HIGHLIGHTS For personal use only · KKGP – New SAM geophysical survey reveals multiple targets (yellow ellipses) at intersections between regional NW-SE shears (blue dashed) and

Marindi Metals Ltd ASX: MZN

Level 3, 35 Havelock St

West Perth, WA, 6005

T +61 8 9322 2338

[email protected]

www.marindi.com.au

30 April 2019

March 2019 Quarterly Activities Report

Exploration program gathers momentum with maiden drilling program completed at Forrestania Gold Project and geophysical surveys delivering new, high-priority targets

HIGHLIGHTS

Forrestania Gold Project, WA (MZN: 100%)

Great Southern Gold Prospect (GSGP)

1,855m RC drilling program completed targeting extensions to both the Great Southern and Premier (Commonwealth) historical open pits, and strike extensions to historical surface shaft positions.

Geophysical review identifies new high-priority 1km2 GS19 target, which sits at a “triple-junction” intersection of major structures and dolerite intrusives.

Auger soil sampling confirms wide area of gold-in-regolith over the GS19 target, with elevated gold assays over a 500m long x 100m wide area directly over the “triple-junction” intersection.

Gold assays illustrate a strong NW trend aligned with the interpreted NW-SE magnetic shear structure while the gold-in-soil “signal” also appears strongly constrained E-W across the trend.

Program-of-work for track and drill-pad clearances over the GS19 target and extensions to the visible NW-SE assay trend is in progress.

Kit Kat Gold Prospect (KKGP)

Sub Audio Magnetics (SAM) survey highlights major structures and identifies three new high-priority targets that show strong similarities to the high-grade Kat Gap gold prospect, located 3.5km to the north along the same sheared granite/greenstone contact zone.

SAM survey strongly validates the 100%-owned Kit Kat area as a larger analogue to the high-grade Kat Gap area.

Auger soil sampling returns widespread gold anomalism over the NNW section of the Kit Kat Prospect, with assays confirming elevated gold-in-soil over a 700m x 700m wide area.

Program-of-work for track and drill-pad clearing targeting the highly-prospective area of gold-in-soil anomalism has been submitted to the DMIRS, clearing the way for definitive RC drilling.

Paterson-Kintyre Project

Re-processing of geophysical data highlights multiple anomalies at Kintyre, including a large “bullseye” magnetic anomaly over the historical Wanderer copper prospect.

Data-mining of public information reveals the presence of significant copper, gold and molybdenum values in a wide zone of iron-oxide alteration extending across more than 1km of strike at Wanderer.

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Page 2 of 13

Corporate

$405,403 share placement completed subsequent to the end of the Quarter to progress exploration activities across the Forrestania Gold Project.

WESTERN AUSTRALIAN GOLD PROJECTS

Southern Forrestania Gold Project, W.A. (Marindi 100%)

Marindi owns a highly prospective tenement package covering a total area of >1,000km2 in the Southern

Forrestania Greenstone belt – one of Australia’s last under-explored major greenstone belts. The Southern

Forrestania region has been overlooked as a gold exploration play, with many operators in the region focusing

historically on nickel and base metal exploration despite ~1.2Moz of production from the Bounty Gold Mine.

Marindi’s portfolio includes historical high-grade gold mines with mineralised rock dumps and geophysical

extensions to proven high-grade gold structures.

Figure 1. Marindi Metals Southern Forrestania Gold Project, including the Great Southern and Kit Kat gold

prospects.

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Page 3 of 13 Great Southern Gold Prospect (GSGP)

Marindi completed a maiden Reverse Circulation (RC) drilling program at the newly-acquired Great Southern Gold

Prospect (GSGP) during the Quarter, comprising 1,855m of drilling across four different target areas.

Targets tested included the projected strike extensions to both historical open pit gold mines.

Visual assessment of the drill chips by experienced field geologists indicated that drilling intersected significant

widths (up to 12m down-hole) of quartz veining in the projected extensional positions of the main mineralised

trends mined in the historical open pits. Assay results indicate the presence of low-grade gold mineralisation in

the structural intercepts, however a subsequent geophysical review has shown that the orientation of high-grade

mineralisation is likely to be along the NE-SW-striking lithological contact rather than the anticipated NW-SE

regional structural fabric.

In addition, the regional magnetic geophysical review correlated well with recently acquired higher-resolution

SAM geophysics, identifying 19 new targets at the GSGP.

Of these 19 targets, the RC drilling program outlined above tested three, including two covering extensions to the

historical open pits and a third “lower-order” target around an historical gold shaft which intersected quartz

veining. Assays returned low-grade gold mineralisation in the intersected structures along strike.

Figure 2. GSGP area with regional RTP 1VD magnetic and inset RTP 1VD magnetic from recent SAM survey.

Geophysical targets illustrated as coloured ellipses with priority indicated by hot colours. GS19 only yellow (mid

priority) as geophysical review was uninformed of geochemical significance for impartiality. Pink =

granite/granite contact, green = dolerite/shear zone.

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Page 4 of 13 A major new target area (GS19) has been identified in the south of the GSGP area at the intersection between the

NE-SW striking lithological contact zone, an interpreted E-W dolerite and a further N-S striking magnetic feature

which may be another dolerite or possibly a metal-rich shear.

Importantly, this “triple-junction” area was also independently geochemically identified as a priority follow-up

area from a review of the historical auger drilling data purchased by Marindi in 2018.

A program of shallow auger drilling was subsequently undertaken to test the Great Southern Prospect, including

the GS19 target. This auger program returned gold-in-soil assays across a 500m long x 100m wide area in the

southern extent of the prospect area, directly above the structural intersection GS19 target.

In addition, the gold assays illustrate a strong north-westerly trend aligned with the interpreted NW-SE magnetic

shear structure while the gold-in-soil “signal” also appears strongly constrained E-W across the trend. The

occurrence of a magnetic shear structure aligned with a gold-in-soil response suggests that this trend could

represent a “typical” pyrrhotite and gold mineralised shear structure similar to that seen across various shear-

hosted gold deposits across WA.

Based on the outcomes of this work, a Program of Work (POW) for track and drill-pad clearances over the GS19

target and extensions to the visible NW-SE assay trend is now underway.

Figure 3. GSGP area with interpreted NW-SE shear, NE-SW granite/granite contact (pink) and E-W cross-cutting

dolerite intrusive (green) overlaid on auger soil sampling assays. Note the very strong correlation between the

interpreted NW-SE magnetic shear structure and subsequent gold-in-soil assays.

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Page 5 of 13 Kit Kat Gold Prospect (KKGP)

A new Sub-Audio Magnetic (SAM) geophysical survey was completed at the Kit Kat Gold Prospect (KKGP), located

to the south of Classic Minerals’ high-grade Kat Gap Gold Prospect (KKGP), during the Quarter.

Initial indications from the survey illustrate the presence of at least two east-west dolerites cross-cutting the

regional NW-SE contact shear on 100%-owned Marindi ground. The NW-SE contact shear zone is a proven conduit

for gold-bearing fluids and host structure for gold mineralisation at Classic Minerals’ Kat Gap gold prospect,

located ~3.5km to the north-west.

Following the completion of the SAM survey, shallow auger drilling was undertaken to further refine key targets.

Elevated gold-in-soil assays were received across a 700m x 700m area in the north-north-western portion of the

prospect area, directly above several high-potential structural and lithological targets defined by the SAM

geophysical survey (see ASX Announcement dated 16 April 2019 for a full list of results).

This reinforces the prospectivity of this area to host high-grade gold in structural-hosted quartz veins, as seen at

the nearby high-grade Kat Gap Gold Prospect.

The KKGP sits on the same sheared granite-greenstone contact as Kat Gap and is cross-cut by multiple E-W

dolerite intrusives spatially implicated in the formation and enrichment of many WA greenstone gold deposits,

including the high-grade 1.5Moz Bounty gold mine area in the northern Forrestania Greenstone Belt.

A Program of Work (POW) for track and drill-pad clearing targeting the highly-prospective area of gold-in-soil

anomalism has been submitted to the Department of Mines, Industry Regulation and Safety (DMIRS), clearing the

way for definitive RC drilling.

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Figure 4. KKGP – New SAM geophysical survey reveals multiple targets (yellow ellipses) at intersections

between regional NW-SE shears (blue dashed) and E-W cross-cutting dolerite intrusives (green polygons). Note

scale of target areas.

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Page 7 of 13

Figure 5. KKGP area with interpreted structural shears (blue) and cross-cutting dolerite intrusives (green) on

auger soil sampling assays underlay. Note the excellent correlation between geophysical interpreted targets

and subsequent gold-in-soil assays in the north-northwest portion of the tenement.

Paterson-Kintyre Copper-Gold Project (MZN: 100%)

During the Quarter, historical geophysical data from the Company’s Paterson-Kintyre Copper-Gold Project,

located in the Paterson region of Western Australia, was compiled and reprocessed using modern techniques.

This process highlighted multiple anomalies, including a large “bullseye” magnetic anomaly over the historical

Wanderer copper prospect (see Figure 6).

In addition, data-mining of public information by Marindi geologists, including digitising of historical hard copy

exploration reports and assay files, revealed the presence of significant copper, gold and molybdenum values in a

wide zone of iron-oxide alteration extending across more than 1km of strike at Wanderer.

The Wanderer prospect was discovered and drilled between 1987 and 1990 at lower prevailing copper and gold

prices by CRA as part of its uranium exploration expenditure across its nearby Kintyre Project. The majority of

drilling was only drilled to 100m from surface with multiple holes logged as ending in mineralisation. No follow-up

drilling has occurred in the 29 years since then.

Re-compilation of composited assay results by Marindi using modern commodity pricing and taking account of

other economic factors has resulted in the following significant intercepts, including;

17m @ 1.6% Cu, 317ppm Mo including 9m @ 2.6% Cu, 456ppm Mo from 84m down-hole (87WDRC2)

9m @ 2.0% Cu, 0.14g/t Au, 272ppm Mo including 5m @3.1% Cu, 0.20g/t Au, 430ppm Mo from 84m

down-hole (87WDRC6)

11m @ 1.5% Cu, 0.10g/t Au, 181ppm Mo including 7m @ 2.1% Cu, 0.15g/t Au, 250ppm Mo from 83m

down-hole (87WDRC8)

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Page 8 of 13

13m @ 1.1% Cu, 0.29g/t Au including 6m @ 2.0% Cu, 0.27g/t Au from 107m down-hole (87WDRC14)

8m @ 0.7% Cu, 310ppm Mo including 1m @ 3.3% Cu, 0.22g/t Au, 560ppm Mo from 98m down-hole

(87WDRC7)

10m @ 0.6% Cu from 70m down-hole (87WDRC24)

11m @ 0.5% Cu from 101m down-hole (87WDRC13)

The mineral assemblage of copper, gold and molybdenum in a wide iron-oxide rich alteration zone at Wanderer is

probable evidence of an intrusive-related fluid passing along the permeable contact zone as shown in Figure 7.

The particular combination of elements observed at the Wanderer prospect is seen in both iron-oxide copper gold

deposits, such as Ernest Henry and Olympic Dam and also porphyry-style intrusive deposits, such as Cadia and

Bingham Canyon. The geophysical reprocessing illustrates the Wanderer drilling is sitting on the western

periphery of the major “bullseye” anomaly, providing an outstanding target for follow-up drilling.

Further details of the Paterson-Kintyre results are provided in the Company’s ASX Announcement dated 12

February 2019.

Figure 6. Marindi Paterson tenements relative to other tenement holders and significant mines and deposits.

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Figure 7. Reprocessed magnetics image across Marindi southern Kintyre project area including the Wanderer

Cu-Au-Mo Prospect. Note numerous other magnetic highs coincident with favourable structure.

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Figure 8. Schematic cross-section created from historic drill data on 402180mE at Wanderer Cu-Au-Mo

prospect. Note thick zone of magnetite alteration on contact with significant shallow Cu-Au-Mo assays.

Figure 9. Plan view of historic drill-collars overlaid on an aerial image. Note. Majority of drilling tests less than

100m depth. Oxidation can be expected to have leached/destroyed most copper sulphide content above <80m

so very little primary mineralisation has been tested effectively.

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Page 11 of 13 OTHER PROJECTS

Caranbirini Zinc Project, N.T. (Marindi 100%)

During the Quarter, Marindi received notification from Japan Oil, Gas and Metals National Corporation

(“JOGMEC”) that it had elected to withdraw from the Joint Venture Agreement with Marindi at the Caranbirini

Zinc Project. As a result, Marindi will retain 100% of the Caranbirini Zinc Project.

The location of the Caranbirini Project in the McArthur Basin sediment package represents a unique exploration

opportunity. The presence of the world-class McArthur River zinc-lead-silver mine within the same stratigraphic

sequence and adjacent to Caranbirini indicates the potentially strategic scale of any discovery, while the remote

location and presence of deep cover means that exploration requires a sustained effort and significant resources

to succeed.

Marindi has extensive geophysical coverage of the property with several untested high-priority co-incident targets

and is actively looking to partner this high-potential project.

Yalco Zinc Project, N.T. (Marindi 100%)

With its location in the highly-prospective McArthur Basin sediments and its proximity to a number of world-class

deposits – including the McArthur River zinc mine – the Yalco property, like the nearby Caranbirini Zinc Project,

has extensive geophysical coverage and multiple untested priority targets, and will require a committed

exploration effort.

Like Caranbirini, Marindi is actively seeking a strategic partnership for the Yalco Zinc Project in order to fully

realise the potential of this highly prospective base metals property.

Bellary Dome Conglomerate Gold Project (Marindi 100%)

No significant field work has been conducted over the Bellary Dome Conglomerate Gold Project during this

quarter. A review of the structural gold potential, including a geophysical review and a supporting campaign of

sampling and mapping is planned for next quarter.

Newman Base Metal Project, W.A. (Marindi 100%)

The Newman Base Metal Project contains several base-metal prospects along 18km of the highly-mineralised

Prairie Downs Fault, a JORC 2012 compliant zinc resource as well as over a kilometre of high-grade vanadium up

to 6.5% in a chlorite host. No significant field-work was carried out during the quarter.

As the area has proven base metals and vanadium results and potentially strategic scale with significant potential

at depth, Marindi is actively seeking a strategic partnership in order to fully realise the potential of this

strategically located project.

Finance

Marindi finished the quarter with approximately $0.22M in cash and remains sufficiently funded to complete all

planned exploration programs and maintain its tenure in good standing.

Subsequent to the end of the Quarter, the Company completed a Share Placement which raised $405,403 (before

costs). The Placement comprised the issue of 112,612,139 fully-paid ordinary shares at an issue price of $0.0036

per share, and was undertaken pursuant to the Company’s existing capacity under ASX Listing Rules 7.1.

The Company also issued 24,000,000 options exercisable at $0.01 prior to March 31 2022 in connection with the

offer, as per the Company’s existing capacity under ASX Listing Rules 7.1.

The funds raised will provide working capital for the next phase of operations at the Company’s Forrestania Gold

Project and accelerate a number of strategies currently underway for the Company’s other significant Australian

mineral projects.

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Page 12 of 13 Respectfully,

Simon Lawson Managing Director and CEO

Competent Persons Statement

Information in this release that relates to Exploration Results is based on information prepared by Mr Simon Lawson a Member of the Australasian Institution of Mining and Metallurgy and the Australian Institute of Geoscientists Mr Lawson is the Managing Director of Marindi Metals Ltd, a full-time employee and shareholder. Mr Lawson has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activities 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 Lawson consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.

Investor Inquiries Marindi Metals Limited 08 9322 2338 [email protected]

Media Inquiries Read Corporate Nicholas Read 08 9388 1474 [email protected]

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mailto:[email protected]

mailto:[email protected]

Page 13 of 13 Table 1 – Tenements as at 31/03/2019

Lease Lease Holder Locality Status Current Area (blocks) Interest

E47/3555 Marindi Metals Limited WA Granted 28 100%

E74/0591 Forrestania Pty Ltd WA Granted 70 100%












M77/549 Atkinmac Pty Ltd WA Granted 73.53 Hectares 100%

P77/4069 Forrestania Pty Ltd WA Granted 180 Hectares 51%

A0648 Marindi Metals Limited NT Granted 0 100%

EL29021 Marindi Metals Limited NT Granted 46 100%








E08/3031 Marindi Metals Limited WA Application 19 100%

E08/3032 Marindi Metals Limited WA Application 18 100%


E45/5358 Marindi Metals Operations Pty Ltd WA Application 68 100%






E69/3513 Marindi Metals Operations Pty Ltd WA Granted 199 100%











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Documents

HIGHLIGHTS For personal use only · KKGP – New SAM geophysical survey reveals multiple targets (yellow ellipses) at intersections between regional NW-SE shears (blue dashed) and