Redstone Resources : Significant High Grade Copper Intersected at Tollu

Published: 2021-11-22 16:27:43 ET RDS.AX

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ASX ANNOUNCEMENT 23 November 2021

SIGNIFICANT HIGH GRADE COPPER INTERSECTED AT

TOLLU, WEST MUSGRAVE

HIGHLIGHTS

*It is important to understand that copper grades derived from the analysis of drill chips by handheld portable XRF (hh‐pXRF) should be used as a guide only and is not a substitute for geochemical analysis of drill chip samples at a certified laboratory. Redstone will provide an update of more accurate copper grades for drilling intervals represented in this ASX announcement when the laboratory based geochemical analysis results are returned. Appendix 1 contains information on the results of testing the hh‐pXRF against certified reference material and Appendix 2 has all relevant drill hole details.

Redstone Resources Limited ABN 42 090 169 154

www.redstone.com.au

60 Havelock Street, West Perth WA 6005 Tel: 08 9328 2552

Email: [email protected]

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Redstone Resources Limited (ASX Code: RDS) ('Redstone' or the 'Company') is pleased to announce that preliminary analysis by handheld pXRF (hh‐pXRF) of recent reverse circulation (RC) drilling has successfully proven that thick high‐grade lenses of copper mineralisation intersected in historical drilling at the Chatsworth Prospect (Chatsworth), Tollu, have significant volume vertically and extend to shallower depths.

The recent Chatsworth intersections include downhole thicknesses for copper mineralisation of up to:

Chatsworth is part of the Tollu Copper Vein deposit on the Company's 100% owned West Musgrave Project (the Project) in Western Australia.

Redstone's Chairman Richard Homsany commented:

"We are very pleased with the further excellent high grade copper mineralisation results at the Chatsworth Prospect within the Tollu Copper Deposit. With only a limited number of drill holes Redstone has shown that, in the vast majority of cases, the thick high grade copper lenses extend beyond the historical drill holes they have so far been delineated in with thickness and grade either maintained or expanded.

Importantly, opportunities for extensions of mineralisation at Chatsworth include towards much shallower depths.

In addition, extensions with intersections of over 10 metres containing over 1% copper potentially provide opportunities in the Tollu resource that are yet to be thoroughly investigated.

We look forward to continuing our exploration efforts at the earliest opportunity next calendar year which, as has been the case for much of 2021, are subject to rig and personnel availability. The next drilling phase will include deeper RC drilling at select priority targets.

Redstone is confident that any further drilling at West Musgrave can significantly improve the value of the Project. We will keep the market informed once commitments are secured."

TOLLU COPPER VEIN DEPOSIT ‐ CHATSWORTH PROSPECT

Four reverse circulation (RC) drill holes, TLC188, TLC189, TLC190 and TLC192, for a total of 756m were drilled at the Chatsworth Prospect at the Tollu Copper Vein deposit (Tollu) to test for continuity of mineralisation vertically through the hosting sub‐vertical vein system, and in doing so, test if the thick high grade copper mineralisation previously intersected in early drilling held volume between and beyond the historical drill holes, particularly at shallower depths than previously intersected.

The early historical drilling at Tollu, primarily completed in 2010 and the results of which are included in the Tollu maiden resource1 defined in 2016 (refer to ASX announcement of 15 June 2016), intersected very high grade copper over seemingly thick lenses of mineralisation in individual drill holes but at the time, was not tested adequately along the vertical extent of the hosting quartz vein system. For instance, two historical holes, TLC033 and TLC034, drilled in December 2010, intersected a thick lens of high grade copper mineralisation that may have pinched and swelled within a sub‐vertically oriented vein system with 5m at 2.21% copper from 100m downhole in TLC033 but swelling to 15m at 1.39% copper from 136m downhole in TLC034 (ASX Announcement 21 February 2011), a vertical distance between intersections of approximately 35m. However, despite the excellent intersections and despite 35m representing a relatively long distance in terms of potential spatial variation of mineralisation in a vein hosted system, no other drilling has since been undertaken along the line to test vertical continuity of mineralisation.

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In this drilling programme, Redstone tested this line with two drill holes, TLC188 and TLC189, targeting approximately 15‐20m vertically above the intersection in TLC033 and 25‐30m vertically below the intersection in TLC034. (refer to Figure 1). According to preliminary hh‐pXRF analysis, the recent drilling successfully proved that the thick high grade copper mineralisation seems to continue vertically, being maintained in the deeper intersection with 12m at 1.91% copper from 175m downhole, including 8m at 2.78% copper from 175m downhole (in TLC188) and swelling considerably in the shallower intersection with

28m at 1.2% copper from only 62m downhole, inclusive of 2m at 3.1% copper from 67m downhole (in TLC189).

As is clearly seen in Figure 1, TLC188 and TLC189 have proven that the thick high grade copper mineralisation intersected at Chatsworth in historical drill holes extends considerably shallower and deeper than historically delineated. In the particular location represented by Figure 1, TLC188 and TLC189 have extended the vertical continuity of the copper mineralisation to double previous with at least some 100m of vertical extent, seemingly continuous and still open at depth and towards the surface. What previously seemed a contraction of mineralisation towards the surface in TLC033, is most likely a 'pinch' in a pinch and swell morphology.

Figure 1 - E‐W Cross‐section of recent RC drill holes TLC188 and TLC189 along with the historical drilling at Chatsworth, Tollu, looking north. Note that copper grades on recent drilling are hh‐pXRF only and should only be considered a guide to actual grade. Grades on historical drill holes are both hh‐pXRF and laboratory based geochemistry and they are labelled accordingly. See text for further details.

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Some 90m to the south of TLC188 and TLC189, drill hole TLC192 aimed to test for a further shallower continuity of thick high grade mineralisation intersected by historical drill holes TLC024, TLC031 and TLC030 (from east to west, see Figure 2) in December 2010. TLC192 was positioned to test for continuity approximately 20m vertically above the 9m at 1.29% copper from 86m downhole intersected by TLC030 (ASX Announcement 21 February 2011); it showed a swelling of the mineralisation to 19m at 1.08% copper from 54m downhole inclusive of 3m at 3.45% copper from 63m downhole (see Figure 2). The shallow extension of mineralisation by TLC192 extends the high grade mineralisation in this location to some 120m vertically and is open towards the surface (see Figure 2).

Figure 2 - E‐W Cross‐section of recent RC drill hole TLC192 along with the historical drilling at Chatsworth, Tollu, looking north. Note that copper grades on recent drilling are hh‐pXRF only and should only be considered a guide to actual grade. Grades on historical drill holes are both hh‐pXRF and laboratory based geochemistry and they are labelled accordingly. See text for further details.

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On the historical drilling line between those above, some 50m to the south of that displayed in Figure 1 and 40m to the north of that displayed in Figure 2, the recently drilled RC drill hole TLC190 was aimed at testing at a shallower depth (20m above vertically), a thick high grade lens of mineralisation intersected in historical drill hole TLC015, drilled in April 2010, which intersected 20m at 2.45% copper from 178m downhole depth (ASX Announcement 28 June 2010). An historical hole, TLC032, was drilled 'above' TLC015 (some 30m vertically), however it was terminated at 139m downhole depth and so never tested directly above the mineralisation in TLC015 outlined above. The recent drill hole, TLC190, showed a thinning of the mineralisation lens and a decrease in grade to 7m at 0.28% copper from 190m downhole.

However, interestingly, the position of the copper mineralisation in TLC190, although of lower grade and thickness, suggests the mineralisation intersected at a similar downhole depth in historical drill holes TLC015 and TLC020 is oriented almost horizontal on the Figure 3 section plane. This suggests a previously unrecognised additional orientation to copper mineralisation at Chatsworth.

Figure 3 - E‐W Cross‐section of recent RC drill hole TLC190 along with the historical drilling at Chatsworth, Tollu, looking north. Refer to text for grades of pending interval, which could not be added to the figure in time for the ASX release. Note that copper grades on recent drilling are hh‐pXRF only and should only be considered a guide to actual grade. Grades on historical drill holes are both hh‐pXRF and laboratory based geochemistry and they are labelled accordingly. See text for further details.

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Disclaimer

Redstone Resources Limited published this content on 22 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 November 2021 21:26:07 UTC.