Gold and Base Metals Exploration in Western Australia

Challa North

Challa North – Gold

An ongoing evaluation of the Company's Challa Project data base has highlighted several areas for additional gold exploration in covered areas along strike from known gold occurrences. Previous gold exploration on the Company's tenure was restricted to areas of shallow soils adjacent to known gold occurrences. These areas were tested by soil sampling which highlighted numerous areas of gold anomalism. Some of the gold anomalies were followed up by first pass slim-line reverse circulation drilling. The best result from this work was 3.74g/t gold (see the Company's ASX announcements on 6 August 2018 and 14 November 2018).

These gold zones are associated with north and north-east trending structures which clearly extend under recent transported cover in areas with no effective exploration.

The southern two SFM gold target areas in E58/500 and E58/485 are located along the strike of north trending structures associated with the Boulder and Honey Pot gold prospects (excised) which returned drilling results up to 8m @ 2.03g/t Au from 12 m in HAC022 – see Flinders Mines Limited ASX announcement on 31 July 2015).

These are large targets with 10km and 5km of strike respectively, containing multiple potentially gold mineralized structures. The target areas are under transported cover not amenable to surface sampling techniques and future exploration will require target specific air-core drilling. The Company is currently refining targets and drilling plans.

Challa North regional gold exploration targets (GT1-4) and historic

excised prospects – Elsie, Lewis Find, Honey Pot and Boulder.