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REDSTONE RESOURCES LIMITED Regulatory Filings 2017

Nov 26, 2017

65676_rns_2017-11-26_bdd86242-e9dc-457c-9041-4907b3c790b1.pdf

Regulatory Filings

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27 November 2017

The Manager Company Announcements Office Australian Stock Exchange Limited Level 4. Exchange Centre 20 Bridge Street SYDNEY NSW 2000

Electronic Lodgement

All EM Targets Upgraded following Confirmation of Sulphides at EM1A

Redstone Resources Limited (ASX: RDS) ("Redstone" or "the Company") is pleased to announce that the geochemical analysis of composited RC drill samples from the drilling of EM1A electromagnetic anomaly (EM1A) has confirmed the intersection of a large body of sulphide mineralisation (predominantly pyrite), on Redstone's 100% owned West Musgrave Project (the "Project") in the West Musgrave region of Western Australia.

The confirmation of sulphides intersected from drilling at EM1A (Figure 1), combined with the continued expansion of high grade copper mineralisation at the Tollu Copper Project ("Tollu"), has upgraded all 10 other EM anomalies identified on the Project as immediate drill targets pending further geological interpretation (Figure 2). Further examination and analytical work is required to ascertain the significance of the trace element geochemistry for the next phase of exploration. Redstone expects this work to be completed by the first quarter of 2018. Planning for the next phase of exploration is now underway.

Highlights:

  • $\bullet$ Geochemical analysis of composited RC drill samples from recent drilling has confirmed the intersection of a large body of sulphide mineralisation (predominantly pyrite) at EM1A, one of 11 electromagnetic (VTEMmax) anomalies identified by a recent airborne EM survey;
  • The body of sulphides is at least 100m thick and 400m in strike length (ASX release 9 October $\bullet$ 2017), with concentrations of sulphur (S) as high as 4.0% over 5m, and it remains open to the north, east and west;
  • The geological setting revealed by the drilling introduces additional base metal and/or gold targets not previously considered by Redstone on their Project.

  • In combination with the high grade Tollu Copper Project, with Cu grades as high as 11.9% (over 1m) (ASX release 31 October 2017) and an exploration target of up to 626,000 tonnes of contained copper (ASX release 15 June 2016), the large body of sulphides intersected at EM1A confirms the potential for Redstone's Project to contain large mineralising systems. A conceptual exploration target has been estimated for the Tollu Project of 31m to 47m tonnes of mineralisation at a conceptual grade range of 0.8% to 1.3% Cu, containing 259,000 to 626,000 tonnes of Copper. The potential quantity and grade of the target is conceptual in nature. It is important to note that there has been insufficient exploration to estimate a Mineral Resource for the target and it is uncertain if further exploration will result in the estimation a Mineral Resource for the target;
  • $\bullet$ The confirmation of sulphide mineralisation at EM1A has upgraded all 10 other EM anomalies identified on the Project as immediate drill targets pending further geological interpretation; and
  • More detailed geochemical and mineralogical analysis is underway to further assess the $\bullet$ significance of the EM1A sulphide body in terms of its spatial relevance to a potential economic mineral system.

The geochemical assay results from the 5m composite sampling of Redstone's recent drilling of EM1A have been returned. The results confirm that the 5 hole reverse circulation drilling program (Figure 1) has intersected an extensive occurrence of disseminated sulphide mineralisation (predominantly pyrite) of at least 100m thick and over 400m in strike length and remains open to the north, east and west (Figure 2). The geochemistry also confirms the geological interpretation of a pile of alternating mafic and felsic volcanic rock with occasional feldspar porphyry intercalated with layers of volcaniclastic breccia of mixed mafic and felsic clasts (Figure 1). The sulphides occur as disseminations in breccia matrix, as stringer veinlets and as minor stockwork in the zones of highest sulphide concentration (ASX release 9 October $2017$ ).

Given the geology identified by the recent drilling of EM1A can be extended across most of Redstone's Project area, the intersection of sulphides at EM1A combined with the high-grade copper vein mineralisation that continues at Tollu (ASX release 31 October 2017) opens up the potential for Redstone's entire Project to host large economic mineralisation systems.

The Tollu Copper Project, located just 3km to the south east of EM1A, is a high-grade copper vein system associated with a deep-seated north-south oriented regional structure that crosses the entirety of Redstone's Project. The copper mineralisation is focused within large quartz veins associated with the main structure and has been intersected from the surface to over 360m deep (true depth), and remains open at depth (TC80 ASX release 4 April 2012 and JORC Table 1 15 June 2016). Grades as high as 14m at 3.25% Cu from 27m downhole (including 1m at 11.9% Cu at 31m) have been intersected and only recently the mineralisation has been significantly extended (ASX release 31 October 2017). This demonstrates the potential to define additional copper lodes at Tollu; the exploration target at Tollu is up to 626,000 tonnes of contained Cu.

Anomalous Pb-Zn-Ag-Au values intersected at Tollu in the most recent drilling highlights the potential for the copper veins at Tollu to have a regional significance for exploration on Redstone's Project. Given Tollu is proof that mineralising fluids have been associated with the regional structures within the Project, combined with the successful identification of sulphides by the recent EM survey, all 10 other EM anomalies have been upgraded to immediate drill targets pending further geological assessment.

Figure 1 - EM1A Drill Hole Locations and Cross-sections

Five RC holes were drilled into the EM1A anomaly for 1,143m. The EM1A anomaly was defined by an isolated late time electromagnetic anomaly and was modelled as a 25° north dipping plate with a depth extent of 145m and strike extent of 685m (refer to ASX release of 2 August 2017 for further information and Table 1).

Figure 2 - - Location of EM anomalies in relation to the Tollu structural corridor. Tenement E69/2450 airborne magnetic image (grey) with late time Z component channel 48 (10.667 msec after turn off) as the colour image.

Competent Persons Statement

The information in this document that relates to exploration results was authorised by Dr Greg Shirtliff, who is employed as a Consultant to the company through Zephyr Professional Pty Ltd. The information in this report that relates to Geophysical Exploration Results is based on information compiled by Mr Barry Bourne, who is also employed as a Consultant to the Company through geophysical consultancy Terra Resources Pty Ltd. Mr Bourne is a fellow of the Australian Institute of Geoscientists and a member of the Australian Society of Exploration Geophysicists and Dr Shirtliff is a Member of the Australian Institute of Mining and Metallurgy. Both Mr Bourne and Dr Shirtliff have sufficient experience of relevance to the tasks with which they were employed to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Both Mr Bourne and Dr Shirtliff consent to the inclusion in the report of matters based on information in the form and context in which it appears.

JORC Code, 2012 Edition – Table 1 report Tollu Project

Section 1 Sampling Techniques & Data

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

Criiater CCoioJORdelantexpan Cotammenry
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Criiater CCoJORdelaniotexpan Cotammenry
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Criiater JORCCodelaniotexpan Cotammenry
Loionftcaodaintatspo Ac&lif sdlocdrillholes(llar&tytotecuracyquaourves useacoydo-hle),heineking&helociondtrettwnosurveysncs,mworsoras useinMinelReimionttrasourceesaSpificaionfheid sd.tttemecogrysuseQuli&defhicl.tytoptroaaquacyoograpcon AlldrillholellarfedinhisASXleahabetcosrerencereseveenGSdfoinghing&levioningRTKPttttesurveyer easnoreausansysm,hich wleflibrfohoiordingdattote1.5totaascaarurs prrecorsurveywGSfohjlocionThedinghePitttottr eacproecaaccuracyaccorundimlyfoll rding(h,hdte10cttaverageapproxamr aecorsnorsoanulevion).DallecdinMGA94Zo2&AHD.ttate5easwas cone
Daingtaspac&disibuiontrt DaingforingfExlorionReltattts.spacreporopasuWhehehedaing&disibuionisfficienblishhetttatrtttotatrspacsuesdef glogical&deinuiiaforheMinelttytetgree oeograconapproprraRe&OrReimiondu()&clasificaiontttsourceeserve esaproceressslied.appWheheleiinghabelied.ttr sampcompossenapp Drillinghabefolorionly,ingiesbettwtatssenr expaonspacvareenrgeATEMAheingiesbe(E-W),(N-S)d1200m50mttwspacareenanvhefinalholedrilleddirelyhefirsbuical(fehetttt,t vttotwascovererrerSfo)bleinheAXleallociontattutreser acaas
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Section 2 Reporting of Exploration Results

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

Criiater JORCCodelaniotexpan Cotammenry
Minelra&lantentemendtenuretatuss Tyfer/nbelocion&hipincludingtpe,reencenameumr,aownersialissihhird piesh ajintsterttttagreemenormaues warsucsohipidingliesiveileinturtnettttterts,venesparrss,overrroyanaes,,hisical siildeionl pk&irol singtortesttattrness or naaarennmenes.wv,Theifheheld aheimf ringlonih atyttentttttsecurouree oeporagwnyknimdimbiningliceinhetstotatotetownpeenoanceoperaarea. /TheEM1AdTollujlocdihinE692450tatttetrgeanproecareaw(WAulia).ThislorionliceisheldbyRedstetrattoesrnsexpanseneResources.Theind sding&knimdimistetstatst.nemenaregoonnoownpeenex
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Gelogoy Deilogical sing&lef minelisaionttytttytpospe,geoesora Theiciginislydeiewdf ahttt ogeneorcurrenunr revanparresearcjt.proec
DrillholeInforiontma Af allinforionialhededingfhettertottantsummaryomamaunrsoffoforlorionlincludingbulaionhellowinginionttstatttexparesuaomaforllMaialdrillholestera: Sehebleinheleattaterese
Eaing&hingfhedrillholellartttsnorocoo
(levionRLRedudLel –levionbolevlintteaorceveeaaveseaeo)fhedrillholellartretmesoco
fdip&imhheholettazouo
doholelenh&iniondehtterttwngceppo
holelenh.tgo
Ifhelusionfhisinforionisjified ohebaishahettttttttexcomausnsinforionisMaial&hislusiondodefrohetttertttrattmanoexcesnocmCodedingfhehePehold clealytantt,ttentunrsorepormperson surlainhyhisishettexpcasew
Dataiontaggrega IningExlorionRelighinginghniqttts,ttecreporpasuweaveragues,/o(imdinimdeioningfhightrutttmaxumanr mumgrancase.g. cuo CoiinghabedeibedboThehniqfottempossenscravecueriingdiledhelabhinginalttattretocomposseencruseverymeanomu
Criiater CCoJORdelaniotexpan Cotammenry
hodstme de)&cff gdellyMaial&holdbed.t-otertategrasuras areusuasus 2mhedinizebefoliingff a400-00gleingtt7mcrusgrasresposampus,ffolihiingThelabhetattetrettaroryspr,oeacmercomposndedihelestotet400-700gproceecompossamp
Wheinincholenhsfhigh gdetetertstettreaggregaceporporasrgorafforl&lonlenhslowdelhedudtstts,tresugergograresuprocereuseh aionholdbed&ical elesf shttatetysucggregasussomepxampoucionholdbehoindeil.ttaaggregas sswnu
Theiondforingf ml eivalenluetttat vassumps useanyreporoequasholdbelealyd.tatesucrs
Relaionhiptsbetween fThelaionhipicularlyiminheingtttantttseress areparporreporoExlorionReltts.pasu SNoidhshabedinhisAXleajdoholetruttatetteveensreseuswnw,inlenhsHofoEM1Aly,helefhedelledtettttrcepgwever,ronangomo
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Section 3 Estimation & Reporting of Mineral Resources

NOT APPLICABLE