TASMAN RESOURCES LTD — Interim / Quarterly Report 2020

Jul 27, 2020

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ASX QUARTERLY REPORT for the Period Ended 30[th] June 2020

SUMMARY

SOUTH AUSTRALIAN EXPLORATION PROJECTS

Pernatty IOCG* Project - EL 6137 (100% Tasman)

• Several new EM±gravity-magnetic targets identified by geophysical modelling.

• Drilling to test for copper sulphides scheduled for September Quarter.

• (*IOCG – Iron Oxide-Copper-Gold)

Lake Torrens IOCG* Project – EL6416 (Fortescue Metals Group Ltd (Fortescue) earning 51%)

Work completed during the quarter by Fortescue included:

• A primary focus on the collation and analysis of newly-acquired and existing geophysical data and the reanalysis of existing drill core.

• Four Vulcan prospect holes processed through the HyLogger at the State Government drill core storage facility.

• A geochemical vectoring program on samples from Vulcan, aimed at developing a methodology for quantifying the relative abundances and distribution of magnetite and hematite throughout the Vulcan IOCG mineral system commenced .

EDEN INNOVATIONS LTD (ASX Code: EDE)

• Tasman through its wholly owned subsidiary, Noble Energy Pty Ltd, holds 624,634,707 fully paid shares in Eden (representing 36.24% of the total issued capital of Eden) and 14,814,815 EDEOB options. Based on the closing price on the ASX of EDE ($0.026) and EDEOB ($0.007) on 30June 2020, this investment had a market value of $16 million, which is equivalent to 3.3 cents for every currently issued TAS share.

• Highlights of Eden’s progress during the quarter can be viewed in Eden’s quarterly activities report.

Level 15, 197 St Georges Terrace, Perth, Western Australia 6000 Telephone: (08) 9282 5889 Website: www.tasmanresources.com.au

Report for June Quarter 2020

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MINERAL EXPLORATION

LAKE TORRENS PROJECT, SOUTH AUSTRALIA

Pernatty Project - EL 6137 (Tasman 100%)

The Pernatty Project is located approximately 20km SSE of the IOCG deposit at Carrapateena, within Exploration Licence 6137 (refer Figure 1). The area was initially targeted by Tasman for its potential to host IOCG deposits due to available geophysical data, the possibility of reasonable basement depths and its proximity to Carrapateena. Importantly, Tasman’s regional geological studies identified Pernatty as lying within an interpreted prospective “corridor” containing the most commercially favourable IOCG deposits at Olympic Dam, Wirrda and the three deposits in the Carrapateena area (see Figure 1). Recently, BHP has announced the potential discovery of a major new deposit at Oak Dam West, which is also located within this interpreted corridor. There has been no previous drilling within the tenement .

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EL6416
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Figure 1: Pernatty Project Location Plan (grid GDA 94, Z53).

Pernatty Project- New EM Data Analysis and Modelling

Previous geophysical modelling of the EM data in the northern area of the tenement (refer Figure 2) in conjunction with the available gravity and magnetic data has recently been reviewed by Tasman’s consultant geophysicist after analysis of what was previously thought to be spurious EM data along one of the surveyed lines.

An anomalous segment of EM survey line 6524000N (refer Figure 2) between 751100E and 751600E was resurveyed by the contractor in December, 2019, only to find, that some of the anomalous effects were no longer obvious and normal polarization-free readings were observed. The geophysical report was written assuming that the second data set was correct and the earlier one was spurious; however, a question remained regarding the veracity of the data. Logically, one or the other, or both surveys seemingly had to be wrong and after a thorough analysis Tasman’s consultant geophysicist believes that both may have been correct but subject to different conditions.

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Plate_01
EM
Target
Line 6524000N
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Figure 2: EL 6137. Residual gravity image showing EM survey lines (white) and location of modelled TEM conductor in southern area (yellow hatch). Yellow circles in north area are approx. locations of modelled steeply dipping conductive plates. White circles are locations of small coincident gravity-magnetic-TEM anomalies. Green circles are the three additional targets. Overall dimensions of EM anomalies in north area unknown. Grid GDA 94 Z53.

The geophysicist believed that the anomalous readings on the first survey were most likely due to polarisation effects due to a higher current in a two turn transmitter loop which was not detected by the second survey which may have used only a one turn loop and hence a lower transmitter current (AMIRA TEM format does not include provision for recording the number of turns in a transmitter loop).

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Report for June Quarter 2020

Modelling of the EM results from the first survey on Line 6524000N (Figures 3&4) had recently been completed and three additional high priority drilling targets were delineated assuming that the data from the anomalous segment of the first EM survey is reliable.

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Figure 3: Line 6524000N, TEM results from first EM survey using a 2 turn transmitter loop.

Tasman’s geophysicist concluded, based on these results, that the modelled flat lying polarizable Plate_01 (refer Figure 4) may represent sulphides in relatively shallow porous rocks of the Adelaidean cover sequence such as the Whyalla Sandstone if present, and possibly of similar style to the copper sulphides at Mt Gunson, 40km to the west. Very recent information however suggests there is a possibility that modelled Plate_01 may not be valid (refer next section).

The deeper rocks represented by Plate_02 and Plate_04 may represent a deeper source for any base metal sulphide accumulations here. Modelled Plates_02 and Plate_04 coincide laterally as well as depth-wise, with dense and magnetic bodies recognised in the density-magnetic susceptibility model for the area and are priority targets for IOCG copper sulphide mineralisation (refer Figure 4 and gravity and magnetic profiles in Figure 3).

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Figure 4: Line 6524000N, best model fit of EM data shown in Figure 3, showing modelled conductive plates 01 to 04.

Recent Follow up EM Survey

The questionable segment of line 6524000N has since the end of the quarter been re-surveyed with one reading being taken with a single turn loop and a second reading being taken when feeding the same current into a two-turn loop.

Results from the recent brief follow up survey that was conducted over the shallow target (labelled as Plate_01 EM Target in Figure 2) are still being analysed but it appears the latest survey was unable to confirm the polarisation effects observed in the initial survey over conductive Plate_01 (refer Figures 2 and 4). The validity of this target is therefore uncertain as the varying responses from the three surveys cannot be satisfactorily explained. All of the other EM targets remain valid.

Pernatty Project- Forthcoming Drilling Program

Subject to a successful capital raising Tasman is proposing to drill some or all of the eight EM ± gravity-magnetic targets (refer Figure 2) in the September quarter. Although the EM responses over Plate_01 are ambiguous, Tasman at this stage still proposes to drill test this EM target.

During the quarter an aboriginal heritage survey over the additional target areas was carried out by representatives of the Kokatha Native Title holders. All proposed hole locations have now been cleared for drilling and approval has been obtained from SA Dept. of Energy and Mining for the program.

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Lake Torrens IOCG Project – EL 6416 (Tasman 100%, Fortescue earning 51%).

Fortescue Agreement

Tasman Resources Ltd (“Tasman”) and FMG Resources Pty Ltd, a subsidiary of Fortescue Metals Group Ltd (ASX:FMG “Fortescue”) executed a Farm-in and Joint Venture Agreement (“Agreement”) over Tasman’s wholly owned Exploration Licence 6416 in June 2019 (Refer to TAS:ASX Announcement 14 June 2019).

EL6416 (refer Figure 5) hosts the Vulcan, Vulcan West and Titan iron oxide-copper-gold (“IOCG”) prospects, approximately 30km north of BHP’s Olympic Dam mine in South Australia.

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Figure 5: EL6416 showing Tasman IOCG prospects.

Work Carried Out During the Quarter by Fortescue

During the quarter, Fortescue was primarily focused on the collation and analysis of newlyacquired and existing geophysical data and the reanalysis of existing drill core. Four Vulcan holes were processed through the HyLogger at the State Government drill core storage facility. This work is part of a geochemical vectoring program on samples from Vulcan, aimed at developing a methodology for quantifying the relative abundances and distribution of magnetite and hematite throughout the Vulcan IOCG mineral system.

Historical Exploration Data Review

Historic exploration activities continued during the quarter including evaluation of drilling, geochemical, and geophysical data. Fortescue has completed relogging of all drill holes from the Titan Prospect and basement-intersecting drillholes from the Marathon Prospect. Drill core from

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the Vulcan Prospect is in the process of being relogged. New petrographic samples have also been collected to better understand the IOCG system.

Geophysics

Continued focus has been maintained on the QAQC of existing available data. Existing data of necessary quality will be maintained and merged into the newly acquired datasets. Analysis and reinterpretation of pre-existing geophysical data including IP, Seismic, and AMT surveys is ongoing.

Geochemistry

Drill Sample Assays

A representative sub-suite (subset) of pulp samples from Vulcan drill core has been submitted to the laboratory for detailed analytical testing. This program is designed to quantify the distribution of magnetite and hematite and aid vectoring within the mineral system.

Spectral Analysis

Internal analysis of Hylogger-scanned Vulcan holes VUD001, 009, 011, 014, 015, 016, & 017 is ongoing. Finalised results and reports from these scans are expected in the next Quarter.

Program for the September Quarter

Work planned by Fortescue for the next quarter includes:

• Continued review, re-logging and data collation of existing drill core

• Commence selected re-assaying of Vulcan drill core where necessary

• Analysis of samples for hematite/magnetite geochemical vectoring program

• On ground reconnaissance for future access preparation

• Commencement of geophysical modelling and preliminary target generation

Background on Vulcan and Vulcan West Prospects (presently regarded by

Tasman as the high priority prospects within EL6416)

(Note: All information provided in this section has been previously announced to the ASX by Tasman.)

Vulcan is located 30km NNE of the giant Olympic Dam IOCG deposit and is a very large IOCG system, where drilling to date has intersected a number of very thick intervals of alteration and low-grade mineralisation over a large target area (about 12km[2] ).

Vulcan West occupies a very geophysically anomalous and interesting zone (around 50km[2] ) between, Vulcan and Titan, another very large IOCG system within Tasman’s Exploration Licence 6416 (see Figure 6). Other regional IOCG targets within Tasman’s EL6416 are also shown in Figure 6.

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Report for June Quarter 2020

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Figure 6: Regional residual gravity image over Tasman’s Exploration Licence 6416, showing the location of Olympic Dam, Tasman’s IOCG prospects and the area of the 2018 gravity infill survey and modelling (Vulcan West). (GDA 94, MGA Zone 53)

As previously reported (see Tasman’s ASX Quarterly Report for the quarter ending 31 March 2018) the infill gravity survey completed in January 2018 over a previously undrilled section of the Exploration Licence, provided high quality data to enable detailed geophysical modelling (combined gravity and magnetics) over an area considered prospective for discovery of IOCG deposits. A number of potential drill targets were identified in this modelling, and as suspected, a number of these targets are at shallower depth than the nearby large Vulcan IOCG system.

Regional MT surveys conducted by the University of Adelaide have suggested that Vulcan and Olympic Dam share a very deep underlying zone of anomalously conductive rocks that are postulated to represent a zone of fluid migration, which was critical in the formation of these two very large IOCG systems.

Figure 7 (see Figure 6 for location) shows the residual gravity response obtained from the new geophysical processing and modelling over the main area of interest at Vulcan West and clearly highlights a number of distinctive anomalies. Combined modelling of this gravity data with existing magnetics has defined a number of potential drill targets at a variety of depths (Figure 7):

• Target A: Modelled depth of about 650m

• Target B: Modelled depth of about 700m

• Target C: Modelled depth of about 680m

• Target D: Modelled depth of about 850m

• Target E: Modelled depth of about 700m

• Target F: Modelled depth of about 750m

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Figure 7: Detailed plan of residual gravity at Vulcan West, based on all available data. Red/magenta colours are areas of stronger residual gravity, generally indicating areas likely to be underlain by denser, more iron-rich rock, potentially IOCG systems. The letters A, B C etc. refer to individual modelled bodies. Also shown in plan, at the same scale is an outline of the Carrapateena IOCG deposit, located 125km to the SE. Clearly there is potential for the Vulcan West area (especially Targets A & C) to host Carrapateena-size deposits at attractive depths.

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Figure 8: Location of Tasman’s Exploration Project Areas in South Australia.

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Report for June Quarter 2020

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CORPORATE

Tasman announced a non-renounceable pro-rata rights offer to Tasman shareholders to raise up to (if fully subscribed) approximately $1,478,019. The Offer is open to all Tasman shareholders who were on the register as at 5:00pm WST on 10 July 2020 (the Record Date) and who have a registered address in Australia or New Zealand.

All eligible shareholders were offered one fully paid ordinary Tasman share for every ten fully paid ordinary Tasman shares held as at the Record Date, at a price of $0.028 per share, together with one free attaching Tasman option for every two shares issued under the Offer (each to acquire one fully paid ordinary Tasman share at an exercise price of $0.05 per share at any time up to and including three years after their date of issue).

It is anticipated that the Offer will be partially underwritten, with the underwritten amount being 33.829% of any shortfall, which is equivalent to a maximum partial underwriting of approximately $500,000 of the total amount of $1,478,019 that would be raised under this Offer if fully subscribed.

The anticipated Timetable* for the Offer is as follows:

icipated Timetable* for the Offer is as follows:
Offer announcement		24 June 2020
Lodgement of Prospectus at ASIC		6 July 2020
Lodgement of Prospectus and Appendix 3B with ASX		6 July 2020
Ex date		9 July 2020
Record Date for determining entitlements		10 July 2020
Prospectus despatched to Qualifying Shareholders		15 July 2020
Closing date of the Offer		31 July2020
If agreed by ASX, securities quoted on a deferred settlement	basis 3	August 2020
Announcement of results of Rights Issue	5	August 2020
Issue Date and Appendix 2A lodged with ASX (end of any deferred
settlement trading), dispatch of holding statements	7	August 2020

*The above dates are indicative and subject to change

The funds will be used to fund forthcoming exploration at the Company’s Pernatty IOCG prospect in South Australia, for general working capital, to support the Company’s investments and to repay a short-term interest free loan made to the Company by an entity related to one of its directors, which entity in turn has agreed to sub-underwrite 60% of the partially underwritten shortfall.

INVESTMENT IN EDEN INNOVATIONS LTD (ASX Code: EDE)

Tasman through its wholly owned subsidiary, Noble Energy Pty Ltd, holds 624,634,707 fully paid shares in Eden (representing 36.24% of the total issued capital of Eden) and 14,814,815 EDEOB options in Eden. Based on the closing price on the ASX of EDE ($0.026) and EDEOB ($0.007) on 30 June 2020, this investment had a market value of $16 million, which is equivalent to 3.3 cents for every currently issued TAS share.

The board of Tasman believes there is potentially significant upside in its investment in Eden and as a major part of Tasman’s investment strategy it intends to continue to hold the Eden shares as a long term investment.

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Report for June Quarter 2020

The highlights of progress made by Eden during the quarter are included in the Eden quarterly activities report.

INVESTMENT IN CONICO LTD (ASX Code: CNJ)

Tasman holds 50,660,821 fully paid shares and 5,184,536 CNJO options in potential cobaltnickel producer Conico Ltd (“Conico”), representing 13.18% of the total issued capital of Conico. Based on the closing price on the ASX of CNJ ($0.007) on 30 June 2020, this investment had a market value of $0.35 million.

The highlights of progress made by Conico during the quarter are included in the Conico quarterly activities report.

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Greg Solomon Executive Chairman

This announcement was authorised by the above signatory.

For any queries regarding this announcement please contact Aaron Gates on +618 9282 5889.

Disclaimer

The interpretations and conclusions reached in this report are based on current geological theory and the best evidence available to the authors at the time of writing. It is the nature of all scientific conclusions that they are founded on an assessment of probabilities and, however high these probabilities might be, they make no claim for complete certainty. Any economic decisions that might be taken on the basis of interpretations or conclusions contained in this report will therefore carry an element of risk.

It should not be assumed that the reported Exploration Results will result, with further exploration, in the definition of a Mineral Resource.

Competent Persons Statement

The information in this quarterly report that relates to Exploration Results is based on and fairly represents information compiled by Michael J. Glasson, a Competent Person who is a member of the Australian Institute of Geoscientists.

Mr Glasson is a part time employee of the company. Mr Glasson is a share and option holder.

Mr Glasson 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 Glasson consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Description of Payments to related parties of the entity and their associates (LR 5.3.5)

Payments to related parties during the quarter related to:

1. Directors Fees (the directors agreed to reduced their director fees by 50% for the months of March – June 2020 in light of Covid-19);

2. Superannuation on director fees at 9.5%; and

3. Management Fees, as per agreement, were paid during the quarter to a company of which Mr GH Solomon and Mr DH Solomon are directors. The management fees were mutually agreed to be reduced by 50% for the months of March – June 2020 in light of Covid-19.

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Report for June Quarter 2020

Interests in Mining Tenements

Tenements	Location	Interest held at end of quarter	Acquired during the quarter	Disposed during the quarter
EL 6416*	SA	100%
EL 5602	SA	100%
EL 6137	SA	100%

*Subsequent licence to EL 5499

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