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RESOLUTION MINERALS LTD Capital/Financing Update 2020

Sep 9, 2020

65717_rns_2020-09-09_59f02ea1-d6e8-4a0c-8c79-5b43d0b7af3c.pdf

Capital/Financing Update

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10 September 2020

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ASSAYS AND OPERATIONS UPDATE 64NORTH PROJECT, ALASKA

Summary

  • Drilling has reached 422m on hole ID: 20AU07 at the 2km x 5km Aurora Prospect , the hole is designed to test a high priority target with a planned depth of 600m.

  • Assays from Aurora drill holes 20AU03 and 20AU04 have indicated minor gold mineralisation is present in the system as detailed in figure 3 and 4. The results will assist in vectoring in on additional targets.

  • Geophysics results and initial ground follow up at the Boundary Prospect to be released next week.

  • Fully funded exploration on multiple drilling targets with news flow for the remainder of 2020 after the recent $5.1m placement and SPP.

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Completed 19 Aug
Completed
Pogo Gold Mine
1 Sept 10M oz Au
New assays
reported
Drilling now
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Figure 1 Aurora, Echo & Reflection Prospects - West Pogo Block, 64North Project Alaska, current drilling focus

CAPITAL STRUCTURE

Ordinary Shares Issued 279 M

Options and rights Listed options 6.1 M @ 10c Unlisted options 12.3 M @ 25c Unlisted options 13.4 M @ 6c Unlisted rights 7.5 M

Performance Shares Class A 9.6 M Class B 3.6 M

Last Capital Raise August 2020 - Placement & SPP $5.1M @ 7c

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BOARD
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Len Dean - Chair Duncan Chessell - MD Andrew Shearer - NED Craig Farrow - NED Jarek Kopias - Co Sec

Level 4, 29-31 King William Street, Adelaide SA 5000

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ASX RELEASE

Resolution Minerals Ltd ( RML, Resolution or Company ) is pleased to update investors with assay results from phase two of drilling on the Aurora Prospect and that the third phase of drilling for 2020 is well underway on the West Pogo Block adjacent to Northern Star’s (ASX:NST) Pogo Gold Mine, Alaska.

Status of Phase Three of Drilling West Pogo Block – Aurora, Echo and Reflection Prospects

Prospect Hole ID Depth Completion date Logging and Assay status
Echo 20EC005 321m 19 August Logged, samples sent to lab
Reflection 20RE006 553m 1 September Detailed loggingunderway
Aurora 20AU007 *422m(est 600m) drillingnow

Drilling production rates have improved throughout the year and high-quality structural data has been collected from orientated HQ core. The structural information learnt from the drilling is crucial in unlocking the structural controls on mineralisation and will be combined with assay data when it becomes available to enhance drill targeting. A surge in gold exploration in North America has resulted in longer time frames on return of assays from laboratories, the Company has taken steps to minimise time frames and will look to fast track the core from the Reflection Prospect.

Hole ID: 20AU07 – Aurora Prospect – currently drilling

A track mounted diamond core drilling rig has commenced the third diamond core hole at the Aurora Prospect for this phase of drilling (hole ID:20AU07). The hole is currently at 422m depth and is designed to a depth of ~600m and will test a NE trending structural zone. The hole is located on the central-northern edge of the Aurora prospect, proximal to an outcropping diorite intrusive and coincident with conductive rocks identified by the ZTEM geophysics survey. The Aurora Prospect is road accessible, which allows for year-round drilling.

Assay Results Hole ID’s 20AU03 and 20AU04

Assays from Aurora drill holes #3 and hole #4 indicate minor gold mineralisation as detailed below. The alteration observed in the drill core matched the CSAMT and ZTEM geophysics anomalies. The Company is encouraged by the strong alteration, presence of minor gold mineralisation, para-gneiss host rocks and presence of sulphides indicating the strong fertility of the system. We interpret that correct structural “dilation” event, or opening of “space”, to allow thick high-grade gold mineralisation did not occur at these locations. We conclude these holes intersected thick zones that were clearly the fluid pathways for a large mineralising system and further drilling will target potential high-grade zones of gold mineralisation.

Intervals Hole 20AU003

  • 0.86m @ 0.35 g/t Au from 19m depth

  • 0.86m @ 0.44 g/t Au from 423m depth

Intervals Hole 20AU004

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Figure 2 Quartz and sulphide veins at 1,060m Hole ID 20AU04 - typical of this hole.

  • 0.78m @ 0.41 g/t Au from 522m depth

  • 1.19m @ 0.76 g/t Au from 762m depth

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ASX RELEASE

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Figure 3 Cross section with assay results from 20AU001 and 20AU004 - Aurora Prospect, West Pogo Block

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Figure 4 Cross section of new assay results for Hole ID 20AU004 and historic results MR-12-02 and MR-12-01

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ASX RELEASE

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Figure 5 Deposit sizes stated as Endowment (Resources & Reserves + Historic Production) *sourced from Company websites

For further information please contact the authorising officer:

Duncan Chessell Managing Director Resolution Minerals Ltd +61 8 6118 7110

E: [email protected]

Follow RML on LinkedIn or Twitter or visit our website www.resolutionminerals.com

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*Tintinta Gold Province Endowment Map – source of data: Pebble (Northern Dynasty, www.northerndynastyminerals.com), Pogo (Northern Star Resources, www.nsrltd.com), Fort Knox (Kinross, www.kinross.com), Donlin Creek (NovaGold, www.novagold.com), Livengood (International Tower Hill Mines, www.ithmines.com), Eagle & Dublin Gulch (Victoria Gold Corp, www.vgcx.com), Brewery Creek (Golden Predator, www.goldenpredator.com), White Gold (White Gold Corp, whitegoldcorp.ca), Coffee (Newmont, www.newmont.com), Kensington (Coeur Mining, www.coeur.com).

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ASX RELEASE

Competent Persons Statement

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Duncan Chessell who is a member of the Australasian Institute of Mining and Metallurgy and Australian Institute of Geoscientists. Mr Duncan Chessell is a full-time employee of the company and 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 ‘Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Duncan Chessell consents to the inclusion in the report of the matters based on his information in the form in which it is appears and confirms that the data reported as foreign estimates are an accurate representation of the available data and studies of the material mining project. This report includes results that have previously been released under JORC 2012 by the Company as “Binding agreement earning 80% of Gold Project in Alaska” on 17 October 2019, “Gold Symposium Conference Presentation” on 24 October 2019, “2019 AGM Managing Director’s Presentation” on 26 November 2019, “Operations Update at 64North Project, Alaska” on 31 March 2020, “Exploration Update - 64North Project Alaska” on 14 May 2020, “Drilling Update - 64North Project Alaska” on 24 June 2020, “Investor Presentation - Noosa Mining Virtual Conference” on 13 July 2020 and ‘Drilling Commenced at Reflection Prospect – 64North” on 25 August 2020. The Company is not aware of any new information or data that materially affects the information included in this announcement.

Appendix 1. Summary table of drill hole details.

Table 1a: Summary of RML drill intervals from May drilling at the 64North Project, Alaska. Table 1a: Summary of RML drill intervals from May drilling at the 64North Project, Alaska. Table 1a: Summary of RML drill intervals from May drilling at the 64North Project, Alaska. Table 1a: Summary of RML drill intervals from May drilling at the 64North Project, Alaska. Table 1a: Summary of RML drill intervals from May drilling at the 64North Project, Alaska. Table 1a: Summary of RML drill intervals from May drilling at the 64North Project, Alaska.
Hole ID Prospect From To Interval Au(g/t)
20AU003 Aurora 19.01 19.87 0.86 0.35
20AU003 Aurora 423.32 424.18 0.86 0.44
20AU004 Aurora 521.78 522.56 0.78 0.41
20AU004 Aurora 761.58 762.77 1.19 0.76
Including Aurora 761.58 762.13 0.55 0.96

Table 1b: RML drill collar location for the 64North Project, Alaska.

Hole ID Easting Northing Elevation Azimuth Dip EOH Depth
20AU003 595970 7148300 565m 145 -80 615.09
20AU004 594885 7149325 700m 145 -80 1093.32

Notes for Tables 1a and 1b

  1. An accurate dip and strike and the controls on mineralisation are yet to be determined and the true width of the intercepts is not yet known.

  2. Coordinates are in NAD83, Zone 6

  3. Elevation and Hole Depth are in metres

  4. Azimuth is in Degrees Grid North

  5. Dip is in degrees

  6. g/t (grams per tonne), ppm (parts per million), ppb (parts per billion), NSI (no significant intercept)

  7. All drilling is HQ diamond core drilling, all of hole is sampled

  8. Significant results are shown for intercepts >0.3g/t Au with no more than 0.4m of internal dilution

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ASX RELEASE

Appendix 2. The following tables are provided to ensure compliance with the JORC Code (2012) requirements for the reporting of the exploration results for the 64North Project – Alaska.

Section 1 Sampling Techniques and Data

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

Criteria JORC Code explanation Commentary Commentary
Sampling Nature and quality of sampling (e.g. cut Sampling was undertaken using
techniques channels, random chips, or specific
specialised industry standard measurement
standard industry practices and a
standard operating procedure to
tools appropriate to the minerals under ensure continuity of work practices
investigation, such as down hole gamma between staff. The sections of the
sondes, or handheld XRF instruments, etc.). core that are selected for assaying
These examples should not be taken as are marked up and then recorded
limiting the broad meaning of sampling. on a sample sheet for cutting and
Include reference to measures taken to sampling at the certified assay
ensure sample representivity and the laboratory. Samples of HQ core
appropriate calibration of any measurement are cut just to the right of the
tools or systems used. orientation line where available
Aspects of the determination of mineralisation using a diamond core saw, with
that are Material to the Public Report. half core sampled lengthways for
In cases where ‘industry standard’ work has
been done this would be relatively simple
(e.g. ‘reverse circulation drilling was used to
obtain 1 m samples from which 3 kg was
assay. Half core was sampled
length wise for assay. QAQC
samples (standards, blanks and
duplicates) are inserted into the
pulverised to produce a 30 g charge for fire sequences as per industry best
assay’). In other cases, more explanation may practice the details of which are
be required, such as where there is coarse Au set out below in sub-sampling
that has inherent sampling problems. Unusual techniques section.
commodities or mineralisation types (e.g. The HQ diamond core was
submarine nodules) may warrant disclosure sampled as half core at
of detailed information. geologically defined or significant
alteration and mineralisation
boundaries to ensure adequate
sample representivity.
Diamond core sample intervals
were set between 0.1m minimum
and 1.5m maximum.
Individual samples weigh less than
3kg to ensure total preparation at
the laboratory pulverisation stage
to produce 30gram charge for fire
assay. The sample size is deemed
appropriate for the grain size of the
materialbeing sampled.
Drilling Drill type (e.g. core, reverse circulation, open- Oriented HQ diamond core triple
techniques hole hammer, rotary air blast, auger, Bangka,
sonic, etc.) and details (e.g. core diameter,
tube, down hole surveys every 100
feet (~30m), using a Reflex ACT-III
triple or standard tube, depth of diamond tails, tool.
face-sampling bit or other type, whether core
_is oriented and if so, by what method, etc.). _

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ASX RELEASE

Criteria JORC Code explanation Commentary
Drill sample Method of recording and assessing core and •Core was processed in the
recovery chip sample recoveries and results assessed.
Measures taken to maximise sample recovery


Fairbanks ALS laboratory core
processing room for the full
and ensure representative nature of the duration of the program.
samples. Recoveries were recorded for all
Whether a relationship exists between sample
holes, into a logging database to
recovery and grade and whether sample bias 3cm on a laptop computer by a
may have occurred due to preferential qualified geologist using the drillers
loss/gain of fine/coarse material. recorded depth against the length
of core recovered. No significant
core loss was observed.
•Triple tube HQ was used to
maximise core recovery.
•No relationship between sample
recovery and gradeisidentified.
Logging Whether core and chip samples have been •Core logging is carried out by
geologically and geotechnically logged to a project partner (Millrock Resources)
level of detail to support appropriate Mineral qualified geologists using a project
Resource estimation, mining studies and specific logging procedure. Data
metallurgical studies. recorded includes, but is not limited
Whether logging is qualitative or quantitative to, lithology, structure, quality,
in nature. Core (or costean, channel, etc.) recovery, alteration, sulphide
photography. mineralogy and presence of visible
The total length and percentage of the gold. This is supervised by senior
relevant intersections logged. geologists familiar with the
mineralisation style and nature.
Resolution’s Exploration Manager
and Managing Director monitor drill
core remotely using photographs
and logs. Lithology is measured to
~3cm scale marked from the
closest core block. Rock codes
have been set up specifically for the
project. Logging is to a sufficient
level of detail to support appropriate
Mineral Resource estimation and
mining studies.
•Drill logging is both qualitative by
geological features and quantitative
by geotechnical parameters.
Photographs are taken of all cores
trays, (wet) of whole core prior to
cutting.
•All drilled intervals are logged and
recorded as standard operating
practice.
Sub- If core, whether cut or sawn and whether •Drill core was initially cut and
sampling
techniques
quarter, half or all core taken.
If non-core, whether riffled, tube sampled,
rotary split, etc. and whether sampled wet or
submitted for analysis at the ALS
laboratory in Fairbanks. Due to high
demand at ALS, RML opted to
and sample
preparation
dry.
For all sample types, the nature, quality and
appropriateness of the sample preparation
outsource core cutting to
Metallogeny Inc. in Fairbanks and
sample analysis to BV laboratory in
technique. Fairbanks to improve assayturn

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ASX RELEASE

Criteria JORC Code explanation Commentary
Quality control procedures adopted for all around time.
sub-sampling stages to maximise •Selective sampling techniques were
representivity of samples. not used, all core was sampled.
Measures taken to ensure that the sampling •Half HQ core was taken as the
is representative of the in situ material sample and is considered
collected, including for instance results for representative and appropriate for
field duplicate/second-half sampling. exploration stage. Field duplicates
Whether sample sizes are appropriate to the of quarter core were submitted on a
grain size of the material being sampled. 1:50 basis (2%). Appropriate high,
medium and low gold and base
metal standards (CRM’s) are used
on a 1:20 basis (5%). Blanks are
inserted on a 1:50 basis (2%).
Laboratories introduce QAQC
samples and complete duplicate
check assays on a routine basis.
•Sample preparation is considered
appropriate and was undertaken by
ALS Fairbanks (ALS Code Prep-
31Y) and BV Fairbanks (PRP70-
250) both using 70% to <2mm
Crush and Pulverize 85% to <75
um. Samples were split and were
subsequently analysed at ALS
laboratory in Whitehorse, Canada
and BV laboratory in Reno,
Nevada. Gold was analysed by
Fire Assay (specifically ALS code
Au-AA25 and BV code FA430/AA).
Both Au by fire assay and AAS
finish using a 30gram nominal
sample weight. No multi-element
analysis was completed on the
samples.
•Quarter core field duplicates were
sampled to assess Au variability.
The company considers analysing
half core to be representative and
appropriate for the stage of
exploration, with half core retained
for audit purposes.
•Sample size as defined above is
considered appropriate to the
materialsampled.
Quality of The nature, quality and appropriateness of •The sampling digest methods are
assay
and
data the assaying and laboratory procedures used
and whether the technique is considered
partial or total.
considered appropriate and
industry standard. ALS method Au-
AA25 and BV method FA430/AA
laboratory
tests
For geophysical tools, spectrometers,
handheld XRF instruments, etc., the
parameters used in determining the analysis
are fire assay techniques were
applied.
•No use of portal XRF is reported.
including instrument make and model, •QAQC procedures included the
reading times, calibrations factors applied and
insertion of appropriate high,
their derivation, etc. mediumandlowgold and base

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ASX RELEASE

Criteria JORC Code explanation Commentary Commentary
Nature of quality control procedures adopted metal Certified Reference Materials
(e.g. standards, blanks, duplicates, external (CRM) on a 1:20 basis (5%), Blank
laboratory checks) and whether acceptable material on a 1:50 basis (2%) and
levels of accuracy (i.e. lack of bias) and Field Duplicates on a 1:50 basis
precision have been established. (2%) for a total insertion rate of 9%,
which is appropriate to the
exploration stage. QC checks are
conducted after results are received
utilising Company QC and supplied
internal laboratory QC information.
Laboratories introduce QAQC
samples and complete duplicate
check assays on a routine basis.
No abnormalitieswere detected.
Verification The verification of significant intersections by At least two geologists have
of sampling
and
either independent or alternative company
personnel.
The use of twinned holes.
reviewed the physical core in
addition to offsite RML and Millrock
geologists reviewing the logging
assaying Documentation of primary data, data entry
procedures, data verification, data storage
and photographs.
No twinned holes.
(physical and electronic) protocols. Drilling information is digitally
Discuss any adjustment to assay data. entered and stored following
documented core handling
procedures and backed up
electronically.
No adjustment has been made to
theprimaryassaydata.
Location of Accuracy and quality of surveys used to All maps and locations are in UTM
data points locate drill holes (collar and down-hole
surveys), trenches, mine workings and other
grid (NAD83 Z6N) and have been
measured by hand-held GPS with
locations used in Mineral Resource a lateral accuracy of ±4 metres
estimation. and a vertical accuracy of ±10
Specification of the grid system used. metres.
Quality and adequacy of topographic control.
Data Data spacing for reporting of Exploration Data spacing is insufficient to
spacing and
distribution
Results.
Whether the data spacing, and distribution is
sufficient to establish the degree of geological
establish the degree of geological
and grade continuity required for a
Mineral Resource estimation.
and grade continuity appropriate for the Sample composting has not been
Mineral Resource and Ore Reserve applied to these exploration
estimation procedure(s) and classifications results.
applied.
Whether sample compositing has been
applied.
Orientation Whether the orientation of sampling achieves The relationship between the
of data
relation
in
to
unbiased sampling of possible structures and
the extent to which this is known, considering
the deposit type.
drilling orientation and the
orientation of key mineralised
structures has not been confirmed.
geological
structure
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.

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ASX RELEASE

Criteria JORC Code explanation Commentary Commentary
Sample The measures taken to ensure sample A secure chain of custody protocol
security security. has been established with the site
geologist locking samples in
secure shipping container at site
until loaded by courier to secure
restricted access room at
Fairbanks ALS laboratory for core
processing by Millrock staff
geologists.
Cutting and sampling was initially
undertaken at the ALS site and
delivered directly to ALS staff. Due
to high demand at ALS, RML
opted to submit some samples to
ALS directly in Fairbanks and
outsource core cutting to
Metallogeny Inc. in Fairbanks and
sample analysis to BV laboratory
in Fairbanks. Millrock staff
geologists arranged courier from
the logging facility at ALS to
secure rooms at Metallogeny and
then secure rooms at Fairbanks
BV laboratory.
Audits or The results of any audits or reviews of No review has been undertaken at
reviews sampling techniques and data. this time.

Section 2 Reporting of Exploration Results

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

Criteria Criteria JORC Code explanation Commentary
Mineral Type, reference name/number, location and •Resolution Minerals Ltd executed a
tenement
and
land
ownership including agreements or material
issues with third parties such as joint
ventures, partnerships, overriding royalties,
binding agreement with Millrock
Resources to acquire, via joint
venture earn-in, up to 80% interest
tenure native title interests, historical sites, of the 64North Project in Alaska
status wilderness or national park and environmental
settings.

(ASX:RML Announcement
16/12/2019).
The security of the tenure held at the time of •The total tenement area comprising
reporting along with any known impediments the 64North Project consists of
to obtaining a licence to operate in the area. 1176 State of Alaska claims
(66,050 hectares).
•The 64North Project is located
approximately 120km east of
Fairbanks.
•The tenure is in good standing and
noknown impediments exist.

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ASX RELEASE

Criteria Criteria JORC Code explanation Commentary Commentary
Exploration
done
by
Acknowledgment and appraisal of exploration
by other parties.


Previous exploration work
includes;
Surface Geochemical Sampling:
other parties Pan concentrates, fine silts, silts,
soils & rock chips. Airborne
Geophysics: EM, LiDAR,
Radiometric & Magnetics.
Ground Geophysics: Magnetics,
Radio-metrics, EM, VLF-EM,
NSAMT & CSAMT.
Exploration Drilling: 46 Diamond.
Geology Deposit type, geological setting and style of Resolution Minerals Ltd is primarily
mineralisation. exploring for Intrusion Related Gold
mineralisation (e.g. Pogo-style)
within the Yukon-Tanana Terrane
of thenorthernCordillera,Alaska.
Drill hole A summary of all information material to the See Appendix 1 summary table of
Information understanding of the exploration results
including a tabulation of the following
drill hole results.
An accurate dip and strike and the
information for all Material drill holes: controls on mineralisation are yet
o easting and northing of the drill hole collar to be determined and the true
o elevation or RL (Reduced Level – width of the intercepts is not yet
elevation above sea level in metres) of the known.
drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
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 In reporting Exploration Results, weighting Sample length weighted averaging
aggregation
methods
averaging techniques, maximum and/or
minimum grade truncations (e.g. cutting of
high grades) and cut-off grades are usually
was used to calculate the
aggregated intervals of significant
mineralisation. A cut off of 0.3 g/t
Material and should be stated. Au has been applied for significant
Where aggregate intercepts incorporate short intersections. No top cut has been
lengths of high-grade results and longer applied. There is no internal
lengths of low-grade results, the procedure dilution.
used for such aggregation should be stated No metal equivalents have been
and some typical examples of such used.
aggregations should be shown in detail.
The assumptions used for any reporting of
metal equivalent values should be clearly
stated.
Relationship These relationships are particularly important Down hole length has been
between
mineralisati
in the reporting of Exploration Results.
If the geometry of the mineralisation with
respect to the drill hole angle is known, its
reported, as true width is not
known, as insufficient work has
been undertaken to understand the
on widths nature should be reported. true width of intervals.
If it is not known and only the down hole A structural interpretation is being

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ASX RELEASE

Criteria JORC Code explanation Commentary
and lengths are reported, there should be a clear undertaken by an external
intercept
lengths
statement to this effect (e.g. ‘down hole
length, true width not known’).
consultant
•“Down hole length, true width not
known” is stated in the notes to
Table 1a.
Diagrams Appropriate maps and sections (with scales) •Plan view of drill collar locations
and tabulations of intercepts should be have been included in the body of
included for any significant discovery being this report.
reported These should include, but not be •Sections for each drill hole has also
limited to a plan view of drill hole collar been provided.
locations and appropriate sectional views.
Balanced Where comprehensive reporting of all •The reporting is considered
reporting Exploration Results is not practicable,
representative reporting of both low and high
balanced.
•Comprehensive reporting of all
grades and/or widths should be practiced to drilling, trench, soil samples has
avoid misleading reporting of Exploration occurred in historical reports and
Results. reported when appropriate here.
Other Other exploration data, if meaningful and •Resolution Minerals completed a
substantive
exploration
material, should be reported including (but not
limited to): geological observations;
geophysical survey results; geochemical

ZTEM survey. See ASX:RML
announcement released on the
25/08/2020 for details.
data survey results; bulk samples – size and •Millrock Resources completed a
method of treatment; metallurgical test CSAMT survey. See TSX.V: MRO
results; bulk density, groundwater, announcement, released on the
geotechnical and rock characteristics; 9/10/2019 for details.
potential deleterious or contaminating
substances.
Further The nature and scale of planned further work •Drilling is ongoing at the Aurora
work (e.g. tests for lateral extensions or depth
extensions or large-scale step-out drilling).
Prospect and a plan view of drill
collar locations has been provided
Diagrams clearly highlighting the areas of in the body of this report.
possible extensions, including the main
geological interpretations and future drilling
areas, provided this information is not
commercially sensitive.

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