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TREK METALS LIMITED Capital/Financing Update 2021

Jul 28, 2021

65923_rns_2021-07-28_0cc63c68-5a8e-487c-82c5-f59f7a3b6f0a.pdf

Capital/Financing Update

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29 JULY 2021

ASX/MEDIA RELEASE

Maiden drill program confirms large-scale VMS copper-zinc potential at Valley of the Gossans

Initial XRF results delineate an exciting VMS exploration target within a 2km long alteration corridor defined by multi-element Cu-Zn-Ag mineralisation

Highlights

  • Maiden 21-hole/3,716m Reverse Circulation drill program completed at the Pincunah Project, located just south of the world-class Pilgangoora Lithium Complex.

  • Highly encouraging portable-XRF base metal readings from drilling at the Valley of the Gossans (VOG) Prospect highlight the potential for a large VMS system similar to the Sulphur Springs Project (Venturex Resources), located 25km to the east.

  • Visual observations have noted widespread weak-to-moderate pyrite, silver, zinc and copper sulphide mineralisation with strong argillic alteration – a classic VMS signature.

  • Two holes at VOG have been cased for a down-hole EM (DHEM) survey to be undertaken, paving the way for follow-up diamond drilling.

  • Eight RC holes completed at the Carlindi Gold Prospect, with assays awaited.

Trek Executive Director John Young said:

“We are very pleased with what we’ve seen so far from our maiden drill program at Pincunah Project. The key takeaway for investors is that we now have enough evidence to be very confident that the Valley of the Gossans Project is likely to be large-scale VMS copper-zinc base metal system with an extensive footprint that extends over 2km.

“The geological similarities to the Sulphur Springs Project, located 30km to the east, which is currently being developed by Venturex Resources, are striking and show that we are in the right sort of environment to make a significant VMS-style base metal discovery.

“It’s not often that you see copper-zinc mineralisation as widespread as we have seen at the Valley of the Gossans. This is further supported by the strong correlation between our soil surveys conducted earlier this year and these drilling results.

“VMS deposits often have a relatively small footprint, so the next step is to focus in within the broad anomalous zone on potential accumulations of massive sulphide mineralisation. We will do this by undertaking down-hole EM surveys from the recent drill-holes to help us target VMS mineralisation at depth and along strike. This work will commence in the coming weeks, and should provide us with targets to be tested with diamond drilling.”

Trek Metals Limited | ARBN 124 462 826

130 Stirling Highway, North Fremantle WA 6159 | Locked Bag 4, North Fremantle WA 6159 | Australia Tel +61 (0)8 6215 0371 www.trekmetals.com.au

[email protected]

Trek Metals Limited (ASX: TKM ) (“ Trek ” or the “ Company ”) is pleased to advise that its maiden Reverse Circulation drilling program at the 100%-owned Pincunah Gold and Copper Project in the Pilbara region of WA (Figure 4) has delivered highly encouraging initial results, highlighting the potential for a large-scale VMS base metal system at Valley of the Gossans (VOG) prospect.

The drilling program covered an extensive multi-element anomaly at VOG extending over a strike length of more than 2km, with a total of 13 holes for 2,662m of RC drilling completed. The drill rig, supplied by Orlando Drilling, then moved north-west to the Carlindi Prospect where a further 8 holes were drilled for 1,054m, for a total of 3,716m (see Figure 1).

Drill-holes VRC005 and VRC006 targeted a prospect called “The Gap” at VOG, located just 150m east of the IP target defined during the last field program. A number of holes returned elevated levels of copper, zinc and arsenic from portable-XRF data (*pXRF), with 4m composite samples and 1m split samples now submitted for gold and base metal assay.

* pXRF readings are semi-quantitative and are deemed to only provide an indication of base metal mineralisation. In addition, the pXRF device is not able to detect gold that may be present in the samples. The samples will be sent to a commercial laboratory for gold and base metal assay.

The elevated copper values (pXRF) intersected in drill holes VRC001 to VRC013 lie both within and close to the sediment/ultramafic contact (Table 2). PVC006 also intersected a 10m wide zone of semi-massive pyrite from 220-230m within or adjacent to the ultramafic just 100m east of to the VOG IP anomaly.

Pincunah RC Drilling

A total of 13 holes for 2,662m of RC drilling were completed at VOG (see Figure 2).

1m samples from the RC program were logged and analysed in the field where possible using portable hand-held XRF. The down-hole XRF results have been used to select 1m splits or 4m composite samples for submission to the laboratory.

XRF results from dry samples in several of the holes have identified a highly anomalous copperzinc corridor at VOG associated with highly altered sediments and ultramafic lenses to the south.

The initial drilling was completed to confirm historical drilling results reported by PMI (1969 to1970). The surface gossans at VOG have been mapped at surface and strike north-north west oblique to the general geological trend.

As expected, the holes VRC001 to VRC003 returned elevated levels of copper and silver.

VRC003 returned anomalous silver with 1m @ 26g/t Ag from 24m from pXRF readings.

VRC004 intersected altered metasediment with weak zinc anomalism. In particular, a manganeserich shale contained 1m @ 1.19% Zn from 70m.

Drill-holes VRC005 to VRC013 covered an extensive As-Sb-Ag-Se soil anomaly that is variably coincident with Au-Co-Mo and Bi further to the west.

The early XRF results in this area, together with geological logging, quickly isolated the ultramafic contact with the sulphidic sediments as the most prospective area for copper mineralisation, in particular, disseminated chalcopyrite.

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The zinc mineralisation was associated with sulphidic, manganese-rich black shales, while the copper mineralisation was found in structural breaks within the ultramafic unit itself.

Initial field XRF analysis (recorded values from the dry samples only) has returned the following results:

  • 1m @ 1.18% Cu from 122m and 1m @ 2.2% Zn from 171m from drill-hole VRC006

  • 11m @ 0.82% Zn from 149m, incl. 1m @ 5.2% Zn from 153m from drill-hole VRC008

  • 1m @ 0.70% Cu from 46m from drill-hole VRC009

  • 1m @ 0.37% Cu from 55m from drill-hole VRC010

  • 1m @ 1.10% Cu from 154m from drill-hole VRC012

Copper and zinc intersections above 0.3% are listed in Table 2.

The nature, grade and depth of the copper and zinc mineralization near the Chert marker horizon at Valley of the Gossans provide evidence of a mineralising process for a VMS-style copper-zinc system analogous to the Sulphur Springs deposits, 30km to the east.

  • pXRF readings are semi-quantitative and are deemed to only provide an indication of base metal mineralisation. In addition, the pXRF device is not able to detect gold that may be present in the samples. The samples will be sent to a commercial laboratory for gold and base metal assay.

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Figure 1: Pincunah RC Collar Locations

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Figure 2: VOG RC Collar Locations and XRF Results

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Carlindi RC Drilling

At the Carlindi prospect area, three traverses of RC drilling were completed, comprising eight holes for 1,054m (see Figure 3). Both the recent and the historic soil data confirmed the continuity of two north-northeast trending gold-in-soil anomalies >20ppb Au that extend for 1.5km along the western edge of regionally extensive potassium anomaly.

Historic drilling focused on exposed quartz veins on the western side of a semi-continuous chert horizon that extends to the north-west and is also stratigraphically coincident with the Mt York deposit held by Kairos.

Previous drilling had focused on three areas with holes drilled to a maximum of 50m.

Figure 3: Carlindi RC Collar Locations over Au in Soils (ppb)

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Next Steps

In light of the encouraging results received from the Pincunah Project, Trek will proceed with a DHEM survey on holes VRC007 and VRC013 targeting massive sulphide zinc and copper mineralization. The planned DHEM survey at Valley of the Gossans will test the prospective contact between the potassic chert horizons and the ultramafic units.

About the Pincunah Project

The Pincunah Project (E45/4909) is located 100km south of Port Hedland and just 5km south of the Mt York Project owned by Kairos Minerals (ASX: KAI). The soil program was completed to cover the “Valley of the Gossans”(VOG) Prospect. At VOG, there is extensive evidence of hydrothermal alteration over an area of 2.2km by 0.9km. The north-west trending gossans are poorly exposed at surface as isolated outcrops in a low-lying valley.

Figure 4: Location of the Pincunah Copper Gold Project

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Table 1 – RC Collar Locations

Hole ID Easting (m) Northing (m) RL(m) Depth(m) Azimuth Dip Prospect
VRC001 704,024 7,656,570 230 88 90 -60 VOG
VRC002 704,119 7,656,343 239 232 180 -60 VOG
VRC003 704,504 7,656,410 239 124 180 -60 VOG
VRC004 704,501 7,656,451 243 160 180 -60 VOG
VRC005 703,754 7,656,453 229 220 180 -60 VOG
VRC006 703,648 7,656,559 240 238 180 -60 VOG
VRC007 703,540 7,656,643 241 232 180 -60 VOG
VRC008 703,529 7,656,694 238 220 180 -60 VOG
VRC009 703,402 7,656,770 239 220 180 -60 VOG
VRC010 703,381 7,656,763 234 232 225 -60 VOG
VRC011 703,103 7,656,926 235 232 180 -60 VOG
VRC012 703,112 7,656,819 236 232 180 -60 VOG
VRC013 703,086 7,656,648 231 232 0 -60 VOG
VRC014 701,285 7,658,701 226 220 90 -60 Carlindi Au
VRC015 701,195 7,658,705 216 222 90 -60 Carlindi Au
VRC016 701,113 7,659,083 206 100 270 -60 Carlindi Au
VRC017 701,142 7,659,096 207 100 270 -60 Carlindi Au
VRC018 701,180 7,659,085 210 100 270 -60 Carlindi Au
VRC019 701,049 7,659,489 201 100 90 -60 Carlindi Au
VRC020 701,110 7,659,502 205 100 90 -60 Carlindi Au
VRC021 701,150 7,659,498 219 112 90 -60 Carlindi Au

Table 2 – Significant Drill Results (pXRF)

Hole ID Easting (m) Northing (m) From(m) To(m) Width(m) Grade Element
VRC001 704,024 7,656,570 28 29 1 0.31% Cu
VRC003 704,504 7,656,410 24 25 1 26g/T Ag
VRC004 704,501 7,656,451 70 71 1 1.19% Zn
VRC006 703,648 7,656,559 122 123 1 1.18% Cu
VRC006 703,648 7,656,559 171 172 1 2.20% Zn
VRC008 703,529 7,656,694 149 160 11 0.82% Zn
VRC008 703,529 7,656,694 153 154 1 5.20% Zn
VRC009 703,402 7,656,770 46 47 1 0.70% Cu
VRC009 703,402 7,656,770 150 151 1 28g/T Ag
VRC010 703,381 7,656,763 55 56 1 0.37% Cu
VRC012 703,112 7,656,819 125 126 1 0.31% Zn
VRC012 703,112 7,656,819 154 155 1 1.10% Cu
VRC013 703,086 7,656,648 25 27 2 0.38% Zn

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Approved for release by John Young – Executive Director.

ENDS

For further information contact:

INVESTORS:

John Young [email protected]

MEDIA:

Nicholas Read 0419 929 046

REGISTERED OFFICES – TREK METALS LIMITED ARBN 124 462 826

Australia Bermuda Postal Address 130 Stirling Highway Vallis Building, 4th Floor Locked Bag 4 North Fremantle 58 Par-la-Ville Road NORTH FREMANTLE WA 6159 Hamilton HM 11 WA 6159

COMPETENT PERSONS STATEMENT

The information in this report relating to Exploration Results is based on information compiled by the Company’s Executive Director, Mr John Young, a competent person, who is a Member of the Australian Institute of Mining and Metallurgy. Mr Young has sufficient experience relevant to the style of mineralisation and to the type of activity described 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 Young has disclosed that he holds Shares, Options and Performance Rights in the Company. Mr Young consents to the inclusion in this announcement of the matters based on his information in the form and content in which it appears.

* pXRF readings are semi-quantitative and are deemed to only provide an indication of base metal mineralisation. In addition, the pXRF device is not able to detect gold that may be present in the samples. The samples will be sent to a commercial laboratory for gold and base metal assay.

DISCLAIMERS AND FORWARD-LOOKING STATEMENTS

This announcement contains forward looking statements. Forward looking statements are often, but not always, identified by the use of words such as "seek", “target”, "anticipate", “forecast”, "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions.

The forward-looking statements in this announcement are based on current expectations, estimates, forecasts and projections about Trek and the industry in which it operates. They do, however, relate to future matters and are subject to various inherent risks and uncertainties. Actual events or results may differ materially from the events or results expressed or implied by any forward-looking statements. The past performance of Trek is no guarantee of future performance.

None of Trek’s directors, officers, employees, agents or contractors makes any representation or warranty (either express or implied) as to the accuracy or likelihood of fulfilment of any forward-looking statement, or any events or results expressed or implied in any forward-looking statement, except to the extent required by law. You are cautioned not to place undue reliance on any forward-looking statement. The forward-looking statements in this announcement reflect views held only as at the date of this announcement.

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Appendix 1: The following tables are provided to ensure compliance with the JORC Code (2012) requirements for the reporting of the Pincunah Gold Project Section 1: Sampling Techniques and Data

Criteria JORC Code explanation Commentary
Sampling
techniques

Nature and quality of sampling (eg 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.

Include reference to measures taken to
ensure sample representivity and the
appropriate calibration of any measurement
tools or systems used.

Aspects of the determination of
mineralisation that are Material to the Public
Report. In cases where ‘industry standard’
work has been done this would be relatively
simple (eg ‘reverse circulation drilling was
used to obtain 1 m samples from which 3
kg was pulverised to produce a 30 g 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 submarine
nodules) may warrant disclosure of detailed
information.
• The Trek drill sampling was conducted by Trek Technical personnel.
Samples are representative grab sample from drill bags on a nominal 1
metre sampling interval
• The location of drill holes were located by handheld GPS
• 1m samples from the RC drilling were collected and sieved into a
representative sample then placed in 20mm plastic sample cups and
energized using an Olympus Portable XRF Vanta Unit.
• The sample XRF data were only collected for dry samples from the RC
drilling.
• The digital XRF data were then processed for analysis of around 39
elements and significant grades and widths selected for laboratory
analysis.
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). _
• Reverse circulation drilling using a face sampling bit

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Criteria JORC Code explanation Commentary
Drill sample
recovery

Method of recording and assessing core
and chip sample recoveries and results
assessed.

Measures taken to maximise sample
recovery and ensure representative nature
of the samples.

Whether a relationship exists between
sample recovery and grade and whether
sample bias may have occurred due to
preferential loss/gain of fine/coarse
material.
• Reverse circulation drilling recoveries were generally good and any
issues noted by supervising geologist
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.

Whether logging is qualitative or
quantitative in nature. Core (or costean,
channel, etc) photography.

The total length and percentage of the
relevant intersections logged.
• All samples are representative of the collection areas
• Geological logging descriptions were recorded by a Trek geologist each
rock sample interval or rock type and the relevant depth was recorded in
the dataset
Sub-sampling
techniques
and sample
preparation

If core, whether cut or sawn and whether
quarter, half or all core taken.

If non-core, whether riffled, tube sampled,
rotary split, etc and whether sampled wet or
dry.

For all sample types, the nature, quality and
appropriateness of the sample preparation
technique.

Quality control procedures adopted for all
sub-sampling stages to maximise
representivity of samples.

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.

Whether sample sizes are appropriate to
the grain size of the material being
sampled.
• The preparation of the samples follow industry practice for XRF sampling,
with a small charge of sample placed in a CRN cup. A larger 2kg sample
has been retained or dispatched for laboratory follow up assay.
• Field QA/QC was undertaken with duplicates and standards inserted in
samples submitted to the laboratory. Laboratory QA/QC is expected to be
completed on laboratory samples.
• Sample sizes are considered appropriate
Criteria JORC Code explanation Commentary
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.

For geophysical tools, spectrometers,
handheld XRF instruments, etc, the
parameters used in determining the
analysis including instrument make and
model, reading times, calibrations 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.
• XRF readings by Trek were conducted in the field on a sampling stand
mounted on the back of a vehicle using an Olympus XRF seated in a
stand. Standards are used to calibrate the instrument and the suitable
geochemistry mode is selected for the readings.
Verification of
sampling and
assaying

The verification of significant intersections
by either independent or alternative
company personnel.

The use of twinned holes.

Documentation of primary data, data entry
_procedures, data verification, data storage _
• Results have been verified by company management.
• This data has been verified and included in the company database.

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(physical and electronic) protocols.

Discuss any adjustment to assay 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.

Specification of the grid system used.

Quality and adequacy of topographic
control.

Location of drill holes, rock and soil samples by Trek were recorded
using a handheld GPS which is considered appropriate for location data

Grid projection system is GDA94 MGA Zone 51.

Surface RL data is collected using GPS.

Topography is varied, but generally elevated adjacent steeper ridges.
Criteria JORC Code explanation Commentary
Data spacing
and
distribution

Data spacing for reporting of Exploration
Results.

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.

Whether sample compositing has been
applied.
• Drilling and sampling was targeting possible VMS style and or gold
mineralisation below subcropping gossans.
• The drilling was first pass.
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.

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 orientation bias is considered to have an effect on the data.
Sample
security

The measures taken to ensure sample
security.
• Chain of custody is managed by the company. Samples are freighted
directly to the Laboratory with the appropriate documentation.
Audits or
reviews

The results of any audits or reviews of
sampling techniques and data.

No additional QA/QC has been conducted for this sampling to date.

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Section 2: Reporting of Exploration Results

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

Criteria JORC Code explanation Commentary
Mineral
tenement and
land tenure
status

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 security of the tenure held at the time of
reporting along with any known
impediments to obtaining a license to
operate in the area.
• The Pincunah Project, located 50-70 km west of Marble Bar,
comprises granted licence E45/4909 and E45/4917 that are held by
ACME Pilbara Pty Ltd (“APP”) which is a 100% subsidiary of Trek
Metals Ltd. The project is covered by a Native Title application by the
Nyamal People. L PL N050365 covers E45/4909 and UCL covers
E45/4917.
Exploration
done by other
parties

Acknowledgment and appraisal of
exploration by other parties.

Lynas Gold NL (1997): Carried out a conventional soil sampling
program on grids ranging from 100 m by 50 m to 200 m by 50 m
spacing.
Geology
Deposit type, geological setting and style of
mineralisation.

The Pincunah project is situated in the Archean Pilbara Craton which
hosts several significant gold deposits shown on the regional map in
the body of the announcement.

Mineralisation identified at Valley of Gossans is not well understood
but is interpreted to be a possible VMS style environment, with gold-
bearing structures and intrusions.

At Carlindi, gold-bearing shear zones are hosted in Archean siliclastic
rocks and the mineralisation style is interpreted to be similar to the
Invincible gold deposit at St Ives,in Kambalda.
Drill hole
Information

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:
o easting and northing of the drill hole
collar
o elevation or RL (Reduced Level –
elevation above sea level in metres) of
the 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.

Drilling details are listed in tables 1 and 2
Data
aggregation
methods

In reporting Exploration Results, weighting
averaging techniques, maximum and/or
minimum grade truncations (eg cutting of
high grades) and cut-off 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

Results are reported for interval analysis

No weighting has been used however as they are pXRF readings the
company will be sending the samples for laboratory analysis

No metal equivalents have been reported

ASX TKM | W TREKMETALS.COM.AU E [email protected] |

Criteria JORC Code explanation Commentary
detail.

The assumptions used for any reporting of
metal equivalent values should be clearly
stated.
Relationship
between
mineralisation
widths and
intercept
lengths

These relationships are particularly
important in the reporting of Exploration
Results.

If the geometry of the mineralisation with
respect to the drill hole angle is known, its
nature should be reported.

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’). _

The program has been designed to test the potential for the PIncunah
area to host a VMS/Gold type deposit.

Drilling was designed to drill perpendicular to the target trend.
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 plan view of drill hole collar
locations and appropriate sectional views.
• See relevant maps in the body of 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
practiced to avoid misleading reporting of
Exploration Results.
• All available data has been presented, significant XRF readings are
shown, these will be sent to a laboratory for an accredited assay, result
will be tabulated and released when received. pXRF readings should
be considered as a guide only, this approach to reporting the readings
is deemed appropriate for an early stage exploration program of this
nature.
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;
potential deleterious or contaminating
substances.
• Exploration data for the project continues to be reviewed and assessed
and new information will be reported if material.
Further work
The nature and scale of planned further
work (eg tests for lateral extensions or
depth extensions or large-scale step-out
drilling).

Diagrams clearly highlighting the areas of
possible extensions, including the main
geological interpretations and future drilling
areas, provided this information is not
commercially sensitive.
• Further work is detailed in the body of the announcement.

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