Resources & Energy : Shallow High Grade Lode Gold System Intersected at Maranoa

Published: 2022-01-17 17:35:06 ET REZ.AX

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ASX/Media Release

18 January 2022

Shallow High Grade Lode Gold System Intersected at Maranoa‐Peak Assay of [email protected] from 37m

Resources & Energy Group Limited (ASX: REZ or the Company) are pleased to provide results from drilling operations at the Companies Maranoa prospect. Three of the four holes completed in the December 2021 program intersected the targeted lode system with peak assays of:

Results are reported at a COG of 0.2gt, complete details including collar location and assays are presented in accompanying figure 1, Appendix 1, and Appendix 2, Table 1 JORC Checklist.

DISCUSSION

In late December 2021 the Company completed four reverse circulation (RC) holes at Maranoa, which is located on the west side of the East Menzies Tenement package, approximately 2.5km south of Granny Venn (M29/189), refer figure 2. These holes were drilled opportunistically, to take advantage of equipment and resources which were still on site after completion of the Springfield drilling program in late December.

Maranoa is a granted Mining License (M29/427) and is being investigated as part of the Company's strategy to identify and commercialise near term and low capital cost mine development opportunities along the western side of the East Menzies project area. This approach enables the company to generate cash flow to fund exploration in the broader tenement package. This includes the highly prospective Gigante Grande Gold Project in the east, and the recently announced Nickel Sulphide occurrences at Springfield in the west.

Previous investigations at Maranoa have identified a (JORC 2012) inferred mineral resource estimate of 46kt @ 5.7gt/au for about 8koz (4). Resource modelling indicates potential for small scale high‐ grade open cut operations. These resources present an opportunity for extending mining activities at East Menzies which are presently focussed on the Granny Venn Cut Back. The drilling activities at Maranoa to date (past and present) have principally been directed at shallow open cut mineralisation. On a broader canvass, the resource at depths below 100m has not been tested and is considered open to the south.

Maranoa is one of many northeast‐trending mineralised quartz veins, which are conspicuously displayed by lines of old gold reef workings along the east limb of the Goodenough Syncline, refer figures 1 and 2. Historic workings are shown as yellow dots on these figures. Apart from the Maranoa lode, others in the suite include True Blue, Alexandra, Picton, Kensington, Sunday Gift, Viking, Brilliant and Luxemburg. The latter three (Sunday, Viking, and Luxemburg) are the subjects of an adjoining Mining Lease Application (M29/434) which has been lodged by the Company. M29/434 has since progressed to Native title negotiations.

In general, the Maranoa lode or reef system is represented by tabular quartz veins mostly 0.1 - 2.0 meters thick and exceptionally achieving up to 4.0m in width. The extent of existing workings, surface outcrop and drilling investigations indicates that the Maranoa lode system has a strike length on surface of between 300 and 500m. In the main, the lode system dips 700‐800 southeast, and plunges 30‐45o south. The host rocks are metavolcanic and are described as hard and weakly foliated close‐ grained greenstone (amphibolite). There is only minimal wall rock alteration, and the country rock is

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typically, but not uniformly barren. The host flow rocks are intruded by acid porphyry dykes and sills, which have been mapped on the eastern side of the prospect and appear to be a feature of the Springfield‐Venn fault zone in this part of the project area.

Figure 1 Maranoa Borehole Location Plan Superimposed on Litho‐Structural Interpretation, Light Green=Mafic Basalt, Yellow dots=Shafts and Pits, Red Dots=Current MMRC drillhole, Orange Dots=Historic Callion JV drillhole

Mining at Maranoa was carried out between 1899 and 1942. These historic workings are still reasonably accessible, refer plates 3 and 4. The ore was initially custom milled on site with a 10 head stamping battery. Production records during this period is recorded as 9,465t at a gold grade of 27g/t for 8,510 oz. In 1979, the mine was dewatered by Queen Margaret Mines N.L (QMM), and the underground workings above the 200ft level examined where possible. In 1985, the Callion JV under agreement with QMM completed 42 RC holes in the vicinity of the workings. This work was the basis of a non‐JORC resource estimate, which did not proceed to development. Since that time there has been no further systematic evaluation of the prospect until it was acquired by the REZ in late 2018.

The drilling completed by the Company was designed to drill test the Maranoa lode by a combination of shallow and deeper holes. The two shallow holes (MMRC01 and MMRC02) intersected the lode at 35 and 26m respectively. In both cases the mineralisation is represented by up to 4m of quartz veins, with minor pyrite, distributed within mafic basalt which displayed strong biotite alteration. Only one of the deeper holes intersected the lode (MMRC003), which was logged as a fine‐grained basalt also with strong biotite alteration, minor pyrite and up to 60% quartz from 107 to 112m.

To validate the high‐grade result obtained in MRRC01, the interval from 35m to 40m was dollied and panned. This process generated a tail of visible gold and sulphides (possibly marcasite) at 38m, plate

1. A closer inspection of drill cuttings also identified a few chips with gold partially enclosed by sulphides in the same interval, plate 2.

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Plate 1 ‐Panned drill cuttings from 37‐ 38m MRRC01, showing gold tail

Plate 2 Drill cutting from 37‐38m MMRC01, showing gold/sulphides in quartz, frame view is about 15mm

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NEXT STEPS

The drilling investigations completed in December were part of a larger program the Company was planning to implement in the first quarter 2022. The results obtained from these holes will be used to update the resource model for conceptual mine design, and further exploration planning.

Figure 2 East Menzies Gold Project tenement and Operations Plan

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Plate 3 and 4 Maranoa ‐Historic Workings

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Resources & Energy Group Limited published this content on 17 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 January 2022 22:34:10 UTC.