Sb, Sc, Se, Sn,Sr, Ta, Te, Th, Ti, Tl, U, V,W, Y, Zn, Zr were analysedusing ALS method codeMe-MS61r which involves afour-acid near total digestand an ICP-MS finish usinga 25g nominal sampleweight.•No duplicates weresampled as the sample sizewas considered appropriatefor the early stage ofexploration. Remainingcore was left for subsampling if required and forany later audit/checkingprocess's if required.•Sample size as definedabove is consideredappropriate to the materialsampled.
Quality ofassay dataandlaboratorytests	•The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial or total.•For geophysical tools, spectrometers, handheld XRFinstruments, etc., the parameters used in determiningthe analysis including instrument make and model,reading times, calibrations factors applied and theirderivation, etc.•Nature of quality control procedures adopted (egstandards, blanks, duplicates, external laboratorychecks) and whether acceptable levels of accuracy (ielack of bias) and precision have been established.	•The sampling digestmethods are consideredappropriate and industrystandard. ALS methodsMeMS61r is a 4-aciddigest, which is near totaland Au-AA26 is a fire assaytechnique.•No results from a portableXRF is reported.•QAQC procedures includerepresentative standards,blanks and check assayson a routine basis by theLaboratory. Noabnormalities weredetected

Criteria	JORC Code explanation	Commentary
Verificationof samplingandassaying	•The verification of significant intersections by eitherindependent or alternative company personnel.•The use of twinned holes.•Documentation of primary data, data entryprocedures, data verification, data storage (physicaland electronic) protocols.•Discuss any adjustment to assay data.	•Petratherm's geologistshave reviewed the core andhas been verified by thePetratherm's explorationmanager.•No twinned holes•Drilling information ishandwritten then digitallyentered and storedfollowing documented corehandling procedures andback up electronically.•No adjustment has beenmade to the primary assaydata.
Location ofdata points	•Accuracy and quality of surveys used to locate drillholes (collar and down-hole surveys), trenches, mineworkings and other locations used in MineralResource estimation.•Specification of the grid system used.•Quality and adequacy of topographic control.	•All collar locations are inUTM grid (GDA94 Z53)and have been measuredby hand-held GPS with alateral accuracy of ±4metres and a verticalaccuracy ±5m.
Dataspacing anddistribution	•Data spacing for reporting of Exploration Results.•Whether the data spacing, and distribution is sufficientto establish the degree of geological and gradecontinuity appropriate for the Mineral Resource andOre Reserve estimation procedure(s) andclassifications applied.•Whether sample compositing has been applied.	•Only single drill holes arereported testing differenttargets so data spacing isnot applicable.•Data spacing is insufficientto establish the degree ofgeological and gradecontinuity required for aMineral Resourceestimation.•No sample compositinghas been applied.
Orientationof data inrelation togeologicalstructure	•Whether the orientation of sampling achievesunbiased sampling of possible structures and theextent to which this is known, considering the deposittype.•If the relationship between the drilling orientation andthe orientation of key mineralised structures isconsidered to have introduced a sampling bias, thisshould be assessed and reported if material.	•The relationship betweenthe drilling orientation andthe orientation of anypotential mineralisedstructures is unknown.
Samplesecurity	•The measures taken to ensure sample security.	•A secure custody protocolwas established from thefield to delivery at theLaboratory. The core wasbeen transported to asecure third-party facilityfor detailed logging andsampling. Petrathermgeologists supervised thecutting and samplingprogram to ensure samplesecurity.

Criteria	JORC Code explanation	Commentary
Audits orreviews	•The results of any audits or reviews of samplingtechniques and data.	•No review has beenundertaken at this time.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary
Mineraltenementand landtenurestatus	•Type, reference name/number, location andownership including agreements or material issueswith third parties such as joint ventures, partnerships,overriding royalties, native title interests, historicalsites, wilderness or national park and environmentalsettings.•The security of the tenure held at the time of reportingalong with any known impediments to obtaining alicence to operate in the area.	•EL 6333 was granted toPetratherm (100%) on the29/03/2019.•EL6405 was granted toPetratherm (100%) on the12/09/2019.•EL 6333 and EL6405 arelocated approximately50km northeast of CooberPedy overlapping MountBarry, Nilpinna and AnnaCreek Pastoral Stations.•The southern half of thetenement overlaps theWoomera Prohibited Area(Green Zone).•Native Title Claims:SCD2012/002 Arabana &SCD2011/001 AntakirinjaMatu-Yankunytjatjara.•The tenement is in goodstanding and no knownimpediments exist.
Explorationdone byother parties	•Acknowledgment and appraisal of exploration byother parties.	Previous exploration work•includes;Airborne Geophysics:Magnetics, Radiometricsand MCR.Ground Geophysics:Magnetics and Gravity.Exploration Drilling: 2Rotary, 2 RotaryPercussion, 5 ReverseCirculation.
Geology	•Deposit type, geological setting and style ofmineralisation.	•Petratherm is primarilyexploring for Fe-OxideCopper-Gold mineralisation(e.g. Olympic Dam-style)within the Peake & DenisonDomain of the GawlerCraton, South Australia.
Drill holeInformation	•A summary of all information material to theunderstanding of the exploration results including atabulation of the following information for all Materialdrill holes:easting and northing of the drill hole collaroelevation or RL (Reduced Level – elevation aboveosea level in metres) of the drill hole collardip and azimuth of the holeo	•Summary table of drill holedetails included inAppendix 1.•True widths of interceptsreported is not yet known.

Criteria	JORC Code explanation	Commentary
	down hole length and interception depthohole length.o•If the exclusion of this information is justified on thebasis that the information is not Material and thisexclusion does not detract from the understanding ofthe report, the Competent Person should clearlyexplain why this is the case.
Dataaggregationmethods	•In reporting Exploration Results, weighting averagingtechniques, maximum and/or minimum gradetruncations (eg cutting of high grades) and cut-offgrades are usually Material and should be stated.•Where aggregate intercepts incorporate short lengthsof high-grade results and longer lengths of low-graderesults, the procedure used for such aggregationshould be stated and some typical examples of suchaggregations should be shown in detail.•The assumptions used for any reporting of metalequivalent values should be clearly stated.	•Sample length weightedaveraging was used tocalculate the aggregateintervals reported.•Sample results reportedrepresent 4 metrecomposite intervals.•No mineralised grades ofsignificance have beenreported, only evidence ofalteration.•No metal equivalents havebeen used.
Relationshipbetweenmineralisation widthsandinterceptlengths	•These relationships are particularly important in thereporting of Exploration Results.•If the geometry of the mineralisation with respect tothe drill hole angle is known, its nature should bereported.•If it is not known and only the down hole lengths arereported, there should be a clear statement to thiseffect (eg 'down hole length, true width not known').	•Down hole length hasbeen reported, as truewidth is not known, asinsufficient work has beenundertaken to understandthe true width of intervals.•"Down hole length, truewidth not known" is statedin the notes to Table 1A.
Diagrams	•Appropriate maps and sections (with scales) andtabulations of intercepts should be included for anysignificant discovery being reported These shouldinclude, but not be limited to a plan view of drill holecollar locations and appropriate sectional views.	•Plan view of drill collarlocations has been shownin the body of this report.•No section views havebeen provided as nosignificant mineralisationwas intersected.•Insufficient drilling hasbeen undertaken to beable to provide geologicalsections.
Balancedreporting	•Where comprehensive reporting of all ExplorationResults is not practicable, representative reporting ofboth low and high grades and/or widths should bepracticed to avoid misleading reporting of ExplorationResults.	•The reporting isconsidered balanced. Thisis the first announcementby the Company of drillingexploration results testingnew targets.•Comprehensive reportingof all historical explorationresults has occurred whenappropriate.
Othersubstantiveexplorationdata	•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 andmethod of treatment; metallurgical test results; bulkdensity, groundwater, geotechnical and rockcharacteristics; potential deleterious or contaminating	•Regional and infill groundgravity surveying wasconducted over EL 6333and EL6405. This workdefined several gravityanomalies which formedthe basis of initial drill

Criteria	JORC Code explanation	Commentary
	substances.	targeting.•Results of gravitysurveying and defineddrilled targets arecontained in PTR ASXreleases dated14/08/2019, 15/10/2019 &30/01/2020
Furtherwork	•The nature and scale of planned further work (egtests for lateral extensions or depth extensions orlarge-scale step-out drilling).•Diagrams clearly highlighting the areas of possibleextensions, including the main geologicalinterpretations and future drilling areas, provided thisinformation is not commercially sensitive.	•A range of explorationtechniques are beingconsidered to progressexploration includinggeophysical surveying toaid drill targeting andfurther drilling.